Go Sushi Case Study

Topics: Fast food, Strategic management, Franchising Pages: 11 (2995 words) Published: October 20, 2013

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 improve buying power and improving HR management through training to current under-performing managers. Long-term recommendations were then made including the expansion in to regional areas to capitalize on a new market, merging with a beverage company to increase knowledge, capital and customer throughput, creating a system to ensure the correct selection of franchise purchasers and the expansion to a foreign market to increase profit, growth and business knowledge

Table of Contents

1.0 Introduction

This report examines the issues facing ‘Go Sushi’, a small, franchised enterprise in the take away food industry. The report conducts a situational analysis of the business including its strengths, weaknesses, opportunities and threats then discusses strategies to assist with future business expansion.

The information in this report was gathered from research into the take away food industry and by conducting an interview with Luigi Bertolacci, former owner and innovator of Go Sushi. 2.0 Business Profile & Industry Information

2.1 Company History

Go Sushi was one sushi train in 1999, then Expanded into four before Mr Bertolacci re-wrote the business model in 2006 to increase profitability. This change consisted of changing the business from a sushi train to a takeaway cabinet sushi shop focused on healthy food in the take away food industry. By 2008 there were 32 franchises in Australia. 2.2 Important Developments for Go Sushi

Important developments for Go Sushi included putting sushi-making machines in the store because at the time people wanted to see that the sushi was hand made. By putting sushi robots at the front of house in front of the display was another development that drew in customers, as this was the authentic Japanese style. Changing to cabinet sushi allowed the franchises to break the barrier in to shopping centers and by putting a western touch on the Asian food, the target market was increased. At the time when people...
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