CASE
Ally now has won three Michelin Stars and has become the first three-star restaurant in North America. The presentation of the Michelin Award goes to those ambitious chefs and restaurants for their culinary excellence. It’s the most prestigious international culinary award presented to qualified establishments and chefs. In its fifth year of operation, the restaurant has become the number one destination for foodies from all over the world. Food critics have poured in from all over just for the opportunity to experience the delights and write about the savory treats served in Sally’s signature dish. One savory treat included a specially formulated dessert created by Sally. The desert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have asked if the dessert would ever be sold separately in markets. Annual revenue from the restaurant is approaching twenty million dollars. The business has amassed direct ownership of fifty properties located around the country in high-density cities. Sales from the table app have steadily grown to over six million dollars in annual sales through subscriptions and advertising revenue. The company has invested in using the Kitchen-to-Door food delivery and Kitchen-Vision App that combines the delivery of ready-to-cook meal packages. This venture’s return on investment (ROI) has more than paid the initial investment and shows profit-level income. The company enjoys the highest credit ratings and has outstanding loans securing the original property and the other investment properties. The loans are in their final years, with projected restaurant revenue positioning the business in a favorable position that will enable the company to redeem the commercial paper before the due date, saving 12% of the outstanding balance. You and Sally agree that it’s time to develop a growth plan.
Thinking about the course content and the questions in the Grow Your Business document, respond to the following prompts:
Identify the indicators that your business is ready to expand.
Identify and explain three growth opportunities that currently exist for Sally’s business.
Discuss legal requirements associated with different growth opportunities.
Business Growth Questions
Complete the questions below to determine the information you need to create a growth plan that uses your current successes and strengths.
What are the potential Cost of Expansion?
What business changes would you expect to encounter?
What is your Vision, and how does expansion support your Vision?
Is Expansion Optional or Necessary? Why, or why not?
Name three Growth Strategies
What is your Target Market?
What are the Pros and Cons of opening another Restaurant Location as the main Expansion?
Are there products that you can sell internationally?
Are there Products that you can expand to the Internet?
What potential Customers can be targeted in Your Area?
Can you expand Your Product or Service Line? How?
is there a potential to take Market Share from Your Competitors? From who?
Can you Develop a sufficient a Growth Plan? Why or why not?
What Goals can you set? List them.
Do you need to modify Your Business Plan? What needs to be included?
Will your Personnel Adapt to your growth plans? Why or why not?
Do you need to develop a Market Plan? What would the focus be?
Are there ways to Leverage Technology you currently own? How?
Identify how you would plan the Growth Financing?
