Qsr Indus

Simmons Comparative Survey on Burger King, Mc Donald’s Taco Bell and Wendy’s
547 P - Case Write Up 1 19 October, 2010 Shivanee Nanda Ev MBA 2012


QSRs or Quick Service restaurants are a form of limitedservice restaurants (LSR) that provide inexpensive food and quick service, defined by the absence of table service or other frills of a “dine- in” experience. Typically, food is ordered and paid for at the counter or drive-thru window at the time of ordering, prior to eating, and is either eaten on the premises or taken out. Typical check sizes for this segment are $8 or less per person. The QSR segment in the US has demonstrated steady growth over a long period of time. According to industry sources, QSR sales have grown at an annual rate of 3% over the past 10 years, totaling approximately $231.4 billion for the 12-month period ended June 2009.

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1) QSRs are a casualty of the Recession: Restaurant sales have slumped as the U.S. slipped into recession. QSRs fought for customers with aggressive pricing and have been able to fare better than many restaurants in other segments. Despite growing at more than 3% throughout the early part of the decade, QSRs struggled to grow just 1.6% in 2009 to $168.9 billion And even with what appears to be a rebounding economy, QSR sales are forecast to grow just 2.4% in 2010 to $173 billion. 2) Healthy Menu is still lacking in most QSRs: The QSR segment has come under fire in the fight against obesity and government regulation is adding another layer of nutritional transparency to QSR menus. Sufficient customer demand warrants greater efforts to provide healthier menu options and many believe QSRs could do better, particularly regarding the kids’ menu. 3) Retailers are horning in on QSRs:Retailers are taking advantage of restaurant trip attrition and selling convenience foods that emulate what is found on QSR menus. This is evidenced by the likes of...