4 reasons The Cheesecake Factory is crushing the competition
Reuters
The brand has the best traffic in the casual dining sector, according to a recent report by Morgan Stanley.
And restaurants are ridiculously profitable: the average Cheesecake Factory location sells $10.5 million in food each year, among the highest volumes in the industry.
Here are few reasons the Cheesecake Factory is beating everyone else in the industry.
1. Choosy expansion plan
The Cheesecake Factory has 177 locations, and eventually wants to expand to 300.
But the company is very selective about where it opens, performing exhausting research to find only "A-plus" sites, CEO David Overton told investors.
"The number of openings each year is governed by the availability of premier sites not by capital or infrastructure constraints," Overton said.
Being careful about where it expands has helped the company be successful.
Morgan Stanley
2. Great quality
Basically all of the Cheesecake Factory's food is made from scratch, The New Yorker reported in 2012.
Author Atul Gawande called the food "delicious."
"Nothing smacked of mass production," Gawande wrote. "My beets were crisp and fresh, the hummus creamy, the salmon like butter in my mouth. No doubt everything we ordered was sweeter, fattier, and bigger than it had to be."
The high quality of the food keeps today's choosy customers coming back.
The only thing not homemade is the cheesecake, which comes from an actual factory in California.
Reuters
3. Mass appeal
The Cheesecake Factory is appealing to families because there's something for everyone.
The New Yorker piece notes that the Cheesecake Factory's huge menu, which includes seafood, pasta, burgers, and more, appeals to a broad audience.
The brand has pinpointed what customers want and know how to make them happy.
4. Smart operations
The Cheesecake Factory's kitchen is "laid out like a manufacturing facility," according to the New Yorker.
The brand lets prep cooks hand-chop veggies, meat, and seasonings. The actual dishes are prepared by cooks.
This operations system helps the company prepare food fresh and get dishes out faster.
The chain also uses data analytics to predict what customers will order, the New Yorker reports.
This means the company uses nearly 98% of the food it buys.
Cheesecake Factory annual report
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market