Introduction Chipotle Mexican Grill (CMG) was found in 1993 with a mission to service good quality food with inputs sourced using sustainable farming practices. Since its IPO in 2006 it has been attractive to investors due to fast growth and sizeable profit margins. However, in 2012, faced with domestic competition, rising food cost, and a slowdown in key performance metrics, with additional negative remark from a hedge fund manager, its stock price declined sharply. In this case study, CMG’s business strategy and its core competencies are discussed. Also, recommendations on how it can use international strategy and cooperative strategy, as well as how it can use corporate governance as a source of competitive advantage are included.
At the end of 2011, there were 11,000 Dunkin’s Donut stores worldwide, including 7,015 franchised restaurants in 36 United States and 3,068 international shops in 33 countries such as Canada, Korea, Germany, Thailand and Malaysia. Dunkin’s Donut licensed the first of many franchises in 1955. The restaurant gained success quickly and it became the favorite coffee and donut restaurant of many people. Compared with the rest of the fast food industry, Dunkin’s Donut prices are higher in many scenarios, however, they are competitive with their direct competitors such as Starbucks and Krispy Kreme. At Dunkin’s Brand, community is the heart of their business.
Opportunity* ● The restaurant chains of China are undergoing an unprecedented wave of overseas expansion. Chinese cuisine today plays an increasingly important role in the international market. In the United States, for example, Chinese, Italian and Mexican cuisines have become the three most popular cuisines. There are 50,000 large and small Chinese restaurants in the USA, more than the total number of outlets of McDonald's, Burger King and Wendy's altogether. They account for about 3.4% of U.S. retail outlets of the dining industry and 8.5% of its turnover, with an annual turnover of US$30 billion and 300,000 employees.
They started providing the service after realizing the potential of making added revenue. Greater Competition Due to the rapid growth of the fast-food industry, Mc Donald’s now has to face a lot of competition; not just locally but on a global scale as well. It needs to make its products more attractive so consumers eat in their outlets and not any of the other many fast-food restaurants. KFC, Wendy’s and A&W are the major competitors. Outsourcing and Economies of Scale Outsourcing is an arrangement in which one company provides services for another company that could also be or usually have been provided in-house.
Yum brands: Taco Bell • Taco Bell is the nation's leading Mexican-inspired quick service restaurant brand. From breakfast to late night, Taco Bell offers a wide range of Mexican menu items, and serves more than 36.8 million consumers each week in approximately 6,500 restaurants worldwide. They serve made-to-order tacos and burritos, among other foods. Taco Bell and its more than 350 franchise organizations proudly serve over 42 million customers each week through nearly 7,000 restaurants across the nation. In 2016, Taco Bell was named one of Fast Company's Top 10 Most Innovative Companies in the World.
PROBLEM STATEMENT : To improve the operation and use correct marketing strategies to meet customers’ expectations, grow sales, market share, and proﬁts in the competitive industry. The problem McDonald 's is facing today is developing new strategies in order to sustain a competitive advantage in a market that is quickly evolving and blossoming , with new players gaining market share, and growth in healthier eating trends. SWOT ANALYSIS : STRENGTHS : - Strong global pressence ( located in over 100 countires) - Strong real estate portfolio - Brand recognition - Revenue growth - Systemization & implication (consistency) WEAKNESS : - Public perception (perceived as a contribution to societies obesity promblem) - Product innovation - Customer service - Market saturation (difficult to add more stores) - Advertising (target
KFC, a wholly owned subsidiary of PepsiCo, Inc. until late 1997, operates over 5,000 units in the United States, approximately 60 percent of which are franchises. Internationally, KFC has more than 3,700 units, of which two-thirds are also franchised. In addition to direct franchising and wholly owned operations, the company participates in joint ventures, and continues investigating alternative venues to gain market share in the increasingly competitive fast-food market. In late 1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants, Inc., to be formed from the spin off of PepsiCo's restaurant holdings. PRODUCTS/SERVICES OFFERED KENTUCKY FRIED CHICKEN is the most famous chicken chain in the world.
Despite being comparatively new in the local breakfast industry, these fast food giants have become big players and have been gaining increasing popularity as most people look for less time consumption and convenience. R & H Café R & H Café’s business concept lies in offering quality products and services at affordable prices while preserving the coffee shop tradition. Their target customers are adults and professional working people as they serve alcoholic drinks and business meetings can be held in the café through appointments. Kennington Lane Café From a full English breakfast to special lunches and kebab dinners, this family-run Kennington café serves everything handmade. High-quality food is available at an affordable price.
Executive summary KFC is the largest chicken fast-food operators, developers and franchisees in the world. KFC, a wholly owned subsidiary of PepsiCo, work until the second half of 1997, more than 5,000 in the United States, where about 60% of the franchise. Internationally, there are views of more than 3,700 KFC units, of which two thirds are ache franchise. By buying direct wholly owned and franchised, the company involved in the joint venture, and to study alternative sites continue to be in an increasingly competitive market fast-food. In late 1997, the company is expected to become an integral restoration Yum, a wholly owned subsidiary of PepsiCo formed out of the revolving restaurant companies.