Rubio's Case Analysis

8/8/2019 Rubio's Case Analysis

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RUBIO¶S RESTAURANTS

CASE ANALYSIS

Presented By: Group 3

Amit Goyal - 82004

Ankur Sachdev - 82005

Girish Chaudhary - 82013

Kanika Gupta - 82016

Monojeet Chakravorty - 82024

Rohit Raman - 82036



Who They Are??

Credited with introducing fish tacos to the U.S

Started in 1983

Founder by Ralph and Ray Rubio

Operate in growth-leading ³fast casual´ segment of restaurant

industry

Offer bold, distinctive, Baja- inspired food

Menu items include: Tacos, Burritos, Salads & Bowls,

Quesadillas, HealthMex® Offerings, Domestic/Imported Beer

96 restaurants across five states

Revenue at June 28, 2009: $187+ million



Fast Casual Segment Is..

Positioned between full service casual dining and Quick Service

Restaurants (QSRs)

Lower cost versus casual dining restaurants ± limited service format

removes the need for waiters and tips

Healthier foods and premium ingredients made- to- order

Limited meal-time without compromising quality

Upscale décor, pleasant ambience



Voice of Market«.

Customer Needs..

Value i.e. low cost

Convenience

Health

Quick service

PleasantEnvironment

Hot Food

Target Market..



Fast Casual Continues To Grow



IFAS Card«..Internal factors Weight Rating Weighted score Comments

Strength

Entrepreneurial Skills 0.20 4.5 0.9Was able to get the recipe and

use it for himself.

Delicious fast food recipe with

flexibility in consumption0.15 3 0.45

The food is made to order and

can be consumed in sitting as

well as take away.

Protein rich menu items good for health with low calorie

0.15 3 0.45 Sea food is protein rich and isgood for health.

Weakness

Lack of customer education and

social responsibility.0.20 2 0.4

Customer were not made aware

of the calorific value of the food

they were consuming and eating

food was not linked with a social

joy.Family members holding

positions in the top

management.

0.15 2 0.3Deprived Rubio from better ideas

that others can bring in.

Patio Seating 0.15 4 0.6The patio seating arrangements

cause seasonality in sales.

Total 1.00 3.1



EFAS Card«..Internal factors Weight Rating Weighted score Comments

Opportunities

Large market share available to

be captured.0.2 4.5 0.9

Large untapped market and only

one major competitor in the

market (Taco Bell)

Growth of economy. 0.10 2.5 0.25In terms of GDP and consumers

disposable income

High entry barriers for newentrants.

0.10 3.5 0.35 New entrants would needconsiderable time and effort to

build brand value and image.

High and fast returns 0.10 2.5 0.25 Break even point is achieved fast.

Threats

Increase in the number of fast

food chains and expansion of

existing ones.

0.15 2 0.3

Mc Donald and other big chains

expanding and continually trying

new things to delight its

customers.

Government Regulations. 0.15 4 0.6

Business involves licensing and

change in labour laws effect

human resources.

Strong bargaining power of

buyers0.10 2 0.2 Too many options

Risky venture0.10

2 0.2

A small ignorance can bring down

image considerably and may

result in huge loss.Total 1.0 3.05



Strategic Factors Analysis SummaryInternal factors Weight Rating

Weighted

score

Duration Comments

Entrepreneurial Skills 0.10 4.5 0.45Short Medium Long

X

Was able to get the recipe and use

it for himself.

Delicious fast food recipe with

flexibility in consumption0.10 3 0.3

X

The food is made to order and can

be consumed in sitting as well as

take away.

Lack of customer education and

social responsibility.

0.15 2 0.3 X

Customer were not made aware of

the calorific value of the food they

were consuming and eating foodwas not linked with a social joy.

Patio Seating 0.10 4 0.4 XThe patio seating arrangements

cause seasonality in sales.

Large market share available to

be captured. (o)0.15 4.5 0.675

X

Large untapped market and only

one major competitor in the market

(Taco Bell)

Growth of economy.(O) 0.1 2.5 .25 XIn terms of GDP and consumers

disposable income

Increase in the number of fast

food chains and expansion of

existing ones. (T)

0.10 2 0.2 X

Mc Donald and other big chains

expanding and continually trying

new things to delight its customers.

Government Regulations (T) 0.10 4 0.4 X

Business involves licensing and

change in labour laws effect

human resources.

Strong bargaining power of

buyers(T)0.10 2 0.2 X Too many options

Total 1.00 3.18



For io¶s Its or Fish os

Diff r ti t d Pr od ts d

D fi it ly the ste!!

Rubio¶s Variety is its ompetitive

Advantage..



Value Perception..

Affordability´ is also strong

Relative

Rubio¶s ³Value for the money´

score is very competitive



Competitive Edge.. Introduce Complex Products While

Reducing Throughput Time

Unique Competitive Position in

Growing Segment

Strong, Leverageable Team



PEST Analysis Framework

License & permit requirements for selling food

and alcoholic beverages

Compliance with applicable zoning, land use

and environmental regulations

Mandated health insurance

Stringent Teen labor laws

Higher unemployment due economic slow down

Credit crisis limiting the expansion

Rising raw real estate cost

Reducing disposable income

Entrance of Multinationals eg. PepsiCo through

Taco Bells

Customer ¶s becoming more health conscious

Increase in Dual income families result in lack of

spare time

Increase in income made dinning out affordable

Aging population & decline in teenagers

Automatic taco makers and soft-drink dispensers

Touch 2000: An automated ordering system

Outsourcing

Online reservations and ordering

Reduction of staff through automation

Political Economic

TechnologicalSocio Cultural



Marketing Strategies

Advertised in Print, Radio and television

Direct mail for customers within a 5-mile radius

Sponsor local athletic events

Have beer and wine licenses

Provide variety of promotional items for sale (T-shirts, bumper stickers and

decals)

Providing discount coupons to attract new customers

Reduce the menu price on special occasions

Restaurants are located near Residence and industrial or office areas with

Upscale atmosphere:- e.g. beach theme

Spacious seating for 50 people with an outdoor patio



They are Improving«.

Introduction of Nutritious and Sustainable and low fat menu.

Applesauce side option for Kid's Meals

Focus on causes that promote active, healthy living, and participate in and

contribute to many charities and events.

Go Green - Introduction of Eco Friendly Restaurants - Replaced plastic

packaging in favor of paper.

Introduction of recyclable goods, LEDs, low flow convenience room.

Acceptance of Bank cards and ATM cards as alternative methods for

payment.

Upgraded Labor Model.

Negotiate Lower Lease Terms and Build-out Costs 15% - 25%



Key Takeaways«.

Superior positioning in growing segment ± Fast Casual continues to be growth leader

We must consider how the population is segmented in order to understand

tomorrow's needs.

Rise in birth would indicate the future customers - So to plan in advance to catch

them young - This will help to have loyal customers.

Focus on differentiated products and Definitely ³The Quality & Variety´

Strong, leverageable management team would definitely help in long term growth.



Documents

Rubio's Case Analysis