Transcript Context Analysis - Mercer University

Context Analysis
Is the Quick Service Food Industry a Good Place to Be?
September 28, 2005
Group A4:
Stephanie Baron
Jennifer Jones
Christine Tahvonen
Nichole Tips
Bryant Young
Bill Zanow
Defining the Market Context
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What is the demographic environment?
Does the sociocultural environment fit?
Is the economic environment favorable?
Will the regulatory environment affect the industry?
How could the technological environment hinder or
advance the industry?
• What is the natural environment?
Demographic Environment
The Demand for Food Away from Home
• Consumer Spending at full service and fast food
restaurants will continue to grow, but the largest
increase will occur for full service restaurants
• Per capita spending at fast food restaurants could
grow 6% by 2020 as opposed to 15% for full service
restaurants (assuming 1% annual growth in real
income)
• The increasing proportion of households without
children living at home will cause spending to go up
by 1-2%
• The aging of the population will decrease spending
on fast food by 2% per capita between 2000 and
2020
Change in Per Capita Spending Due to
Demographic and Economic Trends
How Demographic Trends Will Affect
the Restaurant Industry
• The National Restaurant Association believes that
the overall growth of the market will depend on
rising incomes and demographic changes (aging
population, smaller household sizes, rising number
of households with single people or multiple
adults without live-at-home children)
• Any shift in the market share could affect what
food and services both types of restaurants offer
• Full service restaurants are a growing threat to fast
food restaurants
Consumer Spending on
Full Service vs. Fast Food
Segments of the Market:
Full-Service vs. Fast Food
Current & Projected Population Statistics
World Population Growth Rate:
1950-2050
World Population: 1950-2050
U.S. Population: 2005 & 2025
Household Characteristics &
Expected Expenditures
Fast Food Franchise Opportunities
• Fast food franchises continue to be among the most
popular of all franchise opportunities
• According to the U.S. government, fast food consumption
now accounts for over 40 percent of an average family's
budget spent on food
• This growth trend is expected to continue, as the dietary
needs of the pubic change and menus expand to
accommodate more ethnic preferences
• Fast food franchises are as effective at turning a profit as
they are at delivering a quick meal
Fast Food Clusters Around Schools
• Fast-food restaurants are concentrated within a short walking
distance from schools, exposing children to poor-quality food
environments in their school neighborhoods
• The median distance from any school in Chicago to the nearest
fast-food restaurant was half a mile, a distance that an adult can
walk in little more than 5 minutes
• Fast-food restaurants were statistically significantly clustered in
areas within a short walking distance from schools, with an
estimated 3 to 4 times as many fast-food restaurants within 1.5
km from schools than would be expected if the restaurants
were distributed throughout the city in a way unrelated to
school locations
• According to a study by Harvard’s School of Public Health, the
pattern probably exists in urban areas nationwide and is likely
contributing to the nation’s obesity epidemic
Sociocultural Trends
The Natural Marketing Institute's Top 10
Health & Wellness Trends of 2005
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The Immediacy of Health and Wellness Escalates
The Three F’s of Food Trends: Fiber, Functionality and Fat
The Healthy Get Healthier: The Good, the Bad and the Ugly
Weight Loss: Stability, Challenges and Apathy
Planetary Health and Wellness: Is it Cool to be Green?
Sources of Influence Become Multi-Dimensional
Nutritional Supplements – Can New Science and New Claims
Revitalize the Category?
