Boston Chicken, Inc.Draft
BOSTON CHICKEN, INC.:
CASE STUDY AND ANALYSIS
1. Assess Boston Chicken’s business strategy. What are its critical success factors and risks?
Boston Chicken Inc (abbreviate as BCI as follow). is chain of fast food restaurants, and also in the business of take-out home cooked food. Boston Chicken restaurants mainly sell rotisserie-cooked chicken, fresh vegetables, salads and other side dishes available for take-out.
Because Boston Chicken is fast food restaurants chain, its strategy is also simple and straight. Its KSFs (Key Successful Factors) are listed as below:
○1. Cheap and Fast. The BCI originally sell meals cost less than $5 per person, and it continuously to sell meal at very low price to make the product attractive. The fast-service is also emphasized. 62 stores in 18 states had drive-thru windows in 1994 and 65 more were planned to build in 1995, which means 70% of the stores would be converted to drive-thru.
○2. Quality and Service. BCI products are chosen for its fresh, clean and quality, especially by those dual-income families who don’t have enough time to have a quality lunch.
○3. Franchise expanding. The company’s expanding is a area developer franchise model, which means largely massive expanding. The franchise fee is a main resource of the company’s revenue. But this factor must base on the stable profitability and sustainability of all three kind of restaurants —— company-owned, financed area develops, and non-financed area develops and others.
○4. Technical and Computer bases is a another special advantage of BCI. The company used certain software to get the costumers feedback immediately. And between the subsidiaries’ the software helps interorganizational transfer, which means the internal information is exchange on time.
According to the KSFs, the Boston Chicken, Inc. has 4 risks because of its aggressive expand:
1. Shortage of experienced personnel and company culture missing. (Affect○1○2, the
CASE STUDY AND ANALYSIS
1. Assess Boston Chicken’s business strategy. What are its critical success factors and risks?
Boston Chicken Inc (abbreviate as BCI as follow). is chain of fast food restaurants, and also in the business of take-out home cooked food. Boston Chicken restaurants mainly sell rotisserie-cooked chicken, fresh vegetables, salads and other side dishes available for take-out.
Because Boston Chicken is fast food restaurants chain, its strategy is also simple and straight. Its KSFs (Key Successful Factors) are listed as below:
○1. Cheap and Fast. The BCI originally sell meals cost less than $5 per person, and it continuously to sell meal at very low price to make the product attractive. The fast-service is also emphasized. 62 stores in 18 states had drive-thru windows in 1994 and 65 more were planned to build in 1995, which means 70% of the stores would be converted to drive-thru.
○2. Quality and Service. BCI products are chosen for its fresh, clean and quality, especially by those dual-income families who don’t have enough time to have a quality lunch.
○3. Franchise expanding. The company’s expanding is a area developer franchise model, which means largely massive expanding. The franchise fee is a main resource of the company’s revenue. But this factor must base on the stable profitability and sustainability of all three kind of restaurants —— company-owned, financed area develops, and non-financed area develops and others.
○4. Technical and Computer bases is a another special advantage of BCI. The company used certain software to get the costumers feedback immediately. And between the subsidiaries’ the software helps interorganizational transfer, which means the internal information is exchange on time.
According to the KSFs, the Boston Chicken, Inc. has 4 risks because of its aggressive expand:
1. Shortage of experienced personnel and company culture missing. (Affect○1○2, the