A Comparative Analysis of the Restaurant Industry

704 Words3 Pages
Restaurant Industry Comparison Introduction The restaurant industry in the United States and around the world took a hit along with most other businesses during the recent global recession, and was arguably harder hit than average given the luxury that restaurant eating represents to many families. Other large-scale issues such as the Affordable Healthcare Act and increasing health problems and health regulations across the country have also impacted the US restaurant industry, but the performance of individual restaurant chains is more related to the individual choices made and actions taken by these companies rather than large-scale economic influences. The following paragraphs present a comparison of several of the major players in the US restaurant industry based on details recently compiled and presented by others, demonstrating their strengths and weaknesses in the current atmosphere and their relevant positions to each other. Darden Darden and its brands Red Lobster, Olive Garden, and others compete in the increasingly saturated low-cost market, and this intense competition has hurt the company. A lack of quality menu items has also impacted the company's market share, and a change in this is necessary to turn the company around. At the same time, the company can make effective use of economies of scale and has significant penetration throughout the country, both of which are significant boons for the company. Technological platforms and a strong marketing
Open Document