Apparently the cheery weather had little effect on the shareholders. After listening to a relatively upbeat report of 1996 performance and promises of continued expansion and greater profits, shareholders stung management with questions on food quality, customer service and the chain's Campaign 55 promotion. Not even Teenie Beanie Baby handouts could assuage investor discontent. Franchisees are storming, too, fried by market saturation and the changing tastes of consumers. To a degree, the situation at the nation's No. 1 chain reflects that of today's somewhat unstable restaurant industry, an assessment of which is presented in Restaurants and Institutions ' 33rd annual ranking of the nation's top 400 restaurant concepts.
Sales are impressive.
Behind the numbers, however, are signs that some operations face substantial hurdles. Increasing food and labor costs present challenges, as do finicky consumers, whose expectations exceed previous generations'. This environment has been especially unkind to the industry's leading concepts, many of which struggle under misfired attempts to counter the challenges. McDonald's receives the most scrutiny. A series of flops, including the McLean and Arch Deluxe sandwiches and this year's C-55 campaign, failed to add any spark to U.S. sales.