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Outback Steakhouse: Going Int'l
Transcript of Outback Steakhouse: Going Int'l
Group A - Anino Solutions
Let's watch our interview with one of Outback's top executives
Assess the proposed strategy in relation to:
(a) Should Outback Steakhouse expand internationally, or would it be better to expand through starting new restaurant chains within the US?
(b) Does the strategy outlined by Connerty make sense?
Hungry yet? Watch this review from a true fan...
Hugh Connerty knew the challenges Outback would face:
Dealing with distribution issues
Picking the right partners
Managing the Outback Way
Employees a big part of the equation
3 person team -Managing Partner, Manager and Kitchen Manager
Hire only the best
Pay well; get commitment
Treat employees right
No lunch, less stress
Employees must be happy
Loyalty & Trust
Why franchising instead of company owned?
Challenges of international cultures
“Local” franchisee would be familiar with laws and culture
Frees Outback to focus on supporting operations
Only franchisees who had synergy with Outback’s principles wanted
Would be carefully selected - "one by one"
Connerty’s geographic pattern for expansion: 9
Where are they now?
108 domestic franchises
49 States, 21 countries worldwide
What was Connerty's game plan?
A bite Of Australia
Good food And Fun Atmosphere
What are the key elements of the international expansion strategy being proposed by Hugh Connerty?
What OutBack Wants from suppliers.
* To be an opportunity for them
* To be Loyal to OutBack
* To prove they can build necessary plants
Offer Several types of ownership.
In addition to our restaurants in the United States, Outback Steakhouse also operates restaurants in 21 countries worldwide, including Australia, Bahamas, Brazil, Canada, China, Costa Rica, Dominican Republic, Guam, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, Philippines, Puerto Rico, Singapore, Taiwan, Thailand, United Kingdom and Venezuela.
1. What are the principal features of Outback Steakhouse’s strategy in the US? Why has the Strategy been so successful?
Emphasizing consistently high-quality ingredients and preparation of a limited number of menu items that appeal to a broad array of tastes
Featuring generous portions at moderate prices
Attracting a diverse mix of customers through a casual dining atmosphere emphasizing highly attentive services
Hiring and retaining experienced restaurant management by providing general managers the opportunity to purchase a 10% interest in the restaurants they manage
Limiting service to dinner (generally from 4:30 p.m. to 11:00 p.m.), which reduces the hours of restaurant management and employees
"It's Always Fresh in the Outback"
In other words...
The Company’s strategy is to differentiate its restaurants by emphasizing consistently high-quality food and service, generous portions at moderate prices and a casual atmosphere suggestive of the Australian Outback.
In 1990, requests for franchising led Outback agreeing to franchise to well-known acquaintances of the founders; Chris Sullivan, Bob Basham and Tim Gannon
In 1993, Outback formed a joint venture with Houston-based Carrabba’s Italian Grill
In 1995, Outback acquired the rights to develop Carrabba’s nationally
The international market offered substantial growth opportunities for US restaurant chains
Building restaurants worldwide in over 21 counties
Development territories currently available in Argentina, Peru, Chile, Colombia, United Kingdom, and Israel