Quick-service Restaurant Chain Research Articles

Examining the Market Potential and Feasiblity of Chipotle Mexican Grill in the Chinese Market

Many U.S. quick-service restaurant chains have expanded their business into the Chinese market, The development in the fast food industry has provided people with a more conventional diet. However, people start to prefer a more healthy diet as the awareness and recognition of personal health rises in recent years. This research focuses on Chipotle Mexican Grills business potential to develop in the Chinese market and how to incorporate its business with several Chinese e-commerce platforms. The research has looked through literature reviews in the field of marketing strategies and management, global restaurant chains, healthy diets, and the Chinese market. The qualitative research design has helped the research to collect deeper insight from Chipotles American market and then employ it to the Chinese market. The results of the research recommended Chipotle enter the Chinese market as a direct sale store, allowing better control over service and quality. The results of the research indicated a good opportunity for Chipotle to collaborate with the Chinese e-commerce platform to make more profitability and more brand recognition. The results of the research also showed great feasibility for Chipotle to enter the Chinese market since there are enormous potential customers in the marketplace.

UNVEILING SUCCESS: PERFORMANCE MEASUREMENT SYSTEMS IN QUICK SERVICE RESTAURANT CHAINS

This study examines the importance and effectiveness of performance measurement systems in quick service restaurant (QSR) chains. With the highly competitive nature of the QSR industry, it is crucial for restaurant chains to implement robust performance measurement systems to track and evaluate their operational and financial performance. This research investigates the key metrics and indicators used in performance measurement systems within QSR chains, as well as the impact of these systems on business success. A combination of qualitative and quantitative research methods, including interviews and surveys, is employed to gather insights from industry professionals and managers. The findings shed light on the significance of performance measurement systems in driving operational efficiency, enhancing customer satisfaction, and improving overall business performance in the QSR industry.

Burger King India IPO: Investment Dilemma

Burger King India (BKI), a master franchisee of the leading global quick service restaurant (QSR) chain Burger King US, filed its red herring prospectus (RHP) on 5 November 2019, with the Securities Exchange Board of India (SEBI) expressing its interest in going public. BKI was a major franchise of a multinational QSR, and its going public in India showed the confidence that large global QSRs had in the Indian markets. Despite the volatility caused by the global COVID-19 pandemic, BKI launched its IPO on 2 December 2020. The case study captures the complexity and challenges faced by the growing Indian QSR market and its diverse players and provides information for industry analysis. The case also provides strategic and financial information along with initial public offer (IPO) information to assess BKI’s performance and debate whether the price set is appropriate given that BKI was a loss-making firm and the uncertainty surrounding the pandemic continued.

IT and Operations Miscoordination in a Supply Chain: Case of a Quick-Service Restaurant Chain

IT and Operations Miscoordination in a Supply Chain: Case of a Quick-Service Restaurant Chain

A Study of Consumer Behaviour on Purchase Intention towards McDonald’s in Malaysia

McDonald's has more than 36,000 restaurants worldwide and also is the world's leading quick service restaurant chain. In the international fast-food business, McDonald's has a strong vision of providing the finest fast-service eating experience. The objective of this research is to survey determinants which affect consumer behaviour on purchase intention towards McDonald’s in Malaysia. We would like to do a survey whether service quality, pricing, product quality and location preference are determinants of affecting consumer behaviour on purchase intention toward McDonald’s. Various sources including an online survey were used to obtain the primary and secondary data for this investigation. A total of 150 loyal customers of McDonald's will participate in the online survey via Google Forms. We tested the hypothesis using SPSS software. This study indicated that service quality, pricing, product quality and location preferences are significant determinants of affecting purchase intention towards McDonald’s. This research provides new insights, and recommendations are presented. Keywords: Location preferences, Purchase intention, Pricing, Product Quality, Service Quality

Investigating the Feasibility of Remote Recruitment and Data Collection in the Context of an In-Restaurant Intervention Study

