Justification of the Opening New Outlets of Fast-Food

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dynamic work in terms of catering (the organization of the production of semi-finished food products, finding reliable suppliers, debugging process of implementing), business development.

The second stage is associated with debugging operation after it starts. It includes actions to improve product quality, expanding product range, personnel training and etc.

The first step is to define the concept of work. Additional point of sale about the sale of fast food can be based on the basis of stationary institutions or production hall. In the first case, cooking of the at the point of sale is not made. They just heated if necessary finalized (added to the sauce, spices, fresh vegetables, herbs and etc.), and served customers.

In the second case, the food is prepared right in the shopping pavilion. Each option has its pros and cons. In the first case, you do not have to spend money on additional equipment and time savings in the preparation of food and money for salaries of employees, because in order to warm up and serve ready-made food, do not need any special skills or extensive experience.

However, increasing the costs of transporting food (you need special containers, refrigerators, etc.), Possible supply disruptions (e.g., in case of any abnormality up to the traffic jams on the road), or, on the contrary, there may be a surplus of production (especially in the beginning It works, even when difficult to accurately predict sales). In addition, the taste of re-heated food (and even in the microwave oven) is unlikely to satisfy the palates.

The second option has the biggest flaw cooked meals directly to the point of sale takes a lot of time. Customers will have to wait a few minutes (5 to 15), while their order will not be executed. Even if they do not hurry anywhere, this expectation would not be very comfortable.

There is a third option: the absence of the base of the enterprise and its own production plant products can be purchased from wholesale suppliers. However, in this case, neither of which high-quality food it certainly is not, so this is not an option under the new concept of street food.

Tradeoffs

At the opening of several retail outlets selling fast food, be aware that a company will have to spend on equipment, including delivery and installation, but these costs are one-off. The exact list of equipment needed for the mobile fast food outlets, depending on the format of the work, but the expenses can be significant.

It is necessary to take into account the fact that there are requirements for the implementation of the commitments made at the conclusion of the franchise agreement.

Only in accordance with the head company, businessman can make his decision to open one or more outlets, as this can break the horizontal competition in the retail network of franchise companies.

Therefore, the tradeoffs here is the adoption of inconsistent with the main company decision to open sales outlets of the fast food can lead to a drop in sales of the brand in several points or the possibility of losing the business altogether.

Conclusion

The study analyzed the key factors needed to make an informed decision about the opening of an additional sales outlet for the sale of fast food, especially taken into account in view of the opening of the franchise business model of development.

References

Stevenson, W. J. (2011). Operations Management (11th ed.). New York, McGraw Hill Irwin