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Unformatted text preview: first time. Carl’s Jr. has come to Colorado
Springs, opening stand-alone restaurants and “co-branded” outlets inside Texaco gas stations. When a fast food restaurant goes out of business,
a new one often opens at the same location, like an army that’s seized the outpost of a conquered foe. Instead of a new flag being raised, a
big new plastic sign goes up.
Local fast food franchisees have little ability to reduce their fixed costs: their lease payments, franchise fees, and purchases from companyapproved suppliers. Franchisees do, however, have some control over wage rates and try to keep them as low as possible. The labor structure
of the fast food industry demands a steady supply of young and unskilled workers. But the immediate needs of the chains and the long-term
needs of teenagers are fundamentally at odds.
At Cheyenne Mountain High School, set in the foothills, with a grand view of the city, few of the students work at fast food restaurants.
Most of them are white and upper-middle class. During the summers, the boys...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08