Singapore Food Industry Analysis

This assignment tasks students with conducting a comprehensive analysis of the Singaporean food industry. It requires examining key factors like population demographics, cultural influences on food preferences, consumer purchasing power, and the competitive dynamics within the market. The analysis should delve into various aspects such as distribution channels, government regulations, and the level of commitment to quality and service. Additionally, students need to evaluate the threat of substitutes, new entrants, supplier bargaining power, buyer bargaining power, and the intensity of competitive rivalry in the Singaporean food industry.

Running head: Five Guys Burgers
Marketing Assignment
Five Guys Burgers: Case Study

Five Guys Burgers 1
Executive Summary
Global fast food industry is has been gaining ground since the last decade with immense number of
organized and unorganized players joining the league. The report throws light on one such player Five
Guys Burgers which was established in 1986 and since then has shown over 700% growth. The industry
analysis shows the current ongoing trends in the industry as well as the threat of new entrants and
substitutes along with bargaining power of buyers and suppliers. The fast paced lifestyles of the
consumers has led to the growth of this industry (Sorokina, 2015). A significant part of the fast food
industry still continues to be unorganized, however, the organized sector is becoming a global cuisine.
This report lays emphasis of Five Guys Burgers’ strengths and weaknesses. The company has a strong
brand name and hence it was not difficult to find information on the same. Also the company has a
unique policy of not investing on advertising at all but paying their employees very high (Keiningham,
2014). They believe that if their employees are satisfied then they will automatically work harder to
please consumers.
Five Guys burgers expansion plans have been considered and new markets including China, India, Japan
and Singapore have been analyzed in this report. Expansion to India has theoretically proved to be a
better opportunity for the brand. This is because of high population and low competition existing in the
subcontinent.

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Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................5
Global fast food industry.............................................................................................................................5
Factors affecting global fast food industry..............................................................................................6
Fast paced lifestyles.............................................................................................................................6
Low cost of products...........................................................................................................................6
Increasing obesity and health consciousness (Appendices 6)..............................................................6
Easy availability....................................................................................................................................6
DeMarketing........................................................................................................................................6
Global cuisine......................................................................................................................................6
Porter’s five force model.........................................................................................................................7
Threat of new entrants........................................................................................................................7
Threat of substitution..........................................................................................................................7
Bargaining power of buyers.................................................................................................................7
Bargaining power of suppliers.............................................................................................................8
Industry rivalry.....................................................................................................................................8
Internal company analysis: SWOT analysis..................................................................................................8
Strengths.................................................................................................................................................8
Weaknesses.............................................................................................................................................9

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Opportunities..........................................................................................................................................9
Threats.....................................................................................................................................................9
Potential markets: Japan/India/Singapore/China......................................................................................10
12 C analysis..........................................................................................................................................10
12 C Analysis......................................................................................................................................10
China..................................................................................................................................................10
India...................................................................................................................................................10
Japan.................................................................................................................................................10
Singapore...........................................................................................................................................10
Reasons for selecting India....................................................................................................................11
Mode of entry to India..............................................................................................................................12
Franchisee model..................................................................................................................................12
Marketing mix for five guys burgers in India.............................................................................................13
Product..................................................................................................................................................13
Price.......................................................................................................................................................13
Promotions............................................................................................................................................13
Place......................................................................................................................................................14
References.................................................................................................................................................15
Appendices................................................................................................................................................17

