1) Perform research into 2 companies that you feel are McDonald's top two rivals. Name the companies and provide the annual revenues for each company, as well as McDonald's.
2a) Why do you believe the 2 companies are competitive rivals to McDonald's?
2b) How is each competitor trying to outsmart McDonald's in the marketplace? Please support your explanation with properly cited facts from credible sources.
APA citation please!
Answer:
SUBWAY
Subway is among the fastest growing fast food brands. Privately owned, Subway has close to 45,000 locations in over 110 countries as at 2017. As a single brand fast food restaurant chain and operator, Subway is the largest in the world. The primary fast food sold by Subway is the submarine sandwich popularly known as ‘sub’ although it also sells paninis, wraps, doughnuts, muffins, cookies, and salad. Subway also offers gluten-free bread as well as brownies as part of its menu.
Subway’s main selling is its ‘Eat Fresh’ slogan which focuses on how its sandwiches are prepared from freshly baked bread. Subway’s revenue as at 2015 was 1.11 billion dollars. Subway also focuses on health and lately McDonalds and other burger brands have come under the scanner for their health disadvantages. This is where Subway is winning the market bit by bit and hence it is considered as one of the top McDonalds Competitors.
KFC
KFC is the second largest fast-food chain after McDonald’s and one of the top McDonalds Competitors. Its specialty is in fried chicken and burgers. Founded in 1930, the brandhas grown and expanded into other territories with close to 20,000 branches or locations in more than 120 countries as at 2015. Along with Taco Bell and Pizza Hut, KFC is a Yum! Brands subsidiary. Apart from fried chicken, KFC also offers salads, French fries, soft drinks and chicken fillet burgers among other notable products.
KFC’s fried chicken has been hailed as the best in the world and its slogan ‘Finger-Lickin’ Good’ embodies how good they are in what they do. As at 2013, KFCs revenue stood at 23 billion dollars.
MC DONALD'S
McDonald’s is one of the most favorite fast food joints in the world and it’s over 36,000 locations worldwide as at 2016 serve to strengthen this fact. Founded in 1940 by brothers Richard and Maurice, McDonald’s has revolutionized and shaped the fast food industry to what we have come to know and love
As at 2012, McDonald’s was second only to Walmart as the largest private employer in the world with more than 1.9 million workers with 1.5 million of those working for franchises. McDonald’s direct employees number 375,000 as at 2016.
McDonald’s deals with products such as French fries, hamburgers, milkshakes, and cheeseburgers among many others, the fast food giant has also expanded to serving fish, fruits, salads, and smoothies. McDonald’s serves close to 69 million consumers in more than 100 countries and this is where most of their 24.6 billion dollars’ worth of revenue (as at 2016) is generated from.
A net income and total assets equalling 4.6 billion and 31 billion respectively solidify McDonald’s standing as a major player in the fast food industry. McDonald’s has its headquarters in Illinois, United States. The following are some of the companies giving McDonald’s a run for their money
"The biggest competitor is SUBWAY . Where ever you see a McDonalds, it's common to see SUBWAY near by. They specialize in flame broiled burgers and use that as their marketing strategy. The Whopper is their number one selling burger selling approximately 30% more than all their other burgers. The second competitor is KFC Although in some regions other hamburger stores sell more, if you take international sales into consideration, KFC clearly is a strong competitor. They advertise opening late and concentrate on their dollar menu luring people in to buy other more expensive items."
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