Darden Restaurants vs. Yum! Brands ‐ Food Industry Business Models

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Darden Restaurants vs. Yum! Brands - food industry business models

Even though at first glance both Darden Restaurants and Yum! Brands seem to be operating in a fairly similar business environment; through more in detail information on both companies their differences in strategy and business models are obvious. Both companies have multiple highly specialized, nowadays famous brands/ restaurant chains, which is possibly the only similar strategic factor both companies have in common. Darden Restaurants is specialized in casual dining restaurant chains, which offer customers full service dining experience, authentic and good quality food with decent price. Atmosphere, food and service are all average, and their target group is people who are interested in tasty, quality food but are not willing to go through the trouble of going for fine dining option. Fine dining requires usually more preparations such as advanced booking, dressing up and is of course more expensive. Thus, major strategic factors for Darden is to create pleasant experience through decent service, quality of the food and ease of access while still keeping prices low. In general their customers could be middle aged people with average income. Notably Darden restaurants are mainly operating in North America and are operating every restaurant and restaurant chain themselves, only few restaurants opened outside of America being franchised. On the other hand, Yum! Brands are specialized in fast food - or quick service restaurant chains by offering ready- or nearly readymade tasty food for cheap price in convenient locations around the world. Their customers are usually looking for fast snack, and have no desire to look for healthier or more traditional options for dining. Customers are generally younger people with lower income or people in urgent need for fast snack, eq. energy for shopping. Furthermore, families with low income can have affordable food for whole family. Thus, major factors for...
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