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Fast Food - the early years: Geography and the growth of a chain-store in the UK

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  • Waterson, Michael

    (University of Warwick)

  • Joanne Sault
  • Otto Toivanen

Abstract

We examine the development of UK outlets of a major fast food chain, from inauguration in 1974 until 1990, after which industry structure changed somewhat. The chain effectively introduced the counter-service burger concept. Locational spread across local authority district markets is explained by the characteristics of the areas where the outlets are sited. Of special interest is the effect of scale economies, measured by outlet numbers in neighboring districts. Both first and second entry are examined. We find that the hazard of first entry is positively influenced by market size and population density and negatively by distance from company headquarters.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 219.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:219

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Web page: http://www.res.org.uk/society/annualconf.asp
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Keywords: fast food; diffusion; regional economic activity; entry;

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  1. Nancy L. Rose & Paul L. Joskow, 1990. "The Diffusion of New Technologies: Evidence from the Electric Utility Industry," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 354-373, Autumn.
  2. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
  3. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  4. Toivanen, O. & Waterson, M., 2001. "Market Structure and Entry: Where's the Beef?," The Warwick Economics Research Paper Series (TWERPS) 593, University of Warwick, Department of Economics.
  5. Richard W. Blundell & James L. Powell, 2004. "Endogeneity in Semiparametric Binary Response Models," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 655-679.
  6. Hannan, Timothy H & McDowell, John M, 1984. "Market Concentration and the Diffusion of New Technology in the Banking Industry," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 686-91, November.
  7. Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
  8. Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter.
  9. Timothy F. Bresnahan & Peter C. Reiss, 1987. "Do Entry Conditions Vary across Markets?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 833-882.
  10. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
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Blog mentions

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  1. Retail Chain Expansion: The Early Years of McDonalds in Great Britain
    by bbatiz in NEP-HIS blog on 2011-09-01 14:28:07
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Cited by:
  1. Sault, Joanne & Toivanen, Otto & Waterson, Michael, 2003. "Market Structure And Entry In Fast Food," The Warwick Economics Research Paper Series (TWERPS) 661, University of Warwick, Department of Economics.

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