I06-11

Question

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.

Bunuel · Answer

Official Solution:

In the 1960s, chain restaurants began expanding their meal offerings and appealing to a broader range of customers. 
 
• Tab 2 states that breakfast food chains began to proliferate in the 1960s and initially served commuters and shift workers. It also states that these chains soon expanded their appeal to include families and teenagers seeking leisure activities. This supports the conclusion that chain restaurants began expanding both their meal offerings and their customer base during that period. Therefore, this statement can be inferred.
 
 By the mid-1980s, there were more than 100,000 fast food restaurants in the United States 
 
• Tab 2 states that the total number of U.S. restaurants more than doubled from 135,000 in 1967 to over 270,000 by the mid-1980s, and that fast-food restaurants accounted for 40 percent of all restaurants by 1983. Forty percent of over 270,000 is more than 100,000, so the statement is supported.
 
 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:

In the 1960s, chain restaurants began expanding their meal offerings and appealing to a broader range of customers.
  "Yes"

By the mid-1980s, there were more than 100,000 fast food restaurants in the United States.  "Yes"

Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics.  "Yes"

Bunuel · Answer

This MSR question and its solutions have been completely revised and improved.

sdta · Answer

I don’t quite agree with the solution. Tab 2 states that breakfast-focused chains began expanding, but it didn't mention if any restaurant chain expanded their own meal offerings. So the first statement should be NO.

Bunuel · Answer

Your overlooks key parts of Tab 2. It states that breakfast-focused chains in the 1960s “soon attracted broader audiences, including families and teenagers,” showing expansion of appeal. It also mentions that lunch-focused chains like McDonald’s later “ added breakfast offerings ,” and that “these additions helped establish breakfast as a routine meal eaten outside the home.” This supports the inference that chains began expanding both their offerings and customer base starting in the 1960s.

sdta · Answer

Yup, got it. Thanks.

ccarson · Answer

Maybe I'm misreading something but I disagree with this. The first part is correct but I thought this was a trick question since it added "meal offerings" into the mix. Traditionally lunch-focused-fast-food chains only started expanding in the 1980s according to the passage. Since the focus of the question is the 1960s, I feel that the "meal offerings" aren't included then. If it were to also include the 1980s or say "In the 1960s, chain restaurants appealed to a broader range of customers and a couple decades later began expanding expanding their meal offerings," that would be a Yes.

Bunuel · Answer

You're focusing too narrowly on lunch-focused chains. The question refers to chain restaurants, and breakfast-focused chains like IHOP and Waffle House began expanding in the 1960s. That counts as expanding meal offerings, since breakfast outside the home wasn't yet common. So both parts of the statement are supported in the 1960s.

ccarson · Answer

I think I understand now, thanks!
I was looking at it as "expanding" being more about location/marketing/branding and that's what led to the attraction of broader audiences.

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