• From Low-Carb to Slow-Carb: A Redefinition
• Reality Gaps Between What Consumers Say and What They Do
• The Organic Market: Finding the Real Value Proposition
Obesity
Obesity in America
Overweight Americans
70
60
50
40
Percentage
30
20
10
0
56
64.5
46
1976-1980
1988-1994
2004
1976-1980
1988-1994
Years
2004
Calorie Intake & Portion Control
• Calorie intake has increased
• Portion size has increased (Value Meals)
Average Daily Calorie Intake for Men and Women
2450 2618
3000
2500
2000
1542
1877
1500
1000
Average Daily Calorie
Intake for Women
Average Daily Calorie
Intake for Men
500
0
1
1971
2
2000
Obesity
• Two sides to this trend:
– Helping people lose weight
• Fast-food chains are lightening their menus
• More and more school districts are removing junk food from
campuses and replacing it with healthier options
– Helping heavier people live more comfortably
• Health club membership rose by 8.5 percent between 2002 and 2003
• Medicare recently began covering gastric bypass surgery
• Flip Side
– More than 60 percent of women and teens wear plus-size clothing
– The kids plus-size apparel market is growing
Obesity in America
• Obesity increased by 74 percent during the past decade to 44 million
adults in 2001
• The proportion of Americans who are severely obese also has soared from
1 in 200 adults in 1986 to one in 50 adults in 2000
• About 127 million adults are overweight which means two-thirds of adults
nationwide are more at risk for developing conditions such as high blood
pressure, diabetes, heart disease, stroke, gall bladder disease and certain
cancers
• The rise in obesity costs U.S. businesses an estimated $12.7 billion in
health care, sick leave and insurance premiums
• Increased television watching, larger meal sizes and inventions such as the
remote control and riding lawn mowers have pushed up obesity rates
• The work force has shifted from agriculture and manufacturing to service
jobs, in which workers sit in front of computers all day
Obesity in America
• Americans have longer workdays than those in most other countries, cook
fewer home meals and rely more on frozen and fast food for nutrition
• A recent University of Maryland study found that people living in the
suburbs where homes are mainly accessible by car were more likely to be
obese; People in more developed counties tended to exercise more from
climbing stairs or walking to errands
• An estimated 10% of America's preschoolers are dangerously overweight
– Obesity rates for elementary school students have tripled in the last
three decades
• 31% of adults in the U.S. are now considered obese (at least 30 pounds
overweight)
• Increase in the proportion of Americans characterized as overweight,
from 47% in the late 1970s to more than 65% in 2002, including 31%
who were clinically obese
• Medical costs attributable to obesity reached $75 billion in 2003, almost
half of which fell on taxpayers through public health-care schemes
Fitness and Weight Loss
• The fitness buzzword for 2005 – “Core Conditioning”
– This trend is all about strengthening and stabilizing the muscles of
your midsection
– Expect the next 12 months to bring expansion across a variety of
industries; Fitness and weight-loss franchises will grow as
Americans continue their battle to get slim
– The number of fitness and weight-loss franchisors in the Franchise
500® grew from 8 to 17
– According to the International Health, Racquet & Sportsclub
Association, 39.4 million Americans belong to a health club—up
from 24.1 million 10 years ago—so there are definitely more than
enough consumers joining in to feed this growing trend
Top 10 Trends in Food and Cooking
for 2005
1. High-Fiber
2. Drive-By Dining - “Fast-food chains have been quick to tout cup-holder
cuisine for lunch and dinner. The whole concept got a big breakfast-time boost
with the roaring success of McDonald's "McGriddle" sandwiches.”
3. Phood - Phood is a combination of food with a “pharmaceutical pitch comestibles with health benefits.” For example, breakfast cereals and
margarines market their ability to reduce the risk of heart disease.
4. White Tea - more expensive than green or black tea and has a different
production process. It has higher levels of antioxidants, natural chemicals,
which are thought to prevent cancer.
5. Local vs. Long-Distance - “For some folks, organic isn't enough. Their food
also has to be grown next door. Proponents of locally produced foods say the
practice ensures fresh, wholesome food. Instead of woody "shipper-friendly"
tomatoes, you get the juicy kind (but only in-season, of course). Local
production also reduce the energy expended in shipping and supports local
jobs. Watch for local growers in 2005 who will offer a full season of produce
on a subscription basis.”
Top 10 Trends in Food and Cooking
for 2005
6. Let Someone Else Do the Cooking - “HRM – Home Meal Replacement – has
been gathering steam for some time now. Pizza joints have eliminated their dining
rooms in favor of delivery and carry-out. And grocery stores now stock huge
buffets of hot and cold fare that's designed to pack up and bring home. In 2005,
watch the "fast casual" chains – Applebee's – launch curbside catering programs
that let you call ahead and pick up your meal in dedicated parking spaces.”
