MODULE: Quick Food Service Operations

Chapter 1: History of the Quick Service Restaurants

Learning Objective:

 Discuss the history of the Quick Service Restaurant

 Identify the service in quick restaurant
 Assess the students at the end of the lesson.
A Brief History of The Quick Service Restaurants

Most historians agree that the American company White Castle was the
first fast-food outlet starting in Wichita, Kansas in 1916 with food stands and
founding in 1921, selling hamburgers for five cents apiece from its inception and
spawning numerous competitors and emulators. What is certain, however, is that
White Castle made the first significant effort to standardize the food production
in, look of, and operation of fast-food hamburger restaurants. William Ingram’s
and Walter Anderson’s White Castle System created the first fast food supply
chain to provide meat, buns, paper goods, and other supplies to their
restaurants, pioneered the concept of the multi-state hamburger restaurant chain,
standardized the look and construction of the restaurants themselves, and even
developed a construction division that manufactured and built the chain’s
prefabricated restaurant buildings. The McDonald’s Speedee Service System
and, much later, Ray Kroc’s McDonald’s outlets and Hamburger University all
built on principles, systems, and practices that White Castle had already
established between 1923 and 1932.

However, the modern history of fast food in the United States dates back
to July, 7th 1912, with the opening of a fast food restaurant called the Automat in
New York. The Automat was a cafeteria with its prepared foods behind small
glass windows and coin-operated slots. Joseph Horn and Frank Hardart had
already opened the first Horn & Hardart Automat in Philadelphia in 1902, but their
“Automat” at Broadway and 13th Street, in New York City, created a sensation.
Numerous Automat restaurants were built around the country to deal with the
demand. Automats remained extremely popular throughout the 1920s and
1930s. The company also popularized the notion of “take-out” food, with its
slogan “Less work for Mother.”

By 1954, The McDonald brothers’ stand was restaurant equipment

manufacturer Prince Castle’s biggest purchaser of milkshake blending machines.
Prince Castle salesman Ray Kroc traveled to California to discover why the
company had purchased almost a dozen of the units as opposed to the normal
one or two found in most restaurants of the time. Enticed by the success of the
McDonald’s concept, Kroc signed a franchise agreement with the brothers and
began opening McDonald’s restaurants in Illinois.[7] By 1961, Kroc had bought
out the brothers and created what is now the modern McDonald’s Corporation.
One of the major parts of his business plan was to promote cleanliness of his

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MODULE: Quick Food Service Operations
restaurants to growing groups of Americans that had become aware of food
safety issues. As part of his commitment to cleanliness, Kroc often took part in
cleaning his own Des Plaines, Illinois outlet by hosing down the garbage cans
and scraping gum off the cement. Another concept Kroc added was great swaths
of glass which enabled the customer to view the food preparation, a practice still
found in chains such as Krispy Kreme. A clean atmosphere was only part of
Kroc’s grander plan which separated McDonald’s from the rest of the competition
and attributes to their great success. Kroc envisioned making his restaurants
appeal to suburban families.

While fast food restaurants usually have a seating area in which

customers can eat the food on the premises, orders are designed to be taken
away, and traditional table service is rare. Orders are generally taken and paid
for at a wide counter, with the customer waiting by the counter for a tray or
container for their food. A “drive-through” service can allow customers to order
and pick up food from their cars.

Nearly from its inception, fast food has been designed to be eaten “on the
go” and often does not require traditional cutlery and is eaten as finger food.
Common menu items at fast food outlets include fish and chips, sandwiches,
pitas, hamburgers, fried chicken, french fries, chicken nuggets, tacos, pizza, and
ice cream, although many fast food restaurants offer “slower” foods like chili,
mashed potatoes, and salads.
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History of Fast Food Restaurants

Fast food restaurant is a restaurant that serves fast food cuisine and has minimal
to no service. Food served there is cooked in bulk in advance and kept hot, sold
and can be eaten there or taken away. Although there were some types of fast
food before that, fast food restaurants are the phenomenon of the 20th century.

The first successful fast food restaurant in United States was opened on July 7,
1912 and was of Automat type - a restaurant served by vending machines
operated with coins. It created a sensation and sparked building of other
Automats around the country.

A&W, founded by Roy W. Allen and Frank Wright, opened in 1919 and started
selling root beer. They opened their first drive-in restaurant in Sacramento,
California in 1923 and started selling their franchise. They sold hamburgers,
french fries, and hot dogs and had 2,000 places by 1960. Today they have more
than 1,200 restaurants.

