Company History
Zoës Kitchen opened its first store in 1995 serving lunch five days a week. The restaurant entered the fast-casual segment of the already mature restaurant industry. The fast-casual division was the newest emerging segment at the time, proving to be more than a fad. Zoës son, John Cassimus, was responsible for the growth Zoës Kitchen experienced during its first ten years of existence. The restaurant, which intended to be an extension of the family's own kitchen, expanded its operations to sixteen locations by the fourth quarter of 2005. In 2002, the brand image and restaurant facilities of Zoës Kitchen underwent an extensive makeover following the results of a consumer survey analysis. Strategic growth became the company's main priority. Its main focuses were: growing and achieving economies of scale, finding excellent site locations, and obtaining a steady and predictable cash flow.
The Macro-Environment
In 2005, giant fast-food chains dominated the restaurant industry in the United States. The industry included over 870,000 restaurants, more than 70% of which were independent, single-unit businesses. That same year, growth became stagnant and the restaurant industry became regarded as mature. In the mid-1990's, the fast-casual segment of the restaurant industry emerged and was able to experience growth by recognizing consumer demands and adjusting offerings to meet such demands. This segment had no single definition, as each chain was unique. Some common characteristics existed in the fast-casual segment, including high quality fresh food and an extensive selection of menu options. Consumers viewed these characteristics as valuable and the segment was expe ...