Although there are options for drinks, French Fries, and meals, it is suitable to say that menu of In and Out is very limited, compared to other franchise hamburger stores. 3. Effects on market Since burgers from In and Out cost less and taste better, customers who have an option of going to In and Out or to another hamburger franchise tend to choose the former. Also, the limited numbers of menu enables In and Out to still provide burgers quickly
3. Why do you think In-N-Out Burger has an estimated 20% profit margin while McDonald's reports a 6% profit margin? I think In-N-Out Burger has a bigger profit margin than McDonald’s because In-N-Out has a simple menu and McDonald’s changes theirs frequently. In-N-Out has also been run the same strategic way since its opening, while McDonald’s changes it strategy and marketing frequently. In-N-Out also seems to have a more customer loyalty basis, while McDonald’s seems to be just a pit stop fast food joint and is known to not be fresh and gross.
McDonald’s is the fast food that earn the most profit in the fast food industry Name : Class : Date : Teacher : INTRODUCTION In the past, dinner or lunch time was necessarily a shared moment, where people gather with family or friends. Nowadays, their life is busier and they do not have enough time to eat properly and all together. Thus, fast-food industry appeared, and made business from their busy life. Because of the cheap price, and because is not such a bad food, people make most of the fast-food become famous and important business. One of them is McDonald’s, an American fast-food restaurant, founded 70 years ago.
The 50 largest companies are hold more than 25% the revenue in the industry (Hoovers, 2013). At present, the key industry trends of the fast food industry should focus on the competitive dynamics and direction of the industry. The major parts include firms focusing competition strategy environment analysis and investing the development of their brand. The Quick Service Restaurant is one of the most competitive industries in the world. Jack in the Box’s main competitors in this industry is the national and regional hamburger fast food chains of Burger King, and McDonald’s.
McDonalds opened its doors in 1940, 13 years later so did there soon to be competitor, Burger King. Both of them compete every day to earn the most profit possible. These restaurants may be some of the largest fast food corporations in the country, but they have plenty of differences; taste, sales, advertising. Taste is a big part of the competition. McDonalds and Burger King may not be good for you, but to most people it tastes good.
Burger King VS McDonald’s Burger King and McDonald’s are both fast food restaurants that provide customers with an easy drive thru window. When families have very little time to prepare a cooked meal at home, they most often opt for a fast food drive thru. Hitting up the drive thru at Burger King or McDonald’s, makes life just a little easier for the family on the run. People choose these types of places mostly for their fast pace, not for the quality of the food they receive. 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.
External Environment, cont. Suggested: High - Many rivals compete in the fast food business. Convincing customers that menu items are different or better than competitors is difficult when the food category is limited to take-out options. Substitutes Threat Med-High Suggested: Med-High – Major substitute is home cooking - it’s easy to make a burger on the home grill. Suppliers’ Power Low Suggested: Low - Suppliers of beef, eggs, potatoes have little power.
Coincidentally, George Naddaff, owner of 19 Kentucky Fried Chicken franchises, caught on to the “home-cooked” fast food idea and purchased a Boston Market franchise. Boston Market’s direct competition at that point, wanted to participate in their concept which carried them far beyond their current sales and revenue. Some indirect competitors of Boston Market eventually got involved as well. McDonalds ended up purchasing the chain of stores in 1998 and changed a few things to increase the appeal of Boston Market to its consumers. 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.)
But, while the pizzas are now made using a conveyer oven from dough that is made in a central kitchen, frozen and then delivered to each restaurant, the sauce had not changed at all. And that was the key to their growth. While old customers knew that the pizzas were not as good, new customers only knew that they were better pizzas than Checker's competitors made. Even still, the pizza business had fallen on hard times by the late 80's. Competition for customers in the fast food business had soared and the weak economy at that time had slowed business for everybody.
Ahmad Ardestani EL104, 36862 Proff. A.Butler 03/29/12 In-class essay McDonald’s vs. Burger King: Menu and Food The McDonald’s vs. Burger King battle features the world’s two biggest players in the fast food hamburgers industry. As far as overall sales, number of restaurants and market presence, they really are not much of a debate as to which chain is the leader. McDonald’s clearly sells more hamburgers than Burger King does. The types of food that both McDonalds and Burger King serve are generally vary similar, a typical meal being some variation of a burger, fries and a drink.