(GTIM) Good Times Restaurants Inc. Porters Five Forces Research |
Fully Editable: Tailor To Your Needs In Excel Or Sheets
Professional Design: Trusted, Industry-Standard Templates
Investor-Approved Valuation Models
MAC/PC Compatible, Fully Unlocked
No Expertise Is Needed; Easy To Follow
(GTIM) Good Times Restaurants Inc. Complete Analysis Pack
Go Beyond the Preview—Access the Full Strategic Report
This Good Times Restaurants Inc. Porter's Five Forces Analysis helps you assess competitive pressure, industry attractiveness, and factors affecting profitability. The page already shows a real preview of the analysis, so you can review the actual content before buying. Purchase the full version to get the complete ready-to-use report.
Suppliers Bargaining Power
Commodity input exposure
Good Times Restaurants Inc. relies on beef, chicken, dairy, produce, buns, and cooking oils, so its food cost base is tied to commodity markets. In 2025, restaurant food-at-home inflation stayed positive, and beef and dairy were still volatile, which can lift costs faster than menus can reset. Because the company has little control over supplier pricing, supplier power rises when food inflation spikes.
Limited scale bargaining
Good Times Restaurants Inc. is still a small buyer, with only a few dozen Good Times and Bad Daddy's units, so it lacks the volume national chains use to push down supplier prices. Smaller order sizes weaken its leverage with food distributors and manufacturers. That can mean higher input costs and tighter contract terms when beef, dairy, or produce prices rise.
Packaging and paper dependence
Good Times Restaurants Inc. depends on cups, containers, liners, and branded paper for both drive-through and dine-in service, so suppliers can pressure margins when inventory is tight.
Freight spikes and paperboard shortages can raise input costs fast, and packaging usually sits in the low single digits of restaurant sales but moves sharply with demand.
That makes supplier bargaining power moderate, but it rises quickly when fast-food volumes are strong and materials are constrained.
Labor market pressure
Restaurant labor is a key supplier-like input for Good Times Restaurants Inc., because staffing levels and wage rates directly shape store hours, service speed, and food output. In 2025, tight hiring conditions in food service kept pressure on pay, retention bonuses, and training spend, which lifts labor’s bargaining power versus management. One labor gap can hit sales and margins fast.
- Wages can rise in tight labor markets
- Retention costs can increase quickly
- Staff shortages can cut operating hours
Real estate and landlord terms
For Good Times Restaurants Inc., landlords are a real supplier force because both Burgers Frozen Custard and Bad Daddy’s Burger Bar need prime traffic sites to win sales. In strong retail corridors, higher rents, renewal bumps, and tighter lease terms can press site-level margins and limit expansion speed.
This makes good site economics a key constraint, not just a real estate issue. If rent or build-out costs rise faster than unit sales, landlord leverage can squeeze returns on new openings and remodels.
- Prime sites raise landlord leverage.
- Rent terms can hurt margins.
- Site economics can limit growth.
Good Times Faces Rising Input Costs as Supplier Power Stays High
Good Times Restaurants Inc. faces moderate supplier power because it buys beef, dairy, produce, packaging, and labor in small volumes. In 2025, food-at-home inflation stayed positive, and beef and dairy stayed volatile, so input costs can rise faster than menu prices. Small scale and tight site markets also limit leverage with distributors, landlords, and labor.
| Input | Pressure |
|---|---|
| Beef/dairy | High |
| Packaging | Medium |
| Labor | High |
What is included in the product
Detailed Word Document
Assesses how competition, suppliers, buyers, substitutes, and entry threats shape Good Times Restaurants Inc.’s profitability and market position.
Customizable Excel Spreadsheet
Quickly clarifies Good Times Restaurants’ competitive pressures so you can make faster, smarter strategic decisions.
Reference Sources
Provides a credible source trail for Good Times Restaurants Inc., helping investors verify assumptions quickly and make decisions with confidence.
Customers Bargaining Power
High price sensitivity
Restaurant customers are highly price sensitive, and Good Times Restaurants Inc. feels that most in quick-service and casual dining. In 2025, U.S. food away from home prices kept rising faster than many household budgets, so even a small menu hike can push traffic to cheaper rivals or at-home meals. That gives customers real leverage over pricing, discounts, and promos.
Low switching costs
Low switching costs keep Good Times Restaurants Inc. exposed to high customer power. Consumers can move from burger chains to casual dining or delivery in one click, and the U.S. restaurant market already tops $1 trillion in annual sales, so choice is broad and loyalty is thin. With no long-term contracts and little friction, customers can pressure price, portion size, and promotions fast.
Abundant alternatives
GTIM faces strong buyer power because customers can pick from more than 1 million U.S. restaurant and foodservice locations, plus grocery, delivery, and convenience food options. They can compare value, speed, and taste in seconds on apps and review sites, so switching costs stay near zero. That wide set of substitutes keeps pressure on GTIM’s pricing and margins.
