The Question of Investor Strategies with Popular Pizzerias

Though it is widely known that the U.S. is gaining much profits from America's number one popular dish (pizza), it has also been seen that the U.S. is weak in terms of economic growth. 

Sales in pizzerias are also affected, even in some pizza chains and the competition is also tough, especially these days that customers are cutting costs and are seeking value for their money. 

Popular pizza chains such as Domino's Pizza Inc. is one of those striving to have improved growth. The first quarter results for their income have been reported to have the same amount as last year. The secret to their success is all about efficient operations. This way, they need not to cope with the pressure of increasing sales. 

Meanwhile, Brinker International, Inc. has been operating Chili's Grill and Bar Restaurants and Maggiano's Little Italy Restaurants. Though their strategy were not as favorable as Domino's, they have also survived going through the crisis. The first step they took was replacing their usual ingredients and improving them. They also made sure that their sales were higher, hence has allowed higher bonuses. New equipment has also been purchased to improve productivity. 

Ruby Tuesday, Inc. on the other hand had another approach. They used a strategy where closing the Marlin & Ray's, Truffles Grill, and Wok Hay Restaurant concepts. The money was used to repurchase stocks and used cost saving efforts where their brand was seen as a much more approachable restaurant. 

Though these restaurants have surviving skills in strategy, pizzerias ought to think well and analyze their status before undergoing any decision. Which strategy do you think is best?
Posted by Diane Araga, on August 11, 2013 at 12:00 PM