Econs Group Project TC09 Group 2 (Fast Food Restaurants In Singapore) by Daniel Tan https://padlet.com/tandaniel449/c15qt3c5jhj98pht (1) Daniel Tan, (2) Ackley Tan, (3) Tse Ming Hon, (4) Sri, (5) Deva Darshini en-us 2021-05-09 14:36:54 UTC 2021-08-07 13:03:33 UTC hello@padlet.com STAGE 1 MICROECONOMICS PRELIMINARY ANALYSIS tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1506485731 2021-05-09 14:39:22 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1506485731 1. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1506514443 Singaporeans like to eat and enjoy fast food]]> 2021-05-09 15:04:29 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1506514443 Reflection (Daniel Tan) tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1512558988 Thank you for being in this group project with me. I want to say that this group project is manageable even though we did the project ourselves.

One way to improve is by having more project meet ups regularly so that we can discuss on the group project itself before working on it. This way, it will help the group members to do better.]]> 2021-05-11 08:48:20 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1512558988 Microeconomics Preliminary Analysis (Based on the key sources of information) tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526912201 1. Market structure of the Fast Food industry – Monopolistic Competition (Ackley)
Support from key sources:
- Production differentiation such as different services and physical differences are widely practiced.
- E.g. McDonalds mainly sells burgers, has most outlets 24 hours open, and has their own delivery services which is more appealing to consumers due to its convenience. On the contrary, Subway sells sandwiches, closes at 11pm and does not have their own delivery services.
- The 1st key source shows that McDonald’s dominate the fast-food industry as seen from its 40% market share in Singapore compared to Long John’s Silver which has 2%.

2. Demand and Supply Determinants of Fast Food Industry (Sri and Daniel)
Support from Key Sources:
- The overall fast food industry showed that there was a 10% decrease in Sales from 2000 to 2018
- A number of fast food chains have expanded the sales by 29% due to the demand of the fast food and accessible locations.
- Sales on the food and beverages raised by 3.6% in August 2019 and that led to the increase in sales value eg. SG$884 million in August 2018 to SG$916 million in August 2019 due to the consumption of Fast Food such as taste and quality.

3. Price elasticity of demand for fast food (Deva Darshini and Ming Hon)
Support from Key Sources:
- In Singapore, the demand for fast food might be slightly elastic as people in Singapore tend to consume food from hawker centres more frequently rather than from fast food restaurants. As such, if the price of fast food increases, Singaporeans might lean towards getting their meals from hawker centres and other dining areas instead of continuing to order from fast food restaurants. According to data from a research website (Refer to Key Source 4), Hawker centres are a popular dining venue with 61.1% of respondents usually eating at least one of the three main meals per day at hawker centres. In contrast only 1.9% of participants usually ate at least 1 meal at fast-food restaurants on a daily basis. Workplace and school canteens were also common dining venues with 20.4% of the participants typically eating at these venues for at least one meal. As such, if the price of fast food does increase, Singaporeans might get their food from other places instead such as hawker centres.

4. Determinants of price elasticity of demand for fast food (Deva Darshini and Ming Hon)
Support from Key Sources:
- (necessity vs luxury) Food is a necessity that people will spend their money on no matter what, and fast food is a cheap way to acquire such food compared to high quality and expensive meals in restaurants. Increasing the prices of fast food will most likely cause the demand of fast food to be price inelastic as food is a necessity and fast food would still be an inexpensive alternative to get food regardless of its price changes.
- (proportion of income & availability of substitutes) Increasing the price of fast food will most likely cause the demand to be price inelastic as it is still an affordable option of food consumption that does not take up much of a household’s income. Researchers found that fast food consumption was related to opportunity costs of the household.  They observed that preparing ethnic foods has a relatively high time-cost so households still preferred consuming fast food despite possible price increases since substitutes and alternatives (e.g. ethic foods) are more expensive.
- (habit) Fast food has highly concentrated amounts of salt and spices that makes the food savoury and addictive. As such, many people enjoy consuming fast food such as burgers and fries, and will most likely continue to do so even if prices increase. According to the Health Line, fast food is addictive as it is delicious and releases chemicals in the body when consumed. These chemicals then get interpreted by the brain as pleasure and satisfaction, encouraging consumers to eat more. As such, people will most likely still consume fast food even if prices increase.
- (time period) Increasing fast food prices over time will most likely only have a small impact on price elasticity of demand for fast food. Boston magazine states that raising prices on unhealthy products such as soda and fast food seems to influence behavior, but not as dramatically. Each 10% increase the results in an estimated 7% drop in the consumption of soft drinks and a 3% drop in fast food consumption.]]> 2021-05-15 10:28:05 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526912201 2.Key Info Source https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526919099 There has been a 10% sales growth of fast food in Singapore]]> 2021-05-15 10:37:31 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526919099 Reflection (Sri) https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526937679 Thank you for being really patient with me and working this together. Honestly working with you guys have been fun. It was rough at times but we all managed to get through it somehow.

