Applebee Strategies to revive their reputation

a. Visit the Applebee's Web site www.applebees.com. Then, using the Applebee's strategies as a model, discuss how other, perhaps local or traditional, restaurants could use new strategies to revive their reputation.

b. What are Applebee's strategies that it is pursuing? Do you think these strategies could be used successfully at other local or traditional restaurants to compete?

1.

Applebee has a lively atmosphere for the happy hour people. I has a smaller restaurants and entrée prices are below casual dining and fine dining competitors. Applebee is places at small towns and cities with huge numbers of satisfied customers. Applebee offers many different kinds of food including the following: Asian, Italian, Mexican, American and others.

Applebee  provide excellent services through innovation and connecting with their customers, such impact is seen in the growth of the customers and has derived them the best results. Applebee has started with the same philosophy we follow today- focused on serving good food to good people. It is almost in 2000 locations and still counting. The major strategies that Applebee has implemented are

Improve Restaurant Operations and Profitability

The improvement in operational activities with profitability at Applebee’s restaurants were systematically introduced. So as to increase the profitability labor scheduling and labor rate control measures. Improvement in food and its costs, incentives and management of meals and discounts.

Refranchise Company-Operated Restaurants and Sell Owned Real Estate

       They intend to implement a strategy that is based on our experience of transitioning the business from a more capital-intensive development model to a less capital-intensive development model.

        They expect to apply the net after-tax cash proceeds from these two initiatives to repay certain principal of the debt issued in conjunction with the Applebee's acquisition.

Re-energize the Applebee’s Brand

This strategy will emphasize brand positioning of Applebee restaurant based on the customer feedback and marketing research and seek to deliver a clear, focused and consistent message relating to the dining experience.

Improvement in Restaurant Operations

Improvement in Restaurant Operation relates to the improvement in quality, efficiency, consistency of food and guest experience through enhanced training. The improvement in quality relates to the quality control, its costs and menu initiatives. The most improvement in restaurant operation is to improve the performance of the Applebee System.

Strengthen Company Restaurant Profitability

The most important company objective is to increase profitability. By strengthening the company performance, quality, margins and  regular menu item, offers by making promotional activities strengthen the profitability of the restaurants.

2

Applebee has pursued the strategy which is better that provides benefits to the restaurant which ultimately helps in operation, branding,  return on investment, improved financial sector, franchisees. This are the some of the factors which helps in determining successful business.

The Applebee strategy certainly helps to the local or traditional restaurant to use it since, Applebee is successful by implementing those strategies and its operating in more than 2000 locations and still counting. The costs factors, quality and performance  factors helps demographically as well as location wise successful to run business. This strategy helps locals as well as traditionally operated restaurant  to use it through price, service, location, personnel, and quality of foods. The loyal customer they seek betterment in service and quality Applebee’s major moto is to provide better service and better quality.

Reference:

http://www.wikinvest.com/stock/DineEquity,_Inc._(DIN)/Applebees_Key_Strategies

Pearce II, J., & Robinson, R. (2011). Strategic Management: Formulation, Implentation and Control. McGraw-Hill Irwin