Why American FastFood Franchises Should Be Kept Out Of the BVI
Instructions:-
105 Research Paper Guidelines
The 3000 word research paper will be due on July 21thth. The research presentation will be done on the November 30th and December 1st. Guidelines for the research presentation will be given to each student. The research paper will include
- A research proposal
- An outline of the research paper
- the 3000 word mla style research paper which includes a work cited page
- A survey of 10 questions completed by at least 50 people
- OR
- At least one interview
- Appendices (including survey and interview questions and results)
- An annotated bibliography
- all printed sources included in the work cited page
Guidelines
- The research paper must be in MLA format
- The research paper must be in toulmin style
- The topic must have been approved by the instructor
- It must have a work cited page with at least 6 sources (at least 4 from ebscohost, google scholar, jstor, or any other scholarly database)
- Each page must be numbered along with students last name
Credit must be given for information from any outside source used in the research paper (in text citations)
Solution
Why American Fast Food Franchises Should Be Kept Out Of the BVI
The Fast food industries is one of the fastest growing industries in the globe. Anchored in an industry which has a perennial demand, the global fast food industry has been on an aggressive expansion tirade, fuelled by an appetite for global expansion. The growth of the fast food industry has been driven by several factors, including the presence of a sustained demand and the growth in globalization, which has facilitated expansion into new market domains. These features have led to the rise of the global fast food giants such as McDonalds, KFC and Burger King, which have grown to dominate the fast food industry in virtually every corner of the globe. Many of these companies are American, and their expansion strategies are based on franchising agreements. This model is a very appealing one that allows these franchises to leverage factors such as their renowned brands and blend this with the local expertise of the franchisees with whom they team up. Some countries such as the British Virgin Islands, however, have rejected the overtures of these global franchises and denied them entry into their markets. There are valid reasons why the situation should be kept this way. The remarkable growth of these companies has been so dazzling, that it is often quite common to overlook the detrimental impacts that these companies pose. This paper looks into the terse relationship between the British Virgin Islands and American fast food franchises, and argues that these companies should continue to be locked out.
The British Virgin Islands is a set of Islands located in the Caribbean, and are a British overseas territory. The archipelago comprises of about 50 islands, covering an area of 150 square kilometers. The BVI has a population of about 28,000. The executive power in this region is vested in British law, and is exercised through a governor, appointed by the Queen. Over the years, the BVI has continually resisted attempts by American fast food franchises to make inroads into the territory. For instance, on Jan 5, 2012, Cromwell Smith, a talk show host, opined that KFC should not be allowed into the BVI since it would kill off local businesses. On her part, Sharon Flax-Mars, the director of tourism for the BVI, indicated that while the region was looking for investment opportunities, it was seeking those that would not interfere with the authentic local experience that the BVI had to offer, referring to franchises such as McDonald’s and Starbucks. An evaluation of the fast food industry reveals that indeed, these moves should be sustained.
Claim: American Fast Food Chains should be kept out of the BVI because they would result in more negative repercussions than benefits for the area.
Data1: Fast food chains have numerous detrimental outcomes which the BVI would be exposed to were it to allow them entry
Warrant1: Fast food franchises are responsible for negative outcomes which affect the society, economy and the environment. On society, fast food companies lead to such negative health outcomes as obesity and diabetes. On the economy, fast food companies have a negative effect on the local companies, since the entry of these products normally starves demand for those of local companies. Finally, fast food companies negatively affect the environment through pollution and unsustainable approaches in sourcing inputs as well as disposing waste.
Data 2: Fast foods contain a high level of calories, with inadequate information on the calorific intake
Warrant 2: Fast foods generally tend to be unhealthy in nature. These foods are highly processed, having all the nutritional value removed, and leaving behind an unhealthy residue for consumption. Zollinger (1), reports that foods served by fast food companies are rich in calories. What’s worse, there is a prevailing uncertainty over the number of calories consumed. Most people are not aware and consistently underestimate the number of calories that they consume in their food. The issue is further exacerbated by the extent of underestimation. A good majority of individuals underestimate their calorific intake by 175 calories on average, while about 25% of individuals underestimate their intake by an overwhelming 500 calories.
