• It also assumes easy or low entry and exit to this market industry.
• Products and services are differentiated, thus higher market power than perfect competition.

• Firstly, fast food restaurants can be differentiated by their location. 
• Many of the fast-food restaurants can be found almost everywhere in Singapore, especially in shopping malls where it gathers most consumers. Fast food restaurants such as McDonald's and KFC can be seen at almost every corner of Singapore as they are one of the major players in the industry, which is also very convenient for consumers. This easily attracts consumers as it is evenly scattered across Singapore and can result in long queues almost every day. However, there are also fast-food restaurants that are located in neighboring districts that are away from their competitors. An example of this would be Subway. Subway has outlets that are located at markets, shophouses, and even train stations. Take Lakeside MRT and Bukit Batok MRT for example, Subway is there for consumers who may be rushing or getting home late. This appeals to consumers because it is very convenient and close to where they are staying.
• Secondly, fast food restaurants can also be differentiated by their services.
• The majority of fast-food restaurants serve their consumers with convenience and comfort, but some firms differentiate themselves by providing more than just that. Looking at Mcdonald's, Mcdonald’s is differentiated from their competitors in terms of services as more than 36% of their outlets operate 24/7 or 57 outlets that are operating 24/7. This unique selling point cannot be found in the majority of the fast-food chains. This gives consumers an option to purchase from Mcdonald which makes them the choice that consumers pick. 
• Also, fast food restaurants can be differentiated by their physical differences, which appeal to different customer groups.
• A good example of this could be Burger King where their burger buns come in an exotic color like black. The bun is very unique and different from the typical brown bun, so consumers will be attracted to it. They differentiate themselves from other fast-food restaurants by promoting their burgers with black buns to capture the attention of an adventurous group of customers.
• Fast food restaurants can also gain market power through the use of product images to make their product different. 
• A&W stands out from its competitors by branding their draft root beer, root beer floats unlike most of the fast-food chains which normally sell standardized drinks like soft drinks, coffee, and tea. Additionally, the A&W brand itself is a hip nostalgia brand that is different from how other fast-food restaurants brand themselves which is very modern. Product image can also be perceived through their advertisements where advertising can improve the product image of the fast-food company and stand out from their competitors. This includes being creative and understanding how the customer's mind works.
• Another example would be Mcdonald’s collaborating with BTS and coming out with BTS meals. With the help of this BTS meal, consumers are paying 9 times more just for the packaging. This skyrocketed Mcdonald’s sales and thus, stands out from their competitors.

• What is the number of players in this monopolistic competition of the fast-food industry?
• What is the evidence to support the easy entry and exit in this industry?
• To find out more sources of evidence to prove the differentiation between the fast-food companies which allows more price inelastic.

• In addition to long lines at new outlets, fast food chains frequently introduce new flavors and sell out in a matter of weeks, like McDonald's Nasi Lemak Burger.
• In 2016, fast food outlets in Singapore generated a total of approximately S$1.1 billion in operating receipts, according to the latest statistics from the Department of Statistics (SingStat).
• Despite bucking the overall trend in the food and beverage (F&B) industry, Singaporeans' apparently insatiable appetite for fast food has helped support this sector. 
• In the entire F&B industry, sales have decreased by 10 percent from 2000 to 2018. The fast-food chains, on the other hand, have seen a 29 percent increase in sales. 
• Why fast-food chains have an edge over restaurants:
  • Convenience and quick service
  • Affordable prices
  • Accessible locations
  • Assembly line model which helps to keep costs low
  • Successful and targeted marketing. “(McDonald’s) Happy Meal is one example. The culture already ingrained is that McDonald’s is a part of your life… It’s nostalgic to a lot of Singaporeans growing up,” said F&B consultant and branding specialist Derrick Chew.

• How much has it increased in terms of revenue?
• Why there has been/what has caused an increase in the number of people buying fast food

• Fast-food companies are doing better due to lower prices and marketing campaigns. Food trends are also more easily adapted by the industry.
• Sales are up due to a combination of new products and higher productivity, which decreases costs and improves efficiency, in addition to the introduction of new products.
• Many brands, including McDonald's and Popeyes, as well as BurgerUp, have invested in technology to streamline services and reduce dependence on staff, including self-ordering food kiosks.
• BurgerUp offers burger customization, so having an ordering kiosk is essential so diners can customize their meals without hogging the counter. As a result, 20 percent of the manpower has been saved.
• According to a Burger King spokesman, a similar system will be introduced. Texas Chicken is also considering the possibility. These technologies have been linked with increased sales. Mr. Dickson Low, chief operating officer of Revenue Valley Group, which operates the Popeyes restaurant chain in Singapore, noted that customers are ordering side dishes and receiving larger portions.
• Possibly, this is because they can view images of all the items on the menu on the self-ordering kiosks. There is a 15 percent increase in add-on and top-up orders at restaurants with self-ordering kiosks than at restaurants without them."

