Restaurants and Lodging Industry Analysis of Uganda, 2016
Executive
Summary
Formal and semi-formal restaurants are
characterized by offering a full menu, full table service; quality food made
with fresh ingredients and personalized service. The upper end of this segment
is a fine dining restaurant which generally offers high quality food, décor and
service and charges high prices. The impact of various variables like brand and
popularity, quality and taste of food, price, availability of local cuisine,
specialization in foreign cuisine, variety of cuisine, cleanliness and health
consciousness, presentation and decoration offood, quality of staff,
comfortable sitting arrangements with quality cutleries-utensils, interior and exterior
design, location, parking and security, additional services like kid’s corner,
celebrity appearance, live performance and advertisement in mass media on
selection of upscale restaurants have been analyzed. The study is based on the
primary data collected from respondents with the help of structured questionnaire.
After the analysis, it is found that selection of upscale restaurants mainly
dependent on promotional factor, restaurant internal factor, situational
factor, pricing factor, image factor and deluxefactor.
Amidst any
economic crisis, one line of business in Uganda that continues to promise
greater returns on investment is the Quick Service Restaurant. Despite the
presence of economic, social and political dilemma in the country, the business
continues to strive. This report, therefore, by presenting an in-depth knowledge
of the industry exposes its potentials for growth and also highlights the
prospects and challenges of operating fast food business in Uganda. It goes
further to identify and recommend the required skills needed by its emerging
entrepreneurs to succeed in an environment such as Uganda.
Introduction
In
Uganda, hospitality is deep rooted into our culture. We take real pride of our
food variety and texture. Although we have a very long history and heritage of
our local cuisines, we are also veryopen to adopt new tastes into our food
menu. Food is not just a need here. In marketing terms, it spans from need to
want and beyond when we add taste and variety to it. Naturally, when the
discussion is about food, we cannot just stay within our kitchen and dining.
Our never ending passion for taste and variety drives us to restaurants, the
ultimate destination every food lover would rush to, to get their desired mix
of products and services. This makes restaurants a perfect industry to analyze
from marketing point of view. Now, the restaurants industry is a pretty
enormous one in Uganda which makes it a substantially broad sector for review.
Restaurants
range from a regular road side one to an elite high end signature restaurant
withspecific cuisine specialization. Several studies suggest that restaurant
selection factors differ by the type of restaurants. To keep the discussion
focused within a manageable context, we decided to focus on formal and
semi-formal Quick Service Restaurants (QSRs). Quick Service Restaurants are
characterized by offering a full menu, full table service; quality food made
with fresh ingredients and personalized service.
Although,
the concept of fast food retailing, also known as quick service restaurants
evolved in Uganda about 25 years ago, from the coffee shops, the organized fast
food industry is fast emerging in the country. The industrial landscape has
witnessed the influx of unprecedented numbers of fast food operators since the
opening of the first fast food outlets in Uganda, in Kampala, in 1990 by Fido
Dido and Chippers. At present, there are over 30 brand names in the country. There
are very few standardized outlets in the upcountry towns, which could be attributed
to speed of life in those rural towns and dominant traditional life styles. All
these and other developments, reveal that one line of business that keeps going
and remains sustainable amidst the current any economic crisis is the
restaurant business.
Definition of
‘Fast Food’
Food
is used as a collective term for the end products that consumers eat or drink.
It is considered not merely as a collection of inputs to satisfy human
nutritional requirements, but also possesses a multi-dimensional set of
consumer-satisfying attributes such as taste, appearance, security, convenience
etc. The term “fast food” according to was first recognized by Merriam-Webster
dictionary in 1951. It refers to food that can be easily prepared and served
very quickly in an outlet to consumers. It can be served directly from oven to
table (sit-in) or presented in form of take-out packages or containers
(take-away). Common fast food menu found in outlets worldwide apart from drinks
include pies, chips, fries, sandwiches, pizzas, noodles, chilis, salads, potatoes,
rice, ice-cream, coffee, candies, hamburgers, fish, beef, chicken, turkey, hot
dogs etc. Also, various sizes, types and kinds of outfits exist worldwide for
the purpose of retailing fast foods. These range from carts, wagons (Jakle,
1999), stands, kiosks to restaurants, and modern day fast food retail outlets,
better known as Quick Service Restaurants (QSRs). Fast food ventures are food
and located everywhere with round the clock services where applied e.g. in
convenient shops, drives, filling stations, schools, cashpoints etc.
