It's no secret that several fast food chains that used to reign in the restaurant industry are now struggling to compete with the thousands on new innovative concepts offering guests an elevated experience, whether it be with the higher quality food product or dining experience.
Even the quick-serve chain McDonald's, which has recently completed a brand revamp, said in a call last week that it's difficult to bring in customers due to the "market share fight."
Yum Brands CEO Greg Creed expressed similar sentiments and also called the marketplace "very tough," after Taco Bell's new Nacho Fries didn't foster the sales they had hoped for.
"You have to be really good to survive," said Michael Osanloo, CEO of PF Chang to "Business Insider.:
The industry has quickly been overpopulated with concepts, but Osanloo argues that in this market the bad restaurants just fail quicker.
"It's been a constant dynamic. There are too many bad restaurants, for sure," said Osanloo. "And, I think what happens is that bad restaurants have really short shelf life. Good restaurants do really well."
Besides the market being oversaturated with restaurants, the minimum wage has increased in 18 states. This means the profit margins for restaurant operators are even slimmer. Since there are so many restaurants to get jobs at, to attract quality staff, concepts have to offer more incentives.
"While high employment rates are good in terms of bringing in more customers, it also means restaurants need to pay workers more if they want to attract and keep talent. That's great news for workers, but it causes problems in an industry built on cutting costs as much as possible," writes "Business Insider."
So that means chains, especially the giants in the industry, are turning to automated technology, like self-serve kiosks.
But there is another issue contributing to the fast food apocalypse. Mega franchisees. Unlike Chick-fil-A, which only allows one franchisee to own one store at a time and is still on track to be the third largest restaurant chain by 2020, other big chains allow franchisees to take on hundreds.
Learn how this is negatively impacting the industry at "Business Insider."