...more than 31,800 flagship restaurants serving burgers and fries in more than 100 countries. Almost 30% of its locations are company-owned; the others are run by franchisees. Sales in 2005 were $20,460.2 million and 447,000 people were employed world wide. [i] McDonalds’ major competitors are Burger King, the number two hamburger chain, and Wendy’s, number three. McDonalds also competes with Yum Brands, Inc., “which actually is the largest fast-food operator in the world in terms of number of locations, with more than 34,000 outlets in more than 100 countries. Yum Brands restaurants include the number 1 chicken fryer, KFC (with more than 13,500 units), top pizza joint Pizza Hut (about 12,500), and quick-service Mexican leader Taco Bell (more than 6,000). Yum Brands also operates the Long John Silver’s seafood chain, along with several hundred A&W root beer and burger stands”[ii] Economic Forces McDonalds is an elastic good and has many substitutes, from the competitors mentioned above to food cooked at home. Given that it is less expensive to cook at home, people whose incomes are squeezed may decide to avoid fast food all...
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...Yum Brands, Inc. is a United States-based Fortune 500 corporation. This world largest fast food company owns more than 39,000 restaurants around the world in over 125 countries. Well-known brands including Taco Bell, Kentucky Fried Chicken, Pizza Hut, and WinG Street all belong to the Yum Brands, Inc. Yum Brands Inc.’s total sales for 2011 was more than $12 billion, and they are definitely one of the leaders in the fast food industry. Yum Brands, Inc. was actually the Tricon Global Restaurants, Inc., which was renamed in 2002. Tricon Global Restaurants, Inc. was founded in 1997 as an independent company from the former fast food division of PepsiCo. PepsiCo purchased Taco Bell and Pizza Hut in 1970s and Kentucky Fried Chicken in 1980s. After becoming an independent company from PepsiCo, Tricon Global Restaurants, Inc. continues to grow and has acquired Long John Silver’s and A&W All American Food Restaurants. Yum Brands, Inc. is not only a strong player in the domestic market; they are also very successful in other foreign markets, such as China and Canada. With more than 1.4 million associates all over the world, Yum Brands, Inc. is confident with their position in the global market. Although the global fast food industry is very competitive, Yum Brands, Inc. is holding an advantage position. China is a good example to look at Yum Brands, Inc.’s successful expansion in the global market. Although their competitor, Mc. Donald’s also performs very strong in the Chinese...
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...Case Presentation: Taco Bell Case Presentation: Taco Bell Pat Lauscher and Jesse Paprocki BUS 754: Information Systems Mgmt Spring 2003 HISTORY (EVENTS) Company Focus: John Martin joined Taco Bell in 1983 as president and CEO, having previous executive level experience with other fast food chains. He discovered that the company didn’t know what business it was in, so he quickly focused Taco Bell on the fast food industry. Process Improvements: 1983-1988: Strong growth in the 60s and 70s came to a halt in the early 1980s as the fast food industry began showing signs of maturity. To deal with the potential threat of a maturing business, Taco Bell began a series of process improvement initiatives that really changed the way it did business. These improvements included increased restaurant capacity by modernizing its restaurants to include drive through windows, increased seating capacity, electronic point of sales systems (to replace plastic order boards), and reconfigured food production areas. Taco Bell also added some new menu items during this time. 1988-1991: Continuing to feel the effects of an industry margin squeeze, Martin commissioned two studies that tuned the company in to what the customers really valued, FACT (Fast, Accurate, Clean, and Temperature). In response, the organization stopped viewing quality and price as incompatible tradeoffs. The K-minus program transformed the kitchen into a heating and assembly unit and centralized cooking...
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...Financial Management Group Assignment Team 9 - Bayswater Andrés Lema Eric Shoubridge Farhana Aslam Felipe Hessel Rosa Montes Todd Hanlon 5th December 2012 1: The Financial, Business and Economic Environment for McDonald’s Introduction: The Fast Food Industry and McDonald’s The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. In addition, the drive-thru concept brought explosive growth through delivering food-on-the go. “Fast Food” was added to the Merriam-Webster dictionary in 1951, and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone there are over 200,000 restaurant locations. Revenue has grown from $6 billion in 1970 to $160 billion in 2011, an 8.6% annualized rate (Sena, 2012). Fast food franchises focus on delivering high volume, low cost, and high speed products. Frequently, food is preheated or precooked and served to-go, though many locations also offer seating for onsite consumption. With all stands, kiosks, or sit-down locations, food is standardized and shipped from central distribution points. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same across all stores (Sena, 2012). McDonald’s (MCD) was founded in California in 1940 under the name “McDonald’s Bar-B-Q”. The original founders, Dick and Mac McDonald...
