ABSTRACT

The case of Earl's Family Restaurants involves two roles, each played from a different perspective. One is the regional sales manager for a food service manufacturing firm in the Midwestern United States; the other is the chief buyer for a mid-size chain of restaurants, also in the Midwest. Exceptional Food Products, Inc. provides a full range of packaged goods to restaurants, clubs, schools, institutions, and military installations throughout the country. The Midwestern region is one of the more important to the firm and, occasionally, leads the nation in sales volume. The company has lost some customers in recent months to new market entrants. They seem strongly customer-oriented and are working hard to take away business. A top new competitor is a subsidiary of a very large firm, Cub Foods, Inc., and they're engaging in a deliberate policy of undercutting Exceptional Food Products, Inc. on price.