Classification
of Fast Food Services
Mainly fast
food outlets can be classified as either providing unstandardized or
standardized services. The unstandardized outlets are usually the unregistered
small operators, providing informal but fast casual table services to
customers. In this category are the traditional food vendors, market food
joints and restaurants, cafeterias and casual dining restaurants. On the other
hand, the standardized outlets include the registered food retail outfits with
formalized business names and organized structures, whose operations are
usually large-scaled and certified by appropriate regulating authorities. In
this category, are the single-branch eateries and chained quick service
restaurants that provide minimal table service to customers. Also unlike the
former, which is considered to have existed for generations, the latter
category is regarded as modern and emerging as a result of recent rapid urban
developments in various countries of the world. Outlets in the organized sector
are usually established by either corporate individuals or multinational
organizations concentrating mainly in urban centers.
The Formal
and Informal Fast Food Industry
In
this light, the fast food industry can thus be divided into two: the formal
sector and the informal sector. The formal fast food industry consists of the
newly emerging organized and registered outlets of different sizes
providinglarge scaled standardized eat-in and take-away services to consumers.
The informal sector consists of the plethora of usually unregistered small
operators and restaurants providing unstandardized fast but casual services to
consumers.
The Concept
of the Modern Fast Food
The
concept of the modern fast food could be traced to the take-out food services
popularized by the then automats restaurants, which flourished greatly in the
U.S during and after the First World War (Farrell, 2007). Similarly, as
automobiles became popular during this period, drive-in restaurants (later
known as drive-throughs) were introduced. The second Whitecastle hamburger
restaurant founded in 1921 in Wichita, Kansas was regarded as the first fast
food chain in America. Today the U.S. has the largest fast food industry in the
world with locations in over 100 countries. The U.K. is also credited with the
highest number of fast food per person, followed by Australia and the U.S. In
2008, England alone accounted for 25% of all fast food in the world.
The
modern fast food industry is highly commercialized and characterized by various
pre-formulated procedures and food preparation methods usually set up with the
intention of minimizing production cost and delivery time. Greater emphasis is
always placed in ensuring certain level of flavor and quality consistency of
products and quick services as expected by customers. Various variants of
cuisines and dishes are popularized by fast food restaurants across the globe.
While pizza is widely known in the U.S., sushi is common in Japan, Kebab, fish
and chips are popular fast foods in Europe, Australia and New Zealand.
It
is noteworthy that the business of fast food retailing is fast spreading and
striving globally with numerous fast food ventures located all over the world.
McDonald’s is considered as the largest operator of fast food in the world,
with over 31,000 restaurants located in 120 countries, on six continents. The
busiest fast food in the world is McDonald’s in Moscow, which was opened on
January 31, 1990. Other fast food multinationals include Burger King, Kenturcky
Fried Chicken (KFC), Big-mac, Pizza Hut, Subway and Taco Bell. In Uganda, the
leading fast food operators are Café Javas, Kichen Tonight, Bona Apetit, Mr. Tasty,
Brood, Tummies, KFC, Boston, Sab, Shaka Zulu and Nandos. The indigenous South
African fast food market is dominated by Nandos, Black Steer and Chicken
Licken. In Canada, Pizza Pizza and 241 Pizza are among the leading indigenous
fast food operators.
Overview of Ugandan
Fast Food Industry
According to
Uganda Restaurants and Lodging Association (URLA), the Ugandan fast food
industry is healthy and currently worth billions of shillings with the potential
to grow bigger. Also, the industry is considered as highly labour intensive. In
Uganda, it was identified as one of the leading employers of labour, looking at
the food supply chain from farm to the table. The management and operations of Quick
Service Restaurants (QSRs) require and attract various job opportunities and
professionals, including service providers and suppliers. These ranges from
farmers, caterers, horticulturists, interior decorators, technicians, food
technologists to estate agents, architects, engineers, auditors, accountants
etc.
Although the
list of new entrants increases daily in Uganda, as earlier mentioned, only
seven fast food owner - operators are identified in this report as dominating
the industry with less than 50% share of the total formal industry market as at
2016. There are other numerous indigenous QSRs holding sway in Kampala Central
Business District, Kampala Suburbs, Wandegeya, Ntinda, Kabalagala, Kansanga, Bugolobi,
Entebbe, Jinja, Mbarara, Kabale, Mbale and other urban locations, namely KFC, Mr.Tasty,
Kitchen Tonight, Café Javas, Spices, etc. providing varieties of African and
continental cuisines to teeming customers. The presence of international brands
such as Nandosand Steershas faded in the
industry. At present, there are few international brand names in the industry.
