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Healthy Fast Foods: Sector Analysis

Table of Contents

Fast foods
Healthy fast foods and healthy eating habits
Fast Food Industry
Health-Conscious Establishments
References

Fast foods

The term fast foods refer to foods that are prepared, readily available, and served quickly in restaurants or kiosks (Vendreys, 2011). Fast foods have been in existence for a lengthy period and are most common in urban regions. Fast foods include soft drinks, doughnuts and pastry, French fries, chips, and fried fish (Vendreys, 2011). It has been noted that some fast food has low nutritional value and contains toxic substances (Vendreys, 2011). Some have high sugar and fat contents that may pose health problems. The concept of developing healthy fast foods follows these health problems posed by traditional fast foods. In as much as these foods are convenient and may be tasteful, there is a need to observe their nutritional contents. This enables a consumer to have an equal expenditure on foods with better nutritional value.

Healthy fast foods and healthy eating habits

Health consciousness is fast becoming an important trend in the fast-food restaurant industry with growing concerns about being overweight and health problems resulting from an obese condition in the population. Currently, two-thirds of Americans have considered overweight with one-third of them considered obese (The healthy eating guide, n.d). With several fatal and common illnesses directly linked to obesity, Americans are now realizing the importance of living a healthier lifestyle by staying active as well as choosing healthier food options.

The weight loss market and other derivatives of the industry (i.e., diet supplements, gym memberships) were initially estimated to be worth $55 billion in 2007 but are now estimated to be at $60 billion (world meters, n.d). With consumers heavily spending on weight loss, experts suggest that the most effective means of preventing obesity and related health problems is to observe healthy eating habits. Consumers should avoid fast foods with low nutritional values and high-fat contents (The healthy eating guide, n.d). There has also been an increase in the national campaigns on healthy eating habits. This has further increased public awareness of the problem resulting in trends of healthier food intake. The effects of continued increase in weight loss spending may be felt in the other sectors including hotels and restaurants that offer healthier alternatives to common fast food menu items. With the knowledge of healthy eating habits, a substantial proportion of the previous consumers of fast foods may turn to these producers of healthier foods.

One major problem that is faced in the campaign for healthy fast foods is that some Americans still prefer the original fast foods simply because they are cheap and readily available. Despite the continued campaigns for healthy eating habits, the fast-food industry continues to attract more investors. Different fast food restaurants continue to be established in the United States and a substantial proportion of the consumers are still attracted to these foods. The high frequency of dining among Americans at fast-food restaurants is seen as one of the primary reasons for the continued increase in obesity in the population (the healthy eating guide, n.d). There is thus the dilemma between the affordability and quick availability of these foods and the health problems that they pose to the consumers. As a result, there has been a heightened campaign against fast foods to increase public awareness of the dangers caused by the consumption of such foods. The introduction of a variety of fast foods by several restaurants is a move to help the consumers manage this dilemma. The advocates for healthy eating habits focus mainly on the high cholesterol and fat contents in these foods.

Fast Food Industry

Despite the negative image of quick-service restaurants, the fast-food industry continues to be a vital part of the American way of life not only in providing sustenance but also in supporting their activities and on the go lifestyle. One of the advantages of fast-food restaurants or quick-service restaurants is that individuals can be in and out of the establishment spending no more than a few dollars to satisfy their hunger and even a craving for juicy meat. Consumers in the United States are spending $140 billion every year on fast food items (The healthy eating guide, N.d). The lucrative fast-food market gave rise to over 25,000 fast-food chains, all competing to have a large share in the fast-food market (The healthy eating guide, n.d). Each offers its specialty, from well-known burgers to 100% pure beef patties. The industry is still dominated by fast-food giants like McDonalds, Burger King, Taco Bell, and Subway. However, quick-service restaurants offering healthier options are gaining popularity such as Panera and Au Bon Pain (Qsr magazine, 2011).

The major dealers in fast food have shown concern about the impact of these foods on the health of the consumers. They have also understood the increasing public awareness of the dangers of such foods. In response to this, most of these dealers have included in their menus at least a healthy variety that can be consumed alongside other foods in their menu. They provide the consumers with alternatives. Fast food giants such as McDonalds and Burger King have included grilled chicken sandwiches in their menu. These foods have lower fat and cholesterol contents as compared to the traditional oil-fried burgers (Barnes, 2010). Many chains have also included salads in their menu in line with their advertising and marketing strategy that they support the initiative to fight obesity in the country (Talty, 2011).

Subway, one of the forerunners in promoting healthy eating habits, has invested heavily in promoting its products as a healthy substitute to burgers and fries. The initiative has allowed them to be one of the main contenders in the fast-food industry as well as one of the preferred options for customers who are watching their weight.

Health-Conscious Establishments

The health-conscious establishment has given rise to quick-service restaurants that target specific market segments that are more careful with what they consume. Restaurants such as Panera, Au Bon Pain, and Chipotle are starting to expand their operations across the country following wide market acceptance and support (Minkin and Renaud, 2009). These establishments have essentially provided the market with alternatives to the less nutritious and highly toxic foods that have been available in many of the fast-food restaurants in the country. Despite the continued efforts by many fast-food chains to provide a variety of foods, the number of choices available for their clients is still fewer than the varieties offered by large fast-food restaurants (Minkin and Renaud, 2009).

The healthy foods sector is likely to expand due to this commitment by the fast-food dealers to provide healthy foods. This has heightened competition with each dealer attempting to capture a larger market. This has seen several players in the sector expand their operations in the recent past. Restaurants chains like Panera have registered significant growth in their response to the increasing need for healthy fast foods (Arndt, 2006). Several other companies that have adopted these strategies have also recorded significant developments in their operations.

The healthy fast-food chains are sustainable since the restaurants offer their products at high prices. The chains that have increased their production of healthy fast foods have registered significant growth in revenue. For instance, since the management began to emphasize healthy fast foods, the revenue at Panera has shown an increasing trend (Arndt, 2006). The company focused on the freshness of its products and the management continuously reviews the menu at close intervals to cope with the needs of the clients. To maintain the revenue, the companies hike the prices for the additional ingredients that have been used in producing such foods (Arndt, 2006). Healthy fast food products are priced relatively higher than the products that have been in existence in different companies in the industry.

The weight loss industry has been expanding with several individuals attempting to reduce their weights. The expansion in the weight loss industry then reflects positively on the operations at the restaurants providing healthy fast foods. Several consumers willing to reduce their weights move away from traditional fast foods to these healthy fast foods. Even though the prices of the raw ingredients are high, the restaurants still obtain good revenue due to the higher prices and the willingness of consumers to use the products. The size of the market may be reduced due to the high prices while the sales remain high in this sector. Moreover, establishments offering healthy alternatives also have the benefit of utilizing free promotion and advertisement from various organizations in both the public and private sectors. Health advocates continue to promote healthy eating habits and have primarily affected the many fast-food chain companies. The campaign for healthy fast foods has increased competition in the industry. The actions open opportunities for companies who are in the business of offering alternatives to burgers and fries.

The viability and sustainability of establishing HeartSmart as a fast food restaurant that offers primary healthy food items would be greatly supported by the continued growth of the quick-service restaurant industry. The industry continues to be lucrative for many companies. It has continuously attracted additional companies into entering and competing for their share of the market. Consequently, the changing market preference towards healthier food items as well as a continued increase in consumer spending in weight loss provides additional incentives to enter the market. The negative publicity received by the fast-food industry is not a deterrent but rather an opportunity to increase further the market share in the industry.