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).
SWOT
Strengths
Weaknesses
Opportunities
Threats
Innovative Name and Logo
Tarnished reputation in some areas
New services, tastes, and ambience experience
Pizza...
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