Applebee analysis
Applebee is an American international company that deals with the development, operation, and franchising the Applebee’s bar and grill restaurant chain. As of the December of 2015, the company had at least 2,000 restaurants which were operating in Puerto Rico, United States and 15 others in other countries all which are owned and operated by the franchisees. The headquarters were in Kansas City after relocating from Lenexa in Kansas. In 2015, the owner announced that the headquarters will be consolidated in California. As a result of this issue, the president resigned effectively the following day after the announcement.
Applebee’s mainly focuses on the dining with the mainstream dishes such as chicken, pasta, salad, riblets, and shrimp. All the restaurants feature a bar that serves alcoholic drinks and beverages except in cases where the law has strictly forbidden the selling (R. Brenes et al., 2014). The company enjoys a variety of advantages that stem out of the restaurant's big chain making it likable and most preferred by most people in the United States. Considering this fact, the company enjoys a wide range of services and growth.
Strength
Some of the strengths of the company include a wide base in terms of the locations which are more than 2,000 operational outlets. This enables the company to get the benefits from being in many places which increases the level of earnings for the company. The company has been announcing numerous profits in many restaurants especially in places where the society has fully embraced its menu and mode of preparation. The prices of the meals and drinks are very convenient for the interested customers who allow the customers to feel free to enter into any of the restaurants and get the best from them. Standard prices also invite many people even if they do not know of the meals prepared by they get the advantage of experiencing high-class food services and at the same time quality meals. The research and development department is very active as it has been creating a lot of innovations which allow the company to stay informed and on time regarding the business (McMillan, 2012). The capital investment is very low since the many restaurants allow for buying in bulk which reduces the cost of commodities. The franchise set up is very well managed to make the advertisements, research and development, brand management and other departments comfortable for the business to thrive. When a business is well managed, there is the ultimate return which is success regarding every factor in the business.
Weakness
Such a big company does not lack some level of weaknesses which affect the business but they cannot make the business shut down. Some of the weaknesses include the menu not made for vegetarians who are also customers at the restaurant making it even harder for the business in some parts of the country. Vegetarians feel like the company does not support their preference especially since meat is the main menu in every restaurant (Walter, 2009). Micromanagement is another issue that is affecting the business in some locations. When employees are micromanaged, they feel threatened and some will retaliate and even cause trouble for the business. The geographic and the franchise set up is an issue when it comes to the monitoring of the business quality. The many restaurants can in many cases lack effective monitoring since most of the locations are far away from making it even harder for the management.
Opportunities
The high rise in demand for the beverages increases the chances for the success of the business. Many people who visit the restaurants are aged between the ages of 20 to 30 and this shows that the business is still in the rising stage. The youths are in large numbers especially in America meaning that the future of the business is still objected towards success. Clubbing will also be enhanced since there are a lot of youths who usually club at the restaurants in the diversified location the business have ventured (McMillan, 2012). As the call for many people to reduce on the number of calories taken, the business is moving towards offering a variety of meals with a low-calorie count which will attract business in many parts of the country.
Threats
The late night clubbing of the business is causing a lot of trouble for the society and many regards it as dangerous during the late nights. The casual dinners in the restaurants where there is clubbing are discouraged due to the noise and disturbances they get from the bar. Families cannot enjoy a good silent and comfortable meal while there is a bar that goes all through the night. Competition from other local businesses which offer causal dinners to their customers threatens the business in huge levels.
To boost the level of engagement at Applebee restaurant with the neighborhood for the generation of a social media buzz, the company which is regarded as the 10th largest chain stores in terms of sales turned the Instagram page into a custom feed for at least one year from 2014. This was a strategy aimed at ensuring that the market is wide enough for the products developed at the chain store and also makes the page more popular in the general society. After the company has allowed the customers to report their post on any media page, the restaurants opted to even make the persons reposting their photos even more interesting by reposting their photos and feedback on the restaurant's page as a way of recognition (Walter, 2009). Over the next five years, the company is headed for success with numerous numbers of people streaming in to have a taste of what the company is offering. The current stores are still not enough and the company wants to expand its operations even wider to take care of every needy market. Such goals can only be identified if there is quality management, investing in research and development and strategizing on the best methods for trade. Re-launching of the steak meal by the company is a strategy that is meant to increase the number of customers as well as reduce competition for the same menu with other restaurants.
The recent announcements that the company will close at least 100 stores mean that there will be job layoffs and many other challenges that come with lack of employment for the employees. The company exit strategy is seen as a long-term negative while in the real sense it is a positive long-term strategy aimed at ensuring that the business goes international (R. Brenes et al., 2014). The early announcement is a perfect strategy for dealing with the issue of unemployment for the company. Leaving with dignity is the ultimate choice and strategy for the company in order not to lose the market to competitors while trying to move to the global market.
References
McMillan, T. (2012). The American Way of Eating: Undercover at Walmart, Applebee's, Farm Fields and the Dinner Table. Simon and Schuster.
- Brenes, E., Chattopadyay, A., Ciravegna, L., & Montoya, D. (2014). Pollo Campero in the USA. Management Decision, 52(9), 1649-1679.
Walter, S. (2009). Expansion Opportunities for H&M in Asia-Market Analysis.
