Examination of Consumption Habits of Fast Food Patrons in Singapore

2011
EXAMINATION OF
CONSUMPTION
HABITS OF FAST
FOOD PATRONS
A study of consumer demand for healthier alternatives
Prepared For:
Mr Jamaludin bin Muhammed Ali
Chief Executive Officer
KFC Corporation
YongMing
NGEE ANN POLYTECHNIC
6/3/2011
EXAMINATION OF
CONSUMPTION HABITS OF
FAST FOOD PATRONS
EXAMINATION OF CONSUMPTION HABITS OF FAST FOOD PATRONS
Prepared For:
Mr Jamaludin bin Muhammed Ali
Chief Executive Officer
KFC Corporation
Prepared By:
Angeline Leong
Chan Yong Ming
Jasper Lim
Kimberley Thong
Tan Fang Xian
International Business / Year 2 / TZ01
Date of submission:
June 3 2011
Ngee Ann Polytechnic
535, Clementi Road, S599489
TABLE OF CONTENTS
Executive Summary ……………………………………………………………… vi
CHAPTER 1: Introduction …………………………………………………… 1
CHAPTER 2: Findings and Analysis …………………………..…………….. 4
2.1: Public’s view about fast food …………………………………. 4
2.1.1 Trend of fast food consumption ………………………. 4
2.1.2 Public opinion ………………………………………… 5
2.1.3 Health concern in KFC meals ………………………… 6
2.1.4 Consequences of unhealthy fast food …………………. 7
2.1.5 Evidence of unhealthy fast food ……………………… 7
2.2: Factors for dining at fast food restaurants …………………….. 8
2.2.1 Quick and short waiting time …………………………. 9
2.2.2 Good taste of fast food ………………………………. 10
2.2.3 Low cost ……………………………………………… 11
2.3: Consumer demand for healthier alternatives ………………...... 12
2.3.1 Public’s high importance on food health quality …….. 12
2.3.2 Effect of unexpected situational factors ……………… 13
2.4: Tradeoffs consumers are willing to give up for healthier food .. 14
2.4.1 Willingness to pay more for healthier food …………… 14
2.4.2 Willingness to wait ……………………………………. 15
2.4.3 Acceptance of change in food taste ………………….. 16
2.4.4 Frequency of KFC after introduction of healthier food .. 17
2.5: Evaluation of healthier alternatives ……………………………. 17
2.5.1 Change in cooking oil …………………………………. 17
2.5.2 Addition of fruits and vegetables to the menu ………… 19
2.5.3 Herbal Tea ……………………………………………. 19

CHAPTER 3: Conclusion ……………………………………………………... 20
CHAPTER 4: Recommendations …………………………………………….. 21
4.1 Revision of current menu ……………………………………… 21
4.2 Addition of healthier alternatives ……………………………… 22
4.3 Marketing strategies ……………………………………………. 23
APPENDIX A: Questionnaires …………………………………………………. 25
APPENDIX B: Demographic information …………………………………….. 28
References ………………………………………………………………………... 31
Examination of Consumption Habits of Fast Food Patrons vi
EXECUTIVE SUMMARY
This report aims to analyze and evaluate healthier alternatives and their profitability in the fast
food industry. Method of research includes getting primary data from street surveys and face-to-
face interviews conducted at Bishan Junction 8, as well as a plethora of secondary resources
inclusive of published academic journals, online books and newspaper articles.
The limitations of the analysis in this report are reliability, comparability of data and the possible
interviewer bias, small sample size, unwillingness of respondents to reveal truthful opinions as
well as language barriers.
KFC’s fast food has a poor rapport among the public in terms of health quality. However, the
public continues to dine at fast food chains due to its efficient queue systems and strategically
located outlets. Additives such as artificial flavouring prove to be health hazards. The issue of
high fat content in fast food is a contributing factor to the rise of heart disease, which is the
second most common cause of death in Singapore.
The health detriments of consuming fast food have led to an increasing demand for healthier
alternatives in fast food restaurants. About 54% of the respondents listed health quality as one of
their top priorities in evaluating options for dining out. Singaporeans are becoming
progressively health conscious as they hold their well-being in high regard. In general, there is an
inclination to the idea of healthier alternatives served at a fast food restaurant by the sample.
Examination of Consumption Habits of Fast Food Patrons vii
Consumers are willing to pay more and spend more time waiting in order for food to be prepared
in a healthier way. However, minority of the sample is not willing to compromise the taste of fast
food so that it can be healthier. Generally, consumers will be receptive to the introduction of
healthier food.
In order to sustain the business in the long term basis, KFC could introduce healthier alternatives
to their existing menu so as to encourage smart consumer buying decision. Additionally, KFC
could possibly induce a change in production methods such as using non-hydrogenated corn oil
or adding fruits and vegetables into the menu. From the sample, only a handful of people
reflected that the low cost of fast food is the main drive for them to patronize fast food, thus
there is great potential in exploring the possibility of introducing healthier alternatives in fast
food restaurants to increase its profitability despite the increase in cost.

