Porcini's Inc. manages a line of 23 full-service eateries situated in close proximity to shopping malls and downtown localities in the northeastern United States. Famous for deliveringtop-notch service, Porcini's offers high-quality Italian food which uses crisp ingredients. In search of growth options, the leadership is contemplating the introduction of a new line of eateries which will be less costly, will offer restricted menus and will be called Porcini Pronto. The launched restaurants will be situated near busy interstate highway routes and exits in the area, and will offer excellent Italian food at affordable prices for tourists as well as locals. The managerial team is worried that an in-suffice customer experience at Porcini Pronto could damage and adversely affect the image for the grounded and well-liked company brand. The team enquires of the marketing VP to draw on the idea and construct a functional plan for the planned eateries. The VP must also assess three different growth plans before the managerial team promises anything to the project. If Porcini's goes ahead with the plan of introducing and controlling the new line of eateries, the company will be in charge completely of the restaurant activities and customer experience; however the development and expansion will span over a long period of time. Franchising and syndication are two other choices that will lead to quicker growth possibilities but will come with the threat of probable loss of control of the brand. The VP mis to assess and review the options and make his final suggestion.
Examine the reasons how Porcini’s has maintained high product and service quality? What are Porcini’s plan for maintain this quality for its Pronto concept?
What does the proposed customer questionnaire system Pronto is planning to use tell about their approach to quality? What are the strengths and weakness of this questionnaire? What are your suggestions to improve it?
What is the sustainable completive advantage (cannot be copied by competition), if any, Pronto has?
The case identifies three options. Discuss the advantages and disadvantages of each option. What option would you recommend (Hint: use NPV and ROI for each option)?
What should company do?