Determinants of fast food consumption in Kampala, Uganda

Abstract

Consumption of fast-food in Uganda is becoming an increasingly important component of the food market as more of the working class choose to dine out rather than prepare meals at home. Despite the importance of the fast-food sector, limited attempts have been made to study the consumption and expenditure behaviour of consumers of fast-food in Uganda. The main objective of this study was to assess characteristics influencing the consumption of fast-food in Kampala district. Specifically, the objectives of the study were: to assess the factors influencing the probability of consuming fast-food; and to determine the level of expenditure on fastfood. Primary data on socio-economic characteristics were collected from a sample of 300 respondents using a multi-stage sampling procedure. The study revealed that majority (90%) of the respondents consumed fast-food. The consumption of fast-food was most motivated by their taste and convenience. Results from the Heckman model show that household size, education level and distance from work-place to restaurant negatively influenced the probability of fast-food consumption and level of expenditure on fast-food while disposable monthly income had a positive effect on the probability of consumption and level of expenditure on fast-food. The high demand for fast-food is seen as an easy solution to consumers’ busy schedules and limited meal preparation time. As changing tastes and need for convenience become the goal of households, consumption of fast-food will be expected to rise especially in urban areas. This increase in fast-food consumption, coupled with rising population and urbanization in Uganda offers new market opportunities for agribusiness firms to exploit the growing demand by investing in the fast-food sector and producing sufficiently for this market. In addition, fast-food establishments should ensure proximity of their products and services to the consumers as convenience greatly influences fast-food consumption. Future research should include identification of sources of agricultural products used by fast-food outlets to provide information about the contribution of the fast-food sector to agricultural marketing and farmers’ livelihoods in Uganda.