Although the financial state of the fast food industry is rosy, some companies are not faring as well. Hardee's fatal mistake was trying to be too many things for too many people. Hardee's menu included fried chicken, salads, and several other unusual items in addition to their core burger menu. This strategy failed and Hardee's is now implementing a program to get back to the basics of their business. Cost cutting in the fast food industry is extremely important.
Pricing dictates success and restaurants that keep their costs down thrive in today's marketplace.
Company reputation is paramount to consumers when they choose a restaurant to patronize. Several years ago Jack in the Box learned this lesson well when a E-Coli breakout occurred in several west coast stores. After the poisonings were publicized, sales at Jack in the Box plummeted. Although these contaminations occurred several years ago, consumers are still avoiding Jack in the Box and sales are suffering. Investment projections for the largest franchises are optimistic.