Locating the Next Red Lobster Restaurant case study

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The response addresses the query posted in 1105 words with APA references

//In the US, the casual dining market is rapidly growing at a faster pace as the customers residing there prefer to spend more money by dining in the restaurants. The food chain industry is highly lucrative in nature; therefore, the selection of the right location is essential during the opening up of a new outlet. Moreover, the food industry in the US is growing at a faster pace; thus, the industry is becoming saturated with the rise in the number of food chains.//

It is imperative for the restaurant chains operating in the US to attain a distinguishable position to withstand the growing intense competition. For this reason, restaurants need to lay increased emphasis on their menu, pricing, service, management, and ambiance in order to create a distinctive place in the industry segment. In this essence, the location of the restaurant is an essential component that can help in attaining the competitive edge in the industry.

Answer 1

In the context of Red Lobster, various forms of new technology have emerged, which helps in analyzing new locations for the establishment of new outlets in the minimum possible time. MapInfo is a software-based module that has distinctive features like a geographic information system, which enables to analyze the trade areas. It helps the businesspeople in creating psychographic profiles of a diversified customer base. With the help of these profiles, locations are broken down into small clusters, where the trade areas are examined on the basis of customer income, purchase behavior of consumers, and geographic areas (Case Study: Red Lobster Restaurant Chain). The trade areas are analyzed in a peculiar manner, where Red Lobster can anticipate the performance of the new outlet as compared to that of its competitors. This in turn will help the restaurant to enhance its customer ...