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1 The Middle by Corporation

1€² The Middleby Corporation manufactures cooking equipment for restaurants and
institutional kitchens. Included in its product line are conveyor ovens, ranges, con-
vection ovens, griddles, fryers, and food-warming equipment. Recognized by
I Eminen- Week as one of the Top 100 Hot Growth Companies and by Forber as one
of the Best Small Companies, the firm enjoys particular strength among fast-food
companies.48 Among its customers are Subway, McDonalds, Papa John’s, and Yum!
Brands, the parent company of KFC, Pizza Hut, Taco Bell, and others. Commenting
on the firm’s rapid growth, one industry expert observed: As these franchises go to
China and Indonesia, NIiddleby ovens go there too.49
Middleby has developed a loyal customer base. For example, Middleby ovens are
55 the only ovens used in Papa John’s restaurants around the world. For its excellence in
customer service, quality, value, and relationship management, the firm was named
the Yum! Brands Supplier of the Year and received the 2010 Slice of Appreciation
award from Papa John’s International.50
0 Middleby leads the industry in energy-efficient food-preparation equipment.
The company offers a broad array of Energy Star-approved products that cook food
efficiently without sacrificing quality. For example, NIiddl’eby’s WOW! Oven repre-
m sents the most energy-efficient, fastest-cooking conveyor Oven On the market-
35 percent faster, yet 30 percent more efficient than the appliances joffered by
compeutors.
To spur additional growth, Middleby is exploring the feasibility of adding casual
TS dinin chains to its targeted base.51 Casual dining CompriSes a market segment 7
between fast-food establishments and fine dining restaurants. By offering a complete
suite of products to revamp their kitchens, Middleby strategists believe casual dining:
an operators could cut labor and energy costs while inCreasing productivity. Suéh
1d changes would represent a multimillion-dollar initiative in each restaurant.
3, Middleby is currently conducting a test run with three Casual dining chains to dem-
onstrate the potential return on investment that its products could deliver. Middleby
refuses to divule the names of the dining chains involved in the test but reports that
the results look very promising.
Cbngage Learning 2013

Discussion Questions
1. Describe how the value proposition that Middleby offers to a casual dining chain,
like Outback _Stea_khouse, might differ from one that is offered to a fast-food customer, like Papajohn’s International.
2. In planning marketing Strategy, what adjustments might be needed in serving
patential casuai dining versus fast-food organizations?