Data 3: American fast food franchises offer food at a cheaper price, which lures consumers to purchase these items.
Warrant 3: American fast food chains are able to leverage features such as their economies of scale and their brand names to bring down the price of their food offerings. When these prices are low, most consumers are unable to resist purchasing these items (Zollinger 1). In most cases, these purchases are usually much cheaper than healthier alternatives. Consequently, individuals are tempted to purchase even more. These enhances their risk of acquiring diseases.
Data 4: Fast foods lead to poor health outcomes
Warrant 4: Fast foods contain a high amount of calories. The accumulation of calories leads to obesity. The problem is made worse by the factor noted above whereby most people are unaware and consistently underestimate their calorific intake. Given that fast food companies do not typically label their foods to indicate the number of calories (Zollinger 1), then this threat would be carried over into the BVI. The specific health threats that would be introduced or would be worsened include diabetes and obesity.
Data 5: Increased competition leads to a decline in sales for existing companies.
Warrant 5: Competition usually has the detrimental effect of splitting up the market share that a particular existing enterprise currently enjoys. New entrants into a market compete to acquire a section of the market from those companies that are already established. The entry of American fast food franchises to the BVI would subject existing companies in the region to the same fate. For example Liburd (1), cites the instance of Juanito ‘Nito’ Rubaine, who was the pioneer of BVIs food vans. Nito indicates that with time, and as new competitors entered the market, he continued to experience a dip in the number of units sold, to the extent that he had to downscale on both quantity and variety.
Data 6: Fast food franchises negatively affect local businesses
Warrant 6: Fast food companies, particularly the global retail giants such as McDonald’s and KFC command a great following based merely on their brand names. Consequently, they draw consumers towards themselves and away from other businesses offering similar products or services. For instance, in the BVI, people frequently bring with them boxes of KFC after visiting the neighboring St. Thomas Islands. The effect on local businesses is that they would lack consumers and be driven out of business. Smith (1) contends that the entry of KFC would have a negative effect on local businesses, which would detrimentally impact on jobs, food, clothing and shelter. The realistic nature of this assertions is illustrated by the instance of Nito’s restaurant described above. The effects of the entry of American fast food franchise giants is likely to be even more pronounced, given that they are an already popular option.
Data 7: Fast food companies pay their workers poorly.
Warrant 7: Most fast food companies run a business model that is hinged on offering food at lower prices thus attracting the consumer. To price these products in this manner, these companies need to minimize their operating expenses. In most instances, it is the employees who bear the brunt, receiving a low amount of pay. According to Pugh (1), fast food workers are some of the lowest paid workers in America. They receive low pay and no benefits. Pugh cites the average worker as receiving $8.69 an hour. In addition to their poor pay, fast food workers do not also receive benefits. In effect, many rely on public assistance for their very survival.
Data 8: Fast food franchises contribute to environmental pollution through waste disposal
Warrant 8: One of the key approaches of fast food companies is to minimize on the costs of doing business. The fast food business involves vast amounts of packaging ranging from boxes, bags, wrappers, straws and Styrofoam. These different packaging materials are used for different purposes. Geer indicates that Fast food packaging comprises roughly 40 percent of all litter. The effect is that fast food franchises contribute to a significant amount of solid waste, whereby at the end of the day, these material is a waste disposal nightmare. Much of these packaging such as Styrofoam take extremely long to decay.
Data 9: Fast food companies are responsible for unethical business practices
Warrant 9: Many fast food companies are usually out to make a killing. One of the strategies used to achieve this goal is to minimize the costs of resource inputs. For example, as has already been noted, most fast food companies compensate their employees poorly. Many of these employees do not even receive benefits such as health benefits. Apart from the poor compensation practices, however, fast food companies are also responsible for unethical behaviors in the manner in which they source their produce. Geer (1) indicates that many of the products used in preparing fast food items are developed in factory farms. These factory farms are farms which are usually set up for the purposes of ensuring that these companies have the inputs they require in plentiful, regardless of the conditions under which these animals are reared. In fact, in most instances, these animals are deprived of their basic needs and instincts.
Data 10: Fast food companies further contribute to dismal environmental outcomes though pollution.