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...Taco Bell in Japan (Round Two Japan, will this time be a Fiesta or Siesta?) By Phillip Smith As a child, growing up on the West Coast of America, Taco Bell, was as common as McDonalds, 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...
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... In 2011, Taco Nation was founded by two Adamsonian students, Johnsie Arquiza, and James Espiritu as they felt weary on the canteen foods. They crave for a new cuisine and think of something that can satisfy their taste buds. After all the critical thinking they've been through, they decided to create a homemade Taco. They experimented until they were satisfied with the taco ingredients and proportions. They created a homemade Taco and let their Mexican cuisine to be tasted by their family. Their family liked it so much and told them to sell it to the neighborhood to earn some extra money rather than playing computer all day. After a week, they decided to open a Taco stand near their house called, Taco House in Barangay Moonwalk, Paranaque, Philippines. One year later, they wanted to expand what they have started so they searched out a good location in the right part of the town on a busy main street. They also formulated a new sauce themselves and it would later be their new taco sauce. At the same time, they researched tacos and everything about it. The shells had to be prepared quickly and efficiently. They have to be fried first and stuffed later. They had seen a lot of versions of tacos so they created their very own. They decided to sell the stand and opened a perfected version named Taco Loco. Over the next year, they met James’ aunt, Katherine Espiritu who owned and operated a number of restaurants in Washington DC and helped them built the first Taco Nation in Ermita...
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...to why Taco Bell restaurants should be an investment. This report is designed for Ms. Yolanda Yorbon, the current boss at Yolanda’s Yummy Restaurant. She has asked me and my research team to do some investigative work and present it in a long formal report. This will help her to determine which fast food franchise she should make an investment in between McDonald’s, Taco Bell, and Burger King. I will be examining the background behind the business, start-up costs, commitment, locations, requirements to work, requirements to franchise, and the ongoing fees for Taco Bell. Ms. Yolanda’s expertise is in the area of Mexican food. She really wants to be successful in other restaurant business ventures, and this is the way to provide the answers. Taco Bell Corp., based in Irvine, California, is the nation's leading Mexican-style chain. Taco Bell was founded by Glen Bell who first opened a hot dog stand in 1946 when he was 23 years old. Six years later, he sold the stand and opened a new one two years later, this time selling tacos under the name of Taco-Tia. Bell sold the El Tacos to his partner and built the first Taco Bell in Downey in 1962. Taco Bell Corp. started franchising in 1964. In 1970, Taco Bell went public with 325 restaurants. In 1978, PepsiCo purchased Taco Bell from Glen Bell. Taco Bell sells tacos, burritos, quesadillas, and many other Mexican foods. This would be great for Ms. Yolanda because her expertise is in Mexican food. Before starting up a Taco Bell franchise...
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...All the Reasons Not to Eat at McDonald’s Almost every American has probably at one time or another eaten at one of McDonald’s many restaurants or they have at least heard of the mega fast food chain. For decades, Americans have enjoyed their array of menu items. Recently, people have been looking deeper and deeper into if McDonald’s is really a healthy restaurant to eat at. I propose that customers who enjoy McDonald’s food should no longer consume it because it can make you obese, the portions are way too big, and the food at McDonald’s is practically phony. To start off, people all over the world that like the McDonald’s should not eat at the familiar restaurant because it could lead to serious weight problems. Hopefully, people who eat at McDonald’s will realize it is not doing them any good. Studies show that those who frequently eat at McDonald’s gained 10 pounds more than those who did so less often, and were more than twice as likely to develop an insulin disorder linked to diabetes. Clearly, fast food eaters could gain more pounds especially if the foods that are high in fat, like the food served at McDonald’s. Therefore, if you do not want to get fat, I might steer clear from McDonald’s. The second reason as to why you should not eat at McDonald’s is because the portions are becoming larger. As the year’s progresses, the portions at McDonald’s are getting bigger and bigger even though you might not even realize it. The problem is that people tend to eat or drink what's...