White Castle opened the second fast-food outlet in Wichita, Kansas in 1921.
They sold hamburgers and were the first to standardize production of food. They
created the first fast food supply chain that supplied ingredients to all outlets. Its
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founder, cook Walt A. Anderson, is credited with invention of the hamburger bun
as we know it today. His partner was Edgar Waldo "Billy" A. Ingram who in time
bought out Anderson. White Castle changed the public's perception towards the
ground beef and made hamburgers popular. Today they have more than 420
outlets.

Brothers Richard and Maurice McDonald opened a barbecue drive-in in 1940,

called McDonald’s, in the city of San Bernardino, California. In time they found
out that the most of their profits came from hamburgers so they streamlined their
production (called it "Speedee Service System") and started selling hamburgers,
french fries, shakes, coffee, and Coca-Cola in paper containers. This allowed
them to make hamburgers and fries without pause and waiting for orders from
customers. Ray Kroc, salesman of the firm which sold equipment to McDonald’s,
signed a franchise agreement with the brothers in 1954 and started the
expansion of McDonald’s. Today, McDonald’s has more than 35,000 outlets in
119 countries and serves more than 68 million customers every day.

In 1953, two Miami, Florida businessmen, Keith J. Kramer and his wife's uncle
Matthew Burns, opened an Insta-Burger King - a fast food restaurant that used
cooking devices called Insta-Broilers. They made hamburgers and were so
successful that they started franchising. They faltered in 1959 and were bought
by their Miami, Florida franchisees, James McLamore and David R. Edgerton
and renamed Burger King. In 1967, when they had over 250 outlets in United
States, they were sold to the Pillsbury Company. It is today the second largest
chain of hamburger fast food restaurants.

Frederick "Fred" DeLuca, opened "Pete's Super Submarines", a sandwich shop,

in Bridgeport, Connecticut and started franchising the next year. They changed
the name of the sandwich shop to “Subway” in 1968. Today they have more than
34,000 outlets all over the world.
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The History of Fast Food

Image courtesy Ruud

Leeuw Taverns like the
Middleton Historic
Tavern traditionally
catered to travelers.

Restaurants have been

around in some form for
most of human civilization.
But they usually catered to

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MODULE: Quick Food Service Operations
travelers. As far back as ancient Greece and Rome, inns and taverns generally
served food to people who had a reason to be away from home. This trend
continued until relatively recently. Although taverns and coffee houses were
popular places to gather and share beverages in the 17th century, the idea of
eating out for fun didn't take off in Western society until the late 18th century.

Although McDonald's was the first restaurant to use the assembly-line system,
some people think of White Castle as the first fast-food chain. White Castle was
founded in 1921 in Wichita, Kansas. At the time, most people considered the
burgers sold at fairs, circuses, lunch counters and carts to be low-quality. Many
people thought hamburger came from slaughterhouse scraps and spoiled meat.

White Castle's founders decided to change the public's perception of

hamburgers. They built their restaurants so that customers could see the food
being prepared. They painted the buildings white and even chose a name that
suggested cleanliness. White Castle was most popular in the American East and
Midwest, but its success helped give hamburger meat a better reputation
nationwide. So, like cars, White Castle played an important part in the
development of fast food.

Image courtesy Brands of the

World
The McDonald brothers opened
their redesigned restaurant in
1948, and several fast-food chains
that exist today opened soon after.
Burger King and Taco Bell got their
start in the 1950s, and Wendy's
opened in 1969. Some chains, like Carl's Jr., KFC and Jack in the Box, existed
before the Speedee Service System, but modified their cooking techniques after
its debut. McDonald's, which started it all, is now the world's largest fast-food
chain.

According to the National Restaurant Association, American sales of fast food

totaled $163.5 billion in 2005. The industry is growing globally as well. Total sales
for McDonald's grew 5.6 percent in 2005, and the company now has 30,000
franchised stores in more than 120 countries.

However, McDonald's - and fast food in general - does not always get a
welcoming reception around the world. McDonald's restaurants have been
attacked in several countries, including the United States, China, Belgium,
Holland, India, Russia, Sweden and the U.K. Protestors have accused
McDonald's and other chains of selling unhealthy food, marketing aggressively to
children and undermining local values and culture.

See the links below for more on nutrition, fast food and related topics.

THE HISTORY OF THE DRIVE-THROUGH

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It's hard to imagine fast food without drive-through windows. Drive-through
existed in the 1930s, and many drive-in restaurants had some form of drive-up
window. However, the speaker systems commonly used to place drive-through
orders didn't hit the scene until the 1950s. The double drive-through, used by
many busy fast-food restaurants, debuted in the 1980s.
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America’s eating habits got a new look in 1948, thanks to a 100-square

foot burger shack perched next to a circular Baldwin Park, California,
driveway. There, five cooks worked behind glass walls assembling take -
out meals for motorists, lured by the a sign assuring “NO DELAY” and a
restaurant name that promised exactly what it delivered: In-N-Out.

