Fast Food Industry HistoryFast Food Industry History

Quickly prepared food from small stalls and limited-seating Quickly prepared food from small stalls and limited-seating restaurants dates back to ancient timesrestaurants dates back to ancient times

White Castle, established in 1921, is considered to be the first White Castle, established in 1921, is considered to be the first fast food chainfast food chain

McDonald’s introduction of the "Speedee Service System" in McDonald’s introduction of the "Speedee Service System" in 1948 established modern principles of the fast food restaurant1948 established modern principles of the fast food restaurant

Wendy's, founded in 1972, is credited with pioneering the use Wendy's, founded in 1972, is credited with pioneering the use of the "drive-thru"of the "drive-thru"

Industry SalesIndustry Sales

U.S. consumers spent about $110 billion on fast food in U.S. consumers spent about $110 billion on fast food in 20002000

(up from $6 billion in 1970)(up from $6 billion in 1970)

The National Restaurant Association forecasts that fast food The National Restaurant Association forecasts that fast food restaurants in the U.S. will reach $142 billion in sales in restaurants in the U.S. will reach $142 billion in sales in 20062006

(5% increase over 2005)(5% increase over 2005)

Major Fast Food Competitors Major Fast Food Competitors (in order of annual sales):(in order of annual sales):

McDonald’s:McDonald’s: $24.3 billion$24.3 billion Wendy’s:Wendy’s: $7.7 billion$7.7 billion Burger King:Burger King: $7.7 billion$7.7 billion Subway:Subway: $6.3 billion$6.3 billion Taco Bell:Taco Bell: $5.7 billion$5.7 billion Pizza Hut:Pizza Hut: $5.2 billion$5.2 billion KFC:KFC: $5.0 billion$5.0 billion Arby’s:Arby’s: $2.8 billion$2.8 billion Sonic:Sonic: $2.7 billion$2.7 billion Jack in the Box:Jack in the Box: $2.5 billion$2.5 billion

Advertising Expenditures:Advertising Expenditures:

Approximately $4 billion spent by fast food restaurant Approximately $4 billion spent by fast food restaurant industry annuallyindustry annually

Ad venues consist of TV, print, outdoor billboard, and radio Ad venues consist of TV, print, outdoor billboard, and radio mediamedia

95% of US fast food restaurant advertising budgets are 95% of US fast food restaurant advertising budgets are allocated to television allocated to television

McDonald’s is the top fast food advertising spender (18th McDonald’s is the top fast food advertising spender (18th largest ad spender of all U.S. brands), followed by Burger largest ad spender of all U.S. brands), followed by Burger King and Wendy’s (67th and 78th respectively) King and Wendy’s (67th and 78th respectively)

Fast Food AdvertisingFast Food Advertising

Amid criticism and controversy over the Amid criticism and controversy over the nutritional value of their products, fast food nutritional value of their products, fast food advertising attempts to appeal to latent but advertising attempts to appeal to latent but powerful human desires and needspowerful human desires and needs

Fast Food AdvertisingFast Food AdvertisingTarget AudiencesTarget Audiences

General demographic focus of ads:General demographic focus of ads:

ChildrenChildren Adolescents / TeensAdolescents / Teens Adults 20s-30sAdults 20s-30s

Various techniques and appeals are employed based on the Various techniques and appeals are employed based on the target audience of the particular advertisement target audience of the particular advertisement

Taking Aim at the Child TargetTaking Aim at the Child Target

Fast food ads utilize varied methods to attract the Fast food ads utilize varied methods to attract the attention and manipulate the desires of childrenattention and manipulate the desires of children

Ronald McDonaldRonald McDonald is recognized by nearly 96% of American is recognized by nearly 96% of American childrenchildren

A child's first request for a product typically occurs at about 24 A child's first request for a product typically occurs at about 24 months of agemonths of age

Ad agencies acknowledge that toddlers and preschool children Ad agencies acknowledge that toddlers and preschool children have considerable purchase influence through “nag factor”, have considerable purchase influence through “nag factor”, and are openly targeting these age groups in fast food adsand are openly targeting these age groups in fast food ads