Examination of Consumption Habits of Fast Food Patrons 1
CHAPTER 1: Introduction
Purpose
The purpose of this report is to evaluate how Singaporean consumers respond to healthier
alternatives in fast food restaurants so that KFC can better understand consumer buying
behaviour, thereby implementing the best marketing strategy to appeal to more consumers and
increasing their profit margins.
Scope
The report examines public’s opinions about health quality of fast food, the factors for dining at
fast food restaurants, trade-offs consumer are willing to give up for healthier alternatives, and the
evaluation of consumer demand of possible healthier alternatives of fast food. With the data
collected, we can understand how consumers feel about KFC’s products and recommend
strategies to improve branding and profitability for the company.
Research Methodology
Research is conducted through secondary and primary channels. Secondary data sources are
information gathered that exists somewhere, being collected by someone other than the user
himself. This report referred to resources such as Internet, published journals, case studies,
online books, and university articles.
Primary data consists of information gathered for a specific report plan, which is the data
collected specifically in relation to the topic of this report. Primary data for this report is
collected through face to face surveys and personal interviews.
The street survey was conducted on a public holiday, May 17, 2011 outside Bishan Junction 8
shopping mall. The target audiences for the survey were 3 main groups of people, the teenagers
(13 to 20 years old), the adults (21 to 49 years old) and the elderly (above 50 years old). The
survey was completed by 97 respondents and they were asked to fill up a two page survey, as
attached in the Appendix.
Limitations of research
SECONDARY DATA:
Reliability of data
Secondary data sources especially from the Internet may be unreliable, as anyone can write or
edit sources from the internet. Statistics reported online may sometimes be too optimistic,
reflecting the organization projection of its research capability and pride instead of realistic
statistical figures.
Comparability of data
Comparability of secondary data is another limitation because researches found online are
conducted by different groups of people, with different purposes for the report. This could mean
that the report may be too broad to be of specific value, reflecting the author’s personal opinion
rather than practical reality.
PRIMARY DATA:
Sample size
Surveys are the most widely used method to find out about preferences and consumer behaviour.
A sample size of 97 respondents was included in our report, however it is far from the
recommended, 500 sample size, to draw a reasonable conclusion about the population.
Privacy Concerns
There may be unwillingness of respondents to give an honest and truthful answer. In Singapore,
our culture prohibits us from expressing our truthful opinions to strangers in the streets. For the
survey, people might be reluctant to share their true eating habits. Due to privacy concerns, one
might also be unwilling to answer questions that are related to their finance planning, for
example “how much more are you willing to pay for healthier fast food?”
Structured response questions
These types of question in the surveys are subjected to the choice of respondents. In the case
where the respondents disagree with the options available, they are still forced to pick one
amongst the choices provided in the questionnaire.
Sampling equivalence
The emotional concepts measured in the survey might not be equivalent across different social
backgrounds of people in Singapore. For example, ‘unhealthy’ for an individual may not be
“unhealthy” in another individuals’ opinion.
Language Barrier
While conducting face to face survey, some people are not able to comprehend the questions due
to language barrier. When translation is done, it could be biased as some words do not have an
exact word in the language to be translated to. As for surveys, it is limited to gathering the
responses from a sample with a certain literacy rate. However, this limitation is not a major issue
in Singapore which has a literacy rate of 95.9%, according to statistics from Bureau of East
Asian and Pacific Affairs.

CHAPTER 2: Findings and Analysis
2.1 Public’s view about fast food
2.1.1 Trend of Fast Food Consumption
In the current fast-paced society, demand for more convenient meals is increasing. However,
after a boom in the number of fast food chains worldwide, people became more aware of the
food that they consume. People became more health-conscious and begin to wonder how fast
food might affect their health and are concerned over the safety aspect of the food supply.
Although awareness of the importance of proper diet increased, fast-food, snacks and soft-drink
consumption is still on the rise. Many people are already unable to meet the recommended
dietary allowance for nutrients, and yet consume too much calorie, causing the problem of
obesity. Obesity occurs when the Body Mass Index (BMI) of the body is more than or equal to
30. Obesity prevalence in Singapore was 5.1% in year 1992, however in year 2004, prevalence
of obesity increased by 1.8% of the population, resulting in 6.9% of the population classified as
obese. (Low, et al., 2009)
86.5% of teenagers between ages 13 to 20 from our sample are aware that fast food is not healthy
option. A study funded by the National Heart, Blood, and Lung Institute (2004) in the United
States found out that young adults after the age of 15, who frequents fast food restaurants gain
more weight, and have twice as much insulin resistance as those teenagers who visits fast food
restaurants less than once a week. Insulin resistance is a common sign of type 2 diabetes, and is a
huge risk of heart disease. The study demonstrates the negative health impacts fast food
consumption has on the human body.
· 2.1.2 Public Opinion
Opinion of health quality of KFC's food

30
25
20
15
Number of people
10 Teens
Adults
5 Elderly
0
y y y y
alth alth alt
h
alth
yH
e He he
nh
e
r Un U
Ve ha
t r y
ew Ve
m
So
Level of healthiness
Figure 1
A survey done outside Bishan Junction 8 revealed that 86.5% of teenagers surveyed felt that the
health quality of KFC’s food products is unhealthy. The other respondents feel that fast food was
healthy. 87% of the adults surveyed, felt that fast food meals KFC served was unhealthy, while
there were 2 respondents who stated that they felt KFC’s food was acceptably healthy.
There is a general consensus among both teenagers and adults that the health quality of KFC’s
food is unhealthy and that the most serious health concern of fast food is the oil, followed by
high calorie and fat content, lastly high sodium content.

