The iconic sandwich-franchise firm Subway IP LLC (Subway), founded as a partnership in Bridgeport, Connecticut in 1965, had grown rapidly, and by 2024, it was the second-largest restaurant chain in the world, with approximately 37,000 restaurants. While the company had experienced some difficult years beginning in 2014, it began to rebound in 2022 with the introduction of the Subway Series menu and the Grab & Go smart fridge, an automated vending machine that catered to consumers in non-traditional locations such as casinos, airports, and hospitals. Others in the food-service and supermarket industries had equipped similar devices with facial recognition software, sometimes without the awareness of consumers, and this had raised a number of ethical issues. In 2024, Subway’s chief executive officer was facing an important decision with regard to the fridges: should Subway follow the trend and equip its Grab & Go fridges with facial recognition software?
In December 2023, McDonald’s Corporation (McDonald’s) announced an ambitious growth plan that involved reaching 50,000 restaurants by 2027. In order to reach this unit count goal, McDonald’s planned to open approximately 7,000 new restaurants in China. The Chinese fast-food market was one of the world’s largest and was expected to grow in 2024 and beyond. Yet, it was littered with strong competition from both large US chains and local competitors. To further complicate matters, there were rising geopolitical tensions between China and Taiwan. Should McDonald’s chief executive officer Chris Kempczinski have expanded the company’s operations in China? If so, where should McDonald’s have opened its new restaurants?
The iconic American fast-food chain Checkers Drive-In Restaurants Inc. (Checkers & Rally’s), headquartered in Tampa, Florida, found early success through its streamlined layout and operations. Nevertheless, it had financially struggled prior to the COVID-19 pandemic, impelling it to reflect on its existing strengths and to take strategic steps amid the pandemic to make an impressive recovery. In 2023, armed with newfound confidence from its previous successes, the company confronted the challenge of understaffing in the nation’s fast-food industry. How could Checkers & Rally’s CEO address the labour shortage? Could robotics and automation give the company an edge?
In February 2024, Wendy’s CEO Kirk Tanner announced that the company planned to test dynamic pricing at select US locations sometime in 2025. However, the company’s announcement generated a significant negative public reaction, to such an extent that Wendy’s felt compelled to offer US$1 burgers as part of a special “March Madness” promotion. As the company looked toward 2025, how should Wendy’s CEO Kirk Tanner plan to implement dynamic pricing in its stores?
In late 2022, McDonald’s, one of America’s oldest and most iconic fast food companies, introduced a mostly automated store in Fort Worth, Texas. The only human employees at this store were in the kitchen and did not interact with consumers during the ordering or pick up of food. While some consumers liked this concept, it also received very negative reviews on social media, with some responses addressing the ethics of replacing human labour with robotics. The chief executive officer of McDonald’s had a choice to make: Should he listen to consumer complaints and make changes to the mostly automated store, or should he continue to move the company fully automated stores?
Runza National, Inc. (Runza), an iconic Nebraskan quick-service restaurant chain had saturated its home Nebraskan market, with eighty-two stores across the state. A proud, family-run business, the Nebraskan chain was named after a mouth-watering regional specialty: the Runza sandwich. Also known as a bierock, this savoury bread pocket of Russian and German origins was adapted from a family recipe into the flagship offering. To foster further growth, the Runza team sought to expand the chain across the Midwest and beyond, through options such as company-owned stores, franchising, and ghost kitchens. Equally crucial were the areas in which to expand, with possible markets in nearby Wyoming, Montana, Colorado, North and South Dakota, Minnesota, Kansas, Iowa, and Missouri. Canadian communities also presented opportunities for international expansion. In determining the optimal markets and modes of entry, the company had to consider the effect of local factors on the company’s appeal. Its Nebraskan roots had made it a local icon with a devoted customer base, but the next steps beyond its home state would shape its future. Which states of the United States should they expand into, and was Canadian expansion viable? What market types—larger cities or smaller towns—were the most desirable, and which mode of entry was most feasible?
The COVID-19 pandemic changed many aspects of consumers’ lives and transformed the industries serving them. This note examines the impact of the pandemic on the fast-food industry and details four main ways in which the sector was affected. First, the pandemic led to an increased reliance on technology. Second, it pushed forward new restaurant designs. Third, it accelerated the rise of “ghost kitchens,” which prepared food for consumption off the premises. Finally, the pandemic contributed to the emergence of loyalty programs. All four trends were expected to continue to evolve after the pandemic.
Steak ’n Shake, one of America’s oldest and most iconic fast-food chains, was founded in Normal, Illinois, in 1934. When Biglari Holdings assumed control of Steak ’n Shake in August 2008, the company was struggling and incurring losses of approximately US$100,000 per day. To turn the company around, the new owner implemented an aggressive pricing-discount strategy marketed as “4 under $4” that offered any of four different meals for under $4. The strategy worked. Steak ’n Shake went on to post seven consecutive years of same-store sales increases. However, in 2016, sales began to drop, and the company posted five consecutive years of declining store sales. The price-discounting strategy may have been critical in reversing the company’s fortunes, but had it also led to Steak ’n Shake’s current issues? Should Biglari Holdings consider raising prices of menu items? Would customers accept paying higher prices after being accustomed to Steak ’n Shake’s traditionally low pricing strategy?