There are a few claimants for the first fast food eatery to feature a true
drive-thru, but In-N-Out Burger’s first restaurant, with its intercom
ordering system and its lack of both inside seating and outs ide parking
was likely the first to offer the complete drive -thru package.

Before the drive-thru, though, came the drive-in, a type of restaurant

where customers ate their meals on the premises without leaving their
cars. The drive-in concept was first popularized by a Texas chain of
eateries called the Pig Stand, whose first drive -in opened on a highway
connecting Dallas and Fort Worth in 1921. Customers would pull in to the
parking lot and be immediately greeted by carhops, combination waiter -
busboys who served burgers and fries on trays that clipped on to the
car’s window. In 1931 a Los Angeles franchisee of the chain, Pig Stand
Number 21, began to allow car owners to order and receive bagged
meals from a single window (it’s not clear whether they had to get out of
their cars).

The drive-in was less a pure novelty than an expression of great

American passions that go hand in hand: speed, efficiency and,
sometimes, laziness. By indulging their patrons’ desire not to leave their
cars, restaurateurs could operate with fewer employees, letting prices
fall while profits rose. But the car-bound diners wanted quick service,
prompting an arms race among the carhops to take orders and shuttle
food as quickly as possible (hence the roller -skating carhops featured at
many drive-ins). By mid-century drive-in owners were experimenting with
systems like Aut-O-Hop, Dine-a-Mike, Electro-Hop, Fon-A-Chef and
Ordaphone, all allowing parked customers to call in their orders.

Despite In-N-Out’s success with a drive-thru-centric business plan, the largest

national chains were slow to adopt the model. The first McDonald’s burger
stands opened in 1948, serving 10-cent burgers from walk-up windows (the
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pedestrian equivalent of the drive-thru) but it wasn’t until the mid-1970s that the
first McDonald’s drive-thru opened up. However, smaller chains, like Jack-in-the-
Box (founded in 1950) and Wendy’s (1969), adopted the drive-thru early on and
by the mid-1960s the Wienerschnitzel chain was opening A-frame restaurants
with a car-sized hole that ran straight through the building.

Drive-thrus changed the types of food that quick-service restaurants offered,

ensuring the supremacy of the hamburger while spurring the invention of drip-
free tacos and boneless morsels of fried chicken. The drive-through thru changed
cars as well. Cup holders were once a rarity in auto interior design, but by the
late 1980s it was common for cars to feature more cup holders than passengers.

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10 Things You Didn't Know About the Fast Food Drive-Thru

Here are some fascinating factoids that’ll make for great conversation the
next time you’re waiting on line at the drive-thru—and that perhaps will
even influence what you order.

The drive-thru is getting slower. OK, so maybe this is one part of the
drive-thru experience that doesn’t come as a total surprise. But the latest
version of an annual study from QSR Magazine (QSR = quick serve
restaurant) confirms that wait times at the drive-thru are on the rise. Last
year’s study indicated that the average drive-thru wait time hit 181 seconds,
up from 173 seconds the year before. According to the new study—an
expanded version that incorporated 23 quick -serve restaurant brands, up
from just seven in 2013—the average wait time reached a record high of
203 seconds. (Perhaps that’s why people were so excited about
McDonald’s one-minute drive-thru guarantee.)

Midafternoon is when drive-thrus are fastest and friendliest. The wait

at the drive-thru for breakfast tends to be mercifully brief, with the average
clocking in at 175 seconds. This is understandable considering that
breakfast orders tend to be small and simple, typically one person ordering
coffee and a breakfast sandwich on the way to work. Not only do menus
expand during lunch and dinner hours, but orders are more likely being
placed for two or more people, and the customizable options multiply (for
instance, the choice of sauce with a customer’s nuggets or dressing with a
salad). As a result, orders are more complicated and time-consuming to get
ready, explaining why drive-thru lunch orders average 214 seconds, while
dinner takes up the most time of all, 226 seconds. Overall, the optimal time
of day to hit the drive-thru is the mid-afternoon “snack” period, when wait
times average 173 seconds—and when, per the QSR survey, 33% of
customers rate the service as “very friendly,” the highest percentage of any
order time.

