The article I chose for the assignment is about the Shake Shack IPO (Initial Public Offering) and the environment in which is was released. The restaurant’s stock launch was a major success, as the price per share skyrocketed at a growth of 119% from $21 to $45.90, in one day of trading. With the intense growth that Shake Shack experienced, the chain of 63 restaurants was valued at $1.6 billion, which had investors pouring in. While it was expected for Shake Shack to be a success on the launch of their IPO, their valuation and continued growth has shown the shift in the market of restaurants. Society has moved from the fast food era, to a new adaptation, “fast-casual”. Restaurants such as Noodles, Chipotle, Garbanzo, and many others have capitalized on the shift from value to quality based desires. …show more content…
With the number of burger restaurants growing at 10 times the average rate from 2008-2013, the market has become vast. That being said, because Shake Shack has established itself as a power player in the market, the chain doesn’t have to worry about stealing market share from the fast food chains. The pull of a better dining experience, higher quality, offering beer/wine, and while still maintaining prices similar to the fast food chains, Shack Shake has been able to grow not only in the investing field, but also expanding their customer base. Due to the success of the “boutique burger shops” fast food chains are scrambling to compete, with Carl’s Jr. coming out with antibiotic free burgers, and McDonald’s trying create a premium menu with higher quality
As mentioned in the case study, Panera Bread Company is known to be one of the leading bakery/café that offers freshly baked pastries and French inspired entrées across various states in the US. However in the recent years, Panera Bread faced a decrease in their usual high growth rate from 9.1% and 12.0% in the year 2000 to merely 0.2% and 0.5% of comparable sales and annualized unit volumes respectively.
The way that Burger King and other fast food restaurant chains do business and markets their products to consumers is due to the change in our society to where the consumer wants the biggest, fastest, and best product they can get for their money. This change in society can be attributed to a process known as McDonaldization. Although McDonaldization can be applied to many other parts of our society, this paper will focus on its impact on Burger King and Taco Bell restaurants. My belief is that the process of McDonaldization has lead our generations toward a more a much more efficient lifestyle, with much less quality. From my observations and studies of these fast food resturants, several themes have become
Eric Schlosser’s first strategy is to start off the article with pathos. He begins with pathos because it appeals to the emotions so it is more personal than the other strategies. He discusses how McDonald’s was known for its fries. According
For this paper I choose a well know fast food restaurant, which is “Chick-fil-A”. Chick-fil-A is a restaurant that they focus on all ages, and any kind of people. On March 25, I personally went to the “Chick- Fil- A” that located beside the Pasadena City College and observe. Chick- Fil- A is a company that tries to focus on every age as possible as they can, even though the price that they had marked is high than the McDonald, Jack in the box, etc... but they are giving costumer the better quality of foods. However when I site down and observe I found out there are few families with kids, old people, students, and businessman, etc…. Moreover, Chick- Fil- A had chosen a great location to locate their restaurant, beside the restaurant, which
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
This paper explores the mission, vision, values and principles of Chipotle Mexican Grill that guide them in the restaurant industry. Their key mission, vision, and values revolve around providing food with integrity and changing the way people think about and eat fast food. Chipotle’s principles include sticking to the basics of a simple menu and uncomplicated, interactive employee roles.
With only 63 stores in operation, Shack Shacks lofty ambitions of opening 450 stores run the risk of over expanding and drastically lowering profit margin. As it is, Shake Shack relies heavily on Manhattan for revenue and profit margins. It is reported that opening in new markets are likely to be less profitably and may carry higher operating costs than existing locations. Likewise, Shack Shack’s expansion to new markets run the company in direct competition to recently publicly traded Habit Restaurants (HABT). Similar to Shake Shack, Habit Burger Grill operates in the fast casual sector with 98 restaurants and $120.4 in revenue for
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
The restaurant industry is said to be one of the oldest industries in the economy. As the economy and urbanization grow, so too does the industry of restaurants; it’s for this reason that the industry has been growing at a rapid pace. Even with the restaurant industry ebbing and flowing, there are still new entities entering the fray consistently. Some restaurants may close, but it will not be too long before a new restaurant opens in the place of the old one. Historically, the restaurant industry has contributed nearly 4 percent to the gross domestic product (GDP) of the United States (U.S.) economy. The most recent findings show that the restaurant industry employs more than 12.7 million people (which is approximately equal to 9 percent of the
Panera Bread is considered to be one of the U.S. most successful fast-casual restaurants. The company is one of the revolution makers in the industry of fast food, which managed to transform the traditional image and perception of to-go products that are available at an acceptable price on the market. As its initial founding company was established in 1981, Panera Bread managed to gain up to 4.5 billion USD in sales by the year of 2015, whereas the average sales per one store made up to 2.5 million USD annually (Thompson). Nevertheless, the company that once managed to upgrade bread and pastry into a trend of fast and healthy eating, today is struggling with massive competition on the fast food market. Its previous strategic strengths now became a burden that stops innovation and creativity and does not
If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.
I've chosen the Starbucks Corporation on which to do my case assignment for the session. I first became interested in Starbucks while working on a paper for a previous marketing class. I became intrigued at the entrepreneurial spirit that such a large corporation had managed to maintain throughout its massive expansion. Starbucks corporation, unlike many of its now-defunct rivals, has done an outstanding job since its meager beginnings in 1970 with the execution of its strategic process; resulting in it currently owning 40% of the specialty coffee market and boosting annual sales exceeding $7 billion according to Burt Helm. Historic successes and recent turmoil within the company, including a near 40% decline in 2007 in profits (Sullivan
While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
• What measures could Burger King do to dethrone McDonald’s as well as hold off the challenge of a number of other chains that were growing in size and competitive power?