California Pizza Kitchen, Inc.Los Angeles, CA, United States (NASDAQ (GS): CPKI)

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California Pizza Kitchen Competition

Now Viewing California Pizza Kitchen's competition in: Restaurants

Recent Developments

Fewer Working Women Reduces Restaurants' Business - Fewer women are in the workforce in the US than in 1999, a phenomenon that's causing a noticeable problem for the restaurant industry: more cooking at home. Industry experts note that the number of meals cooked at home increased 5.4 percent from 2002 to 2007, while the number of meals eaten at restaurants (measured per capita) fell. In response, restaurants are adding new features to their websites, and trying other tactics to emphasize the convenience and unique offerings available only at restaurants.

Calorie Displays Gaining Popularity in US Cities - New York was the first city to require several major restaurants to tell consumers the amount of calories in their food, but the trend is spreading to other major US cities, including Philadelphia and San Francisco. Reactions to the laws, which affect mostly fast food restaurants because of consistent portion sizes, are mixed. The laws were enacted to help fight rising healthcare costs; costs often attributed to eating out. The New York State Restaurant Association continues to fight the legislation.

High Costs mean Creative Strategies - Restaurants are trying numerous strategies to offset higher food costs, which are rising due to increasing global demand and other factors. One strategy is to substitute or drop dishes to get rid of high-cost cuts of meat that can no longer be served profitably. According to the National Restaurant Association, wholesale food prices have risen nearly 8 percent over the past year. In June 2008, alone, wholesale food prices increased 10 percent versus year ago.

Competitive Landscape

Demographics, consumer tastes, and personal income drive demand. The profitability of individual companies can vary: while QSRs rely on efficient operations and high volume sales, FSRs rely on high-margin items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is highly labor-intensive: annual revenue per worker is between $40,000 and $45,000.

Restaurants Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US eating and drinking places is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.

Eating and Drinking Places Growth Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Depends on consumer income
  • Need efficient use of low-cost labor
  • Risk: Slowing economy limits spending on non-essentials

Industries Where California Pizza Kitchen Competes

  • Leisure
    • Restaurants & Cafes
      • Casual Dining Restaurants