rubio's case analysis
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RUBIO¶S RESTAURANTS
CASE ANALYSIS
Presented By: Group 3
Amit Goyal - 82004
Ankur Sachdev - 82005
Girish Chaudhary - 82013
Kanika Gupta - 82016
Monojeet Chakravorty - 82024
Rohit Raman - 82036
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Who They Are??
Credited with introducing fish tacos to the U.S
Started in 1983
Founder by Ralph and Ray Rubio
Operate in growth-leading ³fast casual´ segment of restaurant
industry
Offer bold, distinctive, Baja- inspired food
Menu items include: Tacos, Burritos, Salads & Bowls,
Quesadillas, HealthMex® Offerings, Domestic/Imported Beer
96 restaurants across five states
Revenue at June 28, 2009: $187+ million
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Fast Casual Segment Is..
Positioned between full service casual dining and Quick Service
Restaurants (QSRs)
Lower cost versus casual dining restaurants ± limited service format
removes the need for waiters and tips
Healthier foods and premium ingredients made- to- order
Limited meal-time without compromising quality
Upscale décor, pleasant ambience
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Voice of Market«.
Customer Needs..
Value i.e. low cost
Convenience
Health
Quick service
PleasantEnvironment
Hot Food
Target Market..
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Fast Casual Continues To Grow
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IFAS Card«..Internal factors Weight Rating Weighted score Comments
Strength
Entrepreneurial Skills 0.20 4.5 0.9Was able to get the recipe and
use it for himself.
Delicious fast food recipe with
flexibility in consumption0.15 3 0.45
The food is made to order and
can be consumed in sitting as
well as take away.
Protein rich menu items good for health with low calorie
0.15 3 0.45 Sea food is protein rich and isgood for health.
Weakness
Lack of customer education and
social responsibility.0.20 2 0.4
Customer were not made aware
of the calorific value of the food
they were consuming and eating
food was not linked with a social
joy.Family members holding
positions in the top
management.
0.15 2 0.3Deprived Rubio from better ideas
that others can bring in.
Patio Seating 0.15 4 0.6The patio seating arrangements
cause seasonality in sales.
Total 1.00 3.1
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EFAS Card«..Internal factors Weight Rating Weighted score Comments
Opportunities
Large market share available to
be captured.0.2 4.5 0.9
Large untapped market and only
one major competitor in the
market (Taco Bell)
Growth of economy. 0.10 2.5 0.25In terms of GDP and consumers
disposable income
High entry barriers for newentrants.
0.10 3.5 0.35 New entrants would needconsiderable time and effort to
build brand value and image.
High and fast returns 0.10 2.5 0.25 Break even point is achieved fast.
Threats
Increase in the number of fast
food chains and expansion of
existing ones.
0.15 2 0.3
Mc Donald and other big chains
expanding and continually trying
new things to delight its
customers.
Government Regulations. 0.15 4 0.6
Business involves licensing and
change in labour laws effect
human resources.
Strong bargaining power of
buyers0.10 2 0.2 Too many options
Risky venture0.10
2 0.2
A small ignorance can bring down
image considerably and may
result in huge loss.Total 1.0 3.05
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Strategic Factors Analysis SummaryInternal factors Weight Rating
Weighted
score
Duration Comments
Entrepreneurial Skills 0.10 4.5 0.45Short Medium Long
X
Was able to get the recipe and use
it for himself.
Delicious fast food recipe with
flexibility in consumption0.10 3 0.3
X
The food is made to order and can
be consumed in sitting as well as
take away.
Lack of customer education and
social responsibility.
0.15 2 0.3 X
Customer were not made aware of
the calorific value of the food they
were consuming and eating foodwas not linked with a social joy.
Patio Seating 0.10 4 0.4 XThe patio seating arrangements
cause seasonality in sales.
Large market share available to
be captured. (o)0.15 4.5 0.675
X
Large untapped market and only
one major competitor in the market
(Taco Bell)
Growth of economy.(O) 0.1 2.5 .25 XIn terms of GDP and consumers
disposable income
Increase in the number of fast
food chains and expansion of
existing ones. (T)
0.10 2 0.2 X
Mc Donald and other big chains
expanding and continually trying
new things to delight its customers.
Government Regulations (T) 0.10 4 0.4 X
Business involves licensing and
change in labour laws effect
human resources.
Strong bargaining power of
buyers(T)0.10 2 0.2 X Too many options
Total 1.00 3.18
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For io¶s Its or Fish os
Diff r ti t d Pr od ts d
D fi it ly the ste!!
Rubio¶s Variety is its ompetitive
Advantage..
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Value Perception..
Affordability´ is also strong
Relative
Rubio¶s ³Value for the money´
score is very competitive
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Competitive Edge.. Introduce Complex Products While
Reducing Throughput Time
Unique Competitive Position in
Growing Segment
Strong, Leverageable Team
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PEST Analysis Framework
License & permit requirements for selling food
and alcoholic beverages
Compliance with applicable zoning, land use
and environmental regulations
Mandated health insurance
Stringent Teen labor laws
Higher unemployment due economic slow down
Credit crisis limiting the expansion
Rising raw real estate cost
Reducing disposable income
Entrance of Multinationals eg. PepsiCo through
Taco Bells
Customer ¶s becoming more health conscious
Increase in Dual income families result in lack of
spare time
Increase in income made dinning out affordable
Aging population & decline in teenagers
Automatic taco makers and soft-drink dispensers
Touch 2000: An automated ordering system
Outsourcing
Online reservations and ordering
Reduction of staff through automation
Political Economic
TechnologicalSocio Cultural
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Marketing Strategies
Advertised in Print, Radio and television
Direct mail for customers within a 5-mile radius
Sponsor local athletic events
Have beer and wine licenses
Provide variety of promotional items for sale (T-shirts, bumper stickers and
decals)
Providing discount coupons to attract new customers
Reduce the menu price on special occasions
Restaurants are located near Residence and industrial or office areas with
Upscale atmosphere:- e.g. beach theme
Spacious seating for 50 people with an outdoor patio
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They are Improving«.
Introduction of Nutritious and Sustainable and low fat menu.
Applesauce side option for Kid's Meals
Focus on causes that promote active, healthy living, and participate in and
contribute to many charities and events.
Go Green - Introduction of Eco Friendly Restaurants - Replaced plastic
packaging in favor of paper.
Introduction of recyclable goods, LEDs, low flow convenience room.
Acceptance of Bank cards and ATM cards as alternative methods for
payment.
Upgraded Labor Model.
Negotiate Lower Lease Terms and Build-out Costs 15% - 25%
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Key Takeaways«.
Superior positioning in growing segment ± Fast Casual continues to be growth leader
We must consider how the population is segmented in order to understand
tomorrow's needs.
Rise in birth would indicate the future customers - So to plan in advance to catch
them young - This will help to have loyal customers.
Focus on differentiated products and Definitely ³The Quality & Variety´
Strong, leverageable management team would definitely help in long term growth.