For an assignment, I need to open a new Applebee's (The restaurant) in Toronto, Canada.
What would be the competitor analysis of this Applebee's?
- A detailed competitor analysis.
- Identify the key direct and indirect competitors for this restaurant and what you consider to be their major strengths and weaknesses in relation to your restaurant and offer, and what their target market is looking for.
Applebee’s is, of course, a restaurant that is aimed at casual diners. It is a family-oriented restaurant. This means that its direct competitors will be other restaurants that have similar target markets. Applebee’s will have a variety of indirect competitors. These will include bars, other types of restaurants, and even people who prefer to cook at home.
A restaurant’s direct competitors are those that sell similar types of food in a similar price range and atmosphere. For Applebee’s, major competitors would include such restaurants as Chili’s, TGI Friday’s, and Buffalo Wild Wings. I do not know if there are any Canadian chain restaurants that compete in this niche. In addition, there are likely to be restaurants in Toronto that are direct competitors but which are not parts of chains.
A restaurant’s indirect competitors are other places that people would be likely to eat as replacements for that restaurant. These would include all other restaurants in the same price range as Applebee’s. For example, Olive Garden and Tony Roma’s would be indirect competitors because they are largely targeting the same type of customer, but are offering different kinds of food. Restaurants that offer other kinds of food (such as Chinese restaurants) are indirect competitors of Applebee’s if they offer similar prices and atmospheres. Finally, Applebee’s is also in indirect competition with the idea of eating at home. Applebee’s has to persuade people to eat at their restaurant rather than staying home and eating.
A good competitor analysis would include more information than is available to me. It would look at the various restaurants and determine how the target markets see those restaurants. It would identify ways in which they are perceived more or less positively than Applebee’s among the people that they are all trying to attract. For example, it might be that TGI Friday’s is well-known for its bar drinks and might be more attractive to younger people who might otherwise patronize the bar at Applebee’s. If you have access to this sort of information, you should put it in this analysis.