Unemployment, manufacturing output down, GDP growth revised downward, fall in stock markets… The list of bad economic news never ends, or so it seems.
There are some bright spots amidst the financial gloom of retrenchments and closures. Take the fast food industry as described in this article (The Straits Times- Fast Food Chains are expanding). Despite the economic downturn, fast food restaurants in Singapore are actually expanding and hiring more workers!
The article claims that “the success these restaurants are enjoying comes from their affordable well-loved meals, served up in pleasant settings”. Do you agree with the reasons listed? Is it possible to explain why the fast food industry is able to do well in spite of harsh economic conditions using greater economic analysis/ reasoning?
Given that the fast food industry is able to enjoy good business during times of recession, it seems like the fast food industry is “recession proof”. Are there any other industries that display such characteristics of being “recession proof”?
The article also mentions that customers who especially enjoy fast food are children and students. What strategies do you think fast food companies have implemented to woo such customers and do you think the success of fast food restaurants largely hinge on these target groups/ strategies?
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