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Introduction
The fast food industry of the world has been growing at a rapid pace. This is potentially due to increasing
demand, changing lifestyles and sundry availability of options to consumers. Since 1970 till 2016 the
revenue of the industry has grown over 30 times (Welch, 2010). Globally, the fast food industry
generates more than GBP 433 billion annually and is expected to generate GBP 493 billion by 2020
(Appendices 1). The burger industry alone contributes to GBP 30 billion of the revenue generated.
Predominant players of the burger industry are McDonalds, Burger king and Wendy’s (Wilk, 2006). This
report throws light on Five Guys Burgers which is a leading burger joint founded in 1986 by Jerry
Murrell, his wife and his five sons. At present, the brand operates via 1039 stores across US and 41
stores spread over UK. Since 2006, the company has shown a stupendous growth of 792%. Their motto
is “To perfect and serve” and this is exactly what they promise to their customer every day (Lang, 2015).
Currently, the brand is looking at further international expansion plans to the Asian market. The details
of which are shared below.
Global fast food industry
Global fast food industry generates over GBP 433 billion annually and continues to be moving on a
growth trajectory with an expected compounded annual growth rate of 4.2% in the forthcoming years
(Pre Newswire, 2017). According to recent survey, the industry is expected to hit the target of GBP 493
billion by the end of 2020 (Globe newswire, 2017). However, it has been established that the actual data
is difficult to estimate due to the increasing number of roadside vendors. Also the nature of market
being predominantly unorganized, makes it even more tedious to grab accurate data.
Fast food is basically empty calorie food which has a bulk of calories and few or no micronutrients at all.
This fast food is served by QSR (Quick service restaurants) and roadside vendors. A number of trends
have impacted the industry and helped reach the strata it has achieved today. Increasing urbanization,
globalization and privatization has made it easier for brands to conduct international expansion
(Baggaley, 2014). Whereas, rapid paced lifestyles and convenience accompanied by fast food has helped
the industry created a vast market of consumers.

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Factors affecting global fast food industry
Fast paced lifestyles
There has been a significant shift in the lifestyles of people. The excessive work load and other
commitments have left people with less time to spare. Therefore this fast lifestyle of people provides for
a perfect opportunity for the fast food industry to market their products (Nestle, 2013).
Low cost of products
Besides less time, the products also cost less and are pocket friendly. A five guy’s burger would cost a lot
lesser than an Indian or Italian meal eaten at a restaurant. This low cost is hence able to serve to a larger
target market and leads to increased demand (Belasco, 2014).
Increasing obesity and health consciousness (Appendices 6)
Increasing obesity and health consciousness among people has adversely impacted the growth of the
fast food industry (Smith, 2015). People are becoming increasingly health conscious and focusing on a
healthier diet. This is impacted the industry as now the players of the industry need to innovate and
include healthier options in their menus to avoid losing base.
Easy availability
Fast food joints are easily available in every nook and corner of the globe. The number of both organized
brand outlets and unorganized roadside vendors have increased (Walker, 2014). This easy accessibility
has also given a boost to the industry.
DeMarketing
Due to increasing obesity, governments of various countries have started DeMarketing the fast food
items and started spreading awareness about the ill effects of consuming them excessively (Medina,
2016). This is an important factor affecting the fast food industry.

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Global cuisine
One of the most important factors affecting the industry is the emergence of fast food as a global
cuisine. Most of the industry players work on franchise model and hence people travelling to different
parts of the world are able to access it easily (Metin, 2015). These brands are considered as safest food
consumption options especially when they are unable to quench their hunger with local cuisines
(Catherine, 2014).
Porter’s five force model (Appendices 8)
Every time a new firm wishes to establish itself into international markets, a strategic tool of porter’s
five force model is used which helps the brand get a clear idea about the industry. This helps the firm
work upon its positioning in order to gain a competitive advantage.
Threat of new entrants
For the fast food industry, the threat of new entrants is high and new entrants can surely impact the
market share of Five Guys burgers on a large scale. This is because of three main factors and their level
of impact Firstly, the cost of switching from one brand to another for customers is low and the cost of
capital required to establish a new brand especially in the unorganized sector is low.
Threat of substitution
Substitutes are a major factor adversely impacting Five Guys Burgers’ sales. This is due to the high
number of substitutes available in the market. There are various factors that impact the substitution of a
product. Firstly for the entire fast food industry, there are various substitutes available in the
unorganized department and the cost of switching from one fast food product to another is very low for
consumers. This is why the threat of substitution is very high.
Bargaining power of buyers
The bargaining power of buyers is very strong and largely influences the brand’s sales. This high
bargaining power makes sure that the firm consistently aims to improve customer service and
differentiates itself from its many competitors. The cost of switching from one brand to another is very

