History of Industry Competitors
         History of Industry Competitors
       McDonalds
          McDonalds
            First store opened in 1940 by the McDonald brothers
              First store opened in 1940 by the McDonald brothers
            Headquarters- Oak Brook, IL
              Headquarters- Oak Brook, IL
       Sonic
          Sonic
            First store opened in 1945
              First store opened in 1945
            Headquarters- Oklahoma City
              Headquarters- Oklahoma City
       Jack-In-The-Box
          Jack-In-The-Box
            Founded in 1951 
              Founded in 1951 
            Headquarters in San Diego, CA
              Headquarters in San Diego, CA
       Burger King
          Burger King
             Founded in 1954
              Founded in 1954
             Headquarters in Miami, Florida
              Headquarters in Miami, Florida
      Industry Overview
      Industry Overview
   Fast-food industry includes about 200,000 
   Fast-food industry includes about 200,000 
   restaurants
   restaurants
   Combined annual revenue of about $120 
   Combined annual revenue of about $120 
   billion
   billion
   Industry is highly fragmented: the top 50 
   Industry is highly fragmented: the top 50 
   companies hold 25% of sales
   companies hold 25% of sales
         Industry Details
         Industry Details
   The industry is highly labor-intensive: the average 
   The industry is highly labor-intensive: the average 
   annual revenue per worker is just under $40,000
   annual revenue per worker is just under $40,000
   Most fast-food restaurants specialize in a few main 
   Most fast-food restaurants specialize in a few main 
   dishes
   dishes
   Restaurants include national and regional chains, 
   Restaurants include national and regional chains, 
   franchises, and independent operators
   franchises, and independent operators
   Most fast-food restaurants use a POS (point of sale) 
   Most fast-food restaurants use a POS (point of sale) 
   system to take orders from drive-thrus and the 
   system to take orders from drive-thrus and the 
   register
   register
    The Fast Food Industry’s Dominant 
     Economic, Political, and Social 
             Features
   Industry break down
   Industry break down
   Restaurant Industry
   Restaurant Industry
    • Full-service
     Full-service
    • Limited-service (NAICS 722211)
             (NAICS 722211)
     Limited-service 
       • Burger Segment
        Burger Segment
       • Sandwiches
        Sandwiches
       • Pizza/pasta
        Pizza/pasta
       • Chicken
        Chicken
       • Mexican
        Mexican
       • Etc.
        Etc.
     2008 Burger segment Annual Sales
      (http://www.qsrmagazine.com/reports/qsr50/2008/burgers.phtml)
     Rank  QSR 50  Chain                                        Sales ($Mil) 
     Rank  QSR 50  Chain                                                 ) 
                                                                Sales ($Mil
         1        1  McDonald’s                                  $28,666 
         1        1  McDonald’s                                  $28,666 
         2        2  Burger King (U.S. & Canada)                 $8,781.0 
         2        2  Burger King (U.S. & Canada)                 $8,781.0 
                             1
                             1                                   $7,956.0 
         3        4  Wendy’s                                     $7,956.0 
         3        4  Wendy’s  
         4       10  Sonic Drive-In                              $3,608.8 
         4       10  Sonic Drive-In                              $3,608.8 
                                   1
                                   1                             $2,975.0 
         5       13  Jack in the Box                             $2,975.0 
         5       13  Jack in the Box