2.1.3 Health concern in KFC meals
Majority of the working population felt that fast food is unhealthy and more than half of the
respondents have avoided KFC due to health concerns at least once. Similar to the findings of
teenagers, most of the adult respondents agreed that the most serious health concern of fast food
is the oil, followed by calorie and fat content, and high sodium content.
Most serious health concern in KFC's meals

20
16
12
Number of people
8
Teens
4
Adults
0 Elderly
l nt
oi iu
m
te r ie in
g
ty d n lo ur
ali so tc
o ca vo
qu in fa gh a
w gh Hi ial
fl
Lo Hi gh c
Hi rti
fi
A
Health concern
Figure 2
When asked about the most serious health concern in fast food, 49% of respondents felt that it
was too oily, while 11% and 24% felt that fast food contains too much sodium content and fat
content respectively. The other 16% of our sample felt that it has high calorie content and is high
in artificial flavourings, colours and preservatives.
From the findings, teenagers are most concerned about oily fast food. Fast food chains are
known to use hydrogenated cooking oil, and regular consumption of such food products poses
major health risk to consumers. Besides, fast food is frowned upon by many is because of its
high calorie content due to usage of refined sugar and fats.
2.1.4 Consequences of unhealthy fast food
High sodium content in fast food is linked to the increase risk of hypertension (high blood
pressure), a condition where a large force of blood continuously pushes against the walls of the
arteries. It is a serious condition that leads to other health problems such as coronary heart
disease, kidney failure and stroke.
Meat from fast food is high in cholesterol, it causes the accumulation of bad cholesterol in one’s
body which causing the thickening or clogging of the arteries. The obstruction of blood flow to
the body can cause heart attack, or heart failure in extreme cases of complete artery blockage.
Trans fat is the worst type of fat, and can be found in most processed fast food. They are
unnatural fats that are believed to be responsible for the significant increase in Ischaemic heart
disease. Ischaemic heart disease is the second most common cause of death of Singaporeans.
Based on the Ministry of Health Singapore (2009), 29.3% of death is due to Ischaemic disease.
Obesity is the most commonly spotted side effects of too much consumption of unhealthy food,
coupled with little or no exercise. The body accumulates fats that are not used up if a person is
physically inactive. Besides the risk of many diseases, it may pose as a physical discomfort with
the extra weight, in turn leading to lowered self-confidence and other unhealthy side effects to
the body and mind.
· 2.1.5 Evidence of unhealthy fast food
The repeated heating of food at high temperatures causes the arteries to be blocked in long run,
and the high sodium content from common salt and other additives worsen the health standards
of KFC meals. Additionally, fast food is lacking of essential nutrients and dietary fibre, and set
meals are often served with sugared soft drinks. (Health food guide, 2010)
Manhattan’s artist, Sally Davies did a test on MacDonald’s Happy meal. She left the meal on her
apartment shelf and took photos of the Happy meal each day. She observed on that the food did
not emit anymore smell on day 2, and expected that the food will decompose after 2 weeks. To
her shock, after 6 months of leaving the food alone, the overall appearance of the food did not
change, with no signs of decomposition or any moulds. She then claimed that the fast food is
indestructible.
This is a prime example, showing the amount of preservatives and other unhealthy ingredients
that is present in fast food, that enables fast food corporations like MacDonald's and KFC to keep
the processed food in the same condition for more than half a year. It shows the possibility of
fast food being left at the kitchen for months before buyers around the world would consume it.
·
2.2 Factors for dining at fast food restaurants
This section states the analysis of consumer buying behaviour in the fast food market. The main
reasons are consumers’ desire for the good taste of fast food meals, affordable fast food meals,
convenience of fast food chains locations and its quick waiting time. Other reasons gathered

from open ended questions are the good service of fast food restaurants and due to peer
influence.
Main factors for dining at fast food restaurants
28% taste
cost
38%
convenience
Quick and short waiting
time
7%
27%
Figure 3
2.2.1 Quick and short waiting time
One barrier that hinders people from making a healthier diet decision, it is mostly likely due to
time constraints. In the modern-day society, people lead such a busy lifestyle that there is no
time set aside to plan, prepare or cook healthy meals. As such, it is common for convenient on-
the-go meal in fast food restaurants. According to the sample, 37.5% of Singaporeans cite short
waiting time as the main reason for patronizing fast food restaurants.
An on-site observational research was conducted to study the behaviour of the public in fast food
restaurants. As observed, fast food restaurants like KFC, Burger King and McDonalds uses the
multiple-channels queuing system. It is a system whereby the customers line up in rows directly
in front of each counter. They are arranged in relatively straight lines that do not converge.
Generally, the customers in a multiple-channels queue are more satisfied because the queue
length is shortened through distribution to different counters. This psychological factor may be
one the main reasons why the waiting time of a fast food restaurant is deemed as “quick and
short”.
2.2.2 Good taste of fast food
Patronizing a fast food restaurant due to convenience of its location and the taste of fast food
desired by consumers are on par, according to our survey. Approximately 27% of survey
respondents felt that the main reason for patronizing fast food restaurant is that it has convenient
access, the same percentage of the survey respondents also felt that the main reason is the good
taste of fast food.
Research in the United States has found that people get addicted to the taste of popular fast food
as it contains just the right mixture of fat, sugar and salt to set off the pleasure chemicals in the
brain. Experiments carried on lab rats showed that when they were fed a diet that consisted of
25% sugar – and then the sugar is removed, the rats become anxious, their teeth start to chatter
and they suffer with the shakes, that is not unlike people going through a nicotine or morphine
withdrawal. Researchers also noticed long lasting changes in brain chemistry of rats fed with
foods that had a combination of sweet, salt and fat, which led to the conclusion that there was a
possibility that people could go through brain changes and become physically addicted to eating
fast food. (Schlosser, 2001)