Some big established outlets now offer franchise opportunities and arrangements
for willing individual investors and entrepreneurs to own and operate fast food
businesses with their brand names. Through these arrangements and others, it is
planned that more restaurants will be opened in due course to meet the
ever-yearning desires of Ugandans for an ideal fast food industry in the country.
Due
to the socio-cultural background of the various ethnic settlements of the
country, the Ugandan formal fast food industry operates amidst its more active
informal counterpart, which is characterized by unregistered indigenous
operators also providing restaurant services to the populace. But, the fast
food industry is quick in changing the existing pattern by distinguishing
itself into an organised structure providing healthy, modern and local menus,
with class, status and taste attached to it.
Café Javas,
KFC, Bona Apetit are considered as the largest operator of fast food in Uganda including their franchised locations, located in
about Kampala city and Entebbe. KFC also operates outside Uganda based in the
US with outlets in worldwide. The popular KFC brand emerged in August 2014 as a
result of intensive consumer research aimed at relaunching an ideal quick
service restaurant in Uganda. Recently, in response to increasing interest in
local cuisines and ingredients, the Local traditional dishes restaurants have
been emerged around town in standardized formats.
Of recent,
franchise arrangements have been made to establish more outlets especially in
Kampala.
Anvy’s
Restaurant, is also a popular QSR in on Nkrumah Road. The first outlet
established in 2005 by one Mrs. Ssenkubuge Agnes and located on Nkrumah Road. Anvy’s
Restaurant was established with the aim of
offering for working Ugandans convenient fast food services situated in the
business area. The proprietor, Mrs. Ssenkubuge Agnes is at the forefront of
harmonizing and regulating the operations of fast food industry in Uganda, with
the founding of the Uganda Restaurants and Lodging Association (URLA), where
she is the executive director.
General
Characteristics of QSRs in Uganda
The
fast food industry in Uganda is modeled after western Quick Service Restaurants
and dominated by foreign entrepreneurs. Their sizes range from small, medium
and big outlets. Mostly, the smaller ones are established by individual
investors, while the few bigger ones are owned by corporate companies. They can
therefore be categorized according to their operational capacity i.e. staff
strength, number of customers and capital outlay as shown in Table 1.
Categories
of Fast Food Outlets in Uganda
Size
|
Estimated Capital
|
No of Staff
|
No of Customers
|
(Daily
Average)
|
|||
Small
|
Less
than UGX 50m
|
Below
20
|
Below
250
|
Medium
|
UGX50m
– UGX 100m
|
20
– 50
|
250
– 1000
|
Big
|
Above
UX 100m
|
Above
50
|
Above
1000
|
It is
reported that interested individuals might not require a huge amount of money
to start a mini outlet in Uganda, if only the business plan is compact enough
to offer reasonable satisfaction. This report corroborates experts’ advice that
individuals take advantage of their hobbies and talents in baking by starting
their own mini fast food ventures, specializing in pastries, with only few
baking tools and smaller equipment such as the kitchen oven.
Another
common characteristic of fast food restaurants in Uganda is their concentration
in what could be considered as strategic locations in major commercial and
individual areas. They do not relent in making their presence felt in such
locations by adorning their imposing structures with colourful and attractive
architectural designs.
Also due to
rapid social transformation in the country, the main menu of fast food
restaurants which used to be exclusively foreign and continental cuisines like
hamburgers, fried rice, jollof rice, salads, hot dogs, meat pies, coffees,
chips, pizzas, ice-creams, soft drinks etc are now translating into local and
traditional dishes such as white rice, pounded yam, yam flour, Kalo (Pounded
Millet), Kawunga Ugali (Pounded Maize), Buugi (porridge), Chibuku (millet and
maize wine) etc. Some restaurants now offer traditional foods only.
Notwithstanding, restaurants providing specialized products/services such as
ice-cream only, pizza- only, outdoor- only, Chinese-only menus are still
striving in various parts of the country especially in Kampala.
