Analysis of the Pizza Industry Essay

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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…show more content…
Restaurant operators have found it easier to grow by acquisition rather than internal development. This is significant since acquiring companies do not have to perform a great deal of market analysis of a particular customer base or geographical market area. This industry is intensely competitive with respect to price, service, location and food quality. There are many well-established competitors with substantial financial and other available resources. Some competitors have been in existence for a substantially long time and some franchisees are established in good markets. It is extremely competitive for the consumers' dollars. These restaurants not only compete with other restaurants, but other generic forms of competition; such as eat-at-home foods and supermarket deli take-out arrangements. The business is very capital intensive. It can cost approximately $1 million dollars to open a new fast food store and even more for traditional dining establishments. Most fast food chain restaurants are franchisee operated. The industry is segmented into two major categories: fast food and full-service restaurants. ENVIRONMENT & OVERVIEW OF THE MARKET Traditionally, restaurants (and hotels) have been among the most entrepreneurial of businesses in the sense that the barriers to entry are relatively weak or minor. Factors creating environmental changes were a result of the early 1970's when dual-income families became the norm and

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