Hong Kong-Fast food franchise opportunities Essay

Hong Kong-Fast food franchise opportunities

Fast food culture is not new to the Hong Kong. Hong Kong was known to be the business region and transit place since the early 60’s. There was a huge demand for food outlets as Hong Kong used to the administrative capital of the region and people used to return every day to their respective destinations after every work schedule. The advent of the fast food chains like Mc Donald’s into Hong Kong has opened new business opportunities as the global giant has introduced innovative service aspects. A fast food chain has to look into various factors before venturing in a new region.

The important factors which can influence the business potential of a food chain are the location the company chooses, the type of clientele, the business proportions of the industry in the region, the competitors’ information, the market share of the competitors, the average number of customers visiting a food outlet, the potential demand for the current menu offered by the current company, the diversity of the people, the management practice adopted, the resources to ably standardize the operational excellence are to be the important objectives to concentrate.

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The location has a specific significance; we need to know the density of the population in a location to estimate the demand for the food outlet. The areas like the downtown, tourists spots, the business centers, the prime office premises can be major locations where crowd may gather.

The type of clientele: A western fast food chain has specific menu and particularly caters to the working professionals and youth who are more inclined to have a quick bite and demand quick service.

The business proportions: A company has to estimate the business potential of the sector in order to estimate the market potential for the business growth for a possible sustainable business growth.

The competitors’ information: The competitors’ information provides important factors like the peers who already made the mark and their success rate in establishing their business. The potential company will have a chance to study on the methods on which the competitors survived. The markets share each of the competitors sharing among themselves. The potential can distinguish the potential yet to be tapped and can locate the ways and means to pull out the customers from the competitors’ market share.

The average number of customers visiting a food outlet: A recent survey done by AC Nelson projects that Hong Kong has the highest number of fast centre visits in the world which can an encouraging factor to venture into the dragon land.

The potential demand for the current menu offered by the current company: Is western menu or the Subway menu familiar to the region? Are they any other native delicacies which are in demand at par with the fast foods? The information on these factors can be obtained by the competitors’ analysis. The senior players like the McDonalds’, the KFC can be looked in to know the most fasting moving menu items.

The resource availability; provides an in depth knowledge on the staff requirements and the methods to follow to recruit and retain the same. The organization need to know the major concerns in managing the HR and should chalk down the definite resources to win the employee nod to maintain the quality of service and to reduce the head costs on the HRM.

The priority clientele:

The particular target groups will the working group who form a major chunk of the clientele list. The middle class and the working class have less time to prepare their own food. The houses are not spacious enough to accommodate people to cook and enjoy a family get together on a meal so majority of the population throng the food outlets to spent a quality time with some good food course.  This type of clientele demands quick turn around of the service, good ambience with quality service to make the time worth to spend at the respective food outlet.

The ACNielsen Online Survey, 2004 depicts that majority out-of-home food consumption is at lunch for the mature adults and evening snack time for the teens who would like to have some quality time with their pals at public places like the food chains on snacks and beverages. The fast moving menu items can be estimated by knowing the choices of the customers by looking at the following core group of customers.

As the target audience is well educated and very health conscious lot the companies will get an opportunity to explore the basic menu items they prefer and the items they wish to be on the menu.

Resources to be explored:

The main source to back up the initiative to explore the opportunity of investment in Hong Kong are the yearly market fast food business trends of Hong Kong obtained from various public and private organizations are to be carefully studied. The yearly growth should be monitored to capture the growth sustainability of the industry. The industry charts provide the key insights on the critical factors hindering the growth in a particular point of time under consideration. The market trend analysis depicts the external and internal factors influencing the market position.

The insights provides an opportunity to know the challenges ahead to be faced and enables to tune up the operational abilities with the concerns there by reducing the possible future impacts. The other sources would be the survey reports carried by reputed organizations like KPMG, ACNelson etc. which provides a quality insight of the customers’ perceptions, the demographics features. The annual reports of the companies give an in depth knowledge of the market share they captured and the issues and concerns they faced in the operational management of the organization.  The educational institutions reports and case study analysis that probe the important stages of the growth fast food business in Hong Kong can provide a useful aid to the existing strategy formations techniques.

Reference:

1. Laura Ford, Mar, 2002. The McDonaldization of Hong Kong, Global Policy Form available at:

http://72.14.235.104/search?q=cache:dGf0cTR0O84J:www.globalpolicy.org/globaliz/cultural/2002/0318hongkong.htm+fast+food+culture%2Bhong+kong&hl=en&ct=clnk&cd=3

2. Eva Ng, A 360º View of Fast Food and Impulse Habits, ACNielsen Hong Kong available at: http://asiapacific.acnielsen.com/pubs/2005_q2_ap_fastfood.shtml

3.  Robert Tse, 1993, Consumption trends in Pacific Rim spur U.S. export opportunities, find articles. Available at:

http://209.85.165.104/search?q=cache:hXYG8xL3h3sJ:findarticles.com/p/articles/mi_m3723/is_n2_v5/ai_13551833+fast+food+opportunities%2Bhong+kong&hl=en&ct=clnk&cd=5&gl=us

4. Khan, Mahmood A., June, 1995, Hong Kong’s fast-food industry: an overview, Allbusiness. Available at:

http://www.allbusiness.com/accommodation-food-services/511425-3.html

5. Success and failure in the Chinese fast food industry: Its all about standardization, May, 2006, [email protected] Available at:

http://knowledge.wharton.upenn.edu/article.cfm?articleid=1470=30336638=42179023=a8304b4a4c685c535556

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