Broken Yolk Cafe Company Analysis

Part
01
of two
Part
01

Broken Yolk Cafe Competitive Landscape

Broken Yolk Cafe is a chain of franchise restaurants that serves all day breakfast. The first Broken Yolk Cafe opened in 1979 in San Diego, California. Two competitors of Broken Yolk Cafe are First Watch and Snooze an AM Eatery. The competitive analysis for Broken Yolk Cafe, First Watch and Snooze an A.M. Eatery is presented below.

Broken Yolk Cafe

Overview

Locations
  • Broken Yolk Cafe has 34 locations located throughout California, Florida, Illinois, Texas, and Nevada.

Headquarter Location

Revenue
  • According to John Gelastopoulos, each location makes approximately $2 million in revenue annually. Hence, Broken Yolk Cafe generates $68 million dollars in annualized revenue.

CMO or Similar Position

Employees

Competitive Advantage
  • Broken Yolk Cafe is standardized in each of its restaurants.
  • The restaurant boasts an expanded menu which includes beer and wine.


First Watch

Overview
  • Founded in 1983, First Watch is one of the fastest growing restaurant chains in the US.
  • The name stems from a nautical reference referring to the first work shift on a ship as First Watch restaurants are only open between 7:00 am and 2:30 pm.
  • In 2017, First Watch revenue increased by 31.8%
  • Chris Tomasso is the CEO and president.
  • Their main target market is highly educated females with higher household incomes.

Headquarter Location

Revenue

CMO or Similar Position

Employees

Competitive Advantage
  • First Watch has a compelling business model.
  • It is well positioned to capitalize on the focus on healthy eating.
  • The franchise is expecting to grow by 20% based on 50 new restaurants on 300 locations.
  • Snooze has a real estate site selection model that helps to identify strategic locations based on criteria like population growth rate, household incomes, traffic, visibility and access.


Snooze an A.M. Eatery

Overview
  • Snooze an AM Eatery is a breakfast experience with "foods hand-crafted & seasonal using many local & organic products".
  • Snooze was founded in 2006 by Jon and Adam Schlege.
  • David Birzon is the CEO of Snooze.

Locations
  • Snooze an AM Eatery has 37 locations centered in five states: Colorado, California, Texas, Arizona and North Carolina.

Headquarter Location

Revenue
  • Snooze an AM Eatery generates an estimated $120 million in revenues annually.

CMO

Employees

Competitive Advantage
  • Snooze main target market sets them apart from its competitors. There target market are millennials while their competitors main target markets are the older generation who are dying off.
  • Snooze is a fun place to connect. According to the CEO, "If you visit a Snooze, it’s the only place where people aren’t on their phones. They’re connecting with their family and friends and having a good time".
  • All the restaurants are company-owned. This a barrier from competition because most chains cannot replicate the business model of Snooze. Snooze offers catering.


Research Strategy

We began our search for the competitive details of Broken Yolk Cafe, First Watch and Snooze by searching their website for company information. We thereafter searched the company's social media sites such as LinkedIn to obtain information that was unavailable on the website. The research team also searched news articles from Forbes and company databases such as Hoovers, Craft and Crunchbase for relevant information.

Broken Yolk Cafe's annual revenue was calculated based on a news article by NBC News in which the CEO of the company stated that each Broken Yolk location makes approximately $2 million in revenue yearly. Since Broken Yolk has 34 locations, we multiplied the annual revenue (2 million) by number of locations (34) to obtain the total annual revenue for all locations which is $68 million.

Competitors of Broken Yolk Cafe were selected based on news articles and company analysis which mentioned First Watch and Snooze an AM Eatery as competitors of Broken Yolk Cafe.


Part
02
of two
Part
02

Broken Yolk Cafe SWOT Analysis

Broken Yolk Cafe has more strengths and opportunities as compared to its weaknesses and threats. Among other strengths, Broken Yolk Cafe partnered with third-party deliverers like Uber Eats and Door-Dash to increase efficiency serving their clients. One of the weaknesses is that the organization's presence/coverage is limited to a few states in the USA.

Strengths

  • The Broken Yolk Cafe has a partnership with third-party deliverers Uber Eats and Door-Dash to increase efficiency in serving its clients.
  • The Broken Yolk Cafe is well-known for its three most popular dishes; tiki toast (grilled Hawaiian bread topped with fruit), Golden State Benedict (toasted muffin topped with grilled tomato, poached eggs, and Hollandaise sauce), and ranch tree skillet (home-fried potatoes sautéed with chorizo, jack cheese, and sunnyside eggs).
  • By 2020, seven new cafes will open, which will mean there will be more than 40 locations to help tap all U.S. markets.
  • The organization's primary focus is to always serve high-quality food and giving each guest a great experience.
  • The company is known for its trendy and traditional menu that keeps it on top of its competitors.

Weaknesses

  • The organization's presence/coverage is limited to a few states in the USA. They need to expand and cover more locations to increase their customer base and boost their sales.
  • It’s difficult for the organization to maintain quality when franchisees run it.

Opportunities

  • There is a great room for expansion into other localities; hence, more franchises can afford to partner with the organization.
  • The organization can diversify and provide different products such as lodging facilities, which could increase the company's revenue.
  • The Broken Yolk Cafe can introduce a new menu that serves as an opportunity to also increase the organizational income through the sales of products to new customers and old customers that patronize them again as a result of their new menu.
  • The organization culture employed in the Broken Yolk Cafe is effective in meeting its forecast of expanding operations to other regions in the next few years.

Threats

  • Consumers/customers prefer eating breakfast at home, and they also prefer having healthy homemade food for breakfast instead of coming to the Broken Yolk Cafe. This serves as a big threat to their income as more revenue is lost through this means.
  • There are a lot of options available in the segment. With the availability of more options, it gives people the ability of choice, and any organization that does better in these aspects takes the market lead. They can be substituted at any point in time with other options competing with the Broken Yolk Cafe.
Sources
Sources