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Collaborative Research Project

Efrain Alvarado Jr.


Jacey Bustad
Rebecca Corey
Peter Dickinson
Jasmin Hallam

April 18, 2016

Collaborative Research Project

Prepared for:
Patty Cady
Technical Writing Professor
Washington State University
Prepared by:
Efrain Alvarado Jr.
Jacey Bustad
Rebecca Corey
Peter Dickinson
Jasmin Hallam

April 18, 2016

Date:

April 10, 2016

To:

Ms. Cady
Professor
Avery 337 Washington State University

From:

Red Robin Group


Students, Washington State University

Subject:

Letter of Transmittal for the Red Robin Presentation

Dear Ms. Cady,

I am pleased to report our proposal to bring Red Robin Gourmet Burger Restaurant to the Quad-City area.
Attached is our research report completed with the tasks described in the Collaborative Research &
Repurposing Handout for Project 4.

To carry out these tasks, we performed primary and secondary research. Jasmine will begin our Red
Robin proposal presentation with a brief introduction and go over the Problem Statement. Following
Jacey will talk about the Company Overview. Rebecca will cover the needs of the students because the
quad-city area consists of four colleges and then the needs of the company. Next, Efron will cover four
slides consisting: The Market Analysis, SWOT analysis of Red Robin and the Competition Analysis.
Peter is in charge of the location proposals and the justifications of where to locate Red Robin. The
Marketing Plan strategies will be covered by Rebecca. Afterwards, Jacey, Jasmine, & Rebecca will
collaborate about the deliverables and social media accounts of the new Red Robin. Finally, Jasmine will
conclude our Red Robin Presentation.

Resulting in our hard work of collaborative research. We conclude it is feasible to bring Red Robin
Gourmet Burger Restaurant to the Quad-City Area. Red Robins strong brand recognition tagged with an
ideal location proposal the Quad-City Area will enjoy Red Robin Gourmet Burger Restaurant.

Much appreciated,

Red Robin Group 4

Table of Contents:
3

Cover Page

Pg. 1

Title Page

Pg. 2

Letter of Transmittal

Pg. 3

Table of Contents

Pg. 4

Executive Summary

Pg. 5

Introduction

Pg. 5

Problem Statement

Pg. 5

Company Overview

Pg. 6-7

Market Analysis

Pg. 7-10

Location Proposals

Pg. 10-14

Marketing Plan

Pg. 14-18

Conclusion
References
Original Pitch Proposal

Pg. 19
Pg. 20
Pg. 21-22

Executive Summary
The quad-city area needs new restaurants and that is why we have decided to bring a Red Robin
to the area. We know that a Red Robin will be successful here because Red Robin has proven to
be successful in other small locations, Red Robin offers a variety of different items such as
burgers and brews that target many different markets while staying in budget. With the right
marketing, Red Robin will become the number one restaurant in the quad-city area. Bringing a
Red Robin to the quad-city area will provide numerous job opportunities and will potentially
bring other restaurants to this area. Though research on Red Robin restaurants and the quad-city
area we will determine if it is feasible to bring Red Robin to the area. We will determine this with
a company overview, market analysis, possible location proposals and a marketing plan.
BODY:
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Introduction
Burgers, burgers, burgers, that is what the Red Robin employees say when you ask about their
business. Red Robin is a gourmet burger restaurant who thrives off of their burgers and brews.
The ultimate goal of this project is to determine if Red Robin would be a good choice to bring to
the quad-city area. In order to determine this we will need to research the company including
mission statement, business goals, customer base, location of operations and other important
information about the company. We will need to perform a market analysis including a SWOT
analysis, competition analysis, target market breakdown and growth opportunities. Then we will
need to find different locations where the restaurant may be able to go and develop a marketing
plan that will help let the people of the quad-city area know that Red Robin is coming to town.
After all of that data is collected we will decide whether or not Red Robin would be a feasible
option to come to the area.

Problem Statement
The quad-city area is lacking in good traditional burger places, a place where both families and
students can frequent for many different occasions. Whether it be a birthday dinner, a date or
watching a sports, Red Robin can accommodate all. Not only will Red Robin bring delicious
burgers to the area but they will do it for a cheap price, which is appealing to the students and
lower income families in the area.