7. Gender Vending - Marketing products to one sex is the trend in the food industry.
For example, vitamin and supplement producers have been doing this for years to
advertise easing the symptoms of menopause or improve prostate health. Products
like "Harmony" cereal and "Nutrition for Women" oatmeal are focusing
specifically on women. For the men, beer seems to still be focused toward them.
8. Flexitarians - “Meat-heavy restaurants that offer "veggie" options on their menus
are really going after the flexitarians, say trend mavens, catering to folk who
might want to go vegetarian a few times a week.”
9. Seitan - the “new tofu.” This is not a new food. It is wheat-based, high-protein
food and its texture makes it an easy substitute for meat.
10. Just a Taste, Thank You - “Restaurants on the coasts have been offering bitesize portions for a while now. Expect the small-plate trend to make inroads to the
heartland in 2005.”
Fitness and Weight Loss
• The fitness and weight-loss industries are hot and
on the rise
Franchises for Fitness and Weight Loss
14170
15000
# of Fitness and 10000
Weight-Loss
Franchises
5000
11663
8821
2002
2003
2004
0
2002
2003
Year
2004
Young Children & Schools
• Low-income people tend to be more overweight than the
average population because they buy cheaper, sugar-laden
foods and have less knowledge of healthy diets
• More states tighten nutritional guidelines, schools stand to
lose millions of dollars from vending machine sales
• About 70% of 832 public schools polled in 2001 said they
had a partnership with a food or beverage company to fund
programs
– Some principals are worried about losing their ability
to have food fund-raising programs in schools
Portion Control – Is Bigger Better?
Consumer attitudes toward restaurant portion
sizes
22%
3%
45%
30%
Respondents believe typical restaurant portion sizes are too big
Respondents think portion sizes are just right
Respondents say portion sizes are too small
Respondents would be much more likely to eat at a restaurant that offers halfsize portions
In Touch with the Community
Dave Thomas Foundation for Adoption®
Dave founded this organization to help the thousands of children throughout the United States find
permanent homes and loving families.
Wendy's Wonderful Kids funds adoption recruiters across the nation that focus exclusively on
finding permanent adoptive homes for children in foster care.
Wendy's Championship for Children™ The Wendy's Championship for Children at Tartan Fields
is widely recognized as the premier woman's professional sporting event held annually in Central
Ohio.
Wendy's 3-Tour Challenge™ Each year professional golfers from the PGA, LPGA and Senior PGA
Tours battle it out to see who will be victorious in the Wendy's 3-Tour Challenge Golf
Tournament.
Wendy's Classic Achiever Scholarship Program Wendy's Canada honoured 210 Classic Achiever
Award winners with scholarships to help fulfill their dreams of post secondary education.
Deletree Conmigo™ Wendy's Deletree Conmigo is an in-school, bilingual spelling bee competition
and curriculum-enhancing program.
Wendy's High School Heisman Program™ Dave Thomas created the WHSH program to honor top
students nationwide who excel in academics, athletics and community service.
Home Cooking
• Home cooking may also be making a comeback, helped by
two factors
– The percentage of women joining America's workforce
may have peaked
– Supermarket chains such as Wal-Mart have been
forcing down retail food prices
Vegetarian Options
Burger King
• Burger King has had its BK Veggie burger available since 2001
• In Canada the BK Veggie is made by Sol Cuisine and is vegan. The U.S. version used to be
vegan, but as of Dec 2004, it now contains egg whites
Harvey’s
• Harvey’s was one of the first burger chains to develop and promote its own simply named,
Veggie Burger. It is a soy-based patty without a lot of chemicals and is totally vegan. Their
policy is to cook the burger on a separate part of the grill when possible
• Aug. 14 2005 Update: 'Veggieburger (even by itself) is flagged for those allergic to fish
McDonald’s
Only in Canada is there a veggie burger called the McVeggie on their menu
• They have also released some side salads to accompany the McVeggie
• McDonald’s still hasn’t figured out a separate grill for its veggie burger so a warning is posted
on their website: “During preparation, the McVeggie Burger may come in contact with meat
and/or chicken products.”
