Fast food restaurant Essay

In 1921, after human race War 1, vehicles became more(prenominal) than popular and more affordable for the middle class at that placefore, drive-in restaurants were introduced. Founded by truncheon Ingram and Walter Anderson, the American Company White Castle, is gener all toldy credited with opening the second flying solid nutrient sack and first ground beef chain. Walter Anderson had built the first drive-in restaurant in Wichita in 1916, introducing a scurvy cost and high speed hamburger restaurant. White Castle was tremendously successful from the beginning and produced numerous competitors. Then, franchising was introduced by A&W Root Beer, which franchised its distinctive syrup.Howard Johnsons first franchised the restaurant concept in the mid-1930s, formally standardizing menus, signage and advertising. More all over, in 2006, the global tumultuous food market grew by 4. 8% and reached a pry of 102. 4 billion dollars. Shockingly, in India alone, the libertine food industry was growing by 41% a year. Today, the United States has the main profuse food industry in the valet, having roughly 2 million U. S. workers occupied in the areas of food preparation and food servicing. Leader in the spendthrift feed Industry A&W, McDonalds, Subway? The troubled-food industry or quick service restaurants are thriving.The food industry is let by fast food restaurants which are responsible for 72. 8% of the whole food industry revenues. In due north America, McDonalds is followed by Subway, Burger King, Wendys, Starbucks, Taco Bell, Dunkin Donuts, pizza pie Hut, KFC. altogether in particular order to the amount of gross sales in North America in 2010. McDonalds is the industry leader, with revenues that are 3 times to the beside on the list. They are rattling much concentrated on low prices and getting the client as quick as possible out the door, which appeals a lot to families that want a cheap, fun and in effect(p) place to eat.In todays mode rn society, time is a very essential and throttle factor society is very preoccupied with everything else going on, their eating habits become irrelevant. This is where fast food restaurants such(prenominal)(prenominal) as McDonalds, have a great success preparing their food in record time, making more time for other and more important tasks. Fast nutrition Trends Over the last decade there has been augmentd focus on the quality of food served in fast food restaurants. unseasoned fast food versus old fast food, which essentially means that throughout the past years, many fast food businesses started to develop.And two leagues of fast food restaurants have emerged. Old fast foods and new fast foods, the old fast foods consist of companies like McDonalds and smaller companies like Burger King and Yum Brands (Taco Bell, KFC, Arbys and Wendys). New fast foots are Chipotle Mexican Grill, Panera plunder, Five Guys and Oqdoba all owned by Jack in the turning point which is a member o f the old fast food league. Both leagues have very similar attri exactlyes. They two serve inexpensive food in a casual matter while keeping a fast tempo.But the players in the new league have introduced higher-quality menu items, making the consumers catch more similar to a traditional restaurant dining casually at a table, preferably than being in and out of the fast food restaurant with a greasy bag of food. typically highly processed and industrial in preparation, much of the food is high in fat and has been shown to increase body mass index and cause weight gain. Popular books such as Fast Food Nation and documentaries like Super Size Me have amplified public awareness of the negative health consequences of fast food.These documentaries have had a huge impact on fast food restaurants who were indirectly obliged to act to this trend if they wanted to keep most of their clientele. AMERICAN DIETARY TRENDS, BY DECADE Historical Events Food Trends of the Time 19501959 Mothers returning to the home after the war effort Postwar baby boom body structure of the national highway system Packaged meals available First TV dinner (Swanson), 1953 Rise of hamburger chains along highways Oscar Mayer Wiener-Mobile 19601969 Growing middle class with money to spend. Growing social unrest over the Vietnam War in late 1960s Introduction of Julia Childs French cooking hipsters bring back demand for unprocessed, made-from-scratch foods Vegetarian trend starts 19701979 End of Vietnam War Watergate scandal Growing inflation major(ip) influx of Asians due to Immigration Act of 1965 Continued demand for organic and fresh California cuisine Elaborate dinner parties with ethnic dishes Growing appetite for Asian cuisine 19801989 Stock market plonk of 1987 Nouvelle Cuisine is the thing du jourdiners willing to pay more to eat less Return to simplicity in late 1980s. Exploration of diametrical tastes (e. g. , TexMex, Ethiopian, Southwestern) 19901999 Introdu ction of the Internet puts foods at consumers fingertips Everything reduced-fat, low-fat, fat-free Naturally healthy cuisines (Mediterranean) New movement toward simplicity fragments in Fast Food Industry When observing the fast food industry, it is transparent that restaurants specialize in authoritative fat foods. In fact, fast food restaurants can be dual-lane in eight categories Asian food, burgers, sea food, pizza/alimentary paste, snacks, icteric, Mexican food and sandwiches.The different segments distinguishes the direct competitors such as McDonalds and Carls junior trying to contend/ build the best burgers and the indirect competitors such as Quiznos who specialize in sandwiches and Dominos Pizza who focuses on promoting their delicious