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Food and Beverage Management: McDonalds and Burger King - Assignment Example

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The report “Food and Beverage Management: McDonald’s and Burger King” focuses on the fast food industry, which has undergone a series of changes in response to the changing environment. The changing customer preferences have forced existing fast food companies to cater more appropriate food offerings…
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Food and Beverage Management: McDonalds and Burger King
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Download file to see previous pages The authors describe the fast food industry as being valued at $110 billion and an accepted part of western cultures. The nature of competition in the fast food industry has been changing.
The fast-food industry is typified by speedy delivery and consistent output at reasonable prices. The industry works on market segmentation and product differentiation strategies. For instance, McDonald’s originally targeted lunch and late-snack customers and changed to breakfast offerings in some outlets to target a wider market segment. Pizza Hut offers the Vegetarian Pizza in an attempt to cater to a specific market segment and also differentiate the product from other fast food offerings (Michman & Mazze, 1998, p. 48). Grant (2002, p. 263) points out the fact that franchising and standardized operations, pioneered by McDonald’s, have resulted in the sector becoming dominated by a few major corporations.
In the 70’s, General Foods and Levers owned restaurant chains and Burger King was part of the Pillsbury empire. The suppliers of fast food industry raw material were also competing for the industry. The industry saw a move for smaller players to become part of larger conglomerates to gain competitive advantage and internationalization to counter the limited growth of the local markets. Mergers and acquisitions changed the geographic scope of the industry. Pepsico took over Pizza Hut, Kentucky Fried Chicken, and Taco Bell to become the world’s largest conglomerate. This has given a boost to the multinational presence of previously local names and changed the type of products on offer. The move to become international brands was followed by an attempt to cater to local tastes with products that are ‘hybrid forms that are neither completely local, national or global’ (Wilk, 2006, p. 20). Gordon-Davis (2004, p. 217) points out the changing taste preferences of the fast-food customer.  ...Download file to see next pagesRead More
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