Howard Johnson's Competitors

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Our research indicates that the two main competitors in the market currently are Howard Johnson’s Company and our early on competitor Van Noy Railway Company which is currently known as the Interstate HOSTs Co. Our main competitor Howard Johnson Company has a chain of hotels, motels and restaurants located primarily throughout the United States. Recent, 1960 study shows the following statistic in the Hotel industry; occupancy rate of the hotels is around 67%, 2,400,450 hotel rooms, with an average room rate of $10.81 and on average a typical hotel has around 19 rooms both independently and locally owned. (R3)We believe that currently the Fred Harvey Company holds a strong position in the industry, the company’s loyal customers and the strong…show more content…
Johnson has tried a new concept for his father's company with the creation of a steakhouse restaurant chain called Red Coach Grills. Currently, Howard Johnson Company consists of 605 Howard Johnson restaurants (265 operated by the company and 340 by licensees), 10 Red Coach Grill company-owned restaurants and 88 Howard Johnson's Motor Lodges, all of them franchised, in 33 states and the Bahamas. There are 17 manufacturing and processing plants in 11 states. Net sales comes up to $95 million in this current year of 1960 (compared to $31.8 million in 1951), and net income to $2.3 million. Both annual sales and earnings per share increased every year between 1959 and 1966.…show more content…
Also Re-franchising and re-organizing their operations is also an important highlight of their corporate activities. In recent years we saw the Howard Johnson Company increasing its investments in major emerging markets while making small- scale acquisitions in advanced markets. While looking into competitor’s weaknesses we found out that they are mainly due to changes in their ownership that has highly affected the brand image and caused concerns. Competitors are serving cheaper quality food in their restaurants which has diluted their brand equity. In the current market, consumers prefer home-made food over the restaurants. Also, the increase in price of raw material has become a weakness and an ongoing threat in this highly fragmented

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