Go Sushi Case Study
Executive Summary
This report analyzed and exposed the issues facing Go Sushi, a small franchised retail enterprise in the take away food industry. The information received is based on interviews with owner and innovator Luigi Bertolacci, and research in to the external and internal environment related to Go Sushi and the take away food industry.
Go Sushi first opened as a sushi train in 1999 and a further 4 trains were opened in the next 6 years. In 2006 the company’s business model was re-written and the sushi trains were transformed in to cabinet sushi take away shops, then by 2010 there were 32 franchises Australia wide.
The key business issues and challenges were then identified. It was found that most of the challenges of Go Sushi was related to franchisee issues including the taking on of franchisees that did not have adequate business skills, being to generous with franchisees by taking them on when they may not have sufficient capital. These issues led to the franchisor sacrificing royalties and assuming rent to prevent the loss of stores and keep the growth rate up. The other major issue identified is the lack of expansion into regional areas and in to a foreign market.
The external environment was analyzed and it was found that there is still potential growth in the take away food industry, particularly when the franchise is health related as healthy take away is becoming more popular. It was also identified that there is some competitive advantage for Go Sushi due to the current hype of take away sushi popularity.
The internal environment was analyzed and it was found that there are issues relating to management and store operation from a managers perspective. Although the company has good physical and organizational resources, the human resources need to be improved to gain the maximum potential of the company.
Short-term recommendations were made including the development of a relationship with a nation wide supplier to
This report analyzed and exposed the issues facing Go Sushi, a small franchised retail enterprise in the take away food industry. The information received is based on interviews with owner and innovator Luigi Bertolacci, and research in to the external and internal environment related to Go Sushi and the take away food industry.
Go Sushi first opened as a sushi train in 1999 and a further 4 trains were opened in the next 6 years. In 2006 the company’s business model was re-written and the sushi trains were transformed in to cabinet sushi take away shops, then by 2010 there were 32 franchises Australia wide.
The key business issues and challenges were then identified. It was found that most of the challenges of Go Sushi was related to franchisee issues including the taking on of franchisees that did not have adequate business skills, being to generous with franchisees by taking them on when they may not have sufficient capital. These issues led to the franchisor sacrificing royalties and assuming rent to prevent the loss of stores and keep the growth rate up. The other major issue identified is the lack of expansion into regional areas and in to a foreign market.
The external environment was analyzed and it was found that there is still potential growth in the take away food industry, particularly when the franchise is health related as healthy take away is becoming more popular. It was also identified that there is some competitive advantage for Go Sushi due to the current hype of take away sushi popularity.
The internal environment was analyzed and it was found that there are issues relating to management and store operation from a managers perspective. Although the company has good physical and organizational resources, the human resources need to be improved to gain the maximum potential of the company.
Short-term recommendations were made including the development of a relationship with a nation wide supplier to