10 Biggest Fast-Food Chains in the World

Published on April 14, 2021 at 8:43 am by Jose Karlo Mari Tottoc in Lists, News

In this article we will take a look at the 10 biggest fast-food chains in the world.

There is no doubt in the fact that the fast-food industry is growing at a rapid pace, gaining popularity among the general masses. The numbers confirm this popularity as this industry alone generates over $570 billion and is expected to reach $931.7 billion by 2027. The fast-food sector is constantly evolving in order to keep up with the changing trends of the world. Now almost all the companies have become technologically advanced to satisfy the needs of this fast-paced life. Some chains are coming up with a specific ‘healthy’ menu for either their health-conscious audience or to raise health awareness amongst the other group. Fast-food options are very convenient for the audience today because they are inexpensive, quick, easy to get, and absolutely tasty. In the U.S. only, 50 million customers eat at a fast-food restaurant daily.

The restaurants today deviate from the mainstream menu and try to expand on their products by focusing on their target audience. The concepts of self-ordering, developed delivery, online orders, expanded vegan options are somewhat new to the fast-food industry. Due to these shifting trends, digital sales increased by 23% in 2020. The top fast food companies are basically chain operations functioning worldwide and together constituting a billion-dollar industry.

Let’s start our list of 10 biggest fast-food chains in the world. This list is according to the number of outlets across the globe.

Biggest Fast-Food Chains in the World

10. Taco Bell, Owned by: Yum! Brands, Inc. (NYSE: YUM)

Glen Bell, an American entrepreneur, founded Taco Bell in 1962 in San Bernardino, California. Bell’s idea was to bring different and culture-centric food to the market, distinct from its rival companies. The hard-shell tacos were different from the mainstream hamburgers and resulted in the quick expansion of the restaurant. The menu of Taco Bell is inspired by Mexican culture and includes nachos, tacos, quesadillas, and burritos on its menu. The restaurant is the subsidiary of Yum! Brands. Taco Bell’s target audience is aged between 18-34 who love to munch on a snack late at night. It is also keeping up with the rising health awareness amongst this group by introducing healthy food options with balanced proteins, carbohydrates, and fats. These include Power Menu Bowl, Bean Burrito, Chicken Quesadillas, etc. Taco Bell remains America’s favorite as it serves around 40 million customers each week there.

In 2020, Taco Bell announced the launch of its Go Mobile restaurants built on a relatively smaller footprint of 1,325 square feet than the average 2,500 square feet. This new model also has a dual drive-thru to accelerate the order process for the Taco Bell app users. The customers can receive their orders through the contactless curbside pickup, a model very relevant in today’s socially distanced world. In Q4 of 2020, Taco Bell reported a 1% growth in same-store sales. However, their signature breakfast menu fell from 6% to 4% in the last quarter as an outset of the pandemic. As of 2020, there are over 7,000 Taco Bell restaurants located in 31 different countries globally.

9. Baskin Robbins, Owned by: Inspire Brands

Baskin Robbins is the largest and oldest ice cream chain in the world operating since 1945. Founded by Burt Baskin and Irv Robbins in Glendale, California, the chain derives its name from its founding fathers. The company widely grabbed its customers’ attention through its apothegm of ‘31 flavors’, which denoted the idea of a different flavor for every day of the month. Now Baskin Robbins offers over 1,300 flavors to its customers around the globe. The top-selling amongst these flavors are Mint Chocolate, Vanilla, Chocolate, Pralines n’ Cream, and Chocolate Chip. The founders believed that the customers should be able to taste as many sample flavors for free as they want, before they found their favorite, which popularized the iconic pink spoon. Moreover, the chain also offers some really different flavors like azuki bean, garlic, jalapeno, and dill pickle, which was specifically made for expectant mothers.

Since its inception, Baskin Robbins has worked with the franchise model, and even today, 100% of its outlets are franchise-owned. Through this franchise plan, the company was able to control costs and generate more revenue by royalty fees and income. Their mobile app offers a lot to its customers including special offers, order tracking, and even free scoop on downloading the app. Due to the pandemic, Baskin Robbins was able to increase its digital sales from 10% in 2019 to 35% in 2020. It has around 7,800 outlets in more than 50 countries.

8. Dunkin’ Donuts, Owned by: Inspire Brands

After Starbucks, Dunkin’ Donuts is the most popular coffee shop in the U.S. It was founded in 1948 by the name of ‘Open Kettle’ in Quincy, Massachusetts, by William Rosenberg. The name was later changed to Dunkin’ Donuts in 1950. Dunkin’ Donuts sells around 2.9 billion doughnuts each year globally, but 60% of its sales come from beverages. Though based in the U.S., the chain caters to the taste of local cuisine for its customers belonging to different countries. For example, the Stoopwaffle doughnut in the Netherlands brings the taste of Dutch pastry, and the doughnut topped with shredded pork appeals to the local customers in China. Dunkin’ Donuts is also an inexpensive option with a larger serving size when compared to Starbucks, two vital factors for regular coffee buyers. The price of medium-sized coffee is 16 cents cheaper than that of Starbucks. Moreover, every item on the menu is customizable, based on the customers’ preference of bread, flavors, etc.

