The decision to sell off stores in the 2006, 2007 and 2008 timeframes has also harmed the company's ability to deliver value (Fair Disclosure Wire, 2010).
Balancing Profitability and Value
CPK needs to align its mission, strategy and organizational components to deliver value and build a foundation to grow exceptional customer experiences on. Based on an analysis of the investment in the ASAP locations, it is evident that building three well-located and executed full service restaurants would have been more profitable and supported the value proposition of delivering superior quality experiences and food.
This is the paradox that CPK finds itself in; by investing to broaden the reach of the company, it very well could have been better off developing even greater levels quality and experience in the existing stores and opening a few very high quality full service locations. Brand equity would have been preserved and the logistics costs of operating 23 CPK locations averted. While CPK chose to concentrate on the San Diego market (Long, 2006) with this strategy that was not done with the full investment possible due to the supply chain, real estate and program management departments of CPK being distracted with the 23 CPK ASAP locations in domestic and global airports. Clearly a focus on just one type of restaurant venue would have been a more cost-effective and profitable decision. Limiting the CPK ASAP locations to only 23 also minimizes the impact on the brand, which would become synonymous with price and availability if the CPK ASAP model were fully built out to over 100 locations globally for example.
CPK's decision to license its name and most popular low-end pizzas is proving to be the most profitable decision the company has made to date (Lockyer, 2008). This decision however also puts the perception of quality at risk. What CPK needs to do is quickly define the next generation...
This approach to growing a retail business is extremely difficult to attain, as it requires the in-store experiences to support the brand and create value over time. In addition, the more mature of food retailing brand becomes the higher and more predetermined the expectations. For CPK the expectations of fast, friendly and professional service are very strong, as is the quality of the food itself. The need for creating
California Pizza Kitchen is a gourmet pizza restaurant that provides unique pizza styles, as well as other entree options, to their customers. The client base primarily orders pizzas, which California Pizza Kitchen gladly caters to (CPK.com, 2011). California Pizza Kitchen marketing strategies emphasize quality unique pizzas while providing upscale yet casual customer service. The restaurant was founded in 1985 by then-attorney's Rick Rosenfield and Larry Flax, who introduced flavors from around
California Pizza Kitchen (CPK) is a casual dining food service chain that specializes in California style pizza (as opposed to deep dish New York Style). CPK opened in 1985. As of March, 2011 they are global in scope, having recently moved into India with 265 restaurants in 32 states and 10 foreign countries, in malls and airports, as well as frozen products available in most grocery stores. 2010 revenues were
The planning systems are more oriented towards a growth strategy that can scale from just a few locations being opened to several in a given financial period. This strategy of planning based on regional expansion, where stores have been more branding, marketing (Berman, 2010) was also seen throughout the information obtained about their planned sale (MacFadyen, 2010) (Marcial, 2009). The information produced from these sources, all gained through academic
RBV Yahoo Finance: http://finance.yahoo.com/q/pr?s=cpki This site is very useful for helping to establish an awareness and understanding of California Pizza Kitchen's current resources, especially its financial resources. Statistics and figures presented on this page and pages linked to this page (also belonging to Yahoo Finance and comprising further pages of the report that this URL is the first page of) give a clear understanding of CPK's current assets as well as its
Analysis of California Pizza Kitchen Strengths and Weaknesses California Pizza Kitchen has been able to rise above the difficult economic conditions in their largest markets by concentrating on the most strategically important process areas first. At the center of their strengths, the chain has is the ability to support their global brand with a unique, branded dining experience (Fair Disclosure Wire, 2010). Creating the integration between a restaurant's global brand and
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