Company Overview:
Everyone knows Red Robin for their delicious burgers, but there is more too Red Robin then just
a great meal! Red Robin was founded on six different core values, all spelling out the word
burger. The core values are Bottomless fun, Unwavering integrity, Relentless focus on
improvement, Genuine spirit of service, Extraordinary people, and Recognized burger authority.
When opening up a Red Robin, it is required to fully embrace their brand of living through their
guests, team members, and community. Having those three values will make Red Robin in the
Pullman/Moscow successful because in this area, community is very important to the residents
so having a restaurant that fully embraces the importance of community will appeal to the guests.
(Red Robin: Our Company Values, n.d.)
Red Robin opened the first restaurant in 1969 in Seattle, Wa. From there Red Robin has
expanded to over 500 restaurants in both the United State and Canada. Red Robin is very
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successful for many different reasons, but one reason they continue to stay successful is because
all their food items are made with Honest-to-Goodness ingredients (Red Robin: About Us, n.d.).
Everyone knows that Red Robin is home of their big burgers, but in this area we have many
vegetarian and vegan diets. With Red Robins different veggie and vegan burgers there will be an
option for everyone. In 1979, the first Red Robin Franchise was created by Mike and Steve
Snyder and opened in Yakima, Wa. Then, in 2004, Red Robin shares take a huge jump up to
$32.36. From then on out, Red Robin continues to be successful, winning awards after awards
such as the 2013 U.S. Environmental Protection Agency Certification of Excellence (Red Robin:
About Us, n.d.).
One of Red Robins business goals that they have been working on and implementing is
connecting the dots between social software and employees and guests. Red Robin knows that
social media is huge for companies that are looking to grow and that the interaction needs to
come from the employees and guests. With social media, managers can let corporate know about
guest feedback and it allows Red Robin to test recipe changes in only a month. Bringing a Red
Robin to the Pullman/Moscow area will be dependent on the usage of social media to let the
community know it's coming. Also, having the social media in the restaurant in this area will be
very helpful with testing out new recipes because since there isnt many restaurants in this area,
the community gets bored of the same thing but if Red Robin tests out new recipes in the
restaurant with the guests, it will keep the guests coming back to try the new items (Boulton,
2014).
Red Robin has a customer base of families, people seeking healthier food options, people
seeking an all American restaurant, or people seeking a sit down meal with quick and reliable
service. Red Robin also has a birthday special, where they sing to the person with the birthday
and that person gets a free sundae for dessert (Burns, Grosser, Guzman, Marin & Wallace ).
Being in the Pullman/Moscow area, the customer base will also shift towards students looking
for a decent meal that is in their budget. Red Robin will be a great place to hold off campus
meetings or off campus events, as usually everyone can find something they like at Red Robin.

Red Robin has 40 different locations in Washington and three of those locations are in Spokane,
WA. This proves that Red Robin can be successful in small towns as some of its 40 restaurants in
Washington are in very small towns. Another reason Red Robin will be successful here is
because many people make the drive to Spokane from the quad-city area just to get a burger at a
Red Robin. In 2013, Red Robin, had locations in 43 different states including two Canadian
provinces (Reuters, n.d.).
In 2013, Cathy Cooney was appointed to Red Robin Senior Vice President and Chief People
Officer. Since 2013, her future outlooks have been to make the Human Resource side of Red
Robin strong, as it is crucial for big corporations to have solid Human Resource departments.
Having a successful HR department will be important to us, as we plan on hiring local and hiring
for all different positions (Red Robin Appoints Cathy Cooney Senior Vice President and Chief
People Officer, 2013).

Final, Red Robin has set some business goals for the company that we plan to carry to our
restaurant here in Pullman/Moscow. Increasing guest engagement is the first and main goal of
Red Robin. Red Robin wants to focus on rising guest check tickets and letting guests manage
their own price check price with different points. Having a point system in place will be
successful in Pullman, because as mentioned earlier there are not many restaurants so when
guests find a restaurant they like, they will continue to go back. Another business goal that Red
Robin has set is expanding their footprint, as Red Robin wants to continue to grow their
restaurants (U, 2013).

