Casual dining restaurateur, The Cheesecake Factory Inc. (CAKE - Analyst Report), which currently boasts nearly 177 restaurants across the United States, has unveiled a restaurant in Canoga Park, Calif. In fact, The Cheesecake Factory’s Woodland Hills, Calif. location has been shifted to Canoga Park. Management aims to open as many as 8 to 10 new company-owned restaurants in the domestic market in 2013.
At present, the restaurateur has about 33 restaurants in California. As per the National Restaurant Association, California’s restaurant industry contributes considerably to the state’s revenues. According to the research organization, California’s restaurants are expected to record $67.4 billion in sales in 2013. Californians are inclined toward eating out frequently and this is favorable for the growth of the sector. This, we believe, has caught the attention of Cheesecake.
Cheesecake Factory restaurants are primarily located in or near malls and shopping centers. We believe that such a location is strategically perfect in order to attract high-end customers. The new 9,450 square foot-restaurant is located in the Westfield Topanga Shopping Mall and can accommodate around 260 diners at a time. We believe that the restaurant’s strategic location, along with its attractive menu and contemporary ambience, will drive traffic, going ahead.
There are several other eateries, which are opening their units at the shopping center namely Chipotle Mexican Grill Inc. (CMG - Analyst Report), Jamba Inc. (JMBA - Snapshot Report), Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report) and many others.
This Zacks Rank #3 (Hold) company is growing on both national and international fronts. Also, Cheesecake Factory is actively expanding its other formats, of different sizes and scale, to cater to local demand. The company’s smaller prototype restaurants will likely accelerate its growth in non-traditional locations and also improve return on invested capital.