ObjectivesConsumption of restaurant food is linked with increased energy intake and poor diet quality among children. Our ongoing cluster-randomized trial is designed to promote healthier eating among children in restaurants, with original plans to recruit families and collect data in local restaurants. Interactions with the first cohort were conducted remotely due to COVID-19, offering the opportunity to examine remote recruitment and data collection in the context of an in-restaurant intervention study.MethodsParents with a 4-to-8-year-old child were recruited from 2 locations (1 intervention, 1 control) of a local, quick-service restaurant chain in Summer 2021. Study information was posted online and in-restaurant. Interested parents contacted study staff via text, phone, or email and completed screening, followed by an online baseline survey if eligible. Participants received study materials (frequent diner card and placemat) via mail. Intervention materials promoted healthful kids’ meals, and control materials promoted kids’ meals generally. Families returned to the same restaurant 6 times during a 2-month exposure period, where placemats were available, and frequent diner cards could be used. In November 2021, families returned for a final restaurant visit, submitting photos of their child's meal and completing a final online survey.ResultsParents responded to study advertisements primarily via text (n = 61, 56% of inquiries) and 26 parents were recruited (17 intervention, 9 control). Twenty-one families (81%) completed final study procedures. Overall, parent comments about the study were positive, including statements such as “clear instructions” and “easy to complete.” Some recommended changes including “make the frequent diner card digital.”ConclusionsRecruitment was slower compared to in-person restaurant studies, but compliance and retention were high. For comparison, our in-person pilot research in this restaurant chain screened 134 families and enrolled 126 in one Summer, with retention just under 50%. Additional research is needed to maximize the feasibility of remote research in restaurants, perhaps leveraging successful remote data collection methods from the present study while returning to in-person recruitment when feasible.Funding SourcesNIH R01HD096748.

WoW! Momo – creating a sustainable WOW in innovative QSR chain brand

Learning outcomes The various learning outcomes of the case include the following: to provide information and help the students to understand how a start-up business succeeds with the proper branding and marketing; to help understand different marketing theories related to segmentation, targeting, positioning, branding, distribution and marketing process and the frameworks of understanding start-up business marketing with a practical example; to improve analytical skills and help evaluate marketing strategies related to segmentation, targeting, positioning, branding, distribution and marketing in the Indian quick-service restaurant (QSR) business; and to encourage learners to think differently towards solution generation and strategy decisions. Case overview/Synopsis The case portrays the dilemmas related to segmentation, targeting, brand positioning, distribution and start-up business marketing in the context of an Indian QSR. The present case strives to portray the journey of WoW! Momo is a QSR brand in India and highlights the company's branding and marketing challenges. Based on the challenges faced by the company and the decision dilemma pointed out in the case, the readers can get sufficient motivation to generate probable solutions. This was early 2007; Binod Kumar Homagai and Sagar Daryani, bosom friends, were on the verge of finishing their graduate studies in commerce from St. Xavier's College Kolkata. Pursuing Chartered Accountancy or MBA was the common trend as the career option among most commerce graduates then. Still, both Homagai and Daryani thought to be innovative and different in their career options. After a series of discussions, they determined to start with their favorite dish, momos, as an alternative brand proposition that would be opening off from the City of Joy, Kolkata. They managed to arrange a seed capital of INR 30,000 in 2008 and started their venture WoW! Momo. In the financial year 2018–2019, the company's revenue had already crossed INR 1170m, achieved its presence in 11 cities in India, and reached more than 243 outlets. This case has followed the qualitative research methods where in-depth interviews of the founders and stakeholders along with the observation method were used. The case unfolds a systematic solution of dilemmas related to segmentation, targeting, brand positioning, distribution and start-up business marketing in the context of Indian QSR business. This case can also be seen as one of the youth entrepreneurial success stories of Indians. Complexity academic level This case is primarily meant for second-year students in a postgraduate program in business management. The case could also be discussed in an executive development program on marketing/brand management/business strategy. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

Variable work schedules, unit-level turnover, and performance before and during the COVID-19 pandemic.

