Business Case Study: Evaluation Of Cinnabon

1. Evaluation of Cinnabon
1.1 Background and Reliability
The Cinnabon franchise was sourced from www.franchiseopportunities.com (Appendix 1).
Cinnabon was founded in 1985 and have more than 1,100 bakeries in over 55 countries, primarily in high-traffic venues. They are the current market leader among cinnamon roll bakeries. Cinnabon has won several awards (Appendix 2), such as the World-Class Franchise award. Cinnabon is a Business Format type of Franchising that is fully integrated and fosters an ongoing relationship with the franchisee. A research report in Appendix 21 & 22 shows that Cinnabon scored 95% for its overall quality as a franchisor. In Appendix 13 & 20, Cinnabon has promised that new franchisees will receive various training and
Cinnabon also enforces that the trade dress of the franchises must be met. This form of quality control helps to reinforce Cinnabon brand image in consumers mind.
2.5 Strong Corporate Image & Management Team
Customer Relationship is important for a strong corporate image. The CEO of Cinnabon, went undercover as an employee in one of the Cinnabon franchisee to gather insights regarding front-line staff and customers service (Appendix 24). Ms Cole mentioned in the video that her front-line employees are very driven and passionate about providing excellent customer service. Thus, it is important that the front-line staff in Singapore provide good customer relationship to uphold the good impression of Cinnabon.
2.6 Right Team Players
The franchisee must be able to relate to the business and have a liking to it. One must play a part in the business and plan the amount of time to invest in the business. The key is to have a passion and drive for the franchise.
3. Analysis of
Cinnabon is also stringent with staff training and inspections on services (Appendix 13). With good customer service and high quality product, customers will be loyal to the Cinnabon brand. Cinnabon products are halal and suitable for vegetarian (Appendix 4) which means that they have 370,000 more potential customers as compared to non-halal competitors. Also, high quality packaging is used by Cinnabon to uphold a strong brand image.
3.2 Weaknesses- The franchisee is not able to grow the Cinnabon brand, own copyright and goodwill. Customer service may also vary based on the training given by the Franchisor. The Franchise fee and ongoing fee may also decrease profitability and workers will need to clock in longer hours to be profitable. It is also uncertain whether the Franchisor will fulfil all the services they promised. The franchisee will make losses if they don’t break even. Raw materials have to be bought from the direct Cinnabon supplier with