Lesson 5

Answers to the Questions

V. 1. B 2. A 3. B 4. D 5. A

VI.

1.It does not fare well today. The burger-buying public is getting its fill of the same old stuff. According to a research firm, sales at traditional fast-food outlets are growing at a sluggish 3 percent to 4 percent a year overall. Some fast-food chains have announced the closing of a number of underperforming restaurants.

2.His prediction is that conditions may get worse before they get better, and Americans may finally have enough McDonald's.

3.Quick-casual restaurants offer the advantages of fast service and higher quality food.

4.Chipotle Mexican Grill saw a phenomenal 116 percent increase in sales in 2001. Overall, the $5 billion quick-casual business is the hottest restaurant segment with growth expected to continue at a 15 percent to 20 percent clip during the next five years—and total sales perhaps hitting $50 billion in the next decade or so.

5.Many fast-food chains have been buying quick-casual restau-rants. For example, McDonald's now owns Boston Market, Chipotle, and Donatos Pizzeria and also has a minority stake in London-based Pret A Manger; Wendy's bought Baja Fresh for $275 million and paid $12 million for a 25 percent stake in Pasta Pomodoro chain.

6.The objective factors are burger burnout, empty-nest baby boomers who are tired of cooking, and gen X-ers who never did cooking. The subjective factors are the effects made by the quick-casual chains to create a different meal atmosphere and make customers feel that they are special.

Outline

I. Slow growth of fast-food business (Paragraphs 1-2)

(1) Public's fast food fatigue

(2) Sluggish growth of fast-food business

II. Fast growth of quick-casual restaurants (Paragraphs 3-4)

(1) Characteristics of quick-casual restaurants and their fast growth

(2) Fastest-growing quick-casual chains

III. Fast-food chains'purchase of quick-casual restaurants (Para-graphs 5-7)

(1) Fast-food chains'efforts to buy quick-casual restaurants

(2) Their purpose in purchasing quick-casual restaurants

IV. Factors in quick-casual segment's success (Paragraphs 8-10)

(1) Objective factors: burger burnout, empty nest boomers, gen X-ers

(2) Subjective factors: Efforts to create a different meal atmosphere

Efforts to make customers feel that they are special

V. Prospects of fast-food outlets (Paragraph 11)

Not disappearing anytime soon, but needing growth drivers