Advertisers deliberately begin building lifetime brand Advertisers deliberately begin building lifetime brand recognition, brand preference and brand loyalty with toddlersrecognition, brand preference and brand loyalty with toddlers

Advertising Tactics Targeting Advertising Tactics Targeting the Child Market:the Child Market:

Ads aimed at children often employ powerful tie-ins to Ads aimed at children often employ powerful tie-ins to popular children’s movies and television programspopular children’s movies and television programs

Character-based packaging and free toy offers encourage Character-based packaging and free toy offers encourage children to pursue the productchildren to pursue the product

Vivid colors, theme music, and brand characters are used in Vivid colors, theme music, and brand characters are used in formats that often mimic children’s programmingformats that often mimic children’s programming

Addressing the base need for aesthetic sensations is often Addressing the base need for aesthetic sensations is often the focus of ads targeting children, associating the brand the focus of ads targeting children, associating the brand image with exciting audio-visual stimulationimage with exciting audio-visual stimulation

Example: Pizza Hut Example: Pizza Hut “Cheesy Bites Pizza”“Cheesy Bites Pizza”

Target Audience: Toddlers – Young teens

• The commercial features 3 young teen boys sitting at a pizza parlor. Indicating that this commercial best fit for younger audiences.Style: Humor

• Miss Piggy is the main character in this commercial. She is imitating Jessica Simpson’s previous ad for Pizza Hut.

• The 3 boys at the restaurant table deflects the pizza that was tossed over by Miss Piggy. In a previous commercial with Jessica Simpson, she tossed the pizza bites right into their mouths.

• Miss Piggy is part of the very popular Muppet show and is recognizable by people of all ages.

Conclusion: This is a youthful commercial with a blend of upbeat music and a celebrity most children can recognize.

Basic AppealsBasic AppealsNeed for sex: This is a pre-teen commercial which features Miss Need for sex: This is a pre-teen commercial which features Miss Piggy, but it also pararells the Jessica Simpson commercial. Piggy, but it also pararells the Jessica Simpson commercial. Children will compare the two commercials and also see the sex Children will compare the two commercials and also see the sex appeal of Jessica Simpson in the other ad. Hence, the pre-teens appeal of Jessica Simpson in the other ad. Hence, the pre-teens are getting a taste of what advertisers have in store for them in are getting a taste of what advertisers have in store for them in the future. the future.

Need for Aesthetic sensation: The kids are in a dimly lit pizza Need for Aesthetic sensation: The kids are in a dimly lit pizza parlor, and Miss Piggy’s bright red dress is the main focus of the parlor, and Miss Piggy’s bright red dress is the main focus of the ad. The sound of little pizza bites being shot from across the ad. The sound of little pizza bites being shot from across the room is impossible in real life, but in this commercial it greatly room is impossible in real life, but in this commercial it greatly appeals to children’s imaginations.appeals to children’s imaginations.

Style: Humor Style: Humor • Miss Piggy is the main character in this commercial. She is • Miss Piggy is the main character in this commercial. She is imitating Jessica Simpson’s previous ad for Pizza Hut. imitating Jessica Simpson’s previous ad for Pizza Hut. • The 3 boys at the restaurant table deflects the pizza that was • The 3 boys at the restaurant table deflects the pizza that was tossed over by Miss Piggy. In a previous commercial with Jessica tossed over by Miss Piggy. In a previous commercial with Jessica Simpson, she tossed the pizza bites right into their mouths.Simpson, she tossed the pizza bites right into their mouths.

Style: Use of CelebrityStyle: Use of Celebrity• Miss Piggy is part of the very popular Muppet show and is • Miss Piggy is part of the very popular Muppet show and is recognizable by people of all ages.recognizable by people of all ages.

