1. Restaurant Analysis
Rudy’s BBQ uses a cost leadership strategy due to
their efficient operations at relatively low costs and
acceptable levels of differentiation.

2. Rudy’s Customer Base
• Who?
• College students
• Low-middle class
• Families with kids
• What?
• Fast service
• Cheap meals
• Quality food
• How?
• Efficient operations management results in fast service
• Effective marketing combined with cheap meals focused on high
volume
• Competent supply-chain management leads to good relationships
with suppliers to obtain quality food

3. Strategic Principle:
Make good BBQ affordable
• Business Level Strategy: Cost Leadership
• Value Proposition: Rudy’s promises customers:
• Quality BBQ
• Affordable
• Delivered fast
“Make good BBQ affordable”
• Challenges management to reduce costs
• Not sacrifice the quality of the meal or the value the customer
receives
• Focuses Rudy’s on reducing cost on the rest of the value chain

4. How do they make BBQ affordable?
Rudy’s achieves Cost Leadership through:
• Efficient operations
• Focused on lowering overhead and per unit cost
• Fast service
• Effective marketing and sales
• Low prices
• High sales volume
• Social media connection
• Atmosphere: Rustic
• Competent supply-chain management
• Cheapest High quality food delivered on time to stores

5. Potential Improvement:
• Distribution (Online) hurts Cost Leadership
• No online option for in-store pickup
• High shipping cost to consumers
• Cannot order meals online
• Alternative is expensive 90 lbs. meals
• Frozen meat when you order online
• Next day and 2-day delivery