Sample Essay Paper on Franchise business

Franchise Business

Introduction

This paper will look at a franchise that is relatively new in the market: with the standard requirements that it has been in the market for less than ten years and it is located in less than 25 different geographical destinations. The paper will also cover the company’s marketing mix. This paper will look at “Taste of Mediterranean” chain of restaurants in Canada. The first restaurant was opened up in the year 2004 in down town Toronto Front Street. The major goal of the facility was the provision of Middle Eastern and Greek organic foods. The population of Canada is composed primarily of Caucasian French and English speaking individuals. However, with time, the country has experienced an influx of migrants from the Middle East and there are those individuals who might not be of Middle Eastern origin, but enjoy their foods. Before settling on Canada as a great location for a start of the franchise, Sam Hussein had considered over 3,000 locations worldwide. Mr Hussein finally carried out a feasibility analysis to find out whether the business would be profitable if he set it up in Canada. He also liked the country and felt that it would be a good fit for the restaurant that would further develop in to a chain of restaurants all over the world.

Taste of Mediterranean marketing mix

Taste of Mediterranean’s first location was in downtown Toronto with a capital of over $ 29,900 and equipment. The restaurant got many clients which motivated the CEO to come up with the idea of franchising. There are many businessmen and businesses that had offered to buy out the restaurant probably because the restaurant was doing so well. Initially, the restaurant served Greek food exclusively, but then decided to include Mediterranean themed food which was also a big hit among consumers. One of the most popular meals that the Taste of Mediterranean restaurant customers like and only is the Shawarma dish which has become quite popular in Canada.

The management thought it was a good idea to open up Taste of Mediterranean kiosks and food courts in different locations which would serve as an “introduction” outlet for the chain of restaurants in new locations. Currently, Taste of Mediterranean has outlets in locations such as Alberta, Manitoba, Newfoundland and New Brunswick.  There are several outlets in the different provinces, and if the restaurant continues to grow in the same trend as it has been growing, the franchise units in the different areas should remain fully functional (Taste of Mediterranean, 2014).

Several Greek and Mediterranean based items are available on Taste of Mediterranean’s menu. So far, the most popular and dishes include Shawarma and the Greek Gyro (Taste of Mediterranean, 2014). The restaurant offers a wide range of salads from which the clients can choose from. The restaurant also offers a variety of side platters, salads and sandwiches from which clients can choose from. The restaurant also has prices of their products available on their website which is especially convenient for the young target market and they can place their orders through the internet.

 

Organization of Taste of Mediterranean’s business

Taste of Mediterranean has a high growth rate since the time the restaurant opened shop in 2004. Currently, the franchise is planning to open up several franchises in Both Canada and the USA. The restaurant has already opened up franchise outlets in the states of New Hampshire and Connecticut. By the end of this year (2014), Taste of Mediterranean hopes to have opened up four additional franchise outlets in the Unites States. Sam Hussein is the Chief executive officer of the restaurant, and he has the major say in decisions that affect the firm, and the number and location of the franchises to be opened up in the near future. Since 2004, the sales recorded by Taste of Mediterranean have continued to increase which has contributed to the capital that has been used in financing the different franchise outlets that have come up throughout the country.

SWOT for Taste of Mediterranean

Strengths

Taste of Mediterranean has been able to cater to a market niche that has been untapped which has given the restaurant an upper hand. The restaurant does outside catering and deliveries to individuals that make orders. This presents an opportunity to grow even further. Individuals that might not have heard about the restaurant can get to hear about it from attending events catered for by the company. The Taste of Mediterranean restaurant has a website which details its products in terms of items used; such as for the different sandwiches, and the different amount of calories in each of the different sandwiches. This provides necessary information for individuals that are concerned about their weight or those that have health conditions that require them to watch their diet such as diabetics.

Weaknesses

The restaurant franchise business started out with just a little over $ 29,800 which means that other interested parties can easily become as popular since the initial capital outlay can be easily brought together (Briere, 2014).

Opportunities

The restaurant has the advantage of being able to win a high number of clients because in many areas in Canada, it is a first and therefore will be able to associate with the particular types of foods that it serves, which are unique in comparison to normal restaurants in the market. The restaurant should aggressively market its products though social media to interact with current consumers and increase the current numbers of its clients, grow its brand and increase profit margin (Briere, 2014).

Threats

There is the likelihood that opening up of a new outlet by competitors could be bad for Taste of Mediterranean’s business since it would reduce its revenue earned through taking up its clients. This would also lead to a reduction of profit margins earned by the restaurant (Tuttle, 2012).

Recommendation

The chain of restaurants of the Taste of Mediterranean brand has the potential to grow regionally and internationally with high success. The restaurant should open up a new outlet in Ottawa so as to cater to the individuals from this area. In several years to come, it is expected that there is the likelihood that opening up of a new outlet by competitors could be bad for Taste of Mediterranean’s business since it would reduce its revenue earned through taking up its clients. This would also lead to a reduction of profit margins earned by the restaurant.

With time, the Taste of Mediterranean franchise will have opened up over twenty new locations in both Canada and in the United States. This growth in business will in turn contribute to higher income and profit margins.

 

 

References

Briere, L. (2014). 14 restaurant marketing tips for success. Retrieved November 9, 2014

from

http://vision-advertising.com/restaurant-marketing-tips-success-online-and-in-the-restaurant/

Taste of Mediterranean. (2014). Our story. Retrieved November 9, 2014 from

http://www.tasteofmediterranean.ca/story/

Tuttle, B. (2012). Big Chain Restaurant Trends Hot Menu Items, Hot marketing

strategies.

Retrieved November 9, 2014 from http://business.time.com/2012/06/11/big-chain-restaurant-trends-hot-menu-items-hot-marketing-strategies/