In 2018, Dunkin’ Donuts announced removing artificial dyes from its products, replacing them with fresh juices and other extracts. The chain also offers an extensive list of vegan food items, with small traces of eggs and milk, to serve the health-conscious audience. The list includes hash browns, brown sugar oatmeal, cinnamon raisin bagel, plain bagel, and a wide range of beverages. Dunkin’ Donuts has a 100% franchised model and generates revenues by earning royalties. Out of 11,300 stores worldwide, the U.S. has over 8,500 outlets, which shows its over-reliance on the U.S. market.

7. Domino’s Pizza, Inc. (NYSE: DPZ)

Domino’s is another big name in the pizza world and is a tough competitor of Pizza Hut. It was founded in 1960 in Ypsilanti, Michigan, just two years after Pizza Hut, by two brothers James and Tom Monaghan. Originally known as Dominick, Domino’s widely grabbed the attention of pizza lovers and expanded within a few years. The pizza giant had over 200 franchises in the U.S. by the late seventies. In 1983, Domino’s opened their first branch outside of the U.S in Winnipeg, Canada. For a while, Domino’s was only selling two sizes of pizza and added breadsticks and chicken wings in 1990 on their menu. As of now, Domino’s sells an average of 3 million pizzas per day worldwide. Domino’s is one of the first companies to utilize the concept of ‘cloud kitchens’ i-e., the delivery-centric business model instead of the dine-in stores. Through this plan, Domino’s was able to cut the real estate cost and generated more income than its competitors, even during the pandemic.

Domino’s journey of unique marketing strategies began in the late 2000s when the company announced the launch of Pizza Tracker, which enabled the customer to track their order’s progress. They were also pioneers of mobile ordering in which the customers could order their food through web-enabled cell phones. These strategies helped them develop a solid digital brand and provided a platform for accessible communication with the customers. Domino’s generates revenues in several ways, which contribute to its exponential growth. Operating with the strong franchise model, it charges royalties to its franchisees. It sells dough and toppings to franchisees, especially in the U.S. and Canada, and generates income. Moreover, Domino’s makes money on the product, not on delivery, and charges just a small percentage of the average order value. As of the Q4 of 2020, there are around 17,600 outlets of Domino’s in more than 90 countries. Domino’s generated a revenue of $1.3 billion in Q4 of 2020 and also exceeded $8 billion in retail sales in the U.S for the first time. Its global retail sales in 2020 amounted to $16.1 billion, a considerable jump from $14.3 billion in 2019.

6. Burger King, Owned by: Restaurant Brands International (NYSE:QSR)

Founded as Insta-Burger King in 1953, this famous hamburger chain opened its first branch in Jacksonville, Florida, United States. The founding fathers, Keith Cramer and Matthew Burns, were initially inspired by McDonald’s Corporation (NYSE: MCD)’s and looked for a similar concept. McLamore and Edgerton, the Florida franchisees, later purchased it and changed the name to ‘Burger King.’ They sold their first franchise in 1959 with the plan to expand the company further. In 1963, Puerto Rico got the first Burger King outlet outside of the U.S. Burger King’s signature whopping burger was the first of its kind when various hamburger companies were only selling small-sized burgers. The other menu items include different types of burgers, fish, sandwiches, nuggets, fries, and hot dogs.

Burger King has always been known for its unique marketing strategies. Back in 2015, the chain came up with black buns dyed with bamboo charcoal in Japan. They used this strategy to offset the company’s limited advertisement budget in Japan and was well-received by people. Recently, the launch of their $1 Your Way menu was announced by depositing $1 in select customers’ Venmo accounts. This stunt was to encourage the customers to try out their new $1 menu. Burger King generates revenues through three main sources; franchises, leased properties, and company-operated restaurants. The highest profit earning source remained the franchising as they constitute around 90% of Burger King’s outlets. However, in 2020, the company’s systemwide sales fell 11% to $20.038 billion from $22.921 billion in 2019. As of 2020, Burger King has 17,800 stores in over 100 countries.

5. Pizza Hut, Owned by: Yum! Brands, Inc. (NYSE: YUM)

Pizza Hut first opened its doors in Wichita, Kansas, in 1958. Founded by two student brothers, Dan and Frank Carney, the chain started with just $600 and is now a multi-billion dollar company. Pizza Hut is mainly a pizza shop and includes kinds of pasta, wings, breadsticks, and different desserts on its menu. Recently, Pizza Hut has also partnered with Beyond Meat Inc (NASDAQ: BYND) to cater to the rising health trends worldwide. This new collaboration aims to provide plant-based meat pizzas to its customers. Pizza Hut is the subsidiary of Yum! Brands, which is the largest restaurant company in the world and the parent company of KFC and Taco Bell as well. Like other biggest food chains, Pizza Hut also works on a franchise model, and the franchisees work closely with the consultants from Yum! Brands. There is a specific training program for the franchisees before opening up the new restaurant.