Warrant 10: Fast food companies are responsible for a significant amount of environmental pollution. This environmental pollution occurs in various forms. For starters, there is the environmental pollution that occurs during the production process. Here, there is pollution as the wheat to be used in production of buns is prepared, and the carbon footprint associated with the cow. Fast food restaurants have a high carbon footprint related to the process of sourcing inputs for their activities. Consequently, they contribute to environmental pollution, which further exacerbates the negative effects of packaging.
Data 11: Fast foods would aggravate the health problems in the BVI.
Warrant 11: Fast foods are associated with detrimental health outcomes, due to their unhealthy nature. The BVI already faces a health problem. According to Ronnie Skelton, BVI’s health minister, 38% of students within public health institutions are obese. The increase in obesity and obesity levels has been attributed to the entry of fast foods, most of which are fatty and sugary (BVI, 1). To curb the proliferation of these unhealthy outcomes, the minister has proposed the banning of fast food outlets within public schooling institutions. Some of the diseases and issues which the ministry targets to avert include diabetes, hypertension and cardiovascular disease, as well as cancer. Apart from the student population, there is also a need to protect the general BVI population. Health statistics on the general population indicate that 75% of the population of the BVI is overweight (BVI, 1). 75% represents a staggering proportion of the population. In light of the previously highlighted factors such as the popularity of American fast foods, their cheapness and the poor awareness of most individuals regarding their calorific intake, it is important to take measures that will reduce the chances and incidence of these diseases occurring,
Data 12: Fast food franchises would negatively affect the culture of the BVI.
Warrant 12: The BVI has a unique and vibrant food culture. This food culture is characterized by food vans, which Liburd (1) reports is a growing part of the archipelago’s social culture. The food vans are a popular cultural artefact to the British Virgin Islanders. The culture was introduced back in 1982. These food vans are not just food points. Rather, they are centers of confluence, with people frequently assembling around these points to hold conversations. Politicians, pastors, bankers, managers and other groups of professionals also frequent these locations for a variety of purposes, which include sharing and collecting opinions (Liburd 1). These locations may not offer the lowest prices for food, but they are important to the islanders. The entry of American food franchises would however scuttle the market for these food vans. This would eventually lead to the death of the food van culture and industry. Given the important cultural significance of these food vans, there is a need to preserve them. They cannot, however, be preserved in the presence of American fast food franchises which would harness their advantages to offer cheaper products and carve out a market space for themselves.
Counterclaim:
It is about time American fast food franchises were let into the BVI. Fast foods are not the only factor to blame for an increase in diseases attributable to obesity and being overweight. Even if they were, BVI already faces a threat based on these factor, yet American food franchises are not present there. Supporters of fast food companies and fast food companies themselves have often argued that fast food is in itself not to blame for the increases in obesity. Zollinger (1) reports that there is no direct link between fast food chains and obesity. Consequently, one may argue that it is ill advised to apply as a strategy, the prohibition of fast food chains since there is no actual link. Alternatively, one may also argue that currently, BVI already faces issues to do with obesity. These issues are present despite the fact that American fast food franchises are not currently operating in the BVI. As such, it is unfair to prohibit American fast food franchises. At the end of the day, consumers should be left to make a choice between the different alternatives available.
Apart from health, counterclaims may also be lodged against the effect on local businesses. American fast food chains should be allowed into the BVI, with market forces being left to dictate which businesses win a market share and which ones wind up their operations. There is no guarantee to indicate that American food franchises would automatically put existing companies out of business. Moreover, customers should be allowed to make their own decisions, and the government should not deny them the opportunity to access greater choice.
Rebuttal
The first counterclaim argues about the link between obesity and fast food franchises. It has been claimed that an actual link between the two does not exist. Despite the lack of a direct link between the two, fast foods have been identified as one of the drivers of obesity. Moreover, the recent surge in obesity has corresponded to the time that fast food restaurants have been on the rise. Moreover, individuals who take foods rich in fats and sugars are more prone to becoming obese and contracting lifestyle related diseases, including diabetes. For the second part of this counterclaim, it is true that the BVI has experienced higher rates of obesity. This, however, does not provide a license for the facilitation of American fast food franchises. The government is currently seeking measures to arrest the situation and reduce the rates of obesity by reducing the intake of fast foods. One of the measures that has been proposed to reduce obesity rates in school is to prohibit the sale of fast foods within these premises. As the government seeks to address obesity in schools, it would also like to address the rates of overweight in the general population. Consequently, it would be counterproductive to each of these health focus areas to then allow fast food franchises with a track record of accelerating obesity into the BVI.