In late 2020, Wendy’s was an iconic North American fast-food chain with a history of innovation. The corporation’s inventive approach to its promotions was particularly apparent in its use of social media, even more so in its unique management of the company’s Twitter account. In addition to using Twitter to provide customer support and advertise its products in an online setting – two traditional activities conducted by many a business on Twitter – Wendy’s had used the platform to regularly make fun of users and competitors, as well as respond to teasing and other playful challenges issued by Twitter users. Evaluating the company’s Twitter strategy proved difficult, however. How could Wendy’s chief executive officer determine whether the company’s approach on Twitter positively affected sales? How could he improve the company’s future social media strategy?
Shake Shack was a fast, casual restaurant chain with a strong focus and great efforts on sustainability and corporate responsibility. Despite its stated environmental commitments, however, its core product offering—the hamburger—was extremely taxing on the environment. Between 2009 and 2021, various new alternative protein sources had emerged that were much more sustainable and environmentally friendly. Shake Shack’s chief executive officer had to make some decisions. Should the company’s products shift away from beef toward alternative protein sources? If so, which of these new products should Shake Shack consider and over what timeline?
In March 2017, the American fast food giant McDonald’s Corporation (McDonald's) launched an ambitious strategic plan, named the Velocity Growth Plan, with the intention of maintaining its dominance over competitors. As part of this strategy, McDonald’s wanted to retain its current customers, regain lost customers, and convert casual customers into more committed customers. To help accomplish these objectives, McDonald’s introduced delivery and mobile ordering services. The company also announced that it would remodel its stores, as part the Velocity Growth Plan. Two years later, in March 2019, McDonald’s acquired Dynamic Yield, a digital personalization platform that could be integrated into McDonald’s drive-through service, in-store kiosks, and mobile application. By early 2019, McDonald’s was the largest fast food company in the world, with approximately 37,855 restaurants across 120 countries, largely seen as the premiere fast food company in the industry. However, Dynamic Yield’s software provided McDonald’s with the ability to offer customers immediate recommendations, one-to-one messaging, and customer data management. How could McDonald’s best use Dynamic Yield to meet its ambitious growth objectives?
In-N-Out was an iconic burger chain that had changed little since it was founded in 1948. The company remained family-owned and had continually resisted going public. The company was only located in seven US states and grew slowly and deliberately in order to ensure that it could continue to offer a high quality product and experience to its customers at low prices. Current CEO Lynsi Snyder was interested in continued growth for In-N-Out, but not at the cost of sacrificing the quality of its products or the unique way in which the company operated. How could she grow the company without altering its identity?
Subway had been a dominant player in the submarine sandwich category since its inception in 1965. By 2011, the company had surpassed McDonald’s as the world’s largest restaurant chain. However, the emergence of strong competition and a number of issues—mostly related to its products, place, and price—had caused the company to struggle since 2014. The company’s franchise system was poorly designed and operated, product quality had slipped, the company had not kept up with industry and dietary trends, and the arrest of the company’s key spokesperson had a negative effect on the company’s profits. Revenues declined from 2014 to 2019, and 2,376 stores were closed between 2016 and 2018. Subway needed to turn itself around. How could Subway’s chief executive officer resolve the company’s product-, place-, and price-related issues to help reverse its fortunes?
In April 2019, Carl’s Jr. Restaurants LLC (Carl’s Jr.), an American fast-food restaurant chain, faced an important decision. The company was up against strong competition from both traditional players in the fast-food market and newer competitors in the fast-casual dining market. In 2017, Carl’s Jr. had stopped using the provocative ads it had become known for, and in 2018, the company ended a long co-branding relationship with Hardee’s Restaurants LLC. Due in part to these changes, the company was struggling to form its own identity. Carl’s Jr.’s chief executive officer needed to develop a sustainable competitive advantage in order to make the company relevant again in the minds of consumers.
In November 2018, Five Guys, a fast-casual restaurant chain based in the United States, faced an important decision related to its future promotion strategy. Five Guys had started in 1986 as a small company with limited resources. The company had always avoided traditional advertising media, such as television, radio, print, and billboard advertisements. As a result of the company's success over the years, the founder and chief executive officer had a significantly larger promotional budget than ever before; he needed to develop a promotional strategy for the future. In particular, he needed to determine how to allocate the company's promotional budget. In which promotional media should he invest the company's promotional funds?
In the summer of 2018 in the United States, Wendy’s faced an important decision related to its international markets. The company had a small international presence; of its 6,537 restaurants worldwide, only 637 restaurants were located in international markets. The company was faced with a saturated and stagnating U.S. market and fierce competition from a number of fast food rivals, including McDonald’s Corporation, Burger King Corporation, and Carl’s Jr. Restaurants LLC, and the surest path to growth seemed to be an expansion into foreign markets, where fast food was still growing. Wendy’s chief executive officer needed to determine which international market(s) to target and how many restaurants to open in each international market.
In 2015, Burger King, one of America's oldest fast-food chains, continues to face fierce competition from McDonald's, Wendy's and the emerging fast-casual restaurant chains. As a result, Burger King needs to develop a marketing mix that will distance it from its competitors and narrow the gap with McDonald's, the industry leader. The marketing mix will also influence Burger King’s allocation of resources between domestic and international markets.
Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future hold for the computer giant in a rapidly changing world? How should the company allocate resources between its more traditional offerings (computers) and its newer products (iPods, iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should Apple's unique retail strategy be used to support the company's product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage.