Mc Donalds in Greece

Introduction

The purpose of this paper is to inform you about the presence and Goody's and McDonald's industries in the Greek market. Therefore, we will start with some details upon the characteristics of the Greek fast-food market and we will continue with the analysis of the two companies. Finally, we will examine the existence of any potential competitor and we will conclude with the future prospect of each company.

The Greek fast-food market

In a 2007 research conducted by Kaitanzidis, results showed that more and more Greeks were starting to consume fast-food either it was delivered to their homes or at the fast-food restaurant. Especially young Greeks (15-34 age), preferred to it fast food at a 85-90%. The same stands for both the ages between 35-44 at a 66% and the ages between 45-54 at a 56%. Only people above these ages preferred to eat home. As a result, we can understand that fast-food industry is developing within the Greek market. Indeed, from 1997-2007 the industry was developing at an annual rate of 15.6% and has started to decline from 2007 mostly due to the restricted Greek income. Goody's and McDonald's are a part of the fourth subsector, fast-food subsector, of the food industry in Greece. The other three are the traditional Greek subsector, the pizzas subsector and the and fast-food subsector for companies that sell sandwiches and pies (Panigirakis et al., 2005). The fast-food subsector holds the highest amount in the number of franchise stores (37.4%) with the sandwich and pizzas sectors coming second and third with 28.5% and 24.1%, respectively. Finally, the first subsector accounts for only 8.4% of the franchise stores in the industry. As a result, and after taking into account that crisis has turned people towards fast-food in Greece (Kathimerini web site), we understand that who holds the bigger part of the fast-food subsector is of great value and importance.

Below, we will discuss the two biggest firms in this subsector that are...