The Adolescent / Teen TargetThe Adolescent / Teen Target

Teen-focused fast food advertising emphasizes Teen-focused fast food advertising emphasizes characteristics that youth aspire to:characteristics that youth aspire to:

Being popularBeing popular Being attractive/sexyBeing attractive/sexy Being coolBeing cool Standing out in a crowdStanding out in a crowd Attracting attentionAttracting attention

The ads target these and other qualities importantThe ads target these and other qualities important

to adolescentsto adolescents

Advertising Tactics Targeting the Advertising Tactics Targeting the Adolescent / Teen Market:Adolescent / Teen Market:

Addressing the need for affiliationAddressing the need for affiliation

Teen-focused ads frequently portray groups of friends, Teen-focused ads frequently portray groups of friends, sporting teams, and other group activitiessporting teams, and other group activities

Capitalizing on the popularity of current fads, styles Capitalizing on the popularity of current fads, styles and trendsand trends

Many ads are based on popular trends in music, fashion, and Many ads are based on popular trends in music, fashion, and language; celebrities are often used, and are appearing more language; celebrities are often used, and are appearing more frequentlyfrequently

Appealing to the need for sexAppealing to the need for sex

The use of sexual themes in fast food ads aimed at the The use of sexual themes in fast food ads aimed at the adolescent market is on the increaseadolescent market is on the increase

Example: Carl’s Jr “Spicy Paris”Example: Carl’s Jr “Spicy Paris”

Ad description:Ad description: The ad features heiress Paris Hilton in a chic The ad features heiress Paris Hilton in a chic black bathing suit sudsing up a Bentley. She breaks from her black bathing suit sudsing up a Bentley. She breaks from her hard work to take a bite of a perfect Carl’s Jr. burger. Playing on hard work to take a bite of a perfect Carl’s Jr. burger. Playing on a catch phrase coined by the heiress, the commercial ends with a catch phrase coined by the heiress, the commercial ends with the tag line “That’s Hot”.the tag line “That’s Hot”.

Target audience:Target audience: Shown during Desperate Housewives, The Shown during Desperate Housewives, The O.C. and The Apprentice. Targeting the young, powerful & O.C. and The Apprentice. Targeting the young, powerful & affluent.affluent.

Ad subtext:Ad subtext: Paris is hot. Spicy BBQ is hot. If you like Paris, Paris is hot. Spicy BBQ is hot. If you like Paris, you’ll like our sandwich. you’ll like our sandwich.

Fowles “Basic Appeals” Fowles “Basic Appeals”

Basic appeals employed:Basic appeals employed:

Need for attention:Need for attention: Utilizes the celebrity Utilizes the celebrity endorsement phenomenon. Associates product with endorsement phenomenon. Associates product with celebrity infamous for attracting attention. celebrity infamous for attracting attention.

Need for Sex:Need for Sex: Employs sex appeal in dress and body Employs sex appeal in dress and body movements.movements.

Need for affiliation:Need for affiliation: Invites desire to affiliate with her Invites desire to affiliate with her intimately, affiliate with her wealth, and thus intimately, affiliate with her wealth, and thus affiliate with her hunger. affiliate with her hunger.

Ads that Target AdultsAds that Target Adults

Fast food advertisers face a tougher target in the adult Fast food advertisers face a tougher target in the adult market, but adjust their appeals accordinglymarket, but adjust their appeals accordingly

Assuming a more informed consumer, ads must actively counter Assuming a more informed consumer, ads must actively counter negative press related to the brand and industrynegative press related to the brand and industry

Advertisers must break through a greater resistance or Advertisers must break through a greater resistance or insensitivity to advertising in generalinsensitivity to advertising in general

Ads must take into account the sense of responsibility inherent Ads must take into account the sense of responsibility inherent to parenting and family lifeto parenting and family life

Advertising Tactics Targeting Advertising Tactics Targeting the Adult Market:the Adult Market:

Addressing the need to feel safeAddressing the need to feel safe

In response to criticism, fast food ads increasingly attempt to In response to criticism, fast food ads increasingly attempt to portray their products as a healthy choiceportray their products as a healthy choice