The use of variable work schedules (VWS)-altering the number and timing of employees' work hours on a daily or weekly basis-is an increasingly common human resource (HR) practice designed to increase staffing flexibility. Little research, however, has examined whether and how the use of VWS affects an organization's turnover rates and/or financial performance at the unit level. Despite the common assumption that their use helps firms achieve higher performance by matching the supply of labor to demand fluctuations-especially during a crisis such as coronavirus disease (COVID-19)-this study demonstrates otherwise. I propose that greater use of variable schedules can lead to higher turnover rates and that this effect has been more pronounced during the pandemic. I also argue that managerial reliance on VWS can decrease not only the level of financial performance but also performance recovery during the pandemic-with unit-level turnover as the mediating mechanism. Using data from 1,678 units of a U.S. quick-service restaurant chain across different phases of the COVID-19 pandemic (October 2019-December 2020), I find support for these predictions. Results suggest that scholars and practitioners should reconsider the general assumption that staffing flexibility helps organizations adapt to uncertain environments. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Effects of personality on the efficacy of judgmental adjustments of statistical forecasts

PurposeThe purpose of this paper is to investigate the effects of personality dimensions (conscientiousness, neuroticism, extraversion, agreeableness, openness to experience, locus of control) on the efficacy of judgmental adjustments of statistical forecasts.Design/methodology/approachThis paper uses a two-level hierarchical linear model to analyze a large data set obtained from an organizational setting (a quick service restaurant chain) that includes 3,812 judgmental adjustments of sales forecasts made by 112 store managers.FindingsThe results indicate that the average forecast accuracy improves as a result of judgmental adjustments, but performance of individual forecasters varies considerably based on their personality. Specifically, the trait of openness to experience tends to improve forecast accuracy while extraversion and external locus of control have negative effects.Originality/valueIntegration of human judgment with analytics algorithms is a major challenge for organizations. Documenting the impact of these traits on forecast accuracy opens the door for forecasting support system design, training, personnel selection and correction strategies that can be applied to judgmental adjustments.

Price promotions offered by quick service restaurants in Australia: analysis from an obesity prevention perspective.

To assess the price promotions offered by major quick service restaurant (QSR) chains in Australia from an obesity prevention perspective. Cross-sectional audit of ten of the largest QSR chains in Australia. We collected information regarding temporary price promotions and 'combination deals' offered by each chain over thirteen consecutive weeks in 2019-2020. We assessed the type of promotions, the magnitude of discount, and the energy content and healthiness of items promoted (based on Victorian Government criteria). Melbourne, Australia. Ten major QSR chains. Temporary price promotions (n 196) and combination deals (n 537 on regular menus, n 36 on children's menus) were observed across the ten selected QSR chains. In relation to temporary price promotions, the mean magnitude of discount for main menu items (n 75) was 41·7 %. The price reductions and energy content of combination deals varied substantially the by chain, the meal size and the sides/drinks selected as part of the 'deal'. When the lowest-energy options (e.g. small chips, small sugar-free drink) were included as part of each combination deal, the mean energy content was 2935 kJ, compared to 5764 kJ when the highest-energy options (e.g. large fries, large sugar-sweetened drink) were included. Almost all available products were classified as unhealthy. Price promotions are ubiquitous in major QSR chains in Australia and provide incentives to consume high levels of energy. The action to restrict price promotions on unhealthy foods and ensure lower-energy default items as part of combination deals should be included as part of efforts to improve population diets and address obesity in Australia.