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low for a consumer and there are various substitutes available in the market. This makes the bargaining
power of buyers very high.
Bargaining power of suppliers
Five Guys Burgers have loyal suppliers and the greater brand reach and value ensure that. Therefore the
bargaining power of suppliers is much lower. This is also due to a large number of suppliers in the
market and the cost of switching from one supplier to another is very low for the brand.
Industry rivalry
Five Guys Burgers faces tough competition from various fast food joints specially McDonalds, Wendy’s
and burger king who dominate the industry at the moment. The industry competition is very high as
there are a large number of players in the industry. On top of that every firm is putting their best food
forward to leave their mark in the consumer’s minds. The low cost of switching brands from one
consumer to another makes the level of industry rivalry very high.
PESTLE Analysis (Appendices 2)
Political
Fast food industry players are adding healthier options on their menu as the government is actively
discouraging obesity. The healthy menu choices act requires restaurants in certain locations to post the
number of calories for foods and drinks openly.
Economic
High rate of unemployment and increasing inflation are leading to lowered purchasing power among
people. This largely impacts their buying behavior especially for non-necessary food items. Improved
international trade has made it easier for brands to reach out to customers from different countries.
Social
There is a suddenly a massive shift towards healthy eating habits among people. The rise in
vegetarianism, Veganism and demand for gluten free products has also reduced the demand for fast
food. However, the younger generation still considers fast food a necessity and there has not been a

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noted change in their buying patterns. The fast paced lifestyle of people has enabled them to switch to
quick foods.
Technological
The fast food sector which was highly unorganized is now gaining prominence with its increasing reach
and more developed platforms. Players like McDonalds, Five Guys Burgers etc. have no made their
services available on websites and mobile applications which has made it easier for people to order food
and get it delivered on their doorstep.
Legal
The pressure of changing legal requirements has risen over time. Food quantity and nutritive value are
most affected by these laws. Packaging and waste management are also critical to the laws of the state.
Environmental
Changing government rules and regulations have been pressing the brands to adopt a greener approach.
Their waste management needs to be up to the mark and the quality of the food offered must not lack
by any legal or political standard. The food and drug administration has also tightened the rules.

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Internal company analysis: SWOT analysis
SWOT analysis is a management tool performed to throw light on the strengths and weaknesses of the
company which can be controlled by the firm and opportunities and threats existing outside the
company that are not in control of the firm (Appendices 3).
Strengths
The biggest strength of Five Guys Burgers is the strong brand name that exists since 1986. The logo of
the brand is easily recognizable and the firm has ensured that it is depicted clearly on every outlet and
promotional tool (Aaker, 2013). The large number of outlets throughout US and Europe have made the
fast food chain easily accessible which in turn generates higher sales.
Their burgers do not have trans-fat and people have noticed that their bun is eggier than other
competing brands like McDonalds and Wendy’s (Fox News, 2017). One thing that the firm has ensured is
that they pay their employees much higher than industry standards. This was done to create employee
loyalty and instil a sense of ownership.
Weaknesses
The predominant weakness of the firm is its small menu with limited options. The firm tried to expand
the menu but failed and now has stuck to fries and burgers (Five Guys Burgers, 2017). Despite the large
reach, the firm does not spend much on advertising. They barely have any television ads and their social
media marketing is below average.
Unlike other brands, they lack healthier options and with the changing lifestyles and increasing health
consciousness of people, this is a major disadvantage. The reason people prefer fast food is because it
saves time and is a healthy option, however the lack of drive through makes Five Guys Burgers a lesser
preferred option and gives a clear disadvantage for the brand (Seiouseats, 2008).
Opportunities
As given the case study, the brand has plans to expand in Asia. The high population and lesser
competition in the region makes it a perfect opportunity for the brand to expand. They could also

