...Results Overview of fast food market Fast food market Fast food restaurant Definitions Fast food restaurants feature a common menu above the counter; they provide no wait staff; and customers typically pay before eating and choose and clear their own tables. These restaurants are also known as quick serve restaurants (QSRs). Main type of food sold at the restaurant, including burgers, sandwiches, snacks, Mexican food, and pizza. sales. The next four, Subway, Burger King, Starbucks, and Wendy’s, had $8 to $10 billion each in sales and 6% to 7% of the market. The three YUM! Brands restaurants in the top 20 (Taco Bell, Pizza Hut, and KFC) ranked sixth, seventh, and ninth individually. Together their sales totaled $16.7 billion, or 12% of the market, and placed YUM! Brands in second place behind McDonald’s. The restaurants in our analysis represent several different segments of the fast food market including burgers (McDonald’s, Burger King, Wendy’s, Sonic, and Dairy Queen), sandwiches (Subway), snacks (Starbucks and Dunkin’ Donuts), Mexican food (Taco Bell), pizza (Pizza Hut and Domino’s), and chicken (KFC).4 The number of U.S. locations of these twelve restaurants totaled almost 100,000 and ranged from approximately 3,500 Sonic restaurants to almost 24,000 Subway restaurants. These twelve restaurants comprised 41% of locations for the top 50 restaurants. Fast food segment Table 2 presents 2008 and 2009 sales data for the twenty largest fast food restaurants in the United States...
Words: 52447 - Pages: 210
...Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc, which pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965, which introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P). The main target customer for McDonald's includes parents with young children, young children, business customers, and teenagers. Perhaps the most obvious marketing for McDonald's is its' marketing towards children and the parents of young children. Ronald McDonald was first introduced in 1963 and marked the beginning of their focus on young children as a critical part of their ongoing business. Parents like to visit McDonald's because it is a treat for the kids, and the kids enjoy the cartoon like atmosphere. McDonald's also targets business customers as a part of their core business. Business customers may stop during the workday and can count on fast service, and consistently good food. Another major target of McDonald's marketing is to teens. Teens find the value menu especially appealing and McDonald's markets their restaurants as a cool place to meet with their friends and to work (The Times 100). The menu at McDonald's typically...
Words: 1407 - Pages: 6
...Fast food restaurants are everywhere in today’s society. They are found in hospitals, attached to fueling stations, in grocery stores, and inside major sports complexes (such as Great American Ball Park). With the many locations of these restaurants, the question must be raised… are fast food restaurants making people fat? That question can be answered with a resounding yes! In 1968, McDonalds was operating 1,000 restaurants (Schlosser 3); Taco Bell was just getting started and Wendy’s opened its first restaurant in 1969 (About Wendy's). According to Pearson Education’s Info Please website, 13.3% of adults were obese in the 1960s (Info Please). Today, 35.5% of people are obese (Flagel et al. 491). That’s an increase of 22.2%. In the 1970s, Americans spent 6 billion on fast food (Schlosser 3). In the year 2000 alone, Americans spent more than 110 billion (Schlosser 3). Today, there are over 50,000 fast food chains in America according to Google Maps. What is obesity and why is it a problem? Tabors Cyclopedic Medical Dictionary defines obesity as “an unhealthy accumulation of body fat” (Tabors Cyclopedic Medical Dictionary 1504). Obesity is clinically manifested (diagnosed) when the body mass index is ≥30 kg/m2 (Lewis et al. 2: 1035). Obesity is a problem because not only does it put more strain on the person during physical activity, but it also leads to decreased lung volumes from the heavy abdominal area placing pressure on the diaphragm (Potter et al. 826). ...
Words: 1931 - Pages: 8
...with locations in every neighborhood. Its classic chicken quesadilla and bean burrito were staples of my college diet and I could not imagine a fast-food landscape without the spicy taco-sauce. Although, since moving to Japan in 2005, I’ve had to settle for eating Taco Bell only when traveling outside of Japan. That being said, every other major US fast-food chain seems to be serving its notable favorites in the land of the Rising Sun. For example, McDonalds operates over 3,100 units (Inagaki, 2015), Kentucky Fried Chicken has 1165 locations (Yum!’s, 2015) and Starbucks has 1117 (Loxcel, 2015); but where is Taco Bell? On 21 April, 2015, the multinational fast-food chain answered back with its launch into the Japan market with a new location in Shibuya, Tokyo. This is not Taco Bell’s first launch in Japan. Back in the late 1980’s it opened stores in two markets, Tokyo and Nagoya (Matayoshi, 2015). A few years later in the early 1990s, they closed all the Japan operations, abandoning the country. Will the second attempt be different? How will marketing play a role in its success? Did they invest in market research to gain insight in the lay of the land? How will its competitive environment contrast its first attempt to penetrate the Japan market? What type of competitive strategies will it use? When setting pricing and menu mix, how will competitive bench marketing and competitor analysis play a role in decision making? These questions and others will be reviewed...