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The first drive-thru opened in 1947 (and it wasn’t a McDonald’s). By the
World War II era, carhop service for drive-up restaurants serving burgers
and other fast-ish food was common. But it wasn’t until 1947 that the first
drive-thru opened, reportedly at Red’s Giant Hamburg on Route 66 in
Springfield, Missouri. Red’s closed in 1984, so the award for the longest -
running burger drive-thru goes to the original In-N Out Burger. It opened in
1948 in the Los Angeles area, and yes, it was based on the unique concept
of a drive-thru hamburger stand using a (then) state-of-the-art two-way
speaker box.

The first drive-thru-focused chain opened in 1951 (and it wasn’t

McDonald’s). It was Jack in the Box, another California-born concept
created to take advantage of the burgeoning car culture. The original Jack
in the Box was in San Diego and was drive-thru-only, offering motorists
hamburgers to go for 18¢ apiece. While most Jack in the Boxes now als o
have indoor dining areas, roughly 85% of the orders at its 2,250 locations
are either drive-thru or to-go. Jack in the Box is also credited with creating
a rather self-serving fake marketing holiday, National Drive-Thru Day,
which is celebrated every July 24.

McDonald’s didn’t have a drive-thru until 1975. The fast food brand most
closely associated with the drive-thru—and fast food in general, for that
matter—had no drive-thru until 1975, when the company’s first was
launched in Sierra Vista, Ariz. By that time, McDonald’s already had 3,000
restaurants worldwide and was opening locations in Nicaragua, the
Bahamas, and Hong Kong.

Drive-thru design heavily influences what we order. Those appetizing

photos of combo meals are prominently featured on drive-thru menu boards
for a reason: They are there to upsell customers and make the ordering
process simpler—and quicker—according to restaurant experts. Photos
distill the components of an order faster than even the briefest of
descriptions, and pictures of combo orders are generally placed dead
center on well-lit drive-thru menus because that’s usually where the
customer’s eye goes first. Restaurants even find some benefit in making
drive-thru customers wait a bit in line, with the so-called “car stack” of three
or four vehicles allowing each party ample time to take in what’s on the
menu and be better prepared for placing orders quickly. The next drive -thru
innovation could very well be touchscreen ordering, which allows customers
to personalize orders without occupying the time of a restaurant employee;
as a bonus to eateries, consumers tend to place higher-priced orders when
using touchscreens.

Wendy’s has quickest service, Chick-fil-A is most accurate. While the

data changes a bit from year to year, the 2012 drive-thru study indicated
that the average wait time for a Wendy’s order was just 130 seconds, the
quickest in the field and more than one minute faster than Burger King.
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Meanwhile, Chick-fil-A was tops in terms of accuracy, getting 92% of orders
correct. Overall order accuracy among all drive-thrus in the 2014 study was
measured at 87%; Burger King accuracy was only 82%.

Drive-thrus are increasingly important to Starbucks. Starbucks is known

mostly as a spot for enjoying the unrushed (read: slow) café experience,
but nowadays 40% of Starbucks locations have drive-thrus for speedy on-
the-go “refueling” transactions. What’s more, Starbucks CFO Troy
Alstead has said that going forward, 60% of new Starbucks opened will
have drive-thrus. Having largely exhausted the potential to expand further
into downtown locations where drive-thrus would be problematic or
impossible, Starbucks is placing an emphasis on “off -highway kinds of
locations” and “some of the remote areas around the country,” Alstead said,
to reach out to new customers. It certainly doesn’t hurt that drive -thrus
allow Starbucks coffee shops to speed up service, thereby serving more
people and hiking per-store profits. “We have fantastic economics through
our drive-thrus,” said Alstead. “We’re providing a great experience to our
customers who are on the go, they’re moving fast, they want that ability to
stay in their car and experience Starbucks at the same time.”

Panera studied drive-thrus for 10 years before opening one. The fast-
casual restaurant category, which has become a phenomenal success due
to its mix of speedy service, customizable orders, and fresher and higher -
quality fare, has been fairly reluctant to pull up to the drive-thru, so to
speak. Why? One reason is the fear that the drive-thru cheapens the
experience figuratively and literally, the latter because orders taken away in
the car are prone to getting soggy or are otherwise less appealing than
food fresh eaten on the spot. Panera Bread, one of the earliest players in
the fast-casual space, reportedly studied drive-thru options for a decade
before finally introducing one in 2005. That was only after the company
settled on a design that would hide drive-thru operations from the regular
counter-serve customers (they didn’t want to disturb or distract anyone),
and after developing special packaging that ensure “food integrity” in drive -
thru orders.

