Student: Phuong Linh Nguyen
Professor: David Hover
In 1988, the two Outback restaurants were opened in Tampa, by three founders—Chris Sullivan, Bob Basham, and Tim Gannon. In 1995, Outback had over two hundred stores in the United States. Within a few years, the company achieved significant success such as being the fastest growing and best steakhouse chain in the country. Outback is not only successful because it offers customers a great eating experience, but because it is a great example of successful entrepreneurship. Therefore, analyzing the company’s business model and strategies will give important lessons for managers.
Outback restaurant business model is based on high quality food at affordable price. The company achieves differentiation and low cost structure by attaining superior innovation, quality, and efficiency.
Firstly, being innovative is one of the best ways to maintain the competitive advantage because new products can better satisfy existing customers and attract new customers. As a matter of facts, Outback invests in research and development to recognize the hottest food trends, in order to create new menus. Beside steak, they also serve chicken, fish, and seafood to satisfy the ever-changing needs of consumers. The curbside takeaway concept, which allows freshly made food to be delivered to customers’ car, was firstly developed by an Outback’s managing partner (Outback). In addition, this is the first restaurant chain introduce gluten-free menu, which is specialized for Celiac disease community (Outback).
Secondly, Outback focuses on developing superior quality. Attaining superior quality will benefit the company in building reputation and creating...