MBA Operations Management - Case Study Guides - 07: LOCATING THE NEXT RED LOBSTER RESTAURANT

VIDEO CASE STUDIES
LOCATING THE NEXT RED LOBSTER RESTAURANT

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1. MapInfo has 72 clusters that provide socioeconomic profiling. These profiles (PSYTE) provide interesting reading and data
for class discussion. MapInfo would tell you that the applications
are virtually limitless. For instance, the BusinessMAP database
includes the following datasets to aid financial institution location
decisions:
 ESRI’s current-year and 5-year-out estimates for population, age, race, and income
 Branch location, asset, and deposit information from
RPM Consulting’s Branchinfo
 MarketBank data, with information about deposit and
loan potential
 National Credit Union Association data on member
assets, loans, etc.
 Segmented lifestyle/life change information
 D & B listings
 Street level maps
Data such as the above helps the location decision by providing
current and potential deposit and loan information as well as
information about the competition.
Sources: www.esri.com/bmapfinancial and
www.esri.com/partners.
LO 8.6: Understand the differences between service- and industrial-sector location analysis
AACSB: Application of knowledge
2. Many differences can be identified in an assignment or class
discussion, but restaurants want disposable income, while retail—
depending on the type of retail—wants high traffic, and manufacturing wants a focus on costs, infrastructure, and low taxes.
LO 8.6: Understand the differences between service- and industrial-sector location analysis
AACSB: Application of knowledge
3. Red Lobster has shied away from urban locations; high location
costs do not fit its current model, but Red Lobster has found fertile
ground in first- and second-tier suburban and exurban/small (over
90% of the Red Lobsters are in these three density classes).
Incidentally, in 2015, Red Lobster broke off from Darden
Restaurants and became an independent corporation. The video,
produced earlier, will still mention the Darden connection.
LO 8.6: Understand the differences between service- and industrial-sector location analysis
AACSB: Analytical thinking
 

 

 

 

 

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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University

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