Words: 3503 - Pages: 15
...Individual Innovation Paper McDonald’s Arch Deluxe EXECUTIVE SUMMARY Individual Innovation Paper: McDonald’s Arch Deluxe Analysis - Why It Failed INTRODUCTION McDonald’s has been in the hamburger business since the 1950’s and grown into a world-wide fast-food giant known for “Quality, Service, Cleanliness and Value”. As the McDonald’s empire grew so did their menu, it adapted to the tastes of their customers. In 1996 McDonald’s launched the Arch Deluxe; their answer to what adults want to eat. The public did not agree with McDonalds and the product was not successful. CAUSE OF PRODUCT FAILURE McDonalds advertising tried to show that the new Arch Deluxe was fancier than their other menu items and overemphasized the how adult it was. In the end the public did not agree and it ultimately failed. The Arch Deluxe did not make a rebound although over time they did add menu items with similar ingredients on the menu today. WHY DID IT NOT REBOUND? I believe the reason McDonald’s would not bring the Arch Deluxe back is because it is such a well-known financial failure for such a successful multi-national business. CONCLUSION The creation of the Arch Deluxe was not a big mistake in of itself, they wanted to create something adults would like to order and during research and design the testing groups liked the Arch Deluxe. The problem was with the way McDonald’s advertised and promoted the Arch Deluxe; they thought their idea was innovative and the advertising did not...
Words: 1537 - Pages: 7
...president of Subway, and Dr. Peter Buck founded the chain in 1965. Doctor's Associates, Inc. (DAI) currently owns the Subway sandwich shops. DAI is a privately held company and is not traded on any stock exchange. Subway has been realizing steady sales growth in recent years and reported $15.2 billion in revenue for 2010. Although Subway surpassed McDonalds in terms of store locations, McDonald’s is still the industry's revenue leader and earned $24 billion in 2010. Subway’s mission is to delight their customers with great food and service. In April 2010, Subway joined its major competitors and began offering a breakfast menu. Although Subway has been extremely successful selling submarine sandwiches, the chain faces several issues by entering this new market. These issues include major competition from other well-known fast food and full-service restaurants, consumer perception, accessibility and menu variety and pricing. McDonald’s has been the leader of fast food breakfast sales since 1975 with Dunkin’ Donuts and Starbucks being the next closest competitors in the market (Tice, 2010). These restaurant chains already have an established customer base for their breakfast products. On the other hand, Subway is widely known as the place with the five-dollar foot-long sandwiches customers enjoy for lunch and dinner. So introducing the idea of breakfast at Subway doesn’t always receive a positive reaction from everybody. Subway has to find ways to bring in customers to try their new...
Words: 810 - Pages: 4
...Company's Strategy Chipotle Mexican Grill's successful strategy is centered on their innovative menu and approach to food preparation. Chipotle would be considered to have a broad differentiation strategy because the company seeks to differentiate the company’s product and service from rivals in ways that appeal to a broad spectrum of buyers. Chipotle’s menu strategy is different than most fast-food restaurants and fine-dining establishments. Its menu strategy has been to keep it simple and do a few things exceptionally well. Serving a focused menu has let Chipotle focus on improving the efficiency and accuracy of the fast food ordering process and dish-creation process. It helps avoid selections that can complicate store operations and impair...
Words: 347 - Pages: 2
...Red Lobster expanded internationally into Canada. In 1995, General Mills separated Red Lobster brand from the General Mills Restaurant Group and launched Darden Restaurants, Inc. The brand struggled throughout the following years due to the opening of competitive chains. Red Lobster experienced declining sales through the early 2000’s, due to faster dining options, such as Chipotle and Panera Bread. Currently, there are 705 locations worldwide, in countries such as United States, Canada, Malaysia, Saudi Arabia, Qatar, Mexico, and Japan. Unfortunately, Red Lobster is currently struggling from an identity crisis. Customers do not understand if the chain is supposed to be fast-casual, fine dining, or casual dining. The décor and atmosphere are very casual, but the prices and wait times no longer fit in with fast-casual restaurants, such as Chipotle, Panera Bread, and Starbucks. In order to compete with the lower prices of competitors, Red Lobster offered many promotions, which proved to be unsuccessful. Some consumers did not trust that the seafood was fresh, causing their perception of the restaurant to change. Red Lobster has yet to find...
