1. High-End Restaurants Around the World Shelly Aggarwal Jin Liang Nate Harmann BADM 381 – Professor Aguilera October 7, 2008

2. Outline of our Presentation I. Successful restaurant franchises from the U.S. II. Successful Indian international restaurants III. Difficulty for Chinese restaurants IV. Successful Japanese international restaurants V. Opportunities for expanding internationally

3. Successes from the U.S. Brinker International ► Operate Romano's Macaroni Grill, On the Border Mexican Grill, Maggiano's Little Italy, and Chili's ► Diversified foods that creates a multicultural portfolio with global brands ► Diversified foods that creates a multicultural portfolio with global brands ► "Our philosophy is based on the belief that when diverse thoughts and perspectives are integrated into daily operations, we can all enjoy the fruits of our success." – Ron Kirk, Board of Directors ► http://www.youtube.com/watch?v=k69oA6lUQeE&NR=1 http://www.youtube.com/watch?v=k69oA6lUQeE&NR=1

4. Brinker International ► 1 million+ people dine at Brinker restaurants daily worldwide ► 1 million+ people dine at Brinker restaurants daily worldwide Annual Sales per restaurant: ► #2 Maggiano's ($9.4 million) ► #7 Romano's Macaroni Grill ($3.3 million) ► #8 Chili's Bar and Grill ($3.2 million) ► #10 On the Border ($3.1 million)

5. Reasons for Success ► An expanding middle class and faster growing economies overseas have made international expansion an ongoing focus ► An expanding middle class and faster growing economies overseas have made international expansion an ongoing focus ► Brands are highly popular with guests seeking higher quality food and American hospitality ► Competition in the casual dining segment is not well- developed ► Foreign markets provide for competitive advantage in terms of cost of food, facilities, and labor ► Lower dining costs makes brands more accessible to broader segment of population

6. Future Opportunities ► Mainly franchise now (which provides for lower economic risks) but are looking into joint ventures that would increase financial opportunities for the company ► Mainly franchise now (which provides for lower economic risks) but are looking into joint ventures that would increase financial opportunities for the company ► In Mexico, looking to increase from 53 to more than 100 restaurants in the next few years

7. Successes from India Saravana Bhavan ► 25 locations in India and 16 other locations in 7 countries (Canada, U.S., England, U.A.E., Oman, Malaysia, Singapore) ► Full-service restaurants, fast food, carry-out, delivery, catering ► 1981 – founded by Mr. P Rajagopal aka Annachi ► First branch opened in Chennai, India – Hotel Saravana Bhavan ► Menu includes both North and South Indian food, Chinese food, Desserts, Beverages, Baked goods, and Ice cream and Ice cream

8. Expanding Internationally ► Generally, real estate in India is too expensive and encourages entrepreneurs to look at destinations, such as the UK, the US, and the Middle East ► Higher rate of return in those areas ► Customers in India are more price sensitive – concept of specialty restaurants not as popular

9. Constant growth ► Study by McKinsey shows that Indian food market will grow two-fold 2025 (in India) ► In urban areas, snacks are more popular  snacks specifically grow 15-20% annually ► Great potential for India to become a reliable outsourcing partner in food sector ► Becoming increasingly popular in the US and the UK  Large populations, great variety, and increased exposure http://www.youtube.com/watch?v=bZeb7fh4ER8

10. Chinese Restaurants ► Chinese food is too common ► Too many different types of Chinese dishes exist ► Too often fast food and takeout Chinese restaurants serve “Americanized” Chinese foods ► Real authentic Chinese might not fit the tastes of that specific country

11. Top Japanese Restaurant Benihana Inc (meaning “red flower”) ► First restaurant opened in 1964 in New York ► Founded by Rocky Aoki ► Employs 5,000 Employees world wide ► 90 Locations in the US, 19 international locations ► One of the company’s main selling point are “teppanyaki”, which is grill meat in an iron plate ► Another main selling point is the chef cooks the food in front of the customers ► Benehana is the founder of this type of style in the US

12. Reasons for Success ► Adapted American style of cooking and serving authentic Japanese food ► Unique dining experience (the first Japanese restaurant to cook in front of customers in the US) ► http://www.youtube.com/watch?v=R-mgolJ5t00 http://www.youtube.com/watch?v=R-mgolJ5t00

13. Opportunities for all Markets ► Open the franchise in new or existing high quality hotels  Make deals with certain high quality international hotel franchises  Can guarantee a steady flow of customers and customers from all over the world  Can help gain recognition through international customers  Positive word-of-mouth through satisfied customers

14. Conclusion ► Many high-end, full-service restaurants have been able to expand by opening up new locations internationally ► These restaurants are further popularized by media exposure and high ratings (Michelin rating system) ► International expansion is easier in some markets than others and only certain types of restaurants succeed

15. Sources ► http://www.indianrealtynews.com/real- estate-india/indian-restaurants-expanding- overseas.html http://www.indianrealtynews.com/real- estate-india/indian-restaurants-expanding- overseas.html http://www.indianrealtynews.com/real- estate-india/indian-restaurants-expanding- overseas.html ► http://www.ibef.org/artdisplay.aspx?tdy=1& art_id=19844&cat_id=60 http://www.ibef.org/artdisplay.aspx?tdy=1& art_id=19844&cat_id=60 http://www.ibef.org/artdisplay.aspx?tdy=1& art_id=19844&cat_id=60 ► http://www.saravanabhavan.com/ http://www.saravanabhavan.com/ ► http://www.benihana.com/ http://www.benihana.com/