...when he moved to Buffalo, New York. While at Buffalo Disbrow experienced his first “spicy local version of barbecued chicken wings” at a place called Anchor Bar. Disbrow returned to Ohio in 1981 where he reunited with Lowery while judging a figure skating competition. During this visit they both developed a crazing for “buffalo-style chicken wings” but were not able to locate a place in town that served them. After their failed attempt to satisfy their crazing the two decided to open their own restaurant that sold buffalo style chicken wings. Without any previous experience the two made plans to open their restaurant. The first location that they chose was in Columbus, Ohio, which was the center point of Ohio State University. Picking that location was a very good idea because it provided them with a large market of college students who wanted a nice meal for a moderate price. The first restaurant was called Buffalo Wild Wings and Weck, which was a type of bread that they used to serves their burgers on. Shorty after starting they added on a third partner Mark Lutz. The three men had absolutely no experience in the restaurant business but were doing exceptionally well by providing the college students with what they want. The company had its ups and downs financially during the first couple of years; but as its financial standings improved more restaurants were opened in six different locations. By 1991 the three partners had decided to franchise the business so they reached...
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...Advantage of franchising – Subway In engaging a franchise business, one will face the pros and cons from the business they operate. There are a lot of benefits prospective franchisees can get from Subway the company provides their franchisees with assistances before and after they open a Subway restaurant. Services provided before opening include an intensive 2-week training, site selection, restaurant design, equipment ordering, and access to product formulas & operational systems. And services provided after opening include, in-depth operations manual, field support, franchise services, research and development, and continuing education (Subway Franchise Training & Investment, Subway Help & Support, n.d.). Apart from the many benefits derived from the cooperation between Subway and the franchisee, there are some more advantages for potential franchisees in buying a franchise business (Franchising 101, 2005), for examples, franchisees can enjoy the advantage of well-established trademark and name recognition of the franchise business. Fred DeLuca, the founder of Subway created the principles which all the ‘Subway’ restaurants needed to follow. High quality, fresh food and customer satisfaction were main things which the franchises needed to keep up. And in 1978, Subway’s success was followed by the opening of its 100th store. The company’s rule in which the bread that was used should be baked in the restaurant itself. This helped increase Subway’s reputation and...
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...S w 9B11M082 DEVELOPING AN INTERNATIONAL GROWTH STRATEGY AT NEW YORK FRIES Sharda Prashad wrote this case under the supervision of Christopher Williams and W. Glenn Rowe to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-08-18 It was May 2011 at the head office of 122164 Canada Ltd. (the Company) in uptown Toronto. The Company was the parent company of New York Fries (NYF) and South St. Burger Co. (SSBC). The mood at the head office was subdued, disguising the hectic pace that came with being one of the few companies that had managed to escape the recent global economic turmoil. In fact, business at the Company had been on an upward trajectory ever since it was founded in 1983...
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...This prompted Maximo to open a cafe, where the troops could enjoy food and drinks. The cafe initially served chicken, steak and drinks. Maximo's niece,Ruby, who managed the kitchen, created a special recipe for chicken that became an instant favorite for the GIs. Soon, the Filipino public heard about the delicious chicken-tender, juicy and crispy-and they came too! Max's Restaurant was born. Over the years, Max's Restaurant's popularity grew and it became known as "the house that fried chicken built." It has expanded in Metro Manila, Southern and Northern Luzon, Cebu, and to California and other places in the United States. It has also expanded to Canada. It will soon open restaurants in other countries as well. Max's Restaurant has established itself as a household name in the Philippines, an institution, and a proud Filipino tradition. The second and third generations of the family continue to zealously uphold the standards and traditions set by Maximo and Ruby for all Max's Restaurants. Today,dynamic individuals interested and willing to invest in the long-standing tradition of quality which Max's Restaurant offers can invest inMax's. It opened its doors to franchising in the second quarter of 1998. This is an opportunity to join the thriving food service industry in the Philippines. Franchising Support and Service Max's values close family ties and the Filipino concept of "samahan" (sense of belongingness).Thus we treat each and every business partner as a family member...