Appealing to the need to escapeAppealing to the need to escape

By portraying subjects in their 30s displaying youthful qualities, By portraying subjects in their 30s displaying youthful qualities, fast food ads target the desire to feel youngfast food ads target the desire to feel young

Targeting the need to nurtureTargeting the need to nurture

Adult-focused fast food ads frequently employ the use of the Adult-focused fast food ads frequently employ the use of the “happy family” scenario, implying that their brand and products “happy family” scenario, implying that their brand and products will contribute to a healthy, happy relationship between children will contribute to a healthy, happy relationship between children and their parentsand their parents

Example: McDonalds Example: McDonalds “Crowd Surfing Teacher”“Crowd Surfing Teacher”

Ad description:Ad description: The commercial begins with high school youths The commercial begins with high school youths eating at McDonald’s while recounting the excitement of an eating at McDonald’s while recounting the excitement of an earlier music concert. Flashback clips focus on the orange shoes earlier music concert. Flashback clips focus on the orange shoes of a crowd surfing fan. The youths encounter their teacher in the of a crowd surfing fan. The youths encounter their teacher in the restaurant and ask him what he’s up to; he replies “grading restaurant and ask him what he’s up to; he replies “grading papers” and walks past. The camera focuses on his feet; he’s papers” and walks past. The camera focuses on his feet; he’s wearing the same orange shoes as the crowd surfer, and he wearing the same orange shoes as the crowd surfer, and he raises his fist in a popular “rock-and-roll” hand sign as he exits.raises his fist in a popular “rock-and-roll” hand sign as he exits.

Target audience:Target audience: Pre-middle-aged adults (airs frequently during Pre-middle-aged adults (airs frequently during VH1 “I Love the –insert decade-” nostalgia shows)VH1 “I Love the –insert decade-” nostalgia shows)

Ad subtext:Ad subtext: Stay youthful. Fast food is often associated with Stay youthful. Fast food is often associated with teenagers. You will still be “cool” if you eat at McDonald’s like teenagers. You will still be “cool” if you eat at McDonald’s like teenagers do.teenagers do.

Basic AppealsBasic Appeals

Need for affiliation:Need for affiliation: The ad implies that by eating at The ad implies that by eating at McDonald’s (and crowd surfing at the concert), the teacher has McDonald’s (and crowd surfing at the concert), the teacher has gained respect and credibility from his teenage studentsgained respect and credibility from his teenage students

Need for attention:Need for attention: From the crowd surfing, to the orange From the crowd surfing, to the orange shoes, to the “rock-and-roll” hand sign, this ad implies that shoes, to the “rock-and-roll” hand sign, this ad implies that those who seek attention are rewarded with admirationthose who seek attention are rewarded with admiration

Need to escape:Need to escape: The ad invites the target viewer to escape the The ad invites the target viewer to escape the trappings of responsible adult life and regain a youthful freedom trappings of responsible adult life and regain a youthful freedom enjoyed by the young and young-at-heart, who choose enjoyed by the young and young-at-heart, who choose McDonald’s as a favored brandMcDonald’s as a favored brand

Changing Tactics:Changing Tactics:Reactionary Ads and ProductsReactionary Ads and Products

In recent years a variety of popular influences have In recent years a variety of popular influences have led to negative publicity for fast food companies and led to negative publicity for fast food companies and their productstheir products

Recent Influences on Consumer Attitudes Recent Influences on Consumer Attitudes toward Fast Food:toward Fast Food:

Fast Food Nation:Fast Food Nation: The Dark Side of the All-American Meal The Dark Side of the All-American Meal (Book by Eric Schlosser,(Book by Eric Schlosser, 2001)2001)Presents a scathing indictment of the fast food industry in Presents a scathing indictment of the fast food industry in the United States.the United States.

Supersize Me:Supersize Me: (Film, Dir. Morgan Spurlock, 2004)(Film, Dir. Morgan Spurlock, 2004)Documents the physical and psychological effects of Documents the physical and psychological effects of eating only McDonald's fast food, three times a day, every eating only McDonald's fast food, three times a day, every day, for thirty days.day, for thirty days.

