Popeye 2 - this is my assignment PDF

Preview

Summary

this is my assignment...

Description

Popeye's Louisiana Kitchen

1

Popeye's Louisiana Kitchen

Student's name Institution Affiliation Course name Instructor's name Date due

Popeye's Louisiana Kitchen

2

Executive Summary Our Executive Management has been on a mission to help franchisees succeed in all aspects of the company. Profitability and superior service are accomplished by focusing on five strategic principles that direct all company decisions. Everyone on our staff, our customers, and our society are treated like family at Popeyes, and that no one goes hungry. Here at popeyes we share, feed each other, serve and love our customers, the company's main strategic goals are: to remove colors, flavors, and preservatives from artificial sources from fried chicken menu items (Anita, 2020). Popeyes is to get rid-off antibiotics that are significant to human medicine from the supply chain by end of 2021. Whole chickens, fluid eggs, raw eggs, and egg components will all be cage-free, according to Popeyes. By the end of 2025, all multinational and franchised outlets in North America, Western Europe, and Canada will use 100 percent cage-free chickens. It is a multinational chain of fried chicken restaurants, as it has its stores all over North America, some parts of Europe, Asia, and also Canada. Because of Popeyes's exclusive selection and opportunities to expand into current and new markets, the firm's corporate plan is to expand the variety of businesses in Popeye's strategic movement. Popeyes has a lot of franchises. Franchisors run 97 percent of all Popeye's restaurants (Adrian, 2017). Some of the marketing strategies Popeye's plan to use to attract and venture into new market place include; Advancing and renewal of their current menus in every one of their featured stores as they are continually reviewing the menu to find the best combination of items and promotions to meet evolving customer tastes and to support an optimized day-part strategy for increasing service transactions. Occasionally using strategic brand marketing and advertising techniques to increase their sales, customer service focus, and prolonged restaurant expansion through the creation of a strong pool of qualified franchisee applicants, including both current and new franchisees.

Popeye's Louisiana Kitchen

3

Background Popeyes was established in Arabi, Louisianan the suburbs of New Orleans. "Chicken on the Go" was the first restaurant to launch. Al Copeland, the hotel's owner, decided to compete with Kentucky Fried Chicken (KFC), but after a few months, his venture didn't work out as planned. A few days later, Popeyes Mighty Good Chicken was reopened by Copeland. Popeyes Famous Fried Chicken was the new name for the business by 1975 (Chandler and David, 1984). Popeyes is known for its New Orleans-style cuisine, which includes grilled chicken, chicken nuggets, teriyaki chicken, spiced-up chickens, steamed shrimps, and other regional favorites. Popeye's has grown to be amongst the world's largest chicken fast-food restaurants, with over 3,345 locations in the United States and around the world, thanks to its love for its Louisiana roots and tasty quality food. Their brand is well known and acknowledged by top, world-class chefs and it's selling at a higher rate.

Competitors Popeyes has been dominated by KFC in terms of risks and rivalry. The majority of people want KFC because chicken is their main meal. Clients find it difficult to drive to Popeyes since they are situated in supermarkets and plazas. Boston Market has been a fast-growing fast-food rival and a third rival to Popeyes. As advertised, Boston Market offers a range of sides and snacks, posing a challenge to Popeyes. Long John Silver's is another rival focused on the types of foods offered (JLS). Long John Silver was the best producer in the clustered fish fast - food market in 2007. To draw customers, they have been constantly changing and enhancing their selection and price discounts. They've had an impressive record over the years, gaining 5.6 percent of market

Popeye's Louisiana Kitchen

4

share and ranking sixth in 2007. (Euromonitor International, 2008). According to my experience of being in South Korea and participating in sales with Popeye's, LSJ was right alongside them. Pricing The food at Popeye's is not entirely inexpensive, but it is comparatively cheap, particularly when compared to its competitor's fast-food chains. A Popeye's combo meal will set you back anywhere from $7 to $10.

