PepsiCo is currently the worldwide leading cooperation in the food industry; there is no rational reason for them to quit. Pepsi should definitely continue in the restaurant business. In this case, PepsiCo has two options available to expand its business: Carts of Colorado or California Pizza Kitchen. Regarding purely on the case, PepsiCo should pursue both companies, since both of them can help boost PepsiCo’s leading position in the industry. However, pursuing two large companies is risky. If PepsiCo have to give up on one of them, California Pizza Kitchen is a more suitable option for PepsiCo.
California Pizza Kitchen (CPK) is a Pizza chain founded by two former U.S. attorneys with exotic toppings. It is an instant populated chain restaurant. CPK will be a good fit to PepsiCo. CPK shares several similarities with PepsiCo. First, obviously both companies have experience in restaurant industry. PepsiCo starts with its business by making Pepsi cola syrup and carbonated water in 1890s. It later expends to the food industry. It currently has three restaurant chains – Kentucky Fried Chicken, Taco Bell and Pizza Hut. PepsiCo’s strategic planers believe deeply in quick service restaurants. CPK is a restaurant chain with simplicity and convenience. It matches PepsiCo’s value on restaurants. CPK’s lunch average is around $10, which also fits PepsiCo’s chain restaurant average well enough.
Second, both of them give high value to their employees. PepsiCo is a company focus on