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/forum/download/file.php?id=89498While 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. https://gmatclub.com/forum/download/file.php?id=89498 GMAT-Club-Forum-mg98b5dn.png

Official Solution: Early chain restaurants in the first half of the 20th century were largely focused on serving working populations in city settings. • Tab 1 states that many early chain restaurants, including walk-up lunch rooms, cafeterias, and hamburger stands, emerged in urban areas in the 1920s and 1930s and primarily served working populations. Supported. New franchised restaurant chains were regularly established throughout the 20th century. • Tab 1 discusses the development of the franchise model only starting in the 1930s and its expansion only beginning in the 1950s. Thus, there is no information provided to support the claim that new franchised chains were regularly established throughout the 20th century. Not supported. Most restaurant franchise chains in the 20th century were created specifically to serve automobile-based customers. • Tab 1 states that many existing chains adapted their layouts to include parking and drive-in service, and that some new chains were created with automobile-based customers in mind. However, it does not state or imply that most franchise chains had this focus. Since the statement overgeneralizes from limited information, it is not supported. Correct answer: Early chain restaurants in the first half of the 20th century were largely focused on serving working populations in city settings. "Supported" New franchised restaurant chains were regularly established throughout the 20th century. "Not supported" Most restaurant franchise chains in the 20th century were created specifically to serve automobile-based customers. "Not supported"

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"

Set 1 Statement Selection Rationale Early chain restaurants in the first half of the 20th century were largely focused on serving working populations in city settings. Supported Tab 1 explicitly states that early chains in the 1920s and 1930s (the first half of the 20th century) emerged in urban areas and "primarily served urban working populations." New franchised restaurant chains were regularly established throughout the 20th century. Not supported Tab 1 notes franchising was developed in the 1930s and accelerated in the 1950s, but there is no evidence that franchised chains were regularly established throughout the entire century (e.g., prior to the 1930s). Most restaurant franchise chains in the 20th century were created specifically to serve automobile-based customers. Not supported Tab 1 mentions that only "some" new chains specifically targeted automobile-based customers, not "most." Set 2 Statement Selection Rationale Breakfast-focused chains that began expanding in the 1960s later attracted a broader range of customers. Yes Tab 2 states that breakfast chains expanding in the 1960s initially catered to commuters/shift workers but "soon attracted broader audiences, including families and teenagers." By the mid-1980s, there were more than 270,000 restaurants in the United States. Yes Tab 2 states there were 135,000 restaurants in 1967, and by the mid-1980s, "that number had more than doubled." Doubling 135,000 yields 270,000, so "more than doubled" means greater than 270,000. Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics. Yes Tab 1 notes that franchise contracts "standardized building design, menus, and service style." Standardized building design relates to aesthetics, and standardized service style relates to service. Set 3 Statement Selection Rationale Eating away from home increasingly came to be viewed as a recreational activity. Supported Tab 1 mentions dining out turned from a "necessity into a form of entertainment," and Tab 2 mentions families/teenagers "seeking leisure activities." Some restaurant chains expanded their appeal beyond their original customer groups. Supported Tab 2 explicitly states breakfast chains initially served commuters and shift workers but expanded to attract "broader audiences." Vending machines increased their share of total FAFH expenditures between 1987 and 2017. Not Supported Tab 3 explicitly states that vending machines "declined as a share of total FAFH spending" between 1987 and 2017.

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For each of the following statements, select Supported if it can be reasonably inferred from the information provided. Otherwise, select Not Supported.

Supported	Not Supported
		Eating away from home increasingly came to be viewed as a recreational activity.
		Some restaurant chains expanded their appeal beyond their original customer groups.
		Vending machines increased their share of total FAFH expenditures between 1987 and 2017.

Eating away from home increasingly came to be viewed as a recreational activity.

• Tab 1 states that changes in restaurant 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. Therefore, this statement is supported. Supported.

Some restaurant chains expanded their appeal beyond their original customer groups.

• Tab 2 states that breakfast-focused chains initially catered to commuters and shift workers but later attracted broader audiences, including families and teenagers seeking leisure activities. Therefore, this statement is supported. Supported.

Vending machines increased their share of total FAFH expenditures between 1987 and 2017.

• Tab 3 states that vending machines were among the non-restaurant sectors whose share of total FAFH expenditures declined between 1987 and 2017. Therefore, this statement is not supported. Not Supported.

Correct answer:

Eating away from home increasingly came to be viewed as a recreational activity. "Supported"

Some restaurant chains expanded their appeal beyond their original customer groups. "Supported"

Vending machines increased their share of total FAFH expenditures between 1987 and 2017. "Not Supported"

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Set 1

Statement	Selection	Rationale
Early chain restaurants in the first half of the 20th century were largely focused on serving working populations in city settings.	Supported	Tab 1 explicitly states that early chains in the 1920s and 1930s (the first half of the 20th century) emerged in urban areas and "primarily served urban working populations."
New franchised restaurant chains were regularly established throughout the 20th century.	Not supported	Tab 1 notes franchising was developed in the 1930s and accelerated in the 1950s, but there is no evidence that franchised chains were regularly established throughout the entire century (e.g., prior to the 1930s).
Most restaurant franchise chains in the 20th century were created specifically to serve automobile-based customers.	Not supported	Tab 1 mentions that only "some" new chains specifically targeted automobile-based customers, not "most."

Set 2

Statement	Selection	Rationale
Breakfast-focused chains that began expanding in the 1960s later attracted a broader range of customers.	Yes	Tab 2 states that breakfast chains expanding in the 1960s initially catered to commuters/shift workers but "soon attracted broader audiences, including families and teenagers."
By the mid-1980s, there were more than 270,000 restaurants in the United States.	Yes	Tab 2 states there were 135,000 restaurants in 1967, and by the mid-1980s, "that number had more than doubled." Doubling 135,000 yields 270,000, so "more than doubled" means greater than 270,000.
Restaurant franchisees are required to conform to certain specifications regarding service and aesthetics.	Yes	Tab 1 notes that franchise contracts "standardized building design, menus, and service style." Standardized building design relates to aesthetics, and standardized service style relates to service.

Set 3

Statement	Selection	Rationale
Eating away from home increasingly came to be viewed as a recreational activity.	Supported	Tab 1 mentions dining out turned from a "necessity into a form of entertainment," and Tab 2 mentions families/teenagers "seeking leisure activities."
Some restaurant chains expanded their appeal beyond their original customer groups.	Supported	Tab 2 explicitly states breakfast chains initially served commuters and shift workers but expanded to attract "broader audiences."
Vending machines increased their share of total FAFH expenditures between 1987 and 2017.	Not Supported	Tab 3 explicitly states that vending machines "declined as a share of total FAFH spending" between 1987 and 2017.