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Economics of fast food
Economics of fast food
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On January 31st 2015, Mr. Thompson as a CEO of one of the world’s biggest fast-food franchise, Mc Donald, had resigned, because the franchise made less 20% of profit each quarter since 2014. The next CEO will be Mr. Easterbrook who is a CBO and the franchise hopes that he will make a comeback for the franchise like what Mr. Thompson did in 2012 which the profit successfully went up to 50% percent per quarter. The shareholders had grown frustrated past over last year, because the franchise could not get any better. According to Mr. Easterbrook, he will decrease the price cheaper and add new things to menu. The old menu will change and old things will be remove out of menu, because there are too many different things in menu and it can cost more money. The franchise start opening …show more content…
In my perspective, the franchise makes less profit and it is not the CEO’s foul, because people choose to eat more healthy and organic foods. Nowadays, people are using internet daily and it covers all on the news about how fast-food industries look like and how they do in business. When they look at how they treat the animals and the way they raise them, it makes people rethink about eating fast-food or not. There is news about the ingredients of the food, it shocks me that the food can sustain in any weather and never get ill by gems. I use to eat fast-food because it is a fastest way I can fill my stomach in short amount of time. Later on, I start working out, I stop eating those foods because it doesn’t give me a right protein and can damage my body. I think this is what most people are thinking and continuing to do a same thing. That’s how the fast-food industries cannot stand for long because people are seeking for good and healthy foods. I select this article, because it is in my concern and sometime I do eat McDonald when I do not have time to get other foods. The menu have changed rapidly in pass few months since the rumor and there are not many choices since last
Despite the economically uncertainty Pret A Manger keeps on thriving in the U.S. fast food market. It’s growing fast, with huge success. Pret is proving to the world its a big threat in the sandwich industry. In 2011, U.S. sales up 40% from the year before, “the company’s overall profits grew by 37% in 2010, and annual workforce turnover is only 60%, compared to fast food industry averages of 300-400%.” (Smart Advantage)
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
What is happening to our economy is that so many people are going to these fast food restaurants because they are basically on just about every corner. So, for adults that makes it easy if they didn’t have anything planned for dinner because they can just pick something up from the local fast food restaurant on their way home from work. Also, it is very cheap. For example, a bundle at McDonald’s can feed up to four people at one time and it only costs about fifteen dollars! So, in the long run, it is just easier to go pick up some fast food rather than wasting your time cooking an actual meal. Lastly, even though fast food is very cheap and on every corner, it is not healthy at all. Studies have proven that a person that ate McDonald’s for his meals for a full month ended up having some serious health changes. In conclusion, even though it is very easy to access and very cheap, fast food has some serious health issues and be very harmful.
When researching McDonald’s through online sources, it is clear that nutrition is a major concern of the public visiting the fast-food chain. Secondary research conducted shows that there are several case studies and other secondary source searches around the same topic. McDonald’s has often been the center of nutritional attention within the fast-food industry. Secondary research shows that the restaurant has recently made changes to the American Happy Meal to reduce the amount of French fries offered and replace the portion with fruit (Strom, 2011). In a study conducted by McDonald’s a secondary source reports the meal cuts calories by 20% for the children’s meal (Strom, 2011). This is a critical move by the organization on children’s obesity is currently a hot topic within food chains and attention is driven by the Obama administration. Secondary research also shows that although the public has major health concerns with the food chain, profits are increasing during a high point of an economic recession (Dahan & Gittens, 2008). Acco...
Fast food restaurant chains are a popular and convenient choice for eating on the go in our modern society. There are certainly several positive aspects to fast food establishments, but are the potential health detriments and collective negative effects on society worth it? Or would it be better to support locally owned and operated restaurants? Here I will examine several facts pertaining to these restaurants, as well as explain why I personally believe we should not frequent these establishments, but rather support local restaurants.
