Middleby Case

Middleby offers to a casual dining chain, like Outback Steakhouse, might differ from one that is offered to a fast-food customer, like Papa John’s International. The value proposition for a fast-food chain is going to reflect the impact of Middleby’s equipment on the restaurant’s cost and profit structure. The fast food chains’ customers are looking for good value at lower prices, typically with children’s desires in mind, and the fact that the customer is buying meals for the whole family. Middleby must assure these restaurants that their equipment is capable of turning our large volumes, of reasonable quality food, at a very low cost that provides for a good profit margin, given that the fast food chain cannot price their meals at unreasonable high levels. The value proposition for the casual dining restaurant will be different because of the nature of the end-customer and the desire for higher quality offered in a nice atmosphere. Here the focus of Middleby will be on the ability to customize equipment to the casual chain’s requirements and that the equipment is capable of producing the quality level of food that is desired. Volume and low cost is not the issue here, rather accommodation to specific requirements of the equipment and the quality of the final meal produced.

Other than that, in planning marketing strategy, for the casual dining restaurant, personal selling will be the key element in marketing to the customer, given the need to explain how the equipment can be customized and deliver the necessary quality for the food. There will be more interaction with chefs and those involved in food preparation, to assure conformance to their needs.