Philosophy To be recognized as a company that responsibly serves our guests, franchisees, employees, communities, business partners, and the interests of our planet. Financial Health At the end of fiscal year 2012, Dunkin' Brands' nearly 100 percent franchised business model included more than 10,400 Dunkin' Donuts restaurants and nearly 7,000 Baskin-Robbins restaurants. For the full-year 2012, the company had franchisee-reported sales of approximately $8.8 billion. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass. The Company's website is located at
With the development of the society rhythm, the fast food has become necessary industry for people's life. U.S. fast food companies are now franchised in over 100 countries. In the U.S. there are over 200,000 fast food restaurants. Revenue has grown from $6 billion in 1970 to $160 billion last year, an 8.6% annualized rate. The 50 largest companies are hold more than 25% the revenue in the industry (Hoovers, 2013).
Together, these findings suggest that Darden Restaurants Inc. only conservatively possesses the financial strength and stability to be considered for investment. Financial Analysis of Darden Restaurants, Inc. Darden Restaurants, Inc. is the world’s largest full-service restaurant company, operating 1,773 restaurants as of May 31, 2009 in the United States and Canada, to include subsidiaries such as Red Lobster, Olive Garden, LongHorn Steakhouse, and five lesser-known restaurants. The firm was originally incorporated in 1968 as Red Lobster Inns of America, Inc, was acquired by General Mills in 1970, and became a separately publicly held company in 1995 when it was incorporated as Darden Restaurants, Inc. as the parent company of GMRI, Inc. and other subsidiaries. In 2007, Darden acquired RARE Hospitality International, Inc. and its LongHorn Steakhouse chain. Darden’s direct competitors in the full-service restaurant industry include Brinker International Inc. who owns, operates, or franchises 1,689 restaurants including Chili’s Grill & Bar, On The Border Mexican Grill & Cantina, and Maggiano’s Little Italy.
In terms of quality, Neptune has dominated most segments compared with other brands. Each product holds the Association of Seafood Processors and Distributors Gold Seal; the only company to boast that achievement. Its products command a 25% price premium—at the least—against competitors. 30% of revenues come from U.S. grocery chains and organic food retailers, 33% comes from top restaurants and cruise liners, another 33% come from wholesalers, and the last 4% is from a company-owned fish market outside Fort Lauderdale. They have recently invested $9 million in six freezing trawlers; new equipment is sporting the most advanced technology available.
Two brothers, Richard and Maurice McDonald founded McDonald’s in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald’s in the USA. Mr Kroc offered a McDonald’s franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers.
This will lead into a discussion of the lack of raw material on the market and I will explain and discuss the business forecasting for Kraft Foods. Kraft is a much diversified company as it is the manufacturer of several different types of food products to include the following: confectionary, cheese, biscuits, convenient meals and various packaged foods; selling to consumers in over 170 countries. Kraft Foods trades in three segments: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets (Forbes). 2010, Kraft Foods had operations in more than 75 countries and made its products at 223 manufacturing and processing facilities worldwide. At December 31, 2010, its portfolio included 11 brands Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings, and Oscar Mayer meats.
1. Using the “DECIDE” procedure/formula, analyze the above case. (50 points) Company Background Frito-Lay Company is the world leader in the salty snack category, controlling more than 35 percent of the world market in snack chips and 60 percent in the United States. Among the company's well-known brands are five that generate annual sales of $1 billion each: Lay's, Ruffles, Doritos, Tostitos, and Chee-tos. In addition to its dominance of the potato chip, tortilla chip, and corn chip sectors (the last of these led by the Fritos brand), Frito-Lay has major brands in other categories, such as Rold Gold pretzels, Cracker Jack candy-coated popcorn, and Grandma's cookies.
cASE STUDY Safeway Top NorTh AmEricAN rETAilEr cENTrAlizES TrANSporTATioN mANAgEmENT AND AppoiNTmENT SchEDUliNg AND SAvES Safeway Key Statistics • ranks 55 in Fortune 500 and is part of the S&p 500 • Top Five North American Food retailer • Deployed one Network Transportation and Appointment Scheduling solutions in less than 3 months • centralized transportation and appointment scheduling processes • Delivered a single systemic platform across manufacturing and retail Transportation operations • reduced scheduling overhead by 90% for many americans, “going to Safeway” is synonymous with “going to the grocery store.” Safeway is one of North america’s largest food retailers, with about 1,740 stores located mostly in industry Grocery Retail Annual Sales $42 Billion the western, midwestern, and mid-atlantic regions of the US, as well as western Canada. It also operates regional supermarket companies, including The Vons Companies (primarily in Southern California), Dominick’s finer foods (Chicago), Carr-Gottstein foods (alaska’s largest retailer), Genuardi’s family Markets (eastern US), and Randall’s food Markets (Texas). It also owns eretailer Groceryworks.com. Outside of the US, Safeway owns 49% of Casa Ley, which operates about 135 food and variety stores in western Mexico. Demand Driven Networks | One Network Enterprises cASE STUDY Safeway Top Competitors • Kroger • SUpErvAlU • Wal-mart Ultimately the process resulted in: • A centralized transportation process, however a decentralized scheduling process resulting in 5 dedicated schedulers (one for each warehouse) across each of Safeway’s 16 facilities.
T he Multi-Unit Restaurant Business represents 30% of the f oodservice industry which is a $600 billion industry with 960,000 locations. T hey are categorized into three industry segments: Specialty Establishments, Quick Service Restaurants and Casual Dining. Levendary Caf é is a hybrid of the last two called Quick Casual which has an average check in the $8 to $12 range. T hey are distinguished by two elements: wholesome f oods using high quality ingredients and a commitment to service in a comf ortable, f riendly atmosphere. T hey were also distinguished by their willingness to take risks which was a trait of the original f ounder.
Morrison stores stock some 20,000 items; Morrison's private labels account for more than half of all sales. The stores feature a 'Market Street' concept, with specialty shops, including fishmongers, butchers, pizza, and baked goods, and American shops--selling doughnuts and hotdogs—′oviding a High Street shopping experience to Morrison's largely suburban customers. Morrison boasts to be the sole grocer in the United Kingdom that offers the same prices in all of its stores. The company also produces most of its own products, through its Farmers Boy and Wm. Morrison Produce subsidiaries, enabling it to keep its prices--and costs--low.