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involve a special and unique menu to attract children who also form a large part of their target market.
Five Guys Burgers could also focus on corporate tie ups to increase sales and reach out to a wider
audience.
Threats
The increasing competition in the industry is the biggest threat posed to Five Guys Burgers
(Smashburger, 2012). The industry is Red Ocean and there are many organized as well as unorganized
players. Also, there are various DeMarketing initiatives taken by the government to throw light on the
increasing obesity of the nation which directly impacts the sales of Five Guys Burgers.
The recent UK budget also symbolizes that there is a fall in wages in real time because the prices are
rising faster than pay (Appendices 9) (The Guardian, 2017). This means that Five Guys Burgers would
have to increase the wages for their employees.

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Potential markets: Japan/India/Singapore/China
12 C analysis (Appendices 7)
Japan
Japan is an Asian country with a population of 127 million and a constitutional monarchy. This indicates
the emperor selects the leader who then governs the nation and there are set of laws which limit the
power of the leader. Yen is the currency of Japan and 1 GBP is equal to 148 Yen. The fast food culture is
well established in the country. However, the average age of the country is very high and the target
market for Five Guys Burger would be the youth. Japan ranks 34 in the ease of doing business according
to World Bank report. This would make opening of a new business much easier and the channels used
for the same could be franchisees.
India
India is a large Asian country with a population of 1.32 billion. They follow a democratic government and
the currency is INR or Indian Rupee. One GBP is equivalent to 86 INR. The country is youthful and has a
wide variety of cultures and local traditions. This is a good country for Five Guys Burgers to expand upon
as the competition here is much lesser and the population is very high. Government control on new
business is minimum and hence it would be easier for the brand to establish a new base.
Singapore
Singapore is predominantly a tourist country. It is comparatively a smaller country with a population of
1.2 million. The currency in circulation is Singapore dollar and one GBP is equal to 1.79 SD. This country
is ranked 2nd on the ease of doing business. The channels of distribution would be franchise as well as
company owned outlets.
China
China is the largest Asian country with the highest population. The currency in circulation is Yuan and 1
GBP is equivalent to 8.7 Yuan. The government control is very high and the country ranks 78th in the ease
of doing business. The large population is a big advantage. However, the high government controls and

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the competition from unorganized sector is very high. The population prefers has very different eating
habits and hence Five Guys Burgers would have to drastically change its menu.
Reasons for selecting India
1. Increasing number of youth: The biggest target market of Five Guy’s Burger are the youth. India
has the least average age as compared to the other three countries. Growing youth also comes
along with an increasing fast fold culture and hence an increased demand for burgers. This
makes India a perfect market opportunity to open Big Guys Burgers.
Country China India Japan Singapore
Average Age (In
years)
37.1 27.6 46.9 40.5
2. High population: The country comprises the mammoth population of 1.32 billion individuals.
This growing population combined with a high number of youth provide for a large market for
the fast food industry.
3. Lesser competition: Competition is a very important factor in deciding new markets for any firm.
Burger King and McDonalds are the biggest competitors of Five Guys Burger who fortunately do
not have a high reach in the Indian subcontinent.
Country China Japan India Singapore
Population 1.37 billion 127 million 1.32 billion 1.2 million
Number of
McDonalds
outlets
2500 2975 300 120

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Number of
Burger King
Outlets
1200 200 35 81
As the table indicates, it is evident that despite having the second highest population, the
number of outlets for both burger king as McDonalds are much lesser in India. Both the brands
have expansion plans in India and hence it is a perfect opportunity for Five Guys Burger to
initiate expansion to this region.
4. McDonalds losing share: Due to increasing quality checks in India, McDonalds is facing sever
legal charges in the country and had to shut down 169 outlets including the ones in the capital
New Delhi (The Times, 2017). This has adversely impacted the brand’s goodwill. And due to
already low number of Burger Kings, the customers are now looking for other options. Five Guys
Burgers could jump the bandwagon and take advantage of this opportunity by commencing
operations in India.
Mode of entry to India
There are several ways in which a new business can enter international markets. The mode of entry
selected by the business largely impacts the firm’s growth opportunities, contractual obligations, control
over the brand and business risk for the owner (Appendices 6).
1. Exporting – Sending good that are produced in one country to get in another country.
2. Licensing and Franchising agreement – Such an agreement allows foreign firms to either
exclusively or non-exclusively to manufacture a proprietor’s product in a specific market for a
fixed period.
3. Contract manufacturing – the manufacturer contracts with another firm for components. Also
known as outsourcing.
4. Joint ventures – It is a business entity created by two or more parties which is characterized by
shared ownership.
5. Wholly owned subsidiaries – involves establishment of firms which are then wholly owned by
the buyer of the business in another market. The buyer has full control over the subsidy.