Bad publicityBad publicity regarding fast food’s contribution to child regarding fast food’s contribution to child and adult obesity epidemicand adult obesity epidemicPublic reports have declared child and adult obesity a Public reports have declared child and adult obesity a “national epidemic” and have stressed fast food’s role in “national epidemic” and have stressed fast food’s role in the problemthe problem

The fast food industry The fast food industry has responded with:has responded with:

Health and fitness focused adsHealth and fitness focused adsAds are increasingly depicting fast food as part of an active, Ads are increasingly depicting fast food as part of an active, healthy lifestyle.healthy lifestyle.

Salads and other “healthier” menu choicesSalads and other “healthier” menu choicesThese items are deceptive: McDonald’s popular “Crispy Chicken These items are deceptive: McDonald’s popular “Crispy Chicken Bacon Ranch Salad” w/dressing contains 510 calories (55% from Bacon Ranch Salad” w/dressing contains 510 calories (55% from 31g fat), 1670mg of sodium, and has meat and toppings fried in 31g fat), 1670mg of sodium, and has meat and toppings fried in dangerous hydrogenated oils.dangerous hydrogenated oils.

Shift of focus from product to brandShift of focus from product to brandAds increasingly avoid showing subjects actually eating the Ads increasingly avoid showing subjects actually eating the products, and in many cases, do not even show the products products, and in many cases, do not even show the products themselves, but instead focus on reinforcing brand image and themselves, but instead focus on reinforcing brand image and awareness.awareness.

In a fiercely competitive arena where brand In a fiercely competitive arena where brand recognition and loyalty rules, advertising is the life’s recognition and loyalty rules, advertising is the life’s blood of the fast food industry.blood of the fast food industry.

Tenaciously pursuing cradle-to-grave brand loyalty, fast food Tenaciously pursuing cradle-to-grave brand loyalty, fast food companies have not only succeeded in making a big industry companies have not only succeeded in making a big industry truly massive, but they have also drawn fire from critics of truly massive, but they have also drawn fire from critics of their tactics, and unwanted attention from public health their tactics, and unwanted attention from public health concerns.concerns.

Commanding massive promotional budgets, and Commanding massive promotional budgets, and always adapting to public sentiments and moods, fast always adapting to public sentiments and moods, fast food advertising will continue to be a force to be food advertising will continue to be a force to be reckoned with.reckoned with.

In Conclusion:

Resources and LinksResources and Links Spending in the U.S. on Advertising for Fast Foods, Sodas, and AutomobilesSpending in the U.S. on Advertising for Fast Foods, Sodas, and Automobiles

http://care.diabetesjournals.org/cgi/content/full/26/2/546http://care.diabetesjournals.org/cgi/content/full/26/2/546

Food Advertising and Marketing Directed at Children and Adolescents in the Food Advertising and Marketing Directed at Children and Adolescents in the USUS http://www.ijbnpa.org/content/1/1/3http://www.ijbnpa.org/content/1/1/3

Ad Age Advertising Century: Icons: Ronald McDonaldAd Age Advertising Century: Icons: Ronald McDonald http://www.adage.com/century/icon02.htmlhttp://www.adage.com/century/icon02.html

McDonalds New Campaign Is The Appearance of a Good StartMcDonalds New Campaign Is The Appearance of a Good Start

http://www.businessweek.com/the_thread/brandnewday/archives/2005/03/http://www.businessweek.com/the_thread/brandnewday/archives/2005/03/mcdonalds_new_c.htmlmcdonalds_new_c.html

Adbrands.net: The leading US advertisers in 2004Adbrands.net: The leading US advertisers in 2004http://www.mind-advertising.com/us/http://www.mind-advertising.com/us/

Rolling Stone magazine: Fast-Food Nation: The True Cost Of America's Diet Rolling Stone magazine: Fast-Food Nation: The True Cost Of America's Diet http://www.mcspotlight.org/media/press/rollingstone1.htmlhttp://www.mcspotlight.org/media/press/rollingstone1.html