Swot Analysis

Topics: Franchising, Pennsylvania, Pretzel Pages: 6 (1461 words) Published: December 5, 2011
Auntie Anne's, Inc.
Company Overview

Company Overview

Auntie Anne's, Inc., the world’s largest hand-rolled soft pretzel franchisor manufactures and sells pretzels. Its products include pretzel dogs, gourmet bread sticks, pizza knots, pretzel kits, mixes, twists, and baked pretzels, as well as various drinks and dips. The company was founded in 1988 by Anne and Jonas Beiler and is headquartered in Lancaster, Pennsylvania. . Auntie Anne’s, Inc was purchased in 2005 from Anne and Jonas Beiler by Sam Beiler, the company’s president and chief executive officer. The first franchise was opened in 1989 in Harrisburg, Pennsylvania. (Auntie Anne’s, 2010) Today the company supports over 300 franchisees, with more than 1,050 locations worldwide. The company recorded record revenues in 2008 of 333.4 million dollars, an increase of 8% over 2007. (Wikipedia, 2010)


|Strengths |Weaknesses | |Socially and Ethically responsible |Franchisee Startup Costs | |Franchising System |Franchise Labor | |Strong Market Position |Saturated U.S. Market | |Opportunities |Threats | |Expanding Operations Concept |Growing competition | |Growth in International Market |Economic recovery | |Opening Operations in sports arenas |Unfavorable Franchise Legislation |

Socially and Ethically Responsible
Auntie Anne’s founders started the company to support there charitable contributions. Mr. and Mrs. Beiler started the company in an effort to support a counseling center. The company has expanded its philanthropy along with its expanding business. Auntie Anne’s has given millions of dollars to the Children’s Miracle network. Auntie Anne’s has helped raise more than $3 million dollars for Children’s Miracle Network affiliated hospitals across the country. (Auntie Anne’s, 2010) National Pretzel Day, April 26, is one of Auntie Anne’s largest single-day event fundraiser where participating stores donate a percentage of sales to Children’s Miracle Network. Auntie Anne’s also raises money through corporate payroll deductions and an annual golf tournament. (Children’s Miracle Network, 2010) Auntie Anne’s also provides employees with educational scholarships and home down-payment gifts. There efforts in this arena as well as being a community oriented business serve to foster positive attitudes amongst employees of the company. This gives them a competitive advantage. Franchising System

Auntie Anne’s franchising system has fostered exponential growth of the company. Franchise Business review ranks the company number six in its top 50 franchises for 2010. Each year, Franchise Business Review surveys thousands of franchise owners. The top 50 are then rated among the very best opportunities by their own franchisees. (Top 50 Franchises - Large Systems, 2010) Entrepreneur Magazine 500 ranks Auntie Anne’s as follows for 2010; Franchise 500 ranking #50, Fastest growing franchises #59, Americas top global franchises #50. Auntie Anne’s has received the World-Class Franchise® honor (the most prestigious award in franchising) for the past four years. Auntie Anne’s demonstrates a strong franchising system which includes ongoing support to its franchisees such as; newsletters, meetings, grand opening, internet, toll-free phone line, field...
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