How the Reccession Has Effected the Fast Food Sector

The business I have chosen is KFC as KFC is a worldwide business and very popular privileged of the truehearted victuals industry behind unshakable-flying food giants McDonalds and burger king and operates in over 110 countries throughout the world as it is a worldwide business it depart be affected in different ways in different places. Here are round factors which could have affected them in the recession People have little disposable income As of the recession many people have little disposable income to spend on fast food as volition be sticking to the essentials and their individual necessities in order for them to live.Many people were make redundant in the recession which go outing have of impacted KFCs business as not a lot of people testament be buying their products. Also if people have less currency than they leave pick the cheaper brand which will impact less on their spending or they will just cut out fast food on the whole together this will impact KFC as it will be drawing less customers as the week goes on which will force the organisation to buy cheaper and lower musical note products to sell the frequent which will make them lose customers as well as the quality wouldnt be what it used to be. Unemployment increasesAs the unemployment rate throughout the world increases hence less people will not have a ample 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 overpriced. Unemployment will affect KFC as well as they will be getting rid of people in a way to reduction their main costs in the business in order for them to elapse 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 profit As KFC is a well-known(a) American fast food restaurant which sells worldwide they sell millions or products globally. The loss 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 take in used in the products as the price of the raw materials have gone(p) 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.