Burgers at 5 Guys and others have much better burgers. But they are twice as expensive and they are cooked to order and it takes a lot longer. A burger is like $7 and that does not include fries or a drink. The women behind the counter that I chat with while waiting are friendlier than the women at McD. Mc D has a dollar menu for the value conscious. It's the familiar go to brand. But, look at the people that frequent McD and those that go to 5 Guys and Smashburger. It's a different crowd. Fewer families and no playground at 5 Guys. But, they don't offer breakfast, happy meals or drive thru's. McD is doing better because they are replicating 5 Guys. Now, they offer several sandwiches with fresh beef and some places are experimenting with veggie burgers. But, 5 Guys still has a better burger.
I believe there are two competing elements here. The dude who came up with the McDonalds construct realized the most important secret for a fast-food franchise's success. Consistency. It means that a Big Mac you get in Texas will taste exactly the same as one you get in Alaska, Colorado, NY or Florida. Like-wise with the Whopper, or Dave's classic Single, or a stuffed-crust pizza. This consistency has to come at a cost, which is quality. As we all know, quantity will always rise above quality, because people are averse to change. The fact that the smaller burger joints have a better-tasting burger will never trump the consistency of the cheaper burger "with the taste you know and love." I.E., the one that you can go into at any single place all over the country and get with the same flavor, ingredients and taste every time. People expect a certain taste and experience, and will get it with each visit. And then there is the cost factor, like Dallas mentioned. Anyone remember Roy Rogers? There is a smattering of them still around in the Northeast. Great burgers and roast beef that blew away the competition in taste like Arby's and BK, but they priced themselves out of the market. WAY too expensive. USA peeps want their cheep shit! It's tradition!
Part of the reason for the "fast-casual" revolution is that people are now more health-conscious and happy to pay a small premium for better quality food—food with better bread and ingredients such as avocado. That's part of the reason companies such as Panera Bread have been so successful in recent years because they realized the first, and probably the most important consideration a customer makes when buying a sandwich or roll, is the type and quality of bread on offer. Consumers are much more educated regarding grains and the health benefits compared 10-20 years ago when most people ate bread made from white flour—which consumers have now worked out is not good for your health at all and doesn't offer any nutritional benefit. McDonald's is actually not that cheap anymore—when I was in the UK, McDonald's was one of the most expensive fast food places you could eat at. If you wanted an Angus Beef Burger, which is pretty much the standard these days—not the Big Mac which they try to offload for an additional £1 when you buy a meal, the cost was approx. £9 just for the burger which is US$11-$12 The fast food giants have improved their quality a lot over the past decade or so but not fast enough to keep up with changing eating habits and expectations of consumers and in particular the expectations of millennials. Australia is seeing an influx of fast-casual businesses right now. Taco Bell just set up shop, Nando's is expanding and there are many others. Pizza is taking off because oven technology has improved—they can now cook a pizza in less than 180 seconds or something and the dough and toppings are healthier. With each generation, consumers become smarter. If they stop eating something for whatever reason, it usually means there's an opportunity to do something better. With regards to Pizza Hut, they were never really an innovator, they were simply first to market many decades ago and have focused on expansion and cost-cutting. As Baron stated, there's no need for Pizza Hut to change, they can just continue to expand into places where there's no competition rather than transform their business and increase their costs outside the US. It's a safer option for them until they are forced to change.
Just like traders seek out value, at any one particular moment in time, so do consumers. For many that value is Micky Dee's, for others Five Guys, In-N-Out etc There will always be new competitors that come along that do it better and some that no longer do it better that either change and adapt or become post mortem ECO 101 historical case studies of what not to do.
My oldest is in his first year in undergrad and loves Blaze. He likes Domino’s as well. I can’t say that I’ve had Domino’s in the last 20Y.
That is because you are smart. Want Dominos? Get some pepperoni and cover it in MSG, with a tomato slice. Place on top of a piece of white bread with some shredded cheese from the supermarket aisle (Kraft recommended). Toast it. Done. That's about it with these damned fast-food pizza chains. I hate the lot of them. Yes, they work, I get it. But they AIN'T REAL PIZZA!
I'm probably going to go there tonight because I have some coupons, and I don't feel like cooking something. Why not? It is convenient and cheep and fast. And I AM the master coupon whore. I cannot give up a good deal when the situation presents itself. And it is soft food, so it won't break my tooth hole, which would lead to a dry socket, which is probably the most painful experience in the universe a human being can have.