• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outback Steakhouse has always had a formula for success. From its tiny beginnings in 1987, to

Extracts from this document...

Introduction

Shyamal Patel October 13, 2005 MGTG 200 Professor Goldberg Thursday 5:20 Outback Steakhouse Case 1) What are the standout business and economic characteristics of the restaurant industry? * Restaurant-industry sales are forecast to advance 4.5% in 2003 and equal 4% of the U.S. gross domestic product. * The overall economic impact of the restaurant industry is expected to exceed $1 trillion in 2003, including sales in related industries such as agriculture, transportation and manufacturing. * Food and Drink revenues were estimated at $426 billion. * More than seven out of 10 eating-and-drinking places are single-unit (independent) operations. * The restaurant industry employs an estimated 11.7 million people, making it the nation's largest employer outside of government. * The restaurant industry provides work for more than 9 percent of those employed in the United States. * Restaurant industry employment was expected to reach 13.3 million by 2012. * Eating-and-drinking places employ more minority managers than any other industry. * Two-thirds of supervisors in 2000 were woman, 16% were African-American, and 13% were Hispanics * A typical household spent $2,116 on food away from home. * The largest spenders in the industry had a household income of over $70,000 ages between 45-54 and children over 18. 2) What are the key success factors in the casual dining portion of the restaurant industry? ...read more.

Middle

These two tests are requirements for every level of employee, down to the busboys. But because Outback is a steakhouse, steaks make up 55 percent of the chain's sales. Reliance on steaks in a world where cholesterol and fat awareness is at an all-time high could be a weakness for Outback. Furthermore, Outback's insistence on top-quality food products results in food costs that are higher than those of most competitors. Therefore Outback must either deal with lesser profit margins or charge their customers higher prices for meals, an option that is definitely not attractive to diners. Currently the average check price at an Outback restaurant is $18. Despite the fact that sales have risen, Outback stock has slid due to fears of overexpansion. Outback has invested in the Carrabba's Italian Grill chain as well as having entered into joint ventures for three other restaurant concepts. Join ventures like that with Carrabba's are an attractive opportunity for growth for Outback. In the Carrabba's deal, Outback pays construction costs and splits earnings with Carrabba's. Finally, Outback officials recently announced plans to open one of the company's Australia-themed restaurants in Australia. It has been a long time coming, as the company has been in business for 13 years and has yet to move into the country that inspired its existence. ...read more.

Conclusion

Also the restaurant industry faced various federal, state, and local laws. Each restaurant was subject to alcohol licensing and regulations by certain government authorities. Each restaurant establishment needed to apply to a state to for a permit to sell alcohol. In addition to the other issues and condition, there were control regulations put in place for daily operations, which also included minimum age of patrons and employees, house of operations, advertising, wholesale purchasing, and inventory control. 7) What recommendations would you makes to Harry Gauntlett to keep increasing sales and profit margins in his stores? The recommendations I would make to Harry Gauntlett is pretty simple. I would higher prices of meals two to three dollars per meal, but also keep his niche which is a customer friendly, high quality meal, "no rules" environment to dine in. This recommendation would not only keep his customer cliental but also increase his customer base and increase his profit margins and sales. Outback Steakhouse is unique for its quality and taste of food, and its casual dining atmosphere. That uniqueness will allow Outback to increase its price without losing customers. Also according to the restaurant industry trends, the majority of people that eat out have an annual income of $70,000 or more. Raising the price a couple of dollars will not hurt many of Outback Steakhouse customers financially. Therefore, raising prices would be very beneficial to Harry Gauntlett and the company's shareholders. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    ASDA's Ownership

    4 star(s)

    Figures also show that women working in Great Britain had a median net income of 56 per cent of that of men. This was surveyed between all family types (i.e. this was surveyed from Black, Asian, Christian etc families). The figures also show that figures grew by nearly 10%.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    This is because they can see the economy is getting better and they are making the most of the current situation, for example interest rates are still low and this would be beneficial to them if they need to take out loans or mortgages to help them to grow the business.

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    were interested in the prices of the product and they like the price to be reduced because they are going to benefit from it while the local community were interested in environmental issues because if they do not recycle the product it is going to affect them.

  2. What Really Determine the Payment Methodsin M&A Deals.

    This result indicates that a target with a lower level of managerial ownership has a higher probability to be contested by bidders. With reference to the relationship between managerial ownership and the forms of acquisition (contested or uncontested), their

  1. Peacocks - case study

    If however they were in a permanent job with good prospects they would feel safer spending their money. Consumer demand is also affected by interest rates. If interest rates are high then mortgages and loans are more expensive so customers have less disposable income.

  2. Business and Management

    on a specific day * breaks and lunches * briefing matters (what's happening on each day - day to day basis) * meetings or events Tesco's strategic aim is to become a strong UK core business, by keeping their focus on trying to improve what they do for their customers,

  1. Structure of the Leisure & Recreation Industry.

    They can be recognised by the letters 'Ltd'. Private sector organisations can get the money they need to invest in their business from several different sources: * Personal savings - owners provide money themselves * Loans - banks, building societies, insurance companies all lend to private sectors * Private shares- a private limited company can sell shares in

  2. Applied Business. Investigating a business Preston Manor High School

    Preston manor specializes in maths and science which makes them stand out with their competitors. This affects their objective to ?Strengthen and extend curriculum enhances.? because they have to focus on providing the right resources and courses to extend curriculum enhancement and making the school focus on the objective to perform better than the other schools.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work