Luis Polanco
Due: December 11, 2012
Policy and Strategy Final Assignment
Uno Restaurants LLC Uno is a company that I have a keen interest within for I have spent the majority of the last 4 years working as an employee. I have information on the company that may surpass what you may find throughout online research and I believe that Uno has the potential to be far more efficient than its current state. In this assignment I will use research, experience, and knowledge learned throughout policy and strategy to cover where Uno is and where they should, or rather, could be moving by implementing the proper strategies. Starting with Porter’s five forces, Uno has a tremendous amount of competition. The restaurant sector is an extremely crowded market, and although the failure rate of new competition is immensely high, the market holds thousands of businesses ranging from small “mom and pop” restaurants to high end restaurants. For the sake of ease, I will consider middle-class dining establishments as Uno’s main competition. Within this falls T.G.I. Fridays, Chili’s, Applebee’s, and a few other restaurants depending on the region. Uno thus has to be in a continuous battle with these locations for market share. The launch of new competition can really hurt Uno because having such a crowded market means that market share is already slim. Another problem is that food is a highly substitutable product. If it’s too expensive at Uno, the competition gains market share, if you minimize quality to lower costs then once again the market shifts to the better food at a reasonable price. In order to optimize profit, price and quality have to be perfect for the target market. This is where Uno’s problem comes into play.
Uno as a restaurant fails implement a target market. They work within a market that has intense competition but fail to separate themselves. According to its website, Uno states; “Uno draws its identity and inspiration from the artisan heritage of the original. Each restaurant still makes their deep dish pizza fresh, from scratch every day. With the times, Uno is adjusting its menu to how people live their lives. It will always be about amazing flavor and wonderful menus that have the right balance between indulgent treats and delicious and nutritious choices. In this way our guest can enjoy Uno in a way that fits their mood and lifestyle and that of their families when and where it makes sense. It’s all about them and we get that.” This statement embodies a severe problem Uno has; they don’t have a target market. They focus on indulgent treats and nutritious choices; opposing audiences. They focus on guests in a way “that fits their mood and lifestyle;” this not only is vague but also varies tremendously. Uno doesn’t try to focus on any particular group and as an employee, I feel as if it has really hurt their overall growth. When looking at its competitors, their brand is easily recognizable. T.G.I. Fridays focuses on young to middle-aged adults who are focused more on their beverage then their food, Chili’s is the low cost, low quality, low price provider of sports style foods, Uno though tries to offer everything anyone may ever want. This strategy has widened the scope too far and leaves Uno as an ambiguous restaurant with decent food but no target market.
Another big determinate of Uno’s success is the bargaining power it currently holds. It sells a substitutable good hence customer’s have all the bargaining power. If costs get too high, they go elsewhere, if quality gets too low, they find another supplier. This very closely ties in with the macroeconomic factors that Uno faces for if the economy is underperforming and consumers are losing jobs, they spend less, hence there aren’t any guests. Uno is run to meet customer needs. In terms of supplier’s bargaining power, again Uno is completely vulnerable. If their suppliers don’t meet demand or fail to provide all food necessary to