Forum Archive Index - February 2003

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi Snoopy,

> I read the article.  I think what they are saying is that franchised
> owner operators are being forced out of the industry and the
> corporate owners will take over.  Sounds like a long term positive
> for RBD to me.

Perhaps - but even if that is the case does RBD have pockets as deep as
Domino's (Competitive Foods Australia), Red Rooster (Coles Meyer),
McDonald's (McDonald's Corp), KFC (Yum Restaurants) etc to survive a
sustained price war?  These are all very large companies that can lose
considerable amounts of dollars for market share.  I don't think that RBD
shareholders will be as generous with pouring money down the drain - or
forgiving.

Specifically in the pizza market, Domino's is *very* aggressive.  There's
constant TV advertising and branding campaigns, along with a steady stream
of new flavour combinations.  From my perception here in Sydney, it would
appear that Domino's is expanding its market at the expense of Pizza Hut.
The situation may be different in Victoria.

Best, Ben



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