I. Facts of the Case: Outback is one of the biggest successes in corporate America. Despite Wall Street predictions of a downturn in Outback’s stock they have continued to improve. Outback’s three founders started the business predicting success to allow them more personal time. In 1988 the firm produced $2.7 million from two restaurants. By the end of 1994 they had $549 million in sales from 200 stores. The three founders all brought restaurant experience with them into the company. Chris Sulivan started out as a busboy. Bob Basham began as a dishwasher, and Tim Gannon was a chef’s assistant. All together their experience totaled 60 years in casual dining. After graduating college in the early 70’s Chris and Bob entered the executive role working at Bennigan’s. After that their first joint venture was a franchise of 17 Chili’s restaurants. In 1987 they decided to pursue their dream. Chris brought his strategic sense, Bob his strong skill in operations and re

II. Inferences: Outback is a model corporation for the casual dining industry. They practice good customer relationship management. Paying close attention to food quality and flavor, and better service form a wait staff that isn’t overwhelmed with too many tables tells the customer they are important and valuable to the company building lasting relationships and ensuring repeat customers. The company’s commitment to total quality plays a big role as well. They continuously try to improve taking employee suggestions seriously. They are committed to product quality buying only the best regardless of price, and maintaining long-term relationships with quality suppliers. And they try and give the customer exactly what they want, usually succeeding. Outback also practices corporate social responsibility. The many fundraisers and charity events they sponsor make them a real part of the community in which they operate. Outback is all a darling to investors who receive above average returns on their stock.

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