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Industry Analysis Presentation


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Industry Analysis of Restaurant Industry.

Spring 2006 college Undergrad

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Industry Analysis Presentation

  1. 1. OSI Restaurant Partners, LLC Joey Taylor & Nicholas Carthen
  2. 2. OSI affiliates
  3. 3. Industry Definition <ul><li>The casual dining industry are full service sit down restaurants that generally serve alcohol and sell entrees. </li></ul>
  4. 4. Industry Attractive or Not? <ul><li>The industry is not attractive. </li></ul><ul><li>Rising gas costs </li></ul><ul><li>Better downscale choices </li></ul><ul><li>Higher credit card costs </li></ul><ul><li>Weaker real estate market </li></ul>
  5. 5. Threat of new entry <ul><li>Barriers to entry low due to: </li></ul><ul><li>No government Regulations </li></ul><ul><li>No Patents on certain dishes </li></ul>
  6. 6. Power Of Suppliers & Buyers <ul><li>Suppliers: High Power </li></ul><ul><ul><li>No substitute for the quality of products </li></ul></ul><ul><ul><li>Control prices of products </li></ul></ul><ul><ul><li>Buyers: High Power </li></ul></ul><ul><ul><li>Many choices of restaurants </li></ul></ul><ul><ul><li>Simply a desire not a necessity </li></ul></ul><ul><ul><li>Economic slowdown </li></ul></ul>
  7. 7. Power of Substitute Industries <ul><li>Job Trends </li></ul><ul><li>Emergence of Fast Causal Dining (Panera Bread) Quality products….Face Pace environment </li></ul>
  8. 8. Intensity Of Rivalry <ul><li>If nobody else can do it, then you have tremendous power over competitors. </li></ul><ul><li>Enormous amount of restaurants in this industry. (new entrants everyday) </li></ul>
  9. 9. Future of Industry
  10. 10. Industry Opportunities & Threats <ul><li>Opportunities </li></ul><ul><ul><li>Research & Development </li></ul></ul><ul><ul><li>New Concept </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Increasing raw material prices </li></ul></ul><ul><ul><li>Intense competition </li></ul></ul>
  11. 11. Specific Recommendations <ul><li>Leave the dinner only concept </li></ul><ul><ul><li>Family restaurants (breakfast, lunch, and dinner) </li></ul></ul><ul><li>U.S. organizations must explore international markets </li></ul><ul><li>Increase emphasis on take-out </li></ul>