Both “natural flavour” and “artificial flavour” are man-made additives that give the taste of most
processed food. People’s first purchase is usually accounted by the food’s packaging or
appearance, but taste is the final determinant to repeat purchases. About 90 per cent of the
money that Americans now spend on food goes to buy processed food. The canning, freezing,
and dehydrating techniques used in processing destroy most of food's flavour, and so a vast
industry has arisen in the United States to make processed food palatable. Without this flavour
industry today's fast food would not exist. The names of the leading American fast-food chains
and their best-selling menu items have become embedded in our popular culture and are famous
worldwide. However, very little people are able to name the companies that manufacture fast
food’s taste, this shows that people do not know about the origins of artificial fast food taste. The
American flavour industry now has annual revenues of about $1.4 billion. Approximately 10,000
new processed-food products are introduced every year in the United States. (Houghton-Mifflin,
2001) Thus, we infer that this may be linked to KFC’s ‘secret blend’ of herbs and spices.
2.2.3 Low cost
Fast food is an epitome of a familiar food being transformed into a highly processed industrial
commodity. As demand increases, fast food restaurant managements seek mass production,
leading to lower cost of food through economies of scale. This profit driven act neglects the
health standards of fast food. A reasonably low 7% of the sample cites cost of fast food as the
main reason for patronizing a fast food restaurant, this means that a low number of people are
primarily focused on the low cost of fast food. This result poses a positive encouragement to our
project topic in exploring the possibility of introducing healthier alternatives to fast food
restaurants. This healthier alternative introduction may inevitably cause a rise in prices of the fast
food.
2.3 Consumer demand for healthier alternatives
2.3.1 Public’s high importance on food health quality
Level of importance placed on healthy food

25
20
Number of people
15 Teens
Adult
10 Elderly
0
1 2 3 4 5 6
Level of importance
Figure 4
About 29% of the respondents placed healthy food in their top priority when considering a place
to dine in; other factors include cost, service, taste, menu selection, and convenient location. In
total, 54% of the respondents have listed health quality of the food as one of their top two
factors, making it an important factor.

It shows that many consumers have a health-conscious mentality, therefore it is imperative that
the industry cater to this large market segment. The strong demand for healthier alternatives is
further demonstrated by the public’s willingness to pay more, wait longer and even accept a
change in the taste of the original product, in order to receive a healthier meal.
Upon evaluating the responses, it is apparent that people avoid dining at fast food restaurants
because of health concerns. If this worry was reduced, there would be significantly more people
choosing to dine at KFC
More than two-thirds of the responses stated that they would purchase the healthier alternatives
as well as dine at fast food restaurants more frequently if more of these choices were
implemented. The demand for healthier alternatives stems from their worries that fast food is
high in salt, preservatives and fat content - with oiliness being the leading factor. The test group
unanimously affirmed that these health concerns existed when they are purchasing fast food.
2.3.2 Effect of unexpected situational factors
According to the survey results, the adults and the youth are the most frequent diners of fast food
restaurants, visiting them at least once a week. Youths and elderly continue to dine at fast food
restaurants due to its convenience and efficiency of services.
After extensive research, it can be concluded that the primary reason for dining at fast food
restaurants are due to situational factors such as time constraints and the ease of convenience as
these fast food chains are conveniently located across the island. Secondary reasons are its low
cost and good taste.

As such, it can be inferred that there is demand a healthier food from the public and thus a
promising market for it. The reasons for the popularity of these restaurants are their strategic
locations and efficient service. There is such a preference, however, because of these situational
factors such as convenience and time, the people are restricted to purchase the healthier option.
These fast food diners may form an intention to eat healthily initially, however
these unexpected situational factors affect the consumer’s buying behaviour. The unexpected
events may change the purchase intention. Thus, preferences and even purchase intentions do not
always result in actual purchase choice.
These fast food chains can serve as a distribution channel for the quick healthy meals that the
market demands.
2.4 Tradeoffs consumers are willing to give up for healthier food
The core focus of this section will be the investigation and analysis of how consumers react, and
the degree of change they willing to accept if fast food restaurants decide to introduce healthier
alternatives.
2.4.1 Willingness to pay more for healthier food
Willingness to pay more for healthier food

Teens Middle age Elderly
19
15
12 12
11
10
8
3
2
1 1
0 0 0 0
<$1 $1-2 $3-5 >$5 Not willing
Figure 5
Consumers are receptive to the notion of forking out extra cash for healthier alternatives. Out of
97 respondents, none of them are reluctant to spend more on healthier options in KFC, providing
a good indication of a viable business not just for KFC, but for the whole fast food industry. Out
of 97 respondents, around 44% of them are willing to pay $1-2 more for healthier food choices,
while 39% of them have a slightly wider budget, offering to pay $3-5 more for the same benefits.
12% of people surveyed however, are only willing to a pay minimal amount of less than $1 for
these healthier alternatives, though the remaining 5% are willing to fork out a significant amount
of more than $5 on them.

However, the results differ for each market segment. More teenagers and elderly are willing to
fork out between $1-2 compared to the other price ranges, while more adults are doing it for $3-
5. One possible reason could be the difference in purchasing power of the different market
segments. Adults generally have a more stable income compared to people from other age group,
and thus are able and willing to spend more than their counterparts.
2.4.2 Willingness to wait
Willingness to wait
25
20
20
Teens
15 14 14 Middle age
12 Elderly
10 9 9
7
5
5
2
1
0 0
0
<5m 5-10m 10-15m >15m
Figure 6
Consumers believe that healthier alternative of fast food is worth waiting for. On a whole, there
is a greater percentage of people who can afford to wait 5-10 minutes more than usual waiting
time, with 44% in that category. 36% would wait less than 5 minutes, 14% would wait for 10-15
minutes whereas the minority are alright with waiting more than 15 minutes.
However, the distribution of the data differs for the different market segments. The peak of the
working population distribution falls within the range of less than 5 minutes, while that of the
teenagers and elderly population falls between the range of 5-10 minutes. A possible reason
could be time equates to money for the majority of the working population. They are not willing
to wait for the healthier alternative as it defeats the purpose of them getting fast food.
2.4.3 Acceptance of change in food taste
Accept a change taste in fast food

