Rubio's is a fast food restaurant that specializes in fish tacos. Based out of Carlsbad, California, Rubio's has 180 locations, all of which are in the Western United States. The menu consists primarily of fresh, grilled, Mexican food centered in the Baja traditions that go far beyond the typical Mexican-based fast food staples of beef tacos and bean burritos—at Rubio's, you can order grilled shrimp tacos, blackened mahi-mahi burritos, and more.

Rubio's founder, Ralph Rubio, was inspired to start the concept after tasting authentic fish tacos during his college spring breaks in San Felipe, Baja, Mexico. In considering whether or not to start the restaurant, Ralph, a business student, most likely conducted a competitive analysis. And while the concept is up and running, Ralph is likely still conducting competitive analyses as he considers whether to take Rubio's nationwide. Imagine Ralph contacts you to conduct a competitive analysis for Rubio's. Using what you know about the fast food industry in the United States, help Ralph decide whether Rubio's is operating in an attractive or unattractive environment.

 

1. Consider the number of competitors in Rubio's environment. Are there a large number or few? Are there many barriers to entry, and if yes, what might they be?

2. Is the fast food industry likely to experience growth? How much product differentiation is there in this industry?

3. Are there substitutes for fast food, and if yes, what are they? Do suppliers and buyers have much power?

4. Does Rubio's operate in an environment that is fairly attractive?