...millions of consumers partake in fast food. By definition, fast food is food that can be prepared and served very quickly. A typical fast food meal in the United States includes a hamburger, French fries, and a soft drink. Out of all of the fast food restaurants in the United States, there are two companies that comes to mind that are the biggest chains in the country. Those two fast food chains are Burger King and McDonald’s. These two companies own more than half of the fast food market in the U.S. With that said, in the past couple of years there has been concern over the obesity rate in the United States. People believe that fast food is a factor because of how easy it is to get it and the price range of it. Because of the perceptions of fast food, every one is looking to the biggest fast food chains to set the example and make their menus healthier. McDonald’s and Burger King are the two fast food chains trying to convert their menu to provide healthier foods, each in their own way. Before looking at the menus of both fast food chains, one has to understand the history. What made them who they are today? How was it created? When did it go public? The first restaurant is McDonald’s. In 1937, Patrick McDonald opened “The Airdome”, which was a food stand in Monrovia, California. Hamburgers were ten cents and all you can drink. In 1940, his two sons, Maurice and Richard, brought the food stand from their father and moved the entire operation 40 miles and changed the name...
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...In-N-Out Burger History and Overview. The history of In-N-Out Burger starts with the company’s founders, Harry and Esther Snyder. Harry was a WWII veteran who worked as a caterer of baked goods. Esther was a surgical nurse in the Navy, and later got a degree in Zoology. They met each other at the restaurant Esther was managing after she graduated from college. Neither had experience in the fast food industry, which was just starting at that time, but in 1948, the couple opened the first In-N-Out in the Los Angeles, California. Harry was the first to allow drivers to make orders over a two-way intercom system, creating the first Drive-thru experience. Snyder had a simple goal for his restaurant, to give the customers “the freshest, highest quality foods you can buy” while providing “friendly service in a sparkling clean environment”. Soon people started to become interested in this idea. Two years later the couple opened the Second In-N-Out Burger. The chain had huge potential to explode but the couple was very focused on quality control. This resulted in only 18 restaurants being opened over the next 28 years before Harry Synder passed away in 1976 from lung cancer. After Harry died his son who had worked in the restaurants all his live, took the role as company president being just 24 years old. While Rich controlled the company it experienced huge growth. In twenty years the company opened over ninety In-N-Out Burgers. Over this time only one new thing was added to the menu...
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...companies that I will be conducting my research on and presenting will be in the Fast Food Industry. The two companies are McDonalds and Burger King. Bothe companies are doing well and have shown considerable amounts of profit for the last five years. These companies are ranked No. 1 and No. 2 in the industry. Background Industry A McDonalds- The McDonalds Corporation is the world’s largest fast food chain in terms of sales. McDonalds is a restaurant that specializes in fast food such as; hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. McDonalds currently has 31,489 restaurants in 118 countries, and about 80% are run by franchises or affiliates. McDonalds competition in the fast food industry are; Yum! Brands Inc. In order to compete with its rivals, the company focuses on “being better, not just bigger” by making their products more affordable. Background Industry B Burger King- Burger King is the second largest fast food restaurant in the world. Burger King is the original Home of the Whopper, and is committed to premium ingredients, signature recipes, and family-friendly dining experiences. Burger King’s menu consists of hamburgers, French fries, soft drinks, milkshakes and desserts. Burger King competes in the industry by revamping their stores, and increasing their advertisement. History of Company A McDonalds is known as a pioneer in the fast food industry and is best known for their strong branding that is known in...
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...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 line up to the end product. The Arch Deluxe fails and cost them over 100 million dollars in advertising. McDonald’s Arch Deluxe Analysis - Why It Failed INTRODUCTION McDonald’s has been in the hamburger business since the 1950’s and started out as a small restaurant owned by the McDonald brothers in Southern California. Ray Kros happened to sell some restaurant equipment to these...
