Fast Food and Wendy

Wendy’s a place I eat when my mom had a long day or just doesn't want to cook. It takes little to no time at all to get your food. Wendy’s is an international fast food chain that started in Columbus Ohio in 1969. I grew up eating Wendy’s one of my cheap favorites. Wendy’s gets hungry customers from ads and billboards all over.

2- The per unit profit for 1 Kg of "complete meal" = Price to DM - Total unit cost= 4.40 - 4.92 = (0.52).

Throughout all of human history, mankind has searched for the ultimate food. To our enjoyment, in 1950, the world was given the answer: Whataburger. Whataburger has taken the hearts of Americans by storm by by serving classic southern style burgers, fries, and shakes. Despite it’s humble beginnings in Corpus Christi, the franchise now boasts over 750 locations and has even secured the 2016 title of “Best Burger in America”. In an effort to understand why this small burger chain became so successful evaluating this legendary business in three different aspects: price, quality, and customer service.

The sales-value at splitoff method captures the benefits-received criterion of cost allocation and is the preferred method. The costs of processing a chicken are allocated to products in proportion to the ability to contribute revenue. Chicken Little’s decision to process chicken is heavily influenced by the revenues from breasts and thighs. The bones provide relatively few benefits to Chicken Little despite their high physical volume.

The McDonald’s “Speedee Service System” launched in 1948 and made meals terribly cheap and fast. In Fast Food Nation, Eric Schlosser wrote, “The McDonald brothers’ Speedee Service System revolutionized the restaurant business… as word spread about the low prices and good hamburgers.” (20) For the first time, working-class families could afford to buy their children restaurant food. Customers were purchasing their “Pure Beef Hamburger” for 15 cents, and “Tempting Cheeseburger” for 20 cents.

In 1986 when the two oldest sons of Jerry and Janie Murrell decided not to attend college, they made a decision that ultimately changed their family’s lives forever. As supportive parents, the Murrell’s used the money intended for their tuition to open a hamburger take-out shop in Arlington, Virginia to keep the boys close to home and employed (Boone and Kurtz, 2012, p. 78). The restaurant was named Five Guys and a Burger, after their family of five sons. With hard work and dedication, Five Guys has flourished to over six hundred franchises in America and Canada, and has persistently multiplied despite the recent

A price estimate of a 6-pack of bottle Coors beer today is $5.59, and using the Consumer Price Index for 1990 it was determined that a 6-pack of bottle Coors cost approximately $3.43 (see Appendix A-2). Using Study F Cost of Goods Sold is 77.1% of sales. The contribution margin was then calculated as 22.9%. Fixed costs summed up to be about $250,000 including salaries, equipment & land depreciation, utilities, insurance, taxes, maintenance and janitorial services, and other miscellaneous expenses. Break-even Sales computed from the aforementioned figures turns out to be $1,211,790.39 (see Appendix A-4). Variable Costs per unit were determined using the contribution margin and price variables, and the result came to $2.65 (see Appendix A-4). Break-even quantity then was calculated at around 320,513 units, or gallons in 1990 (see Appendix A-5). A 6-pack of bottle beers holds approximately 72 fluid ounces, this makes up about 0.5625 gallons resulting in a price of roughly $5.35 per gallon (see Appendix A-6). Projected demand of beer in 1990 in South Delaware is about 5,400,397 (see Appendix A-1) and the Coors estimated market share of this demand according to Study C is 8.9% which computes to 480,635 gallons, therefore projected sales of Coors in the 2 county South Delaware distribution area is around $2,573,404.10 in 1990 (see Appendix A-7). The break-even market share of Coors in the 2 county distribution area of

Since 1950, Whataburger has proudly served a bigger, better burger. Over six decades ago, an adventurous and determined entrepreneur named Harmon Dobson had a bold idea: to serve a burger so big that it took two hands to hold, and so good that after a single bite customer couldn't help but exclaim. A burger restaurant should be clean and have a fresh food. First, people try many restaurants, but sometimes if they like something, they will keep going to same restaurant even if wasn’t that good, but they used to like it form the begging.

"Fast food is popular because it 's convenient, it 's cheap, and it tastes good. But the real cost of eating fast food never appears on the menu," was said by Eric Schlosser. Several people in America have become dependent on fast foods. How many of the people who eat this food actually know what is really in the food or how it was made? Others don 't think about it, because within ordering, three minutes later a customer can pull up to the window, pay, and get food. It is quick and cheap. The United States has become dependent on fast foods because they are everywhere, but the consequences of these facilities have brought health issues and closing of community restaurants.

Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer?

BK, on the other hand, uses the continuous chain broiler, with a capacity of 8 burgers per chain, where no human intervention is necessary because the patties enter the broiler on one end and come out on other end after 80 seconds. Furthermore, sandwich dressing is standardized at McD’s with lever based dispensers and portion controlled condiments. At BK, sandwich dressing is handled by employees using plastic squeeze bottles without pre-measured quantities. The lack of portion-controlled condiments at BK can result in different taste and quality of products in addition to wastage. Exhibit 5 and 6 reveal the operating results for McD’s and BK, respectively. McD’s is ahead of the game in the sandwich dressing department, Exhibit 6 shows that BK spends 1.1% of their sales in condiments wastage. BK also uses microwave ovens to maintain the “Made to Order” warm and fresh burgers. The use of microwave ovens result in a 2.1% increase in utility cost compared to McD’s. On the other hand, the cost of food at McD’s is 1.9% higher compared to BK because McD’s keeps finished goods inventory in a bin for 10 minutes before they are discarded. In addition, the paper used to wrap the burger contributes to higher food cost of 0.9% at McD’s.

The Coca-cola company is a homogeneous product manufacturer company. With 1.7 Billions units sold a day, the company is the largest soft drink manufacturer in the world and hence it becomes important to have a simple accounting system to determine how much these products should be sold at. The process costing determines the average cost for each unit so that it is easy to sell both a large amount of products or a small amount and understand how much profit is being made on the products. This type of accounting system would not be as effective if the company was creating many different items that had different costs of tasks throughout the process.

Once I stepped inside the restaurant I automatically could hear the music playing at a moderate level and the laughter of the customers. Right off the back the restaurant's ambiance had a positive vibe. Mindful, it was a Saturday late afternoon. Mary Jane Burger and Brew is a local restaurant trying to stay true to its past. The granddaughter of the original owner now runs the place with the intention of serving good quality food where the ingredients are fresh, mouth watering, and surely not filled with antibiotics and all that other genetically modified elements found in processed foods. The vintage, rustic looking place, holds a small town atmosphere with a big taste.

While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate

Wendy’s is the third largest hamburger chain and their target market is 24-49 year olds. Wendy’s serve high quality premium (meat never frozen), better tasting old fashioned burgers (burger patty is square which is unique to other hamburger restaurants). The drive through stay open late for late night dining and individual who want fast food but who choose to dine in find that Wendy’s dining room has a home style appeal. Individual seeking a cheap meal can be found on Wendy’s 99 cents menu.