First, my personal reaction to this is documentary is an eye opener. I knew McDonalds was more harmful to than other fast food places, but I never knew about the lawsuit between McDonalds and it consumers. I never saw McDonalds as having big impact on my life; this is probably because the McDonald’s in my hometown never had a super-size option. In the video, Spurlock conducted interviews to gain ...
Top level management includes Jim Skinner, the concepts of the late Charles Bell, and the late James Cantalupo. James Cantalupo was a former vice-chairman who had overseen McDonald's successful international expansion in the 1980's and 1990's. He came out of retirement and took over as CEO in hopes of quashing the potential downfall McDonald's was facing. He was instrumental in developing a strategic plan called "Plan to Win" which was the starting point for the turnaround at the beginning of 2003. This Plan contains aggressive goals and measures for success based on the critical drivers of customer experience or the 5 P's: People, Products, Price, Place and Promotion. (Chief Executive, Salad Days) Today sales are strong in domestic markets and even higher in the global markets. The plan focuses on existing customers and by changing their image to promote healtheir
McDonald’s Golden French Fries, KFC’s Tender Chicken, Subway’s Scrumptious Subs, Taco Bell’s Mouth-Watering Tacos, all of which and more Americans devour on a regular basis. Though food items such as Tacos and Hamburgers were introduced in the late 19th century- early 20th century, fast-food restaurants however did not come into existence till’ early 1920’s. The first fast-food chain was opened in 1921 in Wichita, Kansas. They opened up selling burgers, fries and cola all for a mere price of 5 cents. Fast-food restaurants however did not become popular until after World War 2, when America officially becomes a fast-food nation. White Castle’s founder Walter Anderson’s business model was to have limited amount of choices in immense volume at a low cost. On top of this, the new hamburger restaurants were to serve their customers at lightning quick speed. All of which that creates the business models of fast food franchises, all over the world today. On the other hand the McDonald brothers introduced the method of making food at a low production cost. Making the food the customer eat low quality but still be giving costumers mouths tastes of heaven. Millions of Americans everyday munch on fast-food; although a vast number of Americans detests the fast food industry argue it has led to obesity and frailty in America. On the other hand numerous Americans argue saying that the Fast-food chains have boosted the unstable American Economy and continues to produce jobs compared to many America corporations who outsource their jobs. This brings up the question, is the fast food industry a devil or angel to this fast food nation?
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
McDonalds has always been a leader in the fast food industry. Through its dynamic market expansion, new products and special promotional strategies, it has succeeded in making a name for itself in the minds of the target customers. However, McDonald’s earnings has declined in the late 1990’s and 2000s. This is mainly due to a fiercely competitive industry and variety in customer tastes and preferences.
Innovation is an important aspect of business today. It is important for companies to be innovative in order to stay competitive with their competitors. Innovation can come in different forms depends on the company’s objective. KFC, one of the most popular fast-food restaurants by the Yum! Brands, chooses to be innovative for their business model. Although, there is a huge amount of fast food chain available in the global market, KFC found the key to stand out from the intense competitive environment. By expanding the business to China, KFC learned unprecedented success by being different, not by being the same. The company’s business model is all about adapting to the local culture and understanding the needs of the Chinese market. Three main innovative strategies of KFC in China are localizing the menu, understanding the Chinese culture, and hiring local management.
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
Another point of reason I would like to argue about is fast-food restaurants are everywhere and it is difficult for one to find any alternatives. I would also like to ask of the consumers to look at it from another view. There are many choices available to consumers each day some can do harm, while othe...
Burger King uses a dispersed configuration for day to day operations as the majority of their restaurants are franchises with local suppliers. Yet Burger King Headquarters uses a concentrated configuration for marketing and development of products, as well as pricing. This centralization of marketing assists all franchises worldwide and provides the greatest value for the company, but the direction of available products and pricing has proven detrimental to the overall success of the firm. An article on CNNMoney.com describes the failure of the $1 double cheese burger to stimulate sales and how a number of franchisees filed lawsuits against the headquarters due to being forced to sell the double cheese burger at less than cost in order to boost revenues for the headquarters and shareholders and not the franchisees.