• Despite the 5% increase in salary price, the quantity of workers is not increasing much, as proven within the source, as many more restaurants are understaffed by 20% to 30%. (high demand, low supply, inelastic)
• Led to restaurants turning to operate on a smaller scale & using technology to gain revenue.

• 40% increase in prices due to shortage in supply while demand has increased
• Lower production rates with the increase of 24-25RS per kg and 30-35 per kg at retail. Prices are unlikely to drop till November due to high demand & alternatives to vegetables

• According to the research shown above under market structure, we came to a conclusion that the fast-food market is “ Monopolistic Competition”. This shows us that the degree of market power is at the second-lowest compared to the four market structures.
• Market power shows the ability of an industry to increase and maintain its prices high while retaining market share.
• This suggests that since the degree of market power is low, the market of the fast-food industry is elastic as they do not have the power to charge and maintain a high price while making it profitable at the same time.

• Has any fast-food chain in Singapore been affected by the elasticity of the market?

• To find out the price elasticity of fast-food chains, we are going to use the factors affecting price elasticity of demand which are the determinants (N.P.H.A.T) that will influence whether fast-food chains are price elastic or inelastic.
• The first determinant is Necessity vs. Luxury (N), where it can be both a necessity and luxury in different contexts. In developing countries, fast food can be seen as a luxury as consumers are spending more to eat at fast-food restaurants rather than a normal food stall. However, in the Singapore context, fast food can be seen as a necessity as consumers opt for fast food options as it is affordable and convenient. As it is seen as a necessity, we can say that demand for necessities is price inelastic.
• The second determinant is Habits (H). Singaporeans have a high eating-out frequency of 77.3% where they usually eat either dinner, lunch, or breakfast at eateries such as fast-food restaurants. This results in people having a habitual eating pattern at fast-food chains because many people chose to eat there as it offers cheap and fast alternatives compared to restaurants. Thus if the prices were to be raised, the demand for products will drop and they would lose customers as they defeated one of the main purposes of the fast-food industry, which is offering cheap and affordable food, people would not want to spend more and will instead shift to alternatives, making the demand price elastic.
• The third determinant is the availability of substitutes(A). Within Singapore there are around 600 fast-food chains, indicating that there is an abundant amount of alternatives if some of the fast-food chains were to close down. For example, Even if Mcdonald's were to close down completely, there would still be alternatives such as Burger King, A&W, and many more. This would mean that the demand is price elastic. 

• GDP measures the market value of all final goods and services produced in the economy during a calendar year. 
• The overall GDP of Singapore decreased from the years 2019 to 2020 by an estimated 41,642mil, along with the Food & Beverage's GDP decreasing by an estimated 1,386mil. This decrease can be due to Covid-19 outbreaks restrictions and the closing of borders.
• Based on Key Source 1, in 2020, the real GDP value of Singapore's economy and the food and beverage industry decreased to -5.4% and -25.1% respectively. 
• The majority of the industries’ GDP value decreased due to the Covid-19 outbreak. Tourists are unable to visit Singapore and therefore, there is a dip in most industries such as the Food and Beverage businesses.
• Also with the ever-changing Covid-19 situation, Singaporeans are unable to dine in restaurants due to the strict measures imposed by the government. Thus, there is a fall for the 3rd quarter of 2020 (3Q20) and the 4th quarter of 2020 (4Q20) of 24.1% and 19% respectively. 
• With the restrictions slowly easing, the sales volumes are slowly increasing as more Singaporeans choose to dine-in at restaurants, leading to a huge jump of 36.9% growth rate in Singapore’s economy. 
• The high increase in the percentage is calculated from a low base due to the fall in the growth rate last year.
• In conclusion, the GDP of the fast-food industry changes seasonally due to covid-19 restrictions. There is an increase in its GDP when restrictions on dining locations are lifted and measures are looser. On the other hand, when there are more restrictions and no dine-in allowed, there is a slight drop in its overall GDP. 
• The increase in GDP level was highly dependant on the Covid-19 situation in Singapore. The stricter the Covid-19 restrictions on the F&B industry, the lower the GDP level.

• 73% increase in delivered meals during the circuit breaker period.
• The high demand for food deliveries is due to its extreme convenience, a wide variety of options, and speedy deliveries.
• Demand for food delivery increases the sales and thus, the GDP level for the fast-food industry increases too. 

