Us Fast Food Hamburger Restaurant Market Size As Sales In: Fill & Download for Free

Although I can't track down any good info on the growth of the major chains over time, it sounds like the Where's the Beef? ad campaign in the '80s [1] is what differentiated Wendy's from the pack [2]:After successful early growth of the chain, sales flattened as the company struggled to achieve brand differentiation in the highly competitive fast-food market. This situation would turn around in the mid-1980s. Starting on January 9, 1984, elderly actress Clara Peller was featured in the successful "Where's the Beef?" North American commercial campaign written by Cliff Freeman. Her famous line quickly entered the American pop culture (it was even used by Walter Mondale in a debate with Gary Hart in the Democratic primary election) and served to promote Wendy's hamburgers. Peller, age 84, was dropped from the campaign in 1985 because she performed in a commercial for Prego spaghetti sauce, saying she "finally found" the beef.On the Wendy's website, they describe 1984 as "one of Wendy's most successful to date" [3].Note: when fast food/burger companies are ranked, it's usually by size. The top few from [4] are:McDonald's - 31,000+ storesBurger King - 11,500+ storesWendy's - 6,700+ storesCarl's Jr. - 3,000+ storesEDIT: In terms of US sales, Wendy's just passed Burger King as #2 in 2011 [5].McDonald's - $34.2 billion (+26% last 5 years)Wendy's - $8.5 billion (+9% last 5 years)Burger King - $8.4 billion (+0% last 5 years)Subway ($11.4 billion) and Starbucks ($9.8 billion) surpass Wendy's and Burger King in restaurant chain sales (five years ago, Burger King and Wendy's were #2 and #3 of all restaurant chains).-------[1][2] http://en.wikipedia.org/wiki/Wendy's#Advertising[3] http://www.wendys.com/about_us/story.jsp[4] http://en.wikipedia.org/wiki/Carl%27s_Jr (these numbers are from 2007 though)[5] http://www.businessweek.com/ap/2012-03/D9TJLUH00.htm

Does that really surprise you?A lot of us don’t realize that McDonald’s isn’t really a burger-flipping restaurant chain. Well, it is, but not purely. Peel back the layers and you’ll find that the corporate entity is actually one hell of a real estate company. Former McDonald’s CFO, Harry J. Sonneborn, is even quoted as saying, “we are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.”The fast food giant came from humble beginnings. The McDonald brothers, sons of Irish immigrants, first opened up a hot dog stand in 1937 in Pasadena before venturing out to open their first restaurant. By 1953 they had seen some success using an assembly line method of burger preparation. They’d already started franchising the system, but not the atmosphere or name of their restaurant.Meanwhile, a milkshake machine salesman named Ray Kroc had taken notice of the brother’s restaurant concept after selling them 8 of his machines. Ray could see the massive potential and quickly partnered with the McDonald brothers, serving as a franchising agent. After six years of working with the McDonalds and finding their ambition ultimately falling short of his own, he elected to buy them out and became the owner of McDonald’s Corporation in 1961.Franchising is a model by which fast food chains can expand quickly and efficiently by using the money of small investors. Ray Kroc perfected new franchising techniques, increasing the corporation’s size while maintaining strict control of its products. Around this time is when CFO Sonneborn came up with the strategy that McDonald’s continues to use today.Instead of making money by selling supplies to franchisees or demanding huge royalties…the McDonald’s Corporation became the landlord to its franchisees.They bought the properties and then leased them out – at large markups. In addition to that regular income, the corporation would take a percentage of each shop’s gross sales.Today McDonald’s makes its money on real estate through two methods. Its real estate subsidiary will buy and sell hot properties while also collecting rents on each of its franchised locations. McDonald’s restaurants are in over 100 countries and have probably served over 100 billion hamburgers. There are over 36,000 locations worldwide, of which only 15% are owned and operated by the McDonald’s corporation directly. The rest are franchisee-operated.During the 2008 recession, McDonald’s leaned heavily on this facet of their business as they capitalized on an anemic property market – buying up more of the land and buildings where it operates. The company owns about 45% of the land and 70% of the buildings at their 36,000+ locations (the rest is leased).It’s a brilliant strategy. Being able to collect on rents helps insulate them from the ups and downs of the business of flippin’ burgers. You have to make rent after all.In 2014, the McDonald’s corporation made $27.4 billion in revenues, of which fully $9.2 