Preview

The Fast Food Industry: Positioning and Competitive Advantage

Best Essays
Open Document
Open Document
3286 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Fast Food Industry: Positioning and Competitive Advantage
The Fast Food Industry: Positioning and Competitive Advantage

INTRODUCTION The fast food industry is an ever growing industry regardless of the concerns from many about the health and obesity risks. Despite these risks associated with fast food consumers continue to return indicating there is a high level of competition amongst several members of this industry. This paper will examine and discuss the five following major fast food restaurant chains: McDonald’s, Burger King, Wendy’s, Taco Bell, and Sonic. The all intensive purpose of this paper is to focus on the fast food restaurant industry by exploring the above mentioned chains, the competitive factors in which encompass the industry, the company level factors that capture the firm’s positions relative to others in the industry, and how each firm is able to sustain a competitive advantage. Ultimately, the intent of this paper is to convey a complete understanding of the industry and how they sustain their positions as well as competition.
Industry
The fast food industry seems to have a pull on all different types of people across the United States. To simply put it, for the average busy American it is fast, convenient, and easy. Not only does the fast food industry employ almost two million employees it also sells over $100 billion dollars worth of fast food every year (Naik, 2010). The above statement gives us a better picture of the impact the fast food industry has on the United States. Accordingly, we will begin to explore the following five restaurants individually: McDonald’s, Burger King, Wendy’s, Taco Bell, and Sonic. The next segment will give a small profile of each company describing each fast food restaurant.

McDonald’s
McDonald’s is well known for their hamburgers and french fries. McDonald’s has a menu that is appealing to everyone from the health conscious person with salads and oatmeal’s to the preschool kid with happy meals and a toy. According to the McDonald’s website, “McDonald’s is the


References: 7 reasons wendy’s surpassed burger king. (2012, April 27). Retrieved from http://www.investopedia.com/financial-edge/0412/7-Reasons-Wendys-Surpassed-Burger-King.aspx Burger King Choi, C. (2012, April 2). Burger king 's new menu -- a lot like McDonald’s.AP news. Retrieved from http://finance.yahoo.com/news/burger-kings-menu-lot-mcdonalds-144416062.html Competitive advantage.(n.d.) Fast food restaurants have right menu for recession. (2009, July 30). Retrieved from http://seekingalpha.com/article/152544-fast-food-restaurants-have-right-menu-for-recession Holmes, D Mcdonald 's history. (2012). Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html?DCSext.destination=http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html McEwen, W Morris, S. (2010, July 08). Forecasting: 'fresh ' will take wend 'ys farther than new salad line. Retrieved from http://www.qsrweb.com/article/127220/Forecasting-Fresh-will-take-Wendy-s-farther-than-new-salad-line Sonic (n.d.) United States Census (2012). Frequently Asked Questions. Retrieved from: http://www.census.gov/eos/www/naics/faqs/faqs.html Wendy’s (n.d)
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Industry Analysis Chipotle
    • 1962 Words
    • 8 Pages

    Industry Analysis Chipotle

    The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).…

    • 1962 Words
    • 8 Pages
    Best Essays
    Read More
  • Good Essays

    First Day Rhetorical Analysis Essay
    • 904 Words
    • 4 Pages

    First Day Rhetorical Analysis Essay

    Due to its renowned simplicity, consistency, and familiarity, McDonald’s has become a universal staple in everyday life since 1955.…

    • 904 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    How Does Eric Schlosser Use Ethos In Fast Food Nation
    • 532 Words
    • 3 Pages

    How Does Eric Schlosser Use Ethos In Fast Food Nation

    He begins the book by letting readers how much the average American person spends on fast food each year. He points out that that the society spends more money on fast food than higher education. Schlosser then continues the book by giving the history of fast food and gives short stories of several originators of fast food chains such as McDonald’s, Burger King, Taco Bell, Wendy’s, and Kentucky Fried Chicken. The biography of each “pioneer” of a fast food restaurant chain helps to add to Eric Schlosser’s logos appeal while adding interest to the story. The writer also uses an abundance of numerical data and facts to support his writing. For instance, when explaining the growth of fast food in society, Schlosser writes, “In 1970, Americans spent about $6 billion on fast food; in 2000, they spent more than $110 billion”(Schlosser, Eric. Fast Food Nation. New York: Houghton Mifflin, 2001.…

    • 532 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Eric Schlosser's Fast Food Nation
    • 731 Words
    • 3 Pages