One area we can improve is that discussing beforehand so that the quality of the analysis would be more clear.]]> 2021-05-15 11:03:55 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1526937679 Additional References for Presentation tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1527785617 1. How Food Addiction Works (and What to Do About It)
https://www.healthline.com/nutrition/how-food-addiction-works

2. Market value of the fast food industry in Singapore from 2013 to 2017 https://www.statista.com/statistics/724864/market-value-of-the-fast-food-industry-in-singapore/

3. Determinants of Fast Food Consumption
https://www.researchgate.net/publication/23520994_DETERMINANTS_OF_FAST_FOOD_CONSUMPTION

4. When is food a luxury?
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.575.242&rep=rep1&type=pdf
]]> 2021-05-16 04:03:42 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1527785617 4. Key info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1527963180 Determinants of eating at local and western fast-food venues in an urban Asian population]]> 2021-05-16 06:49:31 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1527963180 Reflection (Ackley) atyh2004 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1529992150 Thanks everyone for being so participative in this group. Even though we may disagree at times I'm glad it all worked out fine.

We could probably improve by planning out our meetings and respective tasks earlier so we don't have to rush last minute]]> 2021-05-17 05:40:32 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1529992150 5. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1530106533 This Is How Food Pricing Affects What You Eat]]> 2021-05-17 06:28:38 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1530106533 Reflection (Ming Hon) tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531158343 Thank you everyone for taking the time to finish your parts on the project and for taking the initiative to get everyone to start on the work. Even though we may have had disagreements and issues along the way, everything worked out fine and we still managed to help each other finish the industry analysis.

One area of improvement could possibly be to discuss beforehand and reaching a consensus before starting on our own, as this would then curb possible collisions of ideas etc.]]> 2021-05-17 13:26:31 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531158343 Reflection (Darshini) tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531173731 Thank you everyone for being my teammates and completing the project together with me. It was really fun working with you all and I could not have asked for better teammates. 

One area of improvement is that maybe before working on our different parts for the project, we can make sure that we know exactly what to do. If we are unsure, we should ask each other and clarify our doubts. That way, we will then be able to finish our parts quickly and efficiently and not make any unnecessary errors.]]> 2021-05-17 13:29:40 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531173731 3. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531845242 Fast food industry in Singapore braves slump]]> 2021-05-17 15:44:37 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1531845242 Tutor's Comments: NAJ1 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1561109949 1. Good choice of specific articles on fast food although some of them are outdated
2. Good observations and applications of key microeconomic concepts to fast food industry in Singapore. 
3. Your analysis on price elasticity of demand for fast in general was done well. 
4. Honest reflections on group dynamics and how to be more focused and get things done. As this is a group project, you will have to meet more often to discuss, agree and write your analysis.

Areas for Improvements:
1. The group needs to articulate clear determinants of demand instead of reporting sales figures. This may include, affordability, convenience, fast-phased  life-style, taste and preference, etc.
2. Similarly, you will have to discuss the determinants of supply too.
3. The cost of operation (production cost) is on the rise against the backdrop of Covid-19 restrictions with the falling sales.
4. The impact of Covid-19 on the demand for fast food could have been mentioned too. 

Having said that, you have made a reasonable good attempt to analyze the industry. Going forward, you will have to beef up your analysis to make it more comprehensive. 

All the best as you begin your stage 2 analysis.

Cheers!
Josh Nathan ]]> 2021-05-26 12:27:40 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1561109949 STAGE 2 MACROECONOMICS PRELIMINARY ANALYSIS tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1565081469 2021-05-27 13:32:33 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1565081469 1. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568625347 Singapore maintains 2021 GDP forecast as economy contracts 5.4% last year, less than advance estimates]]> 2021-05-28 14:26:44 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568625347 2. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568628029 Singapore Economy Statistics (GDP)]]> 2021-05-28 14:27:34 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568628029 3. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568632364 No takers for 1,000 F&B jobs, says restaurant association]]> 2021-05-28 14:28:50 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568632364 4. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568649524 2021-05-28 14:34:09 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568649524 5. Key Info Source tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568650712 Construction, F&B services in Singapore see biggest employment declines in Q2]]> 2021-05-28 14:34:31 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568650712 Additional References for Presentation tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568653394 1. Outlook for the Singapore F&B Industry
https://bizbeat.nus.edu.sg/thought-leadership/article/outlook-for-the-singapore-fb-industry/

