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Fast food is an American innovation that has been around for over 80 years. Despite lasting durability, the unit economics for fast food brands and franchisees have been strained to a breaking point.
While some companies will adapt to changing circumstances and achieve success for decades to come, others will be overtaken by an evolving market and stringent regulations and go from household names to obscure historical trivia. Some examples of formerly prolific chains that have fallen into obscurity include Bob Evans, Long John Silver’s, Godfather’s Pizza, and Checkers/Rally’s.outpacing wage gainsThis could be an existential problem for an industry based largely on affordability.
Remember: for the most part, workers in fast food, pizza delivery, and other franchised industries are not paid by the corporations that own the brand, but by the franchisees who own the majority of the actual restaurants.
John Schnatter, founder, chairman & CEO of Papa John’s International, Inc. rings the NASDAQ Opening Bell on January 31, 2014, in New York City. Decision making will be much easier if elected officials stop creating artificial barriers to success, such as inflation-driving deficit spending, unaffordable minimum wages, and burdensome taxes and regulations.
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