Yes No
34
27 26
3 3 4

Figure 7
There is a general acceptance of the change in taste of fast food if it were to be served in a
healthier way. 89% of the respondents are willing to do so, while the rest do not welcome the
change. This seem to hint that people do not prioritize taste as the main factor when visiting fast
food restaurants, and are receptive to a change in taste of food, which could spell good news for
fast food restaurants in general, as they will not be restricted when experimenting with new
recipes
.
2.4.4 Frequency of KFC after introduction of healthier food
Frequent KFC more after introducing healthier

food
Yes No
30
26
24
7 6
4

Figure 8
There has also been a general consensus among the public that they will visit KFC more if
healthier food is offered. From what we have garnered from our survey, 82% of the respondents
would increase their frequency of patronage if healthier options are available in the menus. This
is definitely a good sign for KFC as an increase in patronage would translate into more revenue
and ultimately more profits for the company.

From the results, it can also be concluded that people will generally buy the healthier option.
88% of the people presented a possibility of purchasing the healthier food. This is a positive
indication that healthier alternatives will still be viable in the long run.
2.5 Evaluation of healthier alternatives
2.5.1 Change of cooking oil
The key concern regarding the food served in KFC was that consumers felt the quality and
quantity of oil used in preparing the meals did not fit into a healthy standard. Additionally, fat
content is also a worrisome issue among consumers.
The teenagers and adult population concurred that changing the cooking oil more often would be
sufficient to tackle the issue; whereas the elderly found the idea of healthier non-hydrogenated
cooking oil used for deep frying, more appealing.
Hydrogenated oils are known to cause fatal illnesses such as coronary heart disease due to the
presence of artery-clogging trans-fat and reuse of frying oil increases risk of high blood pressure
(Environmental Nutrition, 2004). There was an unanimous consensus that the oil should be
changed and fat content should be reduced.
KFC could achieve this by following the footsteps of the third largest fast food chain in USA -
Wendy’s. The restaurant has adopted a blend of non-hydrogenated corn and soy oil, containing
significantly less saturated fat and almost no trans-fats. According to the patrons of Wendy’s in
Florida, North Carolina, and Ontario, Canada, the change of oil did not compromise the original
taste of the fries or chicken.
A change in cooking oil that preserves the signature taste of KFC’s fried chicken will fulfil the
nutritional requirements that consumers are concerned about. It is crucial that the core
component of the food does not differ too much from its original form. Major adjustments in the
altering an existing menu item may be costly because a change can affect the product processes
and thus require additional capital investment. It had taken Wendy’s a total of two years and a
fair amount of investment in research and development in order to formulate a healthier oil that
did not affect the taste of its food.
2.5.2 Addition of fruits and vegetables to the menu
Other suggestions such as adding fruits and vegetables to the menu are also widely received.
According to the Journal of Alzheimer’s Disease (2009), fruits and vegetables boost antioxidant
levels, and improve metal performance and cell regeneration. The fruits and vegetables can be
incorporated into the menu as an optional side order, instead of whipped potato and French fries.
Table 1: Comparison of nutritional value of side orders to a garden salad
Food Fat Content (gm)Sodium (mg)Carbohydrate (gm)

Whipped Potato (Reg) 0.3 332 10.4
French Fries (Reg) 14.6 62 32.5
Coleslaw (Reg) 7.0 39 27.2
Burger King’s Garden Salad (Reg)3.5 90 7.0
As shown in Table 1, a garden salad (served by another fast food chain) has lower total fat
content and carbohydrates compared to the average side order, as well as lesser sodium than a
regular whipped potato from KFC. Moreover, the salad also comprises of fruits and vegetables
that will endorse a healthier nutritional standard by providing the important vitamins,
antioxidants and minerals that we need.
2.5.3 Herbal tea
Another plausible suggestion is the addition of “cooling tea” also known as Chinese Herbal Tea,
to its menu. It has been researched that Chinese herbal tea significantly reduced blood
cholesterol levels in humans and may prove safe and useful in improving metabolic syndrome
and obesity (Fujita & Yamagami, 2008). Consumers agreed that they felt drinking tea together
with their meals could offset the unhealthiness of deep fried food, as well as reducing their intake
of sugary soft drinks such as Pepsi or Coca Cola. A positive spillover effect of this
implementation is that this will allow the integration of local culture and product adaptation for
the customers of KFC Singapore.
CHAPTER 3: Conclusion
From opinion garnered from the sample, fast food meals were generally deemed unhealthy and
more than half of the survey respondents have instances of avoiding dining at KFC due to health
concerns. A low number of people patronize fast food restaurants due to the low cost of fast
food. This result poses a positive encouragement to the report purpose in exploring the
possibility of introducing healthier alternatives to fast food restaurants, as this healthier
alternative introduction may inevitably cause a rise in prices of the fast food. More than half of
the sample cited healthy quality as one of the top prioritized factors in selecting a place to dine
at. Besides that, the popularity of fast food chains stems from their convenience of access. Thus
there is a promising market for healthier alternatives introduction to fast food restaurants and can
prove to be an ideal distribution channel for healthier foods.

