The fast-food market in the United States was a growth industry beginning in the 1970s. However, by the 1990s both growth and overall sales in the hamburger segment were declining, while there was some growth in other segments. The top three hamburger chains continued to struggle against the tide, facing declining customer base, sales, and profits. The chains were faced with the need to expand their menus in response to the public's demand for lighter, healthier foods and greater variety. The rapidly expanding double drive thru sector seems to be taking over the function that the major hamburger chains used to perform but have largely grown beyond: serving a strictly limited menu of simple food, fast and cheap. McDonald's and Burger King have been exploring new menu items to attract customers. Carl's Jr. is the sixth-place company among the fast-food segment but operates in only four states--California, Arizona, Nevada, and Oregon--though the company plans significant expansion in the Northwest over the next five years. At the present time, 80% of its units are in California. Eat in business plays a bigger part for Carl's Jr. than for most other hamburger chains, contributing 60% of sales. The chain's average annual unit volume of $1.1 million is also on the segment's high side (Casper, 1992, 117).
THE TOP 10 1990 U.S. HAMBURGER CHAINS
In the 1990s, though, there has been a shift for the industry as a whole so that improvements in the U.S. economy have also meant improvements in the profit picture for fast food franchises. Real growth in 1994 exceeded projections to achieve a growth of 2.9 percent on total sales of $283.2 billion. Growth for 1995 was projected at 2.5 percent for total sales of $296.3 billion. Among the improvements in the economy that aided the fast food industry were a 2.8 percent increase in the GDP, an unemployment rate down to 5.9 percent, inflation at 3.6 percent, and disposable income at 2.9 per...