Marcus Johnson February 12, 2016
Outback Steak House Case This case will reveal information in detailed facts about outback steakhouse and give my personal option as to how I feel the company will succeed in areas of their expansion. Outback steakhouse was one of the fastest-growing and most acclaimed restaurant chains in North America. Outback steakhouse’s principal feature strategy in the US was to emphasize on high-quality ingredients and preparation with a limited number of menu items that can appeal to a diverse array of tastes people will enjoy and try. Serving only at dinner time was the main idea of outback because simply food prepared in the morning would lose its freshness by evening. Making there dinner portions sizeable at moderate prices that can attract different customers through casual dinning but also with high attentive service. Having their restaurants in residential areas rather than downtown enforces the merits of keeping rent low, and encouraged customer and employee loyalty. With their Australian theme and appeal, outback steakhouse has truly got the respect they deserve and have develop long-term relationships for futures to come. Outback Steakhouse key elements for international expansion was a huge belief they lived by and opportunity for their suppliers. Huge Connerty, the president of Outback International believed that the approach that they are going to take is that they will franchise international operation with company-owned stores here those foreign countries so that will allows them to focus on what he believe is outback pure strength, and support operation. Looking at the geographical pattern of expansion, outback will first be in Canada, then to Hawaii, then hopefully South America and Far East Asia to develop their relationship.
The proposal of outback steakhouse to expand internationally was in the works but looking at past companies that have expanded already, they are trying to decide if they should expand through starting a restaurant chain in US or just go straight international. The attraction of overseas markets was that their restaurant markets were typically less saturated than those of the US and most of the local competition was made up of independent, family-owned restaurants rather than large chains. But also at the same time based on Outback’s appeal and their success in the US, I believe it will take time for them to be successful internationally in various countries. Connerty strategy outline for the company was viewed a good outline I believe Outback will become successful outside the US. The advice I would Chris Sullivan about the optimal rate of international expansion is that if you want outback to be very successful in those countries is to have at least 15-20% of their total outlet stores in international countries to become successful. I believe that joint venture into foreign markets would help outback to get a head start into those countries. The countries I would enter first would be Canada then Caribbean first to see how well you get, then Hawaii. Give those countries a few years to become successful then venture over to the Far East and then Europe would be last in the long-term project. I believe connerty is the right head for the international expansion because of the experience he has had and developing outback franchise within the US.