-
College Students and Quick-Service
Restaurants: How Students Perceive
Restaurant Food and Services
YEN-SOON KIM and JEAN HERTZMAN
Department
of
Food
and
Beverage
Management,
University
of
Nevada,Las Vegas, Las
Vegas, NV
, USA
JUNG-JIN HWANG
The
School
of
Hospitality
Management,
The
Pennsylvania
State
University, University
Park, PA, USA
The current generation of
college students has grown up with many
quick-service restaurants. In the
United States, the top three quick-
service restaurants are
McDonald
’
s, Burger King, and
Wendy
’
s.
A survey
of 499 college students was conducted regarding
their
satisfaction levels with quick-
service restaurant foods and services.
The results indicated that if the
quick-service restaurant wants to
attract college students, they must
concentrate on providing out-
standing
“
quality
value
”
and
“
practical
value.
”
Wendy
’
s received
the highest satisfaction scores over
McDonald
’
s and Burger King.
The results from this study can assist
executives and managers
in developing
strategic plans appropriate for the college
student
Market.
INTRODUCTION
The
restaurant
industry
in
the
United
States
is
expected
to
reach
sales
of
$$558billion
and
have
945,000
locations
in
2008
(National
Restaurant
Association[NRA], 2008).
Fueled
by
demographic
and
social
changes
beginning
after
World
War II, the restaurant
industry
’
s share of the food
dollar has risen
from
25%
in
1955
to
48%
today.
The
average
adult
eats
at
restaurants
5.8
times
per
week
and
over
half
(53%)
consider
restaurants an essential part of their
lifestyle (NRA, 2008).
Increasingly,
these
restaurant
meals
are
consumed
at
quick-service
restaurants
(QSRs).
In
1970,
there
were
70,000
QSR
establishments
in
the
United
States,
and
that
number
increased
to
about 186,000 in 2005
(Spurlock, 2005). Total QSR sales were $$85.9
billion in 2005, increased to $$93
billion in 2007, and are forecasted
to
be more than $$104 billion by 2010 (Mintel,
2008).In the United
States, the top
three QSR brands are
McDonald
’
s, Burger King, and
Wendy
’
s.
In 2006,
McDonald
’
s had 13,774
(11,670 franchised and 2,104
company-
owned) restaurant units. Its storewide sales
increased from
$$24,390 million in 2004
to $$27,100 million in 2006 (QSR Magazine,
2007).
The
NRA
reported
that
in
November
2007,
the
restaurant
industry
experienced
a
decline
in
same-store
sales,
with
restaurant
activity falling to its lowest level
since February 2003 due to slow
customer
traf
?
c.
However,
in
this
tough
market,
McDonald
’
s
has
stood out by positioning
its brand as more healthful and as having
more variety. Through 2007,
McDonald
’
s monthly same-
store sales
comparisons
had
yet
to
go
negative
(Mintel,
2008).
Sales
and
net
income have continued to
be strong with its third-quarter net income
increasing
by
11%
in
2008,
despite
the
U.S.
?
nancial
crisis.
In
addition,
McDonald
’
s
Corp
(MCD)
reported
better
than expected
pro
?
t, fueled by
strong sales in the United States, possibly caused
by
consumers seeking lower prices when
they dine out (Geller, 2008).
In
2006,
Burger
King
had
7,534
(6,656
franchised
and
878
company-
owned) restaurant units. Its storewide sales
increased from
$$8,172 million in 2004
to $$8,514 million in 2006 (QSR, 2007). Its
net
income
rose
to
$$50
million
in
the
?
scal
?
rst
quarter
ended
September
30
in
2008.
The
company
expects
sales
and
pro
?
ts
to
bene
?
t
from
restaurant
remodeling,
extended
hours,
increasing
the
number
of
value-menu
items,
and
control
of
energy
costs
(Sivaraman, 2008).
In
2006,
Wendy
’
s
had
5,948
(4,638
franchised
and
1,310
company-owned)
restaurant units. Its storewide sales increased
from
$$7,712 million in 2004 to $$7,800
million in 2006. However,
Wendy
’
s sales in the third
quarter of 2008 decreased 1.2% during the quarter
to $$548.1 million for company- operated
restaurants (Business Wire,
2008). In
fact, it lost its position as the number three QSR
chain to
Subway in 2007 (Nuckolls,
2008).
According
to
the
U.S.
Department
of
Education
(2008),
the
college student market
is on the rise; enrollment in degree-granting
institutions
increased
by
16%
between
1985
and
1995.
Between
1995 and 2005,
enroll- ment increased at a faster rate (23%),
from
14.3 million to 17.5 million.
Between 1995 and 2005, the number of
18
–
24-year olds
in the United States increased from 25.5 million
to
29.3
million,
and
the
percentage
of
18
–
24-year
olds
enrolled
in
college rose from 34% to 39%. These
enroll- ment increases can be
attributed to both overall
population growth and rising
percentages
of adults attending college
(Snyder, Dillow, & Hoffman, 2008).
Much
of
the
growth
between
1995
and
2005
was
in
female
enrollment;
the
number
of
females
enrolled
rose
27%,
while
the
number
of
males
only
rose
18%.
The
demographics
of
the
college
market are also changing due to
increasing age and ethnic diversity
among
students.
Enrollment
of
people
25
years
old
and
more
increased by 18% from 1990 to 2005, but
is expected to increase by
21%
from
2005
to
2016
(Snyder
et
al.,
2008).
In
2006,
87.3%
of
college students were native to the
United States, while 12.7% were
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