Red Lobster Case Study

2142 Words 9 Pages
Register to read the introduction… 4). Although Red Lobster has had success in Canada, there is no other quick service seafood restaurant in the U.S. that has a major -based quick-service seafood restaurant who has established a major existence towards the northern end of the border. Barry Shannon (1996) Vice President of Operations of Red Lobster in Canada explains that “Red Lobster offsets higher food, beverage and labor costs with higher check averages -up to 20 percent higher than at Red Lobster's counterparts in the States” (p. …show more content…
KFC entered China about five years earlier, but McDonald’s outperformed KFC in Beijing” (Haddad, 2010, para. 3). Therefore, KFC is better at being more Chinese than McDonald’s, but McDonald’s is making progress.
Explain the type of potential target consumers for Red Lobster in China and how this might affect your menu choices. The potential target consumers of my choice for Red Lobster in China are the middle class consumers, families of all ages & business people. In my opinion, the middle class will be more loyal to the brand. When dining out, they are more willing to try and spend on new foods as well as entertainment. According to the Euromonitor (2007), “the middle class in China is expected to reach 700 million people by 2020 compared to less than 100 million in 2007”(para. 2). Most families will dine at Red Lobster as they are known for celebrating special occasions such as anniversaries, birthdays, weddings
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Some laws to consider would be the requirement of securing a business license, service businesses must be co-owned by a local joint venture partner, and that land cannot be owned, only rented or leased, being aware of fire and safety regulations for restaurants and ensuring they are enforced, and ensuring each worker has a contract, as well as the labor contract law. The considerations that may affect my decision to proceed if unable find a reliable, trustworthy partner and also the rise in labor costs due to the financial crisis that occurred in 2008. Another consideration is recruitment entering the Chinese market. With the economy growing in China at such a rapid pace, this consideration can be affected by the demand for and lack of qualified applicants. According to Gross (1998), “China will surpass the United States to become the largest economy in the world” (para.

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