The Fast Food Restaurant Industry - Analysis of the Pizza Industry
THE RESTAURANT INDUSTRY AND HISTORY
Where and when did the fast food concept come into play? Consider the hamburger. While German immigrants brought the first "Hamburg Style Steak" to the United States in the early 19th century, the humble hamburger, "White Castle," became the basis for a new kind of restaurant in 1916 called "the fast food chain". J. Walter Anderson, who sold five-cent hamburgers with french-fries and colas, opened the oldest burger chain. Other restaurants followed and in 1948 brothers Richard and Maurice "Mac" McDonalds figured out a fresh approach that would produce fast food even faster. They eliminated waitresses and indoor tables from their hamburger stand, cut down on menus, streamlined food operations and lowered prices. Richard built the stand's giant golden arches, which emerged through the roof. In 1954 Ray Kroc, a milk shake machine salesman, paid the brothers a visit and was overwhelmed by the volume of business the McDonald's were serving up with bags of burgers and fries with factorylike efficiency. Kroc envisioned a string of establishments across the country. He made a deal with the McDonalds under which Kroc got the right to use their name and methods in franchising the concept. The brothers would get a bit more than a quarter of the 1.9% of the franchisees' gross to be collected by Kroc. The McDonald's concept spread like a brush fire and the rest is McHistory. Ray Kroc, who built the McDonald's Corporation, and his belief that there was equal beauty in the expanding restaurant business, definitely envisioned the future of the fast food industry most accurately.
INDUSTRY CHARACTERISTICS
The restauran...
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...ine-month period ending September 26, 1999, as compared to same period ending September 27, 1998, has been highlighted in Table 5 for Balance Sheet accounts and Chart 6 highlights Revenues, Selected Expenses and Net Income on the following page.
Expressed in Thousands of $$ - TABLE 5
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9 MONTHS 9 MONTHS % OF
ENDED ENDED INCREASE/
9/26/99 9/27/98 (DECREASE)
BALANCE SHEET
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Current Assets $ 79,474 $ 68,023 16.8%
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When it comes to picking out a restaurant with family or friends things tend to get complicated. One person might want to go to a steakhouse, while the other wants Italian. Choosing a restaurant should focus on the quality of the food, the pricing of the food, and the competitiveness of that restaurant to its competitors. Olive Garden is one of the most revered Italian-American restaurants in the United States compared to its leading competitor, Maggiano’s. Olive Garden leads in lower prices, food options, complementary food, and even has lighter options for the health conscious.
Applebee’s is a casual-dining chain owned by DineEquity based out of Glendale California. DineEquity, who also owns IHOP, acquired Applebee’s in 2007 for about $2.1 billion. The chain as of 2013 has over 2000 locations with plans to open even more in the future. The merger with IHOP resulted in being the largest casual dining company world with over 3,000 locations worldwide.
The first fast food restaurant, which was invented in 1916, affected neither people nor their weight until the 1950’s. In the 1950’s, people were inspired by the first fast food restaurant to make their
Subway, one of the present leaders in the fast food industry was set up in 1965 in Bridgeport, Connecticut by Fred DeLuca. A family friend of him suggested this idea to help him pay for his education to fulfill his dream of becoming a doctor. Dr. Peter Buck, one of Fred’s friends agreed to be his partner with a loan of $1,000. There was a huge growth in the business relationship that changed the landscape of the fast food industry.
McDonald’s was created by the McDonald’s brothers(hint the name), Maurice and Richard, who wanted, from the beginning, to start their own business. After four years of trying to run a movie theater, the brothers decided to start a drive-in restaurant. By 1940’s the brothers started earning $50,000 a year. Instead of being happy, the brothers grew bored. Together they came up with a new idea and remodeled their whole place into a fast food place. No more serving people in their cars, time to serve people fast and cheap. Revolutionizing the food industry
“If you live in a free market and a free society, shouldn’t you have the right to know what you’re buying? It’s shocking that we don’t and it’s shocking how much is kept from us” (Kenner). For years, the American public has been in the dark about the conditions under which the meat on their plate was produced. The movie, Food Inc. uncovers the harsh truths about the food industry. This shows that muckraking is still an effective means of creating change as shown by Robert Kenner’s movie, Food Inc. and the reforms to the food industry that followed its release.