    Eric Schlosser's Fast Food Nation

    In Fast Food Nation Eric Schlosser expands on why Americans should ditch fast food restaurants. He explores the origin of the most successful fast food chains, including McDonalds, Taco Bell, and Burger King. Split up into different sections, Schlosser describes the unsanitary kitchens, the underpaid employees, and the unsafe meatpacking industry. Above all the common theme found throughout this nonfiction book is the underlying greed found throughout the entire fast food industry.…

    • 731 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Rhetorical Analysis
    • 480 Words
    • 2 Pages

    Rhetorical Analysis

    McDonald's is commonly known as a satisfying fast food restaurant that can be found all over the United States. It has great tasting food and a warm, fun environment for parents and children. McDonald's continuously tries to be portrayed as a healthy, happy, and family friendly setting to attract their intended audience but in reality, this food is extremely bad to eat. They provide commercials and advertisements that look very appealing to the human eye because the meals they sell are commonly eaten in the United States. Between the food and the environment, it is hard to pass up a trip to this restaurant. They are most famous for their burgers, fries, and milkshakes which are typical meals that young kids and their parents like to snack on without realizing how unhealthy they can be. Ronald McDonald, the restaurant's character, is an interesting man that looks like a clown, which is an attraction to a little kid that wants to eat there. McDonald's is a great example of how restaurants say and do whatever it takes to get more customers using pathos and ethos.…

    • 480 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    U.S.A's Fast Food Industry
    • 1330 Words
    • 6 Pages

    U.S.A's Fast Food Industry

    Fast food restaurants represent one of the largest segments of the food industry with over 200,000 restaurants and $120 billion in sales in the U.S. alone. Fast food restaurants, also known as quick service restaurants, are noted for their short food preparation time. Some of the largest players in this category include international giants like McDonald 's and Yum! Brands, national chains such as Wendy 's and Burger King and regional players like Jack In The Box and Sonic. Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market. The characteristics of perfect competition include: large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is the price taker. Many fast food franchises fit all or most of these characteristics. Competition within the industry as well as market supply and demand conditions set the price of products sold. For example, when Wendy 's introduced its $.99 value menu, several other companies implemented the same type of changes to their menu. The demand for items on Wendy 's value menu was so high because they were offering the same products as always, but at a discounted price. This change in market demand basically forced Wendy 's competition to lower prices of items on their menu, in order to maintain their share of the market. The previous example illustrates the elasticity of the fast food industry. Supply and demand set the equilibrium price for goods offered by franchises within the industry. Competitors of Wendy 's must accept the prices established by the consumer demand for the value menu. If consumers didn 't respond so positively to Wendy 's changes, other firms wouldn 't have had to adjust prices. On the flip side of this concept, there is no need for franchises to further…

    • 1330 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Best Essays

    blah by blah
    • 1560 Words
    • 7 Pages

    blah by blah

    "Life in the Drive-Thru Lane: a Look at the Impact of Fast Food on America."StudyMode.com. StudyMode.com, 02 2008. Web. 02 2008. .…

    • 1560 Words
    • 7 Pages
    Best Essays
    Read More
  • Good Essays

    Are Fast Food Establishments Making Americans Fat
    • 4894 Words
    • 20 Pages

    Are Fast Food Establishments Making Americans Fat

    Wendy's, traditionally known for its square-shaped hamburgers, offers a low-fat chili dish that the Minnesota Attorney General's office recommended as a "healthier choice" in its fast-food guide. (18) McDonald's has continuously revamped its menu in recent years. On March 10, 2003, the company unveiled a new line of Premium Salads that feature Paul Newman's Own All-Natural dressings. In its publicity blitz, McDonald's facetiously asked, "What's Next? Wine Tasting?" Meanwhile, Burger King features a Broiled Chicken Teriyaki in addition to its traditional fare. Judge Sweet notes that the Subway sandwich chain, which boasts of healthy choices, hired a spokesman who apparently lost 230 pounds of weight while eating the "Subway Diet.…

    • 4894 Words
    • 20 Pages
    Good Essays
    Read More
  • Powerful Essays

    Alternatives to Healthy Fast Foods
    • 1389 Words
    • 6 Pages

    Alternatives to Healthy Fast Foods

    Today the purpose of this introduction is to show how the fast food industry can…

    • 1389 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    MARKETING SEGMENTATION, TARGETING AND POSITIONING OF BURGER KING
    • 1076 Words
    • 4 Pages