• McDonald’s has introduced two vegetarian salads and a vegan one called Mandarin California
Greens salad
• Warning: McDonald’s fries still contain beef fat
Vegetarian Options
Wendy’s
• The last holdout of the veggie burger movement
• Two salads include the spring mix salad is vegetarian but is still loaded with shredded cheese and
its honey roasted pecans contain lactose. The side salad is vegan and comes with three vegan
dressings, oriental sesame, house vinaigrette and a fat-free French dressing that contains honey.
The Caesar dressing contains anchovies and the other dressings are loaded with milk and eggs
• Wendy’s has two vegetarian baked potatoes: the Broccoli and Cheese Baked Potato and the Sour
Cream and Chives Baked Potato
• Their fries are vegan but may be cooked in the same oil as the chicken nuggets
• Wendy’s buns are vegan
Subway
• Subway suggests that you inquire at individual stores as products can vary from region to region
• Subway’s breads are all vegetarian (the cheese breads contain rennet of unknown origin) and the
following are vegan: Italian bread, roasted garlic bread, hearty Italian bread and sourdough bread
• Subway’s cookies all contain egg products and some contain milk products but are otherwise
vegetarian
Vegetarian Options
KFC
• In Canada, the only things remotely vegetarian are a potato salad, a pasta salad and coleslaw.
None of these are vegan
• In the U.S. menu options include macaroni and cheese, three bean salad, corn-on-the-cob and
mashed potatoes
• KFC has come under fire recently over their the way their chickens are raised and slaughtered
Taco Bell
• Beans can be substituted instead of meat to make many menu options vegetarian
• The corn-based shells are vegan, free of hydrogenated fats and have relatively short ingredient
lists
• Hot, mild and fire sauces are all vegan and loaded with chemicals
• Taco Bell’s fries are vegan and are cooked in their own 100% vegetable oil
• As of 2004 soft shells (for burritos or soft tacos) and the Mexican rice contain no obvious animal
ingredients
Tim Horton’s
• All Tim Horton’s products are vegetable-based
Is Fast-Casual Slowing Down?
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Statistics show American diners eat out more than they did last year (2004)
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Surveys show they’re willing to spend more to get better food in finer
surroundings—and an entire genre of dining emerged to take advantage of that
consumers’ largesse
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“Fast-casual came on strong because quick-service was so weak, however they
aren’t competing against the Whopper anymore.”
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Due to customer preferences of better competitors have added premium salads,
sandwiches, and leaner offerings to their menu once dominated by cheap eats
and fries
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At the end of 2002, comps for leading fast-casual brands, including averages
from Baja Fresh, Panera, Rubio’s Baja Grill, and Schlotzsky’s were at 2.7
percent, compared to 2.5 percent for casual dining and 4 percent for a segment
in the quick-serve/hamburger branch
Is Fast-Casual Slowing Down?
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A year later, fast-casual closed out with a 0.6 percent increase in comparable sales for 2003, well
behind the 2.1 percent increase shown by casual eateries. The hamburger segment comp sales for
2003: 4.1 percent
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“If you can’t beat ’em, join ’em” venture
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McDonald’s acquisition of Chipotle Mexican Grill allowed them to grow in a new direction, even
as it improved its food quality
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Wendy’s in 2002 bought Baja Fresh, another fast-casual Mexican brand, and took a chunk of Café
Express and Pasta Pomodoro
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One of the things data shows is that fast-casual might have problems with diner frequency
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A heavy user of quick-serve might patronize a store three to four times a week, but upscale folks
have different dynamics. In comparison, fast-casual has inspired some serious loyalties for
particular brands, but many folks are opting to spend a little more for the casual dining experience.
