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Situation Analysis

Hungry Jack’s

The Hungry Jack’s Corporation is a franchise of the larger Burger King Corporation. It has been in operation in Australia since 1971. The company has grown from a single outlet in Innaloo to over 320 outlets in every state in Australia (Emerging systems, 2012). It is a well established brand in the industry today as a fast food guru. The company has kept its word as stated in its corporate promise that,”The Burgers are Better at Hungry Jacks” (Hungry Jack’s, 2012). Hungry Jacks is a major player in the industry and it continues to maintain steady growth. The future of the venture can only get brighter. The company has a committed strategy that has seen it deliver and maintain high standards in terms of quality and compliance. In its huge network, the company employs over 900 managers and 18000 support employees (Annison, 2012). The brand is well recognized and established in Australia, making it an iconic venture

Market analysis

The MacDonalds Corporation remains the largest market share holder in the fast food industry in Australia. It has a market share of about 26% in total fast food share and more than 70% in the burger market share (Emmerson, 2011). The entire market maintains a steady growth of about 2% annually which is largely as a result of chicken, burgers, and baked products. In the food industry, fast service restaurants have a market share of about 60% of the total market sharer. The fast food industry in Australia is very huge with 44% of every dollar spent on foods and beverages going to fast foods. The downfall in the economy has led to many people shifting from posh restaurants to fast food joints. Therefore, even in hard economic times, the fast food industry still registers growth. In 2011, close to $40 billion was spent in the fast food industry alone (Emmerson, 2011). This put Australia at the 11th position among the most spending countries on fast food products. The increase of customers in fast foods fin Australia has overtaken that of the United States and Canada. In comparison to its huge competitors, Hungry Jack’s has about 300 outlets while McDonalds has 780, KFC has 600, and Subways has more than 1250, while Dominos has more than 850. In Australia, the food and beverage market is the largest in the industry and it accounts for more than 17% in employment and manufacturing industry. The biggest players in the fast food industry in Australia, that is, MacDonald’s, Subways, KFC, Hungry Jack’s among others produce approximately 75% of the local industry revenue. To emphasize on how big the industry is, more than 1.64 billion meals were served in fast foods in Australia in 2007. There are over 20000 fast foods outlets in Australia.

Environmental analysis

Research has shown that with the economy shrinking, millions of people are turning to fast foods for quick and cheap meals. Big franchises in the industry are reaping a lot of benefits from this. The industry has seen maintained growth over the years despite many huge companies closing down as a result of financial hardships. In the past, the industry was dominated by hamburgers. Due to the pressure of healthy dieting, the industry has diversified leading to a growth of 3.7% per annum. The menu has diversified to pizza, sushi, sandwiches, salads, chicken, pies, rolls and wraps (RAPS, 2012).

The industry which has over 20000 outlets in the country employs over 300000 people with earnings of $16 billion. Most establishments are in South Wales compared to others such as Western Australia the market is affected by both local and global trends. The emergence of easy to prepare meals is giving the industry a competitive edge. These are cheaply available in supermarkets and retail stores. Convenience and competitive pricing are key players in this industry (Evans, 2012).

Technology is a key player in the fast food industry, not only in Australia but also elsewhere in the world. For instance, itakeaway which is an Australian company developed an online application that enables ordering take away foods from fast foods outlets. The application has helped many fast food outlets increase their sales and also made it convenient for consumers to choose from diverse varieties. The technology also allows users to locate the nearest outlets with ease (Euromonitor International, 2012).

Even with the many prospects in the industry, it has its ups and downs. Most employees in the industry are young people of ages between 15 and 24. Working in fast foods is, however, not fulfilling for many and is seen as a “dead end” job. Employees are overworked, stressed and underpaid. There is little or no chance at all to advance in the career ladder

Major competitors

With a huge market in the fast foods industry, Hungry jack’s is faced with immense competition from other global franchises operating the same business. The market is hugely dominated by the giant MacDonald’s with a market share of about 17 %. Kentucky Fried Chicken comes in second with a market share of about 16%. Pizza hut which is also owned by KFC also has an equal market share. Hungry Jack’s is a distant behind with a market share of approximately 4%. The rest of the market which is more than 60% is shared among small scale outlets from subways, sushi, among others. McDonalds which is the larges player has experienced exceptional growth over the years. Globally their profits have increased by about 80% while they have increased by 10% in Australia. The players in the industry are always trying to counter the strategies of their competitors. There is constant introduction of new products (Prime Skills, 2011).

The big players in the industry are very agile in their strategies. They have tapped into the now health conscious society by providing healthier options for their customer. The problems of obesity and weight are factored in to cover a wider market. Healthy foods with less calories and fats have shown increased sales among KFC, Pizza Hut McDonalds and Hungry Jack’s (Seymour, 2013). Australia is deemed to have some o the highest rates of obesity in the word. Instead of letting the campaigns against fast foods hurt their businesses, players are now offering healthier foods.


Annison, G. (2012). Marketing Magazine. Tag Archives: hungry jacks . Sydney.

Emerging systems. (2012). Case Study: Hungry Jack’s. Retrieved July 29, 2013, from

Emmerson, T. (2011). Fast Food in Australia, onsumer Profile & Brand Analysis. Sydney.

Emmerson, T. (2011). Fast Food in Australia,Market Size, Trends & Outlook. Sydney.

Euromonitor International. (2012). Fast Food Services Market Research Report . Sydney.

Evans, M. (2012, July 30). fast-food chains supersize earnings. Retrieved July 29, 2013, from Business Day:

Hungry Jack’s. (2012). Thought for Food .

Prime Skills. (2011). fast foods statistics in Australia. Retrieved July 29, 2013, from

RAPS. (2012). Fast Food Industry Environmental Scan 2012.

Seymour, B. (2013). Burger Wars. Sydney.