Industry Value Chain
The first casual restaurant has been known to be the fastest growing industry in the restaurant industry. This has been realized for the past decade and even in the year 2012. Even though the first casual restaurants are smaller in the general market than, the casual dining segment and fast food, the fast-casual restaurants are blasting onto the picture and acquiring popularity each year. Unlike the traditional fast food restaurants, the market for the fast-casual restaurants is less concentration and the permit opportunities thrive for the industrialist. The fast-casual restaurants do not offer complete table services but offer a higher quality of food and services as compared to the traditional restaurants.
The fast-casual restaurants are expanding very fast and their sales scale reached 23 billion dollars in 2010 which shows that the industry had experienced a 30 percent increment since 2006. The 580 billion dollars restaurant business had 600 fast casual restaurants in 2009. The fast-casual restaurants have experienced increasing strength in the restaurant industries because consumers have become sharper with their discretionary money, the customers sought to spend their dollars on healthier but relatively expensive restaurants. Sales at fast-casual restaurants are high during lunch time.
The future appears brighter for fast casual restaurants. A research completed in the first three months of 2011 reveals that the fast-casual restaurants have witnessed higher sales over the preceding year and those who operate such restaurants are planning to increase on their capital expenditures on new locations and renovations. The operators are also planning to increase the number of employees so as to easily meet the demand. An improvement in consumer spending and confidence will also give the restaurants operators’ chances to lastly pass along the rising prices of commodities.
There are several franchise opportunities to choose from and the market also has a wonderful amount of space for new entrepreneurs. Franchises who offer higher and healthier quality foodstuff like burgers and pizzas are in great competition with pita shops and salad bars. Fast-casual restaurants found in Mexico and Asia is witnessing double-digit increment in sales. Small franchises offer novelties like the homemade sodas. Consumers are becoming more discriminative and the economy continues to improve with the fast-casual restaurants being prepared for profits.
The recommendations that will be given to Mr. Empanada restaurant so that it sells more franchises instead of more food in its restaurants is to ensure that the products are produced in a more innovative way by considering the most current technologies. The ever-changing technology and the ever-growing markets are perfect for a franchise business. This is so because demand always surpasses supply and this will also enable the maintenance of the price levels and protecting the technology limits the effects imposed by competition. The restaurant should also have a strong brand name and must work very hard to have a good reputation so that it gets a stronger financial model.
This is because buyers will always part with a large amount of money and will always be positive to the products as long as they receive trusted products and services. In short, the company should work towards seeking out a franchise with the most current technology, novel protected products, and services, a strong reputation and brand.
An ideal franchise is one who is able to assign responsibilities, have a quick and crisp mind to be able to identify best opportunities, should be one who is willing to accept advice from other people and should pose strong interpersonal skill to be able to interact with the management and customers at the franchisor headquarters. An ideal franchiser will be one who is ambitious, tenacious with professional integrity. Such a franchiser has enthusiasm and determination to succeed which is supported by an excellent work ethic. The other essential feature of an ideal franchiser is one who has good communication skills and also an admirable persona.
Market research does not come so naturally. It becomes a big red flag when one outlines the multi-billion dollars of the size of the market but does not evidently clear out a plan for how the idea met the unmet needs of the market. Market research can prove invaluable in determining an individual’s idea’s potential. Mr. Empanada Franchising Corporation should find qualified franchisees and market the concept to the best audience through web research, federal, state agencies and periodicals and many others.
The manager of Mr. Empanada Company should also get information from books in the library or go online for some few hours and this will enable the management to completely understand their market. The type of information the management wants to get will depend on the kind of products they intend to sell and also the overall research and goals of the company. The management can also use research to conclude potential franchisees and market so as to size up the competition or to test the positioning and usefulness of their products.
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