Whether it is your first date or your 17th birthday dinner, it is always a popular choice for
people to pick a chain restaurant when it comes to dining out. But have you ever stopped
and wondered why is it that way? How exactly did these chain restaurants expand so rapidly
and took over the foodservice industry?
According to IBISworld.com, there are over 95,000 chain restaurants in the US, employing
almost 2,000,000 workers. some of the biggest companies in the chain restaurant industry in
the US include household names like The Cheesecake Factory, Domino's Pizza, Chipotle
Mexican Grill, Olive Garden, etc. These chain restaurants serve a variety of dishes, from
Italian to Mexican to seafood, there is always almost a chain restaurant for any type of
cuisine.
Food restaurant chains date back to the 20s, when White Castle, the 1st fast-food chain in
America. White Castle was known for their sliders, placing a meat patty between two slices
of bread, which set the stage for hamburgers as the American icon we all know today.
Due to its popularity, it wasn’t long until competitors joined the race. Some of the most
well-known competitors include popular fast-food chains KFC and Mcdonalds, which started
taking over the foodservice industry globally.
Throughout the decades, chain corporations used different methods to expand their brands.
This includes going public to raise capital, where a food company sells shares to the public
through the stock market to raise a large sum of money to open new restaurants in foreign
locations. Companies that use this method include Dominos, Chipotle, Dunkin Donuts and
Texas Roadhouse. Another strategy companies use to expand so rapidly is through selling
franchises. When a chain opens a new restaurant through a franchise, it initially means a
third party buyer invests in the chain’s brand name and business model to open a new
restaurant. The chain keeps a franchise fee and a portion of the new restaurants’ earnings in
return. This method is commonly found in more international chain restaurants like Smitty’s,
Little Ceasar’s Pizza, Moxie’s, etc.
Although in recent years, restaurants have been criticized and have received backlash over
the years for removing the authenticity and traditions of dishes, specifically cultural foods,
replacing it with cheaper substitutes to save expenses. Most critics think a lot of dishes
served like tacos and pizza have been “Americanized” into lesser quality to save expenses
for the corporate chains.
A lot of these chain restaurants also serve microwaved and reheated frozen food, that plays
a role in why a lot of people consider them mediocre when compared to a lot of local, smaller
restaurants that only make fresh dishes on the spot.
If that is the case, then why are these chain restaurants still so successful? What is the
reason behind their takeover of the foodservice industry? One of the biggest reasons why is
because of their brand names. Big brands like Taco Bell and Pizza Hut are safe and secure,
and you’re more likely to visit these places as you know it is a guarantee that you will have a decent experience. In this case, for people who are simply too lazy to research a small local
restaurant that is unheard of, they could simply walk in on a chain restaurant. or for tourists
who are unfamiliar with local restaurants, big chain restaurants would be a more considerable choice as these restaurants offer safety and security to them, and a budget and
price guarantee.
Chain restaurants have been around for a while, and they are unlikely to be going anywhere
else. What are your thoughts on chain restaurants in general? Do you prefer dining in local
restaurants or a chain? Leave a comment on this article and let us know what you think!
Written By: Quenifer Lung