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Fast Food Restaurants

Fast Food Restaurants. Brian Gitschier Section 1. Industry. Industry revenue about $1.75 Trillion in 2013 Fast food industry expected to generate $240 Billion in 2014 Food and beverage costs about 33% of all expenses High volume, low cost, and high speed product. Competition .

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Fast Food Restaurants

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  1. Fast Food Restaurants Brian Gitschier Section 1

  2. Industry • Industry revenue about $1.75 Trillion in 2013 • Fast food industry expected to generate $240 Billion in 2014 • Food and beverage costs about 33% of all expenses • High volume, low cost, and high speed product

  3. Competition • Other restaurants (both fast food and non fast food) • Grocery Stores • Convenience Stores

  4. Advantages • Location • Prices • Quality • Variety • Convenience

  5. McDonald’s at a Glance • Second largest restaurant chain • 34,480 restaurants in 119 countries • 19,869 Franchised, 8,013 Licensed, 6,598 Company Owned • 1,439 new stores in 2012 – almost 4 per day • 69 million customers daily • Revenue: 27.6 Billion • Net Income: 5.5 Billion • 3.1% comparable store sales growth

  6. Geographic Revenue Breakdown

  7. SWOT Analysis • Strengths • Brand • 6th Most Valuable (behind Apple, Microsoft, Coca-Cola, IBM, and Google) • Efficiency • Consistency

  8. SWOT Analysis • Weaknesses • Margins heavily reliant on commodity prices • Opportunities • New Products • Healthier, keep up with changing consumer tastes • Expansion internationally

  9. SWOT Analysis • Threats • Changing consumer tastes • Health conscious • Has image of being unhealthy • Domestic Market is becoming oversaturated

  10. Strategies • Grow Globally • “be accessible wherever and whenever” • Optimize Menu • Modernize Restaurants • 60% of interiors updated • 50% of exteriors by 2015

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