Basic
Skills Needed in Running Fast Food Business: Tips for Entrepreneurs
The
basic skills needed by entrepreneurs in setting up fast food ventures as
follows:
- Analyzing
and following a design brief
- Learning
about food ingredients and their uses in food products
- Nutritions
and nutritional analysis
- Food science
- Understanding
the process of food product development
- Hygiene and
safety
- Quality and
how it can be measured
- Sensory
testing
- Writing a
specification and testing against it
- Learning
about industrial food production on a large scale
- Developing
skills in food preparation and cooking
- Evaluating
and testing food products
- Learning
about food packaging and labeling
- Information
Since the
art of fast food business involves changing raw materials into food products,
the fast food operator needs exceptional practical knowledge in processing the
raw items into quality foods ready to be consumed, using preparation and
cooking methods such as washing, scrubbing, peeling, slicing, grating, frying,
boiling, roasting, baking etc. Practical cooking skills also involve the
correct use and application of tools, equipment and other cooking utensils like
knives, spoons, blenders, mixers and ovens.
A successful
set-up of a fast food business also requires vast product design and
development knowledge. The process of designing a food product can start with
matching a good product idea with a target audience e.g. snacks food for youth,
students and low income earners. The process involves analyzing the design
brief, gathering information, producing a specification and quality checks.
The essential tips for entrepreneurs willing to start their
own fast food venture also include:
·
Identify a suitable location, where there are a number of
prospective customers. This corroborates (The Food Institute Report) that apart
from speedy service, QSRs are now focusing on locations to garner increased
sales.
·
Proper market survey.
·
Let customers determine what is produced. McGarry (2010)
also asserts that a successful concept is the one that adapts to local tastes
and cultures. Menu items should therefore be translated into the culture in
which they are introduced.
The emphasis
on food hygiene, safety and nutritional wellbeing of consumers is also
increasing. While food hygiene and safety rules are enforced to identify food
hazards and prevent contaminations and poisoning, nutritional skills are
therefore needed by entrepreneurs in determining the appropriate uses and
effects of food ingredients on consumer’ health and physical status and development.
With regards
to managerial skills, most CEOs of popular fast food chains in Uganda, reiterate
that running a fast food business requires responsibility and accountability,
and could also be very challenging. The add that being a good employer involves
putting in place a permanent structure which continuously embraces the right
people and the right kind of services they provide.
Having
mentioned the above, it would be appropriate to also say that the fast food
entrepreneurs should strive to possess these required skills for better product
quality and overall performance of their business ventures.
Factors
Responsible for the Growth of Fast Food in Uganda
The number
of fast food outlets in Uganda is increasing at a geometric rate and expected to
double in five years. This proliferation is not unconnected with the general
upsurge in social and economic activities. The
Global Fast Food Restaurants industry has managed to grow over the past five
years at 2.6% since 2011 despite being battered by a weakened global economy
and society's increasing awareness of the health risks associated with a diet
high in fat, salt and sugar. The industry's
attempts to respond to changes in consumer preferences have also supported
revenue growth.
The
increasing growth and proliferation of fast food restaurants in Uganda and
globally can be attributed to the ever-increasing demand for its services for
consumers to meet and cope with the global fast ways of livelihood. Daily
increasing workloads and engagements occasioned by rigorous strife and
struggles by individuals for survival and proficiency create less time for food
preparation at home. Even, it is not unusual for women and married couples to
engage in official assignments and duties away from homes, therefore making the
consumption of fast food to become a fact of life.
The Executive
Director of Uganda Restaurants and Lodging Association (URLA) summarized the
several factors responsible for the consistent growth of the industry as the:
·
General increase in average disposal income of families
· Decrease in
the cost difference between eating out and cooking at home, and
· Increasingly
hectic lifestyles of people, which gives less time for home cooking.
Lodging Subsector (Lodges, Guest Houses & Bed and
Breakfast)
The lodging industry comprises of lodges, guesthouses,
bed & Breakfast, or converted houses adapted to accommodate overnight
guests. Some guesthouses offer meals and others only bed and breakfast.
Combining accommodation with restaurants services increases the average rate of
a room night sold in guesthouses and also the average room occupancy rate.
Overall, occupancy levels
have continued to increase amongst the lodges, guest houses and B&B sector
in Uganda.A boost to occupancy rates was due to increased local business
activity in the country, increased middle income and a few foreign tourists as
most tend to opt for high end hotels. Average bed and room weekend occupancy
rates were most noticeably higher than weekday rates indicating the popularity
of short room occupancy.
Price sensitivity is
more evident in the lodges, guest house and Bed and Breakfast sector than is
evident for hotels. While there is a correlation between tariff and occupancy
levels, it is establishments in the UGX 10,000 – 50,000 category that recorded
the highest annual average bed and room occupancy rates. This suggests that
when choosing this type of accommodation, guests are more likely to be looking
for a cheaper alternative than when choosing to stay in a hotel and therefore
the mid-priced lodges, guest houses and Bed and Breakfasts were more likely to
be the preferred choice.
