In the 1920s and 1930s, many well-known chain restaurants—such as Horn & Hardart , Howard Johnson’s , A&W Root Beer , Bob’s Big Boy , Dairy Queen , White Castle , and Marriott Hot Shoppes —emerged in urban areas as walk-up lunch rooms, cafeterias, and hamburger stands. These early chains primarily served urban working populations. As suburban development and automobile travel increased by the mid-20th century, many chains adapted their layouts to include parking and drive-in service. Some new chains also appeared during this period, explicitly targeting automobile-based customers. These changes in design and audience contributed to a shift in how dining out was perceived, turning it from a work-related necessity into a form of entertainment. In the 1950s, chain restaurant growth accelerated with the widespread use of the franchise model, originally developed by Howard Johnson in the 1930s. This model was successfully adopted by companies such as McDonald’s , Kentucky Fried Chicken , Domino’s , Long John Silver’s , Burger King , and Sonic . Unlike earlier centralized corporate chains, the franchise system allowed local owners to operate individual restaurants under contracts that standardized building design, menus, and service style. These agreements emphasized consistent quality and helped overcome the challenges of managing geographically dispersed locations.From the 1950s to the mid-1980s, the number of restaurants in the United States increased substantially. There were 127,000 restaurants in 1954 and 135,000 in 1967; by the mid-1980s, that number had more than doubled. By 1983, fast-food restaurants accounted for 40 percent of all U.S. restaurants, and Americans ate out an average of 3 to 4 times per week, spending 40 percent of their food budgets on meals prepared outside the home. Breakfast-focused chains such as IHOP , Perkins , Waffle House , and Dunkin’ Donuts began to expand in the 1960s. These initially catered to commuters and shift workers but soon attracted broader audiences, including families and teenagers seeking leisure activities. Later, traditional lunch-focused fast-food chains such as Hardee’s and McDonald’s added breakfast offerings in the 1980s, followed by coffee chains like Starbucks in the 1990s. These additions helped establish breakfast as a routine meal eaten outside the home. The following chart shows how the share of total food spending on food away from home (FAFH) changed relative to food at home from 1987 to 2017. https://gmatclub.com/gmat-focus-tests/resources/import/img/I06-08.pngWhile restaurants are the largest source of food away from home (FAFH), Americans also purchase food from other venues, including sporting events, entertainment sites, hotels and motels, schools and colleges, retail stores, and vending machines. These outlets offer foods similar in type and nutrition to restaurant meals, but food service is not their primary purpose. In these cases, food may be purchased either to satisfy hunger or as a convenience while engaging in another activity. From 1987 to 2017, only two FAFH sectors increased their share of total FAFH expenditures: restaurants and recreational places (such as movie theaters and sports venues). Recreational places rose from 2.1% of FAFH in 1987 to 3.6% in 2017. All other non-restaurant sectors—hotels and motels, schools and colleges, retail stores, and vending machines—declined as a share of total FAFH spending during this period.

Official Solution: Breakfast-focused chains that began expanding in the 1960s later attracted a broader range of customers. • Tab 2 states that breakfast-focused chains began expanding in the 1960s and initially served commuters and shift workers. It also states that these chains soon attracted broader audiences, including families and teenagers seeking leisure activities. Therefore, this statement can be inferred. By the mid-1980s, there were more than 270,000 restaurants in the United States. • Tab 2 states that there were 135,000 restaurants in 1967 and that this number had more than doubled by the mid-1980s. Since twice 135,000 is 270,000, there were more than 270,000 restaurants by the mid-1980s. Therefore, this statement can be inferred. Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics. • Tab 1 explains that franchise owners operate under contracts that specify common building design, food, and delivery theme. These contracts emphasize consistency and quality. From this, it can be reasonably inferred that franchisees are required to follow certain standards for both service and visual appearance. Therefore, this statement can be inferred. Correct answer: Breakfast-focused chains that began expanding in the 1960s later attracted a broader range of customers. "Yes" By the mid-1980s, there were more than 270,000 restaurants in the United States. "Yes" Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics. "Yes"

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Yes	No
		Breakfast-focused chains that began expanding in the 1960s later attracted a broader range of customers.
		By the mid-1980s, there were more than 270,000 restaurants in the United States.
		Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics.