The Quick Service Food Industry

955 Words4 Pages
Americans love efficiency, and they love to eat, thus, the reason for the quick service food industry (QSR). The restaurant industry has been slightly unstable as the economy climbs out of recession, and families’ slowly gain income to allow for a night to dine out. As a whole, the restaurant industry – everything from full service to fast food – accounts for 47% of this year’s food dollar share, while supermarkets claim the majority, accounting for 53%. Within the restaurant industry, fast food restaurants were the only sub industry to show positive guest traffic in the first quarter with a .8% increase, as compared to 2013. Because QSR is an oligarchy industry - a few companies dominate the market: McDonald’s, Chick-fil-a, Burger…show more content…
Of the companies that have experimented with this concept, they have found success in frequently changing the deals offered. Moreover, these deals offered by the restaurants encourage the consumer to purchase more while at the store; same-store sales in fast food restaurants increased 1.6% in January of 2014, and 3.2% by April. Still, the industry is experiencing pressure from lack of sales, and to counteract this, McDonalds’ CEO, Donald Thompson, and CFO, Peter Bensen, announced in April 2014 that the company will be cutting costs in factors of production, but no specifics were released. Yum! Brand doesn’t feel the heat with their worldwide sales growth of 4% in the 1st quarter of 2014; their brands include KFC, Taco Bell, and Pizzahut. Other chains are searching for alternatives to expand their companies and increase profit. Panera Bread and Chipotle have ventured into the catering industry, which at the fast food level has few competitors. They now offer their products in large quantities for events, and Chipotle even offers a customizable option – no salsa on your burrito, no problem. Chipotle implemented this idea in January of 2013; as of May 2014 they’ve seen comparable sales grow 13.4%. Some chains took an alternative approach to increase sales by selling branded goods; for example, Dunkin Donuts sells their brand of coffee, as does Starbucks. Many companies are still healing from the blow of the 2008 recession.
Open Document