Imagine you are Graeme Beere. What strategy would you suggest he follow for the next five years?
Abrakababra have been very successful in entering into the Irish fast food market. Their successful entry and subsequent growth demonstrated how the original strategy was effective. When the Beere brothers decided to turn the sights in becoming a franchise business they demonstrated insight into where they could be most successful and leverage their strengths. "By 1997 Abrakebabra ran 11 company owned restaurants... however these company owned units were consuming the majority of the brother’s management time. Resources spent on these restaurants meant less managerial attention could be given to the running of their franchising system, which at that time represented over 80% of the company’s restaurants." (Case Study) They identified how to harness the brand and decided to change their business model to a franchiser/franchisee model and relinquish direct management of the restaurants. Where do they go from here?
If I was Graeme Beere, I'd examine the Irish market and decide whether it would be sustainable to grown the chain in Ireland. The company has 55 restaurants in the Republic currently and a major part of the firms revenue stream is the when on-boarding a new restaurant, the new franchisee must pay €50,000 to become a franchisee With the current market and also 55 stores located in Ireland we would need to understand whether or not that market was saturated and if there was room for more Abrakababra's in Ireland.
This leaves us with three option. Keep growing the Abrabkababra fast food franchise, a second possibility is to examine other markets such are the UK or finally as the suppliers, it systems, managerial expertise etc is available to Graeme possibly he could look at establishing an alternative to the fast food business and establish a chain of more up market restaurants or cafe's.
If he chose to grow in the Irish market he would need to be...
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