Learning and location

In this paper we study whether learning from rivals affects within-market location decisions between competing firms. We show it does, using detailed locational data from two leading hamburger chains in the UK. Using four different tests, we demonstrate that alternative explanations - pre-emption and product differentiation - have less bite than between firm learning

Fast food - the early years: geography and the growth of a chain-store in the UK

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

Market structure and entry in fast food

One of the phenomena of the twentieth century, chainstores, are remarkably little studied by economists. Amongst open questions are the following: What factors influence the pattern of their openings? Does the spread of one constrain others having broadly the same retail offer? Do they locate close to competitors? To answer such questions, one must examine a time path of development- put simply one must observe actual entry. This is precisely what is done in a series of papers (Toivanen and Waterson, 2000; 2001; Sault, Toivanen and Waterson -hereafter STW, 2002; forthcoming) we are working on concerning the spread of restaurant outlets in the UK. This paper sketches the main elements of our program, then examines a particular issue, the micro-geography of location, in detail