Roberto Pesi Restaurants Inc. (Case Study)

Roberto Pesi Restaurants Inc.

(Case Study)

Conclusion

Seven Pieces of Advice for Roberto Pesi:

Should you open a child-oriented restaurant, stay true to the brand and name it something youthful, like “Bobby’s” or “Lil’ Robbie’s”

Consider the best practices of other restaurants that have child-oriented sections (ie McDonald’s’ “Play Place”). Could you use similar ideas in your start-up?

Consider paid-advertising so that your restaurants can become better recognized.

Conduct a survey experiment to better understand the value of the child-oriented restaurant, should you open it

Consider working on increasing the revenue of “In a Hurry,” the corporation’s dog.

Consider the cost of opening a niche restaurant, and determine whether or not it’s within the company budget to do so, and is it worth doing.

Hire dedicated employees that are willing to stay in the company long-term, as opposed to students who are likely to leave in a short/intermediate term.

Porter's Competitive Forces Analysis

Grand Strategy

Bargaining Power of Suppliers

As a restaurant chain, Roberto Pesi Restaurants Inc. would have to buy materials and resources wholesale. This means that a deal has to be made between suppliers of food items and cooking tools whereby the restaurant chain gets a reasonable amount of resources for a price that is agreed upon between the chain and the supplier. Of course the supplier’s intentions are to make as much while giving up as less as possible.

Competitive Rivalry

Given the amount of highly-funded restaurant chains that exist, Roberto would face a lot of heavy competition, and would likely not be in the same league as restaurant chains like McDonald’s or Boston Pizza. Instead, it would be in a more local bracket, competing with one-location restaurants.

Threat of New Entry

Roberto Pesi Restaurants Inc.’s grand strategy, I believe, is to continue expanding and appealing to all audiences in a way that subtly competes with all styles of restaurants. Roberto Pesi Restaurants Inc. is making a deep footprint in all areas of the restaurant industry by catering to a wide array of appetites. This is unlike other restaurant corporations that usually appeal to smaller groups. Roberto Pesi Restaurants Inc. is different in that it offers more than just one type of dining experience.

Start-up costs for new restaurants will be very high, and if these restaurants do not do well, it will be a significant loss. Highly-funded competitors will make it hard to attract a loyal customer base, when they are well-advertised, and have more locations. It is difficult to get recognition in the market with little to no advertising (word-of-mouth marketing).

Threat of Substitution

Well-funded and well-recognized restaurants are a great threat if they expand and open new locations anywhere near Pesi’s restaurants or the residence of their loyal customers. Any new restaurant chain that opens up, serving similar foods will attract Pesi’s customers, and some may find the new entrant better, thus taking away customers from Pesi.

Bargaining Power of Customers

The customer, of course, wants to have the best possible meal for the lowest price. Therefore, prices have to be reasonable enough for a customer to find that the cost of dining at one of Roberto’s restaurants is worth the price. Because of this, the price is mainly determined by the customer.

BCG Matrix

Roberto Pesi Restaurants Inc.

- The entire corporation as a whole has a high growth and income rate. It’s continuous growth and expansion makes it as such.

New child-oriented restaurant

- Risky in that it is a new idea, and so the turnout may not be what’s expected. At the same time, it could work very well, and even better than expected. The idea is new and not popular, so it could either go quite well, or not so well at all.

Roberto’s on the River

- Highest income rate of all restaurants under the corporation, cannot grow further as it is a single location.

In a Hurry

- Lowest income and cannot grow as it is a single location. Would be missed the least of all restaurants in the corporation.

PEST Analysis

Economic Factors

Political Factors

- Family-oriented corporate culture

- All members of staff are on similar grounds

- Employees taxed accordingly to standard taxation regulations set by government

- Stage of business cycle; prosperity

- Very local company; no globalization

- Plans for greater, continuous local expansion; possible future globalization

- Growing economy; increasing revenues

- High turnover rate

Socio-Cultural Factors

Technological Factors

- Likely technological advancements;

- Possibility of touchscreen ordering, reducing wait times for customers

- WiFi internet access for customers with mobile devices

- Growing population

- Health awareness; ensuring that food served is healthy and satisfying

- Training; employees are properly trained to serve customers

SWOT Analysis

Strengths

Weaknesses

- Provides service for a wide array of customers

- Situated in a highly populated area

- Strong growth; continually increasing revenue

- Large, interchangeable selection of employees across restaurants

- All restaurants situated at one building location

- Little recognition in comparison to other restaurant chains

- Little to no advertising budget

Threats

Opportunities

- Continuous expansion; new restaurants to be opened, catering to different tastes

- Improved atmosphere, parents will soon be able to bring their children to the restaurant, where they too, will be specially catered to

- Technologically friendly atmosphere; addition of complimentary WiFi to further enhance the atmospheric experience

- Possibility of better-funded restaurant chains opening nearby, taking away customers

- New restaurants opening nearby the homes of regular customers, drawing them away from Pesi’s restaurants

- High turnover rate within Pesi Restaurants, which will take a toll since new employees need training and old employees can work elsewhere

Corporate Culture

The corporate culture of Roberto Pesi Restaurants Inc. is open-doors and family oriented. This means that employees are free to come and go without a contract, and all staff is treated on similar grounds. This comes with advantages, such as employees feeling comfortable to work with each other, and because they are treated similarly, they are more likely to feel important and motivated to work hard for a good turnout. However, there are disadvantages that come with this culture, such as employees possible becoming a bit too comfortable, forgetting the difference between a home-like environment, and their actual homes. Also, because of the fact that there is no contract, most employees leave within a short period of working, as a majority of employees are students. Adding to this, it is never easy to see a family member leave. This type of attachment could possibly harm the business.

Mission Statement

An appropriate mission statement would be one along the lines of "To satisfy the appetites of everybody who's anybody. With restaurants catering to different situational needs, whether dining in or a sandwhich for the road, our restaurants guarantee an exceptional eating experience."

This is appropriate because it outlines the ideals of Roberto Pesi Restaurants Inc. while making examples of the expeirences that it offers.

Jermain Linton