LOCATION ANALYSIS OF FAST FOOD CHAINS

Abstract

Fast food was introduced in Singapore in 1966. Since then, the fast food industry has continued to grow. Today, there are about 50 fast food stores operating in all parts of Singapore and the number is still growing. Fast food stores are located in the central area and non-central area in housing estates, new towns, recreation centres and shopping centres. This dissertation examines the locational features of fast food stores in these areas, and their performance resulting from locational influences. The study shows that locations of fast food stores are governed by such factors as accessibility, trade area, visibility and complementarity. These factors affect the business of fast food stores. A sample of 27 outlets from A & W Family Retaurant, Kentucky Fried Chicken (S) Limited and McDonald's Restaurant was surveyed to examine the outlets' locational features with reference to the location factors. In addition, a micro study on Parkway Parade Shopping Centre was carried out to examine its characteristics. These characteristics, such as location, anchor tenant, tenant mix, design and management and promotion, are important determinants governing the success of a fast food store in a shopping centre. Besides the above location factors, the study shows that there are other non-locational factors, such as advertising and management policies, which are vital for the performance of the stores.