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Franchisee model
In order to enter India, Five Guys Burgers could effectively use a franchise model where they could sign a
contract with a suitable firm or individual in the host country and can charge royalty for the same.
Benefits of using this model are as below:
1. Easy expansion capital: Franchisees would be paying the franchisor a royalty to commence
operations and open outlets (Blut, 2016). Therefore Five Guys Burger will be able to expand to
outlets without tapping much of their capital.
2. Increased brand awareness: The amount of time and efforts required to open a company owned
store is much more than a franchisee outlet. Therefore, in this process, Five Guys Burgers can
start by opening over 30 outlets across the country, hence increasing brand awareness and
goodwill.
3. Minimum growth risk: Franchising requires little investment and hence the risk is also much
lesser (Goldberg, 2016). The high royalties and percentage returns also make up a lucrative offer
for the brand
4. Experience: Five Guys Burgers have over 800 franchised outlets across the globe. Therefore the
firm already has a certain amount of experience in this field. This model is tried and tested and
hence a better option for entry.
Marketing mix for five guys burgers in India
Product
The product would remain the same across all outlets in India (Burgers and fries). As Five Guys Burger
has always had it, Burgers and fries, would be the only thing on the menu. However, it is essential that
vegetarian burgers would have to be added to suit the larger market of India. Most of the Indians do not
eat meat. Hence the burgers and the fries would be strictly vegetarian. But the core product (Burgers
and fries) would remain the same.

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Price
Market penetration price could be used initially where the price of the product is marked low initially to
attract customers and then the price is slowly increased (Spann, 2014). A low priced burger would easily
gain attention in the huge market of India and attract a higher number of customers.
Promotions
Television ads in leading channel of India like Sony TV, ZEE TV, and Colors etc. can be done. Newspaper
ads in leading Indian newspapers like Times of India, Hindustan Times, Mumbai mirror and Deccan
Chronicles can be done. Five Guys Burgers does not spend much on its promotion in order pay its
employees better. Therefore the frequency of the ads would be less but the brand will gain traction by
word of mouth as well.
For cheaper means of promotions and targeting the youth of India, social media marketing can be
effectively used to increase brand awareness. Most mobile applications in India also offer low cost tie
ups and are widely prevalent like Food panda, Swiggy, Zomato orders and Just Eat etc. Five Guys burger
can tie up with them and cater to ‘Take home or delivery’ market.
Place
Five cities chosen to open outlets are New Delhi, Mumbai, Kolkata, Pune and Bangalore. They are the
most fast paced cities of the country and have the highest population. They are developed cities and
hence it would be easier to find the right talent in these cities. The market here is much larger.
Within these cities the outlets should be placed in corporate buildings, near schools and colleges and
tourist places. This would be done specifically to attract students from schools and colleges who look for
low priced snack options, corporates who look for quick serving food and tourists who appeal to a global
cuisine and familiarity of taste.

