5 FORCES OF PORTER
It is true that making the general 5 forces analysis of the Fast Food Restaurants, without focusing in an specific one, can be a little bit difficult, but we try to do it, a simple and short analysis to observe the most important things to take into account, thinking about the most important factors, and focusing in the Fast food restaurants like McDonalds, KFC and Burger King.
- Threat of New Entrants: nowadays this threat is very high, because there are many restaurants like that, and companies are opening new ones so, we have to say that although you need a great amount of money to invest and to create a restaurant, in these fast food sector entrants are quite high.
- Threat of substitute's products: as we said before, there are new concepts of fast food, maybe a healthy one and this could be a direct substitute. Also the prices, if people see that in other restaurant the prices are lower and the quality and the products are almost the same, surely that they are going to prefer the cheapest one. But it is also true, that there are many people especially young people that like very much one of this restaurants and it could be difficult to change their opinion of going to another one.
- Bargaining power of consumers: normally these kinds of restaurants are focused on young people, that don't want to spend a lot of money. Prices are affordable for anyone who wants to eat something fast. In special occasions there are limited edition products with a special price, where consumers can choose, and restaurants take advantage to increase their sales.
- Bargaining power of suppliers: suppliers are very important in all the restaurants in general. We think that even in Fast food restaurants suppliers are very important, because they have to provide to the restaurant's the products and the different things that they are going to use to prepare the meals.
- Competitive Rivalry: there are many fast food restaurants, and they are creating new ones. So, the rivalry can be very high because chains like McDonalds, Burger king and so one, almost offer the same products (burgers, chips, sodas...) They say that the difference is in the quality, and also in the price, so people can choose between different restaurants and this can be a high competition.