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...Marketing Plan Teresa Bowie University of Phoenix Marketing MKT/421 Tracy Coomes October 2, 2012 Marketing Plan: Phase II Introduction Subway is a growing business with the strength of motivating the world to healthy eating. So how do we identify the segmentation criteria that will affect their target market selection? To understand the effect on the segmentation criteria the key is to identify the target market of the business. In order for the market to achieve their goals, they must follow the step of researching the target market. Describe the organizational buyers and consumers of the new services “the reward system” and the factors that influence their purchasing decisions. Factor will discuss how their involvement will affect the marketing strategy along with analyzing current competitors and define the competitive landscape for the service of the “reward system”. The segmentation criteria Market segmentation is common marketing processes that entail separating a large audience into distinctive segments with consumers who have similar needs or wants. This process identifies targeted marketing segments, so companies can use discretely the marketing mix approach for the most profitable markets. These processes build marketing investments and allow the investments to be more efficient. Detailed criterion is helpful in targeting...
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...not answer in point-form unless the questions mention “List” or “State”. It is not necessary to precede each answer with an introduction and end with a summary. Proceed directly with the answer. 4. The total marks for TMA 1 is 100 and this contributes 25% towards the total weightage of this course. 5. Do remember to submit online and by the deadline. 6. Students are highly encouraged to passage their TMAs to the Turnitin system before submission, to encourage honest academic writing and it is not mandatory except for Project courses". Case Scenario 1 India a hot spot for franchising As franchisors have found wringing impressive growth rates from the domestic market increasingly difficult, they have begun to export their franchises to international markets, including those with developing economies. Indeed, franchising is ideally suited for developing economies because it allows people with limited business experience and financial resources to become part of an established business. India, with a population of more than 1 billion people, is attracting the attention of franchisors across the globe. More than 750 franchisors now operate in India, where the franchising industry is growing at an annual rate of 30 percent. India’s middle class, which currently stands at 50 million, is expected to grow to 583 million by 2025, a growth rate that appeals to franchisors. India also has 35 cities with populations that exceed 1 million people compared to just 9 in...
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...not answer in point-form unless the questions mention “List” or “State”. It is not necessary to precede each answer with an introduction and end with a summary. Proceed directly with the answer. 4. The total marks for TMA 1 is 100 and this contributes 25% towards the total weightage of this course. 5. Do remember to submit online and by the deadline. 6. Students are highly encouraged to passage their TMAs to the Turnitin system before submission, to encourage honest academic writing and it is not mandatory except for Project courses". Case Scenario 1 India a hot spot for franchising As franchisors have found wringing impressive growth rates from the domestic market increasingly difficult, they have begun to export their franchises to international markets, including those with developing economies. Indeed, franchising is ideally suited for developing economies because it allows people with limited business experience and financial resources to become part of an established business. India, with a population of more than 1 billion people, is attracting the attention of franchisors across the globe. More than 750 franchisors now operate in India, where the franchising industry is growing at an annual rate of 30 percent. India’s middle class, which currently stands at 50 million, is expected to grow to 583 million by 2025, a growth rate that appeals to franchisors. India also has 35 cities with populations that exceed 1 million people compared to just 9 in...
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...everything we do. At DineEquity, we leverage the resources of the largest full-service restaurant company in the world with the agility to connect with guests on a local level. We are working harder than ever to energize the brands, optimize operations, expand our market share and create value for our shareholders. Look closely at our businesses, and you will see our winning strategies in action in ways both large and small. 01 In challenging times, the best brands 02 To our DineEquity family of shareholders: It has been said that, in difficult times, leaders lead. 2009 was such a year, and I am proud of the many ways that our Applebee’s, IHOP and Shared Services teams rose to the occasion. We focused our efforts on those things within our control, and we are now beginning to reap the rewards. After more than 50 years in business, our IHOP brand is stronger than ever. In 2009, IHOP was the market share leader in family dining for the third consecutive year. IHOP also reported the highest annual system-wide sales in the category, solid same-store sales results and new franchise restaurant development among the strongest Julia A. Stewart Chairman and Chief Executive Officer, DineEquity, Inc. get better. in the industry. With the April 2009 opening of our first IHOP restaurant in Vermont, franchisees now operate in all 50 states. IHOP franchisees are set to open our 1,500th restaurant in 2010 as IHOP system expansion continues. At the same time, we have made tremendous...
