|
|
 |
|
Viewing report
|
|
|
|
Jimmy John's Concept Benchmark Analysis
Restaurant Research, LLC, Sep 2009, Pages: 11
Analysis of the Jimmy John's restaurant concept provides readers with unique data and insight into this leading brand.
Jimmy John’s (JJ) is an extended super regional sub/sandwich chain (approaching 1,000 units) with its core markets in the Midwest expanding towards the coasts. This chain got its start locating at college campuses but has since expanded to downtown office locations along into the suburbs. JJ’s core competency has to do with three primary issues in our opinion:
- Freshly baked bread and quality food ingredients at a reasonable price
- A very simple business model, and
- Delivery and speed of service.
The first point is very important as it helps JJ transcend QSR into the world of fast casual which allows the chain to more easily capture casual trade-down. The second point is also key as a simple, unchanging menu allows operators to execute at a high level of consistency that keeps customers coming back. Further, it is this same operational simplicity which allows the chain to serve food in the store and via delivery in a very time effective way – providing another explanation about why JJ does not have to compete on price. Notably, the brand’s marketing message centres around this very simple concept of fast service speeds – sort of a high-end Domino’s. Also we should mention that the chain has managed to create a hip vibe with its store décor and atmosphere.
Taken together, this has allowed JJ to produce some very enviable unit economics (for a sub chain) which keeps the operators happy and allows brand leadership to recruit and retain a pool of competent franchisees. In conclusion, it is our opinion that JJ has a solid brand equity base from which to grow its chain into a national competitor although we suspect that this will require a beefier management infrastructure – something that may or may not be in the cards.
|
|
|
|
