2007 QSR-50

For those who are particularly interested in FOOD, QSR Magazine has released the 2007 QSR 50.  The publications annual ranking of quick-service restaurant brands, based on annual sales figures.  Topping the list this year:

  1. McDonalds
  2. Burger King
  3. Wendy's
  4. Subway
  5. Taco Bell
  6. Starbucks (Does not franchise in U.S)
  7. KFC
  8. Pizza Hut
  9. Dunkin Donuts
  10. Sonic Drive-In

The top 5 remained unchanged from 2006.  Pizza Hut dropped from #6 to #8 which allowed Starbucks and KFC to move up one spot.  Domino's and Arby's each dropped a position which allowed Sonic to jump up two spots and make the top 10.

Pizza Hut was the only one in the top 10 who actually saw a decline in systemwide sales of 2.3%, while Starbucks saw the largest increase of 21.1% largely the result of unit growth.

Particularly interesting is the fact that Subway has more than 1.5 times as many locations in the U.S. as McDonalds, but the average sales per unit for McDonalds is 525% greater than Subways ($1.96 million per unit for McD- vs. 371,476 per unit for the Sub.  It should also be noted that included in Subways are LOTS of new locations, + some estimations by GEFF or QSR). 

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Comments

Successful Franchises

On what criteria is this list based? I've seen at least one article that talked about issues with BK and Wendy's, including poor performance at both chains that has the operators of Wendy's talking sale and BK talking bankruptcy. Sales is a pretty good indicator of how a chain is doing if it's run well. As we've seen with companies like Quiznos, however, it's not hard to pump up short-term sales and profits on the backs of franchisees with predatory coupons, low MSRP's, and kickbacks on food sales.

What criteria should be used when rating a chain of restaurants?

My list includes
1. Profitability - and with franchisors how profitable their franchisees are.
2. Sales trends - are sales moving up or down? if up, how much discounting is being done to boost them?
3. Advertising - both quality and quantity of commercials, what ad slots are bought, and how much is focused on the chain's primary customer.
4. Customer satisfaction

QSR 50

The QSR 50 is based solely on System Wide Sales - nothing more - nothing less.  It is not promoted as anything other than what it is.

As for the last sentence of your opening paragraph, my thoughts are as follows:  A ZOR shouldn't mandate promotion participation, A ZOR should not mandate Retail Pricing, product rebates to the ZOR should not concern the ZEE - PROVIDED that the ZEEs are not paying too much for the product or being required to use an inferior product for the purposes of padding the pockets of the ZOR.

As for your rating criteria, it is the start of a good and very long list.

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!www.fransynergy.com

Burger King stock has doubled this year

Stock closed to today at $24.97 and on July 27, 2007 Burger King announced it would pay off $25MM in debt.

What are you talking about?

QSR 50

The QSR 50 is based solely on System Wide Sales - nothing more - nothing less.  It is not promoted as anything other than what it is.

As for the last sentence of your opening paragraph, my thoughts are as follows:  A ZOR shouldn't mandate promotion participation, A ZOR should not mandate Retail Pricing, product rebates to the ZOR should not concern the ZEE - PROVIDED that the ZEEs are not paying too much for the product or being required to use an inferior product for the purposes of padding the pockets of the ZOR.

As for your rating criteria, it is the start of a good and very long list.

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!www.fransynergy.com