Competitive Analysis

Team Baldwin
 Discussion Journey
 Company Background
 Financials
 Restaurants Analysis
 Strengths and Weaknesses
 Conclusions and the Future
 Company Background
 Founded 1975 with original brand: Chili’s
Grill & Bar in Dallas
 1984: Goes public
 1991: Changes name to Brinker
 1994: Acquire On the Border
 1995: Acquire Maggiano’s
 1999: Four dining options: Chili’s, On the
Border, Maggiano’s, Macaroni Grill
 Brinker Today

Chili’s

Maggiano’s
 Minority share in Romano’s Macaroni Grill
 1,700 Restaurants
 27 Countries
Current Financial Snapshot
Historical Growth
 Restaurant Segment
 Casual dining

 Family dining with laid back, “young”

restaurants (Chili’s)

 Families also welcome at Maggiano’s for

homestyle dishes
 Company Image
“Serving the world a great taste of life
through the Power of Welcome”
 Different Restaurants, Same
Image
 Chili’s Grill and Bar
– TexMex cuisine with a laid back atmosphere.
 All are welcome to enjoy

 Maggiano’s Little Italy

– Made from scratch Italian with a family run
feel.
 All are welcome to enjoy
 Differentiation Strategy
 High quality food for reasonable prices

 Unique, welcoming atmosphere

 Unique menus for traditional food styles

 Distinct Tastes
 Chili’s Grill and Bar
– Basic food fare with a kick
– Frozen margaritas

 Maggiono’s Little Italy

– Delectable Italian food
– Unique cocktails
– Large wine menu
 Services
 Chili’s Grill and Bar
– Youthful waiters and waitresses
– Laid back atmosphere
 Keeping true to the original restaurant

 Maggiono’s Little Italy

– A elegant dining experience
– Staff to make you feel like family
 Organizational Capabilities

 Routine visits from all levels of supervision

 Continuous management training for managers and

supervisors to improve effectiveness

 Strict product and safety specifications for restaurants and

suppliers

 Purchase commitment contracts to stabilize volatile pricing

 Encourage vendors to evaluate new technologies for food

safety and humane processing improvements.

 Sophisticated consumer marketing research

 Cost Advantage

 New kitchen equipment and technology = reduced

labor cost

 Effective management of food and fixed costs and

labor productivity

 Restaurant information costs = reduced operation

cost

 Improved service, lower costs with new models

 Company Awards
 Fortune Magazine – World’s Most Admired
Food Services Companies (2009)
 Institutional Investor Magazine –
America’s Most Shareholder-Friendly
Companies (2008)
 FORBES Magazine - 400 Best Companies
in America (2002-2007)
 National Retail Federation – Top 100 US
Retailers (2007)
 Additional Awards
 U.S Chamber of Commerce – Alfred P.
Sloan Award for Business Excellence in
Workplace Flexibility (2006)
 Fortune Magazine:
Most Admired Companies (2001 - 2006)
Top Companies for Women (2005)
Top 30 Companies for Minorities (2005 &
2006)
 Strengths
 International customer base
 Resource sharing
 Incentive Programs
 Consistent Quality
 Pricing/Cost Structure
 1700 Restaurants, 27 Countries
 Weaknesses
 Narrow focus, only 2 restaurant chains
– Darden = 6 primary chains
– Dine Equity = 3,000+ restaurants, 2 chains
 Opportunities
 Lots of cash from sale of On the Border,
use to refresh image and strengthen
customer base
– Remodel stores for a fresh, updated look
– New menu items
– Lower costs through new technology
 Threats
 Customers are picky, tastes change
frequently
– Use existing and new market research to
change menus

 Market downturn has shaken confidence

and limited family dining
– Cash and discounting are keys to success
 Recommendations
 Continue to lower costs

 Frequent menu changes/additions

 Highlight the quality of food for lower cost

 New supply chain technology to lower

costs
 Conclusions
 Atmosphere is a great strength
– All are welcome
 Cost structure and resource sharing are
key
 Unique menus for traditional food styles
 Affordable prices, low costs
 Broad customer base provides strength