Professional Documents
Culture Documents
1. Executive Summary 3
About Applebees
Situation Analysis
Target Market Analysis
Marketing Mix
2. Mission Statement 4
Commitment to our team
Commitment to the guest
Commitment to profit
3. Objectives 4
Team Objectives
Customer Objectives
Profit Objectives
4. Situation Analysis 5
Strengths
Weaknesses
Opportunities
External Threats
5. Environmental Analysis 6
Competitor analysis
Legal environment
Economic environment
Social environment
6. Target Market Analysis 7
Target Market needs
7. Marketing Mix 8
Product
Distribution
Promotion
Price
8. Implementation and Control 9
9. Company Location Analysis 10
Demographics
10. Finincial Plan 13
Business outlook
11. Jobs and Duties 16
Executive Summary
About Applebees
Applebees, the leading restaurant in casual dining, is located in 49 states and eight foreign
countries. The first Applebees opened up in 1986 in Kansas City, Missouri, and has since
expanded to over 1,200 restaurants. Applebees has a strong customer base, serving over
20,000,000 guests every month. Applebees combines quality food with outstanding service
and an inviting atmosphere, making them Americas Favorite Neighbor.
Situation Analysis
Bringing an Applebees into Vallejo would help to expand the restaurant business, while
offering more employment opportunities for the area. Applebees would be an asset to Vallejo
because it offers a fun environment, with reasonable prices, and good service. Applebees can
capitalize on the market situation in Vallejo, being that they already have a well-established
customer base, while bringing more customers in by sponsoring local events.
Applebees average target consists of a core market including people between the ages of 35-
54 years old, and a secondary market of those between the ages of 25-34. In order to have a
successful Applebees in Vallejo, the target market would be altered somewhat, due to the
large numbers of young adults, who are under the age of 25. The new target market would
have 18-34 year olds as the primary target, with 35-54 year olds as the secondary market.
Marketing Mix
Applebees is to be promoted in various ways, including radio, national television spots, and
various happy hour specials. Another way is by utilizing the many different holidays the year
has to offer, such as Mothers Day, Fathers Day, and Veterans Day. The average price for a meal
is around $10.00, which is reasonable for college students and other Vallejo area residents.
Mission Statement
To contribute to the growth, joy and enrichment of all the lives we touch.
We are committed to providing every member of the Applebees family with the
opportunity for personal success. We will always provide the necessary fairness,
training, coaching, feedback, high standards, growth, and stability for all members of
our team to meet their full potential.
We are honored that our guests have selected our restaurant. Our commitment is to
ensure that we wow our guests by meeting or exceeding their expectations.
COMMITMENT TO PROFIT
OBJECTIVES
TEAM OBJECTIVES
We want to be able to offer a complete and all-inclusive training program so that all our
employees will offer the same high-quality service to every one of our customers.
CUSTOMER OBJECTIVES
Our customers will always be our number one priority. The staff and management of
our Applebees restaurant will be committed to making the dining experience of every
one of our customers wonderful.
PROFIT OBJECTIVES
We will always be committed to making a reasonable profit so that we can serve our
customers effectively and our employees will always have a stable and rewarding work
environment.
Situation Analysis
APPLEBEES STRENGTHS
In the Vallejo area, the strength of opening an Applebees restaurant is that there is a
need for a new fresh restaurant where people can enjoy a good meal or a refreshing
drink. The restaurants that will fall as competition for Applebees will be Chevys, Red
Lobster, and Olive Garden. However, Applebees already has an established customer
base. Most people here have been to an Applebees and would enjoy having an
Applebees in the area.
Applebees has very reasonable prices, which is a big issue for Vallejo residents. Our
prices are comparable with those of the other restaurants in the area.
It is also true that any industry that is brought into Solano County can only do well, we
would be creating more jobs in a lower income area, and there is a good labor base
existing with Vallejo residents always looking for employment.
We have also included some basic facts about the Applebees Company:
Applebee's serves nearly 20,000,000 guests per month, with a strong mix
of day-and week-part visits
Our main weakness is the fact that there are many other restaurants to
choose from.
EXTERNAL OPPORTUNITIES
Applebees is a Neighborhood Grill and Bar. Incorporating local events and places as a
part of our restaurant will be one of our biggest opportunities. We will be able to
sponsor local sporting events. All Applebees restaurants dcor includes local
memorabilia from schools and Universities.
The restaurant industry employs an estimated 11.6 million people, making it the
nation's largest employer outside of government. Another opportunity that we have is
to create more local jobs. The Vallejo area is growing at a very rapid pace. More and
more industry is being brought into the area.
