The document analyzes the market share and financial performance of several restaurant chains, finding that Darden Restaurants has the largest share at 62% and the top four companies combine for 28.8% market share. It also compares the business models and financial metrics of Red Robin and Buffalo Wild Wings, noting that Buffalo Wild Wings has a higher profit margin at 5.69% of sales compared to Red Robin's 2.09% due to its focus on alcohol sales. Finally, it discusses strategies these companies could employ related to marketing, operations, and financial management to improve their competitive positions.

1. Alexandra Glazer
Emir Dereli
Leigh DeStefano
Shayna Duff
Wingkai Li

2. Darden Restaurants, Inc
Market Share
Brinker International Inc
CBRL Group, Inc
14% Bob Evans Farms, Inc
DineEquity Inc
7%
4% Buffet Holdings, Inc
3%
*Red Robin
62% 3% Denny’s Corporation
3%
2% Buffalo Wild Wings
Other
1% 1%
Four Company Concentration Ratio: 28.8 %
HHI Index: 364.78

3.  Substitutes
 Entry Barriers
 Supplier & Buyer Power

4. PRICE
Red Lobster
LongHorn Steakhouse
Olive Garden
Chili’s Grill and Bar
Red Robin Gourmet Burgers
Buffalo Wild Wings
QUALITY

6. •Freshest •430 locations
Ingredients •Shopping
plazas
Product Place
Promotion Price
•Bottomless •Price control
Fries/Drinks issues
•Kid Oriented •Average check
$11.42

7. -Several locations & fluctuations in target market
-Advertising costs would stabilize and be more
effective
- By stabilizing brand reputation
-lose some customers
-new guests from the desired target market
-increasing revenue

8.  Cost slightly increase
 Original decrease in
revenue outweighed by
increase in revenue due to
the nature of the
repurchasing cycle
 Revenue increase at
higher rate than
costs, increasing profit
margin
Financial Connection Loading Oriented Strategy

10. Red Robin Buffalo Wild Wings
6% Food & Non Food & Non
Alcoholic 24% Alcholic
Beverages Beverages
Alcoholic
Beverages
Alcoholic
Beverages 76%
94%

11. Red Robin Buffalo Wild Wings
2009 2008 2007 2009 2008 2007
Profit Profit
margin % 2.09% 3.12% 4.01% margin % 5.69% 5.78% 5.96%
of sales of sales
Asset Asset
1.40 1.43 1.39 1.74 1.73 1.67
turnover turnover
Return on Return on
assets 2.93% 4.45% 5.59% assets 9.92% 10.02% 9.97%
(ROA) (ROA)
Equity Equity
2.08 2.27 1.93 1.47 1.42 1.39
multiplier multiplier
Return on Return on
equity 6.10% 10.09% 10.78% equity 14.62% 14.24% 13.87%
(ROE) (ROE)

12. Red Robin Buffalo Wild Wings
 COGS % of sales  COGS % of sales
‘09: 23.68% ‘09: 27.40%
 Profit Margin % of  Profit Margin % of
sales ‘09: 2.09% sales ‘09: 5.69%
Alcohol costs more to purchase, but more money is made off of
selling alcohol, thus profit margin increases

14.  Red Robin’s internal structure
•Employees
•Guests
•Shareholders

15.  The Operating cost of Red Robin is higher
than that of Buffalo Wild Wings
◦ Red Robin values their employees first
◦ RR labor costs 34.78%
◦ BWW labor costs 29.99%
◦ RR’s lower profit margin percent of sales of 2.09%
compared to BWW 5.69%

16.  Marketing  Microeconomics
◦ Targeting the right market ◦ Red Robin is going to
◦ Red Robin Revenue ‘08-’09: return to television ads
-3.24% in 2010 but fear they
◦ Buffalo Wild Wings Revenue may not be able to
‘08-’09: +27.6% compete with
competitors
2009 2008 2007 ◦ An unnecessary
Advertising expense
Costs ◦ Successfully compete
Red 17.2 mil 24.4 mil 16.5 mil against competitors
Robin with established
programs
Buffalo 17.5 mil 13.5 mil 10.5 mil
Wild
◦ Promotions to keep up
with competitors
Wings

17.  Cohesive Brand
Reputation
 Returning Guest
Incentives
 Utilize Late Night
 Maximize profit
margin
 Increase ROE