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...Burger King Marketing Mix Introduction Based in Miami, Florida, Burger King is one of the worlds best known fast food restaurants (it is the second largest company in the world). The company’s 40,000 plus employees helped it earn over $190 million dollars in 2008. Its success is reflected in a 28.4 percent increase in net profits for FY 2008. Currently Burger King operates in about 71 countries worldwide, but it all began in Miami where the first restaurant was opened in 1954, and began to grow exponentially after the introduction of the Whopper sandwich in 1957. The firm became a publicly traded company in 2006. Product * As a fast food hamburger restaurant (FFHR) chain, Burger King produces, hamburgers, cheeseburgers as well as Fries, Salads, Hash browns, Onion rings, Coffee, Juice, Shakes, cookies and pies. * Burger King sets itself apart from competition with its “have it your way” theme which allows individualize each orders with many options including fries or onion rings, cheese, bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion. * The nation's No. 2 burger chain will add Starbucks Corp.'s Seattle's Best Coffee to all its U.S. restaurants in a phased roll-out that begins in the summer of 2010. Under the effort, more than 7,000 Burger King Restaurants will begin selling the coffee along with iced varieties that also come with a choice of plain, vanilla or mocha flavors and whipped toppings. * Burger King has signed a licensing deal...
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...The Fast Food Industry The last 50 years or so have been turbulent ones for America. Millions of “Rosies” may have quit riveting but they did not quit working, and the Civil Rights Movement resulted in fundamental changes in American society that have leveled the playing field for most workers today. A costly police action was fought in Korea that is still smoldering today, and the last vestiges of the Vietnam War were finally played out in the most recent presidential election. During the last 50 years or so, America succeeded in landing a man on the moon and safely returning him to the Earth, and winning a costly Cold War. During this turbulent period in U.S. history, life has become faster-paced and more women have joined the workforce, all of which have been to the detriment of “traditional” American family meals, but all of which has been to the enormous advantage to the fast food industry. People around the world today may criticize America’s politics, but the fact remains virtually everyone loves American fast food and the industry has become firmly established around the world. This paper provides an overview of the fast food industry from the 1950s to the present, an analysis of what social effects were caused by and reflected in the industry, what marketing and advertising changes have taken place in the industry during this time, followed by a discussion of current and future trends. A summary of the research is provided in the conclusion. Review and Discussion ...
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...corporation, including its background, followed by a financial overview with comments for each financial category reviewed, the a comparison of financial ratio’s between McDonald’s and it rival Burger King derived from their 2009 and 2009 annual reports. Finally a support will be provided based off of all findings. Part One: Company Description The McDonald’s Corporation is a well-known restaurant chain that franchises and operates fast food restaurants worldwide. Reuters (2011) states that each restaurant is operated either by the Company or by franchisees. This includes conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The company’s mission is to be our customers' favorite place and way to eat (McDonald’s, 2011). Company history McDonald’s history originates in 1940, when it started out as McDonald’s Bar-B-Que by Dic and Mac McDonald. In 1948 McDonald’s was officially founded serving only nine items, which included a 15-cent hamburger. In 1955, Ray Kroch opens his first McDonald’s on April 15. This was the first franchised McDonald’s. It was also the first building to include the Golden Arches. In 1955, the company celebrated it first public stock offering and the rest is history (McDonald’s, 2011). Also, McDonald's has been an Olympic sponsor since 1976 (Reuters, 2011). Organization McDonalds’ Chief Executive Officer...
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...1 Running head: “FIVE GUYS BURGERS AND FRIES: INGREDIENTS FOR SUCCESS” “Five Guys Burgers and Fries: Ingredients for Success” A Review of the Literature Dr. Steven Brown Contemporary Business 508 November 27, 2013 2 “Five Guys Burgers and Fries: Ingredients for Success” Abstract The world famous Five Guys Burgers and Fries all started back in 1986 when Jerry and Janie Murrell offered sage advice to the four young Murrell brothers. “Start a business or go to college.” The business route won and the Murrell family opened a carry-out burger joint in Arlington, Virginia. The Murrell family only served hand-formed burgers cooked to perfection on a grill along with fresh-cut fried cooked in pure peanut oil. During the 1980’s and 1990’s they perfected their simple system, it was the place to get a fresh, juicy burger with all the toppings you could stuff between fresh-baked buns. In early 2003 the family started offering franchise opportunities in just less than 18 months; Five Guys Enterprises sold options for over 300 units. The overwhelming success of franchising a local restaurant made national news with articles in trade publications. Now, over 20 years after Five...
