Pronto 
Background Founded in 1969 by the Ventola Family, Porcini’s Inc. flourished in Boston’s North End, and then expanded to 23 other locations in the region. Porcini’s distinct Italian family-feel and consistent standard of high quality service and food at each full service chain restaurant granted Porcini’s staying power for many years, even thriving in the face of recession. Their fresh ingredients and artful presentations differentiated them from other Italian food chains, and Porcini’s was continuously celebrated by regional publications.
In 2010, Porcini’s owners and investors were looking for a way to leverage their successful brand, which led to the inception of Porcini’s Pronto. Porcini’s Pronto key features include locations along interstate highway exits, while maintaining their food and service standards, although it will feature an abbreviated menu. Given the proper execution, this fast food and dine in chain concept can yield exponential growth and establish brand recognition in the long run. The owners are considering franchising, syndication, or remaining company operated at each Porcini’s Pronto; each method of expansion has their respective pros and cons.
Problem Statement
What is the best method of expansion for Porcini’s Inc. to ensure growth of the business 5% annually through 2018, that will still allow them to keep their core standards?
Analysis
With branching off into this new venture, Porcini’s will have to evaluate the competition in the various restaurant segments. The restaurant industry in the U.S consist of three segments:
First segment is Fast food restaurants. Fast food restaurants consist of snack bars, cafeterias, buffets and restaurants where customers pay for food before it is consumed. There are over 300,000 outlets in this segment generating around $184 billion in revenues with a profit margin of 3.5%. This type of restaurant is likely used throughout the USA due to our fast paced lifestyles. It is the easiest way to get a
In 2010, Porcini’s owners and investors were looking for a way to leverage their successful brand, which led to the inception of Porcini’s Pronto. Porcini’s Pronto key features include locations along interstate highway exits, while maintaining their food and service standards, although it will feature an abbreviated menu. Given the proper execution, this fast food and dine in chain concept can yield exponential growth and establish brand recognition in the long run. The owners are considering franchising, syndication, or remaining company operated at each Porcini’s Pronto; each method of expansion has their respective pros and cons.
Problem Statement
What is the best method of expansion for Porcini’s Inc. to ensure growth of the business 5% annually through 2018, that will still allow them to keep their core standards?
Analysis
With branching off into this new venture, Porcini’s will have to evaluate the competition in the various restaurant segments. The restaurant industry in the U.S consist of three segments:
First segment is Fast food restaurants. Fast food restaurants consist of snack bars, cafeterias, buffets and restaurants where customers pay for food before it is consumed. There are over 300,000 outlets in this segment generating around $184 billion in revenues with a profit margin of 3.5%. This type of restaurant is likely used throughout the USA due to our fast paced lifestyles. It is the easiest way to get a