The change of a cooking oil to fit a healthier standard is a widely received option among the
consumers of fast food. A healthy blend of non-hydrogenated corn and soy oil can be used in
replacement of artery-clogging hydrogenated frying oil, in order to reduce risk of coronary heart
diseases. Fruits and vegetables, which are beneficial to physical and mental health, can be
introduced in the form of a salad. Another item that could be introduced to the menu would be
herbal tea, which is proven to reduce blood cholesterol levels, and at the same time popular
among Singaporeans.
Survey respondents said they would frequent KFC more often if there is introduction of a
healthier alternative. If KFC was able to meet the needs of the population by being socially
responsible, it will gain consumer’s trust and ultimately more profits. Introducing healthier
alternatives will allow KFC to do sustainable business in the long term basis.
CHAPTER 4: Recommendations
4.1 Revision of current menu
KFC can take steps to reduce the calorie and fat content of fast food in the existing menu.
Healthier alternatives such as grilled chicken with fewer calorie, fewer fat grams and less sodium
can be pushed out to the existing menu.
KFC could adopt a blend of non-hydrogenated corn and soy oil, in order to reduce the amount of
fat content in their food. KFC can subsequently market their food to consumers looking for a
healthier fare, thereby changing the ingrained perception of fast food being filled with fat.
However, this method of altering the method of cooking can be a capital-intensive investment,
requiring years of research and development before being able to perfect a healthier blend of
cooking oil. In addition, the new oil blend has to be tested with consumers before being officially
released for public consumption.
This is a time consuming and high monetary investment approach to making KFC’s food
healthier. Nevertheless, the benefits that it will bring are undeniable.
4.2 Additions of healthier alternatives
In light of the findings that consumers are willing to pay more for healthier alternatives in fast
food restaurants, it is recommended that fast food restaurants like KFC come up with healthier
alternatives as below.
Fast food meals should include more fruits and vegetables. Salads should be a choice for add-ons
and salad dressing should be with lower fat content. Burgers with lettuce or the likes should
increase the amount of it. There could be more Research & Development done to come up with
recipes that include fruits as they have high nutrition levels and low calorie content. Fruits and
vegetables contain essential vitamins, minerals, and fiber that may help protect you from chronic
diseases.
Cooking method is also an important factor affecting health quality of fast food. Frying always
translates into greater amount of oil. Boiled or baked food will be relatively healthier due to the
reduction in fat and sodium content. Although fast foods rarely boil anything, baked is a possible
option. Other than the popular existing Cheese Fries which is unhealthy as the fries are deep
fried before being garnished in high fat content mayonnaise and the likes, KFC can implement a
healthier alternative such as baked potato which can appeal to the health conscious crowd.
Instead of offering sugar-laden soda beverages with set meals, KFC can provide alternatives
such as fresh fruit juices. However it is recommended that what is offered is pure fruit juice since
a juice can come with very little actual fruit juice content as it is usually richly laden with sugar.
KFC in Asian regions can also test the markets by adapting and localizing their choice of
drink. Marketing department can explore the possibilities of pushing out Herbal tea as one of the
drinks option. Herbal teas contain properties that enable the detoxification of the body. They
help to eliminate toxins from the kidneys, liver and colon, very vital organs to our overall health.
Respondents from the sample felt that the “cooling effect” of herbal teas could offset, if not
reduce the unhealthy effects of consumption of deep fried food.
4.3 Marketing strategies
Along with the implementation of healthier alternatives and improved cooking methods,
consumers also need to gain awareness and recognition of KFC’s efforts to give consumers a
healthier dining experience. With proper marketing techniques, consumers can be educated on
KFC’s additional menu as well as their desire to look after the well being of its consumers.
KFC can choose to segment the consumer market such that they target consumers that go for
healthy fast food. KFC stand a chance to gain a larger market share using market segmenting
approach as they would have a competitive advantage in their hands. They could differentiate
products from the other global fast food chains by promoting their menu as being healthy.
KFC can provide customers with nutritional contents of each item on the menu. With the effect
of changes in preparation method, such as soy-based cooking oil, there will be a reduction in
calories and fat content. KFC can include a column, “improvements” in KFC’s nutritional guide
to show the changes in nutritional value of its menu after implementing healthy options. It gives
customers a sense of trust and awareness.
KFC can also aim to be awarded the “healthier choice label”. In this program initiated by the
Singapore National Heart Association, food products which meet nutritional guidelines for their
respective product category, that are lower in fat and sodium while higher in dietary fibre
compared with other food from the same group, can be recognized as a healthier choice. KFC’s
improvements and additional menu are potential food products for “healthier-choice” label in
comparison to other fast food chain. As this award is regulated by the ministry of health, it is a
reliable source of information that consumers will look out for when they want to choose a
healthier option.
Consumers are one of the important stakeholders of a company. By listening to feedbacks of
consumers, the company can gain insights into how a consumer feels about a certain food
product. KFC can allow consumers to participate in the decision-making of the company by
listening to feedbacks, and letting customers feel that they can have a say and make a difference.
However, for the feedback system to work out, KFC’s management team must be dedicated to
go the extra mile to serve the customers and take actions on valid feedbacks from the consumers.
APPENDIX A: Questionnaires
Thank you for taking the time to complete this survey by the business students of Ngee Ann
Polytechnic. Your feedback is important to us in evaluating consumers’ demand of healthier
alternatives in fast food restaurants.
This survey should only take about 5 minutes of your time. Your answers will be completely
anonymous. All survey results will be published in our business report.
If you have any questions about the survey, you may contact Angeline Leong at
this.is.angeline@gmail.com or call 97705544.
To complete this survey, please circle or tick the most applicable answer to you unless
otherwise stated so.
Age:____ Gender: M / F
1. What is the determining factor when you choose to dine in a restaurant? Please rank
the following from 1 – 6 in the manner of importance. (6 being the most important, and
1 being the least important)
___ Convenient location
___ Low prices
___ Taste
___ Speed and services
___ Wide menu selection
___ Healthy menu choices
2. How often do you go to fast food restaurants?
 Less than once a week