Some 70 percent of casual-dining business comes from repeat customers who’ll upgrade instead of
standing in line for something that is now comparable to what they could get at one of the
traditional quick-serves
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The reality check: Fast-casual sales account for $5 billion annually. McDonald’s does $20 billion a
year
Economic Environment
U.S. Unemployment Rate
• U.S. unemployment has declined in recent
periods
U.S. GDP
• US Real GDP has grown consistently over the
past 5 years
Inflation Rate
• Inflation has increased at a steady rate for
the past several years
Oil/Gas Prices
• Gasoline prices are moving toward an all
time high in 2005 dollars
Effects of Hurricane Katrina
• With nearly 1 million jobs lost in the Gulf
Coast, unemployment rates will increase
• Forecasts for GDP in Q3, Q4 and 2006 have
all been adjusted downward
• Higher energy costs are contributing to in
increase in inflation
• Damage done to refineries and supply lines
will continue to effect oil/gas prices
Economic Environment Conclusions
• Decrease in discretionary income as
consumers pay more at the pump and
heating homes
• Decrease in travel due prices at the pump
• Increase in supplier costs and food
preparation costs
Regulatory Environment
Mad Cow Disease: Background
• Common name for bovine spongiform
encephalopothy (BSE), “a slowly progressive,
degenerative, fatal disease affecting the central
nervous system of adult cattle”
• BSE linked to approximately 150 deaths from
Creutzfeldt-Jakob disease, a rare but fatal
degenerative disease in humans
• One human case reported in the U.S. (someone
who lived in U.K. during their outbreak)
Mad Cow Disease:
Regulatory Effects
• First discovered in the U.S. in 2003 in a Canadian-born
cow in Washington
• Nov. 2004: Texas-born cow identified but not confirmed to
have BSE until July 2005
• 2003: U.S. required the removal of the small intestine
when cow is slaughtered
• Sept. 7, 2005: FDA and agriculture dept. ease rules to
allow “a portion of the small intestine to be used as a
casing for specialty sausage”
– “The department is aware of the financial hardship on businesses
that make ethnic sausages,” Daniel Engeljohn, Dept. of Agriculture
Health & Safety Inspection office
Mad Cow Disease:
Regulatory Effects
• Sept. 19, 2005: Lester M. Crawford, FDA
Commissioner, announces that new
regulations will be put into place that bans
using ground up cattle remains as protein
for other animals
– Currently banned for cows, but not other
animals which could then be fed back to cows
• This regulation will close the gap
– Will mirror pending regulations that will soon
be implemented in Canada
Americans’ Response to Reports about
Mad Cow Disease
% who say they or someone in their family has…
Stopped ordering beef at fast food restaurants
16%
Stopped buying beef at the grocery store
14%
Stopped ordering beef at other restaurants
13%
Stopped eating hamburger or ground beef
13%
Stopped eating beef completely
7%
Started buying and eating only organic or grass-fed beef
4%
Sources: Harvard School of Public Health/ICR poll (January, 2004)
Mad Cow Disease:
Regulatory Effects
• Unlike the sausage industry, sales have not been
negatively impacted to the point that legislation
will be revised, although as early as 2001,
McDonald’s reported losses of earnings due to the
European outbreak of mad cow disease and
resulting loss of market there
• This will be an area to watch in coming years, as
any type of legislation could effect all competitors.
Looser rules could affect public opinion,
decreasing the market for burgers, while stricter
rules could raise the price, and either will have a
negative impact on profits
Reduced Labor Regulations
• New proposal by the Dept. of Labor would
allow 14 and 15 year olds to operate and
clean restaurant equipment, specifically:
– Operate hot electric/gas grills without an open
flame
– Operate hot, non-pressurized deep fat fryers
that automatically raise/lower cooking baskets
– Clean, maintain & repair cooking devices if the
surface or cooking liquid has cooled to no more
than 140 degrees
Reduced Labor Regulations
• Education Trust (Washington think tank)
estimates that 80% of the 10.3 million
workers in the food service industry are age
18-24
• With new labor laws allowing younger
employees, this will only increase
Product Label Regulations
• 2006: food product labels will be required to
include trans fat info (federal gov’t recommends
trans fat be less than 1% of total calories in 2000
calorie diet)
• This regulation does not include fast food
restaurants although most claim to already do so
(it’s just hard to find)
• FDA is considering a proposal by the Center for
Science in the Public Interest that would require
disclosure of trans fats by fast food chains (similar
proposal also going to Senate)
Product Label Regulations
• Legislation in Canada that would’ve required “fast food chains post the
number of calories in menu items beside prices on menu boards, and
require full-service restaurant chains (where more spacious menus are
provided) to also display the amounts of saturated fat plus trans fat,
and sodium” was eventually withdrawn by its sponsor
• According to the Canadian Restaurant and Foodservices Association,
“In an industry that thrives on 'made to order' menu items, daily
specials, changing menu items and seasonal ingredients, the
requirements of the bill would have been impossible to implement. In
addition, the bill ignored the fact that restaurants respond to a wide
range of dietary concerns among their customers - from calories to
carbs to life-threatening food allergies.”