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...The Effect of Changing Tastes on McDonalds There are around 40 Million American are considered obese. We live in a world, where everything is almost instant. We can go to a drive up window and receive a fast, hot meal in less than 3 minutes. Everything is about fast. That is the Mc Donald's golden years. But sometimes, going too fast is not good for us. Customers now substitute healthy food for a quick cheap meal, a healthy diet, included with healthy habits, can change our life. These changes are great for our world, but it is hurting the Mc Donald's profits. Consumer tastes and preferences are changing and the [fast-food] industry need to be able to adapt to them. There is a huge opportunity to develop new products that appeal to the health conscious customer. To be more specific, they need to develop new products that appeal to young, health conscious women. Because consumer tastes are changing there is an opportunity to develop new healthier product lines that appeal to the new tastes of consumers that satisfied their tastes. Question3: What are Mc Donald's strengths and weakness and what conclusion do you draw about it future? Strengths: - Industry's leader: McDonalds has been the leader in the fast-food industry for decades, literally changing the way Americans ate. Like every other business, McDonald's is subject to opportunities and threats in their specific and general sectors. - McDonald's financial condition seems to be fair, but on the rise and could...
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...Taco Bell Analysis Introduction In our fast paced world, fast food restaurants are very popular and fit right in. People enjoy the fact that they can get prepared food fast and at a reasonable price. There are a lot of fast food restaurants that offer you the option of buying a hamburger and French fries. So when Taco Bell came along and introduced to the fast food world Mexican food, it received a warm welcome. Taco Bell became an instant success. From the origination in 1954 to the present Taco Bell has been allowing their customers the opportunity to choose a variety of Mexican food. The organization and all subsidiaries/strategic business units Taco Bell is a subsidiary of Yum! Brands. In May of 2002, Tricon Global Restaurants Inc. changes its name to Yum! Brands, Inc. Yum! also operates or licenses Pizza Hut, KFC, and WingStreet. Prior to 2011 Yum! also owned Long John Silver’s and A&W Restaurants. It is based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units---more than 39,000 restaurants around the world in over 125 countries. In 2011, Yum!’s global sales totaled more than $12 billion. Taco Bell alone serves more than 36.8 million consumers each week in more than 6,000 restaurants in the U.S. Historical perspective on the organization. In 1954, Glen Bell opened the doors to his first Mexican food restaurant called “Taco Tia.” He drove around in an old bread truck handing out sombreros to everyone...
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...new ones to meet changing consumer needs. The development of strong brands has always been a feature of the fast food market. Utilizing on-site product recommendations on our Web site dramatically increases conversion rates, order size and as well building brand trust with your online customers. Industry-wide data shows that sites that have added product recommendations have experienced increases as great as: 90%+ increase in on recommended products; 45%+ increase in conversion rates; and 5% increase in the number of items per order. Multiple Recommendation Types: TACO BELL runs more than 20 different recommendation types allowing it to display multiple recommendation sets per page — making it easier for shoppers to discover relevant products while giving merchandisers more space for upselling and cross-selling products. Explicit Messaging: Unlike “We suggest” or “You might also like” recommendations, TACO BELL recommendations clearly explain why products are being recommended to a shopper (e.g. “People that viewed this ultimately bought” and “Top selling product for this item”) The result is an enriched shopping experience for your customer, and higher sales and brand loyalty for you. Testing is vital throughout the entire product development process. It helps to provide valuable information that can be used to fine-tune the product and minimise many of the launch risks. In...
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...Paul Rollinger GBS 151 10am 30 November 2015 Taco Bell Report/Presentation Introduction Taco Bell is a chain of fast food restaurants that serves quick Mexican-style food. The company was founded in 1962 by Glen Bell. Bell served what his customers referred to as “Tay-Kohs.” Over time, more items were added to the menu and were considered an American twist on modern Mexican cuisine. In addition to tacos, Taco Bell restaurants also serve burritos, quesadillas, nachos, gorditas, and other specialty items to its customers. Market Analysis Taco Bell represents the largest portion of the Tex-Mex, or “Americanized” Mexican food. It is even larger than most authentic Mexican food restaurants combined. Close competitors to Taco Bell include Del Taco, McDonald’s, Subway, and Jack-in-the-box and Filiberto’s in the western United States. More restaurants have been opening very quickly in the U.S. and globally for the past 50 years. Most recently, expansion to India has been a plan for Taco Bell and operations have already taken place in 2014. It is clear that Taco Bell may dominate its competition in any area that it operates and will be successful worldwide. Recent History With approximately 6200 restaurants Taco Bell is one of the largest quick-serve restaurants in the world. As of 2015, the company has just over 5,000 franchisees who own and operate Taco Bell restaurants. From 2014 to 2015, Taco Bell has had a strong sales growth with no sign of slowing. Recent changes to...
