MarketLine Blog

Posts about Restaurants

Blue Apron – Changing the way of eating and buying food


The US meal-kit delivery service is projected to be a $5bn market over the next three years. Though space is already crowded, a start-up company, Blue Apron, managed to carve a niche out for itself. By recognizing the educational void for the multitude of home cooks and building a wildly successful business around feeding them, while sharpening their kitchen prowess, the company managed to build a $2bn recipe-delivery business with 2,500 employees, in 36 months. By designing its business model around supply chain efficiencies, the company managed to get fresher… Read more

Belinda Wong appointed CEO of Starbucks China as part of growth plan


A focus on China and on increasing store openings in the country has been part of the Starbucks strategy since the company felt the negative impact of recession. Prior to 2008, Starbucks had been growing rapidly in terms of store openings, revenues, and operating profit. However, this all changed as the recession hit and the company struggled to cope. As many countries around the globe fell into recession, the impact on Starbucks was strongly felt. This led to a shift in resources to growth in international markets. It was felt… Read more

Chipotle outgrows McDonald’s and puts the “fast” in fast casual, leaving its former parent in its wake


In just 21 years, Chipotle has fast become one of America’s major success stories, growing from a single restaurant in 1993 to over 1,700 restaurants (1,715 as of June 30, 2014). However, the company had a little help along the way. In 1998, fast food giant McDonald’s took a minority stake in the fledgling Chipotle, owning 90% of the company by 2006. During McDonald’s’ stewardship, Chipotle grew its restaurant network from 14 restaurants to over 500, with 100 a year being added. When Chipotle went public in 2006, McDonald’s took… Read more

Burger King shows franchising is the way to be profitable


The FRANdex is a stock market index that tracks the market cap of a basket of companies which act primarily as business system franchisors. The latest (Q1 2014) report on its performance reveals that it has outperformed the S&P 500 index since 2006. It looks like these companies are doing something right. In fact, learning how to “do something right”, and then passing on the knowledge, is central to the business model of successful franchisors. Take Burger King, for example. Founded in 1954 as a quick service burger restaurant, there… Read more

Starbucks: Expanding beyond coffee


In recent years, Starbucks has embarked on a growth strategy known as the ‘accelerated growth plan’ in an effort to grow the business. A key part of this initiative, as discussed in the case study ‘Starbucks Corporation: Accelerated Growth Plan’ , has been the expansion of in-store offerings beyond coffee. In order to aid this expansion Starbucks made a number of acquisitions, namely of Evolution Fresh, La Boulange, and Teavana. Following the purchase of Evolution Fresh in late 2011, the company set out aggressive growth plans with the plan being… Read more

McDonald’s is going to pumpkin battle with Starbucks


To maintain profitability in the face of higher labor, occupancy and operating costs, McDonald’s is responding by adding more premium and also expensive, items to its menu. After introducing wraps and smoothies, the company is now looking to take a sip of the coffee market and win some of the Starbucks crowd. Pumpkin spice-flavored latte is the new battlefield. According to Starbucks spokeswoman Alisa Martinez, Starbucks has sold more than 200 million pumpkin spice-flavored lattes within the ten years since they were introduced in 2003. A 16-ounce pumpkin-spice latte sells… Read more