If the Sandwich Blitz, Inc. were to expand on a large scale, strengths include the current consistency in the quality of food that is found among the current eight freestanding shops and the historic performance of these shops. The 30% return on investment for 2011 shows that the company has been successful and is in a good place financially for expansion. Another strength is that the sandwich and beverage shops do not require a large lease in order to be successful. Being able to lease land that is unsuitable for most commercial purposes gives the company a competitive advantage when negotiating leases and would continue to be a strength in the large-scale expansion.
A weakness in the large-scale expansion of the Sandwich Blitz shops is the
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Because of a recent economic downturn, there may be an opportunity to negotiate new lease opportunities at even better rates. Also,franchising the Sandwich Blitz shops seems like a great opportunity for expansion beyond Dalman and Lei’s current large metropolitan area. This would require training upfront on Dalman’s part to insure the same quality and consistency in the food preparation. However, once the franchisees’ shops were established, there would be less time Dalman and Lei for any specific issues, as the franchisee would be responsible.Dalman and Lei can participate in the profitability of these franchises without the same level of management that is currently required. This opportunity would also potentially be less risk for the company as a large amount of capital would not be required in the expansion.
One threat for the Sandwich Blitz, Inc. is the economic downturn that has negatively affected the occupancy in the office parks where half of the shops currently exist. The lower traffic in these areas may affect the profitability going forward and affect the cash flow in the midst of the large-scale expansion. Also, the two new franchise operations that offer similar food and beverages and may enter the area soon are threats to the potential success of a large-scale
This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan.
Livoria Sandwiches Inc. provides exceptional quality sandwiches at a great price. Livoria has been able to maintain profitability since inception and has continued to grow its business and revenues. Recent unforeseen external events have caused significant cash flow issues and shook the family business. Livoria is hoping to see annual net income of $1.1 million by 2015. This report will provide alternatives and the pros and cons of initiating these alternatives. A recommendation of one of the alternatives as well as an implementation plan will be provided to assist in obtaining the goal,
During week two, Learning Team B will take a thorough look at the Olive Garden Italian Restaurant chain. Team B has decided that a new appetizer item should be added to the restaurant menu. The appetizer item being considered is cheese filled breadsticks served with Marinara sauce. The team will begin this marketing plan by giving an overview of the Olive Garden Restaurant, along with a detailed description of the new menu item being considered. They will also explain why marketing plays an important role in the restaurants success. A SWOTT analysis will be given to introduce all the strengths, weaknesses, opportunities, threats, and trends that should be considered prior to
The managers are crucial to the implementation of this new technology because they will drive the change in each of their individual locations. There are essential items that need to be covered to make sure this new system works as Dalman and Lei envision it. In order for the system to become effective Dalman and Lei along with the location managers must have honest discussion and believe in the vision which Sandwich Blitz is taking. They need to market this technology showing it is friendly and easy to manipulate and educate their customers so they can see that Sandwich Blitz will be able to provide even better customer service than before (Bateman & Snell, 2013).
With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.
...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16
The sandwich shop does not clearly identify a SWOT analysis. However, from reading the business plan, you can pull out several examples of what their strengths, weaknesses, opportunities and threats are. A strength that Sub Shop has is that. The Franchisor will provide them with the necessary supplies for day to day operations. Another strength is that the Quick service restaurants industry represents two-thirds of all sales.It is estimated to reach 15 billion dollars in 2010. The franchise that they are buying into in is a well-established chain that has been open for a long time and is very profitable. The final strength is that they will be hiring college students as employees not just because they will be part-time and don’t have to pay
Demo’s BBQ is a small family- owned business which sells premium brisket and pulled pork sandwiches accompanied by a wide variety of slaws to top your sandwich. Demo’s BBQ currently runs with 8 employees, these employees face a variety of scheduling challenges as most of them are soldiers working second jobs, add to this that at times some of these employees are in the filed or even deployed overseas. The intent of this plan is to focus on ways the company can grow not only in regards to the business itself, but also in regards to customer relationships as well as with developing and implementing new products and opening new store locations.