Words: 3297 - Pages: 14
...Date of Incorporation: 1965 Franchising Since: 1974 Headquarters: Miami Springs, Florida Business Description: Subway Restaurants sell foot-long and numerous other kinds of healthy sandwiches, salads, etc. in its franchise. Franchise Offer: Subway offers highly qualified purchasers the right to operate and establish from a single location, a franchise selling specialty sandwiches, salads and other healthy edibles. Term of Agreement and Renewal The length of the franchise term will be 20 years and as per the contract, Subway has all the rights to refuse the renewal in case the franchisee does not generate profits of fulfil compliance. Investment Tables: Initial Investment: For a Traditional Location: | Low | High | Midium | Franchise Fee | $15,000 | $15,000 | $15,000 | Property | $2,000 | $12,000 | $5,000 | Improvements in lease | $59,500 | $134,500 | $102,100 | Security deposit | $4,500 | $7,500 | $6,500 | Security system (Optional) | $2,000 | $6,000 | $3,500 | Freight charges | $3,300 | $5,500 | $4,000 | Outside signage | $2,000 | $8,000 | $4,000 | Opening inventory | $4,400 | $6,050 | $5,225 | Insurance | $800 | $5,000 | $1,500 | Office Supplies | $500 | $1,300 | $900 | Training expenses (including travel & lodging) | $2,500 | $4,500 | $3,500 | Legal | $1,000 | $3,500 | $2,000 | Advertising | $2,500 | $4,000 | $3,250 | Miscellaneous Expenses | $4,000 | $8,000 | $6,000 | Additional Funds...
Words: 5672 - Pages: 23
...help ensure that Chipolte continue its current growth and maintain its long-term competitiveness. Please prepare a report to Mr. Ells that assesses the long-run profitability of the fast casual restaurant industry, the quality of Chipolte’s internal situation and that makes specific recommendations on how they can attain their goals. In analyzing the situation be sure to perform a thorough Industry and Competitive Analysis (e.g., DEC, Porter’s 5 –forces, Driving Forces, KSF’s, competitor analysis, etc.) as well as an analysis of Chilpote's internal situation including its business level strategy, their resources and competitive capabilities (e.g., SWOT and VRIO), a Competitor Analysis (a discussion of key competitors and a group map) and a Performance Analysis (financial (use the information from Case Exhibit 1) and strategic). Your recommendations should be specific, actionable and should logically flow from your analyses. Key problems: 1. Competition 2. Maintaining commitment to “food with integrity”- rising prices Possible solutions: 1. Expanding into new markets like Shophouse Asia Kitchen and maintaining high quality ingredients 2. Partnering/investing with local farmers markets and suppliers Best Solution: 1. Expanding into a new market with a different style of food but maintain Chipotle model with high quality ingredients. a. Pros-gain more market share b. Cons- market may be saturated 2. Chipotle was founded in...
Words: 733 - Pages: 3
...McDonald’s earnings declines in the late 1990s and early 2000s. Dynamic market expansion, new products, and special promotional strategies had made McDonald’s Corporation a leader of the fast-food industry. However, sales growth in the United States had slowed to below the industry average in recent years. Jack Greenberg was trying to decide on a set of appropriate strategies for the future in order to reverse the declines and to stay ahead of competition. The Fast-Food Industry Years of profit drains and flat sales are driving fast-food chains to find new marketing strategies to compete in a mature market. While McDonald’s and most other hamburger chains continue discounting and offering a variety of new products to attract customers, they also seek to shed their “cheap and greasy” image with new store designs. Major competitors in the hamburger segment of the fast-food industry in order of annual sales are McDonalds, Burger King, Wendy’s, and Hardees. Since these chains recognize the importance of drive-through customers (65 percent of sales), they are all trying to increase the speed of drive-through delivery. Strategies include using timers to encourage employees to prepare and deliver food faster, training employees in faster food preparation methods, having separate kitchens and food preparation facilities for drive-through customers, and even windshield responders that automatically bill customers. Drive-through sales are expected to grow three times faster than on-premise...
