Factors influencing the increase of fast food outlets in the central business District of Nairobi, Kenya

Abstract

The fast food industry globally and locally has rapidly grown leading to an increased number of fast food outlets. Despite the negative implications associated with health and increased lifestyle diseases, the demand for fast food from a wide range of customers has rapidly increased. The increased demand of fast foods has resulted in increased fast food outlets. This study therefore sought to establish factors that affect the increase of fast food outlets in the Nairobi Central Business District (NCBD), Kenya. The study objectives were; to assess the effect of the customer’s socio-economic characteristics on the increase of fast food outlets, to establish the influence of food menu items on the increase of fast food outlets and to examine the role of business location on the increase of fast food outlets from in Nairobi County Central Business District. The study adopted descriptive and explanatory research designs. Structure Conduct Performance model and Market Based View theory guided the study in explaining the factors that contribute to increase of fast food outlets in NCBD. The target population comprised of customers above 10,000 who visits fast food outlets in a day, 240 operations staff and 60 fast food outlets managers. A 25% of 60 fast foods outlets were sampled using simple random sampling technique that gave 15 establishments. One manager from each of the 15 selected establishments was purposively sampled. Primary data was collected from the managers using key informant schedule. Cochran formula was used to calculate a sample size of 384 customers. Respondent customers were selected using systematic random sampling technique. Descriptive statistics such as frequency, mean and standard deviation were used to summarize and present data. Qualitative data were analysed using content analysis while quantitative data was analysed using descriptive statistics. Chi-Square analysis technique set at 0.05 was used to test the null hypothesis. Chi-Square analysis result p>0.05 at 0.05 significance level found socio-economic characteristics of customers, food menu items and business location influenced the increase of fast food outlets in NCBD. Multiple regression analysis established that independent factors explained 63.6 % (R2 =0.636) of the variance on the increase of fast food outlets. Results from the multiple regression indicated that, increase of fast food outlets was influenced by; food menu (β=0.592; P<0.01) business location (β=0.538; P<0.01) and social economic factors (β=0.534; P<0.01).The study concluded increase of fast food outlets were as a result of types food menu, business location and socio-economic characteristics. The study recommends development of policies, laws and guidelines to regulate fast food industry in Kenya