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Recommendations and Conclusion
The increasing demand and changing lifestyles have created a brilliant opportunity for fast food joints
like Five Guys Burgers. The brand provides quick snack options in the form of burgers and French fries
and have been appealing to customers since 1986. Their founder Jerry Murell has worked hard and
helped the firm build into a solid and reliable brand across US and Europe. Five Guys Burgers is spread
over 1039 stores around US and Canada.
Despite the great business, a few recommendations for the brand are as below:
1. Increasing the menu to include more options of food.
2. Including healthier options in their menu to target health conscious customers
3. Advertising the product more efficiently – using social media marketing
4. Expanding to Asian countries due to increasing demand and lower competition
This report also sheds light on the recommended business plan to expand Five Guys Burgers to the
Indian subcontinent. India has a high population and the competition is much lesser. This makes the
country a wonderful opportunity to open up its outlets. However, the brand is recommended to suit the
local needs of the customers by introducing more vegetarian options. Five Guys Burgers is a great brand
that has consistently aimed to satisfy its customers as well as its employees and an expansion to the
Asian market would help the firm leaps and bounds further.

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References
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Belasco, W.J., 2014. Appetite for change: How the counterculture took on the food industry. Cornell
University Press.
Blut, M., Backhaus, C., Woisetschläger, D. and Evanschitzky, H., 2016. What Comes After the
Honeymoon: Assessing the Process of Franchisee Adjustment. In Rediscovering the Essentiality of
Marketing (pp. 341-342). Springer International Publishing.
Catherine Henderson, J., 2014. Food and culture: in search of a Singapore cuisine. British Food
Journal, 116(6), pp.904-917.
Five Guys Burgers, 2017, ‘Menu’, http://www.fiveguys.com/Menu, retrieved on 14 November, 2017
Fox News, 2017, ‘five things you did not know about five guy’s burgers’, http://www.foxnews.com/food-
drink/2017/01/19/5-things-didnt-know-about-five-guys.html, retrieved on 8 November, 2017.
Globe newswire, (2017), ‘Global fast food market’,
https://globenewswire.com/news-release/2017/03/01/929307/0/en/Global-Fast-Food-Market-will-
reach-USD-690-80-Billion-in-2022-Zion-Market-Research.html, retrieved on 7 November, 2017.
Goldberg, E., 2016. The Benefits of the Franchise Model. How-To Franchise Guide.
Keiningham, T., Gupta, S., Aksoy, L. and Buoye, A., 2014. The high price of customer satisfaction. MIT
Sloan Management Review, 55(3), p.37.
Lang, T. and Heasman, M., 2015. Food wars: The global battle for mouths, minds and markets.
Routledge.
Medina, I.G. and Coelho, P.M., 2016. How Culture has an Impact upon Product/Brand and
Communication Decisions in the Global Environment. Revista EducaOnline, 10(1), pp.95-103.
Metin, I. and Kizgin, Y., 2015. Multinational fast food chains’ “global think, local act strategy” and
consumer preferences in Turkey. International Journal of Marketing Studies, 7(1), p.106.
Nestle, M., 2013. Food politics: How the food industry influences nutrition and health (Vol. 3). Univ of
California Press.

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Pre Newswire, 2017, ‘Global fast food market’, https://www.prnewswire.com/news-releases/global-
fast-food-market---industry-analysis-size-share-growth-trends-and-forecast-2013---2019-
262722001.html, retrieved on 8 November, 2017.
SeriousEats, 2008, ‘Five guys drive thru’, http://www.seriouseats.com/talk/2008/10/five-guys-drive-
thru.html, retrieved on 16 November, 2017.
SmashBurger, 2012, ‘8 Better burger chains poised to conquer America’, http://smashburger.com/8-
better-burger-chains-poised-conquer-america/, retrieved on 16 November, 2017.
Smith, C.Y., Bailey, K.R., Emerson, J.A., Nemetz, P.N., Roger, V.L., Palumbo, P.J., Edwards, W.D. and
Leibson, C.L., 2015. Contributions of increasing obesity and diabetes to slowing decline in subclinical
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Sorokina, E. and Murphy, K.S., 2015. Why is Fast Casual Winning?.
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic pricing for new
products. Marketing Science, 34(2), pp.235-249.
The Guardian, 2017, ‘Five key charts you need to see to explain the budget’,
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brexit, retrieved on 9 December, 2017
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is-tasting-adversity-in-india-l786b5p20, retrieved on 8 November, 2017.
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Welch, L., 2010. How I Did It: Jerry Murrell, Five Guys Burgers and Fries. Inc. com.
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retrieved on 8 November, 2017.

