California Pizza Kitchen (Cpk) Is a Casual Essay

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California Pizza Kitchen (CPK) is a casual dining food service chain that specializes in California style pizza (as opposed to deep dish New York Style). CPK opened in 1985. As of March, 2011 they are global in scope, having recently moved into India with 265 restaurants in 32 states and 10 foreign countries, in malls and airports, as well as frozen products available in most grocery stores. 2010 revenues were almost $650 million, but showed a decrease of 1.2%. The chain is known for innovative pizza ingredients: Thai Chicken, Jamaican Jerk Chicken Pizza, etc. They also have an extensive pasta, desert and kids menu. Kraft was the original licensee for CPK's frozen pizza, but sold to Nestle in 2010 (California Pizza Kitchen, 2011).

History of the Company -- The company opened with $550,000 from owner's equity and personal loans in 1985, by 1992 there were 26 CPKs. In 1992, PepsiCo paid $100 million for 67% of the chain, pushing expansion even faster and then trimming back quality of ingredients to cut costs. In 1997 a private equity firm purchased Pepsi's stake intending to take the company public. Wary of some of the posted results, the original founders challenged the company's management and resumed control of the company in Spring 2003 (Lachter, 2008). Since 2003, CPK has continued to expand, albeit at a more reasonable rate that allows for controlled growth while maintaining the standards set by the original founders. It has also pushed its activities with communities by involving children through fundraising, free meals for exceptional children, and chairtable foundation activities that support individual communities (CPK.com). With the original owners back, the company sees itself as invigorated for the 21st century, and despite a small lull in sales, believes it is poised for growth in the crowded restaurant market because of its fresh ingredients, innovative approach to pizza and food, and the focus on the cooking style; a hearth baking system that cooks quickly in 500 degree heat (CPK.com).

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SWOT

Strengths

Weaknesses

Opportunities

Threats

Innovative Name and Logo

Tarnished reputation in some areas

New services, tastes, and ambience experience

Pizza is a mature market

Unique Products

Lack of scale in comparison to national chains

Continue to innovate menu

Pizza is crowded in stores and as a dining experience

Economies of Scale

Higher consumer cost than many competitors

Push foundation and educational giving and opportunities

Intense competition in both industry (restaurant) and niche

Strong, Dedicated Management

Some bad fiscal decisions hurt long-term goals

Global market remains open

Too little, too late in some major market areas

Innovative culture; an experience-based dining paradigm

Technology integration in locations globally

Mission Statement -- California Pizza Kitchen does not post a mission statement per se, but has statements designed to reflect the company's values and beliefs in products, customer service and philanthropy:

All of CPK's innovative pizzas are creatively designed on a delicious crust, and hearth-baked to perfection. Also served are creative salads, distinctive pastas, soups, sandwiches, appetizers and desserts, including favorites like our Chicken and Shrimp Jambalaya, BBQ Chicken Chopped Salad, Singapore Shrimp Rolls and Key Lime Pie.

California Pizza Kitchen continues to be an active part in its communities by offering behind-the-scenes CPKids Restaurant Tours where children have the opportunity to get an up close and personal tour of the restaurant and make their own pizzas. In addition, CPK provides schools with complimentary VIP Passes (with free CPKids meal!) to award to exceptional students throughout the year. CPK also hosts CPKids FUNdraising events to help schools raise money by donating a percentage of their purchases on a designated day to their school or activity.

Since its inception, a fundamental principle of California Pizza Kitchen has been involvement in charitable activities and support of charitable organizations in the communities that CPK serves. To….....

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