Words: 3338 - Pages: 14
...Name: Institution: FIVE GUYS Five Guys is a private owned restaurant chain that serves fast and casual food. The restaurant focuses on French fries, hot dogs, soft drinks, and hamburgers. Five Guys started in 1986 and with its headquarters in Lorton, Virginia. It has branches in more than 40 states in the US, as well as in six Canadian provinces. This paper aims to determine the business that Five Guys is in, run the rule on their primary competitors, perform the restaurant’s SWOT analysis, and finally give strategies for the hotel chain in the coming five years. 1. Business Case Five Guys began in 1986 by the Murrells together with their 4 sons. Originally, the restaurant's name was Jerry and the sons. After beginning the business, Janie and Jerry Murrell had a fifth son, with all sons involved in running the business as the Five Guys. Together, the brothers did away with ideas of broad menus, favouring a more honest and solid bugger (DATAMONITOR, 2010). They pride themselves in offering non-frozen buggers, which are hand-patted from ground beef, and 80% lean. The fries preparation occurs daily including cutting the potatoes, along with in the house and fresh buggers. The restaurant created a cult following by word of mouth. Five Guys price their burgers at four dollars; yet manage to keep their clients coming back due to their appeal for high quality and fresh food. The pricing makes the restaurants enjoy increased success in areas with higher income that cater...
Words: 1284 - Pages: 6
...commitment to customer satisfaction through the offering of high quality food which is the primary focus of Subway’s focus. Subway is very concerned about the quality of their products and this is visible through the production of fresh goods and regular inspections. Subway produce products that allow customers to eat healthily which is according to their slogan which is “Eat Fresh”. Subway bakes their own bread daily and their customizable menu offers customers the option of picking their menu where they can either leave something out or order something double. Not only that, their menu reflects on fresh and healthy fast food. This is because their sandwiches offer a consistent set of fresh ingredients that contains a lot of nutrients which can measured by several indicators such as protein, vitamin, dietary minerals and their healthy products are also measured by caloric intake. For example, a 6” Meatball Marinara is only about 299 grams per serving size (Subway, n.d.). Besides that, Subway have stringent audit processes that enforce the whole Subway supply chain and the supplier’s employment practices to meet the “Vendor Code of Conduct”. This is done so that food that by each Subway restaurants is always fresh and produced sustainably. In year 2009, Subway became the clear leader in the healthy fast-food subcategory with so many large and a well-resourced competitors in place where Zagat Fast-Food Survey rated the Subway brand as the number-one provider of Healthy Options...
Words: 1192 - Pages: 5
...are specialized in designing a quick-serve menu which appeals to customers and the reason why it works because when customers watching the menu they would know what they want to eat either burrito bowls, tacos or salads that helps solve with the problem of time consuming on food selection, thereby promotes operational efficiency. For the another core competencies, it should be skills in creating a restaurant layout and serving line design that efficient the food-ordering and dish-creation process so that more customers could be served. It is obviously to see that Chipotle’s operation strategy is to make things simple to customers with high food quality and good taste experience. 2 The SWOT analysis revealed the attractiveness of Chipotle Mexican Grill’s situation that Chipotle’s resource strengths and the good coordinates between these strengths and the company’s market opportunities make it more attractive on current situation and short-term and long term revenue and profits growth. And its weakness and external threats is not that significant enough to overwhelm its attractiveness of the company itself in the market. To discover more about the analysis, we can find out the strength of the Chipotle is proven capability in serving customer order and menu selection that enable customer to customize their dishes. Another aspects like the company’s supply chain management practice, securing quality of raw materials, and commit to “food with integrity.” The only weakness would be...
Words: 1877 - Pages: 8
...Program Material Appendix F Outline and Thesis Statement Guide With the way the economy is today people don’t think about that they are eating or think about the consequences, they look at the price. I. Eating fast food put you at risk for health problems. A. Subway vs. McDonald’s 1. Subway has baked foods 2. McDonald’s has fried foods B. Health risks. 1. Diseases A. Heart Disease, Obesity, and Diabetes 2. Can lead to death if you don’t control eating. II. With the economy getting worse people look for cheaper options. A. McDonald’s menu 1. Dollar menu and value meals 2. Drive thru for quick and easy access B. Subways menu 1. $5 foot longs 2. Call in and drive thru for fast and easy access III. Children and fast foods A. McDonald’s 1. Kid meal with toy to make kids get addicted to fast food young just for a toy 2. Now starting to make it where kids have to get apple...
Words: 341 - Pages: 2