Market Analysis:
Market Analysis for Red Robin Gourmet Burger Restaurant
Industry: Red Robin is in the Food & Beverages industry, focusing on burgers.
Segment: People looking to have a casual dining experience. Lovers of gourmet burgers and
brews at the same place.
Strengths:
1) Providing a niche food segment: Gourmet burgers and drinks together
2) Rewards program for loyal customers
3) Gift cards feature is popular
4) Kids Menu
5) Economies of Scale because the product range offered is low
6) Different Varieties of merchandise related to the restaurant

Weakness:
1) Absence of online ordering
2) Very narrow product range
3) Limited geographic presence compared to global competition

Opportunity:
1) Online ordering can be introduced
2) Product range can be expanded
3) Attractive deals, offers and combos
4) Advertise more during huge sporting events and campus events

Threats:
1) People moving away from fast food going towards eating at home
2) Well- established players in the market dominating market share i.e, South Fork, Applebees
3) People with busy lives looking to have quick delivery
Competition Analysis:
1) Applebee's: Most similar in vicinity from all competitors. A huge difference is Red Robin,
puts its employees first. Resulting in happier employees correlating with happy customers.
2)

South Fork: No rewards program. Very pricy menu, not offering a kids menu.

3)

BWW: Very Loud atmosphere, with many distractive TV's.

4) Cougar Country: Lower quality product, different atmosphere, not as large of an eating area.
Specializes in burgers. Similar price range to Red Robin.
5) Side Bar: Specializes in burgers, similar in prices. Smaller eating area. No suitable for large
parties or a variety of occasions.

Figure 1.
Figure 1 dipicts a positioning map corrolating price and quality between Red Robin and its five
main competitors. Where Red Robin is on the higher end of quality and lower end of price
compared to the competitors.

Growth Opportunities:
Online Delivery and ordering is in high demand in the 21st Century, I foresee Red Robins
revenue grow if they can incorporate this system in their company website.
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Red Robin has a very strong brand image. Customers know they will receive a huge, delicious
tasting burger and not burn a hole in their pocket. Red Robin has a loyal customer base, and
catchy advertising: Red Robin YUMMM.
Target Market/Market Niche: Middle class, college students.
Population of Quad-City Region
Years

1990

1995

2000

2005

2010

2015

Pullman

23,564

23,919

25,033

26,222

29,807

29,799

Moscow

18,651

20,096

21,437

23,736

23,865

23,800

Clarkston

6,873

7,155

7,332

7,205

7,249

7,229

Lewiston

28,386

30,368

30,871

31,167

31,928

31,894

Figure 2.
Figure 2 depicts the population in each of the quad cities every five years from 1990 until 2015.

Location Proposals:
After doing extensive research on possible locations for Red Robin we have proposed using the
old Fireside Grill building. This is located at 1095 SE Bishop Blvd, Pullman, WA 99163
(Bennett, 2015) having the largest student population of the quad-city area we think that Pullman
would be the best location. The old Fireside building is a perfect spot to place a gourmet burger
restaurant because the size of the building and the prime real estate location right off of Bishop
Blvd. Putting a Red Robin in an already established building will allow us to cut costs and save
time by only renovating the building opposed to building a new one. This space already has
seating of 280 with large walk-in coolers, freezers, and huge dry storage area which will be
useful for Red Robin. Currently this building has an authentic wood fire brick oven, beautiful
interior finishes with a lodge style exposed timbers, stone accents, and two fireplaces (Bennett,
2015). Although those things do not line up perfectly with the original Red Robin style it will
add a more homey feeling to the restaurant that other chain restaurants in the area do not have.
Surrounding this location are retail, office, and residential outlets and is just minutes from the
Washington State University campus, downtown Pullman and Pioneer Hill, which is one of
Pullman's largest residential neighborhood.

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The highlights for this property:

Premier, high visibility location

Well designed open floor plan

Full Bar with separate Lounge

Plenty of off street parking

Movie theater neighbor

Seats 280

Rental Rate

$1.22/SF/Month

Year Built

Min. Divisible
AC

4,500 SF

Lot Size

Property Type

Retail

Traffic Count

15,000

Property Sub-Type
Business

Restaurant

Zoning Description

Motor

Building Size

9,000 SF

Rental Rate

11,000/Month

Space Type

Restaurant

Space Available

9,000 SF

Lease Type

2006

2.51

NNN
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Min. Divisible

4,500 SF

No. Parking Spaces

Figure 3.

Figure 4.

Figure 5.

Figure 6.

