Defense management better guidance needed in selecting operating methods for namebrand, fastfood restaurants.

Book excerpt: The military exchange services operate a wide range of retail activities such as department stores, florist shops, barber and beauty shops, gasoline stations, and restaurants. Profits from these activities provide funds for the Department of Defense s (DOD) morale, welfare, and recreation programs. In recent years, the exchange services annual sales exceeded $9 billion in fiscal year 1999 about $734 million involved food operations. About 50 percent of the food sales came from about 615 name-brand, fast-food restaurants (e.g., McDonald s, Burger King, Subway, and Pizza Hut) operating on military installations around the world. Name-brand, fast-food restaurant operations, particularly hamburger restaurants, are the topic of this report. It focuses on hamburger restaurants because they represent a major segment of the exchange services name-brand, fast-food sales and because exchange services contracts with two large companies, Burger King and McDonald s, will expire in 2004.