billion came from franchised locations and the rest ($18.2 billion) was from company-operated restaurants.Hold up, we can hear you saying “The majority of their revenue came from company-operated restaurants, a full two-thirds!” Yep, but what about the profit margins?It costs way more money to run your own store than it does to sit back and collect cash.McDonald’s keeps close to 82% of all their franchise-generated revenue versus only 16% of its company-operated restaurant revenue. So who’s really contributing more to the bottom line?Of that $18.2 billion generated by company-operated stores in 2014, the corporation keeps just $2.9 billion. Of the $9.2 billion coming from franchisees, the corporation keeps $7.6 billion.In 2014 McDonald’s made 4.75 billion dollars in net income (sweet profit dollars). Essentially we could say that 82% of every dollar in profit is generated by a franchisee. That’s an intense statement about a “burger company”.It’s because of the unique makeup of McDonald’s (and the fact that the business is struggling on a whole) that investors are pressuring the company to spin off its land and buildings into a separate entity. Revenues in 2014 were down from year-ago levels and 2015 looks to be even more depressed than 2014 but if you considered just the real-estate portion of the business, McDonald’s suddenly becomes way more exciting.Imagine a company with $40 billion dollars’ worth of real estate assets (before taking depreciation into account) and yearly revenues of $9 billion, of which nearly $4 billion is profit. That’s the McDonald’s real estate investment trust (REIT). Not bad right?To put those numbers into further perspective, this fictional REIT would represent over 40% of McDonald’s current market cap while bringing in 80% of its profits.McDonald’s is a great example of how diversification helps to not just grow a business’s income but also lower its financial risks. McDonald’s is both a fast food and real estate business. As a fast food company, it doesn’t just operate its own restaurants, it also franchises the brand. By franchising the brand, they’re able to achieve much larger economies of scale because other companies or entrepreneurs finance the expansion of the brand into many other places all over the world. They’re also able to earn more income via higher margins since the income they earn from the percentage of sales of their franchisees don’t require them to spend for operating those franchised branches.Relying on income from franchises alone can be rather risky. Why? Franchise agreements aren’t forever and as such, they can end. What happens if many franchisees terminate their agreement? However unlikely, it’s still a business risk and by continuing to build and operate company owned branches, they are able to mitigate potential effects of such a risk.Being in the real estate business also helps McDonald’s earn more income and somewhat diversify its portfolio. Buying properties and leasing them to franchisees is a very clever way of effectively doubling the income earned from franchisees! And for the other properties they don’t lease out to franchisees, they can always rent them to someone else or simply flip them for a profit.They may, however, need to come up with new ways to keep in step with their industry’s current developments if this diversified portfolio is to continue being profitable.McDonald’s has been struggling for a while now to compete against fast-casual joints like Chipotle and Shake Shack. They used to hold the promise of good fast-food but now the food is neither fast, nor good. In fact, in 2014, the average drive-thru wait time was over three minutes (the longest it has ever been in about 15 years).The rot has started to set in, and unless the company pivots quickly and efficiently…they might see themselves left behind. Consumer’s tastes have changed and unless McDonald’s proves itself agile enough to adapt with the times, you might see the company get cannibalized for some time yet.Maybe they should just go full Donald Trump and become a full-fledged real estate empire. They’re already considering increasing the percentage of franchised restaurants so it’s clear that the leadership at the company is leaning in that direction anyway.it was an examplei hope that could be more help

