Since its first cafe in London in 1971, The Hard Rock Cafe has opened its doors in 51 countries worldwide and has been an international company since 1982. Some of the first restaurants outside London were Paris, Berlin, Los Angeles, Chicago, Houston and New York. A rock 'n' roll music themed restaurant that served classic American food was easy to digest in developed countries in the Western Hemisphere. But could it do the same in international markets of developing countries?
Hard Rock recognized the success of its first international restaurants and reacted by adding restaurants in developing countries in the Caribbean, Central and South America, India and China. The risks of culture resistance from these countries were low. Rock 'n' roll music may have started in the U.S. but is listened to all over the world. HRC was less of an outsider and more of an entertainment attraction in most countries.
The brand continues to grow, seeing an increase in of its cafes. According to the year-end report earnings for 2006, revenue for company owned cafes were $501.9 up 10.9% from 2005. With such promising numbers, the highest profits are coming from overseas. Sales in Europe were up 8.8% sales in North America were up 5.8%. The company elvaluated under performing cafes and closed two American cafes in Austin and Los Angeles. HRC opened five international cafes in Ocho Rios, Mumbai, Narita, Santo Domingo and Margarita.
Hard Rock International includes cafes, hotels and casinos. Its hotels and casinos have a a higher profit margin than its cafes. Its American cafes are seeing a decrease in sales and a smaller market share. Is the American cafe the 'dog' of the Hard Rock International brand?
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