 Once a week
 A few times a week
 At least once a day
3. What is the main reason you would dine at fast food restaurants?
 Taste
 Low cost
 Convenient location
 Quick and short waiting time for food
 Others: _____________________________________
4. Have you ever avoided KFC due to the health concerns of the food served?
Yes No
5. How do you feel about the health quality (freshness of meat, amount of preservative,
nutrients info, fat content etc) of KFC’s food products?
 Very healthy
 Healthy
 Somewhat unhealthy
 Very unhealthy
6. Which of the following do you feel is the most serious health concern in fast food?
 Too oily
 Too much sodium
 High fat content
 High calorie content
 High in artificial flavors, colors and preservatives
 Other: ______________
 Do not feel any health concerns
7. How would you feel if KFC introduced healthier foods into its menu?
 I would definitely purchase it.

 I might purchase it.
 I would not purchase it.
 No opinion
8. Which of the following would you like to see in KFC to create a healthier menu? (You
may select more than one)
 Fruits as a side order
 Reducing salt in food
 Reducing fat content
 Using lean meat for chicken
 Less gravy and sauce
 More vegetables in burgers
 Grilled (instead of deep-fried) patties
 Using non-hydrogenated cooking oil for deep frying
 Changing cooking oil more often
 Serve ‘cooling tea’ to offset the unhealthiness of the meals
 Others: _________________________
9. How much more will you be willing to pay for a healthier meal?
 < $1
 $1-$2
 $3-$5
 >$5
 Not willing to pay for a healthier meal
10. How long more are you willing to wait for the healthier meal?
 < 5 minutes
 5-10 minutes
 10-15 minutes
 > 15 minutes
11. Are you willing to accept a change in the taste food if fast food is prepared in a healthier
way?
Yes No
12. Would you be more willing to frequent KFC more if it emphasized healthy eating?
Yes No
13. Are there any other ways can KFC improve their health standards?
Demographic Information
1. Healthy menu choices ranking
1 2 3 4 5 6
Teens 5 6 9 9 4 5
Adults 4 8 7 2 5 4
Elderly 0 1 2 2 5 20
Total 9 15 18 13 14 29
2. Frequency of going to fast food restaurant
< once/week Once/ week Few times/ week >= Once/day

Teens 19 10 8 0
Adults 16 8 5 1
Elderly 22 7 1 0
Total 57 25 14 1
3. Reason for dining at fast food restaurant
taste Cost convenience Quick and short

waiting time
Teens 14 3 9 10
Adults 10 2 5 13
Elderly 3 2 12 13
Total 27 7 26 36
4. Avoid KFC due to health concerns
Yes No
Teens 13 24
Adults 17 13
Elderly 25 5
Total 55 42
5. Health quality of KFC
Very unhealthy Healthy Somewhat unhealthy Very unhealthy

Teens 1 4 24 8
Adults 2 2 18 8
Elderly 0 2 10 18
Total 3 8 52 34
6. Most serious health concern
oily sodium Fat content High calorie Artificial flavour

Teens 8 4 9 2 3
Adults 1 3 10 5 2
Elderly 18 5 2 10 5
Total 27 12 21 17 10
7. If consumers will purchase healthier foods
Definitely buy Might buy Would not buy No opinion

Teens 9 25 3
Adults 9 16 3 2
Elderly 18 8 0 4
Total 36 49 6 6
8. What will you like to see in KFC menu? (Results arranged in a descending order for the
respective market segments)
Teens: change cook oil > reduce fat content>vegetables> fruits +/ reduce salt > lean meat> grill + /
non-hydrogenated cooking oils
Adults: change cook oil > fruits + /vegetables > reduce fat > non-hydrogenated cooking oil > lean
meat > reduce salt+/ grill patties > serve cooling tea
Elderly: reduce fat > non-hydrogenated cooking oil, >reduce fat > change cooking oil > serve cooling
tea> fruits as side order, use lean meat+ / less gravy > grill patties > more vegetables> use lean meat
9. Willingness to pay extra for healthier choice
<$1 $1-2 $3-5 >$5 Not willing

Teens 2 19 15 3 0
Adults 1 11 12 1 0
Elderly 8 12 10 0 0
Total 11 42 37 4 0
10. Willingness to wait
<5m 5-10m 10-15m >15m

Teens 12 20 5 1
Adults 14 9 2 0
Elderly 9 14 7 0
Total 35 43 14 1
11. Accept a change in taste of fast food
Yes No
Teens 34 3
Adults 27 3
Elderly 26 4
Total 87 10
12. Frequent more of KFC after introduction of healthier choice – (12)
Yes No
Teens 30 7
Adults 26 4
Elderly 24 6
Total 80 17
13. Any other ways KFC can improve?
Elderly: Middle-age
- Salad - Create new vegetable-based