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Figures 3-6 show the old Fireside Grill both inside, out and the floorplan.
(Information provided by Listing Broker Shelley Bennett, Listing courtesy of Palouse
Commercial Real Estate) (Bennet 2015).
For an alternative location, we have considered using the old Dennys location at 1170 SE
Bishop Blvd. This location is close to our other proposed area and is in the heart of the Pullman
community. This property comes with landscaping, and plenty of off street parking. There is a
fully equipped commercial kitchen, main dining area, banquet/conference room and a nice bar
area. Which fits nicely with the traditional Red Robins layout. It is located near retail stores,
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Washington State University campus, Holiday Inn Express, and the movie theater complex. This
is the fastest growing area of Pullman for retail and other commercial development. Although we
believe that since this is an older property, it is due for renovations. These renovations will need
to occur if we want to attract a younger demographic.

Highlights of this property:

Adjacent to Holiday Inn Express

Equipment and Fixtures Included

Private off-street parking lot

Located minutes from WSU Campus and Downtown

At lighted intersection

Sigh base in place for large sign

Former Dennys

Price

$725,000

Commission Split

2.5%

Building Size

5,675 SF

No. Stories

Price/SF

$127.75

Year Built

1995

Property Type
AC

Retail

Lot Size

0.63

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Property Sub-type

Restaurant

Property Use Type

Vacant/Owner-User

Figure 7.

Figure 8.

Figure 9.

Figure 10.

Figures 7-10 show the inside and outside of the old Dennys location.
(Information provided by Listing Broker Shelley Bennett, Listing courtesy of Palouse
Commercial Real Estate) 1170 SE Bishop Blvd., Pullman (Bennett 2015).

Marketing Plan:
Strategies and Tactics

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o In order to promote Red Robin while attracting target markets we will need to create a strategic
business plan. The business plan will discuss the trends in the industry, competitive positioning
and demographics of the quad-city region.
O Understanding our primary segments spending habits will help us offer promotions and
discounts that will apply to needs, bringing business to Red Robin.
o Offering coupons or discounts will attract business. To attract college students Red Robin
could offer discounts for those who bring student identification cards.
Positioning
o To align our business with that of our competitors we must establish our position in the
market.
o Red Robin is known for their gourmet burgers; though it is more complex than a burger joint.
Red Robin offers a variety of food and beverage options that can be located in 500+ locations.
Local businesses such as South Fork Public House, Cougar Country are competitors to an extent
due to being popular for their burgers, though they are singular restaurants without bread
recognition that Red Robin has. Other competitors would include Applebees and Buffalo Wild
Wings since they are popular restaurants in the area that also offer a variety of foods including
burgers along with brand recognition.
O We plan to position ourselves in-between two target markets, families in the quad-city area and
students from the surrounding colleges. Those target markets make up the majority of the quad
city population. By attracting both we will have prosperous business during the school on and off
seasons.
Channels of Distribution
o Advertising will be the main source of channel distribution for Red Robin. Advertising via
social media will attract the college students and middle age consumers. By creating a Facebook
page and Twitter account our primary segments will be able to be informed about promotions
and offers as well as the grand opening of Red Robin.
o To attract families we will advertise within the public school system. Having special event
nights where part of the proceeds going towards a program for the school. This would attract
families and encourage them to eat at our restaurant as they see our franchise location reaches
out and benefits their community.
Rationale
o The rationale will be an overall analysis of the business and how applying different marketing
strategies will give us a better understanding of what the market needs and how we can cater to
these needs in order to thrive.

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Deliverables:
Twitter:
Since Twitter is a popular social media outlet we will use a twitter page as a channel to deliver
news that Red Robin is coming to the quad-city area. We will use it to advertise different deals
and promotions offered to customers. To reach a wide range of people we will add followers and
businesses from the area.
https://twitter.com/RedRobinQuadCit

Figure 11.
Facebook:
We will use Facebook as another distribution channel to reach our consumers. Using this media
outlet allows us to keep the residents up to date on the progress of our restaurant, let consumers
know about any promotions, and is a great way to get the word out to as many people no matter
their age who have a Facebook account. We will also be able to create Red Robin events on
Facebook and send reminders to our followers about these events.
https://www.facebook.com/jayeng402/?skip_nax_wizard=tr

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Figure 12.

Red Robin Flyer:

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Figure 13.
Figure 13 is an example flyer created by Rebecca that shows a tool we would be used to market
the opening of Red Robin in the quad-city area.

Coupons: The coupons we will be offering a free burger with the purchase of a burger at equal or
lesser value, a free milkshake with the purchase of one, three dollars off an appetizer, and eight
dollars for an entree purchase of $20 or more. These coupons will be available to people who
follow us on Twitter or like our Facebook page.

