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Fast Food Fast Food Fast Food Globally & Georgia Author: Mariam Kiladze To: Giorgi Baghaturia International Black Sea University 02.10.2012 Research Page 1

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Fast Food

Fast Food

Fast Food Globally & Georgia

Author: Mariam Kiladze

To: Giorgi Baghaturia

International Black Sea University

02.10.2012

Research Page 1

Fast Food

ContentsFast Food Introduction...............................................3Business.............................................................6

CONSUMER SPENDING.......................................................6MAJOR INTERNATIONAL BRANDS...............................................6

Macdonald’s.......................................................8Texas chicken....................................................10

Methodology.........................................................12Effects of Fast food:...............................................13

Survey:.............................................................14Reasons why people visit Fast food restaurants:.....................17

Statistical reports after research:.................................18Conclusion..........................................................21

Appendixes..........................................................21Used Literature.....................................................21

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Fast Food

Fast Food IntroductionA fast food restaurant, also known as a Quick Service Restaurant or QSR within the industry itself, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service. Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and packaged to order; and is usually available ready to take away, though seating maybe provided. Fast food restaurants are usually part of a restaurant chain or franchise operation, which provisions standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

Arguably the first fast food restaurants originated in the United States with A&W in 1916 and White Castle in 1921. Today, American-founded fast food chains such as McDonald's and KFC are multinational corporations with outlets across the globe.

Variations on the fast food restaurant concept include fast casual restaurants and catering trucks. Fast casual restaurants have higher sit-in ratios, and customers can sit and have their orders brought to

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Fast Food

them. Catering trucks often park just outside worksites and are popular with factory workers.

HISTORY OF FIRST FAST FOOD, GLOBALLY

Some trace the modern history of fast food in America to July 7, 1912,with the opening of a fast food restaurant called the Automat in New York.

The Automat was a cafeteria with its prepared foods behind small glasswindows and coin-operated slots. Joseph Horn and Frank Hardart had already opened the first Horn & Hardart Automat in Philadelphia in 1902, but their “Automat” at Broadway and 13th Street, in New York City, created a sensation. Numerous Automat restaurants were built around the country to deal with the demand. Automats remained extremely popular throughout the 1920s and 1930s. The company also popularized the notion of “take-out” food, with their slogan “Less work for Mother”.

Some historians and secondary school textbooks concur that A&W, which opened in 1919 and began franchising in 1921, was the first fast food restaurant (E. Tavares).

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Fast Food

Thus, the American company White Castle is generally credited with opening the second fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents apiece from its inception and spawning numerous competitors and emulators. What is certain, however,is that White Castle made the first significant effort to standardize the food production in, look of, and operation of fast-food hamburger restaurants. William Ingram's and Walter Anderson's White Castle System created the first fast food supply chain to provide meat, buns,paper goods, and other supplies to their restaurants, pioneered the concept of the multistate hamburger restaurant chain, standardized thelook and construction of the restaurants themselves, and even developed a construction division that manufactured and built the chain's prefabricated restaurant buildings. The McDonalds' Speedee Service System and, much later, Ray Kroc's McDonald's outlets and Hamburger University all built on principles, systems and practices that White Castle had already established between 1923 and 1932.

The hamburger restaurant most associated by the public with the term "fast food" was created by two brothers originally from Nashua, New Hampshire. Richard (Dick) and Maurice (Mac) McDonald opened a barbecue drive-in in 1940 in the city of San Bernardino, California.After discovering that most of their profits came from hamburgers, thebrothers closed their restaurant for three months and reopened it in 1948 as a walk-up stand offering a simple menu of hamburgers, French fries, shakes, coffee, and Coca-Cola, served in disposable paper wrapping. As a result, they were able to produce hamburgers and fries

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constantly, without waiting for customer orders, and could serve them immediately; hamburgers cost 15 cents, about half the price at a typical diner. Their streamlined production method, which they named the "Speedee Service System”, was influenced by the production line innovations of Henry Ford.

