The fast food industry has been a key player in the global food market for decades. For long, major chains like McDonald’s, KFC, and Subway have led the charge in the global market. But as fast food industry research indicates the size of the fast-food market was valued at USD 595.93 billion in 2021 and the expected compound annual growth rate (CAGR) is 5.0% from 2022 to 2029 it’s clear that it’s the right time for local chains to expand their business globally.
However, it is not as easy as it seems to be but the implementation of the right strategies can make this step a win-win for you. Here are the 4 strategies that will help you out in expanding your business.
1. Localization of Menus
One of the most crucial strategies for fast food chains that are looking forward to expanding globally is menu localization. This means that customizing the menu depending on the preferences of the people living in your targeted area. As cultural preferences and dietary restrictions vary from region to region, working with a one-size-fits-all approach rarely works.
For example, in Japan, McDonald’s offers the “Teriyaki Burger,” while in India, the company provides the “McAloo Tikki,” a potato patty sandwich that appeals to the vegetarian population. These localized offerings not only attract local customers but also help brands build a cultural connection with new markets.
2. Adapting to Local Dietary Laws and Restrictions
When entering new markets, fast food brands must comply with the complex dietary laws of that region, such as halal certification in the Middle East or kosher guidelines in Israel. It is critical to not only get acceptance in these regions but also to gain the trust of consumers and retain them.
For instance, in the Middle East, fast food chains like Subway and Domino’s have introduced halal-certified meat options across their menus to align with Islamic dietary requirements. These adaptations are essential to operating in countries where food laws are strictly regulated.
3. Strategic Partnerships and Franchising
To keep things manageable and operations smooth, you can partner with local companies or adopt a franchising model as these are the common strategies for food chains expanding internationally. With these partnerships, you can get valuable local insights, access the established supply chains, and can easily connect with the regional market. Brands like Dunkin’ and Burger King are prime examples of successful implementation of the franchise model.
4. Integrate Technology
To stand out as an international brand in a local market, you need to use technology to offer the audience an instant solution. For this purpose, you can make use of digital ordering platforms, mobile apps, and instant delivery systems.
For example, in China, McDonald’s has used mobile ordering and delivery partnerships with local companies like Meituan and Ele.me. This not only makes the brand more accessible but also caters to the growing demand for convenience in urban areas.
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Frequently Asked Questions
Q1: Which regions are currently the most promising for fast food industry growth?
A: The Asia-Pacific region, including China and India, is highly promising due to its large and growing middle class. The Middle East and North Africa (MENA) region also shows strong potential, along with Latin America and Sub-Saharan Africa, where urbanization and rising incomes are creating new opportunities.
Q2: What are some successful examples of fast food chains adapting to international markets?
A: Successful examples include KFC’s adaptation in China with local menu items like congee and spicy chicken, and McDonald’s introduction of vegetarian options in India.
Q: How do fast food chains handle dietary restrictions and cultural practices in different countries?
A: Fast food chains can comply with local dietary restrictions by offering halal, kosher, or vegetarian options, depending on the region’s requirements.