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Figure 14.
Figure 14 shows some example coupons that we will give to people who like our Facebook page
or follow our Twitter page.

Conclusion
After doing extensive background research on Red Robin, creating a market analysis, finding
different locations to put a Red Robin and developing a marketing plan our group has decided
that it would be feasible to have a Red Robin in the quad-city area. We considered all of the
factors such as competitors, primary and secondary target markets and the companys needs.

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After conducting a SWOT analysis we determined that the strengths and opportunities outweigh
the weaknesses and threats. The quad-city area is ready for a Red Robin.

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References
Bennett, S. (2015, November 11). 1095 SE Bishop Blvd., Pullman, WA 99163. Retrieved April 2,
2016, from http://www.loopnet.com/Listing/19516849/1095-SE-Bishop-Blvd-Pullman-WA/
Bennett, S. (2015, September 21). 1170 SE Bishop Blvd., Pullman, WA 99163. Retrieved April
5, 2016, from http://www.loopnet.com/Listing/19436547/1170-SE-Bishop-Blvd-Pullman-WA/
Red Robin: Our Company Values. (n.d.). Retrieved April 1, 2016, from
http://redrobin.jobs/values/
Red Robin: About Us. (n.d.). Retrieved April 1, 2016, from http://redrobin.jobs/about/

United States Department of Commerce. (2014). Retrieved April 5, 2016, from


http://www.census.gov/quickfacts/table/PST045215/5356625
U. (2013, December 29). Red Robin Gourmet Burgers, Inc. Retrieved March 29, 2016, from
http://www.redrobin.com/pdf/eproxy/2013_10-k.pdf

Red Robin Appoints Cathy Cooney Senior Vice President and Chief People Officer. (2013, July
17). Retrieved April 08, 2016, from http://www.redrobin.com/newsroom/article/620

Reuters. (n.d.). Red Robin Gourmet Burgers INC (RRGB.O). Retrieved April 1, 2016, from
http://www.reuters.com/finance/stocks/companyProfile?symbol=RRGB.O

Burns, J., Grosser, C., Guzman, G., Marin, S., & Wallace, S. (2012, June). Red Robin Gourmet
Burgers Marketing Plan. Retrieved April 1, 2016, from
https://findingsasha.files.wordpress.com/2012/06/final-red-robin-marketing-plan.pdf

Original Pitch Proposal


Red Robin Original Pitch Proposal

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The purpose of this memo is to pitch why Red Robin should come to the quad-city area. By
describing a brief understanding of their history, what needs to be done to determine the viability
of the company, skills needed to create a team and an overview of what the team members will
gain, I will persuade you to give Red Robin a chance.
Summary
This memo gives you a brief history on Reb Robin and several reasons why it would be a good
fit for the quad-city. It discusses what I will need to determine the viability of the company
moving here. It also discusses the skills that my team members will need to succeed and the
transferable skills they will gain form working on this project.
Discussion
Red Robin at a glance:
Red Robin is a gourmet burger restaurant that offers high quality food for an affordable price.
Since 1969 when the first Red Robin opened in Seattle Washington the franchise has grown to
500 locations. With the enjoyable atmosphere and cheap meal ticket being about $12 a person,
Red Robin is well suited for college towns. With the closest Red Robin being almost two hours
away in Spokane Washington, a large target market of college students misses the delicious food.
Viability:
To determine the viability of bringing this chain to this area we need to look for locations where
it would best be placed. Study the demographics of the population both college students and
residents to determine if Red Robin can fill want/need gaps. Analyze the existing restaurants and
predict if adding a gourmet burger restaurant will fit well and prosper in these small towns.
Skills needed:
In order to conduct proper research on this company and determine if the quad-city area is the
best fit for we will need a well-rounded team. Someone who thrives in creativity and can market
the restaurant to the residents. One or two people who excel in research to analyze the hard facts
about starting a Red Robin in this area. A writer who can put all of the team members thoughts
onto paper and format the assignments correctly, and a leader who can pull the group together,
set deadlines and follow up with the other members to ensure the best final project.
Gains:
Team members working on this project will gain the transferable skills such as research and
development, critical thinking, demographic analysis, communication and teamwork.
Recommendation:

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I would like to hear your feedback on this memo pitch proposal as well as my presentation via
blackboard before the start of project four. Insight to viability and concerns with moving forward
are always welcome. Feel free to contact me with any further questions or concerns through
blackboard or at jasmin.hallam@wsu.edu

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