• The labour market in Singapore performed better in 3Q 2021 than in 2Q 2021 when tighter COVID-19 restrictions temporarily affected demand for some sectors
• Total employment declined at a significantly slower pace, as resident employment increased strongly. The change was from -16,300 in the 2nd quarter to -2,400 in the third quarter
• This is supported by how resident employment grew more strongly in 3Q 2021, although total employment declined due to the fall in non-resident employment as COVID-19 was still impacting Migrant Domestic Workers in Singapore
• The unemployment rate also has a steady decline where the overall unemployment rate declined from (2.7%) in August 2021 and it was at a constant in September and October at (2.6%)
• There was a decline in the number of retrenchments and incidence in the 3Q 2021 (from 2,340 or 1.3 retrenched for every 1,000 employees to 1,900 or 1.1). Retrenchments declined throughout all industries, but primarily in Manufacturing and Services
  
  

• The total employment level in the third quarter of 2021 was led by outward-oriented sectors such as Information & Communications, Professional Services, and Financial Services, and growth has picked up pace from a quarter ago. Domestically Oriented sectors also fared better, with increases in Administrative & Support Services and Health & Social Services.
• In comparison, consumer and tourism-related sectors lagged behind, with muted resident declines in Food & Beverage Services and Arts, Entertainment & Recreation, while employment held steady in Accommodation and Retail Trade. With seasonal hiring for festivities and the easing of travel and dining restrictions, employment in these sectors is expected to rise in the coming months
• While resident employment contributed to the rise of the employment rate, the ongoing border restrictions contributed to the continued contraction of non-resident employment access in most industries. 
• The resident unemployment rate by age shows that the different age groups have a declining trend from September 2020 to September 2021 (Third Quarter). However, there was a sudden rise in the unemployment rate for the age group below 30 where it shifted from 5.1 in June 2021 to 6.1 in September 2021. 
• This is also supported by how Non-Tertiary students have a huge spike in the unemployment rate from 3.5 in June 2021 to 5.0 in September 2021. This suggests that there is an active job search going on for fresh graduates or students in both the age and education group, where they move from one job to another job to find what is suitable for them, exploring the different options available. This shows that it is most likely that this falls under frictional unemployment as frictional unemployment is caused by the normal search time required by workers with marketable skills who are changing jobs, initially entering the labor force, or reentering the labor force

• Inflation is defined as a sustained and continuous increase in the general (average) level of prices of goods and services in the economy. 
• Singapore's overall inflation rose to a more than eight-year high in October, which was mainly caused by higher car prices and housing rents. The core inflation is at its highest after three years.
• Overall inflation jumped to 3.2% on a year-on-year basis, up from 2.5% in September. 
• The uptick reflected stronger private transport and rental costs, in addition to the higher core inflation, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Tuesday (Nov 23).
• Core inflation climbed to 1.5% in October from 1.2% in September. The increase was due to rising services and food prices, and a smaller decline in the cost of retail and other goods.
• Food inflation edged up to 1.7%, compared to 1.6% in September, as raw food prices rose at a faster pace while the inflation of prepared meals remained broadly unchanged.
• Overall prices have generally risen in Singapore. From November 2020 to November 2021, the food industry consumer price index has increased by 1.4% using 2019 as the base year.
• Prices continued to rise for all components where fast food increased from 2.3% in October to 2.5% in November 2021.
• There has been a 49.6% increase in food prices since 2000 (or over the last 20 years). Thus, the cost of food and food-related services that were $1.00 in 2000, will be closer to $1.50 now.
• Breaking down on how different the prices have changed from individual food item:

• Thus, this will eventually lead to fast food restaurants buying their ingredients at a much on expensive price to produce their goods. This leads to fast food increasing by 35.7% since 2000

• The Government will increase support for F&B businesses under the Jobs Support Scheme (JSS) to 50%.
•  Co-chair of the COVID-19 multi-ministry task force Lawrence Wong said: “We realize that this will have significant inconvenience to many people, I think the businesses that will be hardest hit will be the F&B sector because of the restriction for dining-in.” 
• The Ministry of Health (MOH) said that the Government will increase the JSS support rate to 50% of the first S$4,600 of gross monthly wages paid to local employees for this period. 
• The JSS was first introduced in the Budget in February 2020, and it subsidized between 25% and 75% of wages for firms. 
• During his Budget speech earlier this year, Deputy Prime Minister Heng Swee Keat announced a fourth extension of the scheme, costing the Government another S$700 million.

Community Development Council (CDC) Vouchers Scheme

• Government to give out $100 digital vouchers to about a 1.3million Singapore households, which was launched on 13 December 2021. 
• This scheme helps to defray some daily expenses such as food and groceries. 
• This scheme helps to boost Singapore's economy as more Singaporeans will purchase from local hawkers and heartland merchants.
• Overall, this will have a positive impact on Singapore's economy, especially in regards to the Food and Beverages Industry.

• Due to the covid-19 pandemic, nightlife establishments such as nightclubs, pubs have been put to a halt to prevent gatherings and the spreading of viruses.
• The government decided to replace these nightlife establishments with F&B operations.
• This gave more opportunities and made way for more F&B operations to bloom despite the Covid-19 pandemic setback.

• Under the Rental Support Scheme, the Government will give an additional 4-week rental waiver for qualified renters on Government-owned commercial buildings, as well as an additional 2-week rental relief cash payout for qualifying tenants and owners of privately-owned commercial properties (RSS)
• The government will also encourage landlords of commercial premises to provide rental assistance to affected enterprises.
• If the landlord is a government agency, the restaurant's rental can be waivered for up to 2 months