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Copy of Porcini's Pronto: "Great Italian Cuisine Without The Wait!"

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parth banu

on 12 September 2013

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Transcript of Copy of Porcini's Pronto: "Great Italian Cuisine Without The Wait!"

MBA Capstone Assessment
Porcini's Pronto:
Great Italian cuisine without the wait
Kevin Mullaney, Amit Sinha, Candace Stewart
Company Vision
Limited selection of Porcini’s standard menu

Moderate prices

Not jeopardizing the company's reputation for good food or high service standards

Meet or exceed the company’s 6% hurdle rate
Options

Staying the Same
Franchising
Syndication
Company Owned

Staying The Same
“Why don’t we stick to what we have
been doing so successfully?”

Not an Option - INNOVATE or become OBSOLETE

Complacent Companies
Blackberry
Blockbuster
MySpace
Yahoo

INNOVATING Companies
Apple Computers
Facebook
Netflix
Google


Analysis of Franchising

Strengths
Dominant Strategy
Construction cost and site acquisition (leasing) shifted to franchisees
Growth with Less Capital
Infusion of Energy and Entrepreneurial mindsets (James, 1)
Established Network
Weaknesses
Not a household name
Low fees and royalties
Failure of Franchising standards
Inconsistentency with company’s vision

Opportunities
Reach a diffrent markets segment
Operations would occur more rapidly
Brand Awareness increases
Company would be able to shift its attention and limited capital from restaurant-level operations to system wide marketing and brand building
Threats
Established Restaurants
Destroying Porcini's reputation
Quality of food and services
Lack of Well-rounded Entrepreneurs for Porcini’s


Financial Analysis

Look into other companies similar to what they are trying to do, and that have the same business model as Porcini’s.
Financial Projection of what it would look like for Porcini’s if we were to do a franchise
Want to do companies that have failed at franchises on the basis of not up-keeping their reputation
Olive Garden
Crackle Barrell, http://investor.crackerbarrel.com/financials.cfm,
All Cracker Barrel Old Country Store locations are company-owned and operated. We do not franchise any of these stores
(Limit your risk by dealing with only experienced restaurant operators)

Analysis of Syndication

Strengths
Full operational control
Shift property ownership to investors
Limit capital outlays
Bring prime sites along the highway system
If the land is turned into a cash-generating business, Porcini’s will be more successful in getting the sites that they want
Recycling capital into another syndication

Weaknesses
Substantial transactional costs (investment banker, lawyers, closing costs, etc.)
Transaction costs alone can equal 6% of the value of the property

Opportunities
Expand operations rapidly
Career advancement

Threats
Not enough investors (brand name)
Un-balance of spending

Financial Analysis

Refer to previous Financial Slide

Company Owned/Operated

Strengths
Complete Control
Maximize Vision
Expand at own pace
Weaknesses
Company buys land and builds facilities
Financially straining – less support
Opportunities
Consistent or streamlined growth
Threats
More risk (more to lose)
Competing against established firms

Proposal

Do not want to Jeopardized the company’s reputation for good food
High service Standards
Break into a Market occupied by established competitors

What We Propose

Run In Airport (Boston/new England Airport)

Airport Retail Concept

Two testing sites
Logan Airport (Boston, MA)
Bradley International (Windsor Locks, Connecticut).
Limited Menu
Offering Fast Service
High Quality Food.

Analysis

Location Analysis
Two locations
Logan International Airport (Boston, MA)
Bradley International Airport (Windsor Locks, CT)
Current Customer Pool
Located in major terminal
Location provides consumers with less options

Customer Research
Dinners ($9.99 - $19.99)
Lunches ($7.99 - $15.99)
Restrooms already located in airport
Fast, efficient service (maximum of 30 minutes for lunch and 45 minutes for dinner)

Competition
Any restaurant located in the airport, moreover, any restaurant in the terminal
Wolfgang Puck, Legal Sea Foods, Dine Boston Restaurant and Bar (Logan)

Airport Retail SWOT

Strengths
Maintain prices |Quick service
Consistent with company vision
Limited options for customers
Weakness
Airport Policies and regulations
Opportunities
National recognition |Diverse audience
Maintain Status
Threats
Restaurants in airport

Operating Strategy

The Right People
“Mrs. Fields kind of people”
Myers Briggs Personality Test
Team oriented, outgoing, “customer comes first” mentality
Competitive Pay
Opportunities for growth
Training and indoctrination
Quality as Customers See It
Technologically innovative (Tablets)
Value, efficiency, speed, cleanliness

Financial Analysis

Final Analysis

We choose Airport Restaurants over interstates because:
People are locked into location
No investing, just renting
Can reach more diverse customer (spread brand recognition)
Exit strategy less costly
Offer more competitive price
(Financial stuff)
Parent Company
Full transcript