Day 043 - 01 Nov 94 - Page 21

     
     1        A.  That is correct.
     2
     3   Q.   Who are your main competitors, first of all, within the
     4        quick service restaurant sector as a whole?  You mentioned
     5        categories: pizzas, chickens, Mexican take-away or Mexican
     6        fast-food.  I am coming back to burgers.  First of all, who
     7        are the chief pizza competitors?
     8        A.  That would be -- Pizza Hut, Little Caesar's and
     9        Dominoes are probably the top three.
    10
    11   Q.   And chicken?
    12        A.  Kentucky Fried Chicken.
    13
    14   Q.   Mexican?
    15        A.  Taco Bell.
    16
    17   Q.   Anybody else?
    18        A.  No.  That is the major competitor there.  There are
    19        some smaller ones, but Taco Bell is the biggest.
    20
    Q.   To what extent is local competition in particular places a
    22        factor in all of this?
    23        A.  It is a significant factor.  Almost every market has a
    24        local quick service restaurant that are only indigenous to
    25        that area of the country.
    26
    27   Q.   Are they regarded by you as competitors?
    28        A.  Surely.
    29
    30   Q.   Within the burger sector, obviously, there is McDonald's;
    31        who else?  You mentioned Wendy earlier, but who else is
    32        there?
    33        A.  On a national basis, you have Burger King, Wendy's,
    34        Hardee's, are probably the top three, other than
    35        McDonald's.
    36
    37   Q.   Hardee's is spelt H-A-R-D-E-E, is it?
    38        A.  It is H-A-R-D-E-E, I believe.
    39
    40   Q.   In order of magnitude within the burger section, can you
         give us a ranking list, please, for those four national
    42        competitors?
    43        A.  Yes.  It would be McDonald's first, Burger King second,
    44        Wendy's third, and Hardee's would be fourth.
    45
    46   Q.   Within the QSR sector as a whole, who are, so far as you
    47        are aware, in order of priority, again -- in order of
    48        magnitude -- the first four?
    49        A.  McDonald's would be first; Burger King would be second;
    50        Pizza Hut would probably be third; then you might have 
    51        Kentucky Fried Chicken; then you would have Wendy's and 
    52        Hardee's -- somewhere in that area. 
    53
    54   Q.   Your nearest rival, therefore, as I have understood it,
    55        both within the burger sector and within the QSR sector as
    56        a whole, is Burger King?
    57        A.  That is correct.
    58
    59   Q.   You may have just said it, but where do you put Wendy's in
    60        this hierarchy?