The Cheesecake Factory

Cheesecake Factory and Covid Affect. Present a problem (based on your work experience), provide possible solutions, and also provide a teaching note. A teaching note is a document that explains the purpose of the case study, what techniques are pertinent to the case, and possible discussion questions. Sample is attached.

Cheesecake Factory: How Covid Derailed The Cheesecake Factory

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In 2019, The Cheesecake Factory was ranked one of the top casual dinning restaurants. Customers flocked for the 200 menu items it offers on its elaborate menu. However, in 2019 companies were hit with the COVID Pandemic, about 17% of restaurants in 2019 have shut down permanently due to the pandemic.
The Cheesecake Factory also faced a decline, it saw sales decline of about 46% and had to furlough about 41,000 hour employees by March of 2019. Around 8 of every 10 Cheesecake Factory restaurants are located at or around a mall which have also seen a decline in foot traffic due to the pandemic. In order for The Cheesecake Factory to remain open and in business they will have to make drastic changes. In 2018, The Cheesecake Factory signed an exclusive offer with Door Dash to help boost its online orders.
Company History
The Cheesecake Factory began in Detroit, Michigan in the 1940’s. It started off as a small shop making “Original” Cheesecakes. The shop own Evelyn Overton, shortly had to close her shop because she wanted to raise her family. However, continued making Cheesecakes and supplying them to several of the best restaurants. In the 1970’s Evelyn and her family moved to Los Angeles, with the dream of reopening her restaurant. She started baking over 20 different types of cheesecakes and various desserts.
One of Evelyn’s sons, David decided to open a restaurant to help showcase his mothers desserts and cheesecakes. In 1978 the first Cheesecake Factory restaurant was opened in Beverly Hills. People enjoyed it and it was an immediate success. Due to their success after that he would open a second restaurant in Marina del Rey and a third restaurant in Redondo Beach. After that they wanted to venture out and step outside of Southern California. They opened up a location in Washington D.C. and in 1992 the company went public.
The company began changing its menu twice a year and adding new items like steaks, seafood and vegetarian dishes. The Cheesecake Factory offered eclectic menus, large portions, signature cheesecakes and accommodated plenty of seating, even fast-food and short-order items which led much to the companies success.
Industry Competition
The Cheesecake Factory competes in the casual dining space with restaurants like: Applebee’s, IHOP, Longhorn Steakhouse, Red Lobster, and Olive Garden. All of these popular restaurant brands are owned by just two companies: Darden Restaurants and Dine Equity.
The Cheesecake Factory, despite being less than one tenth the size of Darden Recusants in restaurant count, produces just under a fourth of both its revenues and profits.
Although The Cheesecake Factory has far fewer restaurants than its competitors Darden Restaurants and Dine Equity, customers still choose to dine at The Cheesecake Factory over the others. In fact, according to Forbes’ 2013 annual report titled “America’s Best Chain Restaurants, The Cheesecake Factory took first place among restaurants such as Longhorn Steakhouse owned by Darden Restaurants and Applebee’s which is owned and operated by Dine Equity.
After the company went public it continued to open new restaurants, by 2013 it had opened 162 restaurants and was operating in over 36 states. The company ventured out and even opened locations in Puerto Rico, Kuwait, Saudi Arabia, Lebanon Qatar, Mexico, Canada and Japan. in 2020, Fortune magazine ranked The Cheesecake Factory number 12 of the Fortune list of Top 100 Companies to Work for.
The company has now 220 full-services restaurants; they also opened a upscale version under the name Grand Lux Café and another restaurant offering an Asian-Fusion cuisine, Rock Sugar Southeast Asian Kitchen. For more information on The Cheesecake Factory see this:

The Cheesecake Factory

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