Popeye's External Analysis

PESTL Analysis The fast-food industry produces over $540 billion in annual revenue worldwide. It employs over 4.5 million people in the United States alone. In the coming years, the company's rate of growth is projected to stay about 2.5 percent. Fast-food chains have been affected by a variety of trends. This industry has been subject to a plethora of changing regulations, ranging from recycling to waste prevention to animal care. Since 1970, a lot of things have changed. Following these improvements, there was creativity in terms of variety, customer support, and branding. Political: The political factors that are affecting the fast-food sector may vary from country to country. Compliance is of paramount importance. These criteria must be met by fast-food chains all over the world. Wages, sanitation, and food safety are all subject to legislation that must be enforced. The basic income will vary from one country to the next. Labor costs are much higher in countries where wage rates are higher. Aside from that, packaging standards have changed as

Popeye's Louisiana Kitchen

5

well. Government agencies can also put pressure on fast-food restaurants to add healthy options to their menus (Amir, 2019). Economic: The fast-food industry was affected by the slowdown to some degree. However, since it was passed, customer costs have increased. The majority of restaurants have reduced their menu prices and enhanced their customer service (Amir, 2019). As brands battled to maintain customers during the recession, customer support has become increasingly relevant. Fast-food sales have been influenced by a variety of developments, including increased health consciousness. Customers were not drawn in by the delicious food. To inspire consumers, brands supplemented it with improved comfort and low prices (Amir, 2019). Social: The fast-food industry is also influenced by nutrition and wellness trends. The whole food industry has been influenced by health consciousness. It encompasses not only fast food but also processed foods. The changing consumer attitudes compelled restaurant chains to offer lowcalorie options. The way people think about health has shifted drastically. The media has played a critical role in influencing this view (Meyer, 2019). The fast-food industry has been criticized for targeting children under the age of eight. Furthermore, the war on fast food prompted people to switch to low-calorie diets. Technological: Customer service and efficiency are both significant determinants of revenue income. The way brands operated and satisfied their customers has already changed as a result of technological advancements. They also influence brand marketing and advertisement. Customer service has improved as a result of social media and online shopping. Customers are constantly communicating across social media platforms. The use of digital displays and kiosks affected purchasing and labor costs (Amir, 2019).

Popeye's Louisiana Kitchen

6

Legal: During the last few decades, there have been significant shifts in the regulatory aspects of the fast-food industry. The burden has increased as a result of changing legal requirements. The legislation has a major impact on food safety and nutritional value. Aside from that, packaging and waste management are also seriously affected. The statute, in general, placed new standards on the fast-food industry (Heller, 2019). The entire industry changed its marketing and distribution strategy. Fast-food firms need to adhere to regulatory changes. Michael Porters Five Forces Analysis Competitive Rivalry Quick food is a fiercely competitive industry. Popeyes is constantly up against tough competition from many other fast-food restaurants, especially KFC. As a result, Popeye's has built systems to ensure that it can perform effectively. Popeye's has used one of the most common strategies to keep customers by offering a smart card for kids that gives them discounts at Popeye's (Amir, 2019). Threats from new entrants Even though the fast-food restaurant business is difficult to break into due to numerous rivals, Popeyes services and goods face strong competition from Radix Fried Chicken, a new restaurant that opened in 2008 (Amir,2019). Radix Fried Chicken has increased in popularity as a result of its groundbreaking menu, which has piqued the attention of many consumers. Popeyes, on the other hand, has the benefit of being a well-known household name, which has helped it become very successful in its international projects (Amir, 2019). Threats of Substitute Products

Popeye's Louisiana Kitchen

7

Several other fast-food chains are selling similar items to Popeye's, giving the fast-food chain a run for its money. KFC, for example, has long been one of Popeye's fiercest competitors (Hyland, 2018). Customers will order side dishes such as Cajun gravy and rice, as well as spicy and crispy chicken from the fast-food joint. Bargaining power of suppliers Popeye's has a large number of suppliers for their main product, chicken. This provides the business with the freedom to deal with the best vendors. For example, in 2004, the corporation terminated a partnership with one of their chicken suppliers due to the chickens being slaughtered in a hostile climate (Zheng, 2019). Bargaining power of buyers Buyers of Popeye's goods will find several similar items at places like McDonald's, Subway, and Pizza Hut. Because of the intense competition from other rivals, it is hard for Popeye's to increase its prices (Bureau of Economic Analysis, 2019). SWOT Analysis Strengths 

Popeye's Louisiana Kitchen has spent a lot of money on television advertising over the years. vouchers, and also over the radio are all options.



