High-End Restaurants High-End Restaurants Around the WorldAround the World

Shelly AggarwalShelly AggarwalJin LiangJin Liang

Nate HarmannNate Harmann

BADM 381 – Professor AguileraBADM 381 – Professor AguileraOctober 7, 2008October 7, 2008

Outline of our PresentationOutline of our Presentation

I. Successful restaurant franchises from the I. Successful restaurant franchises from the U.S. U.S.

II. Successful Indian international II. Successful Indian international restaurantsrestaurants

III. Difficulty for Chinese restaurantsIII. Difficulty for Chinese restaurants

IV. Successful Japanese international IV. Successful Japanese international restaurantsrestaurants

V. Opportunities for expanding V. Opportunities for expanding internationallyinternationally

Successes from the U.S. Successes from the U.S.

Brinker InternationalBrinker International

► Operate Romano's Macaroni Grill, On the Border Operate Romano's Macaroni Grill, On the Border Mexican Grill, Maggiano's Little Italy, and Chili'sMexican Grill, Maggiano's Little Italy, and Chili's

► Diversified foods that creates a multicultural Diversified foods that creates a multicultural portfolio with global brands portfolio with global brands 

► "Our philosophy is based on the belief that when "Our philosophy is based on the belief that when diverse thoughts and perspectives are integrated diverse thoughts and perspectives are integrated into daily operations, we can all enjoy the fruits of into daily operations, we can all enjoy the fruits of our success." – Ron Kirk, Board of Directors our success." – Ron Kirk, Board of Directors

► http://www.youtube.com/watch?http://www.youtube.com/watch?v=k69oA6lUQeE&NR=1 v=k69oA6lUQeE&NR=1

Brinker InternationalBrinker International► 1 million+ people dine at 1 million+ people dine at

Brinker restaurants daily Brinker restaurants daily worldwide worldwide 

Annual Sales per restaurant:Annual Sales per restaurant:► #2 Maggiano's ($9.4 #2 Maggiano's ($9.4

million)million)► #7 Romano's Macaroni #7 Romano's Macaroni

Grill ($3.3 million)Grill ($3.3 million)► #8 Chili's Bar and Grill #8 Chili's Bar and Grill

($3.2 million)($3.2 million)► #10 On the Border ($3.1 #10 On the Border ($3.1

million) million)

Reasons for SuccessReasons for Success► An expanding middle class and faster growing An expanding middle class and faster growing

economies overseas have made international economies overseas have made international expansion an ongoing focus  expansion an ongoing focus  

► Brands are highly popular with guests seeking Brands are highly popular with guests seeking higher quality food and American hospitalityhigher quality food and American hospitality

► Competition in the casual dining segment is not Competition in the casual dining segment is not well- developedwell- developed

► Foreign markets provide for competitive Foreign markets provide for competitive advantage in terms of cost of food, facilities, advantage in terms of cost of food, facilities, and laborand labor

► Lower dining costs makes brands more Lower dining costs makes brands more accessible to broader segment of populationaccessible to broader segment of population

Future OpportunitiesFuture Opportunities

►Mainly franchise now (which provides Mainly franchise now (which provides for lower economic risks) but are for lower economic risks) but are looking into joint ventures that would looking into joint ventures that would increase financial opportunities for the increase financial opportunities for the company company 

► In Mexico, looking to increase from 53 In Mexico, looking to increase from 53 to more than 100 restaurants in the to more than 100 restaurants in the next few years next few years

Successes from IndiaSuccesses from IndiaSaravana BhavanSaravana Bhavan

► 25 locations in India and 16 other locations in 7 countries 25 locations in India and 16 other locations in 7 countries (Canada, U.S., England, U.A.E., Oman, Malaysia, (Canada, U.S., England, U.A.E., Oman, Malaysia, Singapore) Singapore)

► Full-service restaurants, fast food, carry-out, delivery, Full-service restaurants, fast food, carry-out, delivery, cateringcatering

► 1981 – founded by Mr. P Rajagopal aka Annachi1981 – founded by Mr. P Rajagopal aka Annachi► First branch opened in Chennai, India First branch opened in Chennai, India

– – Hotel Saravana Bhavan Hotel Saravana Bhavan ► Menu includes both North and Menu includes both North and

South Indian food, Chinese food, South Indian food, Chinese food, Desserts, Beverages, Baked goods, Desserts, Beverages, Baked goods, and Ice cream and Ice cream

