How the Reccession Has Effected the Fast Food Sector

The headache I have chosen is KFC as KFC is a worldwide business and very popular inside of the fast sustenance industry behind fast solid nutriment jumbos McDonalds and burger king and operates in over 110 countries throughout the world as it is a worldwide business it will be affected in different moods in different places. Here are some factors which could have affected them in the fadeout People have less disposable income As of the recession many people have less disposable income to spend on fast food as will be sticking to the essentials and their individual necessities in order for them to live.Many people were made redundant in the recession which will have of wedged KFCs business as not a lot of people will be buying their products. Also if people have less currency than they will pick the cheaper brand which will impact less on their spending or they will just cut out fast food all together this will impact KFC as it will be drawing less customers as the week goes on which will force the nerve to buy cheaper and lower musical note products to sell the public which will ground them lose customers as well as the quality wouldnt be what it utilize to be. Unemployment increasesAs the unemployment rate throughout the world increases then less people will not have a sufficient amount of money to spend on high brand fast food restaurants and will have to cut out the spending for fast food altogether as it can be very expensive and over expenditured. Unemployment will affect KFC as well as they will be getting rid of people in a way to decrease their main greets in the business in order for them to continue being one of the top high priced fast food restaurants in the fast food market becoming one of the top 5 fast food restaurants in the world behind the fast food giant which is McDonalds and Burger King.Reduce in net profit As KFC is a well-known American fast food restaurant which sells worldwide they sell millions or products globally. The lo ss of profit will make them have to reduce all of the costs inside of the business for example lower the amount of employees in the business to cut the cost of the wages to lower the risk of a loss in the business and also lower the quality of the produce used in the products as the price of the raw materials have gone up.As the price of the raw materials go up then the business will be release a lower quality product which will make them lose their customers if they continue to sell a product which does not meet the customers needs which will make them go down in the market and will make customers go to KFCs main competitors for example McDonalds.