2. Singapore Consumer Price Index
https://www.singstat.gov.sg/-/media/files/news/cpi-jul-dec2020.pdf

3. Singapore Manufactured Product Price Index
https://www.singstat.gov.sg/-/media/files/publications/economy/smppiapr21.pdf

3. Singapore's youth unemployment rate higher in 2020 compared to previous economic downturns
https://www.todayonline.com/singapore/singapores-youth-unemployment-rate-higher-2020-compared-previous-economic-downturns

4. Singapore Department Statistics
https://www.singstat.gov.sg/]]> 2021-05-28 14:35:24 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568653394 Macroeconomics Preliminary Analysis (Based on the key sources of information) tandaniel449 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568660680 1. GDP (Deva Darshini and Ming Hon)
Positive prediction in real GDP: market value of the food and beverage industry should slowly increase as the nation combats Covid-19
- Singapore’s real GDP growth forecast for 2021 is an improvement of between 4% to 6%.
- Despite the current pandemic, Singapore decided to maintain and follow through with the forecast implemented.
- Even though Covid-19 has caused a huge decline in sales of goods and service-providing industries such as the fast food industry, there have been developments in the economic environment to maintain the 2021 forecast range.
- Such developments include further progress in the development and deployment of COVID-19 vaccines. This has then resulted in the faster return of pre-Covid times, allowing fast food restaurants to open fully and cater to customers easily once again.
- According to Singapore’s GDP in 2020,  only 1.2% of contributions were made by the food and beverage industry (including fast food restaurants).
- Developments in the fast food industry include strengthening their food delivery sectors to allow customers to still get their food while at home and this will help contribute to 2021’s GDP.
- However, the overall GDP might not be as high. Based on 2020’s GDP, the main contributors to the GDP are manufacturing and trading industries (21.5% and 15.8%). As such, with the current pandemic causing the closure of borders, trade imports and exports will be greatly reduced so this will explain the low increase in GDP.
In the fast food and industry,
- Likely increase in consumption due to more stable food delivery options.
- Likely increase in consumption due to strong demand from customers that are stuck at home.

2. General Price Trends In Singapore (Ackley)
Falling prices observed in Singapore, with SG’s CPI falling by 0.2% in 2020, a reversal to the 0.6% increase In 2019.
- Falling sales mentioned, caused by the dampening of demand-pull inflation.
- However, the Singapore Manufactured Product Price Index rose 8.8% from April 2020 – April 2021

3. Labour Market Situation (Sri and Daniel)
Increasing unemployment and the F&B industry was atrocious
- The F&B industry was the bad hit by the COVID19 pandemic and letting go of the staff to survive the F&B businesses which is quite challenging for everyone despite this pandemic.
- The food and beverage services saw the decrease of 22900 workers. Also, the food and beverage services industry is expected to see the significant monthly wage declines because of a fall in the working hours.
- When economy reopened with the resumption of dine-ins after the circuit breaker period of the COVID19 outbreak, a lot of F&B operators found themselves struggling with the labour crunch.
- In F&B business, all the jobs were never interesting to the Singaporeans due to the long working hours and shift work requirements. This can cause unemployment to be rising as well as lack of manpower of the F&B jobs in Singapore.
- F&B operators are looking at how to minimize manpower needs through digitalization and revamping work processes. Still, they are simplifying the process and automation which can only go so far as the F&B industry remains a service-oriented industry.
- The unemployment rate for youths was 10.6 per cent in 2020 due to COVID19 pandemic in Singapore.
- Due to the difficult COVID19 pandemic in 2020, all the young persons (including teenagers and youths) found it hard to find part time and temporary jobs such as food and beverage (including fast food) industry in Singapore while or before studying in schools.]]> 2021-05-28 14:37:51 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1568660680 4. Key Info Source ssri5154 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1622900288 Singapore's sharpest fall in employment in more than 20 years borne by non-resident workers.]]> 2021-06-24 03:54:46 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1622900288 Tutor's Comments: NAJ1 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1650449388 1. Good attempt has been made to narrow the focus of your analysis to the Fast Food industry.
2. You could give examples of companies in the industry and describe how they coped with the lockdown and other restrictive measures.

3. Other things to discuss include contributions made by the fast food industry to the overall economy, and how the support measures given by the government helped the fast food industry.

4. Condense the main points from your micro and macro analysis and prepare your PowerPoint slides for the presentation. 

Cheers!
Josh Nathan

]]> 2021-07-15 02:53:52 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1650449388 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1658093117 2021-07-22 07:33:00 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1658093117 https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1658094643 2021-07-22 07:35:06 UTC https://padlet.com/tandaniel449/c15qt3c5jhj98pht/wish/1658094643