Expanding InternationallyExpanding Internationally

►Generally, real estate in India is too Generally, real estate in India is too expensive and encourages entrepreneurs to expensive and encourages entrepreneurs to look at destinations, such as the UK, the US, look at destinations, such as the UK, the US, and the Middle Eastand the Middle East

►Higher rate of return in those areasHigher rate of return in those areas

► Customers in India are more price sensitive – Customers in India are more price sensitive – concept of specialty restaurants not as concept of specialty restaurants not as popularpopular

Constant growthConstant growth

► Study by McKinsey shows that Indian food market Study by McKinsey shows that Indian food market will grow two-fold 2025 (in India)will grow two-fold 2025 (in India)

► In urban areas, snacks are more popularIn urban areas, snacks are more popular snacks specifically grow 15-20% annuallysnacks specifically grow 15-20% annually

► Great potential for India to become a reliable Great potential for India to become a reliable outsourcing partner in food sectoroutsourcing partner in food sector

► Becoming increasingly popular in the US and the Becoming increasingly popular in the US and the UK UK Large populations, great variety, and increased Large populations, great variety, and increased

exposureexposure

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=bZeb7fh4ER8=bZeb7fh4ER8

Chinese RestaurantsChinese Restaurants

► Chinese food is too commonChinese food is too common► Too many different types of Too many different types of

Chinese dishes existChinese dishes exist► Too often fast food and takeout Too often fast food and takeout

Chinese restaurants serve Chinese restaurants serve “Americanized” Chinese foods“Americanized” Chinese foods

► Real authentic Chinese might not fit Real authentic Chinese might not fit the tastes of that specific countrythe tastes of that specific country

Top Japanese RestaurantTop Japanese RestaurantBenihana IncBenihana Inc (meaning “red flower”) (meaning “red flower”)

► First restaurant opened in 1964 in First restaurant opened in 1964 in New YorkNew York

► Founded by Rocky AokiFounded by Rocky Aoki► Employs 5,000 Employees world wideEmploys 5,000 Employees world wide► 90 Locations in the US, 19 international 90 Locations in the US, 19 international

locationslocations► One of the company’s main selling point are One of the company’s main selling point are

“teppanyaki”, which is grill meat in an iron “teppanyaki”, which is grill meat in an iron plateplate

► Another main selling point is the chef cooks Another main selling point is the chef cooks the food in front of the customersthe food in front of the customers

► Benehana is the founder of this type of style Benehana is the founder of this type of style in the USin the US

Reasons for SuccessReasons for Success

► Adapted American style of cooking and Adapted American style of cooking and serving authentic Japanese foodserving authentic Japanese food

► Unique dining experience Unique dining experience (the first Japanese restaurant (the first Japanese restaurant to cook in front of customers to cook in front of customers in the US)in the US)

► http://www.youtube.com/watch?v=R-http://www.youtube.com/watch?v=R-mgolJ5t00mgolJ5t00

Opportunities for all Markets Opportunities for all Markets

►Open the franchise in new or existing Open the franchise in new or existing high quality hotelshigh quality hotels Make deals with certain high quality Make deals with certain high quality

international hotel franchisesinternational hotel franchises Can guarantee a steady flow of customers Can guarantee a steady flow of customers

and customers from all over the worldand customers from all over the world Can help gain recognition through Can help gain recognition through

international customersinternational customers Positive word-of-mouth through satisfied Positive word-of-mouth through satisfied

customerscustomers

ConclusionConclusion

►Many high-end, full-service restaurants have Many high-end, full-service restaurants have been able to expand by opening up new been able to expand by opening up new locations internationallylocations internationally

► These restaurants are further popularized by These restaurants are further popularized by media exposure and high ratings (Michelin media exposure and high ratings (Michelin rating system) rating system)

► International expansion is easier in some International expansion is easier in some markets than others and only certain types markets than others and only certain types of restaurants succeedof restaurants succeed

SourcesSources

►http://www.indianrealtynews.com/real-http://www.indianrealtynews.com/real-estate-india/indian-restaurants-estate-india/indian-restaurants-expanding-overseas.htmlexpanding-overseas.html

►http://www.ibef.org/artdisplay.aspx?http://www.ibef.org/artdisplay.aspx?tdy=1&art_id=19844&cat_id=60tdy=1&art_id=19844&cat_id=60

►http://www.saravanabhavan.com/http://www.saravanabhavan.com/►http://www.benihana.com/http://www.benihana.com/