A & W Drive-Ins Limited Strategic Analysis
Statement of the Problem:
Mr. Ed Drayson must prepare a set of recommendations for Mr. Harry Braithwaite about the A & W Drive Ins in North Eastern Canada. The drive-ins are facing the challenge of rising costs at the same time as increasing competition. The McDonald's Corporation appears to be targeting A & W specifically by opening restaurants in close proximity to A & W drive-ins. Furthermore, the cost of meat is rising approximately 40 percent. Not every restaurant is facing the same price increases. The meat cost increase may be temporary but the labor costs will be permanent. The decisions that have to be made are very serious are require careful analysis with long-term consequences in mind.
Analysis:
The fast food industry is growing rapidly. In the area of New Brunswick, Nova Scotia and Prince Edward Island, the growth of fast food restaurants has more than doubled in a few years.
McDonalds
Français : Un MacDonald's, un KFC et un Pizza Hut...
English: Fast food in Yambol, Bulgaria Бълга...The introduction of new restaurants has only had a temporary negative impact on existing restaurants indicating a general increase in the numbers of people eating outside the home.
The characteristics of the industry are to provide food that is fast and reasonably inexpensive to the customer. The food is packaged so that the customer may eat the food in their car or take home to eat. They may also eat at the restaurant but the food is still expected in a very short period of time. The foods are generally food that can be eaten with the hands. The industry is also characterized by a growing number of national chains challenging local restaurants. The national chains have a predetermined menu which does not vary from store to store throughout the chain to provide consistency and continuity so people know what...