The cheesecake Factory
The Cheesecake Factory.
Servicescape analysis of TGI Fridays and Chili’s.
Servicescapes is defined as the service assembly environment whereby the client and seller collaborate, linked with tangible products that expedite the communication and performance of the service (Booms & Bitner 10). It incorporates both the interior and exterior of the facility. The facility’s internal aspects are reflected in the interior equipment, layout, and design while its exterior qualities are reflected in the landscape, surrounding environment and parking facilities. On the other hand, the overall ambiance also impacts of the servicescapes of a facility. This section will analyze the servicescapes of TGI Fridays.
The servicescapes dimensions of TGI Fridays include building cues, sensory cues, signage, and processes. First, the buildings cues in TGI Fridays have furnishings such as the wooden floors in most of their facilities, décors such as theatrical stage and spaciousness. Second, sensory cues of the restaurant are of four type’s namely sound, visual, smell and taste. Sound signals are good music played in the restaurant; visual cues include the lighting and cleanliness of the place; smell cues include the pleasant smell in the place such as those coming from the food; taste cues include the meal experience that customers of the restaurant are subjected to. Thirdly, the signage of TGI Fridays includes both emotional and memories message that have a great impact on attracting customers to the place. Lastly, processes incorporate the appearance of TGI Friday’s staff who clad in unique uniforms with red and white stripes.
On the other hand, Chili’s has an almost similar servicescape to TGI Friday’s with a little difference in the physical evidence. The exterior of the restaurant is painted red, green and brown. The most distinct feature of the restaurant’s exterior is the chili’s logo, which is a red-pepper representation. The logo is brightly light to attract customers. These themes are also incorporated in Chili’s interior; painting is red, green and white, and the chili’s logo is installed in various parts of the interior such as the bar. The interior design is well crafted to make it relatively spacious. Menus are set at each table and the waiters, clad in distinct black uniform with red stripes on the collar and a chili’s logo, take client’s orders. The interior is also properly clean from the dining area to the kitchen. Lastly, sound cues include relaxing music that is played in the restaurant; a live band might sometimes sing the restaurant’s theme song to the clients.
All the dimensions mentioned above result in the client developing a holistic perception of the service environment of the restaurant. Accordingly, this results in cognitive and affective responses from the customers; customers can either like or dislike the facility. If they like the facility, it will lead to emotional and behavioral responses from them. Customers then go through three stages namely the approach, exploration, and exit stage. The approach stage is where the interest of the client is aroused, and he/she is drawn to the facility resulting in the initiation of an approach behavior. At this stage, it is the responsibility of the company to reduce the perceptions of entry barriers which it has done through the servicescape dimensions mentioned above. The next phase is exploration; an interest for further purchases in aroused in the customer. Consequently, the client will want to buy something else from the restaurant. The barriers that can bar the client from further purchases are reduced. Finally, the exit stage is where the customer leaves the facility. This stage is divided into the explicit and implicit exit. An explicit exit is where the client leaves the facility since the service process is done while an implicit exit is where the service provider, in this case, TGI Fridays or Chili’s, encourages the client to leave; this is the final stage.
Product Lifecycle of the Cheesecake Factory.
The product life cycle can be defined as the phases a new commodity, brand or service experiences in the marketplace. These stages are an introduction, growth, maturity, and decline (Tuttle). An observation of the Cheesecake Factory reveals that the organization is well-established and has exited the growth phase into the maturity stage. According to Grieves, the maturity stage in an organization is characterized by a reduction in cost due to an increase in production volume, peak in the volume of sales because of market saturation, increase in competitors infiltrating the market and drop in prices due to competing products proliferation (76). All the latter characteristics are evidenced in the Cheesecake factory. First, the organization substantially reduced cheesecake costs, and the volume of production has been on an upturn over the years. Moreover, the revenues of the company have been steadily rising since 2003 (13). The net income for the last fiscal year, 2014, was 101.28 million dollars, an increase from 2010’s figure of 81.71 million dollars (Market Watch). Its revenue has also steadily increased since 2009 from approximately 1.6 billion dollars to 1.98 billion dollars (Market Watch). This is an upward trend shows that the sales are at a peak volume. On the other hand, there has been a rise in competition with competitors like TGI Fridays, Chilis, and Applebees.
Perceptual Matrix of the Cheesecake Factory. Chilis and TGI Fridays.
A perceptual matrix is a visual technique map designed to illustrate the way the average target market client fathoms the positioning of various competing products and services in the marketplace. Accordingly, illustrated below is a perceptual matrix of the Cheesecake Factory, Chilis and TGI Fridays concerning price and healthiness of their food.
Figure SEQ Figure * ARABIC 1-Perceptual Matrix of Chilis, the Cheesecake Factory and TGI Fridays.
The perceptual matrix elaborates that concerning price; Chilis is the cheapest, followed by TGI Fridays and the Cheesecake Factory respectively. On the other hand, regarding healthiness of the food offered, Chilis is the healthiest, followed by the Cheesecake Factory and TGI Fridays respectively. This matrix illustrates that Chilis is the best in the market according to some clients concerning price and healthiness (Tuttle). The Cheesecake Factory is the most expensive and offers relatively healthier food than TGI Fridays, but not as healthy as Chilis’ food. Lastly, TGI Fridays has averagely priced food but they are the unhealthiest among the three (Tuttle).
Baker, Chad, Alena Olvecka, and Edward Pasqualini. “Marketing Plan: The Cheesecake Factory.” 2010. Web. Retrieved November 13, 2015, from http://lindsaykwinkler.weebly.com/uploads/9/5/0/6/9506544/marketing_plan_for_the_cheesecake_factory.pdf
Bitner, M., & Booms, B. (1989). The service Encounter: Diagnosing Favorable and unfavorable incidents. Tempe, Ariz.: First Interstate Center for Services Marketing, Arizona State University.
Grieves, Michael. Product Lifecycle Management: Driving the next Generation of Lean Thinking. New York: McGraw-Hill, 2006. Print.
The Market Watch. “Cheesecake Factory Inc.” CAKE Annual Income Statement. 2015. Web. Retrieved November 14, 2015, from <http://www.marketwatch.com/investing/stock/cake/financials>.
Tuttle, B. What’s the Best Chain Restaurant in America? | TIME.com. 2012. Web. Retrieved November 14, 2015, from http://business.time.com/2012/03/15/whats-the-best-chain-restaurant-in-america/