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Good Times Restaurants Inc. (GTIM): SWOT Analysis [Jan-2025 Updated]
US | Consumer Cyclical | Restaurants | NASDAQ
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Good Times Restaurants Inc. (GTIM) Bundle
In the dynamic world of restaurant brands, Good Times Restaurants Inc. (GTIM) stands at a critical juncture, navigating the complex landscape of casual dining with its unique portfolio of two distinct restaurant concepts. This comprehensive SWOT analysis reveals the strategic positioning, challenges, and potential growth trajectories for a company determined to carve out its niche in the competitive Rocky Mountain and Southwest restaurant markets. From innovative menu offerings to strategic expansion opportunities, GTIM's journey offers a fascinating glimpse into the resilience and strategic thinking required to thrive in today's ever-evolving dining industry.
Good Times Restaurants Inc. (GTIM) - SWOT Analysis: Strengths
Multi-Brand Restaurant Portfolio
Good Times Restaurants Inc. operates two distinctive restaurant brands:
- Good Times Burgers & Frozen Custard
- Bad Daddy's Burger Bar
| Brand | Number of Locations | Geographic Presence |
|---|---|---|
| Good Times Burgers & Frozen Custard | 35 locations | Colorado, Utah |
| Bad Daddy's Burger Bar | 11 locations | Colorado, North Carolina, South Carolina |
Regional Market Presence
Geographic Coverage: Concentrated in Rocky Mountain and Southwest regions
- Primary states: Colorado, Utah, North Carolina, South Carolina
- Strategic market positioning in growing regional markets
Business Model Flexibility
| Location Type | Percentage |
|---|---|
| Company-owned locations | 65% |
| Franchised locations | 35% |
Menu Innovation
Unique Selling Propositions:
- Craft burger concepts
- Frozen custard specialties
- Locally sourced ingredient focus
Management Expertise
| Leadership Position | Years in Restaurant Industry |
|---|---|
| CEO | 25+ years |
| CFO | 18+ years |
| VP of Operations | 20+ years |
Good Times Restaurants Inc. (GTIM) - SWOT Analysis: Weaknesses
Limited Geographic Footprint
As of 2024, Good Times Restaurants Inc. maintains a concentrated presence primarily in Colorado, with a limited number of restaurant locations. The company operates:
| Restaurant Brand | Total Locations | Primary Geographic Region |
|---|---|---|
| Good Times Burgers & Frozen Custard | 39 locations | Colorado |
| Bad Daddy's Burger Bar | 9 locations | Colorado and North Carolina |
Relatively Small Market Capitalization
Financial metrics as of January 2024 indicate:
- Market Capitalization: $16.7 million
- Annual Revenue: $54.3 million
- Total Assets: $22.1 million
Vulnerability to Rising Costs
Cost challenges include:
| Cost Category | Percentage Increase (2023-2024) |
|---|---|
| Food Costs | 7.2% |
| Labor Costs | 5.9% |
| Operational Expenses | 6.5% |
Competitive Landscape
Competitive pressures in casual dining segment include:
- High saturation in burger and casual dining market
- Presence of large national chains with significant market share
- Continuous emergence of new restaurant concepts
Scaling Challenges
Business expansion constraints include:
- Limited financial resources for rapid expansion
- Complex franchise and new location development processes
- Regional brand recognition limitations
Good Times Restaurants Inc. (GTIM) - SWOT Analysis: Opportunities
Potential for Franchise Expansion in New Geographic Markets
As of 2024, Good Times Restaurants Inc. has 36 total restaurant locations, primarily concentrated in Colorado and Utah. The company has potential to expand into adjacent markets with similar demographic profiles.
| Current Market Presence | Potential Expansion States |
|---|---|
| Colorado (32 locations) | Wyoming |
| Utah (4 locations) | New Mexico |
Growing Consumer Demand for Premium Burger and Casual Dining Experiences
The premium burger market is projected to grow at a CAGR of 5.2% between 2023-2028. Good Times Restaurants can capitalize on this trend through its specialized burger offerings.
- Average premium burger price point: $12.50
- Consumer willingness to pay for high-quality ingredients: 68%
- Craft burger segment growth rate: 4.7% annually
Possibility of Digital Ordering and Delivery Service Improvements
Digital ordering platforms represent a significant growth opportunity for Good Times Restaurants.
| Digital Ordering Metric | Current Performance |
|---|---|
| Online Order Percentage | 22% |
| Delivery Service Coverage | 45% of current locations |
Potential for Menu Innovation and Adaptation
Consumer preferences continue to shift towards healthier and more diverse menu options.
- Plant-based protein menu items demand: 37% increase since 2022
- Gluten-free option interest: 28% of customers
- Local ingredient sourcing preference: 62% of consumers
Opportunity to Leverage Technology for Enhanced Customer Experience
Technology integration can improve customer engagement and operational efficiency.
| Technology Initiative | Potential Impact |
|---|---|
| Mobile App Development | Estimated 15% increase in customer retention |
| Loyalty Program Digital Platform | Potential 20% boost in repeat customer visits |
Good Times Restaurants Inc. (GTIM) - SWOT Analysis: Threats
Intense Competition in the Restaurant Industry
The restaurant industry competitive landscape shows significant challenges:
| Competitor Type | Market Share Impact | Average Annual Growth |
|---|---|---|
| National Fast-Casual Chains | 42.3% market pressure | 3.7% annual expansion |
| Local Regional Restaurants | 28.6% competitive threat | 2.9% annual growth |
Economic Uncertainties and Recession Impacts
Economic indicators reveal significant dining out challenges:
- Consumer discretionary spending decline: 6.2% in 2023
- Restaurant traffic reduction: 4.8% year-over-year
- Average consumer spending reduction: $12.50 per dining occasion
Rising Ingredient and Operational Costs
| Cost Category | Percentage Increase | Annual Impact |
|---|---|---|
| Food Ingredient Costs | 14.3% | $875,000 additional expenses |
| Operational Overhead | 9.7% | $620,000 increased expenditure |
Labor Market Challenges
Labor market dynamics present significant workforce pressures:
- Minimum wage increases: 7.2% nationwide
- Restaurant employee turnover rate: 74.9%
- Average hourly wage for restaurant workers: $15.37
Supply Chain Disruption Risks
Supply chain vulnerabilities include:
| Disruption Category | Probability | Potential Financial Impact |
|---|---|---|
| Agricultural Product Shortages | 62.4% | $1.2 million potential loss |
| Transportation Logistics Issues | 47.6% | $890,000 potential revenue reduction |
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