    MARKETING SEGMENTATION, TARGETING AND POSITIONING OF BURGER KING

    Burger King have dividing their market into demographic factors, geographic factors, psychographic factors and behavioral factors. As geographic factors, Burger King are dividing the customer by region , they located in USA since 1954.On June 30, 2004, Burger King had 7,976 store all around in USA, the local people can just came by their neighborhood to enjoy their meal. As demographic factors, they dividing the customer by young male, kids and family. Burger King Start to use a logo which is a man sitting on a hamburger and holding a soft drink to represent their company in 1955.In 1960, Burger King transformed their logo from a man into an animated cartoon character that a kid wearing a crown in their television advertisements, introducing children to BURGER KING with the famous slogan, "BURGER KING®, Where Kids Are King!" In order to take the kids as potential customer, Burger King had to including…

    • 1076 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Wendy's and Jollibee
    • 799 Words
    • 4 Pages

    Wendy's and Jollibee

    In 1969, Wendy’s was founded by R. David Thomas in Columbus, Ohio and was considered one of the leading fast-food chains in the world. At Wendy’s inception, the brand represented Wendy’s competitive advantages in the marketplace for being known for its innovation to their menus such as the Salad Bar, Hot-Stuffed Baked Potatoes and the whole breast Chicken Sandwiches aside from its great tasting hamburger. Wendy's set an industry practice by offering old fashioned and made to order hamburgers using fresh meat. “To become bigger than McDonald’s” but not “another McDonald’s” was the goal of Thomas that also serves as his motivator for his action plan in Wendy’s growth development. As the fast-food industry is growing, Wendy’s has remained committed to providing the highest quality and freshness foods while assuring competitive prices where quality and freshness was conceptualize for the guidance of its employees in garnishing the products, thus with its slogan “Quality, It’s Our Only Recipe.” where hamburger was made with 100% pure beef and was always served fresh and never frozen. Wendy’s also became known for its square burger patties so that it stuck out of the sandwich bun as it shows uniqueness or innovative approach for its product. With such variety of condiments and other unique products offered, Wendy’s enjoyed the growing popularity…

    • 799 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Strategies and Promotions for Burger Business
    • 275 Words
    • 2 Pages

    Strategies and Promotions for Burger Business

    * The build-your-own-burger option appeals to nearly two of three diners and 64% say they want to at least customize their burger’s toppings.…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Causes for the Popularity of Fast Food Restaurants
    • 1088 Words
    • 5 Pages

    Causes for the Popularity of Fast Food Restaurants

    In this modern lifestyle the popularity of fast food restaurants are growing every day. Fast food restaurants have appeared in large quantities all over the world and these restaurants have become more popular, because fast food can be prepared and served very fast. Jessica Williams (2007, p. 216) finds that “Fast food restaurants were firstly appeared in Unites States in the 1940s. Today there are hundreds of thousands of them. According to Eric Schlosser in his book, Fast Food Nation, the amount of money Americans spent on fast food went from $6 billion in 1970 to more than $100 billion in the late 1990s. Twenty five percent of the population eats at a fast food restaurant every day. Although fast food started in the United States, it has spread across the world and its popularity is growing day by day.” The variety of people, especially adults and young people prefer to eat fast food from restaurants than home cooked food. There are numerous reasons for the popularity of fast food restaurants among which most important reasons are that they are inexpensive and easily available in various taste and varieties. This essay attempts to explain about the various causes for the popularity of fast food restaurants. This essay will explain three main causes for the popularity of fast food restaurants. These three main causes are: fast foods are inexpensive, fast foods are available in various tastes and varieties, and it is a way of socializing with friends and family.…

    • 1088 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Managerial Economics
    • 3767 Words
    • 16 Pages

    Managerial Economics

    The Minimum Wage Ordinance Cap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The executive branch proposed a minimum wage of HK$30 (~US$3.871) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011. It came into effect on 1 May 2011. Prior to this, there had also been a fixed minimum wage for one specific class of workers, foreign domestic helpers, of HK$3,740/month.…

    • 3767 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Fast Food
    • 1905 Words
    • 8 Pages

    Fast Food

    The fast-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 North America, McDonald's is followed by Subway, Burger King, Wendy’s, Starbucks, Taco Bell, Dunkin’ Donuts, Pizza Hut, KFC. All in particular order to the amount of sales in North America in 2010.…

    • 1905 Words
    • 8 Pages
    Powerful Essays
    Read More