pizza but still tries to sell sandwiches. All fast food restaurants fiercely debate with each other to sell not only their speciality but have the most sales in general. In 2010, as being the leader of the fast food industry, McDon alds was and is still at the top of the burger category, with more than $32 billion in system wide sales.The winners for the other categories were Taco Bell for the Mexican segment, KFC for the chicken category, Pizza Hut for the Pizza and Pasta brands, and Long John Silvers winning the Seafood segment. The graph demonstrates the different segments of the fast food industry as well as the restaurants and their rankings. QSR 50 Rank Company Segment 22 Panda Express asian 3 Burger King*2 burger 23 Carls Jr. * burger 34 Checkers/Rallys burger 33 Culvers burger 16 Dairy Queen* burger 30 Five Guys Burgers & Fries burger 19 Hardees* burger.45 In-N-Out Burger* burger 15 Jack in the Box burger 50 Krystal* burger 1 McDonalds burger 10 Sonic burger 27 Steak N Shake* burger 4 Wendys* burger 25 Whataburger burger 40 White Castle* burger 31 Bojangles chicken 41 Boston Market* chicken 11 Chick-fil-A chicken 26 Churchs Chicken chicken 38 El Pollo Loco chicken 9 KFC chicken 20 Popeyes* chicken 28 Z axbys chicken 18 Chipotle mexican 36 Del Taco mexican 44 Qdoba mexican 6 Taco Bell mexican 39 CiCis Pizza* pizza/pasta 12 Dominos Pizza* pizza/pasta.24 Little Caesars* pizza/pasta 35 Papa Murphys pizza/pasta 17 Papa Johns pizza/pasta 8 Pizza Hut pizza/pasta 43 Sbarro* pizza/pasta 14 Arbys sandwich 48 Einstein Bros. Bagels* sandwich 42 Jasons Deli sandwich 29 Jimmy Johns* sandwich 13 Panera Bread sandwich 21 Quiznos* sandwich 2 Subway* sandwich 47 Captain Ds seafood 32 Long John Silvers* seafood 37 Baskin Robbins* snack 49 Cold tilt Creamery snack 7 Dunkin Donuts* snack 5 Starbucks* snack 46 Tim Hortons1 snack Own A Fast Food Restaurant a Bad or Good Idea?It is not a very good and viable industry for anyone to enter. The global economy shifts have been proven to highly affect certain fast food companies. Fast food companies were once thought to be immune to recesss, because of their low prices and fast service because logically in a recession, consumers have to cut spending. Many c onsumers traded down, from casual restaurants to fast food restaurants because of the cheap BigMacs, Whoppers and $1 value meals. As a result, fast-food chains have weathered the recession better than their pricier competitors.In 2009 sales at full-service restaurants in America fell by more than 6%, but total sales remained about the same at fast-food chains. In some markets, such as Japan, France and Britain, total spending on fast food increased. Same-store sales in America at McDonalds, the worlds largest fast-food company, did not decline throughout the downturn. Panera Bread, an American fast-food chain known for its fresh ingredients, performed well, too its boss, Ron Shaich, claims this is because it offers higher-quality food at lower prices than restaurants. Money can be a big problem in monetary value of starting a business in the fast food industry.Rising prices have also importantly affected many fast food franchises. With food and beverage inputs making up approximate ly 33% of costs, higher prices for livestock, corn, wheat and more have seriously shrunk margins over the past decade. In such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%. The recent economic recession did lower trade good prices, but the recession brought on its own complications, and now prices for commodity inputs are on the rise again. send and Indirect Competitors.Direct competitors in the fast food industry are the companies that produces and sells an almost identical increase which they offer for sale within the same market as those produced by one or more other companies. McDonalds and Burger King compete directly with each other, Wendys and A&W also compete directly because they have a very similar product and service. If a customer really wants a burger and fries, he or she will not go at the other end of town honourable to get to their favorite burger place, they will settle for a very similar product within a closer proximity.Indirect competitors in the fast food industry are the companies or services that are not similar to each other and that share very different characteristics about their product or service. A good example of an indirect competition in the fast food industry could be restaurants such as Swiss Chalet or a sandwich shop and a Panda Express, twain are fast food restaurants but they compete indirectly with each other because one customer may want to eat an Asian dish but not wanting to eat a sandwich, this leading to the customer going as far as it takes to go eat an Asian dish.All in all, fast food is not only about a fast service or eating fattening food , it requires a lot of knowledge and time to make these franchises work and make an ever growing profit. Over the past years and the years to come, McDonalds has and will obviously be the occur one leader in the fast food industry because of their extraordinary service, delicious food and the ir 34,000 restaurants all over the world.However, as years go by, obesity is becoming a huge problem as thousands of kids and adults are attained of heart problems, therefore, decreasing the amount of clients who eat fast food yearly. Trends are changing and people are starting to eat a lot healthier realising how significant it is to take palm of their body. In the next century, will fast food restaurants become a thing of the past or will they find a way to stay their clients number ones solution when it comes to make full up their stomach? Only time will tell