Planet Smoothie Competition
Now Viewing Planet Smoothie's competition in: Restaurants
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company's typical customer? - Young adults without children are most likely to dine out, according to NPD Group. Young men are an important segment for QSRs and tourists are more likely to visit FSRs. Households with children tend to order take out.
What are the company's most effective marketing and promotional vehicles? - Marketing and promotional vehicles include TV, print, radio, and outdoor advertising; direct mail; and newspaper insert coupons.
If the company is a franchise, how do the company's local ads compare to the chain's national ads? - Franchises typically contribute to corporate advertising funds and may run separate local marketing programs.
How effective are the company's local marketing programs? - Word-of-mouth is especially important for small, independent restaurants with limited marketing budgets. Relationships with hotels can help drive tourist traffic.
How does the company develop customer loyalty? - Companies may offer discounts and free food for frequent visits. Developing personal relationships with regular patrons helps create a loyal customer base.
What level of service do the company's customers expect? - Expensive restaurants may assign multiple waiters to a single table to ensure attentive service. Customers may expect waitstaff to have in-depth knowledge of menu offerings and recommend wine pairings. Most QSR customers expect fast service and accurate order fulfillment.
What role does the Internet play in the company's marketing efforts? - Restaurants use Internet sites to post basic information, including menus, directions, and hours of operation. Some companies allow customers to make reservations or place take out, dine-in, or delivery orders through websites.
What is the average check in the company's restaurant(s)? - For chain FSRs, checks average about $8 for family and $18 for casual restaurants. In the most expensive restaurants, checks regularly exceed $100; entrées alone can cost $40 or more. Checks average $5 to $6 in fast food restaurants and $7 to $10 in fast-casual.
Who is the company's main competitor? - Restaurants compete with companies that serve meals or prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete with home cooking.
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.
Business Challenges
CRITICAL ISSUES
Volatile Supply Costs - Unstable manufacturer prices for raw ingredients used in restaurants can significantly impact restaurant profitability. Commodity markets affect wholesale prices for beef and poultry, where prices can change more than 20 percent in a single year. Supply issues can affect the cost of seafood. The wholesale price of flour, eggs, dairy products, fats, and oils can also increase rapidly and affect restaurant margins. Consumer price sensitivity can limit a restaurant's ability to completely pass through cost increases.
Increasing Competition - Restaurants face increasing competition from a broad range of businesses vying for consumers' food dollars. Grocery stores and warehouse clubs are providing more ready-to-eat meals and sides, often at a better value than restaurants. Convenience stores, gas stations, coffee shops, and delis sell sandwiches and beverages, cutting into restaurants' share of the lunch market. Home cooking is also a source of competition, as consumers make over three-quarters of meals at home, according to NPD Group.
Industries Where Planet Smoothie Competes
- Leisure
- Restaurants & Cafes
- Specialty Eateries
- Restaurants & Cafes
