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Distribution Channel

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Submitted By GoingNuts
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DISTRIBUTION CHANNEL

The California Pizza Kitchen strategy to build a strong company with leadership position in the pizza industry decided to expand their distribution channel by not just having company owned business but utilizing franchises to expand their customer base. Franchising provides the ability to expand business rapidly at less of a financial risk. Profits are higher due to lower costs. Another channel is their high quality fast-casual concept called California Pizza Kitchen ASAP. The ASAP restaurants are smaller than the full service restaurants and offer a limited menu in attractive high traffic areas. They offer in-house dining or take out. This channel allows the company to get their product out to the consumer at a lower cost with smaller overhead (smaller rents, less employees, lower utilities).

They also teamed up with Kraft Pizza a division of Kraft Foods another distribution channel, which has a line of frozen pizzas that are sold to supermarkets. These additional channels provide growth opportunities and name recognition. Currently, Kraft distributes pizzas in supermarkets focusing on markets in which the restaurants are located in from east coast in Georgia, Maine, to the west coast in Arizona, Nevada and California.

The extensive development process involved input from CPK so that they maintained the quality of the restaurant in the frozen product. From the Kraft Manufacturing building, the pizzas are delivered by trucks equipped with freezers to Safeway Distribution Center where they are then distributed again to the area Safeways that the restaurant are located. Then they are sold from the Safeway grocery freezer to the consumer’s home, where they are enjoyed by millions of families.

To improve on their distribution process they could use airfreight especially to the eastern states to provide quicker access

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