The old burger wars were between McDonald’s and its similar-but-slightly-different competitors like Burger King and Wendy’s. Peter Suderman says the new burger wars won’t follow the same pattern. The new battle will be more like plucky bands of humans hunting down woolly mammoths, as the smaller-but-nimbler chains start to encroach on the big chains’ traditional territories:
Hamburger fans, rejoice: Better burgers are winning the fast-food wars.
On Wednesday, McDonald’s — the biggest and most successful brand in fast food — announced that its current CEO, Don Thompson, would be stepping down. The departure comes on the heels of a lackluster earnings report and a steep drop in overall sales as competition from new entrants has increased.
This morning, shares of Shake Shack, a rapidly growing burger chain that grew out of a hot dog stand in Manhattan, shot up in price during the company’s first day of public trading. The restaurant chain has just 63 locations, but it’s now worth an estimated $1.6 billion.
The problems facing McDonald’s are obvious: Because it is so well known and so dominant, it has a hard time changing in response to market demand. Its success gives it access to tremendous resources, but its all-things-to-everyone approach, and the inevitable bloat that tends to accrue at any successful legacy business, leaves it vulnerable to new players that can do fewer things better — like, for example, Shake Shack.
It’s hard to imagine the fast food market without McDonald’s, but it was a very different world then. Here’s Mark Knopfler’s tribute-of-sorts to Ray Kroc, who turned the McDonald’s brand into one of the world’s most well-known and profitable companies:
i’m going to san bernardino ring-a-ding-ding
milkshake mixers that’s my thing, now
these guys bought a heap of my stuff
and i gotta see a good thing sure enough, now
or my name’s not kroc that’s kroc with a ‘k’
like ‘crocodile’ but not spelled that way, yeah
it’s dog eat dog
rat eat rat
kroc-style
boom, like that
the folks line up all down the street
and i’m seeing this girl devour her meat, now
and then i get it, wham as clear as day
my pulse begins to hammer and i hear a voice say:
these boys have got this down
oughtta be a one of these in every town
these boys have got the touch
it’s clean as a whistle and it don’t cost much
wham, bam you don’t wait long
shake, fries patty, you’re gone
and how about that friendly name?
heck, every little thing oughtta stay the same
or my name’s not kroc that’s kroc with a ‘k’
like ‘crocodile’ but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that
you gentlemen ought to expand
you’re going to need a helping hand, now
so, gentlemen well, what about me?
we’ll make a little business history, now
or my name’s not kroc call me ray
like ‘crocodile’ but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that
well we build it up and i buy ’em out
but, man they made me grind it out, now
they open up a new place flipping meat
so i do, too right across the street
i got the name i need the town
they sell up in the end and it all shuts down
sometimes you gotta be an s.o.b.
you wanna make a dream reality
competition? send ’em south
if they’re gonna drown put a hose in their mouth
do not pass ‘go’ go straight to hell
i smell that meat hook smell
or my name’s not kroc that’s kroc with a ‘k’
like ‘crocodile’ but not spelled that way, now
it’s dog eat dog
rat eat rat
kroc-style
boom, like that