The following is from:Food TimelineChicken burgersWhat exactly is a chicken burger? Great question! With no exact answer.Ground protein mixtures bound with egg, bulked with breading, & blasted with spices have been enjoyed from ancient times forwards. Think: fish cakes, croquettes, timbales, & kofta. This is a short course on meatloaf. Recipes and proteins vary according to culture and cuisine. Until recently, most of these dishes required pre-cooked meats. It was a great way to serve leftovers. Today's supermarket meat counters offer an interesting variety of raw ground protein products. All of which can be assembled, formed, combined for cooking on whatever heat source to satisfy whichever course. American food companies offer similar products promoted for convenience.The term "chicken burger" first surfaces in USA print after WWII. Recipes are all over the culinary map. The unifiying "burger" factor means nestled in a personal-sized bread begging for condiments.[1946: Barnyard burgers made with ground chicken]"Chicken Burgers. Barnyard-burgers are made from ground cold chicken, if this delicacy is ever left lying around at your home, or turkey or roast. Onion and bread stuffing may be added, moistened with one or two eggs and and seasoned to taste. Saute until brown in chicken fat and serve on whopping big biscuits."---"Hamburger Recipes are Items for Collectors, With a Range to Suit Cannibal and Gourmet," Corsicana Daily Sun [TX], July 18, 1948 (p. 2) [NOTE: most likely this ground chicken was pre-cooked, see 1957.][1955: commercial product]"It's New. Chicken Burgers, 7 oz, 49 cents."---display ad, News Palladium [Benton Harbor MI], December 15, 1955 (p. 25) [NOTE: no description or illustration.][1956: barbecued Barnyard burgers ]"Chicken burgers. One cup cooked chicken, chopped, 1 egg slightly beaten, 1 cup soft bread crumbs, 2 tablespoons minced parsley, 1 tablespoon minced onion, 1/4 teaspoon salt; dash of pepper. Combine all ingredients and form into 4 patties. Broil until brown on both sides. Serve hot in toasted enriched buns. Garnish with stuffed olive."---"Tuna and Chicken Burgers Add Variety to Barbecue," The Bee [Danville VA], June 7, 1956 (p. 8)[1957: pre-cooked chicken patties]"...the newest taste treats of them all...Chicken Burgers, Pre-cooked chicken, ground and seasoned and made into patties. Can be fried or broiled. each 19 cents"---display ad, Berkshire Eagle [MA], January 24, 1957 (p. 28)[1961: fast food chicken sandwich]Chicken sandwiches are served on hamburger-type buns with similar condiment/vegetable choices.[1966: canned chicken burgers]"Chicken burgers, 2 cans 27 cents."---display ad, Journal-Daily News [Hamilton OH] July 6, 1966 (p. 16)[1989: chicken burgers promoted as low-cholesterol alternatives]"If you're worried that you'll have to skip spring and summer barbecues to stay on a heart-health diet, here's some good news for the chef. The test kitchens have developed two new flavorful recipes, low in fat and without added salt that you can serve at yopur next barbecue while you deep your cholesterol in check. Mouth-watering Barbecue Chicken Burgers are a tasty alternative to traditional, high fat foods such as hot dogs and hamburgers. Filled with oats for a hearty texture and flavor, these burgers are a healthy source of cholesterol-lowering soluble fiber....To booste their nutritional benefit, why not serve Barbecue Chicken Burgers on whole wheat buns with lettuce and tomato? For an added burst of flavor, top them with a tangy, yogurt-based sauce, instead of condiments high in sodium...Barbecue Chicken Burgers2 1/2 cups finely chopped cooked chicken1 cup oats (quick or old-fashioned, uncooked)One 8-ounce carton low fat plain yogurt1/4 cup chopped onion2 egg whites1 tablespoon minced parsley1 teaspoon chili powder1 tablespoon prepared mustard6 whole wheat hamburger buns, split, toasted.Lightly coat rack of broiler pan with vegetable oil cooking spray. Combine chicken, oats, 1/2 cup yogurt, onion, egg whites, parsley and 1/2 teaspoon chili powder; mix well. Shape to form 6 burgers. Place on rack of prepared broiler pan or over medium-hot coals on outdoor grill so burgers are 4-5 inches from heat. Broil 5 minutes; turn. Continue broiling 5-7 minutes or until golden brown. For sauce, combine remaining 1/2 cup yogurt, mustard and remaining 1/2 teaspoon chili powder; mix well. Top each burger with 1 tablespoon sauce. Serve on whole wheat bun. Garnish with lettuce and tomato, if desired."---"Enjoy barbecues and still keep cholesterol in check," The Telegraph [Alton IL]. May 31, 1989 (p. B5)Chicken sandwiches (fast food)While recipes for breaded, fried, boneless chicken descend from Old World recipes (think: wiener schnitzel, S. Truett Cathy's Atlanta-based Chick-Fil-A is generally credited for introducing chicken sandwiches to the fast food world. They may (or may not) have been the first food restaurant to make a chicken sandwich. They were, however, the first to capitalize on it. In the American land of hamburgers & hot dogs, this was a pretty daring and brilliant move."1961 Truett invents the boneless breast of chicken sandwich, calling it a "Chick-fil-A." He perfected the recipe over a four-year period using cooking techniques from his mother’s humble boarding house kitchen."SOURCE: company web.Records of the U.S. Patent & Trademark officeconfirm Chick-Fil-A brand foods were introduced to the American public June 27, 1964:"Word Mark CHICK-FIL-A Goods and