QSR Industry SWOT Analysis
strengths that support the industry
In QSR industry, companies with large brand portfolio can win the market with some strengths that support the company with profitability, customer experience, flexible supply chain. These strengths are as follows :-
1.) Wide & Diversified Presence - Brands generally are located on places that are present in markets, cities, malls and tourist destinations. But brands like Pizza hut and KFC are now available in Tier 2 and 3 cities, online and delivery channels, food courts and public places like metro stations, airport lounges, canteens in hospitals and educational institutions.
2.) Omni-channel Approach - Earlier, people have to go to a outlet in order to buy something. but now, all the items of each brand are located on mobile apps and delivery platforms. It is possible due to integration of digital platforms and brands which provides ease and convenience to customers as they can now order food anywhere ( even outside their home). it helps in getting a huge base of customers.
3.) Functional Synergies - The value chain that exists in QSR industry is maintained using coordination of different departments like marketing, finance, legal, technology that helps in faster decision making and helps company remain flexible during times of degrowth or survival.
Companies having bunch of brands are benifitted as they operate central procurement units for different brands, take huge amounts of raw material, open stores of different brands on same location to get better lease deals and share manpower as well as technology and marketing strategy to get better customer base and experience.
4.) Entry into emerging brands - The companies are on track to build and acquire such brands that offer completely different food segments like beverages and continental items so that they can cater different set of customers and also diversify the brand portfolio that will help improve profitability.
5.) Sustainability initiatives - The company focuses on sustainability using cutting edge technology, renewable energy (solar) and reducing food waste that would reduce overall production costs. use of energy efficient electronic items and use of EV vehicles during delivery would help improve services and reduce operating costs.