Most of the companies face the following problems:
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Low customer response

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Placement problems – not strategically placed

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Competitors


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menu differentiation

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Little campaigns/deals/advertising

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Parking space – sometimes in most of the fast foods people do not find a suitable
parking space in the block, which turns away potential customers

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Foreign companies' repute

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Uncomfortable décorProblems

 Lets apply the simple and well known 7Ps of marketing here. Because the fast food units provide Goods as well as Services therefore the 4Ps related to Goods namely: Product, Price, Place and Promotion, as well as the 3Ps related to the Services namely: People, Physical evidence and Processes, can be used to explain your idea appropriately and easily. Now lets see the challenges faced by them in the 7Ps.

• Product: The deals offered by them and differentiation of the deals from competitors in respect of taste and hygiene etc


• Price: The prices of the different deals, the value of deals against the prices and the competitors' rates


• Place: The location of the fast food units including the space, experience, environment and surroundings. And the convenience with respect of the parking lots also matters


• Promotion: The fast foods get promoted more by their image and hence the words of mouth. The advertisement doesn't matter that much for regular clientage


• People: As the filling of the orders of the customers is done by people therefore the importance of the people is very high like the service industries. The efficiency, behaviour and attitude of the waiters and other staff in direct contact matters much.


• Physical Evidence: The physical evidence includes the building and environment of the units, They also include gifts which well known chains like McDonalds offer. Processes: The customer will be pleased to see the deals prepared in front of them and they will be aware of the hygiene related aspects.

In all the above areas the fast food units face competition and challenges as we have tried to understand above.