Applebee’s is a casual-dining chain owned by DineEquity based out of Glendale California. DineEquity, who also owns IHOP, acquired Applebee’s in 2007 for about $2.1 billion. The chain as of 2013 has over 2000 locations with plans to open even more in the future. The merger with IHOP resulted in being the largest casual dining company world with over 3,000 locations worldwide.
Recently Applebee’s has faced some tough times. Increasing competition in the casual dining segment from chains such as Chipotle, Buffalo Wild Wings, Olive Garden, and others have made this a cut-throat industry.
Increased competition isn’t the only issue that Applebee’s is currently facing. Consumers are starting to become more health conscious. The menu items that Applebee’s has to offer are far from healthy.
Applebee’s plans on keeping its doors open and are currently in the middle of making drastic changes to remain competitive and profitable.
Section I: Summary of Pertinent Case Facts (Background)
Strength’s
Applebee’s currently has over 2000 locations across North America. This makes Applebee’s a leader in the casual dining segment.
Due to its many locations, Applebee’s also has an established customer base.
Applebee’s is a well-recognized brand. Consumers at the very least have heard of Applebee’s due to their many locations or their aggressive advertising campaigns
Applebee’s is also in the middle of remodeling their locations and updating them with tables. These tables will bring the restaurant up to date and increase efficiency.
Waknesses
Applebee’s is constantly changing menu items. Even though change is good, Applebee’s should focus on creating specialty items that they can be known for.
Consumers have plenty of other restaurants to c...
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...is not only make the restaurant feel local, it also gives people from out of town an incentive to stop by and grade a drink and something to eat.
The last recommendation I have for Applebee’s is to add some sort of interactive entertainment. Such entertainment could be bowling, table tennis, or even open mic’s. This will give customers a reason to either come or stay longer than they should which would increase the average amount spent by each patron. Hosting open mic’s (events where amateur poets,singers,comedians) will allow Applebee’s to become more involved with the community and help establish a relationship. Also, if a person is performing they are likely to invite friends and family which would result in increased sales. Providing alternative entertainment is something most local restaurants do, this would serve as a person to person promotional campaign.
Chick-fil-A recognizes that their brand promise starts the minute the customer enters the premises. When a store opens for the first time, the franchised operator doesn’t just see an opportunity to sell his food product, but rather a “chance to interact, build community, and engage with customers and the community at large. We do this in a variety of ways. First and foremost, we strive to provide 2nd Mile Service to each customer. As we work to continuously improve, we want customers to experience something unique. We want to build community and create relationships between our customers and our food, people and restaurants” [3].
... and Busters to continue their competitive advantage and record breaking profits they must do a number of things. First of all, the company must remain on the leading edge of technology. A large portion of their clientele is dependent on the new technology and innovative designs of Dave and Busters’ video games. If they lose this edge, they have lost their niche in the market. Second, the company must maintain it’s high priority involvement towards customer satisfaction. As any company knows, customer satisfaction means everything. And as of now, Dave and Busters is maintaining an A+ as far as customer satisfaction goes. Finally they have to adapt to the many different needs their clientele demands. Customer needs and wants are not subject to stay constant. Dave and Busters must continually research what their customers want and what they demand. There are many different methods they can use; demographics, surveys, questionnaires, etc. Dave and Busters Inc. is on the forefront of the restaurant/entertainment business. With their competitive attitude and award winning drive and ambition it seems inevitable that they will continue to be the elite leaders of the newly founded market.
First, the similarities between the two restaurants is some of the food options. Applebee’s and Olive Garden are both designed to cater to
Did you know Panera Bread is one of the fastest growing franchises in America (Panera Bread Franchise)? The restaurant must have great qualities for people of all kinds to love it as much as they do. Visiting Panera Bread I had an awesome experience mainly because of its physical environment. Panera Bread has a great environment which is ideal for encouraging consistent business.