Many countries have shown the restaurant.



There is a greater range of food available.

Weaknesses 

A social media influence that isn't solid

Popeye's Louisiana Kitchen

8



Since franchises are often found at petrol stations, consumer loyalty can be poor.



The chicken isn't as juicy as KFC's.

Opportunities 

The emerging markets are bursting at the seams with growth potential,



The emerging markets are full of growth potential, especially in Russia and China, both of which hold long-term promise for KFC.



A more varied and balanced menu than their rivals.

Threats 

Input costs are rising.



Division with a lot of competition



Customers are becoming more health-conscious.

Popeye's Internal Analysis

Marketing A marketing mix is a tool that lets you identify the marketing elements that will help you place your business offer effectively. They include the pricing where a combo meal at Popeye's would cost anywhere between $7 and $10. Popeye's promotional strategy is expanded by every branch's location. What I mean by that is the fact that in some locations the restaurant may put out something new. Verified chicken, fillets, fish, salads, rolls, Louisiana beaux, sides, desserts, sauces, and drinks are among the company's product range. Chicken patties, crispy seafood, red

Popeye's Louisiana Kitchen

9

beans, and pasta are also available from Popeye's. They distribute their products globally, as they have several franchise holders (Amir, 2019). Human Resources The human resources department at Popeye's Louisiana Kitchen has a significant effect on the working environment. Workers at Popeye's Louisiana Kitchen award their work climate a C+ and are disappointed. When asked what they like about Popeye's Louisiana Kitchen's culture and climate, one user said, "When there are better salaries and incentives, we would be living the good life." Operation and Supply Chain Popeye's senior management seems to have grossly underrated the influence of social media and the latest chicken sandwich's success. While the general public may believe Popeye's lost out on millions of dollars as a result of the food shortage, it is the lesser of two evils. Given that the vast majority of the 2,500 Popeye's restaurants are franchises, new products are usually opposed because they expose a store manager to the economic strain of retaining perishable excess stock, forcing the owner to take a loss (Arthur, 2019). Another reason for the Spicy Chicken Sandwiches shortage is a possible supply chain issue: the excitement and craze around these media platforms "chicken wars" has put a strain on the chicken supply. This year, poultry processors are forecast to process a record-breaking 43.3 billion pounds of chicken. To add to the pressure, almost every rival of Popeye's has introduced a crispy chicken-focused advertising campaign, which has customers flocking to these franchises. Accounting/Finance

Popeye's Louisiana Kitchen 10

Popeye's Louisiana Restaurant Inc's assets structure contained a significant proportion of noncurrent assets at the end of the time-examined (77.2 percent). Just 22.8 percent of the overall balance was made up of existing assets. Throughout the period under consideration, an increase in assets to USD 262,200 thousand was verified. Despite increased assets, Popeye's Louisiana Kitchen Inc's equity decreased by 85.7 percent to USD 8,400 thousand (or 3.2 percent of the overall balance) on December 31, 2016. The rise of the following asset categories led to Popeye's Louisiana Kitchen Inc's rise in total assets: Net intangible assets (except goodwill): USD 40,300,000. (60 percent) Net worth of land, plant, and equipment: USD 18,000 thousand (26.8 percent) Other existing assets – USD 6,000 thousand (8.9 percent) Due to a negative shift in things such as "Prepaid cost, existing" in resources and "Extra paid in cash" in the corporation's sources of funding, which were USD -5,200 thousand and USD -77,900 thousand respectively for the market segmentation, total assets of the company did not rise to a greater extent (from 31 December 2013 to 31 December 2016).

The Company's Asset Structure on 31st December,2016

non current assets

other current asset

Current receivables

Inventory

Popeye's Louisiana Kitchen 11

fig2. Pie chart showing company's asset. On December 31, 2016, Popeyes Louisiana Kitchen Inc's debt ratio suggested a disproportionate percentage of debts, which matched 96.8% of the principal amount. Liabilities are thought to be reduced to 60% of total assets. If not, the company's financial health will suffer as its dependency on creditors becomes too great. The debt ratio is 0.6 or less when the capital structure is natural. Throughout the time, the debt ratio remained outside of the appropriate range.

