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Porcini

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Executive Summary

Porcinis a slow growing Italian restaurant in Boston. As it slow growing is looking at different avenues to expand its operation thus increasing their revenue. They have a strong brand image locally and want to include that in their marketing strategy for expansion. They have a strong differentiator from their competition in the form of attention to superior quality in their products and service. The hurdles that they face for expansion include maintaining their strong brand image and their superior quality to their products and services. As they are wanting to expand it has looked at three different expansion alternatives. The three options include company owned and operated which provides maintaining total control and brand identity, second is franchised which benefits include franchisees paying to buy outlets thus there would be no responsibility for financing new locations and easy expansion capital, third option is syndication which provides Porcini more leverage, operational control, and reduced risks as investors would pay for the build out and property but Porcini’s management would still maintain its full operational control.

Background

Porcini’s Pronto is a family-owned Italian restaurant founded in 1969 out of Boston, United States. The restaurants are mainly and strategically located on interstate highway exits, with the purpose of targeting individuals pursuing high quality services and food at a reasonable price. To avoid problems with competitors such as Olive Garden and Sbarro, Porcini locates it restaurants as far away as possible from these franchises. By the end of 2010 Porcini Pronto had 23 restaurants in the Northeastern United States, 954 employees, $94.3 million in revenues and a gross profit margin of 4% (Heskett & Luecke, 2011, p. 2).

Porcini’s main focus relays on maximizing customer’s satisfaction. To

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