McDonald's - Competitors

McDonald's Competition

Now Viewing McDonald's's competition in: Fast Food and Quickservice Restaurants

Recent Developments

US Disposable Personal Income Declining - US disposable personal income, an indicator of demand at fast food and quickservice restaurants, rose 1.3 percent in February 2008 compared to February 2007. Year-over-year growth in disposable personal income has declined steadily since August 2007 as the US economy has weakened. Many experts predict that the US economy will remain weak through 2008, and some argue that a recession is possible.

Starbucks Sued Over Tips Again - Starbucks is being sued by an employee who claims that the company is violating a New York state law that bars employers, or agents of an employer, from receiving part of worker tips. Starbucks has said that shift supervisors often do the same work as baristas, and are entitled to a share of the tips. A judge in San Diego awarded $105 million to California baristas after ruling that Starbucks had improperly allowed shift supervisors to share baristas' tips.

Calorie Counts Must be Posted on Menus - Some restaurant chains in New York City will be required to post calorie counts on menu boards starting April 15, 2008. Any chain that operates at least 15 separate outlets must comply. Regulations intended to promote the health of consumers are often replicated throughout the US. The New York State Restaurant Association has sued to block the requirement.

Competitive Landscape

Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under $40,000.

Full Industry Overview For Fast Food and Quickservice Restaurants

Fast Food and Quickservice Restaurants Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US food and drinking places, which includes fast food restaurants, is forecast to grow at an annual compounded rate of 4.3 percent between 2007 and 2012.

Food Services Output Growth Levels

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.