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...three basic types of franchise; 1. Trade name franchise Trade name franchise involves a brand name such as True Value Hardware or Western Auto. Here, the franchisee purchases the right to become identified with the franchisers trade name without distributing particular products exclusively under the manufacturers name. 2. Product distribution franchise A Product distribution franchise licenses the franchisee to sell specific products under the manufacturers brand name and trademark through a selective, limited distribution network. This system is commonly used to market automobiles (Chevrolet, Oldsmobile, Chrysler) gasoline products (Exxon, Sunoco, Texaco), soft drinks (Pepsi Cola, Coca-Cola), bicycles (Schwimm), appliances, cosmetics, and other products. These two distribution systems allow franchisees to acquire some of the parent companys identity. Franchisees concentrate on the franchisers product line, although not necessarily exclusively. Since 1972, the number of product and trade name franchises has declined rapidly because of intense competition and general economic conditions. But the sales of these two franchise systems have climbed steadily since 1972. 3. Pure franchise A Pure (or comprehensive or business format) franchise provides the franchisee with a complete business format, including a license for a trade name, the products or services to be sold, the physical plant, the methods of operation, a marketing strategy plan, a quality control...
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...providing $20,000 capital investment and there will be an additional $30,000 raised in short-term loan. Non-Franchise Vs. Franchise When deciding on the business model we looked at the pros and cons of both the franchise vs. non-franchise method. Pros of the franchise model include the following: Franchising is a great way to find talented people to manage your locations and give them an incentive to work hard. The most qualified and hardest working people generally prefer to invest in running a business in return for profits rather than taking a salary as an employee. So by franchising, you are going to get better talent that will work harder to build the business than you would by hiring someone to work for you. Franchising is a good way to obtain expansion capital. Because your franchisees pay to buy outlets in your chain, you can grow the number of locations without tapping much of your own capital or needing to request financing from banks or investors. Franchising can generate high financial returns for relatively little risk. Unlike adding company-owned outlets, when you franchise, you put relatively little money into adding each location. If you have a good business model, you can earn high royalties from sales at those outlets. The percentage returns you earn can be many times what you would have earned if you opened and ran the outlets yourself. Cons of the franchise model include the following:...
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...Paris in 1765, the first was restaurant started by Boulanger. In the beginning, in his tavern, he served the soups which called restorante and later he opened the restaurant named Le Champ d’Oiseau. After the French revolution, in 1794, the French refugee, Jean-Baptiste Gilbert Paypalt, brought the word restaurant to the United States. Paypalt set up the first French restaurant in Boston where served the truffles, cheese fondues and soups. However, this French restaurant was influenced to Delmonico. He decided to open his family-operated restaurants where later counted as American restaurant. Delmonico also is the originator of menu in both French and English with a variety of food and soups. The pattern of eating outside in the restaurant is being more and more attract to the city people especially in rich and famous groups of people. In 1919, there is the public restaurant around 42,600 in the United States. Beside of the food, those restaurants also serve the wine, liquor, cake and ice cream as well. In 1925, the first ice cream franchise was established by Howard Johnson. He opened the first store of ice cream parlor and later persuaded his friend to sell the ice cream called Howard Johnson’s ice cream. However, the first colorful franchise story is the famous Kentucky Fried Chicken (KFC). Colonel Harland Sanders, at his age 65 years old, founded the small restaurant or motel and provided the cooking chicken to his guests. This restaurant can call as the first generation...
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...own, especially in services. For instance a business in mechanics, auto or equipment repair. Construction, truck driving, animal trainers, personal trainers, security, electrical equipment, refrigeration equipment, restaurants and computer based business, to mention a few. Veterans are a source of highly qualified individuals, they posses a wide range of skills and experience that can make them a great fir for a business. Going into the military requires discipline, loyalty and commitment. Which allows them to be proficient in their own business. They posses leadership and responsibility. Like being on time, finish the job, being able to handle stress, pride on what they do and teamwork. They are also capable of working long hours, which is important to start a new business, since they are time consuming. o Besides those discussed in the case, discuss other characteristics that are essential to the success of franchisees and provide a rationale. Other characteristics that are important to the success of a franchise are understanding the business before investing on it. Knowing what you like to do, and making sure the type of franchise is a good fit for you. Other important factor is reviewing the statistics of the franchise, there are studies that show the ratio of the investment and revenue of the business. Another important factor is the location of...
