California Pizza Kitchen ( Cpa )

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California Pizza Kitchen (CPA) was founded by Larry Flax & Rick Rosenfield in Beverly Hills 1985. They wanted to make really good pizza at really low prices. They were growing fast and by 2007 they had 213 locations. They had profit of over 6 million and had strong revenue in restaurant sales of up over 15%. Their revenue came from sales at company owned restaurant witch was their main focus because it was 170 units and analysts estimated the potential for CPK was 500 units. Their revenue also came from franchising because a typically agreement gave CPK an initial payment of 50,000 to 65,000 for each store they opened and also gave them a 5% gross sales from each location. A partnership with Kraft Foods gave them a lot of marketing. Even though CPK frozen pizzas was less than 1% of current revenues, Kraft was obligated to spend 5% of gross sales on marketing the CPA frozen pizza brand witch was much more than what they often spent on its own marketing. They were also successful because they had a family friendly environment, excellent ingredients, innovative menu, relatively low prices, they wanted their customers to be satisfied and they attracted relatively wealthy customers. The full service sector was expected to grow 5.1% in the next 5 years witch was casual and fine dining. The subsector of full service segment was expected to have a growth rate of 6.5% in the next 5 years. Their limited service sector witch it fast casual and fast food was expected to grow around

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