Impact of an Innovative Video Demonstration on Perceptions and Attitudes Toward McDonald’s Product Quality

ABSTRACT In spite of product quality improvements, young adults are turning away from Quick Service Restaurant chains in pursuit of a healthier diet and lifestyle. Restaurants struggle to communicate improvements to this skeptical audience that is also shifting away from traditional media. An innovative video demonstration is introduced as a form of online advertising that may break through to young adults and influence their perceptions and attitudes. This study tests whether this approach can influence young adult perceptions and attitudes toward product quality for McDonald’s restaurants in the USA. Results show that not only can this type of video influence perceptions of product quality, but their influence can also extend to attitudes toward the restaurant experience and behavioral intentions overall. Results respond directly to several questions in the communications literature regarding online video advertising and its effectiveness. Results also provide guidance to marketing practitioners on what may be effective message and creative strategies.

Developing Sustainable Performance Measurement System for Emerging Quick Service Restaurant Chains

This research evaluates the practices of performance measurement systems (PMSs) in quick-service restaurant (QSR) chains. It proposes a sustainable PMS (SPMS) for emerging QSR chains enabling them to enhance their practices and achieve their strategic goals. A sequential explanatory mixed methodology was undertaken starting with self-administered survey directed to QSR managers in international and national chains in Egypt. This informed the second phase of a Delphi study with QSR experts. The results showed significant differences between the practices of PMSs in international and national chains. The research used an innovative approach to develop a meaningful and SPMS for supporting emerging QSR chains to enable them functioning properly in their environment, achieve their economic and operational goals, and compete successfully with international QSRs. Implications and limitations of the study were also discussed.

Marketing to Children Inside Quick Service Restaurants: Differences by Community Demographics

In the U.S., children regularly consume foods from quick-service restaurants, but little is known about the marketing strategies currently used inside quick-service restaurants. This study aims to validate a child-focused Environmental Assessment Tool for quick-service restaurants, evaluate marketing strategies inside and on the exterior of quick-service restaurants, and examine differences by community race/ethnicity or income. The inter-rater and test-retest reliability of the Environmental Assessment Tool were assessed across the top 5 national quick-service restaurant chains. Marketing techniques in 165 quick-service restaurants (33 per national chain) in socioeconomically and racially/ethnically diverse communities throughout New England were examined in 2018-2019. Mixed methods ANOVA examined the differences in marketing techniques in 2020. The inter-rater and test-retest reliability of the Environmental Assessment Tool were high (Cohen's κ>0.80). Approximately 95% of quick-service restaurants marketed less healthy foods, whereas only 6.5% marketed healthy options. When examining the differences by community demographics, there were significantly more price promotion advertisements inside and on the exterior of quick-service restaurants in lower-income communities. In addition, there was a greater number of child-directed advertisements with cartoon or TV/movie characters as well as fewer healthy entrée options and more sugar-sweetened beverage and dessert options on the children's menu inside quick-service restaurants in communities with higher minority populations. Environmental Assessment Tool is a valid tool to evaluate marketing inside quick-service restaurants. Results suggest that there is a substantial amount of unhealthy food and beverage marketing inside quick-service restaurants, with differences in the number and types of techniques used in lower-income and minority communities. Policies that limit quick-service restaurant marketing to children should be considered.

Taste Ratings of Healthier Main and Side Dishes among 4-to-8-Year-Old Children in a Quick-Service Restaurant Chain.

Restaurants are regular eating environments for many families. Children’s consumption of restaurant foods has been linked with poorer diet quality, prompting emerging research examining strategies to encourage healthier eating among children in restaurants. Although taste is a primary determinant of restaurant meal choices, there is a lack of research considering children’s perspectives on the taste of different healthier kids’ meal options. The current study sought to examine, via objective taste testing, children’s liking of and preference for healthier kids’ meal options at a quick-service restaurant (QSR) and to describe bundled kids’ meals with evidence of both taste acceptability and consistency with nutrition guidelines. Thirty-seven 4-to-8-year-old children completed taste tests of ten healthier main and side dish options. Liking and preference were assessed using standard methods after children tasted each food. Children also reported their ideal kids’ meal. Results show the majority of children liked and preferred three main (turkey sandwich, chicken strips, peanut butter/banana sandwich) and side dishes (yogurt, applesauce, broccoli), with rank order differing slightly by age group. Accepted foods were combined into 11 bundles meeting nutritional criteria. Results highlight healthier kids’ meals with evidence of appeal among children in a QSR. Findings can inform future research and may increase the success of healthy eating interventions in these settings.