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Appendices
Appendices 1:
Appendices 2
Political
1. Government discouraging
obesity.
2. Regulations related to
hygiene wages and food quality
Economic
1. High rate of unemployment.
2. Reduced purchasing power
3. Increasing inflation
Social
1. Switch to healthier lifestyle
2. Increasing vegetarianism
Technological
1. Food ordering mobile
applications and websites
Legal
1. Food quantity and nutritive
value most affected by laws.
2. Healthy menu choices act.
Environmental
1. Effective waste disposal and
management.
2. High qulity of food to be
maintained.
PESTLE

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Appendices 3
Appendices 4
Strengths
1. Strong brand name
2. Large number of outlets
3. High quality products
4. Well paid employees
Weaknesses
1. No advertising
2. No drive through
3. Small menu
4. Lack of healthier options
Opportunities
1. Expansion to Asian markets
2. Introduction of kids menu
3. Corporate tie-ups
Threats
1. Increasing competition
2. DeMarketing by government

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Appendices 5
Appendices 6

Five Guys Burgers 23
Appendices 7
12 C Analysis China India Japan Singapore
Country China
-Population – 1.37
billion
-Communist party
India
-Population – 1.32
billion
-Democracy
Japan
-Population – 127
million
-Constitutional
monarchy
Singapore
-Population – 1.2
million
-Parliamentary
Republic
Culture -Increasing fast
food culture
-Chinese and
English language
spoken
- Non vegetarian
food preferred
-Fast food culture
prevalent
- English and Hindi
are official
languages
- Vegetarian food
preferred
-Fast food culture
established
- Japanese and
English spoken
-Sea food
preferred
-Fast food culture
prevalent
-Tourists from
across the world
-No specific food
preferences
Concentration -High density of
population
-High density of
population
-Moderate
population
density
-Moderate
population
- Mostly tourists
Capacity Capacity of the
consumer pay -
High
Capacity of the
consumer pay –
Moderate
Capacity of the
consumer pay –
High
Capacity of the
consumer pay –
High
Currency Yuan Indian Rupee Yen Singapore Dollar
Communication Television,
Newspapers,
billboards
Television, Social
media, word of
mouth
Television,
newspapers,
social media
Television,
newspapers,
tourist guide
books, outlets in
tourist spots
Channels of
distribution
Franchisee Franchisee and
company owned
outlets
Franchisee and
company owned
outlets
Franchisee and
company owned
outlets
Control and
Coordination
High level of
government
control
Moderate
government
control
High level of
government
control
Moderate level of
government
control
Commitment High commitment
to quality and
service
High commitment
to quality and
service
High commitment
to quality and
service
High commitment
to quality and
service
Contractual
Obligations
Moderate (Ease of
doing business
rank 78) (World
Bank, 2017).
High (Ease of
doing business
rank 100)
Few ( Ease of
doing business
rank 34)
Very few (Ease of
doing business
rank 2)
Caveats Political instability Recent
demonization
Lack of young
population
Civil disturbance
and racial
discriminations

Five Guys Burgers 24
Appendices 8
Threat of substitutes (High)
1. High substitute availability
2. Low cost involved in switching from one
brand to another for consumers
3. Higher performance to cost ratio
Threat of new entrants (Low)
1. Low cost of switching from one brand to
another for customers (Strong force)
2. Moderate cost of capital required to
establish a new firm.
Bargaining power of suppliers (Moderate)
1. Large number of suppliers
2. Loyal suppliers
3. Low cost of switching suppliers
Bargaining power of buyers (High)
1. Low cost of switching brands
2. Large number of options available
3. High availability of substitutes
Competitive rivalry
1. High number of brands
2. Low cost of switching brands
3. High aggressiveness of firm
Appendices 9

Five Guys Burgers 25