Chipotle is a drive-thru holdout, and may never give in. Experts in the
field have said that a drive-thru would destroy the Chipotle experience, in
which customers look at employees face-to-face, eyeball all the ingredients
in front of them, and customize exactly what they want in their burrito or
bowl. The question of if or when it will add a drive-thru comes up again and
again, but thus far Chipotle hasn’t gone there. And based on how
successful Chipotle has been without offering drive-thru service, it hardly
seems to need it.
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The World's Largest Fast Food Restaurant Chains

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A fast-food restaurant is a specific type of restaurant that is defined by minimal
table service and cuisine that is quickly prepared. Fast food restaurants are also
known as quick-service restaurants. A restaurant chain is a group of related
restaurants based in different locations that are operated either by franchise
agreements or under shared corporate ownership such as McDonald's in
the United States. Normally, restaurants within a chain are not only built to an
architectural prototype of the required format but also offer customary services
and menu. Fast food restaurants chains are popular and mostly found close to
shopping malls, tourist areas, and highways.

Subway - 42,998 Locations

Subway is an American chain of fast-food restaurant franchise that

predominantly sells submarine sandwiches commonly known as subs and
salads. Subway is privately held, owned, and operated by Doctors Associates
Inc. Subway is the largest and the fastest-growing restaurant chains in the world
with 42,998 restaurants in 112 countries and territories. Subway fast-food
restaurant in the US alone has about 25,549 outlets. Subway is also the largest
operator in the world whose international headquarters are located in
Milford, Connecticut.

McDonald's - 37,200 Locations

McDonald's is an American hamburger and fast food restaurant chain that was
founded in 1940 by Richard and Maurice McDonald as a barbecue restaurant. In
1948, McDonald's reorganized their business as a hamburger stand and later in
1953, the first McDonald's franchise opened in Phoenix, Arizona. At present
McDonald's is the second-largest restaurant chain in the world, available in 119
countries with approximately 36,900 outlets. McDonald's predominantly sells
chicken products, milkshakes, hamburgers, breakfast items, desserts, and soft
drinks. However, the company has recently expanded its menu to include fruits,
fish, smoothies, salads, and wraps. McDonald's is one of the largest
employers in the United States.

Starbucks - 30,000 Locations

Starbucks is an American coffee house chain, which was founded in 1971 in

Seattle, Washington. Starbucks primarily serves espresso, whole-bean coffee,
fresh juices, cafe latte, Frappuccinos, La Boulange pastries, and full-loose-leaf
teas. Starbucks first become profitable in the early 1980s.

KFC - 20,404 Locations

Kentucky Fried Chicken, popularly known as KFC, is an American fast-food

restaurant chain that mainly concentrates on fried chicken. KFC's headquarters
are located in Louisville, Kentucky. As of December 2015, KFC was operational
in 123 countries and territories with 20,404 outlets. KFC is a branch of Yum!
Brands, which is a restaurant company that owns other restaurant chains such
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as Taco Bell and Pizza Hut. KFC was founded by Colonel Harland Sanders, an
entrepreneur who started selling fried chicken from his roadside restaurant in
Corbin, Kentucky. KFC initially only served chicken before extending their menu
in the 1990s to offer other products such as salads, French fries, soft drinks,
chicken burgers, coleslaw, wraps, and desserts.

Burger King - 16,859 Locations

Burger King is an American hamburger fast food restaurant chain whose main
headquarters are in Miami-Dade County, Florida. Burger King was founded in
1953 as Insta-Burger King in Jacksonville, Florida. The Burger King menu has
expanded from predominantly offering burgers, milkshakes, sodas, and French
fries to a wide array of products. Burger King is estimated to have 16,859 outlets
in 100 countries as of September 30th, 2016. Almost half of the outlets are found
in the United States, and 99.5% are not only privately operated but also privately
owned.

The World's Largest Fast Food Restaurant Chains

Rank Name Number of Locations

1 Subway 42,998

2 McDonald's 37,200

3 Starbucks 30,000

4 KFC 20,404

5 Burger King 16,859

6 Pizza Hut 16,796

7 Domino’s 15,000

8 Dunkin' 11,300

9 Baskin-Robbins 7,500

10 Hunt Brothers Pizza 7,300

11 Taco Bell 7,000

12 Wendy's 6,490

13 Hardee's 5,812

14 Orange Julius 5,700

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Rank Name Number of Locations

15 Papa John's Pizza 5,318

16 Dairy Queen 4,800

17 Little Caesars 4,800

18 Tim Hortons 4,774

19 CNHLS 4,000

20 Sonic Drive-In 3,526

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Ranking the Top 50 Fast-Food Chains in America

