Strategy Recommendations for Franchise Opportunities for Mr. Empanada - Research Paper Example

Module Strategy Recommendations for Franchise Opportunities for Mr. Empanada Medium sized restaurants such as Mr. Empanada have to deal with different challenges in an effort to remain relevant in a world that is filled with famous giant franchises such as ‘Burger King’, and ‘McDonald’s’. Some of the challenges they face are issues that confront both small sized as well as larger restaurant franchises. However, others are exclusive to average sized outfits in the restaurant industry. Current Issues Some of the common challenges faced by Mr. Empanada include reducing operational costs while also drawing new customers (Mr. Empanada). The restaurant may not have the option often enjoyed by larger franchises of lowering the prices of offerings. Another challenge is in handling business in such a way that the restaurant remains productive even during quiet times (Mr. Empanada Franchise Corporation). Often, restaurants make a lot of profit during busy times but face challenges when there are not many customers. The Mr. Empanada also has to find more advanced ways of advertising is products in a way in which it will be able to reach distant customers. Another challenge lies in finding ways to retain current consumers. The Mr. Empanada restaurant creates products that are unique in taste as well as fare. To maintain its reputation as the best producer of Empanadas, the restaurant’s owners have to find ways of entering into agreements with the suppliers who provide them with the best raw materials. Signage To remain relevant, Mr. Empanada also has to use the latest technology in order to retain customers who are impressed with the quick and efficient service. Good signage is one way of achieving this because it can increase a business’s opportunity for success. For instance, Mr. Empanada can utilize digital menu boards in its operations. Digital menu boards ensure that employees constantly have access to the latest information. This means that they will be able to improve productivity, efficiency, and patron satisfaction. Digital menu boards are easy to customize and can even be utilized as training devices because they can assist prospective workers in learning how to gather pertinent information relating to the restaurants and its assorted operations. Digital menu boards can also assist customers to observe their waiting times. It is a known fact that customers are often less frustrated about waiting for long periods of time when they have distractions. Customers can also learn about the contents of their orders through the digital menu boards. These implements will not only reduce the time in which people order, but also reduce the number of irritated clients that the staff has to handle. Location Location is quite important for any restaurant. Good food or even excellent service may not be enough to bring about the success of a restaurant if it is located in a bad neighborhood or area with no traffic. The best location is one that is easily accessible. Mr. Empanada, which is seeking to expand into new regions, should consider accessible sites that also do not require a lot of capital. Another option could be leasing space. In such cases, it is best to use the services of lawyers and consultants who understand the details of the fine print. Brokers should also be consulted on the best sites to situate a restaurant business. The management should also investigate the traffic in the selected area, as well as their dining habits. To attract new customers, Mr. Empanada can invest in new locations that have potential customers such as working people or college students who often return home or purchase food from supermarkets during lunchtime. Shopping malls Mall culture has grown to be perceived as an avenue for big business, as malls have been transformed into multi-storied sophisticated structures that contain diverse shops. There are some reasons why investing in a branch that is ensconced within a shopping mall could be beneficial for Mr. Empanada. One of the most critical is that customers who come to shop in other stores for various products will be attracted to the restaurant. Most shopping malls today have different fast food restaurants. Moreover, this reality also brings a lot of competition for the individual restaurants. If it were to invest in a branch within a mall, the Mr. Empanada restaurant would have to invest on drastically improving its ambience so that it attracts more clients than most of the other fast food restaurants. Hospitals Restaurants such as McDonald’s have already established branches in various hospitals in the United States. This trend, however, has recently been questioned by health specialists who claim that installing fast food restaurants which do not prepare the healthiest of foods for people whose health is already compromised defeats the very purpose of hospitals. This means that, while hospitals are a perfect location for the establishment of new Mr. Empanada branches, it is important for the restaurant to consider starting the provision of foods that have at least 80% of salads on the menu. From the example of McDonald’s, which started providing healthier for its clients in hospital settings, such provisions have a ready market within any healthcare facility. Colleges in Tampa One way through which Mr. Empanada can gain new customers is by establishing operations within college campuses such as in Tampa. Apart from being regular customers within the campus, college students also tend to remain as loyal clients even when they move into the workplace. Students are good customers because they are often pre-occupied with their studies and extracurricular activities and may not have the time or inclination to cook their own food (Wansoo and Heesup 220). They appreciate the quick service and convenience of restaurants such as Mr. Empanada. Moreover, if it chose to invest within campuses, it is likely that the restaurant would be given a selected spot in which to establish operations. While some colleges and universities allow the fast food chains to pick their preferred places, most of them usually have planned where they wish to have different structures. Moreover, the investment in colleges is usually has merit because the restaurant can benefit from attracting lifelong clients. Wal-Mart. Wal-Mart is similar to shopping malls in its provision of visibility; however, it attracts more clients than shopping mall because it offers a wide selection of products and services at low prices. Wal-Mart draws customers who value its efficient customer service, relaxed atmosphere, and cheaper prices. This is actually quite a good option for a restaurant such as Mr. Empanada which is seeking to reach for new customers while also implementing cost effective measures. Interior Re-design. According to a research documented by Brawley, 50 percent of the time, customers will enter restaurants in pairs, while 20% will go in groups (Brawley 57). Some 30% of customers go to restaurants alone. This means that restaurants have to find ways of improving their decor so as to make customers who come with others feel comfortable. Most of Mr. Empanada’s branches provide a cozy atmosphere for customers. However, the restaurant can still improve its offerings. Density of the clientele. To draw more customers and retain the loyal ones over long periods of time, Mr. Empanada can create a layout plan that ensures the comfort of all eating customers. Method of service The restaurant’s executives could also plan layouts in such a way that there is less distance between different seating tables. Lighting The lighting within each of the restaurant’s branches could also be tailored to the existing customers (Wansoo and Heesup 221). There are times when there may be serious customers who ought to be treated to subtler shades. Moreover, a relaxed and casual atmosphere calls for brighter lighting. Food truck industry and/or Alliance to offer a mobile Mr. Empanada restaurant. The Mr. Empanada restaurant could also invest in a food truck which provides mobile services for clients (Mathews and DeBolt 19). This is a sure way to draw more clients while providing more visibility for the Mr. Empanada brand. Food trucks are efficient because they go to where the clients are, while also providing hot meals of the customer’s preference. Moreover, they have some expenses such as maintenance costs. Works Cited Brawley, Will. Restaurant Owners Uncorked: Twenty Owners Share Their Recipes for Success. New York: CreateSpace Independent Publishing Platform, 2011. Print. Mathews, Joe. & Don, DeBolt. Street Smart Franchising. New York: Entrepreneur Press, 2006. Print. Mr. Empanada Franchise Corporation. “Case Study Competition.” University of Tampa. Mr. Empanada. “Franchise Corporation” 2013. Web. 08 November 2013. http://www.mrempanadafranchisecorp.com/ Wansoo, Kim, & Han, Heesup. “Determinants of Restaurant Customers' Loyalty Intentions: A Mediating Effect of Relationship Quality.” J. Qual. Assur. Hosp. Tour. 9.3 (2008): 219- 239. Read More