The Internal and External Factors Affecting Quick Service Restaurant Management

Written by joseph elmadam
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Running a successful quick service restaurant, also known as a fast food business, requires skilled staff, devoted managers and sharp business management skills. Quick service restaurants are characterised by a busy environment and high pressure to deliver to the customers' expectations. There are internal and external factors that can influence the management of a quick service restaurant chain.

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Employees' Skill Levels

The employees' skill levels are an internal factor that affects the management style of a quick service restaurant. The hiring strategies that a management team applies in a fast food restaurant will be greatly influenced by the skills the employees need. A fast food restaurant requires vibrant and fast employees who can withstand long hours of work. The management team may decide to employ youthful individuals who can keep up with the fast pace of the business and train them on the job. Management would pay them a lower rate than more experienced workers while they undergo training

Employee Satisfaction

Employee satisfaction directly affects their performance. It is important for management to gauge employees' attitude toward their job and determine how to keep them motivated. Factors that determine employees satisfaction include monetary and emotional rewards. A quick service restaurant management team should design a compensation model that matches employees' duties and skills, and create shifts to accommodate employees' schedules.

Financial Stability

The financial stability of a quick service restaurant affects day-to-day management. Consumers may be unwilling to spend much on fast food in a poor economy. Earnings in the industry are affected by low sales and the high price of food commodities. Moreover, the fast food industry is greatly affected by debt, a high unemployment rate and increased operational costs. The ability of management to efficiently utilise available resources and cut down on operating costs determines a business' success.

Consumer Sensitivity

Consumers' sensitivity to their spending and diet is a major challenge to quick service restaurants. Managers have to deliver menus that are pocketbook-friendly while satisfying customer tastes. Tight competition with heavy discounts and high food costs continue to pose a challenge to pricing for quick service operators. Changing consumption trends has given rise to customised menus. According to a market intelligence report by NPD, more consumers are shifting to breakfast menu; hence more quick service operators are focusing on offering breakfasts in their menus.

Competition

Competition affects the management style of a quick service restaurant. One such competition is the rise of convenience stores that sell ready-to-eat food. A rising number of consumers prefer these convenience store options over dining in fast food restaurants. Management must consider these arising trends while laying out business strategies for quick service restaurants. Management must also find ways to keep their business relevant and a better option to convenience stores offering the same service.

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