CHAPTER 8: LOCATION DESIGN
Video Case: Where to Place Hard Rock's Next Cafe
1. Read the case study that follows.
2. View the video tour of Hard Rock Cafe that addresses this issue. 3. If you wish to have further background, reread the material in this chapter of the text. 4. Answer the questions about the case, and if your instructor wishes, e-mail your answers to him or her. Some people would say that Oliver Munday, Hard Rock’s vice president for cafe development, has the best job in the world. Travel the world to pick a country for Hard Rock’s next cafe, select a city, and find the ideal site. It’s true that selecting a site involves lots of incognito walking around, visiting nice restaurants, and drinking in bars. But that is not where Mr. Munday’s work begins, nor where it ends. At the front end, selecting the country and city first involves a great deal of research. At the back end, Munday not only picks the final site and negotiates the deal, but then works with architects and planners and stays with the project through the opening and first year’s sales. Munday is currently looking heavily into global expansion in Europe, Latin America, and Asia. "We’ve got to look at political risk, currency, and social norms—how does our brand fit into the country," he says. Once the country is selected, Munday focuses on the region and city. His research checklist is extensive. Hard Rock’s Standard Market Report (for off-shore sites)
A. Demographics (local, city, region, SMSA), with trend analysis 1. Population of area
2. Economic indicators
B. Visitor market, with trend analysis
1. Tourists/business visitors
3. Convention center
(a) age of airport,
(b) no. of passengers
(d) direct flights
D. Restaurants and nightclubs (a selection in key target market...
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