• Although the bill was referred to the Standing Committee on Health
for further study, it’s likely that the industry will always exert pressure
to keep such legislation from passing. The same thing will likely
happen in the U.S.
Advertising Regulations
• “73% of Americans favor restricting food advertising directed at
children” – 2004 Yale University Poll
• FTC Chair Deborah Majoras is not in favor of government regulations
on food and beverage advertising aimed at kids
• The industry favors self-regulation but there is no impetus to pull
products or limit advertising which will only reduce market share
• 20 states have enacted “common sense consumption laws” and 11
additional are in progress
• On the national level, the Personal Responsibility in Food
Consumption Act – the “Cheeseburger bill” – was passed by the House
in 2004 but never went to the Senate; it was reintroduced in 2005 to
ban most obesity-related lawsuits against producers and retailers of
food
• It will take congressional action for any regulations to be imposed.
Technological Environment
Technological Environment
• The main theory of fast food industries is to be fast, companies must keep up
with technological advances to improve efficiencies
• 2/3 of fast food business is done through the drive-thru
– display screens with your order listed and dollar amount - allows for
accuracy and speed
– having employees use easy to read touch screen cashiers - increases rate of
volume
– packaging must be “car-friendly” - such as fries in a cup shape
• Some technological advances that could hurt the industry
– Mass market strategy by Tivo Executives that want to make it possible for
every home to afford a Tivo system
• Allowing consumers to fast forward through ads
– XM Satellite Radio which can be used in the home or car
• This systems allows consumers to listen to specific music without
interruption
Technological Environment
•Using technological advances to the industries advantage
–From a marketing standpoint most recently have been able to use the
Internet as a way to gain consumer preferences. Surveying viewers or
advertising space on different target market web-sites
–Currently 60% of households have cell phones, by 2010 it is
estimated that 80% will own one
–PDA’s which is not a huge market with only 15.5 million out of 108
million users but still an idea of what is available for consumers to
access the Internet
–In-car navigation systems that use global positioning systems to
detect vehicles location. Also has the ability to search for restaurants
by name or location
–Software programs, such as McDonald’s Quintillion site location,
that allow insight into marketable areas for expansion
Technological Environment
• “Just in time” inventory practices to the fast service industry
– Due to high employee turn-over rates must have easy to learn food
preparation equipment with basic instructions and basically computer
operated, the ideal is to have zero training required
– Automated equipment that is faster and allows for labor cuts, which leads
to lower cost of goods
• some examples being the auto beverage systems and bins that cook
the fries
• Food Processing (possible impact on industry?)
– Using nanotechnology, which is designing food my shaping molecules
and atoms, is vastly being researched and will allow more control and
lower cost
• As for any company, it is imperative that Wendy’s stay on top of changes in
the technological environment and even lead the charge in new and efficient
ways to do business
Natural Environment
Natural Environment
• Environmental friendliness
– What type of packaging is best suited to fast food?
• Safe for the environment
• Safe for consumers
– Is there a way to be more energy efficient without
having to give up something in the process
• Is the food that restaurants are serving entirely
safe?