EXTERNAL THREATS
Our biggest and most obvious threat is the other restaurants that one would have to
pass before getting to our restaurant. We will be located just across the street from
Chevys and Olive Garden.
ENVIRONMENTAL ANALYSIS
COMPETITOR ANALYSIS
Chevys
o Similar atmosphere
o Established customer base
o Slightly higher prices
o Increased visibility due to location
Red Lobster
Different atmosphere
Competitive prices
More prime location
LEGAL ENVIRONMENT
There are several requirements to open a restaurant in the state of California. The
Department of Health has to be contacted to obtain a one-year Food Service License.
Licenses issued by the city or general health districts will have to be issued after the
restaurant is inspected and all codes are enforced.
Liquor licenses also have to be obtained from the State. Our research shows that
Applebees will need Class D-2, D-2x, D-3 and D-3x licenses. These permits will allow
our restaurant to serve beer, wine and liquor on our premises until 1:00 a.m.
ECONOMIC ENVIRONMENT
SOCIAL ENVIRONMENT
Having spoken to local students and community members we have learned that there is
a desire for more variety in the restaurant industry in Vallejo. We feel that we will be
able to fulfill this need because we offer a different menu and atmosphere from the
existing restaurants.
MARKETING MIX
PRODUCT
DISTRIBUTION
PROMOTION
We have devised many different ways to advertise our new Applebees location. They
include being included in all the local hotel guides and yellow page advertising (because
we do offer carry-out service). We also plan on getting our restaurant on the state
highway signs that offer food at local exits.
Other promotional ideas that we have come up with include sponsoring local sports,
offering Happy Hour specials, and being extremely active holiday events.
During our grand opening, we plan on making everyone in the area aware of our new
store through fliers, radio promotion, and nationally through television advertising.
PRICE
Our typical guest check will range from $9.50-$10.00. Appetizers range from as low as
$2.00 during Happy Hour to approximately $7.00, entrees at Applebees range from
$6.00 to around $18.00. We feel that these prices will be extremely competitive with
those offered by other local restaurants.
Now that we have decided to place an Applebees in Vallejo, California, and after
looking at the Vallejo area, we feel that we will be able to continue to adapt our
marketing plan to any changes that may occur in the market. We do want to be able to
continue gaining the attention of passing travelers and local residents.
We want to always be active in the community and sponsoring local sports teams is one
way in which we feel we can get ourselves more exposure. Updating our local
memorabilia is also an important part of keeping our restaurant new and fresh and
keeping our customers wanting to come back.
We want to continue to keep our advertising fresh. There are several local newspapers
that are read by a diverse combination of those living in the Vallejo area. Through this
medium, we can continue to reach the new members of the community as well as
continuing our reputation with those customers will have all ready obtained.
Company Location Analysis
The location of the Applebees restaurant is in Vallejo, California right off of Columbus
Parkway, near the shopping centers. We expect to get lots of business considering its location
near the shopping centers, so shoppers with an appetite can conveniently stop in for a meal
without a long wait. Judging by the type of stores in the area, we expect not only adults to be
eating here, but teens as well, which is why our affordable meals is a plus. They will have a nice
place to sit and enjoy their food because of the welcoming dcor and fast and friendly service.
Although there are competing restaurants yards from this establishment, we are confident
that with Applebees low prices and great food, we will stand apart. Because we are mostly
serving middle class citizens, we pride ourselves on giving them the best food and experience
for their money.
This commercial business is expected to welcome on average about 150 people per day.
Applebees will be visible from the freeway, attracting more people who may be potential
shoppers, or just looking for a bite to eat. The fact that there is a shopping center gives this
restaurant a big advantage over most, because people who are already willing to spend money
on themselves, will definitely indulge in a delicious snack or meal of convenience.
Based on the statistics below, a variety of customers will be expected to be visiting this
Applebees establishment. We serve a variety of foods, and even include a kids menu to
conveniently assist parents in selecting meals for their kids.