Capital structure of the Company on 31 December, 2016

non current liabilities

current liabilities

equity

Fig3: The Capital structure of the company Information Systems A recent data security breach at Popeye's may have affected the safety of payment details of some buyers who used a debit or credit cards at some CCC various restaurants between May and August of 2016. At Popeye's the information obtained is used for the following purpose: Create an account by registering; Managing and running our stored-value card program;

Popeye's Louisiana Kitchen 12

Provide and maintain the goods and services that you've asked for; Inform you about our goods, programs, and special offers; Targeted ads, promotions, and discounts are delivered. As allowed by law, we can collect or obtain confidential information about our customers from publicly and commercially viable sources, which we may combine with other data we collect from or about you. Sustainability As part of the Restaurant Brands for Improved sustainability campaign, Popeye's is delighted to announce renewed food quality expectations for the next five years, providing guests with even more reasons to support Popeyes Chicken. The pledges are part of the brand's ongoing efforts to serve ethically produced, high-quality, and delicious food each day while reducing environmental impact. We're pleased to serve our customers our famous, tasty chicken, made with real, more sustainably sourced products and packaged in more eco-friendly packaging, as part of our commitment to quality.

Reflection on Company's Position

Popeye's Louisiana Kitchen 13

The Great Chicken Sandwich War started in August 2019 with the introduction of Popeye's first-ever chicken sandwich and Popeye's advertising team's swift response to a tweet by their competitor Chick-Fil-A. Popeye's could not have anticipated a more successful product launch, and they owe all of their success to social networks. They gave no indication of the service being a limited-time offer when they first launched it. Limited Time Offers are typically introduced with innovative or gimmicky promotional messages that make it clear that the product is not a permanent menu item, generating a sense of urgency in the customer to get it while it's still accessible (Zeringue, 2019). The company is currently in a good strategic position, due to the increasing demand for its chicken sandwiches, distinctive menus, and products giving it an all-exclusive chance to penetrate the existing and new markets with limited competition from other fast-food vendors due to the uniqueness of their product. The firm's strategy is to increase its market reach while exploiting new opportunities to reach newer markets in the global Popeye's system. They have also increased on their profitability scale as the company is generating maximum revenue from the sale of their "chicken sandwich". A closer look at the numbers indicates that things have changed. Top-line growth, combined with RBI's operating model and processes to scale, resulted in double-digit profitability growth for Popeyes in each segment of 2018 (Schwartz, 2019).

Popeye's Louisiana Kitchen 14

APPENDICES: Popeye's Net Restaurant Growth

Fig 4: Popeye's Net Restaurant growth

Popeye's Louisiana Kitchen 15

Popeye's Net Sale Revenue for the Year 2018

Fig 5: Popeye's Net Restaurant's Sales Trends

Popeye's Louisiana Kitchen 16

References Amir, A. (2019, July). Fast Food Chicken Franchises in the US. Retrieved December 4, 2019, HTTPS://

clients1. Ibisworld.com/reports/us/industry/default.aspx.

Meyer, Z. (2019, October 4). Who bought the popeyes chicken sandwich? Wealthy Gen-Xers who live alone. Retrieved December 4, 2019. https://www.fastcompany.com/90413194/popeyes-chicken-sandwich-secret-revealedwho-bought-them Mustafa, A. (2020). Factors of Viral Marketing that Affecting Customer's Satisfaction Case Study of Jordanian Restaurants. Journal of Business and Social Review in Emerging Economies, 6(2), 473-481. https://doi.org/10.26710/jbsee.v6i2.1091. V Kraak, T Englund, E Serrano. (2017). "Progress Evaluation for the Restaurant Industry Assessed by a Voluntary Marketing-Mix and Choice-Architecture Framework That Offers Strategies to Nudge American Customers toward Healthy Food Environments" Int. J. Environ. Res. Public Health 2017, 14, 760. https://doi.org/10.3390/ijerph14070760...