Consumer Spending
In the United States alone, consumers spent about US$110 billion on fast food in 2000 (which increased from US$6 billion in 1970). The National Restaurant Association forecasts that fast-food restaurants in the U.S. will reach US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the full-service restaurant segment of the food industry is expected to generate $173 billion in sales. Fast food has been losing market share to so-called fast casual restaurants, which offer more robust and expensive cuisines.
McDonald
's and other major brandsMcDonald's, a noted fast-food supplier, opened its first franchised restaurant in the US in 1955 (1974 in the UK). It has become a phenomenally successful enterp rise in terms of financial growth, brand-name recognition, and worldwide expansion. Ray Kroc, who bought the franchising license from the McDonald brothers, pioneered many concepts which emphasize d standardization. He introduced uniform products, identical in all respects at each outlet, to increase sales. At the same time, Kroc also insisted on cutting food costs as much as possible, eventually using the McDonald's Corporation's size to fo rce suppliers to conform to this ethos.
Post a Comment