Executive Summary
Porcini’s restaurants an Italian specialty restaurant chain located in Boston Massachusetts, owns and operates 23 restaurants in the northeastern part of the United States and employs over 900 employees. The company’s challenge is to expand its restaurant chain working within its limited resources and brand recognition. Complicated with a saturating domestic restaurant market and major brands currently in the market creates a formidable challenge for Porcini’s Pronto operations.
The problem was to determine the appropriate course of action for the company to take between franchising and syndication. Considering using a SWOT at first glance the decision to analyze the different methodologies using Porter’s Five Forces of Competition gave a more robust analysis within the restaurant industry.
The choice of franchising was determined the logical choice over syndication for the company from a financial stand point and a quicker way to market to vie with its major competitors. Franchising offered a broader reach with fewer fiscals risks that will help to compete with brands such as Olive garden and Pizza Hut.
Background Porcini’s Inc. started out in 1969 as a family owned Italian-American restaurant in the Boston Massachusetts neighborhood known as the North End. The company two decades later sold controlling interest to a group of investors the company employs over 900 people and operates in 23 locations. Porcini’s is financially stable.
The Porcini’s advantage is its ability to deliver high quality food and superior service uniformly at each of its locations. The James Beard award-winning chef Mariana Molise is responsible for creating gourmet quality meals with her flash cooking techniques at moderate prices. Porcini only uses fresh ingredients making each dish from scratch and displays artful presentations to each of its dishes. However, the cost of the average entrée is only 2 to 3 dollars above Olive Garden its closest
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