Primary Competitor Analysis: Canyon Creek

Primary Competitor Analysis
The purpose of this study is to determine primary, secondary and tertiary competitors of Canyon Creek. We then an apply this information to the new trading trading area of 2 St. Clair East in Toronto. The management team supported our findings from survey results in determining primary competitor analysis. At the original Canyon Creek location question 5, “If for some reason this foodservice outlet/ restaurant was not open for business today/tonight, what other restaurant would you have selected?” Guests were given space to name up to 3 restaurant locations in this area. Since Canyon Creek is located by the Airport, many of their guests are tourists, and do not know the surroundings of this location very well.
Therefore 66 guests answered that they would attend no other restaurant in response to this question. This creating the sample results extremely limited This provided a sample of n=71.

This table indicates that the four main competitors to Canyon Creek would be: Chop, Jack Astors, Milestones and The Keg. Therefore, we can conclude Canyon Creek’s main competitors are Chophouses.
Opinion of Management
When determining the primary and secondary competitors, after viewing the results Canyon’s Creek management determined that the competitors are followed:

Primary Competitor
Secondary Competitor
Tertiary Competitor
Chop
Jack Astors
Zet’s
The Keg
Boston Pizza
Arizona
Milestones

Montanas
Moxie’s

Kelsey’s Canyon Creek management stated that the primary competitors were determined by menu cost, food quality, similar menu items, and décor of the restaurants. Therefore, with this knowledge we can categorize the restaurants in the trading area as different levels of competition.
Primary Trading Area
This trading area has been labeled to be a one km radius around 2 St. Clair East. In this primary trading area of the new location, there are many fast-food restaurants and only one full service restaurant. Since the fast-food restaurants would be considered tertiary competitors, they will not be taken much into consideration within this study.
Primary trading Area Competitors
Restaurant
Type of Restaurant
Defined Competition Level
Union Social Eatery
Full Service Restaurant
Secondary Competitor
180 Secondi
Fast-Food ->Gourmet Pizza
Tertiary Competitor
Thai Express
Fast-Food -> Fast Thai Food
Tertiary Competitor
Suki
Fast-Food -> fast Sushi
Tertiary Competitor
SCC Sports Centre Café
Sports Café
Tertiary Competitor
Scally Wags
Fast-Food/ Diner -> ½ service
Tertiary Competitor
Pizzaiolo
Fast- Food -> Pizza
Tertiary Competitor

In the table above, most of the restaurants are fast-food and would not be considered a primary competitor to Canyon Creek. This is because of the menu style, décor of the restaurant, and food quality. At fast-food restaurants, to execute the high volume of guests, menu items are usually already prepared and just warmed up and assembled by the workers. This would not be considered a primary competitor since Canyon Creek holds a pristine value in ensuring all items are freshly made in house.
Union Social eatery would be considered a potential competitor in the primary trading area. This is because they are the only full service restaurant in the primary trading area, and consists of upscale menu items. Although they contain upscale menu items, Union Social is considered to be similar a pub atmosphere, and targets guests for a beverage, rather retaining large parties for business meetings and etc. Therefore, Union Social Eatery would be considered a secondary competitor.
Secondary Trading Area
The Secondary trading area was defined to have a 5km radius around our location. Within 5kms of the new location is where many more full-service restaurants lye.
Secondary Trading Area Competitors
Restaurant
Type of Restaurant
Defined Competition Level
The Keg York Street
Full Service- Steak House
Primary Competitor
The Keg Young and Eglinton
Full Service- Steak House
Primary Competitor
Moxies
Full Service- Upscale bar
Primary Competitor
Jack Astors
Full Service- Bar
Primary Competitor
With the analysis of the surveys, Chop was considered the most predominant competitor. Since there are no locations in the downtown region and the closest will be the location within the primary trading area of the original restaurant location. Therefore, we concluded that it was considered to be a primary competitor due its geographic location, and attributes. Therefore, we will still consider this restaurant within this study.
Primary competitors Strengths and Weaknesses
Primary Competitor
Strengths
Weaknesses
The Keg
• Typical steak house menu with signature steaks
• Larger steaks
• Separate Lunch menu that has lower priced items, like sandwiches and salads, which are more conducive to the faster pace of lunch quests
• Intensive Wine List from many different Regions
• Several Seafood dishes
• Long hours of operation
• Great preferred guest program whom receive additional promotions and incentives
• Lacks a variety of other entrees
• Limited beer and cocktail selection
• Smaller restaurant
• No patio
• Can not order dinner items during lunch hours
• Lots of menu items not made in house
• High Prices
• Does not take reservations on holidays, and busier periods
Moxies
• Varied menu offering pizza, pasta steaks and sandwiches
• Creative appetizer menu, good for lounge guests
• Daily drink features including ½ price bottles of wine on Wednesday
• Facebook series called a “Food & Life series” by their executive chef
• Sweepstakes for occasions such as a Mother’s Day and Valentine’s Day
• Healthy choice food items
• No online beverage menu
• Not a family oriented restaurant, looses potential guests.
• Immature staff members, service is a hit or miss
• Loud Environment

Jack Astors
• Highly reputable as the fun bar/ restaurant
• Lots of televisions
• Enormous bar holding many guests
• Open late, high volume of guests during late night
• Attracts all markets segments (business, Families)
• Menu Variety
• Marketing
• Many Locations
• Extremely loud atmosphere
• Staff members not as experienced as other establishments
• Consistency of quality is low, due to many locations
• Competes with any kind of restaurant with high menu variety
Chop
• Typical Steak house menu
• Focuses on fresh seafood
• Freshly in-house made buns and desserts
• Over 70 different red wine options categorized by body and tannin type
• 8 beers on top, with craft beers by the bottle
• Daily drink features every day of the week
• Social Hub has their social media feeds posting on their website
• Many positive reviews on Open Table, Yelp, and Trip advisor
• Bigger bar- more appealing
• Up to date with décor
• Seasonal menu
• Limited White wine list
• High prices
• Limited Locations in the GTA
• Not well known due to minimal locations

Comparison of Food Quality
With the analysis of the survey, question 6 asked “Compared to other foodservice outlets/restaurants that you frequent (similar to this one), how does this restaurant rate in terms of: Different attributes of the restaurant.
Food Quality compared to competitors
Score
Respondents
% of guests
Cumulative %
Much Better
41
41%
41%
Better
37
37%
78%
Same
11
11%
89%
Worse
5
5%
94%
Much Worse
6
6%
100%
Total:
100
100%
100%

This Chart indicates that 78% of the respondents stated that Canyon Creeks food quality was better than all of their competitors.
This value does have limitations since only 60.6% of the respondents stated that primary competitors were: The Keg, Jack Astors, Moxies, and Chop. Therefore, this study turns to secondary research from Open Table to help justify answers.
Open Table Scores
Restaurant
Overall Rating
Food
Service
Ambience
Noise
Canyon Creek- Airport
4.1
4
4
4.8
Moderate
Chop- Airport
4.1
3.9
4.1
4.2
Moderate
Moxies – 70 University
4.1
4.1
4.1
3.8
Moderate
The Keg- York Street
4.4
4.4
4.4
4.3
Moderate
The Keg- Younge and Eglinton
4.2
4.3
4.2
4.1
Moderate
Jack Astors Younge and Bloor
4.2
4.4
4.4
4.2
High

In the secondary trading area, the scores of these primary competitors as follows. Since the new Canyon Creek location has not been open, and Chop does not have a location in downtown, the original locations were used in this table. Concluding that the Keg will be Canyon Creek’s biggest competitor in the new location. Canyon Creek must attract the Keg’s guests and retain
them.