The distinctive architecture of each chain: For the use of chain architecture as “packaging” and Louis Cheskin’s advice to McDonald’s, see Thomas Hines, The Total Package: The Evolution and Secret Meanings of Boxes, Bottles, Cans, and Tubes (New York: Little, Brown, 1995), pp. 121–24.
98 “mother McDonald’s breasts”: Quoted in “Brand Iconography: The Secret to Creating Lasting Brands?” Brand Strategy, February 20, 1999.
an IFA survey claimed that 92 percent: Cited in Dan Morse and Jeffrey A. Tannenbaum, “Poll on High Success Rate for Franchises Raises Eyebrows,” Wall Street Journal, March 17, 1998. For the results of a similar, equally dubious IFA poll, see Joan Oleck, “The Numbers Game: Retail Franchise Failure Rates,” Restaurant Business, June 10, 1993.
98 38.1 percent of new franchised businesses: Cited in testimony of Dr. Timothy Bates to the Subcommittee on Commercial and Administrative Law, Judiciary Committee, U.S. House of Representatives, June 24, 1999.
According to another study: Despite the high failure rate, the study’s author, Scott A. Shane, believes that franchising is still the best way to expand a company quickly, though the financial risks are often understated. See Scott A. Shane, “Hybrid Organizational Arrangements and Their Implications for Firm Growth and Survivaclass="underline" A Study of New Franchisors,” Academy of Management Journal, February 1996.
“In short”: Testimony of Dr. Timothy Bates.
99 Ralston-Purina once terminated: See Boas and Chain, Big Mac, pp. 162–63.
100 more legal disputes with franchisees: Cited in Richard Behar, “Why Subway Is ‘The Biggest Problem in Franchising,’” Fortune, March 16, 1998.
the “worst” franchise in America: Quoted in Jennifer Lanthier, “Subway Bites,” Financial Post, November 25, 1995. For other accounts of Subway’s questionable business practices, see Barbara Marsh, “Franchise Realities: Sandwich Shop Chain Surges, but to Run One Can Take Heroic Effort,” Wall Street Journal, September 16, 1992; Jeffrey A. Tannenbaum, “Right to Retake Subway Shops Spurs Outcry,” Wall Street Journal, February 2, 1995.
“Subway is the biggest problem in franchising”: Quoted in Behar, “Subway.”
“almost as geared to selling franchises”: Lanthier, “Subway Bites.”
A top Subway executive has acknowledged: See Behar, “Subway.”
101 30 to 50 percent of Subway’s new franchisees: Cited ibid.
Coble’s bill would for the first time: For a detailed analysis of the legislation and strong criticism of its proposals, see Harold Brown, “The Proposed Federal Legislation in 1999,” New York Law Journal, January 28, 1999; Rochelle B. Spandorf, “Federal Regulating Legislation,” Franchising Business and Law Alert, November 1999.
“We are not seeking to penalize anyone”: Testimony of Howard Coble to the Subcommittee on Commercial and Administrative Law, House Judiciary Committee, June 29, 1999.
“whiny butts”: For this quote and Ireland’s views on franchise reform, see Kirk Victor, “Franchising Fracas,” National Journal, September 26, 1992; Deirdre Shesgreen, “Franchisees Seek Protection on Hill,” Legal Times, January 4, 1999.
“free enterprise contract negotiations”: Quoted in “Small Business Franchise Partnerships Feared Endangered if Federal Government Muscles In,” PR Newswire, July 1, 1999.
“Small businesses and franchising succeed”: Quoted ibid.
102 A 1981 study by the General Accounting Office: For the GAO study and the congressional investigation that prompted it, see Luxenberg, Roadside Empires, pp. 256–59.
The chain was “experimenting”: Quoted ibid., p. 258.
a recent study by the Heritage Foundation: See Scott A. Hodge, “For Big Franchisers, Money to Go: Is the SBA Dispensing Corporate Welfare?” Washington Post, November 30, 1997.