The New York Times bestseller Fast Food Nation: The Dark Side of the All-American Meal is one of the most riveting books to come out about fast food restaurants to date (Schlosser, 2004). Fast food consumption has become a way of life for many in the United States as well as many other countries in the world. The author Eric Schlosser an investigative reporter whose impeccable researching and bold interviewing captures the true essence of the immense impact that fast food restaurants are having in America (2004). Beginning with McDonald’s, the first fast food restaurant, which opened on April 15, 1955 in Des Plaines, Illinois to current trends of making fast food a global realization McDonald’s has paved the way for many fast food restaurants following the same basic ideal that is tasty foods served fast at a minimal cost (2011). Schlosser explains how fast food restaurants have gained substantial market share of the consumers; he also shows that by marketing to children and offering less unhealthful fare, that are purchased from mega-companies which are often camouflaged with added ingredients and cooked unhealthful ways, that these companies are indeed causing irreparable harm to our country (2004).
Everyone has heard of McDonald’s, but where did this familiar name come from? When people think of American food, it is not uncommon for two golden arches to appear in their minds. This story began with two brothers Dick and Mac McDonald who owned and ran a small restaurant in San Bernardino, California during the 1940s. In 1954 a man named Ray Kroc came across these two brothers while selling multi-mixers and was impressed with the business they were running. The menu was compact, listing options for only a few burgers, fries and beverages, but the restaurant was effective in its operation. Ray Kroc pitched the idea of spreading McDonald’s restaurants across the United States and in 1955 he founded the McDonald’s Corporation. By 1960 he bought the exclusive rights to the name. Kroc was able to expand substantially on this small business so that by 1958 McDonald’s sold its 100 millionth hamburger. (“McDonald’s.com”)
The greatest proliferation of fast food has received in America. The history of American fast food started in 1912, when the company Horn & Hardart opened the first diner of fast food under the name "Automatic" in New York. This way of eating has become wildly popular and revolutionized the field of nutrition. Fast food as an industry emerged in the 1920s in America. A pioneer in this field was the company “White Castle”, which opened in 1921 in Kansas. Specialty of this company was the burgers, which at that time Americans were a rarity. Potential buyers were especially happy with stable price for food. Despite the Great Depression, the Second World War and inflation the company until 1946 sold their hamburgers for five cents. When some visitors began to think about how harmful such foods can be, the owner of a network, Billy Ingram, invented a clever move. He hired several young people who for a small fee daily came in White castle in white coats, and they ordered hamburgers. Visitors mistook them for doctors and calmed down. If even doctors eat hamburgers, it means that it is really safe for health.
One of the following is an environment analysis of “largest Pizza chains” in the US and International. In the following sections, we will assess the environment analysis on “consumer satisfaction” and its re-formulated pizza recipe. Within the re-formulating and the expansion of its menu, we will see how they have been able to recapture some of the market with existing and new customers, with customer satisfaction and excellent delivery. Domino’s Pizza, for example, they have re-formulated their ingredients and added new items to their menu, but like Pizza Hut, Papa John’s, and Little Caesar, we will discuss their strength’s and weakness to be able to survive in the Pizza Industry. Within this report, I will cover the existing/future components of the general environment such as demographics, economics, political/legal, sociocultural, technological culture, and their efforts to remain a competitor in the industry.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
Fast food outlets actually have been existed from millennia in China, India and ancient Europe. In the past, many people cannot afford to have a kitchen and this becomes the main reason they buy their food in fast food outlets (Reverse Your Age, 2013). The perception of fast food started to change in twentieth century. The first company that change the culture and perception of fast food was McDonald’s, followed by their future competitors such as KFC, Burger King, Wendy’s, Taco Bell, Pizza Hut and Subway. As they get a good appreciation from the customers followed by the impact of the globalisation, almost all of the fast food companies have been expanded their restaurant chain in many nations (Wojtek, 2013). Nowadays, with our busy life schedule and the increasing trend where women entering workforce promote an opportunity for the fast food industry to grow bigger. We can see the significant growth from the fast food industry as the industry itself has been generated over $160 billion in 2012 compared to their revenue in 1970 which only around $6 billion (Franchise Help, n.d.). With this significant growth, it does not mean that every company in this industry are successful. Some company has to closed some of their stores due to the lack of environmental research and preparation in entering a new country which commonly lead to the poor selling rate. The deeper explanation and points that is mention below will be also represent as the industry current state.
・The level of rivalry among organizations in an industry – There are many competitors in the pizza’s fast food industry. For example, Domino’s Pizza Inc., Yum Brands Inc.’s, Papa John’s International Inc., and Pizza Hut. In the gourmet pizza industry, there are famous companies such as Mod Pizza LLC, Pieology Pizzeria, and PizzaRev. These companies are strong competitors.
The Baked Potato Restaurant will be a moderately priced 75 seat fast-food restaurant located in the beautiful city of London, offering family style menu and other different baked potato menus. The Baked Potato Restaurant new to the London area and have diversification opportunities by offering new food products in the new market. A major challenge facing baked potato is how to attract new customers, increase profits and make better use of its resources during the initial stage. As a new restaurant we face competition from the giants in the fast food industry.
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.