MBA FPX 5012 Assessment 2 Marketing Analysis Report with Metrics MBA-FPX5012 Marketing Management
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R & B Breakfast Club
R&B Breakfast Club is a locally owned and operated breakfast and lunch restaurant that offers a mix of American and Mexican cuisine. Founded by Bill Garcia, the restaurant opened on October 15, 1997, with Garcia initially offering only breakfast deliveries. Due to popular demand, he decided to find a permanent location [CITATION Haa18 \l 1033]. After spending a year at a local bowling alley, Garcia was approached by Harold Holmes, co-founder of Taco John’s International, another local business. Holmes offered Garcia the opportunity to rent the location where the restaurant remains to this day. Although Garcia expressed interest in purchasing the property, Holmes refused, not out of spite but because he believed in the business and wanted to support its success. After Holmes’ passing, Garcia finally acquired the building from Holmes’ children in 2012. R&B Breakfast Club embraces a 50s and 60s music theme, uniquely centering on Elvis Presley [CITATION Haa18 \l 1033].
Operating Industry
R&B Breakfast Club operates within the eating and drinking industry. According to the North American Industry Classification System (NAICS), it falls under 722513 Limited-Service Restaurants, as it only offers breakfast and lunch services. The restaurant operates from 6 a.m. to 1 p.m. Monday through Saturday. In the Standard Industrial Classification (SIC) system, the code is 5812 Eating Places, which includes establishments engaged in the retail sale of prepared food and beverages for on-premises or immediate consumption, along with caterers and institutional food service establishments [CITATION USD \l 1033].
B2B or B2C
R&B Breakfast Club is classified as a business-to-consumer (B2C) business. B2C refers to companies that sell products and services directly to consumers, who are the end users of these goods. R&B provides dining services, including dine-in, takeout, and delivery options, directly to its customers [CITATION Ken19 \l 1033].
Product Offerings
The restaurant offers a diverse menu, including breakfast items like pancakes, French toast, breakfast burritos, and lunch options such as burgers, sandwiches, tacos, and fajitas. Known as “The Home of the Breakfast Burrito,” the restaurant’s signature item features hash browns, eggs, and your choice of meat, all topped with a mild or hot chili sauce.
Competitive Environment
Competitor analysis is essential for any business strategy, involving the evaluation of strengths, weaknesses, opportunities, and threats among existing and potential competitors. R&B Breakfast Club faces competition from other locally owned diners in the area, each offering unique menu items. No two diners serve identical food, which allows each to maintain its unique identity [CITATION War \l 1033].
Top Five Breakfast Places
The table below lists the ratings of the top five breakfast places in the area:
| Restaurants | Ratings out of 5 |
|---|---|
| Morris House Bistro | 4.7 |
| The Egg & I | 4.2 |
| R&B Breakfast Club | 4.0 |
| Diamond Horseshoe Restaurant | 3.8 |
| Luxury Diner | 3.9 |
One notable advantage of R&B Breakfast Club is its low staff turnover rate. The restaurant has retained most of its employees over the years, contributing to a consistent customer experience.
Employee Loss Costs
When an employee leaves, it incurs costs for the business due to rehiring and training. The breakdown of costs associated with employee loss is shown below, along with a corresponding graph:
- Pre-departure: $176 (3%)
- Recruiting: $1,173 (20%)
- Selection: $645 (11%)
- Orientation & Training: $821 (14%)
- Productivity Loss: $3,049 (52%) [CITATION NA1 \l 1033]
R&B Breakfast Club maintains a positive work environment, which has resulted in minimal staff changes, with only two employees leaving in the past two years.
Market Characteristics
R&B Breakfast Club’s marketing relies heavily on word of mouth rather than extensive online promotion. The restaurant is featured in local blogs such as “Cheyenne Wyoming Live the Legend, Off the Eatin’ Path: Breakfast Edition.” The town of Cheyenne has a population of about 60,000, which doubles during the annual Cheyenne Frontier Days event, boosting the restaurant’s exposure and sales. The restaurant could benefit from enhancing its online presence, especially on social media, to