It is the Guest Houses
and Bed and Breakfasts in Kampala that recorded the highest annual average bed
and room occupancy rates. Many business travellers are opting to stay in this
type of accommodation followed by luxury and casual guests.
On average, the
majority of those who supplied confidence data felt ‘quite’ confident about
their business prospects. However, guests or consumers had issues on quality of
services, security, privacy, safety and health compared to high end hotel
sector. This indicates that disparity exists in the lodges, guest houses and
bed and breakfast sector. For example, in some facilities there was
non-availability of condoms at that crucial place and time which sometimes
refrains clients from using the condoms.
Some
lodging service providers are often not included in the industry data and
programs as the incidence of non-registration among operators, especially small
and medium scale is relatively high in rural urban areas compared to urban
large formal restaurants and lodges. Others choose to remain unregistered and
thus not under the purview of government, due to the existence of legal and
regulatory hurdles that may restrict their operations. This may raise issues
relating to quality, especially for poor communities where consumers
predominantly consume unmonitored hospitality services with no consumer
protection or regulatory protection.
Bars and
Nightclub Subsector
This subsector includes
bars, pubs, lounges, taverns and nightclubs as well as other drinking places
that primarily sell alcoholic beverages for immediate consumption. Uganda
Breweries Limited (UBL) and East African Breweries Limited (EABL) continue to
lead the beer category with a total volume share of more than 50%, followed by
medium emerging companies and soft drinks companies. The state of the economy
and alcohol-related trends drive the Bars, Nightclub and Drinking Establishment
industry. Personal income and entertainment needs drive demand. The
profitability of individual bars and nightclubs depends on the ability to drive
traffic and develop a loyal clientele. Large nightclub companies can offer a
wide variety of food, drinks, and entertainment, and have scale advantages in
purchasing, financing, and marketing. Small companies can compete effectively
by serving a local market, offering unique products, entertainment, or
providing superior customer service.
The Ugandan alcoholic beverage market
enjoys growth rates in all areas, with healthy volume and value increases. A
change in Ugandan culture has caused a shift in the drinking culture towards
enjoying the qualities of products. This trend has led to increasing sales for
the majority of alcoholic beverages in a number of key categories. Middle and
High-income Ugandan consumers prefer super-premium brands of beers and
whiskies. Traditional Ugandan spirits and alcoholic beverages continue to have
a staggering growth, as consumers continued to show a strong preference for
foreign and modern alcoholic beverage.
Laws
and regulations surrounding liquor are unclear and inconsistent with the
nation’s socio-economic structures. Bars and nightclubs engaged in the retail
of alcoholic drinks generate a lot of revenues to both their operators and the
government in terms of taxes. The industry has high product turnaround but low
profit margins that make it susceptible to any adverse changes in demand. Beer is becoming an intensely competitive market in Uganda.
Producers are going after younger consumers and are adjusting alcohol content,
providing varieties and volume pack giveaways in an effort to build sales.
Domestic production of local traditional beer in modern packs is slightly
increasing.
Public Health and Wellbeing Principles
The public health regulations and other compliance
requirements did not apply in most of the accommodation facilities and some
restaurants where basic standards with regard to overcrowding, water supply and
waste water, cleanliness and clean linen, toilet and sanitary fixtures, food
hygiene, environmental standards and building control standards did not meet
the minimum requirements.
Online Search for Restaurants and Lodges
The way consumers find and choose
restaurants is evolving. It’s critical for restaurants and lodges to ensure
that their presence and menu information is available online and mobile
platforms. Smartphone owning consumers are searching for new restaurants more
than they are any other industry, including entertainment, retail outlets,
hotels, and personal services. Online and mobile search isn’t about curiosity,
it’s about short term decisions. A percentage of consumers look at more than
one restaurant before choosing where to dine.
Challenges
of Fast Food Operations in Uganda
Fast food consumption is increasing in
Uganda significantly. More and more urban dwellers prefer fast food for its
nature of serving. So the present analysis can be a valuable contribution for
the fast food restaurants, which want to gain competitive advantage based on
consumer preferences. Moreover, the recent phenomenon in this industry has made
the consumers very much conscious about choosing a fast food restaurant. The
competition in the fast food restaurant industry is also increasing every day.
The international fast food chains are also facing competition with the local
entrepreneurs in terms of raw materials. So modifying the existing business strategies
based on consumer preferences will help these restaurants to remain competitive
and grow in the market. As a result, the Ugandan economy will also breed with
more contribution from the service industries.