Digital review influence
Online ratings and social media can move Good Times Restaurants Inc. demand fast, because a bad service post can spread in hours and push diners elsewhere. Customer reviews also magnify food-quality complaints and price pushback, which makes it harder to raise menu prices without losing traffic. The result is tighter execution pressure across stores, since one weak visit can shape many future orders.
- Fast review spillover hurts demand.
- Bad service gets amplified online.
- Price freedom stays limited.
- Execution quality matters more.
Promotion-driven demand
Good Times Restaurants Inc. faces strong customer bargaining power because many visits are driven by discounts, bundles, and limited-time offers. In value-heavy quick-service dining, guests compare prices fast, so full-price demand is harder to hold.
Loyalty rewards and promo apps keep customers trained to wait for deals, which can cap pricing power and pressure margins. For a small chain, even a modest shift toward deal-seeking traffic can make revenue less predictable.
- Promo-led traffic weakens pricing power.
- Rewards and bundles set value expectations.
- Full-price demand becomes less reliable.
Low Pricing Power in a Crowded U.S. Dining Market
Good Times Restaurants Inc. faces strong customer power: U.S. diners have 1M+ restaurant and foodservice options, and switching costs are near zero. In 2025, food-away-from-home prices still rose faster than many budgets, so price, bundles, and promos shape traffic. Online reviews can shift demand fast, so one bad visit can hurt repeat orders.
| Metric | Data |
|---|---|
| U.S. locations | 1M+ |
| Switching cost | Near zero |
| Pricing power | Low |
What You See Is What You Get
Good Times Restaurants Inc. Porter's Five Forces Analysis
This preview shows the exact Good Times Restaurants Inc. Porter’s Five Forces Analysis you’ll receive after purchase—no placeholders, no differences. It’s a fully formatted, ready-to-use document covering competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants. Once you buy, you’ll get instant access to this same file.
Rivalry Among Competitors
Crowded burger market
Burgers and chicken are among the most crowded food-service categories, so Good Times Restaurants Inc. faces heavy rivalry from national chains, regional brands, and independents. In a mature market, players fight hard for same-store traffic with price deals, bundles, and speed. That keeps margins tight and makes traffic wins expensive.
National chain scale
National chains outspend Good Times Restaurants Inc. on ads and digital offers, with McDonald’s reporting $27.9 billion of 2025 revenue and Yum! Brands $7.5 billion, plus far bigger loyalty reach and media scale. That lets them buy cheaper inputs and push lower prices, which can squeeze GTIM’s traffic and visibility. They also set the bar for fast service, easy ordering, and value.
Dual concept competition
GTIM runs 2 burger concepts, Good Times and Bad Daddy's, so it fights on 2 fronts: quick-service and full-service. Each banner faces specialists with stronger brand pull and bigger scale, which makes pricing, traffic, and loyalty harder to defend. That dual setup keeps competitive rivalry high.
Frequent discounting
Frequent discounting is a real rivalry driver for Good Times Restaurants Inc. In 2025, U.S. restaurant chains kept pushing coupons, limited-time offers, and combo meals to protect traffic, which squeezes margins and forces GTIM to price with care. If GTIM over-matches, unit profit can fall; if it under-matches, visits can slip.
- Coupons, LTOs, combos drive visits
- Promo wars compress margins
- GTIM must match, not over-discount
Local market battles
Competitive rivalry is intense because Good Times Restaurants Inc. depends on each local trade area and store-level execution. Nearby chains fight for the same lunch, dinner, and drive-through trips, so small gains in speed, service, or site access can shift share fast. In FY2025, that means every unit has to win its own neighborhood, not just the brand.
- Local trade areas drive demand
- Execution changes share quickly
- Convenience beats broad branding
High Rivalry Pressures GTIM’s Burger and Chicken Fight
Competitive rivalry for Good Times Restaurants Inc. is high because it fights crowded burger and chicken markets, with national chains, regionals, and independents all chasing the same trips. McDonald’s reported 2025 revenue of $27.9 billion and Yum! Brands $7.5 billion, showing the scale gap that pressures pricing, traffic, and margins. GTIM’s two banners, Good Times and Bad Daddy's, must win locally on speed, value, and execution.
| Metric | 2025 |
|---|---|
| McDonald’s revenue | $27.9B |
| Yum! Brands revenue | $7.5B |
| GTIM banners | 2 |
Substitutes Threaten
Home-cooked meals
Home-cooked meals are a strong substitute for Good Times Restaurants Inc. because groceries usually cost less than dining out. U.S. BLS data in 2025 showed food-away-from-home inflation near 4%, while food-at-home stayed closer to 2%, which kept many households cooking more at home. That price gap makes restaurant traffic easier to cut when budgets tighten.
