Re-opening their doors later that year it became one of the first restaurants of its kind: fast, efficient, and cheap. The brothers were able to sell their hamburgers for fifteen cents due to their assembly line approach to making their food consequently McDonald’s fast food was born. The McDonalds brothers revolutionized the food industry with the introduction of the assembly line system. The kitchen was customized with equipment made to help the flow of the cooks at their stations and not cause mishaps or collisions. The success of the McDonalds model led other restaurants like Burger King, Taco Bell, and Wendy’s to utilize the same assembly line approach as they did.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image.
For example, company gives toys to kids on happy meals, the company offers discount coupons and freebies for certain products. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015) Public relation McDonald’s do public relations activities help promote the business in target market. For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of Green environmental program support communities along with boosting the goodwill of the brand. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015) Direct
Chipotle's business is fully dependent on company-operated restaurants which explains the significance of this division to its stock. Chipotle enjoys higher average spend per customer than most of its competitors, given its high quality of food. For example, in McDonald's, the average spend per customer is around $4 whereas the corresponding figure in Chipotle is around $11-12. The company has successfully marketed itself as a restaurant serving natural, hygienic, and organic food in an upscaled ambiance, for which the consumers are often ready to pay a slight premium (“Chipotle Mexican Grill,” 2017). Another reason why the company enjoys a higher average spend per customer is because it has restaurants only in developed countries, where the average spend is usually higher than developing countries.
By offering such a diverse array of healthy products Panera has been able to grab a large market share within their niche market. And by being a big player in that niche market of healthy fast food Panera has a built up a strong loyal customer base that will help them continue to grow as a brand across the United States. 2. The continuation of their technological goals to hold competitive advantage over their rivals. They already copied Starbucks and now offer Wi-Fi in all of their restaurants.
Their comment will also improve the company management style and the company profit. Customers is one of the most important stakeholders to the company. Suppliers Suppliers are the internal stakeholders as they work with McDonald’s. McDonald’s have many different suppliers for their foods and drinks. They get the food ingredients from one supplier and the drinks are from another supplier.
The elements of manufactured, warehouse, and distribution capabilities benefit Tim Horton’s restaurants because it is improving Tim Hortons’ product quality and consistency, protect proprietary interests, facilitate the expansion of their product offerings, control availability and timely delivery of products, provide economies of scale and labour efficiencies, and lastly generate additional sources of income and financial returns. (Team, T. 2014). In 2013, Tim Hortons’ revenue was nearly $3.2 billion of, compared with Burger King’s $1.1 billion. (Ycharts.com,
Yes, I thought to myself, I have arrived at Chipotle. In 1993, Steve Ells, a former sous chef at Stars in San Francisco, opened the first Chipotle at the University of Denver in Colorado. Chipotle’s mission was to give a customer fast food that was good, quick, and contained no chemicals or pesticides. The “fast food restaurant” took off and within 2 years, another Chipotle had been constructed. Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly.
Chipotle is in the fast casual industry where competition is extremely intense since there are so many different dining options. An industry like fast casual restaurants has a very high growth rate therefore there is not just one company that has the market cornered. What sets the restaurants apart is not cost but product differentiation; they position themselves in the market with their slogan of Food with Integrity. Since restaurants in the fast casual industry are priced fairly in the same range Chipotle uses different product features to set themselves apart from the others (parature.com). The first value driver in Chipotle’s differentiation strategy is the product quality; they utilize local farmers who are conscience of the environment.
Looking at the competitors, Domino’s has been evenly prized with Pizza hut. But the prices are high as compared to KFC and McDonalds. Affordability is the key to the success of Domino’s. To maintain the price level many new and innovative schemes are launched regularly. It gives its customers value for one’s money always.