Unformatted text preview: but real estate prices are still low. Fast food restaurants often
serve as the shock troops of sprawl, landing early and pointing the way. Some chains prefer to play follow the leader: when a new
McDonald’s opens, other fast food restaurants soon open nearby on the assumption that it must be a good location.
Regardless of the billions spent on marketing and promotion, all the ads on radio and TV, all the efforts to create brand loyalty, the major
chains must live with the unsettling fact that more than 70 percent of fast food visits are “impulsive.” The decision to stop for fast food is
made on the spur of the moment, without much thought. The vast majority of customers do not set out to eat at a Burger King, a Wendy’s, or
a McDonald’s. Often, they’re not even planning to stop for food – until they see a sign, a familiar building, a set of golden arches. Fast food,
like the tabloids at a supermarket checkout, is an impulse buy. In order to succeed, fast food restaurants must be seen.
The McDonald’s Corporation has perfected the art of restaurant site selection. In the early days Ray Kroc flew...
View Full Document
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