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Strategic perspective on papa john's
Globalization of fast food industry
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Issues
1. The pizza category is suffering from a longer-term trend, with the growth of take-out food capabilities at full service restaurants and the creation of more diversified menus at fast-food competitors.
2. Concerns about the U.S. housing market crisis and the high price of gasoline caused for a large scale back in consumer’s budget to dining out.
3. Pizza hut benefited from a first-mover advantage in international markets and operate more stores in China than Papa John’s has in total. Papa John’s needs to take advantage of different markets overseas.
Recommendations
1. Papa John’s has stated that they don’t want to diversify their menu too much because of their competitive advantage in the quality of pizza. The company needs to consider partnering with another fast food firm like KFC and Taco Bell do by sharing a single building. By doing this, it will diversify the menu by giving options to family of what everyone wants and creates variety to mutually benefit off
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Restaurant and quick-service restaurant dinner service dinner occasions were declining due to an increase in at-home dinner preparations. 70% of Papa John’s sales are from dinner orders. To counter this, Papa John should consider creating a frozen pizza segment in their organization. The goal of this would be to get these frozen pizzas into retailers like Walmart and Target so they are still finding ways to reach individuals who aren’t dining out during this difficulty economic time.
3. Papa John’s international efforts have been focused in Mexico, Canada, the United Kingdom, the Middle East, and Asia. The company has 959 stores internationally but could greatly benefit from increasing this number in the Asian market. The Asian market generally favors quality-centered business models due to higher preferences for quality. Another trend is in these markets is a growing income base for the local population. This will help offset to tough conditions domestically and set up success for the
With their piazza ranging from $5 to $12 whereas competitor Dominos' pizza ranging from $5 to $30. This there is a huge difference between both store price range. With Little Caesars having a $7 difference from the lowest and highest priced pizza and Domino's having a $25 difference. Pinpoint the target market these pizza store targets. Being the only fast food pizza chain offering their products every day for less than approximately $10. This is a strong selling point as they will suit the economic factors of the resident of Western Sydney. With only 21 items on their menu, the pricing model is easy to appreciate and convey to the customers. With affordability is Little
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
...za Kitchen is slightly more expensive and caters to affluent areas and offers niche, delicacy-type pizzas. Pizza Hut, on the other hand, has numerous locations in markets and does not cater to a specific type customer. Pizza Hut does not offer the variety of pizzas that does a California Pizza Kitchen.
Maze, J. (2015). Casual-dining's summer slump: Full-service traffic declined as consumers defected to quick-service competitors. Nation's Restaurant News, 49(13), 104.
Rather than choosing to ignore the negative comments and criticisms of their consumers, Papa Johns could have use their media outlets to communicate what Schnatter wanted to say and rebuttals the incorrect message that the news reporter printed. Consumers would have been able to see that there was a miscommunication between Schnatter and the reporters rather believing solely on the reporter's report since they have nothing else to believe in since Papa John chose not to defend
Papa John’s has also done separate activations for these teams such as Astros1 which offers half-price pizza every time the Astros win (shows you how much confidence they had in the Astros) and my personal favorite Rangers7 which offers half-price pizza the day following a game in which the Rangers score 7 runs or more. I can personally speak to the effectiveness of these sponsorships. I have had Papa John’s pizza approximately 15 times in my life and at least 10 of those visits to Papa John’s were because of a sport-related sponsorship activation done by Papa John’s. I mean who doesn’t love cheap food and
Workforce Challenges: Unlike the competitors TP did not try to make pizza delivery as easy as possible. In order to cope with a high employee replacement, TP instead sought to upgrade both its entry-level employees and the responsibilities they handled. Together with performance measurement systems, employees could be evaluated.
...omer complaints with store employees. Customers would receive phone calls directly from their local store. This social technique improved customer satisfaction as well as bridged the gap between customer and employee. Finally, Domino’s wanted to personalize the customer experience. One way it achieved this, aside from the aforementioned, was by providing the name of the employee making the pizza as well as the driver. Though the company dealt with opposition from employees who did not want their names attached, eventually, employees began to see the benefits of the change. This new social architecture improved employee morale as well as established a more comforting environment for customers.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
Food Inflation: Economic crisis leads to the increasing costs of key ingredients that remain a challenge facing the restaurant industry. Over the recession, consumers may prefer cooking at home to eating outside. They can save their budget if they choose this option. By comparison, in the US the demand for fast food products over the recession did not increase as in Japan, the UK, and France, but more importantly it did not decrease either – this during a time where demand in the overall US restaurant industry fell by around 6%.
The demand of processed and fast food has increased throughout the years. Businesses have revolutionized menus into large quantities. The public has influenced a greater demand for oversized drinks and meals. Oversized sugary drinks have caused much controversy and in response many states have banned the enlarged drinks. Many unhealthy products such as fried food have left consumers craving and yearning for more. Fast food companies have targeted high school and college students by offering affordable meals to those who do not have time to prepare food or the financial support to purchase groceries. Jane E. Brody, author of Attac...
· increase in the fast-casual segment that includes restaurants that offer deli sandwiches and more upscale meals with more comfortable surroundings but faster
During the same period, Little Caesars made a strong push and they have continued to grow. Little Caesars' "two for one" marketing approach was effective in infiltrating the "mom's night off" segment, and is seen by customers as a great value. This is adding direct competition into our niche market share. Little Caesars is surely not making headway with the pizza connoisseurs, but it has effectively targeted a market in which Pizza Hut does not currently have a strong presence. 50% to55% of this market is made up of family dining situations. Our marketing team has conducted multiple data analyses on ways in which we can gain market share from Little Caesars within this market. After much thought and many hours of research, we have devised a marketing plan that will potentially improve our market share.
Domino’s Pizza is operated internationally through a network of 10,255 company-owned and franchise stores, located in all 50 states and more than 70 international markets (Domino’s Pizza Annual Report 2012). There are three business segments which is domestic stores, domestic supply chain and international. The core operation of this company is delivering pizza. Based on number of units and revenue, they rank second largest pizza company in the world. It carry tagline of ‘you got 30 minutes’ in December 2007 to deliver pizza in that time but it is late they will get free pizza or voucher. Free pizzas not apply to all country (Adamy, 2007).
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...