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Red Lobster Competitive Landsacpe (American Consumer Casual Dining (Most…
Red Lobster
Competitive Landsacpe
Americans spent 40% of their
dollars away from home
48% of this spend was
on quick serve category
(Fast Food)
McDonalds
and Subway
No Table Service
31% was spent on casual
dining
Full service restaurants
Applebee's
Red Lobster
Cheques
Averaged
$8-$20
Had Beer and
Wine Licenses
Remaining ~21 % was spent on
Family dining and
fine dining
Similar to casual dining
No Beer and
Wine licenses
Cheques above $20
Service quality
Impeccable
%Unknown
Recent Development
Fast casual
Like quick serve
food made on
order
Restaurant env nicer
Prices were higher
Premium Casual
Like casual dining
More culinary forward food
more refined atmosphere
moderately higher prices
American Consumer
Casual Dining
Two meals per month
at casual dining
Restaurant
Had multiple options
Most common option
Bar & Grill
Contemporary American
option
Served Hamburgers
and French Fries
Largest Bar and Grill chain
was AppleBee's
1900 locations
Next largest were
Chilli's,
TGI Friday's
Ruby Tuesday
Three other large
casual dining chains
Outback Steakhouse
Olive Garden
Red Lobster
All these were together
known as Big 7 casual
dining chains
Accounted for
33% of 22,000
casual dining restaurants
in AMerica
Exihibit 4
Other Dining Restaurants
Medium Sized
Less than 200 locations
On The Border
Mexican concept
Maggiano's
Italian concept
Brinker
Owned
On The Border
Maggiano's
Chilli's
Premium Casual
Average Cheque $20
Bar/Grill
Cheesecake Factory
PF Chang's
Asian Concept
Considered appropriate
for special occasions
Graduation Dinners
Anniversaries
Household income of
large %consumers
100,000$
Red Lobster
Despite its high price point
Not part of premium category
Prices were higher due to
higher cost of Seafood
150,000 independent
casual dining restaurants
Urban and Rural Concentration
Chains focussed on Suburbs
Casual Dining seafood
Long John Silver's
Comparable to the
size of Red Lobster
in terms of number of
locations
Quick Serve
therefore, not
a competitor for
Red Lobster
Joe's Crab Shack
113 locations
Direct competition
Price point $19
Bonefish
150 locations
southwest and midwest
Avrage Cheque $26
McCormick and Schmick
87 locations
$39 price point
8000 Casual Dining Restaurants
80% Independently
Owned or less than 10
locations
At 43%, Red Lobster had highest Market
Share
2008-2009 Recession
2001-2006
Large chains were
opening new locations
at 6% per year
Growth rate slowed in 2007
Restaurants began
closing in 2008-2009
Slow growth
expected 2010-2011
Sales were down 0.4%
in 2008