International Franchise Case Study: Moe's Southwest Grill

The business that I want to open would be a franchise of a McDonald’s restaurant. McDonald’s is a fast-food restaurant that serves a variety of products, but is mostly known for its

Kessler visited the restaurant Chili’s Grill and Bar in Chicago O’Hare Airport and complete research by viewing a couple eating lunch, he noticed that the female was overweight and consumed a significant amount of food. He discusses the event of another woman that ordered Chili’s Kickin Jack Nachos, she completed two-thirds of her dish and then pushed her plate away from her place at the table, only to reach over the table and finish the remainder of her dish. While at Chili’s Bar and Grill, Kessler would ask servers and managers what ingredients were in his dishes, and his question was often answered with a question and no answer. The popular bakery Cinnabon began its expansion in 1995, after its initial family setting that included a

In order to create a Dip n Dip franchise in the country of Panama, we will need a total capital of $650,000.00. This amount needed is to cover the franchise cost, beginning franchise merchandise, location, furniture and decoration for the restaurant advertising and keep a remaining capital for utility and other kinds of cost.

Moe’s is the 80th largest fast food restaurant with 650+ stores throughout the United States. Sales in 2015 were 621 million dollars, with the average location netting just over 1 million dollars in sales. They are almost identical in their approach and offerings to Chipotle. They also offer the personalization and customization of your burritos and wraps. Moe’s is another great fast casual restaurant that we know this product will appeal to. We believe that success at Moe’s could be a great lower level entry point that can help us get into other larger restaurants. The contact that we believe is best for Moe’s would be their Chief Development Officer, Steve Parker. He is in charge of new business ventures and developing the branding and restaurant

Jim Disbrow and Scott Lowery opened up their first Buffalo Wild Wings near the campus of The Ohio State University. However, at the time, the restaurant is known as “Buffalo Wild Wings & Weck” (Weck is in referred to a type of sandwich roll that was originally used for the restaurant’s sandwich offerings). Within the next twelve years, the two entrepreneurs grew the restaurant chain to thirty-five restaurants. Unfortunately through rapid expansion the restaurant chain was exposing itself to potential bankruptcy-inducing debt. In order to gain financial stability, in 1994, Sally Smith because the Chief Financial Officer of Buffalo Wild Wings, two years later, she became the Chief Executive Officer of the restaurant chain. Under Smith’s leadership, Buffalo Wild Wings avoided financial pitfall of bankruptcy. According to their corporate website, in effort to target a larger audience and build their brand, Buffalo Wild Wings removed the “Grill & Bar” from its name in 2012.

However, franchising is likely to have a negative impact to the business if it is not managed well, and it is often come of the concerns for both parties. Generally speaking, the major concern facing franchisees is that franchising hardly guarantees a profit. This is because of the

To ensure that our franchisees will be able to qualify with both lenders and landlords, we require that potential franchisees interested in a single store opportunity have a minimum $300,000 net worth and $100,000 in liquid capital. We also have multi-outlet opportunities available for those who fulfill specific financial requirements.

Melt Bar and Grill has been established for 10 years and has a mature business system now, so the company is recommended to own 10% outlets and franchise 90% outlets. Because the headquarter of Melt Bar and Grill is in Cleveland, Ohio, the company ought to own the restaurants in Ohio, in order to minimize monitoring costs. To avoid increasing advertising costs and monitoring costs, Melt Bar and Grill is suggested to franchise restaurants at other cities in the Mid-West during the initial expansion period. Since the target customers of Melt Bar and Grill are young professionals and hippies, the company should franchise more outlets in the cities like Chicago, Indianola, and Bloomington. Melt Bar and Grill is not recommended

As mention before, Restaurant Brands International is a merger company that contains Burger King, a coffee shop and a restaurant called Tim Hortons. Since it was a merger that occurred in 2014, there isn’t much info for the company; however, since Burger King has been almost as old as McDonalds so much of the info will come from Burger King. Burger King is practically the same as McDonalds created in 1950s yet a few years later after its competitor was born. The main difference of how it was created was that Burger King started off like a stove and that name of the stove was named Insta-Boiler.

As part of our evaluation of your application, please carefully answer the following ten questions. If you have partners that will be on the franchise agreement, please have them answer these questions too. All answers and information you provide will be held in strict confidence.

McDonald’s has extremely strict rules when it comes to awarding franchises. First, it is very costly to open a new location or purchase an existing location, with the median startup cost being $300,000 (Kalnins & Lafontaine, 2004, p. 750). As well, the company does an extensive background check on a variety of issues including credit history, business management experience, and the acceptance of the contractual agreement that the company provides. Because of these strict rules and the large amount of capital needed to purchase a location, “rates for franchise applicants are 1% for McDonald's” (Norton, 1988, p. 204). This is an extremely low acceptance rate and is even lower than McDonald’s chief competitor, Burger King, who accepts 1.5% percent of applicants (Norton, 1988, p. 199). These low numbers are understandable in the context of the business and risk that is involved. Though the franchise purchaser must pay a large amount of money to gain the rights to the restaurant, they truly have nothing to lose besides money because they are simply running another company’s business model as well as using their trademarks and logos. McDonald’s on the other hand, has a great amount at stake because they place the well being of an entire restaurant into the caretaking of an individual who simply purchased the rights for the store. If the store does poorly or if there are issues with customer service, it reflects

The multinational organization that we had chosen is McDonald’s Brunei. McDonald’s Brunei is a franchise and it is a private limited company. McDonald’s is a multinational business that success by achieving the world’s leading global foodservice retailer with more than 36,000 franchising stores in approximately in more than 119 countries.

♦ Reliance on franchising "associate" stores and opening a few new company-owned stores as a means of expanding nationally and internationally. However, franchise licenses were granted only to candidates who have experience in multi-unit food establishments and who possess adequate capital to finance the opening of new stores in their assigned territory.

seems odd that any restaurant would want to open in a location which has proven

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its