Panera Bread is a company that has capitalized on the “fast-casual” restaurant experience. Their aim was to provide a specialty bakery and cafe experience to urban and suburban workers and dwellers. They are categorized as bakery-cafes and currently have over 2000 stores worldwide. They are currently leading their industry in terms of number of stores and profits; they had $1.8 billion in corporate revenues in 2011, $3.4 billion in systemwide store revenues, and an average sales of $2.3 million per store location (Thompson, p. C-96). Their strategy is to open up more stores worldwide and keep their customers loyal through an attractive menu and the dining ambiance of each store. Panera strived to be the first choice for customers craving fresh, made-to-order sandwiches and breakfast items as well as baked in-house breads and pastries. They targeted “urban workers and suburban dwellers” looking for a quality, quick meal in combination with a pleasant dining experience. Their long-term plan was to make Panera Bread “a nationally recognized brand name and to be the dominant restaurant operator in upscale, quick service dining” (Thompson, p. C-97). Panera’s strategic issues were that they were trying to establish their name while there was a weak economic recovery going on in the United States: There was a 8 percent unemployment rate and an intensely competitive restaurant industry.
Among the crowded field of casual, quick-service restaurants in America, the distinctive blend of genuine artisan bread and a warm, comfortable atmosphere has given Panera Bread Company a golden opportunity to capture market share and reward shareholders through well-planned growth. With the objective of opening approximately 1,000 more bakery-cafes in the next three years, Panera Bread Company must make prudent strategy decisions about new store locations, supply-chain management and expanded offerings, all the while continuing its above-average earnings per share growth of at least 25 percent per year.
If they don’t franchise Mike Bellobuono and his team risk being locked out by the competition but as mentioned in the case Mike decided to invest in Bagelz because he felt that Bagelz had several distinct competitive advantages. An external threat in the future could be the franchise company Bruegger’s Bagel Bakery. The company has units all over New-England and it is one of the 50 fastest growing U.S. restaurants (ranked number 22 on the list). According to exhibit A Bruegger’s Bagels has during 1992 and 1993 established 20 stores and the company has increased the average sales per unit by $75,000.
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
Dr. Peter Buck and Fred Deluca partnered together to venture their first submarine sandwich shop in Bridgeport which was called as Pete’s Super Submarines. 312 sandwiches were sold on the very first day. Its brand is ranked number one in the sub sandwich category by ‘Entrepreneur’ magazine held consistently throughout the years. In 90 different countries, Subway has 32,004 restaurants with over 150,000 employees across the world. Subway is the second largest It is owned and operated by Doctor’s Associates. And became the number one Quick Service Restaurant chain in the world. “Subway Fresh Fit” can be found in the countries of US, Canada, Australia and New Zealand gaining considerable popularity. Healthy salads and veggie, the
An entrepreneur is someone who sets up their own business and take on financial risks in hope of making profit. There are many skills that an entrepreneur would have, some of these skills include focus, resilience, self-reliance, ability to learn, ability to sell and the ability to take on risks (Forbes, 2013, online). A franchise is an arrangement between the franchisor and franchisee where the franchisor will give the rights to the franchisee to use its trademark/trade-name and some business systems to produce and market a good or service. There are two types of franchises, one is product distribution is where the trademark and logo is provided although the business systems are not provided. Another type is a business format franchise is where the product and trademark is used alongside the franchisee conducting the business itself such as the marketing plan and operations manual (An Introduction to Franchising, 2001, pg.2, eBook). This essay will be discussing the advantages and disadvantages of an entrepreneur buying a business format franchise. Some points that will be discussed in this essay are the costs, the level of support and certain restrictions when buying a franchise.
Decision of more beneficial dinners. Subway offers a scope of low calorie, new and nutritious sustenance, which you can't discover in other fast food stores, at any rate not to such a degree. This Subway quality meets current pattern of eating more beneficial nourishment.