2018 TOTAL
AVERAGE 2018 CHANG
2018 US SALES TOTA E IN
SYSTEMWI PER UNIT 2018 2018 L UNITS
CATEGO DE SALES THOUSAN FRANCHISELICEN COMPAN UNIT FROM
RANK COMPANY RY MILLIONS DS SE UNITS Y UNITS S 2017

1 MCDONALD'S BURGER 38,524.05 2,768.73 13,229 685 13,91 -122

4

2 STARBUCKS* SNACK 19,700.00 1,349.32 6,332 8,493 14,82 895

5

3 SUBWAY* SANDWIC 10,410.34 420.00 24,798 0 24,79 -1,110

H 8

4 TACO BELL GLOBAL 10,300.00 1,600.00 6,126 462 6,588 142

5 CHICK-FIL-A* CHICKEN 10,000.00 4,166.67 2,400 0 2,400 175

6 WENDY'S BURGER 9,993.70 1,636.40 5,825 353 6,711 77

7 BURGER BURGER 9,950.00 1,357.00 7,278 49 7,327 101

KING*

8 DUNKIN' SNACK 8,787.00 933.00 9,419 0 9,419 278

9 DOMINO'S* PIZZA 6,600.00 1,123.00 5,486 390 5,876 258

10 PANERA SANDWIC 5,734.63 2,739.91 1,131 963 2,093 50

BREAD* H

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2018 TOTAL
AVERAGE 2018 CHANG
2018 US SALES TOTA E IN
SYSTEMWI PER UNIT 2018 2018 L UNITS
CATEGO DE SALES THOUSAN FRANCHISELICEN COMPAN UNIT FROM
RANK COMPANY RY MILLIONS DS SE UNITS Y UNITS S 2017

11 PIZZA HUT PIZZA 5,500.00 878.00 7,432 24 7,456 -41

12 CHIPOTLE GLOBAL 4,800.00 2,000.00 0 2,491 2,491 83

13 SONIC BURGER 4,447.10 1,250.00 3,427 179 3,606 13

DRIVE-IN

14 KFC CHICKEN 4,400.00 1,210.00 4,019 55 4,074 -35

15 ARBY'S SANDWIC 3,886.90 1,177.00 2,197 1,132 3,329 46

H

16 LITTLE PIZZA 3,800.00 874.00 3,700 562 4,262 -74

CAESARS*

17 DAIRY SNACK 3,650.00 1,204.58 4,404 2 4,406 -49

QUEEN

18 JACK IN THE BURGER 3,466.13 1,553.00 2,100 137 2,237 -14

BOX

19 PANDA GLOBAL 3,400.00 1,616.00 125 1,979 2,104 93

EXPRESS*

20 POPEYES* CHICKEN 3,325.00 1,415.00 2,327 41 2,368 148

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2018 TOTAL
AVERAGE 2018 CHANG
2018 US SALES TOTA E IN
SYSTEMWI PER UNIT 2018 2018 L UNITS
CATEGO DE SALES THOUSAN FRANCHISELICEN COMPAN UNIT FROM
RANK COMPANY RY MILLIONS DS SE UNITS Y UNITS S 2017

21 PAPA PIZZA 2,720.00 815.00 2,691 646 3,337 23

JOHN'S*

22 WHATABURG BURGER 2,416.00 2,928.50 126 699 825 4

ER

23 JIMMY SANDWIC 2,200.00 772.00 2,748 55 2,803 48

JOHN'S* H

24 HARDEE'S* BURGER 2,120.00 1,131.00 1,745 119 1,864 16

25 ZAXBY'S* CHICKEN 1,850.00 2,060.00 757 141 898 21

26 FIVE GUYS BURGER 1,615.84 1,274.80 866 492 1,358 37

27 CULVER'S BURGER 1,580.00 2,390.00 680 6 686 45

28 CARL'S JR.* BURGER 1,425.00 1,239.00 1,106 50 1,156 -7

29 BOJANGLES' CHICKEN 1,296.21 1,741.06 440 319 759 -5

30 WINGSTOP CHICKEN 1,261.03 1,139.00 1,095 29 1,252 225

31 RAISING CHICKEN 1,185.00 2,963.00 70 330 400 0

CANE'S*

32 JERSEY SANDWIC 1,148.49 769.00 1,412 82 1,494 151

PAGE 14
MODULE: Quick Food Service Operations
2018 TOTAL
AVERAGE 2018 CHANG
2018 US SALES TOTA E IN
SYSTEMWI PER UNIT 2018 2018 L UNITS
CATEGO DE SALES THOUSAN FRANCHISELICEN COMPAN UNIT FROM
RANK COMPANY RY MILLIONS DS SE UNITS Y UNITS S 2017

