This preview shows page 1. Sign up to view the full content.
Unformatted text preview: arians can enjoy at McDonald’s — garden salads, french fries and hash browns (cooked in 100
percent vegetable oil)…” decline and fall
THE YEAR 2000 may some day be regarded as a milestone for the fast food industry. It may be remembered as the year that the leading chains began to unravel. According to NPD Foodworld, a market research firm, during 2000 the fast food industry did not gain any new customers
in the United States. The stagnant sales preceded the headlines about mad cow disease and extended throughout most of the industry. Fewer
people visited not only hamburger chains, but also pizza and Mexican food chains. Business did not improve in the first half of 2001.
McDonald’s profits fell in Europe, Asia, Latin America, and the United States. Customer traffic fell at Burger King restaurants worldwide.
Burger King’s new french fries proved a marketing disaster and were scrapped, at a cost of more than $70 million. And its parent company,
Diageo PLC, had to spend millions to keep some large Burger King franchisees afloat, while searching for ways to unload the chain.
Taco Bell — a brand that in many ways perfected the art of selling inexpensive, mass-produced, highly industria...
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