Outback Steakhouse
Outback Steakhouse in Korea: a success story.
by Lee, Kyuho^Khan, Mahmood A.^Ko, Jae-Youn
Cornell Hospitality Quarterly • Feb, 2008 • CQ CASES
Interviews with executives and managers of the Outback Steakhouse Korea chain point to the critical success factors that have allowed the chain to expand even in the face of economic turbulence. Opened in 1997, the Korean operation first had to survive the Asian currency crisis, which it did with assistance from its franchisor. With close cooperation between Korean and American Outback chain executives, the Korean operation has seen considerable success in the past decade. Critical success factors fell into the following categories: decentralized organization, strong training programs, innovative human resource management (including generous pay and benefits), flexibility in marketing strategies, custom menus and operations, a judicious blend of Korean and American business culture, competitive service strategies (including a money-back guarantee), innovative site selection, and a close relationship of franchisor and franchisee.
Outback Steakhouse Korea has proven to be a successful casual-dining transplant from the United States. Highlighting the company 's competitive advantages and core competencies, this study describes the critical success factors for this restaurant company. Key among the success factors is a decentralized structure that takes advantage of the business acumen of managing partners. A flexible approach that allowed the Korean chain to respond to the country 's cultural patterns and market preferences is balanced with a strict approach to hiring and training.
Keywords: international franchising; Outback Steakhouse; Korean restaurants; restaurant critical success factors
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Although the formal barriers to doing business cross national borders can be relatively low, transplanting a restaurant concept from one culture to another remains a challenge, especially when that restaurant has
by Lee, Kyuho^Khan, Mahmood A.^Ko, Jae-Youn
Cornell Hospitality Quarterly • Feb, 2008 • CQ CASES
Interviews with executives and managers of the Outback Steakhouse Korea chain point to the critical success factors that have allowed the chain to expand even in the face of economic turbulence. Opened in 1997, the Korean operation first had to survive the Asian currency crisis, which it did with assistance from its franchisor. With close cooperation between Korean and American Outback chain executives, the Korean operation has seen considerable success in the past decade. Critical success factors fell into the following categories: decentralized organization, strong training programs, innovative human resource management (including generous pay and benefits), flexibility in marketing strategies, custom menus and operations, a judicious blend of Korean and American business culture, competitive service strategies (including a money-back guarantee), innovative site selection, and a close relationship of franchisor and franchisee.
Outback Steakhouse Korea has proven to be a successful casual-dining transplant from the United States. Highlighting the company 's competitive advantages and core competencies, this study describes the critical success factors for this restaurant company. Key among the success factors is a decentralized structure that takes advantage of the business acumen of managing partners. A flexible approach that allowed the Korean chain to respond to the country 's cultural patterns and market preferences is balanced with a strict approach to hiring and training.
Keywords: international franchising; Outback Steakhouse; Korean restaurants; restaurant critical success factors
**********
Although the formal barriers to doing business cross national borders can be relatively low, transplanting a restaurant concept from one culture to another remains a challenge, especially when that restaurant has