Many fast food chains have recently been improving the quality of food that they produce and sell. Sbarro, a fast food pizza chain in the US, is one of the many fast food chains that is taking part in this change. Sbarro and many of it’s competitors want to improve the way they are perceived
by consumers. This is better known as, “moving upmarket.” Sbarro plans on changing the way they are perceived by making tomato sauce, and grating
cheese in house. They believe this adjustment will move them into the casual dining market, as they will produce higher quality goods, but they will not offer table service. Fast food chains believe that they will thrive in this market because they are forecasting that consumer tastes are changing, and that more consumers want high quality goods rather than low quality cheap meals. Companies such as McDonalds, are doing more than just changing what is available on their menu. In order to appeal to this new audience they are renovating their restaurants to create a higher class atmosphere. This change leads to the question, how will consumers react? As with many other industries restaurants have to determine consumers wants in advance. At the moment many companies are making the assumption that healthier food will continue to be a trend because, companies like McDonalds have been thriving with their implementation of grilled chicken wraps, and poppyseed muffins. This strategy will not only effect consumers though. Fast food chains will most likely selling fewer goods at a higher price until consumers are convinced by these companies that they should spend more on fewer, but higher quality goods. This plan could either be a success, or a failure. It primarily depends on consumer wants in the future. As per usual, this forecasting risk will lay on the shoulders of the fast food chains.
Read Sbarro’s article by following the link below:
http://blogs.wsj.com/corporate-intelligence/2012/10/09/sbarro-goes-upmarket-as-junk-food-loses-old-friends/