MIKE'S* H

33 STEAK 'N' BURGER 1,035.00 1,739.00 185 409 594 9

SHAKE*

34 IN-N-OUT BURGER 950.00 2,794.00 0 338 338 10

BURGER*

35 EL POLLO CHICKEN 870.00 1,798.00 271 213 484 7

LOCO*

36 QDOBA GLOBAL 835.00 1,132.00 354 389 743 17

37 CHECKERS/R BURGER 824.64 972.42 628 254 882 6

ALLY'S

38 DEL TACO GLOBAL 817.77 1,508.29 258 322 580 16

39 FIREHOUSE SANDWIC 810.95 711.66 1,078 37 1,115 40

SUBS H

40 PAPA PIZZA 795.58 568.00 1,331 106 1,437 -86

MURPHY'S

41 TIM SANDWIC 760.00 1,027.00 727 0 727 -11

HORTONS* H

PAGE 15
MODULE: Quick Food Service Operations
2018 TOTAL
AVERAGE 2018 CHANG
2018 US SALES TOTA E IN
SYSTEMWI PER UNIT 2018 2018 L UNITS
CATEGO DE SALES THOUSAN FRANCHISELICEN COMPAN UNIT FROM
RANK COMPANY RY MILLIONS DS SE UNITS Y UNITS S 2017

42 CHURCH'S CHICKEN 750.00 714.00 811 165 1,086 -46

CHICKEN*

43 MOE'S GLOBAL 734.56 1,021.64 714 5 719 14

44 MCALISTER'S SANDWIC 678.12 1,633.51 415 29 444 35

DELI H

45 JASON'S SANDWIC 654.32 2,520.00 105 173 278 5

DELI H

46 MARCO'S PIZZA 621.77 721.99 844 39 883 16

PIZZA

47 BASKIN- SNACK 612.00 240.00 2,550 0 2,550 -10

ROBBINS

48 AUNTIE SNACK 558.24 538.18 1,282 13 1,295 -16

ANNE'S

49 BOSTON CHICKEN 557.77 1,259.00 19 435 454 7

MARKET

50 WHITE BURGER 555.00 1,480.00 3 372 375 -5

CASTLE*

https://www.qsrmagazine.com/content/ranking-top-50-fast-food-chains-america

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MODULE: Quick Food Service Operations
10 Biggest Restaurant Companies
The top 10 restaurant companies in the world are primarily chain operations with
a major international presence. Despite the discretionary nature of restaurant
spending, some companies have positioned themselves to weather economic
cycles by maintaining consistent, profitable growth over the long term. In many
cases, the world's top restaurant companies by market capitalization are holding
companies that control a variety of subsidiary chains.

These are the 10 biggest restaurant companies by 12-month trailing revenue.

This list is limited to companies which are publicly traded in the U.S. or Canada,
either directly or through ADRs. Some foreign companies may report
semiannually, and so may have longer lag times.

Some of the stocks below are only traded over-the-counter (OTC) in the U.S., not
on exchanges. Trading OTC stocks often carries higher trading costs than
trading stocks on exchanges. This can lower or even outweigh potential returns.

#1 Starbucks Corp. (SBUX)

 Revenue (TTM): $24.1 billion

 Net Income (TTM): $1.3 billion
 Market Cap: $88.3 billion
 1-Year Trailing Total Return: -19.5%
 Exchange: NASDAQ

Starbucks is the world's dominant coffee shop-themed chain with more than
30,000 stores globally. It has both company-owned and licensed stores globally,
and sells specialty beverages such as coffees and teas along with fresh food
items. Starbucks also sells branded items outside of its stores, such as roasted
whole bean and ground coffees, including Seattle's Best Coffee; Starbucks and
Teavana-branded single-serve products; and ready-to-drink beverages such as
Frappuccino.

#2 McDonald's Corp. (MCD)

 Revenue (TTM): $19.3 billion

 Net Income (TTM): $4.8 billion
 Market Cap: $144.6 billion
 1-Year Trailing Total Return: -7.1%
 Exchange: New York Stock Exchange

McDonald's is the world's largest fast-food restaurant chain and one of the best-
known brand names. The company has more than 39,000 locations in about 100
countries. A pioneer in the fast food industry, the company has maintained
consistent, moderate growth through affordable prices, speedy service, and by
constantly expanding and refreshing its menu offerings.