By 1954, The McDonald brothers' stand was restaurant equipment manufacturer Prince Castle's biggest purchaser of milkshake blending machines. Prince Castle salesman Ray Kroc traveled to California to discover why the company had purchased almost a dozen of the units as opposed to the normal one or two found in most restaurants of the time. Enticed by the success of the McDonald's concept, Kroc signed a franchise agreement with the brothers and began opening McDonald's restaurants in Illinois. By 1961, Kroc had bought out the brothers and created what is now the modern McDonald's Corporation. One of the major parts of his business plan was to promote cleanliness of his restaurants to growing groups of Americans that had become aware of food safety issues. As part of his commitment to cleanliness, Kroc often took part in cleaning his own Des Plaines, Illinois outlet by hosing down the garbage cans and scraping gum off the cement. Another concept Kroc added was great swaths of glass which enabled the customer to view the food preparation, a practice still found in chains such as Krispy Kreme. A clean atmosphere was only part of Kroc's grander plan which separated McDonald's from the rest of the competition and attributes to their great success. Kroc envisioned making his restaurants appeal to suburban families.

At roughly the same time as Kroc was conceiving what eventually becameMcDonald's Corporation, two Miami, Florida businessmen, James McLamoreand David Edgerton, opened a franchise of the predecessor to what is now the international fast food restaurant chain Burger King. McLamorehad visited the original McDonald's hamburger stand belonging to the McDonald brothers; sensing potential in their innovative assembly line-based production system, he decided he wanted to open a similar operation of his own. The two partners eventually decided to invest their money in Jacksonville, Florida-based Insta-Burger King.

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Fast Food

Originally opened in 1953, the founders and owners of the chain, KiethJ. Kramer and his wife's uncle Matthew Burns, opened their first stores around a piece of equipment known as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to carry the device. By 1959 McLamore and Edgarton were operating several locations within the Miami-Dade area and were growing at a fast clip. Despite the success of their operation, the partners discovered that the design of the insta-broiler made the unit's heating elements prone to degradation from thedrippings of the beef patties. The pair eventually created a mechanized gas grill that avoided the problems by changing the way themeat patties were cooked in the unit. After the original company beganto falter in 1959, it was purchased by McLamore and Edgerton who renamed the company Burger King.

While fast food restaurants usually have a seating area in which customers can eat the food on the premises, orders are designed to be taken away, and traditional table service is rare. Orders are generally taken and paid for at a wide counter, with the customer waiting by the counter for a tray or container for their food. A "drive-through" service can allow customers to order and pick up food from their cars.

Nearly from its inception, fast food has been designed to be eaten "onthe go" and often does not require traditional cutlery and is eaten asa finger food. Common menu items at fast food outlets include fish andchips, sandwiches, pitas, hamburgers, fried chicken, french fries, chicken nuggets, tacos, pizza, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed potatoes, and salads.

Business

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Fast Food

Consumer spending

In the United States alone, consumers spent about $110 billion on fastfood in 2000 (which increased from $6 billion in 1970). The National Restaurant Association forecasts that fast food restaurants in the U.S. will reach $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.

Major international brands

McDonald'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 enterprise in terms of financial growth, brand-name recognition, and worldwide expansion.

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Fast Food

Ray Kroc, who bought the franchising license from the McDonald brothers,pioneered many concepts which emphasized 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 force suppliers to conform to this ethos.

Other prominent international fast food companies include Burger King,the number two hamburger chain in the world, known for promoting its customized menu offerings (Have it Your Way).

Multinational corporations typically modify their menus to cater to local tastes and most overseas outlets are owned by native franchisees. McDonald's in India, for example, uses lamb rather than beef in its burgers because Hinduism traditionally forbids eating beef. In Israel some McDonald's restaurants are kosher and respect the Jewish Shabbat; there is also a kosher McDonald's in Argentina. In Egypt, Morocco, Saudi Arabia, Malaysia, and Singapore.

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Fast Food

Macdonald’s

McDonald's

Type Public

Traded as

NYSE: MCDDow Jones Industrial Average Component

Industry

Restaurants

Founded May 15, 1940 in San Bernardino, California;McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois

Founder(s)

Richard and Maurice McDonald McDonald's restaurant concept;Ray Kroc, McDonald's Corporation founder.

Headqua Oak Brook, Illinois, U.S.