The bottom
line regarding Quick Service Restaurants (QSRs) worldwide is that they exert
great influence in determining the physical and mental health status of the
populace which they feed daily. Therefore food safety concerns and hygiene
issues relating to sanitation, contamination and diets have been raised in
certain quarters. Whitney and Rolfes (2002) asserted that when a food
manufacturer or restaurant chef makes an error, the result may be an epidemic
food-borne illness. For instance, in the mid-1990s, when a fast food restaurant
served undercooked burgers tainted with the infectious organism called,
Escherichia coli, hundreds of patrons became ill, and at least three people
died. According to Whitney and Rolfes (2002), consumers have concerns about the
safety of their food, they want to know what causes food poisoning and they
become alarm when they hear of contaminants and pesticides in foods. They
therefore wonder whether food additives are safe and are more worried about the
availability of clear drinking water. Whitney and Rolfes (2002) therefore
summarizes food safety concern to include food-home illness, nutritional
adequacy of foods, environmental contaminants, naturally occurring toxicants,
pesticide residues and food additives.
Several
other studies and investigation have linked the increasing consumption of fast
food to excessive body weight, especially in children, obesity, diabetes, heart
disease, etc. As a result, fast food restaurants have been alleged several of
promoting excessive calories intake beyond the daily 2000 calories needed by
individuals. Center for Disease Control and Prevention ranks obesity as the
second leading cause of preventable death in the United States. The attendant
effects of all these issues are considered unfavorable to economic growth and development
of nations. This raises the cost of health care, mainly from diabetes and heart
diseases. All these issues have stimulated increased interests in the promotion
of the use and consumption of natural local food and cuisines containing fresh
ingredients and unsaturated fats as against fast food choices.
Globally, cases
of litigations and health claims filed against fast food owners-operators are
also increasing daily. In response to this, stakeholders in the industry are
now faced with the need for proper reappraisal and realignment of their
operations in line with healthier laid down procedures and guidelines targeted
at increasing life expectancy. One restaurant CEO asserted that healthy living
is an option for who is interested, not to be forced down, and that is why
practitioners now strive to offer a very broad food profile.
Uganda as an
emerging economy is not left out of all these developments spreading worldwide.
The growth and survival of the industry in the country can be said to be
currently challenged by menaces such as:
·
Poor infrastructures and lack of basic public utilities
·
Inadequate food processing facilities
·
High cost of funds
·
Multiple taxation
·
Informal practices among others
·
Poor sanitation facilities and toilets
Also,
because of their attractive and accommodative nature, customers are usually
tempted to overuse fast food facilities, turning them into meeting points and
relaxation centres. In order to discourage this, some authorities are
suggesting plans to impose tax and reduce indiscriminate consumption of fast
food.
The
greatest challenge facing the country is unhealthy competition posed by the
plethora of the informal sector, which not only eats into the market share of
the organized sector, but also threatens public health and the environment.
Conclusion
The study recommends that the
Ugandan fast food restaurants should focus more on food quality, price, speed
of service, and environment as consumers emphasize mostly on these factors. Consumers
tend to compare among the restaurants based on these factors while selecting a
restaurant to dine out. Thus ensuring superior quality foods with reasonable
price and prompt service in a delightful environment will help the fast food
restaurants to attract and retain more consumers with increased amount of
consumer satisfaction and market share.
Despite
the various challenges faced by fast food operators, which in some cases, leads
to eventual withdrawal from and closure of the business, the fast food business
still remains one of the most promising ventures, entrepreneurs should not
overlook. The emerging opportunities and potential patronages awaiting
courageous and bold investors in the industry should not be further delayed and
wasted, but adequately matched and harnessed with the possession of adequate
skills and knowledge which this report has succeeded in bringing to the fore.
Some further specific
recommendations made on each fast food restaurants considered in the study are:
- Emphasis on prompt service as it has
the lowest attitude score in terms of “quick service‟ belief. Besides
reducing the food price may help the restaurant to attract more consumers.
-
Focus
on modifying the physical environment of the restaurant. Besides increasing the
food quality can also help the restaurant to gain more market share.
-
Total
renovation throughout the restaurants, specifically in terms of food quality,
pricing, promptness in service, and environment of the restaurant.
Uganda
Restaurants and Lodging Association
P. O. Box 29324 Kampala, Tel: 0783 398702
Nkrumah Road, UCA Building, Mezzanine Floor, Suite 108
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