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|====Bargaining Power of Suppliers====||====Bargaining Power of Suppliers====|
|-||In the restaurant industry, suppliers have a fair amount of bargaining power. A company like Red Robin, who specializes in burgers, has a high demand for quality beef suppliers. Suppliers of beef would be able to have the upperhand in pricing because the majority of Red Robin's products will come from them. At the same time Red Robin has bargaining power with suppliers in the other food items it provides. Toppings and condiments which are not essential to every burger are of much less concern to Red Robin. In turn Red Robin has the ability to shop around suppliers to look for the lowest price whereas competitors with a more diverse menu, do not have this option.||+||In the restaurant industry, suppliers have a fair amount of bargaining power. A company like Red Robin, who specializes in burgers, has a high demand for quality beef suppliers. Suppliers of beef are able to have the upperhand in pricing because the majority of Red Robin's products come from them. A shortage of beef or spike in the price would not reduce the volume that Red Robin purchases.|
|+||At the same time Red Robin has bargaining power with suppliers in the other food items it provides. Toppings, condiments and other food items which are not essential to every burger are of much less concern to Red Robin. In turn Red Robin has the ability to shop around suppliers to look for the lowest price whereas competitors with a more diverse menu, do not have this option.|
|====Barriers to Entry====||====Barriers to Entry====|
Red Robin Gourmet Burgers, founded in 1969, is a chain of dining restaurants. It is headquartered in Greenwood Village, Colorado. They are well known for their gourmet burgers and family dining experience. Throughout the 2000s Red Robin struggled financially, along with the rest of the restaurant business. However, Red Robin closed out 2010 with a strong fiscal year thanks to new management strategies implemented over the past couple years.
In 1985, Red Robin expanded outside of the United States opening up in Burnaby, British Columbia. In the year 2000, Red Robin merged with Snyder Group which allowed it to expand even further nationwide. 
Red Robin went public, July 19, 2002, with an initial public offering. Each share was worth $12 and four million shares were sold. 
Currently, Red Robin has over four hundred restaurants located throughout the United States and eighteen in Canada. 
Red Robin's main competitors include other companies in the restaurant industry such as Applebee's and California Pizza Kitchen. Red Robin competes for both its workforce and clientele basis within this industry. Having the ability to retain team members and develop recurring customers is pertinent for any restaurant. Currently, Red Robin's earnings per share is almost twice that of the industry average. Major competitor CPK saw negative growth over the past year while Red Robin was strong at 5.7%. However this was well below the industry average of 8.9%.
Since the economic downturn Red Robin has stayed strong while many companies in the restaurant business have faltered. One competitor, O'Charleys, closed 16 of its operating restaurants this past December. Larger restaurant companies such as Red Robin, Applebee's and California Pizza Kitchen are benefiting from their new customers.
The threat of substitutes is high. Red Robin is directly competing with California Pizza Kitchen, Applebee’s, and T.G.I. Fridays. It is also competing with other restaurants such as Burger King, Wendy’s, and McDonald’s who also are well known for their burgers.
Customers might switch from eating at Red Robin’s if there are other restaurants trying to compete with our customers. The competing restaurants might offer better food choices that are higher quality or they could offer the same food as Red Robin but for better prices. Customers can even buy frozen burgers at grocery stores for much cheaper prices but obviously not as high of quality.
Not only are they competing with casual dining restaurants but they are also competing with fast food. Some customers may not have the time to go to a sit down restaurant so a fast food chain is a better option such as Burger King or McDonald’s. However, by going to a fast food chain the quality of the product is much less than what a customer would get at Red Robin.
Red Robin has a large customer market and customers are not as demanding. Usually, customers are low to middle class and do not expect/demand too much when they are going out to eat for dinner. Customers have a high bargaining power with Red Robin because they can easily switch restaurants.
In the restaurant industry, suppliers have a fair amount of bargaining power. A company like Red Robin, who specializes in burgers, has a high demand for quality beef suppliers. Suppliers of beef are able to have the upperhand in pricing because the majority of Red Robin's products come from them. A shortage of beef or spike in the price would not reduce the volume that Red Robin purchases.
At the same time Red Robin has bargaining power with suppliers in the other food items it provides. Toppings, condiments and other food items which are not essential to every burger are of much less concern to Red Robin. In turn Red Robin has the ability to shop around suppliers to look for the lowest price whereas competitors with a more diverse menu, do not have this option.
The threat of entry of new competitors is high. It is easy for someone to open a restaurant to sell burgers. Burgers are a very popular food in the United States. However, Red Robin has a very strong brand image. When a customer goes to Red Robin they know to expect huge, delicious tasting burgers that will not burn a hole in their pocket. Not many other restaurants would be able to offer the same type of service for the price that Red Robin can do it. This makes customers loyal to Red Robin and more likely to eat dinner there, instead of going to some other restaurant for dinner. In addition, Red Robin has a very strong brand image. They run commercials on television and even have a catchy slogan, “Red Robin Yum.”
Red Robin has a few strengths in this industry. This includes locations, with over 400 restaurants all over the United States. They also have the quality processes and procedures, not only in their food but in their customer service. All Red Robins stand by honest to goodness which includes fresh quality ingredients, made to order, and served with pleasure. Fresh quality ingredients include fresh, never frozen meats and using zero trans fat oils. Made to order is possible since each and every order is made just the way you want it. Served with pleasure is the energy and vibrancy every red robin has with its employees to show how dedicated and proud the employees are to be working there.  
Red Robin also has undifferentiated products as a weakness, since burgers and several other items on the menu are also available on the competitors menu.
In 1985 Red Robin entered into the international market in Canada. Since the company is growing to new locations, they are also growing into new markets as they are selling to new customer segments. Some competitors have also closed, such as Charley, opening more opportunity to gain market share.  
