2000 Survey, approximately 66 percent of
the respondents reported using the services
of an interior designer, and 75 percent
worked with an architect in the design of
their restaurants. Restaurant owners are par-
ticularly interested in keeping their settings
modern yet timeless.
Of course, customer satisfaction with food
and service has been and continues to be of
utmost importance to restaurant owners,
which is why most of their time is still devot-
ed to these areas; if food and service are
unsatisfactory to the customer, physical set-
ting is likely to be insignificant in the overall
dining experience. Once food and service
needs are met, restaurant owners can focus
on the physical environments of their restau-
rants, giving attention to the type of experi-
ence the customer is seeking. However, in
general, the physical setting is often less
important at midscale restaurants where
patrons spend less time and are usually in-
terested in just getting something to eat
quickly. In contrast, the physical setting
becomes integral to upscale restaurants
where consumers are looking for a complete
dining experience.
External Pressures
Energy Costs.As energy prices continue to
soar, restaurant owners look for new ways to
maximize their energy usage and subsidize
their rising costs, One way of handling this
problem is to raise menu prices. California
businesses are not only facing doubled ener-
gy costs, but also rolling blackouts, which
shut down a business’s energy for a mini-
mum of one hour, causing a loss in business
and often product when the refrigeration sys-
tem does not work. As energy prices and
blackouts continue, many businesses will be
forced to close their facilities and move to
places where traffic and costs allow them to
operate.
Workplace Safety.Improvements over the
last decade in workplace safety, along with
more stringent requirements regarding work-
er’s compensation insurance, have suc-
cessfully reduced occupational injuries and
illnesses in the restaurant industry. Lower
rates of injury and illness have helped restau-
rant owners maximize labor productivity
while, at the same time, managing heath-care
expenses.Technology. Technology has become
prominent in every facet of business. In the
restaurant industry, technology is used for a
variety of tasks, both at the corporate and
store levels. Examples may include (1) or-
dering and purchasing supplies from ven-
dors, (2) maintaining computerized account-
ing systems, (3) taking customer orders elec-
tronically, and (4) designing and hosting a
Web site. The Internet has become a compet-
itive business tool in every industry, and
approximately half of the respondents to the
NRA’s 2000 Table Service Operator Survey
reported that they have a Web site.
Restaurant Web sites are typically informa-
tional, providing consumers with informa-
tion such as locations, menu items, and pro-
motions. Other more technologically
advanced restaurants offer online reserva-
tions and online ordering capabilities. Re-
gardless of its use, technology is taking over
business and being used to increase efficiency
while decreasing long-term costs.Competition. Competition in the quick-
service segment of the restaurant industry is
stronger than ever, not only from other
quick-service restaurants, but also from other
food-service providers and segments of the
restaurant industry that offer takeout menus.
Some of the key competitive factors in the
restaurant industry are food quality, price and
value, service quality, restaurant location, and
the dining atmosphere.THE RUBIO’S CONCEPTProduct Line
Rubio’s menu features burritos, soft-shell
tacos, quesadillas made with marinated char-
grilled chicken breast and lean steak, and
seafood such as char-grilled mahi mahi,
sautéed shrimp, and their signature Baja-style460 ENTREPRENEURSHIP CASE