The Food Service Industry

1270 Words6 Pages
The food service industry is one of the biggest and most active industries in the world and while growth is limited, there is still room for improvements. The industry’s full-service chain segment reached near saturation point in January 2011 (Heskett & Luecke, 2011). Big name-brand chains in this field are looking at expansions overseas, while smaller regional chains are looking for other domestic avenues which they can pursue for continued growth. Porcini’s Inc. is considering expanding its full-service chain business. However, the company’s resources and brand recognition limits how far they can go. For that reason they are looking at domestic growth rather than overseas expansion. They are looking at opening up Porcini’s Pronto,…show more content…
The Pronto concept stores would be located on interstate highways in hopes of garnering the interest of travelers who value quality, food service and time. Additonally, these restaurants needed to placed in areas where there are no other competitors close by. This strategy would help Porcini’s brand have a greater chance of becoming widely recognized. Porcini’s Inc. top Chef was asked to develop a menu that would be less expensive and less far-reaching than the company’s lead restaurant. Like previously mentioned, Pronto will be targeting travelers, so it is necessary that each location is fast-paced, so as to not keep customers waiting. To meet this need, Porcini’s strategy is affixed to having the right people, they should have “customer service baked in”, making sure they are asking and review customer experiences and implementing technology to speed up service. Since they are limited in brand recognition and are limited in capital, they have come up with several different strategies to expand. They need to pick from three different strategies; company owned and operated Porcin’s Pronto, franchising and/or syndication. Pronto would like to choose a strategy that can offer quality to travelers, but not affect the profitability and without jeopardizing the company’s reputation for excellent food. Problem Statement Porcini’s Inc. must determine what type of strategy, it must use to expand it’s business to another segment
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