Brief Background
Known as the leading pizza quick service restaurant in South Africa, Debonairs Pizza was established in 1991. The two university students (one of them being Craig McKenzie) who founded this restaurant (operating in Pietermaritzburg from a family bakery) played a key role in setting up Debonairs to what it is today. Currently in South Africa there are 382 outlets (as of 28 February 2014). Recently, Debonairs has been launched in Mumbai, India which forms part of the 64 international outlets around the globe. In 1996, Famous Brands (previously known as “Steers Group of Companies” at the time) acquired Debonairs Pizza offering the restaurant quality professional assistance which is one …show more content…
There is a similar desire for an even better position than Debonairs’ one amongst old competitors and new entrants into the market. Domino’s Pizza promises 30 minutes delivery for each order and is the pioneer of food delivery in South Africa. It is paramount that should franchisees want to buy into the franchise that they choose their location.
The Power of the Supplier
As mentioned previously, the Moreleta Park outlet maintains good relations with Famous Brands regarding local advertising, sales, customers and stock levels. Regular emails are sent to Famous Brands to update them on the current state of the outlet. Therefore Famous Brands aims to in return, to provide the Moreleta Park outlet with prompt delivery to continue satisfying the needs of its client base.
The Power of the Buyer
The Debonairs Pizza offers customers the means to voice out any complaints or suggestions for the outlet at their website. Local advertising allows Political, Economical, Social, Technological, Legal & Environmental …show more content…
During its (Burger King’s) first few months, Steers did not suffer a decrease in sales. The reason being is that the patties differ in terms of preparation (and this is what Steers declares it to be as part of their competitive advantage). Steers flame-grills their patties, the patties do not lose weight and they do not frost and defrost the meat.
Porter’s Five Forces Model
Level of Rivalry in the Market
The Steer Brooklyn Mall outlet suffers stiff competition with Mugg & Bean and Wimpy. Within Famous Brands there is no other restaurant that specialises in burgers, yet many of them do offer burgers different in the type of meat patty and fillings. The manager at the outlet does occasionally; look at how other Steers outlets operate (posing as a customer). In this way she is able to find out about what she might lack and how to rectify shortcomings.
Availability of Substitute Products
Apart from the burgers that they offer, Steers also offers ribs with complementary chips. This still satisfies the needs of a Steers customer who favours flame-grilled meat. Steers also offers ice-cream (including vanilla, caramel and