Fast Food Market in Canada Economics - 6442 Words

The Fast Food Market In Canada | | 10/13/2010Table of Contents The Market for Fast Food in Canada 3 Is the Demand for Fast Food Elastic or Inelastic? 5 Influences on Price Elasticity of Demand 7 The Relationship between Price Cuts and Total Revenue 9 Understanding Fast Food Price Cuts 12 Works Cited 15 | | The Market for Fast Food in Canada When examining market structure, one must look at several factors including the quantity of firms, type of products offered, barriers to entry, pricing power and non-price competition. In order to define the fast food market, all of these factors must be considered. Due to competition, price wars, and barriers to entry in the fast food market, market structure becomes slightly muddled and†¦show more content†¦A third factor that actually classifies the structure of the fast food market as monopolistic competition and not oligopolistic is the fact that though the fast food industry implements non-price competition through coupons, promotions and advertisements, the industry also experiences price wars. There is no tendency to keep prices fixed within the fast food industry. Oppositely, there are constant price wars between fast food competitors (AmosWEB). In 2008, Taco Bell began offering products at prices ranging between $0.79-0.99 in order to undercut the dollar menus at McDonald’s and Burger King. Wendy’s has taken on a similar strategy, offering a double hamburger for one dollar. Many companies are following this trend in congruence with their competitors and this is creating a possibly detrimental price war (Motley Fool). These price wars have led to losses for many fast food companies trying to keep up with their leading competitors’ dangerously low pricing. The giants of the industry can afford to set their prices extremely low; however, companies such as CKE Restaurants Inc. are experiencing large losses in 2010 due to their inability to price as low as front-runners, including McDonald’s and Burger King. Due to the damaging price wars, â€Å"CKE Restaurants Inc. (CKR) recently reported a loss of 6 cents per share for the first quarter of fiscal 2011† (Seeking Alpha). Prices remain fairly rigid within an oligopolisticShow MoreRelatedJollibee Case Study Transnational Management Individual Assignment1019 Words   |  5 PagesFirst started as an ice cream parlor in 1975, today Jollibee has become the number one fast food chain that serves burgers, sandwiches and rice meals in its originating country, Philippines (Beamish and Bartlett, 2014). It first started its foreign expansion to Singapore, and today it has expanded to 9 countries including United States. There are countless countries withholding potential for Jollibee’s expansion, and several of them will be discussed in the following discourse. INDONESIA OneRead MoreAnalysis Of Mcdonalds The Fast Food Industry1719 Words   |  7 Pages The market has expanded rapidly, with each product being produced in many and different ways. After researching about McDonald’s, we have concluded that the corporation operates in a monopolistic competition, as there are many competitors that produce and sell products that are differentiated from on another. In the fast food industry, they all produce the same product however with different ingredients yet in a monopolistic competition they are similar when it comes to branding, quality, locationRead MoreFast Casual Restaurant As A Fast Food Restaurant1697 Words   |  7 Pages Assignment 3 Fast-Casual Restaurants in Ukraine Student: Diana Hyrya Instructor: Raef Assaf, DBA BU 536 - Global Strategy and Management Newport Beach Winter – 2016 Many US consumers want their meals in a hurry, but with more service and higher quality food than in traditional fast food restaurant. The result has been the rise of fast-casual restaurant chains such as Daphne s Greek Cafe, Boston Market and Panera Bread. The intent of fast casual restaurants is to deliver a qualityRead MoreA Brief Note On Vietnam And Canada Relations927 Words   |  4 PagesVietnam and Canada Relations Vietnam and Canada have established a diplomatic relation with each other since 1973, and they have been maintaining a good bilateral relation. Moreover, the relations between two countries are expanding rapidly, from increase in trading to investment and a prominent development assistance presence (Canadian International Development Agency). Additionally, Vietnam is one of the countries in which Canada is focusing on in responding to the Government of Vietnam’s povertyRead MoreThe Food System Is Essential For Sustaining Human Life1345 Words   |  6 PagesThe food system is essential to sustaining human life, yet it often gets overlooked. Feeding a city comes with a lot of issues, especially feeding the Halifax Regional Municipality (HRM) at a population of 414,000 (Statistics Canada, 2015). Although food is required to sustain humans, it has not always been produced sustainably in Halifax. Food sustainability is not only concerned with the food people consume, but rather lo oks at the whole system, interconnecting social, economic, and environmentalRead MoreChipotle Mexican Grill : Snapshot Of The Company1611 Words   |  7 PagesChipotle Mexican Grill Snapshot of the company Chipotle Mexican Grill, Inc. is one of the leading fast-casual Mexican restaurant chains throughout the United States, United Kingdom, Canada, Germany, and France. Chipotle has been in operation since it was founded in Denver, Colorado in 1993 by Steve Ells. It is known for its fresh, gourmet, and increasingly organic ingredients. In 1995, Chipotle opened their second restaurant and later opened their third restaurant with a Small Business AdministrationRead MoreBurger King Case Analysis1533 Words   |  7 Pagesperformance, †¢ To provide measure(s) to improve the company’s performance in the market. AREAS OF CONSIDERATION Strengths 1. Strong market position. BKC is the worlds second-largest Fast Food Hamburger Restaurant (FFHR) chain as measured by the total number of restaurants and system-wide sales. 2. Strong brand equity. Burger King’s Whopper is known for its quality and it is the best known brand in fast food. The Whopper (and by extension, Burger King) presents a well integrated â€Å"package†Read MoreEnvironmental Analysis of Kellogg’s Cereal Category Essays941 Words   |  4 Pagesstatement | Action Plan | Economics: * Unemployment nationally 10%Recession started in 2008; unemployment is high in record in Canada now. People have no more money to buy expensive stuff. * Consumer confidence lowest in 15 yearsâ€Å"Nanos Poll Shows Canada Consumer Confidence Weakens to Lowest Since 2009†. Consumer doesn’t want to spend more money; consumer would like to pay less for the value product. We have revalued our product price at this time. | Economics: * We have to adjust our productRead MoreWhole Foods Strategy1168 Words   |  5 PagesThe company I will be presenting is Whole Foods, case number seven. Whole Foods is a supermarket chain based in Austin, Texas which emphasizes natural and organic products. As of September 2009[update], the company operates 302 stores: 291 stores in 38 U.S. states and the District of Columbia; six stores in Canada; and five stores in the United Kingdom. External assessment: There are over one hundred thousand grocery stores in the United States, with a wide variety of types. Stores range fromRead MoreENG4U IP EO1142 Words   |  5 PagesHigher Taxes should be imposed on Soft Drinks and Junk Food Huang Kunting(Alice) Ms. Costa ENG4U-S7 January 22, 2015 Introduction Paragraph â€Å"Once you start dipping it’s hard to stop† (â€Å"Chicken McNugget†) is how McDonald’s describe Chicken McNuggets. People never stop their enthusiasm for McDonald’s. However, those fast food are defined as junk foods which contain numerous calories and are rarely good for health. Moreover, not only junk food but also soft drinks can affect society negatively