Reference no: EM133170529
"The dream-come-true channel of restaurant is a reality nowadays": this is the favour phrase of the owners of a thematic restaurant franchise based on a legendary galactic saga.
The business gathers the next features:
+ 23 restaurants in the 5 continents. 12 are own.
+ Restaurant open-up investment of $2 millions.
+ ROI after 4 years with demonstrate profitability around 8%
+ Manpower: 800 people in the company.
+ The main attractive point for customers and employees is focus in combine good cuisine with an non-age movie universe.
The challenges for investors in new restaurants are, among other, strict procedures track, a considerable initial investment, some quality clauses in the contracts about customers' satisfaction, and hard-to-keep business sustainability during the first 2 years.
The only drawback of the business is the risk that some restaurants can change the original spirit of the own business, developing their own ideas.
As result of several rumors and sales drop, the company has decided after 20 years to create a new component in its services. That is an interactive game where the customers can participate from home and earn deals and visits to the movie scenarios. That new service will include:
- Games that the customer can play from home or in the restaurant. It is interactive with other players around the world. A community and blogs will be created.
- It is an accumulated game where the client can earn or loss points, depending on the results and consume.
- This game system involves a game development and an investment in an expensive hardware tables in the restaurants.
- Once a month, and looking for big sales peaks, one actor of the movie will be dining in one restaurant. That will be expensive but globally profitable.
- Once a year, the winners will be able to visit the saga studios with an exclusive tour.
- Due the dynamic game and the new movies, this program will need a dedicated team that will update and maintenance such the game systems, the look, and the IT resources.
From the business point of view, this project will suppose:
Benefits
- A new level of partnership with the film company who owns the rights over the saga. That will include that the name of the Restaurant Saga can appear in the next movie, reporting an uncalculated publicity for the business.
- This new challenge has a projected 5 years of ROI, depending on the number of new restaurants open.
- As result of all those measures, the Board forecasts till 20 new restaurants, consolidating the business for the next 10 years.
- This new version of the company will allow to get more information about the customer satisfaction in all aspects, hourly operations planning, and enhance the direct costs.
Risks
- Too dependency of the filmmaker, who will buy part of the shares of the company.
- A too long development project in the worst financial situation of the company.
- Negative reactions of the restaurant owner to the royalty increment before starting with the program and excess of control of their business.
Question 1: Among all the challenges that the company is facing, list all the challenges that you find and explain the top 4 that you would start with.
Question 2: List the main service features, and explain which of them is the real differentiator at time to turn the perception of the company. In other words, which of them will be the main trigger factor for the success. Do you think that the company is making the right decision? Explain the reasons.