Services IC 029 030. US 046. G & S: BREAD CRUMBS (SEASONED COATER), PICKLES (KOSHER DILL CHIPS), AND PEANUT OIL. FIRST USE: 19640601. FIRST USE IN COMMERCE: 19640627 Mark Drawing Code (3) DESIGN PLUS WORDS, LETTERS, AND/OR NUMBERS Design Search Code 03.15.03 - Chickens, hen, chicken; Chickens, rooster; Chicks; Rooster 03.15.24 - Stylized birds and bats 27.03.03 - Animals forming letters or numerals Serial Number 72296117 Filing Date April 22, 1968 Current Filing Basis 1A Original Filing Basis 1A Registration Number 0866527 Registration Date March 11, 1969 Owner (REGISTRANT) CHICK-FIL-A, INC. CORPORATION GEORGIA 535 CENTRAL AVE., SUITE 102 HAPEVILLE GEORGIA 30054 Assignment Recorded ASSIGNMENT RECORDED Type of Mark TRADEMARK Register PRINCIPAL Renewal 1ST RENEWAL 19890311 Live/Dead Indicator LIVE"About the founder:"S. Truett Cathy likes to say that he first got in the restaurant business at the age of 8. At that tender age he bought six Cokes for a quarter, then sold them to his neighbors for a nickel apiece. His profit on a half dozen sales was a nickel. Fifty-four years later, as founder and president of Chick-fil-A, Inc., Cathy predicts his company's sales for 1983 will reach about $130 million...In 1946 Cathy opened his first restaurant, a coffee shop with 10 stools and four tables and chairs across from the Ford Motor Co. plant in Atlanta. Five years later he opened another one. The fare at these modest restaurants was the usual--hamburgers, steaks, chicken. The chicken, though, was a problem. It always took longer to cook, and when everything else in an order was ready, the chicken held it up. 'We finally discovered you could cut the cooking time in half by taking the bone out,' Cathy said. He decided to use just the breast portion, did some experimenting to develop a light breading, putting the whole thing on a bun, added some cole slaw and potato salad, and Chick-fil-A was born. That was about 1960. In 1967, Chick-fil-A opened 'literally in a hole in a wall' in its first shopping center in Atlanta. 'In 1974, we opened up 14 units, a milestone for us,' Cathy said. 'Now we're coast to coast..."...Full meals, salads and desserts have been added to the menu, but the classic Chick-fil-A meal is centered around a solid chicken breast, covered with a thin bread coating...Cathy claims Chick-fil-A has the world's record forooking a chicken breast--four minutes. It took a long time for Chick-fil-A to get much national attention with its boneless breast sandwich. Today, many fast food restaurants offer something similar. 'We say we're the first and the best,' Cathy said."--- "Cathy Puts His Chicken Where Your Mouth Is," The Winchester Star [VA], December 19, 1983 (p. 30)Chick-Fil-A also laid foundation for today's popular shopping mall food courts:"When S. Truett Cathy started his Chick-fil-A Inc. restaurant chain 21 years ago, he had trouble convincing mall developers to lease him space. Developers then believed that eating and shopping did not mix. Cathy demolished that theory. A year after his first Chick-fil-A opened in Atlanta's Greenbriar Mall in 1967, it had the highest sales per square foot in the shopping center. Landlords still discouraged the idea in the first few years, but Cathy continued to open new outlets in malls in the late 1960s and early 1970s. He discovered that malls presented special opportunities. For one thing, Chick-fil-A could take advantage of a captive market, often luring in passers-by with free samples of chicken breast sandwiches. Locating restaurants in malls also eliminated the need for real estate selection and construction of buildings and parking lots, allowing faster growth. Today, the Atlanta-based company has 366 mall restaurants in 31 states and annual sales of $181 million. Instead of discouraging fast food companies, developers now design shopping.Now my thoughts.But after all this my Mom (not the oldest child) told me about the chicken sandwiches made by my Grandmother for my mom and her 12 siblings in the 30’s. My mom was 16, maybe 17 and the youngest would have been 2 or 3. They lived on a 70+ acre farm In Hokendauqua PA that supported the entire family besides suppling food to the Whitehall High School (a mere block away) for the lunch program. Anyway, we had roast Chicken sandwiches with iceberg lettuce and mayonnaise on toast, chicken salad sandwiches and chicken club sandwiches in the 50’s. My brothe told me he rembered eating chicken salad sandwiches in ’46 as a first grade student at St. Elizabeth’s Cahloic School in Fullerton PA. Our family loves food. We were luckily brought up in a food rich enviorment. This just came up while reminising about our youth and the food we were exposed too early on..I am positive the chicken sandwich was eaten shortly after the Earl of Sandwich ate beef between two slices and created the first “sandwich”. It’s just a logial assumption