5. Why the Fries Taste Good
Food: A Culinary History (New York: Columbia University Press, 1999), edited by Jean-Louis Flandrin and Massimo Montanari, traces the cultural and technological changes in food preparation from prehistoric campfires to the kitchens at McDonald’s. A good account of the history of American food processing can be found in John M. Connor and William A. Schiek, Food Processing: An Industrial Powerhouse in Transition (New York: John Wiley & Sons, 1997). Harvey Levenstein’s Paradox of Plenty: A Social History of Eating in Modern America (New York: Oxford University Press, 1993) has a fine chapter on the implications of postwar advances in food processing. For consolidation in the food processing industry and its effects on American farmers, I learned a great deal from the following sources: Charles R. Handy and Alden C. Manchester, “Structure and Performance of the Food System Beyond the Farm Gate,” Commodities Economics Division White Paper, USDA Economic Research Service, April 1990; Alden C. Manchester, “The Transformation of U.S. Food Marketing,” in Food and Agricultural Markets: The Quiet Revolution, edited by Lyle P. Schertz and Lynn M. Daff (Washington, D.C.: National Planning Association, 1994); Concentration in Agriculture, A Report of the USDA Advisory Committee on Agricultural Concentration (Washington, D.C.: USDA Agricultural Marketing Service, June 1996); A Time to Act: Report of the USDA National Commission on Small Farms (Washington, D.C.: United States Department of Agriculture, 1998); and William Heffernan, “Consolidation in the Food and Agriculture System,” Report to the National Farmers Union, February 5, 1999. A telephone interview, extending for hours, with J. R. Simplot provided much information on the details of his life and the origins of the potato industry in Idaho. Simplot was blunt, charismatic, entertaining, and seemingly tireless. Fred Zerza, the vice president for public and government relations at the J. R. Simplot Company, helped confirm the accuracy of Simplot’s remarks. I also relied on “Origins of the J. R. Simplot Company,” J. R. Simplot Company, 1997; and James W. Davis, Aristocrat in Burlap: A History of the Potato in Idaho (Boise: Idaho Potato Commission, 1992). Paul Patterson, an extension professor of agricultural economics at the University of Idaho, graciously explained to me how potatoes are grown, processed, and sold today. Bert Moulton, at the Potato Growers of Idaho, gave me a sense of the challenges that farmers in his state must now confront. I am grateful to Ben Strand, at the Simplot Food Group, and Bud Mandeville, at Lamb Weston, for giving me tours of their french fry facilities.
The reference books on flavor technology were a pleasure to read; they reminded me of medieval texts on the black arts. Among the works I consulted were Fenaroli’s Handbook of Flavor Ingredients, vol. 2 (Ann Arbor, Mich.: CRC Press, 1995); Henry B. Heath, Source Book of Flavors (Westport, Conn.: Avi Publishing, 1981); Martin S. Peterson and Arnold H. Johnson, Encyclopedia of Food Science (Westport, Conn.: Avi Publishing, 1978); Y. H. Hui, Encyclopedia of Food Science and Technology, vol. 2 (New York: John Wiley & Sons, 1992); Carl W. Hall, A. W. Farrall, and A. L. Rippen, Encyclopedia of Food Engineering (Westport, Conn.: Avi Publishing, 1986); Flavor Science: Sensible Principles and Techniques, edited by Terry E. Acree and Roy Teranishi (Washington, D.C.: American Chemical Scoiety, 1993); Biotechnology for Improved Foods and Flavors, edited by Gary R. Takeoka, Roy Teranishi, Patrick J. Williams, and Akio Kobayashi (Washington, D.C.: American Chemical Society, 1995); Flavor Analysis: Developments in Isolation and Characterization, edited by Cynthia J. Mussinan and Michael J. Novello (Washington, D.C.: American Chemical Society, 1998). I found many useful articles on the flavor industry in journals such as Food Product Design, Food Engineering, Food Processing, Food Manufacture, Chemistry and Industry, Chemical Market Reporter, and Soap-Cosmetics-Chemical Specialties (now published as Soap & Cosmetics). A good overview of the flavor business can be found in Industry and Trade Summary: Flavor and Fragrance Materials (Washington, D.C.: U.S. International Trade Commission, USITC Publication 3162, March 1999). Ellen Ruppel Shell wrote a fine article on the work of flavorists more than a decade ago: “Chemists Whip Up a Tasty Mess of Artificial Flavors,” Smithsonian, May 1986. Terry Acree, a professor of food science technology at Cornell University, was a wonderful resource on the subjects of smell, taste, flavor, and the flavor industry. Bob Bauer, executive director of the National Association of Fruits, Flavors, and Syrups, outlined when and where the flavor industry settled in New Jersey. At International Flavors & Fragrances, I am grateful to Nancy Ciancaglini, Diane Mora, and Brian Grainger, who patiently answered many questions. The flavorists at other firms whom I interviewed shall remain anonymous.