Industry Paper


1. What is the product or service?
  Outback Steakhouse product offerings include a menu characterized by specially seasoned steaks and prime rib. It also provides chicken, ribs, fish and pasta entrees.

2. What function does it serve?
  Outback Steakhouse serves as a place providing excellent foods that satisfy one of the basic necessities of human, hunger; aside from that it also gives a cheerful, fun, and comfortable experience.

3. What are the channels of distribution?
  Outback Steakhouse distributes their product offering by choosing their joint venture partners and franchisees.

2. The following are some forces that determine the strength of competition among existing competitors of Outback Steakhouse Restaurant:

2.1 What is the Industry Size?
In 1990s, franchising was the most popular means for rapid expansion. It was used as a growth vehicle by a variety of businesses, however, food service constituted the franchising industry’s largest single group.
      In 1992 alone, 3,000 franchisers were operating 540,000 franchised outlets all around the United States an average of one outlet opened about every 16 minutes. During this period franchised business sales totaled $757.8 billion, about 35% of all retail sales.
Abroad franchisers operated an estimated 31,000 restaurant units. If the Outback Steakhouse plans to go international it should consider its competitors who already establish its outlet’s internationally.
      Below is a summary of Top 10 U.S restaurant franchises ranked by Sales:
|1994         |                      |Total Sales           |International Sales         |International Stores     |
|Rank         |Firm                 |                      |                            |                        |
|1           |McDonald's           |25,986                 |11,046                     |5,461                   |
|2           |Burger King           |7,500                 |1,400...