Benihana is one of the largest Asian restaurant chains in the United States by revenue and restaurant locations. Benihana's core restaurants continue to be its "Benihana" teppanyaki-style Japanese restaurants, which account for approximately 68% of the company's revenue. Benihana also operates two other Japanese food concepts, RA Sushi restaurants and an upscale Japanese fusion and sushi restaurant, Haru.
Buffalo Wild Wings BWLD
Buffalo Wild Wings operates 232 company owned restaurants and 420 franchised restaurants in 42 states. The firm's principal business is the Casual restaurant business. The bulk of their revenues come from restaurant sales at their company-owned restaurants (91%). Food and nonalcoholic beverages accounted for 76% of restaurant sales, with the remaining 24% coming from alcoholic beverages. The menu item with the highest sales volume is chicken wings at 21% of total restaurant sales. Franchise fees and royalties are 9.3% of revenues.
Brinker International EAT
Brinker's International Inc. (EAT) owns and franchises four brands of causal dining restaurants: Chili's, Macaroni Grill, On the Border, and Maggiano's. Brinker's restaurants can be found nationwide, including Washington D.C. and it has a small international presence. The company earned $3.6 billion in revenue and $79 million in net income in 2009.
DineEquity, Inc. DIN
DineEquity owns two restaurant chains in the casual and family dining category, Applebee's Neighborhood Grill and Bar and the International House of Pancakes (IHOP). Overall, the company owns 1,976 locations of its Applebee's restaurants and 1,344 IHOP restaurants worldwide. The company plans to open 50 to 65 new Applebee's restaurants and 65 to 70 IHOP restaurants in 2008, the majority of which will be franchisee-operated.The company recognizes its business segments as franchise operations, company restaurant operations, rental operations and financing operations across its two restaurant chains.
 *Numbers represent data from 2009 fiscal year
Current Economic Conditions
Current uncertainty in economic conditions and the existence and speed of any economic recovery may have an adverse effect on the businesses, results of operations and financial condition of the Company. These conditions include: continued unemployment, weakness and lack of stable improvement in the housing markets, downtrend in residential or commercial real estate development, volatility in financial markets, pressures of inflation, and reduced consumer confidence. As a result, customers may continue to remain hesitant about the economy and maintain/further shrink their already lowered level of optional spending. This could impact both the frequency and value of a customer dining out, thereby decreasing restaurant revenues and potentially adversely affecting the operating results.
Weather is the most powerful force on this Earth. With the recent worsening weather conditions, Red Robin faces significant risks that might cause actual quarterly and annual data to fluctuate significantly or even be affected negatively. Extended periods of extreme and unexpected weather will affect the volume of traffic at the restaurants in a negative fashion. It will also limit the availability and cause shifts in the price of key commodities such as beef, poultry, potatoes, and other important ingredients in their products.
When looking at a family restaurant, HR Management does not jump out as a core strategy. Employee turnover can be high and coordinating with store management may not be easy. Red Robin however, puts its employees first. By offering competetive benefits to base employees (Team Members), Red Robin makes itself an attractive employment choice for career workers in the restaurant business or just students looking for a part time job. Red Robin's employee benefits plan includes, but is not limited to, a 401k option, health and other insurance, and vacation time.
At first glance it seems outrageous to offer these types of benefits to someone who may not be with the company for more than a few months, but for all of these employees who leave, Red Robin ensures the longevity of several others. This can dramatically reduce on training and other costs related to new workers in the business. In such a competitive market where the talent pool is interchangeable, retaining workers could be pivotal to a restaurants success.
In addition to benefits for servers and other "Team Members", Red Robin has an extensive benefit package for those in management. All members of store managment are eligible for quarterly bonuses tied to sales, customer count, and income before operating expenses. Tenure, team growth, and leadership are also merits that are rewarded by Red Robin. These attractive bonuses help ensure longevity of management within the business, and may also attract management from competing restaurants.
In 2008 and 2009, Red Robin had to reevaluate their marketing strategies as the recent market downturn had caused a decline in customer traffic to their restaurant. Their customer traffic had also declined due to a decision to cut down on the use of national television marketing. Red Robin had to create an image for itself that stood out from all the national restaurant chains they competed against. In 2010, Red Robin decided to put a lot of marketing research towards how their guests viewed their business; what were their strengths, what were their weaknesses and how could they use these in a marketing plan to increase their guest traffic? They focused on their signature burgers and their fun friendly customer service. Red Robin conducted a limited time promotion with ten local television channels; with the success they received they concluded to continue to utilize national television limited time promotion. This is why Red Robin’s slogan has become so well known is because of all their national television coverage; Red Robin…Yum…followed by a limited time promotion that entices families to come in for a low priced burger and a good time.
Red Robin provides a memorable dining experience with a variety of American food at a low price. Red Robin Gourmet Burgers is just that a burger oriented food chain designed to give guests a variety of burger options and toppings to chose from anything from vegetarian to Hawaiian to BBQ. All their burgers come with an endless supply of steak fries. All of the above plus a happy friendly server who makes a connection with you and your family all for an average price per person per check of $11.63 including beverages.
Another strategy Red Robin has put in place is opening less restaurants in 2010 than the previous years. By decreasing the number of new restaurants opened Red Robin can focus on their developments more closely. New Red Robin restaurants, in the first year, tend to have higher sales volumes than other com-parables and but end up having lower profits. In order to balance this out and normalize the new restaurants faster Red Robin has decided while still continuing to expand to do so at a slower rate. This also gives time for Red Robin to plan for future sites carefully. Each Red Robin is placed at a very specific location; always within an area of population with 70,000 people within a 3-mile radius or 100,000 people within a 10-mile radius, having mostly families with the median income being at least $65k per year.