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MODULE: Quick Food Service Operations

#3 Yum China Holdings, Inc. (YUMC)

 Revenue (TTM): $8.0 billion

 Net Income (TTM): $0.5 billion
 Market Cap: $19.7 billion
 1-Year Trailing Total Return: 16.6%
 Exchange: New York Stock Exchange

Spun off by Yum! Brands in 2016, Yum China Holdings is a Fortune 500
company incorporated in the United States but headquartered in Shanghai. It
operates thousands of restaurant locations across mainland China. Yum China
also operates all-Chinese versions of Pizza Hut, Taco Bell, and KFC, as well as
local chains.

#4 Darden Restaurants Inc. (DRI)

 Revenue (TTM): $7.8 billion

 Net Income (TTM): -$0.1 million
 Market Cap: $9.7 billion
 1-Year Trailing Total Return: -37.0%
 Exchange: New York Stock Exchange

Darden Restaurants owns and operates a line of casual and fine dining
restaurant chains including brands such as Olive Garden, LongHorn Steakhouse,
Bahama Breeze, Seasons 52, Eddie V’s, and Yard House. The company was
spun off from General Mills Inc. (GIS) in 1995.

#5 Autogrill SpA (ATGSF)

 Revenue (TTM): $6.0 billion

 Net Income (TTM): $0.2 billion
 Market Cap: $1.4 billion
 1-Year Trailing Total Return: -43.2%
 Exchange: OTC
Italy-based Autogrill operates in roughly 1,000 locations in 31 countries. Autogrill
has a portfolio of about 300 brands, many of which operate in airports or along
highways. Some of Autogrill's most popular brands include Spizzico, Grabandfly,
and Ciao Ristorante.

#6 Chipotle Mexican Grill, Inc. (CMG)

 Revenue (TTM): $5.6 billion

 Net Income (TTM): $0.3 billion
 Market Cap: $32.1 billion
 1-Year Trailing Total Return: 44.8%
 Exchange: New York Stock Exchange
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MODULE: Quick Food Service Operations
Chipotle Mexican Grill is one of most successful chains selling simple, fast-
casual Mexican food, specializing in burritos, tacos, bowls, and similar dishes.
The company operated 2,580 domestic locations and 39 international locations at
the end of 2019 and has locations in the U.S., U.K., Canada, France, and
Germany.

#7 Restaurant Brands International, Inc. (QSR)

 Revenue (TTM): $5.6 billion

 Net Income (TTM): $0.7 billion
 Market Cap: $16.9 billion
 1-Year Trailing Total Return: -24.4%
 Exchange: New York Stock Exchange

Restaurant Brands International is among the largest global quick-service

restaurant chains in the world. It was established by the merger of Burger
King and Canadian coffee chain Tim Hortons in 2014, valued at $12.5 billion. It
purchased Popeyes Louisiana Kitchen in 2017. Restaurant Brands operates
more than 27,000 restaurants in more than 100 countries and territories.

#8 Yum! Brands, Inc. (YUM)

 Revenue (TTM): $5.5 billion

 Net Income (TTM): $1.0 billion
 Market Cap: $27.4 billion
 1-Year Trailing Total Return: -21.2%
 Exchange: New York Stock Exchange

Yum! Brands is the largest quick-service restaurant company in the world, with
more than 50,000 restaurants in 150 countries. The company is known for
its franchise chains KFC, Pizza Hut, Taco Bell, and WingStreet. The majority of
the company's locations are franchised by 2,000 partners. Yum! Brands was
spun off from PepsiCo, Inc. (PEP) in 1997.

#9 Domino's Pizza, Inc. (DPZ)

 Revenue (TTM): $3.7 billion

 Net Income (TTM): $0.4 billion
 Market Cap: $15.2 billion
 1-Year Trailing Total Return: 59.6%
 Exchange: New York Stock Exchange

Domino's Pizza is the largest pizza company in the world, with more than 17,000
stores in 90 countries. Domino's offers a wide range of pizza products, such as
traditional hand-tossed pizza, Brooklyn-style pizza, and pizza with crunchy, thick
crusts. More than 94% of Domino's stores in the U.S. are franchise-owned.

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MODULE: Quick Food Service Operations
#10 Bloomin' Brands, Inc. (BLMN)

 Revenue (TTM): $3.6 billion

 Net Income (TTM): -$0.1 billion
 Market Cap: $1.0 billion
 1-Year Trailing Total Return: -35.3%
 Exchange: NASDAQ

Bloomin' Brands is a restaurant holding company that owns chains including

Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime
Steakhouse & Wine Bar. Bloomin' Brands has nearly 1,500 restaurants
worldwide.

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