1. Industry Analysis Full Service Restaurants By Team Paradigm Pirates

2. What We Will Cover • Quick Overview of Industry • Summary of Forces Affecting the Industry • What Works • Industry Attractiveness

3. Industry Overview • Over 200,000 individual establishments across the nation • Generating about $190 Billion in Annual Revenue • Segmented Industry • Mom & Pop or Multi-National Conglomerate • Mature Growth Stage • Highly competitive • No clear dominance in the industry • Top 4 companies make up just 8% of market share

4. Internal Forces Affecting The Industry • High Threat of Substitutes • Competitive Rivalry is Intense • Threat of New Entrants • Buyers Have the Power • Macro-Environment • Low Power of Suppliers

5. External Forces Affecting The Industry • Political • Economical • Influences of Fluctuating Economy • Socio-Cultural • Health Conscious Consumers • Technological • Legal • Licensing, Health Regulations • Environmental

6. What Works • Economies of Scale • Cost Management • Differentiation • Are we really selling just food?

7. How do You Fail? • Zone of Competitive Battle Rests in the Garden of Eden • Hard to control costs • With a saturated market, differentiation is extremely difficult HIGH Zone of Competitive Battle Relative Differentiation Danger Zone Death Valley Relative Cost LOW HIGH

8. Industry Attractiveness: Pros • Low Barriers to Entry • No Dominant Firm • Low Cost of Capital • Expected Future Growth

9. Industry Attractiveness: Cons • Highly Competitive • Market Saturation • Mature Stage of Life-Cycle • Slim Profit Margins • Difficult to Manage Costs

10. Do We Want To Play This Game?