MBA FPX 5012 Assessment 2

Marketing Analysis Report with Metrics

MBA FPX 5012 Assessment 2:R & B Breakfast Club

R&B Breakfast Club is a locally operated and owned restaurant that serves American and Mexican food, specializing in breakfast and lunch. Bill Garcia established the restaurant and opened it on October 15, 1997. Garcia initially only offered breakfast delivery services but grew as demand increased for a permanent location. After a year of running the restaurant in a local bowling alley, Garcia received a call from Harold Holmes, co-founder of Taco John’s International, who offered Garcia an opportunity to lease the current property. Even though Garcia was interested in buying the property, Holmes opted to rent it out because he believed in the restaurant’s potential and desired to see the restaurant succeed. Subsequently, after the death of Holmes, Garcia purchased the property from Holmes’ children in 2012. The restaurant’s theme is that of the 50s and 60s, specifically Elvis Presley (Haak, 2018).

Operating Industry

According to the North American Industry Classification System (NAICS), the restaurant falls within the 722513 Limited-Service Restaurants industry since it just offers breakfast and lunch. It operates from Monday to Saturday at 6 a.m. and closes at 1 p.m. According to the Standard Industrial Classification (SIC), the restaurant falls under code 5812, referring to eating places that are concerned with the retail sale of food and beverages that are prepared and ready for immediate consumption on premises or instantly.

B2B or B2C

R&B Breakfast Club is a business-to-consumer (B2C) company, meaning it sells directly to its consumers without intermediaries. The restaurant provides consumption services such as dine-in, takeout, and delivery directly to its consumers (Kenton, 2019).

Product Offerings

The restaurant menu has a wide variety of breakfast and lunch items. Breakfast foods include pancakes, French toast, and breakfast burritos, and lunch foods include burgers, sandwiches, tacos, and fajitas. The “Home of the Breakfast Burrito” breakfast burrito includes hash browns, eggs, and meat of their choice and is topped with mild or hot chili sauce.

Competitive Environment

Competitor analysis is necessary for each business to get an idea about market trends and develop effective strategies. R&B Breakfast Club has competitors in other local diners in the area. However, there is some variation in menus offered by each diner, and therefore R&B Breakfast Club can differentiate itself within the market (Warren, n.d.).

Top Five Breakfast Places

The ratings of the top five breakfast places in the area are as follows:

One of the key strengths of R&B Breakfast Club is its low staff turnover rate, which has ensured a consistent customer experience across the years. The restaurant has been able to retain most of its employees, offering a stable working environment.

Employee Loss Costs

Employee turnover costs companies money, and these can be divided as follows:

The restaurant’s low employee turnover has translated into cost savings, with only two staff members having resigned over the past two years (N/A, n.d.).

Market Characteristics

R&B Breakfast Club practices mostly word-of-mouth promotion, with minimal online advertising. Local blogs, such as “Cheyenne Wyoming Live the Legend, Off the Eatin’ Path: Breakfast Edition,” have promoted the establishment. Cheyenne’s city population of about 60,000 is nearly doubled during Cheyenne Frontier Days each summer, which provides an enormous publicity boost for the restaurant. Extending its web presence, particularly on social networks, could also help to grow R&B Breakfast Club’s followers further, including tourists.

Social Media Metrics

On Facebook, R&B Breakfast Club has 1,879 likes, 1,911 followers, and 2,970 check-ins. It has been reviewed 143 times with an average rating of 4.3 out of 5 stars. Yelp data show that since 2007, the restaurant has been reviewed 145 times