Demographics of Vallejo
Vallejo City, California Statistics and Demographics
Race
One race 109095 93.44%
White 41996 35.97%
Black or African American 27655 23.69%
American Indian and Alaska Native 767 0.66%
Asian 28205 24.16%
Asian Indian 1064 0.91%
Chinese 1032 0.88%
Filipino 24215 20.74%
Japanese 329 0.28%
Korean 242 0.21%
Vietnamese 483 0.41%
Other Asian 840 0.72%
Native Hawaiian and Other Pacific Islander 1276 1.09%
Native Hawaiian 159 0.14%
Guamanian or Chamorro 537 0.46%
Samoan 268 0.23%
Other Pacific Islander 312 0.27%
Some other race 9196 7.88%
Two or more races 7665 6.56%
Relationship
Total Population 116760 100.00%
In households 115015 98.51%
Householder 39601 33.92%
Spouse 19452 16.66%
Child 37347 31.99%
Own child under 18 years 26893 23.03%
Other relatives 11768 10.08%
Under 18 years 4391 3.76%
Nonrelatives 6847 5.86%
Unmarried partner 2624 2.25%
In group quarters 1745 1.49%
Institutionalized population 819 0.7%
Non-Institutionalized population 926 0.79%
Households by Type
Total Households 39601 100.0 %
Family households (families) 28245 71.32%
With own children under 18 years 14440 36.46%
Married-couple family 19452 49.12%
With own children under 18 years 9558 24.14%
Female householder, no husband present 6550 16.54%
With own children under 18 years 3754 9.48%
Non Family households 11356 28.68%
Householder living alone 8988 22.7%
Householder 65 years and over 3161 7.98%
Housing Occupancy
Total housing units 41219 100.00%
Occupied housing units 39601 96.07%
Vacant housing units 1618 3.93%
For seasonal, recreational, or occasional use 107 0.26%
Homeowner vacancy rate (percent) 1.2
Rental vacancy rate (percent) 4.5
Housing Tenure
Occupied housing units 39601 100.00%
Owner-occupied housing units. 25020 63.18%
Renter-occupied housing units. 14581 36.82%
Based on the statistics of an already successful Applebees franchise, we do not expect to lose a lot of
money within the first three years of business. With funding from one of the owners as well as bank
investors we have complete confidence that this business will fluctuate within the first three years of
operation. Below are some statistics that support this theory.
Business Outlook
The company also provided guidance as to its business outlook for fiscal year 2005.
Over 125 new restaurants are expected to open in 2005, including at least 40 company restaurants
and at least 85 franchise restaurants. Approximately 25 company restaurants are currently expected to
open in the first half of the year, with the balance opening in the second half of the year. Approximately
20 to 25 franchise restaurants are expected to open in the first half of the year, with the remainder
opening in the second half of the year. System-wide comparable sales are expected to increase by at
least 3 percent for the full year, with results expected to be lower during the first part of the year and
accelerate throughout the year.
Overall restaurant margins before pre-opening expense for the full year of 2005 are expected to be
similar to fiscal year 2004 results. General and administrative expenses, as a percentage of operating
revenues, are expected to be in the high-8 percent range. The effective income tax rate is expected to
be 34.6 percent for the year. Excluding the cost of franchise acquisitions, capital expenditures are
expected to be between $130 and $140 million in 2005.
The company repurchased 3,993,670 shares of common stock during fiscal year 2004 at an average
price of $24.97 for an aggregate cost of $99.7 million. As previously announced, the company's Board of
Directors has authorized additional stock repurchases of up to $150,000,000 beginning in 2005 and has
approved a written plan for repurchases of common stock in the open market in accordance with Rule
10b5-1 of the Securities Exchange Act of 1934.
Based on the foregoing assumptions, diluted earnings per share for fiscal year 2005 are expected to
be in the range of $1.48 to $1.51, with diluted earnings per share for the first quarter expected to be
slightly less than the prior year. These earnings per share estimates exclude the potential impact of any
adjustments to the company's accounting for rent and/or depreciation of leasehold improvements as
discussed above as well as the impact of expensing stock options beginning in the third quarter of 2005.
JOBS AND DUTIES
SERVER
Our idea is polite, professional, fast, and courteous service. The level of professionalism
expected is high. As a server, your section is the entire restaurantthe bar, the phone,
the food line, etc. This isnt to say you will have every table to yourself, but if a job
description were set for your restaurant people, its responsibilities would be
innumerablefrom polishing glasses, capping ashtrays, pouring water and wine,
bussing tables and resetting tables, to lighting cigarettes, etc. All of these and more
define our teamwork and attitude. Your ATTITUDE and how you fit into our team is
essential. With that in mind, the restaurant is your house and the guests are your
guests. Treat them with respect, and you will receive the same in return. While the
responsibility of assuring great service to the entire restaurant is big, with teamwork it
becomes easy and flowing
HOST
Take telephone reservations, greet customers, take their coats and other accessories to
the coat check, Seat guests while being aware of server sections and guest to server
ratios in order to ensure a smooth and enjoyable dining experience for guests Be able to
answer questions and have thorough product knowledge of your menu and
establishments policies and services Provide courteous & efficient customer service to
guests. Support your food and beverage team efficiently complete team duties as
assigned Manage dining reservations, cashier & cash reconciliation duties. Do your part
to ensure a safe work environment for yourself and your co-workers by following the
safety rules Adhere to sanitation standards as outlined by the Public Health Department
BARTENDER
Bartenders prepare standard mixed drinks and pour wine and beer. They also prepare
mixed drinks to match the customers specific orders. Most bartenders know dozens of
drink recipes. They must be able to prepare drinks quickly, accurately, and without
waste. Some large restaurants use machines that create drinks. Bartenders that use
these machines just push a button. However, they must know how to prepare drinks in
case the machine breaks.
