Strategic Analysis of The fast-food industry in New Zealand 2022

Running head: NEW ZEALAND FAST-FOOD INDUSTRY
Strategic Analysis of The fast-food industry in New Zealand
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NEW ZEALAND FAST-FOOD INDUSTRY
Executive Summary
The report has provided strategic analysis of the fast-food industry in New Zealand
and has evaluated factors that In-N-Out Burger should consider to thrive in the New Zealand
fast-food market. A PESTEL analysis has been used to analyze the macro-environment
factors affecting the fast-food industry in New Zealand. Based on findings, PESTEL factors
have a great impact on In-N-Out Burger’s business operations in New Zealand. Also, the
researcher has focused on Porter’s Five Forces analysis which has mainly covered the
competitiveness in the industry and the supplier and buyer power.
Based on the strategic analysis of the industry, the New Zealand fast-food industry is
very competitive and faced by various challenges due to the presence of giants in fast-food
like Kentucky Fried Chicken (KFC), Burger Fuel and Pizza Hut. The report concludes by
giving recommendations on how In-N-Out Burger should understand the challenges of
venturing into the fast-food industry in New Zealand and consider its business macro-
environmental and competitive analysis to get an insight on how to improve their business
opportunities. The recommendations are well supported, realistic and based on the evaluation
of In-N-Out Burger’s current business activities and strategy.

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NEW ZEALAND FAST-FOOD INDUSTRY
Table of Content
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Company Overview...................................................................................................................3
Macro-environmental Analysis..................................................................................................4
Political..................................................................................................................................4
Environmental........................................................................................................................4
Socio-cultural.........................................................................................................................5
Technological.........................................................................................................................6
Economic................................................................................................................................7
Legal.......................................................................................................................................7
Competitive Analysis.................................................................................................................7
Threat of Substitute Products.................................................................................................7
Power of Customers...............................................................................................................8
Power of Suppliers.................................................................................................................8
Industry Rivalry.....................................................................................................................8
The threat of New Entrants....................................................................................................9
Conclusion and Recommendations............................................................................................9
References................................................................................................................................11

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NEW ZEALAND FAST-FOOD INDUSTRY
Introduction
The fast-food industry in New Zealand started in 1971 through the opening of an
outlet by Kentucky Fried Chicken (KFC). In 1974, Pizza Hut opened its first outlet in New
Zealand while McDonald’s entered the market two years later. The fast-food industry in New
Zealand lies in the restaurant industry which is otherwise referred to as Quick Service
Restaurants with market size of $3 billion. New Zealand is a consolidated and dynamic
industry with various fast-food outlets including In-N-Out Burger, Hell Pizza, Georgie Pie,
and Burger Fuel with key drivers of the industry being cleanliness, value, consistency,
hospitality, and quality. In 2012, New Zealand had over 4,700 fast-food outlets, with
approximate total sales amounting to NZ $ 2.3 billion (Mohsin & Lengler, 2015).
The fast-food industry in New Zealand is changing rapidly with industry growth of
5.7% in the life cycle curve and thus being faced with various key issues and challenges
arising in the industry which include the rise of rent in commercial districts and stiff
competition. While there is a variety of competitors in the industry with big players in the
industry being Domino’s, Tango Holdings, Restaurant Brands and McDonald’s, restaurants
in the fast-food industry in New Zealand try to ensure that they understand the best strategies
which will enable them to thrive in the fast-food market in New Zealand. Therefore, the
report makes identification of the current factors that influence the fast-food industry in New
Zealand, specifically focusing on the In-N-Out Burger restaurant. The report covers PESTEL
analysis, Porter’s Five Forces analysis and gives recommendations on factors that In-N-Out
Burger Company should address to thrive in the fast-food industry in New Zealand.
Company Overview
In-N-Out Burger is a restaurant in the fast-food industry in New Zealand dealing in a
limited and specific product menu which includes grilled cheese sandwiches, Neapolitan
shakes, milkshakes, soft drinks, French fries, cheeseburgers, and hamburgers. Founded in the