The second area of counterclaim regards the impact of American fast food franchises on local businesses. This counterclaim argues that market forces should be allowed to dictate competition in the BVI. An analysis of the BVI market, as well as the practices of the American fast food chains, however, reveals that relying on market forces would disproportionately favor the American companies based primarily on the price factor. American fast food franchises are able to offer lower prices for their products due to their practices, some of which are questionable. For starters, these companies enjoy economies of scale associated with their multinational status. Secondly, some of their practices such as factory farming, and assembly lines (Geer 1) raise ethical questions about the manner in which they treat animals. Thirdly, there is also the issue of worker wages. American fast food companies have been implicated as paying meagre wages to their employees. These are some of the considerations that must be made before thinking about issues regarding market forces and fair competition.
The entry of competition has already been shown to have significant detrimental outcomes for already existing enterprises. Given the low pricing capabilities of American fast food franchises, there is a need to take measures that will mitigate the likely dominance of American fast food companies. Finally, it is also true that customers should be allowed to make their own decisions. Nonetheless, the government has a right to protect them from what it believes are obvious threats. For example, it has been noted that fast foods contribute to obesity. The situation is further compounded by the fact that most people tend to underestimate the actual amount of calories that they take in. Since most companies are not actually responsible or accountable enough to report the calorific content of their offerings, the government should step in to protect them. The prohibition of American franchises would also be targeted at more than just economic conservation, and towards cultural conservation. In this case, the government would be seeking to protect the food vans
Conclusion
The fast food industry
is one of the most significant industries globally. It is dominated by American
fast food giants, which have, however, yet to reach the BVI, due to government
prohibition. This paper has argued that government action against the entry of
American retail giants should be sustained. Allowing the entry of American fast
food retail giants would lead to serious detrimental outcomes on BVI. For
starters, the move would lead to the deterioration of health outcomes, which
are already bad. The move would also negatively affect local businesses as well
as the local culture. Finally, there are also negative outcomes on the
environment and nature. The only way to avert these negative outcomes is to
continue barring these franchises from the BVI.
Works Cited
Geer, Abigail. “10 Ways Fast Food is Destroying the World.” One Green Planet. N.p., 01 Dec. 2015. Web. 20 July 2017. http://www.onegreenplanet.org/animalsandnature/10-ways-fast-food-is-destroying-the-world/
BVI News Online. “Be proud of barring fast-food chains!” BVI News Online, Jan. 30 2014. Web. 20 July 2017. http://bvinews.com/new/students-are-too-fat-skelton-wants-ban-on-unhealthy-foods-entering-public-schools/
BVI News Online. “Students are too fat – Skelton wants ban on unhealthy foods entering public schools.” BVI News Online, Feb. 12 2015. Web. 20 July 2017. http://bvinews.com/new/be-proud-of-barring-fast-food-chains/
BVI News Online. “We need investment but not McDonald’s – Tourism Director.” BVI News Online, Jun. 4 2015. Web. 20 July 2017. http://bvinews.com/new/we-need-investment-but-not-mcdonalds-tourism-director/
Liburd, Javon. “Food Vans–Growing Part of BVI’s Social Culture.” Virgin Islands Platinum News. May 30 2017. Web. 20 July 2017. http://www.bviplatinum.com/news.php?articleId=27234
“US fast food franchise would kill local businesses – Cromwell Smith.” Virgin Islands News Online. 07 Jan. 2012. Web. 20 July 2017. http://www.virginislandsnewsonline.com/en/news/us-fast-food-franchise-would-kill-local-businesses-cromwell-smith
Zollinger-Read, Paul. “Is it time fast food restaurants became more responsible?” The Guardian. Guardian News and Media, 05 July 2013. Web. 20 July 2017. https://www.theguardian.com/sustainable-business/time-fast-food-became-responsible
