By the early 1970s, the company expanded throughout the Southeast, establishing Red Lobster as the leader among seafood and casual dining restaurants. "Our biggest competition back then was the kitchen stove," said Joe Lee, a key member of that early crew who later went on to become CEO and chairman, leading the company through much of its growth. Today, there are more than 680 Red Lobster locations in the United States and Canada. Their reputation as seafood experts is known worldwide. It is evident that Americans choose Red Lobster over other casual seafood dining restaurants due to their reasonably priced menu selections, restaurant cleanliness, and exceptional customer service.
According to Boonze and Kutrz (2012) Murrell states “We figure our best salesman is our customer”, “treat that person right, he’ll walk out the door and sell for you” (pg. 78). This philosophy is one of the key factors that keep Five Guy’s apart from other fast-food chains. Five Guys philosophy has shown significant strength; today Five Guys has more than 1,000 stores nationwide. Five Guys is so successful because though it only sells burgers, it does that extremely well.
In addition, Brownlee claims that the reason of fast-food restaurants work is by marketing. She provides the enough evidence to believe that advertisers try to persuade the society in order to make people go to eat at the fast-food restaurants. Furthermore, Brownlee asserts that even if restaurants provide more food for less money, they still making an appropriate profit. Additionally, she addresses the fact that the society prefers upgrade their meals just for a few extra cents, but the Americans do not realize they are earning more calories than they should consume. She argues that companies are the only responsible for people becoming obese because they provide a lot of food just for a little of money probably because companies have found out that big meals produce big profits.
Firms in the fast food industry and home meal replacements have to continuously innovate to maintain various product differentiations and high quality of food and service in order to stand out against competitors. Otherwise, their product is easily substituted. Bargaining power of buyers: The bargaining power of buyers is high since customers have low switching costs. Thus, each firm within the industry is susceptible to losing customers. To address this,
Coincidentally, George Naddaff, owner of 19 Kentucky Fried Chicken franchises, caught on to the “home-cooked” fast food idea and purchased a Boston Market franchise. Boston Market’s direct competition at that point, wanted to participate in their concept which carried them far beyond their current sales and revenue. Some indirect competitors of Boston Market eventually got involved as well. McDonalds ended up purchasing the chain of stores in 1998 and changed a few things to increase the appeal of Boston Market to its consumers. Fortunately for McDonalds, they are a big enough corporate themselves which enabled them to make this deal with Boston Market, whereas the other indirect competitors (local sub shops, Chinese restaurants, etc.)
Checker. 's Pizza Checker's Pizza is a chain of 40 pizza restaurants in the New England area. Checker's started in 1975 and specialized in making pizzas "from scratch." Each pizza was covered with a special sauce, made from a “secret” family recipe, that kept customers coming back for more. But Checker's, like other pizza restaurants in the 80's, had to respond to the wave of fast food pizza restaurants and delivery services that seemed to comer the market.
Ray Kroc’s impact on society Imagine yourself being a famous man or woman who greatly impacted society by founding a fast food restaurant that is visited everyday by many Americans and makes billions of dollars every year. "The definition of salesmanship is the gentle art of letting the customer have it your way” (Ray Kroc, Burger Baron). Ray Kroc’s dad took him to a phrenologist- a specialist that could predict someone’s future by looking at the bumps on their head. Once the specialist revealed Ray’s chart, it showed that he would have a future in the fast food industry. It was either luck or actual physic power; because the phrenologist was correct (Furlong Barry William).
The restaurant chain: · Has a low marketing budget. GFR’s guests visit the restaurant for fresh, wholesome food and reasonable prices. Any marketing program has the potential to disrupt that brand experience by increasing the cost of that experience. Given the ﬁxed-price/low-margin nature of the business, Ken Keane, president of Garden Fresh Restaurant, notes, “We have to measure the results of every incremental marketing program and make sure we’re not better oﬀ doing nothing.” · Relies on guest loyalty. Repeat customers drive sales.
Burger King soon followed in the 50’s and has also received its fair share of lawsuits. Some believe that suing consistently is acceptable because they are using their freedom of using the court system but many believe that it is a frivolous waste of time. Because fast food has become increasingly available, many Americans use the opportunity to eat their food whenever they want it and at a low cost. Yet when the visits are far too often they look for someone else to blame for their mistakes. Take Gregory Rhymes for example.
Today, there are over 11,000 stores – including more than 5,000 outside the United States.” (Domino’s) Unfortunately, Domino’s was previously agreed by Americans that their home delivery pizzas were among the worst, and they had to do something about it. In lieu of the news, they invested in new informational systems in order to compete against their top competitors including Pizza Hut, Papa John’s, and Little Caesars to achieve their vision of delivering excellent customer service and goods pizzas. (Laudon) Their business strategy to improve identified an overhaul with the in store