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

Author

Listed:
  • Sault, Joanne

    (Department of Economics, University of Warwick)

  • Toivanen, Otto

    (Helsinki School of Economics)

  • Waterson, Michael

    (Department of Economics, University of Warwick)

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.

Suggested Citation

  • Sault, Joanne & Toivanen, Otto & Waterson, Michael, 2002. "Fast Food - the early years : Geography and the growth of a chain-store in the UK," The Warwick Economics Research Paper Series (TWERPS) 655, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:655
    as

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    References listed on IDEAS

    as
    1. Richard W. Blundell & James L. Powell, 2004. "Endogeneity in Semiparametric Binary Response Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 655-679.
    2. Otto Toivanen & Michael Waterson, 2005. "Market Structure and Entry: Where's the Beef?," RAND Journal of Economics, The RAND Corporation, vol. 36(3), pages 680-699, Autumn.
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    10. 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, Specia), pages 833-882.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Retail Chain Expansion: The Early Years of McDonalds in Great Britain
      by bbatiz in NEP-HIS blog on 2011-09-01 19:28:07

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    Cited by:

    1. Sault, Joanne & Toivanen, Otto & Waterson, Michael, 2003. "Market Structure and Entry in Fast Food," Economic Research Papers 269474, University of Warwick - Department of Economics.
    2. Dolton, Peter J. & Tafesse, Wiktoria, 2022. "Childhood obesity, is fast food exposure a factor?," Economics & Human Biology, Elsevier, vol. 46(C).

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    More about this item

    Keywords

    Fast food ; Diffusion ; Regional economic activity ; Entry;
    All these keywords.

    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, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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