Secondary Business Model Innovation in Emerging Economies

ABSTRACTWe study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.

Wow Momo Foods Pvt. Ltd.: in search of new growth drivers

Learning outcomes The case presents an ideal platform for discussing the branding strategy, brand elements and the factors that contributed to success of an entrepreneurial venture in the quick-service restaurant (QSR) segment. Further, it enables students to discuss changes that are necessitated as the firm looks for new growth avenues. After working through the case and assignment questions, students will be able to analyze the entrepreneurial journey of a startup in red ocean markets by assessing the factors that contributed to its success; comprehend the importance of branding strategy for small business – choosing/designing of brand elements and selecting the positioning strategy; and assess changes needed in the branding strategy over time and devise strategies for the continued success of the firm. Case overview/synopsis Kolkata-based QSR chain Wow! Momo was bootstrapped with a meager INR 30,000 in 2008 by two school friends Sagar Daryani and Binod Kumar. It went on to become India’s Wow! Momo very first QSR specializing in momos. By the year 2019, Wow! Momo was dishing out India’s favourite street food, “momos” from 300 outlets across 15 cities. It also claimed to have captured 90% market share in the organized momo business. The startup grew at a CAGR of over 50% between 2015 and 2019 and reported INR 1.19bn revenue in financial year 2019 with an EBITDA of 9.3%. Wow Momo Foods Pvt. Ltd (WMF), the parent company of Wow! Momo, had tasted stupendous success within a short period and set an ambitious goal of achieving revenue of INR 10bn by 2023–2024. Wow! Momo had achieved top of mind recall among the target customers and was also vying for the same share of wallet as formidable international giants such as McDonald’s, Domino’s, Burger King and KFC. However, compared to these large players, Wow! Momo offered a limited menu and a smaller average ticket size. At the same time, Wow! Momo’s market share was also threatened by a host of branded momo players that offered a similar menu and pricing. Both these factors did not argue well for WMF’s mammoth growth objective. Achieving revenue of INR 1.19bn in a matter of just 10 years was no small feat, but reaching targeted INR 10bn in half that time needed a different game plan altogether. The founders clearly needed to rethink their strategies for the next phase of growth. What would be the next growth driver for the company? Should it look for greener pastures outside India? Was it time to diversify the menu and think beyond momos? If so, then should new items be added to existing menu or a new brand be launched altogether? The case maps the journey of two entrepreneurs as they went on to set up a successful QSR chain. It examines their trials and tribulations as well as successful implementation of marketing strategy. It also looks at the dilemmas faced by a startup as it searches for new avenues for growth. Complexity academic level Graduate and postgraduate courses in Management. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Kauai: Extending a fast-food brand into traditional retail as a growth strategy

Subject area of the teaching case The case can be used in the subject areas of marketing, strategy, business model innovation in an emerging market. The case introduces a practical example of brand extension as a growth strategy employed by an existing brand to secure additional revenue channels and customer touch points. Student level This teaching case is aimed at postgraduate business students such as Master's degrees in Business Administration degrees, postgraduate diplomas, executive education, or specialist Master's degrees. Brief overview of the teaching case Kauai is a health restaurant with 150 stores across South Africa, Namibia and Botswana, more than 50% of which are franchise-owned. An acquisition of the original Kauai quick-service restaurant (QSR) chain by Real Foods in 2015 leads to a complete rebrand and overhaul of its product offering and store experience. Since the acquisition, the business operates as a startup with few formal processes and KPIs in place to drive performance. Despite the obvious success the team is battling with the factors that need to be considered to ensure that they can scale adequately to realise full potential. Plus how should they position the existing brand effectively within the FMCG space to maximise the contribution of brand equity to its success? Expected learning outcomes –The understanding around the business model of a strong, existing brand entering a highly competitive and price-sensitive FMCG. –Analysing the marketing strategy and brand identity approaches that could be used. –An understanding of the brand extension strategy that could be implemented in light of various challenges. –Understanding how retail marketing works in an emerging market context.