Other cuisine choices
Customers can swap burgers for pizza, Mexican, chicken, sandwiches, or salads with little friction, so Good Times Restaurants Inc. faces a wide substitute set. In the U.S., food-away-from-home spending stayed above $1 trillion in 2025, and diners still choose by occasion, price, and convenience more than by brand. That makes substitution broad, frequent, and hard to defend.
Convenience store and takeout food
Convenience store and takeout food are strong substitutes for Good Times Restaurants Inc. because they win on speed and price. NACS said U.S. convenience stores reached 152,255 locations in 2024, and foodservice sales hit about $121 billion in 2023, showing how big this grab-and-go rival is. These options fit breakfast, lunch, and quick dinner trips without a sit-down visit.
Delivery and meal apps
Delivery and meal apps give diners more substitutes for Good Times Restaurants Inc. meals, because a burger from another brand can arrive at home in one tap. App prices are highly visible, and fees plus service charges can add roughly 15% to 30% to the ticket, so customers quickly compare value. If wait times or fees climb, GTIM location traffic can soften as guests switch to delivery instead of dine-in.
- More brands, more substitution risk
- Fees raise price sensitivity
- Long waits can cut GTIM traffic
Health and lifestyle shifts
Health and lifestyle shifts raise substitution risk for Good Times Restaurants Inc., because some diners are moving from burgers to lighter, plant-based, or protein-first meals. In the U.S., plant-based food sales still ran in the multi-billion-dollar range in 2025, so the shift is not niche; it can steadily pull traffic away from traditional fast food and casual burgers.
- Health trends can redirect burger demand.
- Plant-based and protein meals compete directly.
- Substitution risk builds over time.
Substitute pressure stays high as diners keep choosing cheaper alternatives
Threat of substitutes for Good Times Restaurants Inc. stays high: home cooking, other QSR brands, convenience food, and delivery all give diners easy swaps. U.S. food-at-home inflation stayed near 2% in 2025 versus about 4% for food-away-from-home, so price gaps still favor cooking at home and value-focused alternatives.
| Substitute | 2025/2024 signal |
|---|---|
| Home cooking | Food-at-home inflation near 2% |
| Restaurant meals | Food-away-from-home near 4% |
| Convenience stores | 152,255 U.S. stores in 2024 |
| Delivery apps | Fees can add 15% to 30% |
Entrants Threaten
Moderate capital requirements
Moderate capital needs keep entry barriers manageable for Good Times Restaurants Inc. A single restaurant can often open with roughly $300,000 to $2 million, far below capital-heavy industries, so well-funded independents can still enter. U.S. restaurant sales topped about $1.1 trillion in 2024, which keeps new concepts attractive despite the risk.
Franchise and independent startup access
Franchise systems and small independents keep entry easy in restaurants, because a new brand can launch with a modest footprint and outsource supply, tech, and some labor. For Good Times Restaurants Inc., that means a new burger or taco concept can still open fast and cheaply versus most sectors. The threat stays meaningful, especially when start-up capital can be kept low.
Brand building challenge
Brand building is the main barrier for new restaurants: opening a unit is easy, but getting repeat traffic is not. Good Times Restaurants Inc. already has a local base and known concepts across about 40 locations, so new entrants must spend heavily on ads, promos, and opening support just to get noticed. That marketing burden slows takeoff and raises the risk that a fresh concept burns cash before it gains traction.
Site selection and permitting hurdles
Site selection and permitting are real barriers for Good Times Restaurants Inc. Prime restaurant sites are scarce and costly, and new operators still must clear zoning, health, liquor, and building approvals before opening. These delays can stretch for months and make fast market entry hard.
Scarce sites raise lease and build-out costs.
Permits and inspections slow openings.
Delays limit new competitor speed.
Incumbent scale advantages
New entrants face a steep cost wall because existing chains usually get better supplier terms, tighter labor routines, and richer customer data. Good Times Restaurants Inc. can spread know-how across its two burger concepts, which helps defend share and keep unit economics sharper. That scale gap makes it harder for a new chain to match margins and grow profitably.
- Better supplier pricing
- Stronger operating playbooks
- More customer data
- Two-concept scale edge
Moderate Entry Barriers Still Protect Good Times Restaurants
Threat of new entrants for Good Times Restaurants Inc. stays moderate: a burger or taco unit can open with about $300,000-$2 million, but scaling is harder. U.S. restaurant sales hit about $1.1 trillion in 2024, so new concepts still chase the market. Brand, site, and permit hurdles slow fast entry.
| Barrier | Data |
|---|---|
| Unit capex | $300,000-$2 million |
| U.S. sales | About $1.1 trillion, 2024 |
| Good Times scale | About 40 locations |
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.