Fast Food Packaging
Styrofoam Containers
Advantages
•
•
•
•
•
Maintains temperature
Keeps food fresher longer
Food is not soggy
Protects food
Durability
Disadvantages
• Can’t be recycled due to food
residue
• May release harmful products
to the atmosphere (CFCs or
Hydrocarbons)
• Petroleum based
– Supply and environmental
concern
• More expensive to manufacture
• Fills landfills
• Not biodegradable
Fast Food Packaging
Paper Wrappers
Advantages
• Perceived to be better
for the environment
than foam
• Does not damage
ozone
• Compacts better for
disposal
•
•
•
•
Disadvantages
Can’t be recycled due
to food residue
Not biodegradable due
to coating
Fills landfills
Does not keep food at
serving temperature as
long as foam
Paper Wrappers
It Gets Worse
• Perfluorooctanoic acid (PFOA), which is used to
make Teflon, is toxic at low levels and is found in
more than 90% of Americans
• The use of the Teflon-related chemical could be
widespread in the fast food industry
• The CEOs of nine major fast food corporations
have been asked by an environmental group to
disclose the use of the chemicals in their
packaging
Wendy’s
Caring for the Environment?
• Took ink out of napkins and saves approximately
56,000 lbs. of waste every year (1996)
• Changing in packaging of pickles, mustard, and
mayonnaise removed another 1M lbs. of waste
• Switching from Kid’s meal boxes to bags,
eliminated 1.4M lbs. of waste
• Ketchup dispensers in restaurants reduced
individual package waste
Fluoroquinolones
Does your chicken need a shot?
• Fluoroquinolones - a category of antibiotics that
includes Cipro - are the drugs of choice to treat
severe cases of food poisoning
• In 2000, the FDA proposed banning the use of
fluoroquinolones in poultry
– use contributes to increasing numbers of people
becoming infected with certain antibiotic-resistant
bacteria that cause food poisoning
• Wendy’s, McDonalds, & Popeye’s stopped buying
chicken treated with fluoroquinolones antibiotics
in 2002
Photovoltaic Light
Is Wendy’s getting enough out of the sun?
• Photovoltaic (solar power) lights are used in
alleys and parking lots in lieu of traditional
grid-attached lights
• Lights use batteries at night and can store
enough energy to power the lights for 5-7
days without sun
• Costs are comparable to traditional lights
– Parking lots don’t have to be torn up to install
new wiring
Industry SWOT Analysis
Strengths
• Caters to fast-paced lifestyle
• Households with kids tend to buy more fast
food
• Low cost, high volume
• Fastest drive-thru service in 2004
• Locations are close to primary competition
• High entry barriers
Weaknesses
• Because of changing demographics, there
will be a shift away from fast food towards
full-service restaurants
• Market saturation
• High employee turnover
Opportunities
•
•
•
•
•
Broaden menus
Expansion into breakfast
Concentrate on nutrition and taste
International growth
Expansion into fast casual dining
Threats
•
•
•
•
•
•
•
•
•
Competition
Public perception of fast food
Health concerns
Changing preferences
Emergence of fast casual restaurants
Mad Cow disease
Frivolous lawsuits – e.g. finger, obesity
“Supersize Me”
Customer switching cost are low
References
A Reality Check - http://www.qsrmagazine.com/qsr50/2004/reality.phtml
Automotive Navigation Systems - http://www.pctoday.com/editoral/article.asp?article=articles/2005/t0309/04t09/04t09.asp
Bureau of Economic Analysts - http://www.bea.doc.gov/bea/dn/home/gdp.htm
Can Tivo Go Prime Time? - http://pf.fastcompany.com/magazine/61/tivo.html
Commonly Asked Questions About BSE in Products Regulated by FDA's Center for Food Safety and Applied Nutrition
(CFSAN) - http://www.cfsan.fda.gov/~comm/bsefaq.html
Consumer Spending - http://www.ers.usda.gov/publications/aer829/aer829.pdf
Department of Labor - Bureau of Labor Statistics - http://www.bls.gov/home.htm
Energy Information Administration - http://www.eia.doe.gov/
Fast Food Calorie Disclosure Bill Advances; Legislation Would Also Require Better Ingredient Lists on Food Labels and
Nutrition Info for Fresh Meat - http://www.cspinet.org/canada/release_enc398.html
Fast Food Companies Asked to Disclose Use of Toxic Chemicals in Food Packaging. Environmental Working Group http://www.ewg.org/issues/pfcs/20030710/index.php
Fast Food Detroit - http://www.acton.org/ppolicy/comment/article.php?id=266
Fast Food Franchise Opportunities - http://www.franchiseprospector.com/franchise/food-quick-service.php?SubCatID=39
Fast Food Nation: The Dark Side of the All-American Meal. Houghton Mifflin Company.