Availability of Healthier Children's Menu Items in the Top Selling Quick Service Restaurant Chains (2004-2015).

To describe time trends in the availability of healthier children's menu items in the top selling quick service restaurant (QSR) chains. We used Technomic Inc.'s MenuMonitor to construct a data set of side and beverage items available on children's menus from 2004 to 2015 at 20 QSR chains in the United States. We evaluated the significance of time trends in the average availability of healthier fruit and nonfried vegetable sides and nonsugary beverages offered as options and by default in children's meal bundles. Healthier sides and beverages offered as options increased by 57.5 and 25.0 percentage points, respectively, from 2004 to 2015 but leveled off starting in 2013. Healthier items bundled by default also increased during this time frame, with most adoption occurring after 2010. However, these items remain relatively uncommon, with less than 20% of meal bundles including healthier items by default. All tests evaluating time trends in the availability of healthier items in meal bundles were significant at P < .001. The QSRs evaluated made improvements in the quality of sides and beverages offered on children's menus from 2004 to 2015. Additional efforts are needed to increase the percentage of healthier options offered by default.

Investigating the Customers' Perceptions towards the Impact of Rumours on the Popularity of Quick Service Restaurant Chains in Egypt

Quick Service Restaurants (QSRs) is always characterized by being intangible and highly affected by word of mouth. Sometimes word of mouth could result in either positive or negative rumours about the restaurants especially the brand ones. This study aims to measure both negative and positive impact of rumours on the popularity and image of quick service restaurant chains in Egypt. Three hundred questionnaire forms were distributed between customers of QSRs in Greater Cairo such as Burger King, Hardees, and KFC. The overall results indicated that the main cause of spreading rumours is the lack of accurate information from the chain’s side. So, the best way for restaurant managers to avoid rumours is controlling their communication channels with their customers in an effective way, and addresses any negative rumor as quickly as they can.

Effects of a randomized intervention promoting healthy children's meals on children's ordering and dietary intake in a quick-service restaurant.

Children's consumption of restaurant foods is associated with higher energy intake and lower nutritional quality compared to foods prepared at home. The aim of this pilot study was to test whether an in-restaurant intervention promoting healthy children's meals (i.e. two meals that met nutrition recommendations and were thus healthier than typical children's meal offerings across leading restaurants) affected children's meal selection and intake. Families with 4-to-8-year-old children were recruited from one location of Anderson's Frozen Custard, a regional quick-service restaurant chain. Families were randomly assigned to return to the restaurant during an intervention or control period and were blinded to group assignment. All families received free meals. During the intervention period families also received placemats featuring two healthy "Kids' Meals of the Day" upon restaurant entry. After families finished dining, researchers recorded children's orders and collected leftovers for quantifying dietary intake via weighed plate waste. Poisson regression and chi-square tests were used to compare children's orders between study groups, and t-tests were used to test for differences in dietary intake among children ordering a promoted healthy entrée (main dish) versus those who did not. Fifty-eight families participated. Children who were exposed to the study placemats prior to ordering ordered a significantly greater number of healthy food components compared to controls (p = 0.03). Overall, in the intervention group, 21% of children ordered a healthy entrée or side dish, versus 7% of controls. Children who ordered one of the promoted healthy entrées consumed less saturated fat across the total meal compared to those who did not (p = 0.04). Manipulating the prominence of healthy choices in restaurants may shift children's meal selections. Future research should build on these initial promising results, aiming to increase the potency of the intervention to achieve more widespread effects.