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
