Sticks also fell into another fast-growing segnent of restaurants: ethnic food.

Question

Sticks also fell into another fast-growing segnent of restaurants: ethnic food. Although the Mexican segment was the clear ethnic food leader, DuBois said Medi terranean restaurants were also growing quickly. They were part of a group (speciaity quickly. They were part of a group (specialty fast casuals) that made up 9% of all fast-casual restaurants (Table 4-4). Table 4-4 Menu Composition Within Fast Casual Segment Rank Category Market Share Mexican 18% 10% 11% 9% 0% 7% 6% Bakery Café Bagyl Other Sandwich 3 Hamburger 5 6 Speciality 7 Pizza Asian Barbecue, healthy, Italan,other ethic (including Mediterranean) and soup Sticks was somewhat unique, however, in that it marketed itself without referring to the ethnicity of its offerings. The goal of the restaurant's owners was to make the food as accessible as possible and to not intimidate customers. Sticks did not expect to t the adventurous diner who sought out authentic ethnic food; it tried to position itself alongside Panera and Chipotle, rather than local Middle Eastern restaurants. Still, Austin and DuBois said they watched the growth of other Mediterranean restaurants closely. For example, a larger chain from Alabama called Zoë's Kitchen had recently moved into Charlottesville and Richmond, and Taziki's (also a growing chain from the South) operated a similar concept in Richmond. In addition to those, Austin said Roti out of Chicago and Garbanzo out of Denver were other Mediter- ranean QSR brands worth following -both chains had high-quality management and were well funded. Despite others entering Sticks's local markets, the team didn't see competition as all bad. said. "They also help generate new interest in our category, w want that to distract us from succeeding on our own terms." Most importantly, these larger chains help validate the concept for us," DuBois which is a net benefit But at the same time, we have to be dynamie and keep creating and emphasizing our unique points of differentiation. We are well aware of direct competition but don't

Explanation / Answer

1. From the survey data, the customer segments are: (i) demographic segment - this segmentation is on the basis of the following demographic variables used in the survey - age, gender and income.

(ii) geographic - this segmentation is on the basis of place or residence and place of work (city)

(iii) behavioral - this segmentation is on the basis of customer's basis and preference for eating out. Questions like how many times you bought lunch from a restaurant?, do you visit Sticks for weekend lunch or weeday lunch or weekday dinner or weekend dinner? etc will determine the behavior of the respondents.

(iv) psychographic - this segmentation is being done on the basis of personality and lifestyle of the respondents. Questions like what activities you participate in?, what activities do your children participate in? etc will determine the personality of the respendents.

Stick operates in the fast casual restaurant segment. Its partership with U.Va showed that its customers dined in various fast-casual restaurants, had higher household incomes. The management's hypothesis is that its customers are active people and working professionals looking for quick and healthy lunch.

Location recommendation: Location A consists of Blue Blood Estates. This segmnet consists of wealthiest people or people belonging to the upper crust. These people will prefer fine dining rather than visiting a fast casual restaurant. So, for Sticks Kebab Shop location A should not be considered.

Location B is made of city startups, family thrifts etc. Now both city startups and family thrifts consist of mostly young singles, and have substantial college students. Location B will have low income and this is validated by the low median income and low consumer spend per household. This location should not be considered as people with low income will not eat out regularly at fast-casual restaurants. Besides there are lower number of families.

Between C and D, D seems more attractive, for the following reasons: (i) median income, consumer spend and consumer spend per household is higher in location D than location C. (ii) location C has family thrifts, which reduces its attractiveness, because these poeple have entry-level jobs and seldom eat out. (iii) customer profile at Location D is most suitable for Stick's Kebab shop. Brite lights and Li'l city are well off, Upward Bounds are active and kid-obsessed. They will eat out and look for a healthy option. White Picket fences consists of middle class families.

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