Steers: Food and Restaurant Industry Essay

Steers market presence since 1960 within South Africa. An establshed brand within the same “ burger” indusrty with a loyal customer base.

INTRODUCTION: Changing business ownership can be very challenging. There are factors and aspects that need to be looked at to make sure you are in a place to do so without spending all your resources. Especially changing from a sole trader [a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business as stated by “E-conomic, Sole Trader- What is a Sole Trader?] to a franchise [a right granted to an individual or group to market a company's goods or services within a certain territory or location as stated by “About Money- What is a Franchise”]. The purpose of this report is to analyze the Subway franchise, its advantages, disadvantages and advice Johnny on whether he should remain a sole trader or own a Subway franchise.

When it comes to dining-in at a restaurant we all want the best service that we can get. When I think of “the best service” I think about the cleanliness, nice waitresses, good food, and affordable prices. There are so many different options when a family thinks about going out to eat, especially if they have small children. It’s often hard to go to a nice dine-in restaurant because sometimes it’s hard to find something on the menu for everyone in the family. I have experienced many things at two completely different restaurants. I can say Demos’ is better than Logan’s because the food and service is much better.

While barriers to entry for this industry are low, these barriers are continuously increasing. The industry consists largely of small independently owned establishments. This is further evident in the information provided later regarding the nature of the participants. Even though many large companies hold a decent amount of the market share, many small independently owned establishments account for the largest share at 79.63%. Entry into the industry is mainly done through franchise operations. According to the National Restaurant Association, small operators run more than seven of every 10 restaurants (Basham 19).

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

In fast-food corporate America In-N-Out Burger has always remained family-owned. It had no stockholders to respond to and was able to invest in maintaining high standards of quality. Unlike its competitors the chain, with 258 stores presently, is able to retain its constant growth in sales, even in times of recession.

Franchising is a business model that allows companies to rapidly expand their market share. According to Franchise.com (2015), there are three types of franchises: distributorships, trademark licensing, and business format franchises. When two organizations enter into a distributorship, the originating company provides the rights another company to sell their products. An example of a distributorship is when an auto manufacturing company grants rights to a dealership to sell their vehicles (Franchise.com, 2015). Trademark licensing is when one company allows another company to use their trademark (Franchise.com, 2015). The business format franchise authorizes franchisees to sell the parent company’s products and/or services as well as utilize their business model. This type of franchising is the most common and is the type needed to obtain to open a new Cold Stone Creamery.

This capital acquisition explanation argued that organizations were forced to resort to franchising because it allowed them to expand quickly without having to source scarce external financial resources or to relinquish control as in a joint venture or stock market operation (Caves & Murphy, 1976). Thus, over time, it was expected that franchisers would repurchase or take over the (best) franchised units in the system and eventually become fully company owned (Oxenfeldt & Kelly, 1969). However, research into this phenomenon has produced mixed results in the United States (for example, Hunt, 1973; Brickley & Dark, 1987; Lafontaine, 1992). Moreover, it has been found that where ownership redirection occurs it is ‘‘more strategy driven than opportunistic’’ (Dant, Kauffman, & Robicheaux, 1998, p. i). Indeed, Blair and Lafontaine (2005) comment that ‘‘most franchise chains are hybrids: partially vertically integrated and partially franchised’’ (p. 107). In contrast, while some large fast food chains (such as McDonald’s) strategically ensure a mix of franchised and company-owned units, most franchise systems in Australia are almost fully franchised (Frazer, Weaven, & Wright, 2008). Hence, different franchising models are employed around the world, and there is no ‘‘one-size-fits-all’’ approach. An alternative explanation of franchising, first put forward by Rubin (1978), focuses

The burgers are made from 100% Angus beef and are prepared medium allowing for the burgers to have the grilled taste but overflow with juices on the inside. The burgers are made-to-order, permitting the customer to essentially build their own burger. However, the chef provides an array of options, putting his best ingredients and toppings on the burger leaving the customer craving more.

387). It is beneficial for both parties in its ideal state, because on one hand the franchisor obtains new sources of expansion capital, self-motivated vendors for its products, and therefore an opportunity to enter new markets and increase the market share. On the other hand, franchisees gain products or services, expertise, and the stability usually reserved for large and reliable enterprises so that it may lessen the risk for them when they start a new business. Thus, it is essential for new businesses to build up this channel relationship by buying a franchise from a large, dominant franchisor with a well-managed franchising system. In TCBY’s case, it is strongly evident that one of TCBY’s strengths is its franchisee support program. The company provides sufficient operating manuals and marketing materials to assist its franchisees so that they are likely to have sound understanding about store operations. Also, a new franchisee of TCBY has easy access to many items needed for start-up and for day-to-day business. As a result of TCBY’s well managed franchising system, it leads to a 30 percent market share for TCBY in the late 1980s.

The first point made by reading is that a franchise makes it easier to find reliable suppliers to cooperate. The lecturer, however, challenges this particular viewpoint by arguing that designated suppliers are actually harmful to owners. To be specific, she points out that specific goods and services provided by franchise suppliers are priced much higher than equivalents sold by other suppliers.

The dagger of the people is always twisting and changing the fast food world. Fast food itself has always been changing due to social, economic, and health concerns. To begin I will cover the origins of fast food, followed by a brief discussion about McDonalds as well as Burger King. This will be accompanied by a brief discussion on Taco Bell, with our final subject covering healthier fast food options. The origins of the fast food "death machine": The machines gears were forged by the company known as Horn and Hardarts, based on the needs of the American populace in the year of 1902 to provide quick and cheap service and food to the hungry masses who craved the sustenance with hunger untold in the land of New York. The meals cost about

Steers super smoothies portray the message that Steers have taken into consideration the wants of their customers and have introduced smoothies to appeal to their more health-conscious customers. They have done this in order to expand their target market therefore increasing their customer base and furthermore their profit.

each block. But how are they able to open as many stores as this? The

♦ 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.