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...McDonald’s Global Business McDonald’s corporation was founded in 1954 by Raymond Kroc with the first restaurant opening the following year. The first restaurant was located in Des Plaines, Illinois with only hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie on the menu. The efficiency of the company, as well as the welcoming family environment, led the restaurant to be very successful. Once McDonald’s saw the success of its original store, it began opening stores all over the United States and in a mere 10 years, there were over 700 McDonald’s franchises in America. In the beginning, the McDonald’s arches were their signature marketing tool. The arches were easily recognizable by most Americans, thus distinguishing McDonald’s. When the company first began, they relied mostly on word of mouth. The best way for new customers to hear about the restaurant was by hearing about it from the people close to them, whose opinions they trust. They also broadened their marketing campaign in 1966 by releasing their first television commercial. However, as time went on McDonald’s had to begin looking into creative ways to gain new customers while building off of the techniques already in place. McDonald’s decided to adopt the “act like a retailer and think like a brand” mentality. They want to focus on delivering sales in the present while protecting the long-term brand reputation (Shaikhs). They continued using the differentiating arches to remind consumers that...
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...Burger King’s History – Burger King was founded in 1954 in Miami, Florida. The corporation was initiated by James McLamore and David Edgerton. Prior to starting Burger King James and David had been deeply involved in the restaurant business. Their main idea for the restaurant was center around a place that people would come to and get the best quality food. They also wanted the experience to be in a pleasant atmosphere. Burger King operates more than 12,000 restaurants in all 50 states and in 76 countries worldwide. About 10,800 of those restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Below is their mission statement. Burger King’s Mission Statement – “We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will conduct all our business affairs ethically, and with the best employees in the mid-south. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization." GAP Analysis: Where is your company now? Burger King Holdings, inc. was been founded in 1953. Burger King is the world'snumber 2 hamburger chains after McDonalds. By the early 2000s Burger King is a littleleft behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of...
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...INTRODUCTION The reason how McDonalds Restaurant became a well-established brand around the world began with the series of strategies they used throughout the years in building its success. From the beginning there was only a local food stand more like the food trucks on the streets now to becoming the multi-billion corporation with over a billion employees. The way McDonalds is able to penetrate through different markets around the world is very amazing because they may be the only fast food brand that could be found around the world with the possibility of finding one just at a corner near you. The brand is well known around the world yet they may only know the name and that it is a fast food restaurant. Yet different countries or cities may have discrepancies in menu engineering where the company accommodates to the food preferences of the people or the culture of the regions. As many may know, operating a hospitality establishment requires much effort to maintain and operate while the failure rate of restaurants are statistically calculated to be quite high. As discussed by the “RestaurantOwners” website, “Within a 90 percent confidence interval, CRG found that the first year failure rate for startups averaged 23 percent over four years in that market. Based on the study, you could say that there is a one in four chance a new startup will fail.” Nonetheless all company may have there ups and downs while the McDonalds Restaurants brand reign in the fast food market for...
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... trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset Boulevard, are analyzed in...
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... From there, the chain spread steadily: over a six-month period in 1971, Golden Arches popped up on three new continents, as stores launched in Japan, Holland and a suburb of Sydney. McDonald’s was next introduced to South America in 1979 when a store opened up in Brazil. Four year after opening its next international restaurant in Casablanca, Morocco it opened it franchise in Belarus making it spread to its 100th nation. Throughout all these nations McDonald’s menu varies. What is offered at each restaurant depends on the location and what the people they are serving like. For example in France Le Royal Deluxe is the second biggest seller, it is a mustard-topped burger. At some Asian locations serve fried shrimp in a Big Mac roll, while McDonald's in India don't serve beef at all, relying instead on burgers made from veggies, rice and beans. Even though all these different options are offered at different McDonald’s some people...
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...and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsen s or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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...and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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