Not only same good or even more delicious, Prepared fried chicken often found in grocery stores or fast-food chains, is generally much cheaper than fresh-made fried chicken meals for several reasons. Here are some of the key factors:
1. Economies of Scale
- Bulk Purchasing: Large food manufacturers and fast-food chains can buy ingredients in bulk, which significantly reduces the cost per unit.
- Production Efficiency: Mass production allows for more efficient use of labor, equipment, and resources. Automation and streamlined processes reduce the cost of production.
2. Standardization and Consistency
- Uniform Processes: Prepared fried chicken is made using standardized recipes and processes, which ensures consistency and reduces waste.
- Quality Control: Large-scale producers have robust quality control systems that minimize defects and spoilage, further reducing costs.
3. Labor Costs
- Less Skilled Labor: Mass-produced fried chicken often requires less skilled labor compared to fresh-made fried chicken, which may involve chefs and kitchen staff with higher wages.
- Automation: Many large-scale operations use automated machinery to handle tasks such as breading, frying, and packaging, reducing the need for manual labor.
4. Distribution and Logistics
- Efficient Supply Chain: Large companies have well-established supply chains and distribution networks, which can reduce transportation and storage costs.
- Centralized Production: Centralized production facilities can produce large quantities of fried chicken and distribute them to multiple locations, spreading the fixed costs over a larger volume.
5. Preservatives and Shelf Life
- Longer Shelf Life: Prepared fried chicken often contains preservatives and is packaged in a way that extends its shelf life, reducing the risk of spoilage and waste.
- Frozen Storage: Frozen prepared fried chicken can be stored for longer periods, allowing for better inventory management and reduced waste.
6. Marketing and Branding
- Brand Recognition: Well-known brands can leverage their market presence and economies of scale to offer products at lower prices while maintaining profitability.
- Volume Sales: High sales volumes allow companies to spread marketing and operational costs over a larger number of units, reducing the cost per unit.
7. Cost of Fresh Ingredients
- Freshness Premium: Fresh-made fried chicken typically uses high-quality, fresh ingredients, which can be more expensive. Prepared fried chicken may use lower-cost ingredients or processed components.
- Waste Reduction: Fresh-made fried chicken often involves more waste due to the need to prepare and cook on demand, whereas prepared fried chicken is made in controlled environments with minimal waste.
8. Convenience and Packaging
- Convenience Factor: Prepared fried chicken is often sold in convenient, ready-to-eat packages, which can include additional costs for packaging but also command a premium for convenience.
- Packaging Costs: The cost of packaging for prepared fried chicken is often included in the price, but it can be offset by the efficiencies in production and distribution.
9. Regulatory and Compliance Costs
- Simplified Regulations: Large-scale producers may benefit from simplified regulatory compliance due to their established processes and systems, reducing overhead costs.
- Certifications and Standards: Meeting specific industry standards and certifications (e.g., HACCP) can be more cost-effective for large-scale producers due to their established systems.
10. Consumer Expectations
- Price Sensitivity: Consumers often expect prepared and mass-produced foods to be cheaper, and companies adjust their pricing strategies to meet these expectations.
- Value Perception: Prepared fried chicken is often marketed as a value option, and companies may set prices to align with this perception.
In summary, the lower cost of prepared fried chicken is primarily due to the efficiencies and cost savings achieved through large-scale production, standardization, and optimized supply chains. These factors allow companies to offer a product at a lower price point while still maintaining profitability.
