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Case Study: Three recent ISU graduates have grown tired of the corporate world promises of good pay and benefits. They want to start their own business and hopefully grow large enough to franchise and become independently wealthy. They now all live in West Chicago. These students are tired of not being able to find "healthy fast food." They all gained weight in college and now realize they need to get healthier for life. But fast food is everywhere and they want to try something novel. Their idea is called "The One and Only Burger Place." They will serve only healthy food all around. They will have vegetarian options, controlled portions, and farm fresh vegetables to use every day to top the burgers. Their buns will be low carb and they will only serve breads that are whole grain. Their hamburger meat will be low fat. They will feature only health beverages; no soda. They will stock vitamin waters and teas of all kinds. Plenty of salads will be available; no fries or other carbs or sweets will be offered. But you can build huge burgers with lots of vegetables on top.This business will be a bit pricey compared to the usual fast food places. But they want customers to know you come to their place to ONLY eat healthy. As a start up, they seek to find one location and to have dine-in as well as drive through and order to pick up. There is no delivery. They are open to cities in Illinois to consider as their first location.The longer term plan is to be able to open more locations after just 24 months. And the ultimate goal is to franchise and be nationwide within 7 years.
Questions:
1- What location considerations would you advise this group to take into account? Do you have any specific types of buildings or kinds of locales you would recommend. Explain your reasoning.
2- What kind of customer service will be needed to make this business compete well with competitors? Give specific examples.
3- Where can these entrepreneurs get start-up capital? Who might be interested in investing once they are up and running? Will this business have steady or sporadic cash flow?
4- Assuming this business gets off the ground and does well, what kinds of things can they do to be viewed as constantly "refreshing" the business? Be sure to list specific examples and why you think they would be effective.
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