- More fruits menu
- Use less oil - Less oil
- Less fried - Healthier food
- Use gloves
- More diverse choice of menu
References
Bruce, H. (n.d). Wendy's will be 1st fast foodie with healthier oil. USA Today. Retrieved from
EBSCOhost.
Burger King. (2011). BURGER KING® – Menu and Nutrition. Retrieved 24 May, 2011, from
BURGER KING® – HAVE IT YOUR WAY®: www.bk.com/en/us/menu-
nutrition/index.html
Clark, S. (2010, July 19). Why Does Fast Food Taste So Good? Retrieved from
http://www.physics.nus.edu.sg/~phytaysc/articles/queue.pdf
Eating at Fast-food Restaurants More than Twice Per Week is Associated with More Weight
Gain and Insulin Resistance in Otherwise Healthy Young Adults. (2004, December 30). NIH
News. Retrieved from http://www.nih.gov/news/pr/dec2004/nhlbi-30.htm
Fast Food Effects on Health. (n.d.). Retrieved from Health Food Guide website:
http://www.healthfood-guide.com/fastfood.aspx
Fast Food Facts. (n.d.). Retrieved from Center for Young Women’s Health website:
http://www.youngwomenshealth.org/fast_food.htm
Frying Oil Linked to High Blood Pressure. (2004). Environmental Nutrition, 27(1), 1. Retrieved
from EBSCOhost.
Fujita, H., & Yamagami, T. (2008). Efficacy and Safety of Chinese Black Tea (Pu-Ehr) Extract
in Healthy and Hypercholesterolemic Subjects. Annals of Nutrition & Metabolism, 53(1), 33-42.
doi:10.1159/000153006
KFC Singapore. (2011). KFC Cares Nutritional Table. Retrieved 24 May, 2011, from Welcome
to KFC: http://www.kfc.com.sg/cares-nutrition-table.php
Low, S., Chin, M. C., & Yap, M. D. (2009). Review on Epidemic of Obesity. Academy of Medicine
Singapore, 38(1), Retrieved from http://www.annals.edu.sg/pdf/38volno1jan2009/v38n1p57.pdf
Polidori, M., Praticóc, D., Mangialasche, F., Mariani, E., Aust, O., Anlasik, T., & ... Nelles, G.
(2009). High Fruit and Vegetable Intake is Positively Correlated with Antioxidant Status and
Cognitive Performance in Healthy Subjects. Journal of Alzheimer's Disease, 17(4), 921-927.
doi:10.3233/JAD-2009-1114
Schlosser, Eric. (2001, January 17). Why McDonald's Fries Taste So Good. Retrieved from
http://www.rense.com/general7/whyy.htm
Schlosser, E. (2001). Fast food nation: The dark side of the all-American meal. Boston: Houghton
Mifflin.
You want flies with that? McDonald's Happy Meal shows no sign of decomposing after SIX
MONTHS.(2010, October 21). Mail Online. Retrieved from
http://www.dailymail.co.uk/news/article-1 319562/McDonalds-Happy-Meal-bought-Sally-
Davies-shows-sign-mould-6-months.html
Zhang, L. F., Ng, W. W., & Tay, S. C. (n.d.). DISCRETE–EVENT SIMULATION OF

QUEUING SYSTEMS, Retrieved from http://www.physics.nus.edu.sg/~phytaysc/articles/queue.pdf

Examination of Consumption Habits of Fast Food Patrons in Singapore

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2011

Mr Jamaludin bin Muhammed Ali

Chief Executive Officer

Mr Jamaludin bin Muhammed Ali

Chief Executive Officer

Chan Yong Ming

Tan Fang Xian

International Business / Year 2 / TZ01

Ngee Ann Polytechnic

535, Clementi Road, S599489

CHAPTER 1: Introduction …………………………………………………… 1

CHAPTER 2: Findings and Analysis …………………………..…………….. 4

2.1: Public’s view about fast food …………………………………. 4

2.1.1 Trend of fast food consumption ………………………. 4

2.1.2 Public opinion ………………………………………… 5

2.1.3 Health concern in KFC meals ………………………… 6

2.1.4 Consequences of unhealthy fast food …………………. 7

2.1.5 Evidence of unhealthy fast food ……………………… 7

2.2: Factors for dining at fast food restaurants …………………….. 8

2.2.1 Quick and short waiting time …………………………. 9

2.2.2 Good taste of fast food ………………………………. 10

2.2.3 Low cost ……………………………………………… 11

2.3: Consumer demand for healthier alternatives ………………...... 12

2.3.1 Public’s high importance on food health quality …….. 12

2.3.2 Effect of unexpected situational factors ……………… 13

2.4: Tradeoffs consumers are willing to give up for healthier food .. 14

2.4.1 Willingness to pay more for healthier food …………… 14

2.4.2 Willingness to wait ……………………………………. 15

2.4.3 Acceptance of change in food taste ………………….. 16

2.4.4 Frequency of KFC after introduction of healthier food .. 17

2.5: Evaluation of healthier alternatives ……………………………. 17

2.5.1 Change in cooking oil …………………………………. 17

2.5.2 Addition of fruits and vegetables to the menu ………… 19

2.5.3 Herbal Tea ……………………………………………. 19

CHAPTER 4: Recommendations …………………………………………….. 21

4.1 Revision of current menu ……………………………………… 21

4.2 Addition of healthier alternatives ……………………………… 22

4.3 Marketing strategies ……………………………………………. 23

APPENDIX A: Questionnaires …………………………………………………. 25

APPENDIX B: Demographic information …………………………………….. 28

face interviews conducted at Bishan Junction 8, as well as a plethora of secondary resources

inclusive of published academic journals, online books and newspaper articles.

well as language barriers.

second most common cause of death in Singapore.

food restaurants to increase its profitability despite the increase in cost.

increasing their profit margins.

strategies to improve branding and profitability for the company.

online books, and university articles.

collected through face to face surveys and personal interviews.

attached in the Appendix.

rather than practical reality.

Structured response questions

amongst the choices provided in the questionnaire.

“unhealthy” in another individuals’ opinion.

Asian and Pacific Affairs.

CHAPTER 2: Findings and Analysis

2.1 Public’s view about fast food

2.1.1 Trend of Fast Food Consumption

obese. (Low, et al., 2009)

consumption has on the human body.

· 2.1.2 Public Opinion

Opinion of health quality of KFC's food

high calorie and fat content, lastly high sodium content.