References
Fast Food Report - http://www.veg.ca/directory/fastfood.html
Fast Food's Yummy Secret - http://www.economist.com/business/displayStory.cfm?story_id=4316138
Foam Fast-Food Containers: The Scapegoat, Not the Problem - http://www.mindfully.org/Plastic/Mobil-Hype-TimeMag29feb88.htm
Government Abandons Children to Big Food http://www.alternet.org/envirohealth/23648/?comments=view&cID=18545&pID=18275
Government Eases Rule to Stem Mad Cow - http://news.yahoo.com/s/ap/20050908/ap_on_he_me/mad_cow
Groups Applaud NY Times' Report about Major Food Companies' Steps to Reduce Antibiotic Resistance, The Humane
Society of America - http://www.charitywire.com/charity267/03267.html
Hot Trends for 2005 - http://www.entrepreneur.com/article/0,4621,318062,00.html
Incentives and Strategies for Reducing Waste - http://ndep.nv.gov/recycl/incntvs.htm
Jobless Claims Related to Katrina Surge - http://www.usatoday.com/money/economy/employment/2005-09-22-joblesskatrina_x.htm
Kids Need Government to Regulate Ads for Food - http://www.showmenews.com/2005/Jul/20050727Life004.asp
Mad-Cow Related Ban to Be Tightened http://news.yahoo.com/s/ap/20050919/ap_on_he_me/mad_cow_feed_ban;_ylt=Al.hHXmiMi6NO9xXeDzyxXZZ24c
A;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
Menu Labeling Legislation Withdrawn - http://www.newswire.ca/en/releases/archive/March2004/31/c6659.html
New Regulations May Require Fast Food Restaurants To Disclose Fast Food Content http://www.supermarketguru.com/page.cfm/11908
References
Overweight and Obesity: An Overview - http://www.cdc.gov/nccdphp/dnpa/obesity/contributing_factors.htm
Overweight and Obesity: Contributing Factors - http://www.cdc.gov/nccdphp/dnpa/obesity/contributing_factors.htm
Proposed Labor Department Change to Child Labor Regulations Would Put 14- and 15-Year-Old Workers at Risk http://www.ufcw.org/workplace_connections/retail/safety_health_news_and_facts/proposed_changes.cfm
September 2005, Vol 95, No. 9 | American Journal of Public Health 1575-1581 - DOI: 10.2105/AJPH.2004.056341
Solar-Powered Outdoor Lights- http://www.gpp.org/energy_ideas/EI.0296/EI.0296.04.html
Study: Nanotechnology in Food and Food Processing Industry - http://www.hkc22.com/Nanofood.html
Suffolk County, NY, Bans Plastic Food Containers -- First In Nation. Rachel’s and Environment Health Weekly, #76 http://www.ecologycenter.org/iptf/northamerica/Suffolkrachel1.html
The Demand for Food Away From Home: Full-Service or Fast Food? United States Department of Agriculture.
Agricultural Economic Report No. 829 - http://www.ers.usda.gov/publications/aer829/aer829.pdf
The Flawed Fast Food Tax - http://www.acton.org/ppolicy/comment/article.php?id=266
The QSR 50: A Reality Check - http://www.qsrmagazine.com/qsr50/2004/reality.phtml
Thin Pickings - http://www.economist.com/displaystory.cfm?story_id=4174888
Will Mad Cows Kill the Big Mac? - http://www.mcspotlight.org/media/press/mcds/salonnews260301.html