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Fast Food

rters

Number of locations

33,000+ worldwide

Area served

Worldwide

Key people

James A. Skinner(Chairman & CEO)

Products

Fast food(hamburgers • chicken •french fries • soft drinks •coffee • milkshakes • salads •desserts • breakfast)

Revenue  US$ 24.075 billion (2010)

Operating income

 US$ 7.473 billion (2010)

Net income

 US$ 4.949 billion (2010)

Total assets

 US$ 31.975 billion (2010)

Total equity

 US$ 14.634 billion (2010)

Employe 400,000 (January 2010)

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Fast Food

es

Mcdonald’s in Tbilisi

Texas chicken

Texas Chicken was established in the UAE in 2008 and is operated by byFirst Food Services. First restaurant was opened in the capital, Abu Dhabi, and is now nearing 20 branches across all Emirates.

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Fast Food

It all started in San Antonio, Texas in 1952. George W. Church Sr., a retiredincubator salesman with more than 20 years in the poultry industry, conceived the idea of offering freshly cooked, quality fried chicken at a time when only hot dogs and ice cream were marketed fast-food style.

The first "Church's Fried Chicken to Go" was located in downtown San Antonio, across the street from the Alamo. The restaurant sold only fried chicken. Church added French fries and jalapeños to the menu in 1955. George Church's idea paid off, and at the time of his death in 1956, four Church's were open. Other members of the family became active in the business, and by 1962 the chain had grown to eight locations in San Antonio.

The Church family was bought out in October 1968, and in May 1969 Church's Fried Chicken, Inc. became a publicly held company. At the ends of 1969, over 100 Church’s restaurants were in operation in sevenstates. Between 1969 and 1974, Church's grew by an additional 387 restaurants. At year-end 1974, there were 487 Church's in 22 states

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with total revenues of more than $100 million. The highlight of this period was the opening of the national headquarters complex and manufacturing plant on a six-acre site in northwest San Antonio.

International expansion began in 1979, under two brands "Church's Chicken" and "Texas Chicken" with the announcement of the first Church's abroad. The company subsequently established locations in Puerto Rico, Canada, Mexico and Indonesia.

By 1989, Church's was the second-largest chicken franchise organization in the United States.

In August 10, 2009, a San Francisco based private equity firm, Friedman, Fleischer & Lowe LLC (FFL) acquired Church's Chicken and became its parent company. Today, the company is focused on new product development, restaurant expansion domestically and internationally, and providing its guests with superior service and product.

Texas chicken in Tbilisi

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Fast Food

Methodology

The research about fast food restaurants is positivist; there is only one reality, reality which is not influenced by researcher or by us. Positivist paradigm refers to the research in which there is not subjectivity and is not influenced by researcher. Literature is about fast food restaurants, effects on society and about fast food’s sharesof the Georgian market. Also we can say that there is an interpretive paradigm too, because some issues need to be discussed by the researcher and answers may be subjective. For example: opinion about the effects of energy drinks may differ from person to person so it will be interpretive.

Date gathered mainly is qualitative because it discusses effects of fast foods and not numerical examples. The literature which was gathered about fast foods are discussed in details, their ingredients their health issues. But as in every research there are quantitative data too, this data are about market shares, about market patterns.

One of the methodologies used here is applied, because from the general discussion we are making specific conclusions.

Date presented above is analytical and descriptive, because it analysis issues of the fast foods and describes markets and other important economic examples of the fast food restaurants.

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Fast Food

Choosing proper methodology and making valid and reliable conclusions is very important, research conclusion should be based on facts, basedon literature and not thoughts of researchers. Analysis and methodologies which were used are relevant to the research topic and is best fit for our research.

Research

Effects of Fast food:

People are increasingly being warned against the ill effects of fast food and the potential damage they pose to the human health. The effects of fast food include nutritional deficiencies, obesity, increased cholesterol levels, cardiac problems and many other threatening health hazards. Here is a reminder for you that will include shocking facts about fast food and the harmful effects of fast food. 

Effects of Fast Food: Sodium and Increased Blood Pressure 

Most of these quick and convenient meals contain high amount of sodium, which increases and aggravates the risks of high blood pressure. According to the recommendations of the National Research Council of the National Academy of Sciences 1,200 - 1,500 mg of sodium is the daily sodium requirement for adults. Keeping these figures in mind, you should also know that the regular table salt that we consume contains 40% sodium and a single teaspoon of table salt contains 2,300 mg of sodium.

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Fast Food

Although the body requires minimum quantities of sodium, too much sodium contributes to high blood pressure. Sodium can also lead to building-up of fluids in case of people who are suffering from people with congestive heart failure, cirrhosis, or kidney disease. 