In most bars and many restaurants, bartenders take orders directly from customers.
However, in some places they receive drink orders from waiters and waitresses. In
addition to serving drinks, bartenders collect payment and operate the cash register.
They also clean up after customers and clean their work area.
They often serve food to customers seated at the bar. Bartenders check identification of
customers. Bartenders must be sure customers meet age requirements for the purchase
of alcohol and tobacco products. An additional responsibility is to make sure customers
do not drink too much alcohol. Bartenders are responsible for ordering and maintaining
liquor and bar supplies. They often form attractive displays out of bottles and glassware.
Bartenders wash the glassware and utensils after each use.
Food service managers are responsible for the daily operations of restaurants and other
establishments that prepare and serve meals and beverages to customers. Besides
coordinating activities among various departments, such as kitchen, dining room, and
banquet operations, food service managers ensure Managers are generally responsible
for all administrative and human-resource that customers are satisfied with their dining
experience. In addition, they oversee the inventory and ordering of food, equipment,
and supplies and arrange for the routine maintenance and upkeep of the restaurant's
equipment and facilities. Functions of the business, including recruiting new employees
and monitoring employee performance and training
KITCHEN MANAGER
They have knowledge of the methods of preparing meats and vegetables in quantity lots
as well as a knowledge of the cooking time and temperatures of various foods and
methods of preserving their flavor and food value. They must also know the principles of
personal and food sanitation. Considerable knowledge of the dietary requirements for a
variety of special diets and allowable substitutions for various food items found on diet
menus.
Must have considerable knowledge of the methods and materials used in the baking
and meat cutting activities of an institutional kitchen. Ability to estimate food needs for
a relatively large number of persons and to requisition needed food items and the
ability to plan and manage food production activities to fulfill menu requirements.
Ability to maintain routine records of food used and quantities needed for varying
numbers of persons. Ability to establish and maintain standards of sanitation for all
areas supervised.
SERVICE MANAGER
Food service managers oversee the day-to-day operations at restaurants and other
places that serve and prepare food and beverages. In addition to overseeing operations,
they are also responsible for each department in the establishment from kitchen to
banquet operations. The biggest responsibility that food service managers have is to
make sure each customer is satisfied with the dining experience.
Catering management workers manage inventory, equipment, and the facility while also
taking care of all the administrative and human resource tasks such as hiring, recruiting,
and training employees. They even have to monitor each employee's work
performance, which means they are also responsible for the dismissal or firing of
employees. Other duties food service managers may perform include cooking, bussing
tables, and possibly a multitude of other duties, depending on business needs. If the
restaurant is really busy, then the manager takes on other roles as needed.
A line cook is a cook who supervises a specific area of the kitchen, rather than the
kitchen as a whole. The line cook reports to the head cook, who is in charge of overall
quality control within the kitchen. The duties of a line cook vary, depending on the type
of restaurant he or she is employed at. Levels of training are also variable, since
different jobs demand different things from their line cooks.
HEAD COOK
Plans and writes nutritious menus for all meals; directs the preparation of food;
prepares and serves food; arranges and directs the appropriate storage of food and
supplies; maintains safety standards throughout all food preparation and storage areas;
monitors and maintains the inventory of food and supplies and orders food and supplies
in sufficient quantities for weekly meals; determines work schedule assignments for
cafeteria staff; monitors and assists in daily clean-up of kitchen, service and dining
areas; maintains a variety of records related to meals served, inventory, costs of
cafeteria operation and federal/state reimbursement requirements; utilizes
computerized nutrition analysis and menu planning software; schedules maintenance
and repairs for kitchen equipment; lifts and carries cartons of food, milk bags, and
serving containers.