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

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Author Info
Sault, Joanne (Department of Economics, University of Warwick)
Toivanen, Otto (Helsinki School of Economics)
Waterson, Michael (Department of Economics, University of Warwick)

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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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Publisher Info
Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 655.

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Length: 25 pages
Date of creation: 2002
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Handle: RePEc:wrk:warwec:655

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Related research
Keywords: Fast food ; Diffusion ; Regional economic activity ; Entry;

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Find related papers by JEL classification:
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  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. [Downloadable!] (restricted)
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  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. [Downloadable!]
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