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...TACO BELL IN INDIA - CASE STUDY QUESTIONS: Also, please consider and discuss where the company is now, a few years later, with regard to Taco Bell in India. Have they achieved higher brand awareness, growth and profitability/success? If not, what suggestions do you have for them? What does your team suggest for Taco Bell in the future? Are there other regions for expansion? YUM! Brands, Inc. now operates in six divisions: YUM Restaurants China (China or China Division), YUM Restaurants China (YRI or International Division), Taco Bell U.S., KFC U.S., Pizza Hut U.S. and YUM Restaurants India (India or India Division). Taco Bell has 7 stores in India, which located in three cities: Bangalore (Sony World Signal, Innovation Mall, and Brookefield Mall), Mumbai (Oberoi Mall, R City, and Viviana Mall), and Delhi (Ambience Mall). According to The Economic Times (7 Jun, 2015), Taco Bell announced its expansion into New Delhi through a tie-up with Burman Hospitality, its first franchisee partner in India. Cooperated with Burman Hospitality, Taco Bell India plans to take the store count to 25 restaurants in the next 18-24 months. The General Manager of Taco Bell & Pizza Hut, Unnat Varma, said that with a strong proof concept in Bangalore and Mumbai, they are eager to increase their footprints across India, such as Punjab, Chandigarh, and Uttarakhand. He also indicated that Taco Bell is aim to provide their signature Mexican-inspired food and break-through value to the customers...
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...I. Case: McDonald’s “Fast-Food” Restaurant - 35% - discuss thoroughly. Mary Marino manages a McDonald’s restaurant. She has noticed that senior citizens have become not just regular patrons – but patrons who come for breakfast and stay on until 3:00 p.m. Many of these older customers were attracted initially by a monthly breakfast special for people aged 55 and older. The meal costs $.99 and refills of coffee are free. Every fourth Monday, 100 to 150 seniors jam Mary’s McDonald for the special offer. But now almost as many of them are coming every day – turning the fastfood restaurant into a meeting place. They sit for hours with a cup of coffee, chatting with friends. On most days, as many as 100 will stay from one to five hours. About a year ago, as a goodwill gesture, Mary brought in a team from the American Red Cross to check her regular customers’ blood pressure – free of charge. Mary’s employees have been very friendly to the seniors, calling them by their first names and visiting with them each day. In fact, Mary’s McDonald’s is a “happy place” – and her employees develop close relationships with the seniors. Some employees have even visited customers who have been hospitalized. “You know,” Mary says, “I really get attached to the customers. They’re like my family. I really care about these people.” They are all “friends” and being friendly with the customers is part of McDonald’s corporate philosophy. These older customers are an orderly group – and very friendly...
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...Zaheer Notes Share Analysis * Right then, on the screen is a graph showing the share prices at different points during the last 5 years. * As you can see, share prices peaked during 2011 and 2012. * Now we can translate this graph into some ratios to look what it actually shows * So, the earnings per share figure has continued to grow since 2011 * However we need to look at the price to earnings ratio to fully understand what’s going on. * In 2011 there was a big increase in the price to earnings ratio * Share prices were high, and the demand had increased * But why? Investors were expecting a big growth in earnings in the future Geographical Segments/SBU’s * McDonalds segmentation focuses closely on its franchises and its McCafe brand. * Now, well all know about that cliché where Americans are known for their love for massive burgers right? So let’s look at what the actual numbers say about this... * The US has the largest fast food market in the world, estimated of produced $191billion * So how are McDonalds performing in the states compared to the rest of the world * First of all, as mentioned earlier more than 80% of McDonalds restaurants are franchises * So, because of the limited time we have today, I will be focuses on the revenues of franchised restaurants rather than the company owned ones. * If we take a look at the bar chart on the screen, almost half of the sales are coming from America, followed by Europe...
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