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and
Therefore I think that there are 3 alternatives which can be considered for the future. The first idea that came to my mind is to sell Panera or going join venture with one of the big players in the restaurant industry. Panera has an impressively high market value which is indicated by the goodwill estimation on the balance sheet. By getting together with a major franchising company like McDonalds or Burger King, Panera’s expansion could be supported with a much greater amount of money. The backside of this deal would be that Panera’s executives would lose their controlling power over the company’s operations and would allow the joined company to misuse Panera for own interests and goals. Considering these issues by getting together with another company opens up questions of the necessity of a joint venture which led me to the second alternative. The company should keep up with their strategy of a steady growth model and the production of high quality products. Panera was doing really good in the last couple of years and the fast casual market has a great undeveloped potential for the future. Nevertheless, Panera has to be aware of major franchisers competitors who have the power and willingness to compete with Panera for customers, market share and profits. This major threat may result in a recession of sales in the long run. Panera still does not have the financial strength of McDonalds or a similar major franchiser. My third idea was the opportunity of an international expansion which would allow Panera to become a forerunner in the fast-casual world market. There is nothing similar existing in the European market so far and it might be a great fit to the European culture.
We already know that Papa John's is a major player in the Pizza industry but the big question is what does the future hold for them. What is the next step or steps that they must take to get a head of the competition as well as just sustain their place in the market.
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
Arby’s is a fast food chain started in 1964, by founders, Leroy and Forrest Raffel. The first Arby’s opened was a sandwich shop in Boardman, Ohio. The idea was to serve up something quickly and was not a hamburger; Arby’s served up hot, freshly sliced roast beef sandwiches ("Arby's", n.d.). Arby’s does not have the size of other popular fast food franchises, Subway, Mc Donald’s, or Burger King. Arby’s currently operates in about 3,400 locations, in 48 states and five countries: U.S., Canada, Turkey, United Arab Emirates, and Qatar ("Arby's", n.d.). Arby’s menu has stayed very close to the original for almost thirty years. In 1991, they introduced salads, and sandwiches with less than 300 calories. In 2001, they introduced and heavily marketed a new line of sandwiches the Market Fresh sandwiches. Arby’s then added wraps to the Market Fresh menu three years later ("Arby's", n.d.). The Advertising strategy for the Market Fresh Menu included radio, TV commercials, and magazine ads. Advertisement promoting Market Fresh menu items showed premium deli style sandwiches made with fresh ingredients. For consumers that wanted a healthier choice when it came to fast food options. The wraps add to Arby's Market Fresh menu were to give customers more unique tasting, high-quality options in fast food dining. Even the menu name chosen elicits certain images for a consumer. The term market conjures images of picking fresh fruits and vegetables from the farmers market. The term fresh has consumers believing that the food is made on the spot for each order. Where other fast food restaurants, like Subway, slice it before the meat reaches stores. Arby’s advertising campaign “Slicing Up Freshness”, which highlights the chain’s freshly sliced sandwich m...
These products, built upon incredible foresight and attention to detail, carried tremendous customer loyalty and high margins. Apple management must bridge the perceived innovation gap with some sort of product breakthrough. Otherwise, it is reasonable for the company to accept lower Street expectations built upon the premise that while the company remains an exceptional production, distribution and branded business, the days of unparalleled enterprising innovation and leadership may be ebbing. The best things to do, by Cook, would be to have a VP that replace the innovation brought by Jobs and be in charge only on innovation.
According to National Chicken Council it is reported that during Super Bowl weekends Americans are expected to chow down on close to 1.25 billion chicken wings. Of this amount, a majority of the wings will be consumed either in or from a restaurant. In Hays, Kansas there is not a predominant wing venue, however, there is one name that frequently comes up: Buffalo Wild Wings. A very popular choice among the college crowd, this establishment has cemented its name with some of the top sports bars in the business since 1982. This analysis will discuss whether or not bringing Buffalo Wild Wings to Hays, Kansas would be a successful economic venture by looking at potential profitability, future clientele base, competing businesses, and employment opportunities.
...provide the consumer with alternative products they have to be able to shift with the trend in order to keep up. So Domino’s will have to offer healthier alternatives, what products to offer and how fast will they be able and adapt to these changes.
One of Burger King’s most important strengths is its strong market position. It is the second largest fast food chain in the world, trailing McDonald’s. There are 11,550 stores in 71 different countries. Its geographic diversification is a competitive advantage. Burger King’s slogan, “HAVE IT YOUR WAY,” and its’ famous “WHOPPER” brand are very recognized by all consumers. These two campaigns were created in the 70s and have stuck around ever since. Talking some numbers, between 2006 and 2008, the chain’s profitability increased from $170 million to $354 million. In 2010, $2.5 billion was expected to be made and Burger King was able to reach just those projections.
Jollibee is A Well-Loved Brand. Customers’ pleasure has always been key to Jollibee’s success. Never trailing sight of its purpose, Jollibee has developed to be one of the most established and highly favoured brand in the Philippines. N...