Though Pizza Hut has opened branches in over 100 countries, including Armenia, Iceland, and Russia, the U.S. remains the largest Pizza Hut market, with over 7,000 restaurants. Pizza Hut is also the largest buyer of cheese globally and accounts for 3% of U.S. cheese production. The company uses around 300 million pounds of cheese annually. In 1994, Pizza Hut was one of the first companies to develop online ordering, the service used by almost all restaurants today. The Hut has also delivered pies into space with the help of the resupply rocket; the action caused them over a million dollars. Though the company had to 1,745 of its branches due to the pandemic in 2020, it plans to open in over 125 locations over three years. As of 2021, Pizza Hut has over 18,000 outlets spread over 100 countries. Despite this closure of restaurants in 2020, Pizza Hut increased its same-store sales in the U.S division to 8% in Q4, the highest since 2010, which was 10%.

4. KFC, Owned by: Yum! Brands, Inc. (NYSE: YUM)

KFC was founded in 1952 by Colonel Sanders and Pete Harmen in Salt Lake City, Utah. KFC is one of the oldest fast-food chains in the world. What started as a chicken shop is now famous for its rare and exclusive fried chicken worldwide. KFC’s marketing plan and strategy involve the innovative idea of catering to the countries’ local taste where it plans to open up its outlets.

KFC has around 6,600 outlets in China because it offers a distinctive menu which is not part of any of other KFC’s outlet in the world. Along with the signature fried chicken, KFC outlets in China also deal with China-specific options like egg tarts, Dragon Twister, and rice porridge. Not only that, but KFC in China has also opened up the KPRO, which caters to the country’s health-conscious audience. The menu of KPRO only includes salads, sandwiches, and fresh juices. This unconventional approach used by KFC made it dominant over the fast-food industry in China. KFC has over 24,104 outlets worldwide and has generated $27.9 billion in 2020 compared to $26.2 billion in 2019.

3. Starbucks Corporation (NASDAQ: SBUX)

Starbucks cannot be technically placed in a fast-food list but is officially recognized as one of the world’s fastest-growing coffeehouse chains. It was founded in 1971 by Jerry Baldwin, Gordon Bowker, and Zev Siegl, in Pike Place Market, Seattle. The initial business plan of Starbucks involved selling high-quality coffee beans. Now, Starbucks deals with hot and cold beverages and coffee in over 32,900 locations worldwide.

Starbucks’ unique marketing strategy of personalized name coffee mugs has widely contributed to its popularity among the people. This admiration can be assured by the fact that Starbucks uses around 2.3 billion paper cups every year. Starbucks has a wide range of menu with over 87,000 drink combinations. Starbucks’ revenue breakdown shows that the beverages of the chain are responsible for generating more revenue compared to the other items on the menu list. In 2020, the beverages alone generated around $14.34 billion, and the food items amounted to $3.8 billion. However, Starbucks was hit hard by the pandemic and suffered a loss in revenue, resulting in an 11.27% drop in sales growth. The year 2020 shows a fall of revenue to $23.5 billion, down from $26.5 billion in 2019.

2. McDonald’s Corporation (NYSE: MCD)

McDonald’s was founded by two brothers, Richard and Maurice McDonald, in 1940, making it one of the world’s oldest fast-food chains. The brothers started the restaurant with a simple nine-items menu. McDonald’s very first menu was barbecue-themed and changed over the course of years. Today, the most favorite products on their menu list are Egg McMuffin, Baked Apple Pie, French Fries, Happy Meal, and their signature Big Mac. The popularity of McDonald’s can be seen from the fact that it serves around 68 million customers daily and sells approximately 4,500 hamburgers every single minute globally. What contributes to the popularity of McDonald’s is its consistency, innovation, and skills that they impart to the employees.

McDonald’s can be taken as the most profitable fast-food chain globally, with a net worth of $170 billion. It generated around $19.2 billion in 2020, which decreased from $21.8 billion in 2019. The rapid expansion of restaurants across the world stands on its model of franchising. McDonald’s has nearly 38,695 outlets worldwide, of which 93% are franchise-operated.

1. Subway, Owned by: Franchise World Headquarters, Inc.

Subway is one of the most famous fast-food chains in the world. It opened its first branch in the USA in 1965, and the number has now swollen to 41,600 worldwide. Formerly known as ‘Pete’s Super Submarine,’ it sold salads and submarine sandwiches. Subway can be taken as the first of its kind fast-food chain that matches the pace of today’s health-conscious audience. It has become the ultimate favorite of customers globally due to its diet-focused menu. Subway’s unique marketing has always contributed to its revenues. In 2000, Subway launched a campaign with Jared Fogle, who claimed to have reduced 200 pounds by eating Subway. The campaign was a hit and the sales grew by 20% after the first commercial aired.

Subway is flexible in terms of location compared to other fast-food chains because it relies on reheating the precooked food and does not require a full-fledged kitchen. According to the reports, Subway collects 8% of revenue from each franchise without owning a single outlet. Due to this explosive growth, Subway generated a slightly increased revenue of around $10.4 billion in 2020 compared to $10.2 billion in 2019.

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