Effects of Fast Food : Ill Effects of Cholesterol

Cholesterol in meat-containing fast food is very dangerous for the health. Meat contains cholesterol and hence leads to the accumulation of bad cholesterol in the body. Cholesterol molecules can accumulate in the arteries and lead to clogging or thickening of the arteries. Thickening or clogging of arteries can lead to an obstructed blood flow and affect the blood pressure. In case the artery, which carriesblood to the heart, gets clogged, it can result in heart attack or even heart failure in extreme cases where blood flow is completely obstructed. 

Effects of Fast Food: Dealing with Trans Fat

Trans fat, which is infamous as the worst type of fat, is found abundantly in various fast foods. Trans fat is considered as the most harmful type of fat because it not only increases the 'bad cholesterol' (low density lipoprotein) levels but also reducesthe 'good cholesterol' (High density lipoprotein) levels. Most commonly trans fat is acommonly found in ingredients in all the processed foods. Foods that contain artificial trans fats contain up to 45% more trans fat as compared to their natural fat counterparts.

Effects of Fast Food: Unhealthy Lifestyle

Eating fast food and leading a sedentary lifestyle leads to obesity. Obesity leads to other complications like increase in the cholesterol level, blocking of the arteries, the increased risk of coronary diseases, in addition to the general physical discomfort posed by the extra weight. Fast food is also addictive and hence it is verydifficult to give up on their greasy and fatty foods and carbonated drinks and switch to healthier options. 

Thus constant and regular consumption of fast food can lead to an overall unhealthy condition. Malnutrition, obesity, increased risks of heart attack; hypertension and anoverall unhealthy body are some of the things that follow a fast food addiction. So ifyou want to lead a healthy and fulfilling life it is best to cut down your fast food intake, switch to healthier options and supplement it with regular fitness exercises. Health is one of the most important aspects that need to be taken care of for being truly happy in life.

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Fast Food

Survey: Gender

male/female Research Page 18

Fast Food

Please name your place of birth …………

Please write your date of birth …./…. /….

Which one you preffer?Hamburger

Cheese burger

Salads

Pies

Chicken burger

Fried Chicken

Big Mac

Fried potatoes

Shaurma

None

How often do you visit Fast food restaurants?Every day

3 times a week

Once in a week

Once in a month

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Fast Food

Never

How much do you approximately spend in Fastfood restaurants?GEL

Less than 50 in a month

Less than 100 in a month

More than 100 in a month

None

Which Fast food restaurant do you visit most frequently?Mcdonald’s

Texas Chicken

2 Lula

Nikala

Shaurma

None

Please write reason why do you visit Fast food restaurants:

………………………………………………………………………….

…………………………………………………………………………..

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Fast Food

Thank you

Reasons why people visit Fast food restaurants:

Reason 1: Fast served food

Reason 2: Cheap meal

Reason 3: extremly tasty

Reason 4: Wifi, several use it for work

Reason 5: It’s near the university

Reason 6: To get fatter

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Reason 7: Good service, management’s right approach. (In MCdonalds)

Statistical reports after research:

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Fast Food

Hamburger16%

Cheeseburger26%

Salads9%

Pies2%

Chickenburger3%

Fried chicken

5%

Sandwich6%

Fried potatoe13%

Shaurma6%

Geiorgian cuisine11%

None2%

Which one you prefer?

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Fast Food

19%

23%

36%

23%

How often do you visit fast food restaurant?

Everyday 3 times a week Once in a week Once in a month

Less than 50 in a month58%about 100 in a

month24%

More than 150 in a month18%

None1%

How much do you approximately spend in Fast food?

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Fast Food

Mcdonald's58%

Texas Chicken7%

2 Lula16%

Nikala8%

Shaurma5%

Elvis6%

None1%

Which Fast food restaurant do you visit the most frequently?

Paper based research was conducted to 80 citizens of Georgia, above you can see the result of research. From 80 respondents about 20 were male, several didn’t answer, but most were females.

Conclusion

However 80 individuals for more then million population is very small sample, to make conclusion.

Although, from the participants of the research and the questionnaire results above, we can say that, McDonald’s is most visited fast food restaurant, population spends less than 50 Gel per month for visiting

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Fast Food

fast food Restaurants, but they visit fast food restaurants once a week, and the most popular fast food meal is cheeseburger.

Appendixes

Used Literaturewww.wikipedia.org

www.mcdonalds.org

www.texaschicken.org

www.google.com

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