Red Robin: Casual Dining Industry AnalysisI.
The Industry, The Market and The Buyer
Competition AnalysisTotal market share 37.41%
Top CompetitorsCasual dining restaurants represent 16.1% of the rest
aurant industry’s market share (Refer
to Chart #1).
Based on total system wide sales, Applebee’s
Neighborhood Grill & Bar (operated
by Dine Equity Inc.) leads the segment ($4.5 billion in 2007), followed by Chili’s Grill & Bar
(operated by Brinker International; $3.9 billion in the fiscal ended June 2008) (Standard &
Poor’s, 2009). According to Busin
ess Source Premier, the following companies are the topcompetitors of Red Robin Gourmet Burgers Inc:
Applebee’s International, Inc.
with 14.69% of market share, The Cheesecake Factory Incorporated with 3.68% of market share, CaliforniaPizza Kitchen, Inc. with 1.74% of market share, and Ruby Tuesday, Inc with 5.84% of marketshare (May 2008). However, according to Hoovers Company Records
, Red Robin’s top
Brinker International (Chili’s with 11.46% market share), California Pizza
. (1.74%), and Ruby Tuesday (5.84%) (2008). Red Robin’s market share is given as
2.80% in Table Base (June 2006) (See Chart #2).BrinkerBrinker International is among the
best quality casual dining restaurants
in the world.Brinker has
founded its strategies on the strong position of its world-class brands in order to beable to increase the sales of its restaurants and diversify its operations into new markets.
Inaddition, Brinker implements market strategies in which they offer great value products in orderto lure customers to their restaurants. Brinker also uses a number of strategies to continue itssteady growth such as franchising, joint venture, and company-owned development