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...income dropped by 58% and closed 199 restaurants during the year. High competition remains with other fast-food restaurants (McDonalds, Burger King and Yum Brands) Wendy’s is facing the prospect of being sold to Triarc owned by its largest institutional shareholder, Peltz. Under the pressure also of Pelz, Wendy’s sold Tim Horton’s even though it was a profitable company in the coffee and doughnuts business and Wendy’s has a plan to expand by penetrating breakfast food market. With the decreased sales and number of stores, and the influence of Pelz, the CEO is faced with the options to succumb to the demands of Pelz to sell the company or continue with the comprehensive Revitalization Plan. IV. STATEMENT OF THE OBJECTIVES To be able to increase market share and increase income by 30% within 5 years by growing franchise ownership and controlling operating costs with heightened commitment to quality products and services and expanded meal and food offerings. V. AREAS OF CONSIDERATIONS Strengths Global brand 1st to offer 99 cent value menu Number 1 in consumer taste tests and brand awareness Healthier food selections 122 new restaurant in North America Expert Management Atmosphere Better compensation package for employees Reduced labor costs Speed of service Weaknesses The fingertip in chili incident dropped the sales in 2005 Failed marketing strategy dropped sales in 2005 Last food chain to introduce new products and breakfast menu Death...
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...franchising as a market entry strategy and focus on how business format franchising can assessed as an expansion strategy in contrast to other modes of entry. Contents A Brief Journey into the History of McDonalds 3 1.0 An Introduction to Franchising (Facts about Franchising) 4 2.0 The Advantages and Disadvantages of Business Format Franchising 5 2.1 Marketing Franchises Vs Marketing Standalone Enterprises 7 2.2 Brand Image Transformation – Maintained Brand Equity of Franchises 8 2.2 Franchise Marketing Mix Vs Other Entry Modes 9 3.0 Market Entry Methods 10 3.1 Direct Export & Indirect Exportation 10 3.2 Licensing 11 3.3 Contracting 11 3.4 Manufacturing Abroad 11 3.5 Joint Venture 11 4.0 Conclusions & Recommendations 12 Bibliography 13 List of Figures Figure 1 - Franchise Agreement Elements 4 Figure 2 – One of the Top Recognized Brand Image on the Planet 7 Figure 3 - Image Transformation 8 Figure 4 - 4 Ps Comparisons 9 Figure 5 - International Entry Modes 10 A Brief Journey into the History of McDonalds Back in 1940 when the brothers, Dick and Mac McDonald established their first restaurant McD’s in San Bernardino,...
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...Research topic: Factors impact on the development of franchising in Vietnam. I. Introduction: 1. Problem statement: Nowadays, franchising is very popular all over the world. In Vietnam, it is not a strange type of business. Observers note that Vietnam currently has major advantages for franchise development. First, the economy has been growing steadily at 7-8 percent in recent years. Second, a young population of 83 million people is seeing living standards rise as disposable income increases. Franchising begins in Vietnam in 2000 with Trung Nguyen coffee as a pioneer, then gradually becomes popular since 2003 until now. Viet Nam now has over 70 separate franchising operations, marketing both local and overseas brands. Some famous franchisors in Vietnam after Trung Nguyen Coffee are Pho 24, which has outlets in Singapore, China and Japan; Kinh Do Bakery, owned by the large bakery; and Bon Mua (Four Seasons) Food and Drink restaurants, owned by leading Vietnamese retailer Hapro. Franchising brings benefits for both franchisee and franchisor. For franchisors, it is a good opportunity to spread their brand name in Vietnam market and overseas markets, increase turnover, save management expenses, protect and broadcast their brand name. For franchisees, they can reduce risks in business because everything is established by franchisor, franchisees will be received training, development and impart management skills, how to decorate the system as per the franchisor’s...
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