Hardee's Competition
Now Viewing Hardee's's competition in: Fast Food and Quickservice Restaurants
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How have deep discounts and dollar menus affected company profits? - While dollar menus have driven sales, price wars have affected profits. Companies may offer meal packages or “super-size” options to increase the customer check and provide additional consumer value.
How does the company stay true to its core customer while growing sales through new targets? - Many companies select a few key demographics, offer products that leverage existing equipment, and customize marketing and promotional plans to reach desired targets.
Who is the company’s typical customer? - While fast food appeals to a broad demographic, the typical customer is 18 to 35 and has no children. Young men are important because they tend to cook infrequently and eat a lot.
How does the company compete with large fast food chains' massive marketing budgets? - Fast food restaurants are among the top spenders for TV advertising, and the most recognized brands in the world.
What types of promotions have been the most effective? - Companies may use promotional menu items, meal packages, “super-sizing,” and sweepstakes to drive sales.
How does the company balance the trade-off between speed, accuracy, and customer service? - While customer service is a benefit, speed and accuracy are extremely important, given the short transaction time.
How does the company monitor customer service? - Many franchises use mystery shoppers and corporate management may make monthly “drop-in” visits to monitor customer service.
What is the average check at the company’s restaurant(s)? - The average check at a true fast food restaurant is about $3 to $4, according to Technomic. The average check at a fast-casual restaurant is $6 to $8.
Who are the company’s most important competitors? - Fast food restaurants compete with companies that offer meals or prepared foods, including fullservice restaurants; supermarkets; delis; convenience stores; snack shops (donut or bagel shops); and cafeterias.
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
Business Challenges
CRITICAL ISSUES
Volatile Supply Costs - Unstable manufacturer prices for raw ingredients and paper products used in fast food restaurants can significantly impact margins. Commodity markets affect manufacturer prices for beef and poultry; manufacturer prices can change up to 13 percent in a single year. Fluctuating wood pulp prices affect the cost of paper products like cups, bags, and containers, where prices can change up to 6 percent a year. Food and paper costs are typically 25 percent of sales for fast food restaurants.
Increasing Competition in Away-From-Home Food Market - Fast food restaurants face increasing competition as a broader range of businesses tries to capture share in the away-from-home food market. By offering take-out or delivery, fullservice restaurants offer similar or better convenience and higher quality food. Grocery stores and warehouse clubs are providing more ready-to-eat meals and sides, often at a better value than fast food. Convenience stores, gas stations, coffee shops, and delis sell sandwiches and beverages, cutting into fast food’s share of the lunch market.
Industries Where Hardee's Competes
- Leisure
- Restaurants & Cafes
- Fast-Food & Quick-Service Restaurants
- Restaurants & Cafes
