The Fast Food Industry, Essay Example

Present a reasoned argument for and against the fast food industry in the US. You may include the advantages such as economic and social advantages, along with the disadvantages including increases in obesity, types of employment, etc.

Fast food consumption in America has risen over the last decades. Consumers spend a good amount of money on fast food rather than cooking inside the home most of the time(Jekanowski, Binkley, & Eales, 2001). This lends to assumptions and research facts regarding the concept of advantages and disadvantages in the fast food industry.

Advantages of the Industry

Fast Food Businesses

The fast food industry offers advantages to businesses, individual consumers, and the economy in the U.S. Fast food businesses benefit from the industry in the way of profits received from the demand for fast food by the public. Fast food businesses use promotional strategies to increase sales and thus increase their profits. For example, McDonald’s is known for using “in-your-face” strategies that include having McDonald’s restaurants in many different locations where “people live, work, play, or gather”(Jekanowski, Binkley, & Eales, 2001, p. 59). According to an article in Forbes, fast food restaurants have very lucrative per-store profits every year. For instance, Chick-fil-A grosses an average $3.1 million per store each year. McDonald’s is in second place with $2.6 million in sales per store, and Jason’s Deli is in third place with $2.55 million per store(Tice, 2013).

Individual Consumers

While fast food businesses profit from consumer spending on fast food, the individual consumer benefits from the fast food industry in the way of convenience and accessibility. Consumers assess prices of food products, but they also assess the time it takes to obtain the food for consumption. This refers to “time costs incurred when purchasing and consuming food” (Jekanowski, Binkley, & Eales, 2001, p. 60).Time cost is important to consumers and they benefit from fast food because it allows them to get food faster than having to cook it at home. Also, there are so many fast food choices in the U.S. today that it is very accessible, so there is no fear of not having choices when it comes to fast food. Another advantage of the fast food industry for consumers is employment (HNC, 2014).

The Economy

The advantages of the fast food industry for the economy is that it promotes economic development, and consumer spending, which stimulates the economy. This is particularly true because fast food sales in the U.S. contribute to the buy local movement, which impacts the flow of money in the country. This has an economic impact by keeping the economy going. In addition, the economy benefits from the high volume of dollars spent in the fast food industry, because it stimulates currency circulation in the country by which more people can benefit, such as the restaurant owners and workers getting paid to take care of their expenses, families, and lifestyles(Schwartz, 2009).

Disadvantages in the Industry

As stated, the fast food industry also has it disadvantages, which largely affect consumers in the way of health problems that stem from the unhealthy contents of most fast foods. Fast food often has high levels of cholesterol, sodium, Trans fats and saturated fats, which lead to heart disease, obesity and other health issues(HNC, 2014). Eating fast food on the run has replaced traditional sit-down dinners that were cooked at home for the family. Unfortunately, many children are fed fast foods more often than having the benefits of home cooked meals(Jekanowski, Binkley, & Eales, 2001). Additionally, fast food consumption has been proven to contribute to obesity and the health conditions that stem from being obese. Studies show that consuming fast food two or more times a week is associated with a 31% higher risk of abdominal obesity in men and a 25% higher risk in women(Jaworowska, Blackham, Davies, & Stevenson, 2013). Another study by the Journal of the Medical Association (2010) revealed that the obesity rate in the United States has doubled since 1970 until now, which is now one-third of Americans. Additionally, the number of Americans who are overweight but not yet classified as obese is two-thirds of the people in the country(Hojjat, 2015). In other words, 60% of Americans are overweight and 30% have gone past that to obesity.

Health issues resulting from fast food consumption has a negative economic impact on the country, because it is associated with higher health and medical costs. Disease and conditions related to unhealthy diets and obesity raises healthcare and health insurance costs. In addition, it causes increased disability insurance premiums and premature deaths. It also causes work absenteeism and lost productivity in the working sector because people are sick. This is due to individual decisions to make unhealthy choices with poor diets and lack of exercise and other unhealthy life behaviors(Hojjat, 2015).

Conclusion

The fast food industry is both a blessing and a curse, it seems, as there are some advantages; however, the disadvantages seem to outweigh the advantages to individuals and the economy, as it pertains to healthcare costs. This is particularly true when the disadvantages affect the nation’s children. Research shows that the fast food industry has attempted to change some menu items to healthier choices, but the problems outlined here remain(Jaworowska, Blackham, Davies, & Stevenson, 2013).

References

HNC. (2014). Pros and Cons of Fast Food. Retrieved from http://healthnewschannel.net/Disadvantages-Of-Fast-Food.html

Hojjat, T. A. (2015). The Economic Analysis of Obesity. Review of Business & Finance Studies, 6(1), 81-98.

Jaworowska, A., Blackham, T., Davies, I. G., & Stevenson, L. (2013, May). Nutritional challenges and health implications of takeaway and fast food. Nutrition Reviews, 71(5), 310-318.

Jekanowski, M. D., Binkley, J. K., & Eales, J. (2001). Convenience, Accessibility, and the Demand for Fast Food. Journal of Agricultural and Resource Economics, 26(1), 58-74.

Schwartz, J. D. (2009, June 11). Buying Local: How It Boosts the Economy. Retrieved from Time: http://content.time.com/time/business/article/0,8599,1903632,00.html

Tice, C. (2013). Million-Dollar Burger — The Most Lucrative Fast-Food Restaurants. Retrieved from Forbes: http://www.forbes.com/sites/caroltice/2013/08/30/million-dollar-burger-the-most-lucrative-fast-food-restaurants/