This allowed for Yum to create new sales opportunities for Pizza Hut and KFC. For Pizza Hut, Yum created a menu which carried around 120 items that contained low price items as well as fancier, more expensive items. Another thing they were able to add was extra day parts which allowed to increase revenue. For Pizza Hut, they added a tea time menu which was able to directly compete with local coffee shops during the midafternoon times when business was slow. At KFC, they added a breakfast menu and lowered the price to match what local cafes were offering.
This also will cause future problems, such as closing the sandwich at the end. When someone fails to cut the bread on a 90 degree angle the customer also gets upset because they are buying it and consuming it. When people cut the sub so badly that the bread gets deformed and a hole appears, were forced to waste food and throw the product out. The second step in making a great sandwich is knowing the formula for each sub. The formula for meats is a little more difficult to remember than the formula for veggies.
Fortunately for McDonalds, they are a big enough corporate themselves which enabled them to make this deal with Boston Market, whereas the other indirect competitors (local sub shops, Chinese restaurants, etc.) were not in a financial position to do so. So far, McDonalds has done a great job with the company and Boston Market stores are still functional and selling rotisserie chicken today. Backing up a little bit, in 1997 when the stock price had plunged more than 50% in three months, the company needed to make some serious changes. Stockholders were displeased because the financials and reported profits were misleading and losses were recorded on the books of the franchises “area developers” and not in the corporation’s statements.
Subway runs great marketing schemes such as the “buy one get one sandwich free” day that they offer, or reducing the price of every sandwich on the menu to only five dollars excluding the premium subs. In my opinion, Subway is a much better choice than other fast food restaurants for a couple of reasons. For one, their top priority is the customer and they zone in on a positive atmosphere to make the customer feel comfortable by allowing them to choose exactly what and how much of it they want on their sandwich versus other places where you tell them what number you want and that’s what you get. Another thing is the all of the different promotions Subway runs. Every single month they have a special
• Maintaining workforce expenses below 18% of revenue. • Maintaining sales amid half a million dollars each year (Riebesell, 2001). “The Assemblage” will be different from other restaurants in the area in not just its location but also the services it offers to its customers. The owners plan to propose a special and unique mixture of quality eating experience at affordable costs together with a healthy entertainment and leisure atmosphere. This way the customers will have a pleasant eating experience as well as view their favorite sports games (Riebesell, 2001).
Also, because places such as Burger King and McDonald’s cost less than a fancy dining place, they feel they are getting a big bang for their buck. Some people when dining out at a fast food restaurant like to choose McDonald’s because, some of the McDonald’s restaurants have a playground inside that children can play on while their parents eat and have adult conversations, Burger King does not have this option. McDonald’s started its business in 1940, and serves about 68 million people on a daily basis. They also have restaurants in 119 countries, with 34,000 restaurants in the world. They also employ 1.7 million people.
Burgers, French fries, sodas, milkshakes, ice cream, etc are just an example of the wide menu McDonald’s has to offer the consumer making it easy for them to order a highly caloric meal. This can lead to serious health problems like Obesity, heart problems, diabetes and even different types of cancer in the long run. Obesity: According to the American Academy of Child and Adolescent Psychiatry, between 16 and 33 percent of teenagers in the United States are obese. Teenagers are considered obese when they are 20 percent or more above the normal weight for their age and height. Obesity is caused by eating more calories than the body burns.
The accessibility of fast food in schools encourages students to eat unhealthy, which is detrimental to their health. For example, students are always buying foods such as fries and burgers; they are not realizing how bad this food is to their health and body. When students are severely overweight or obese, they may get diseases in the future such as diabetes, high blood pressure, high cholesterol and cardio-vascular disease. Fast food is one of the factors leading to these dreadful diseases. A fast food meal may contain 900-1600 calories, which is almost half of the calories most people need each day.
Students also will be more engaged to eat their lunch instead of starving during their next class of the day. Since a larger variety is there to choose from; therefore there won’t all be piled up in a long line. The food from outside vendors will also taste better. I remember during my freshman year of high school, my friend and I ate the pizza for lunch, which was from school, and as opposed to pizza from Papa Johns or Pizza Hut; however it did not taste as well as you would hope. People may really like foods from the big outside name brands because that is what they really “taste” when eating the foods from outside vendors.
The problem with this operation is, in order to attract enough customers, the final product must be affordable and yet, still delicious. This brings up many problems with the dietary quality of the food produced by fast food restaurants. The food is often cooked in grease and oils which increases the amount of calories and fat grams per serving. With less home cooked meals on the plate and more foil wrapped sandwiches and fries hitting the table, people’s diets are being neglected of their basic necessities. However, fast food companies are managing to keep their drive-thrus filled by spending millions of dollars on advertisements.