Quality Competition in the Fast Food Chain Industry

Have you seen burger chains, Five Guys, In-N-Out, or Shake Shack? When they open a new store in the neighborhood, young people are willing to cue for 30 min to get in while there are other traditional burger stores available only a few steps away.  

In this podcast, Sungtak Hong, Assistant Professor of Marketing at Bocconi University, talks about quality competition in the fast food chain industry in the empirical context where the traditional fast food restaurants are challenged by a set of these «hipster» chain stores. In particular, he shares the findings from a study that show how individual chain restaurants compete against other restaurants perceived to be superior in food quality using another dimension of quality, which is service quality.