Levendary Case Essay

2326 WordsMay 10, 201410 Pages
Levendary Cafe Case Study Commerce Essay Levendary Caf é is a well-known, publicly traded, brand in the US and currently expanding into China. T hey began as a small soup, salad, and sandwich restaurant that grew into a $10 billion business. T heir f undamentals are strong and perf ormance is in line with management’s f orecasts yet their stock is trading at a discount. T his is due to their domestic growth slowing and the new CEO’s lack of previous international management experience makes Wall Street skeptical that she can’t make this a multinational brand. T he Multi-Unit Restaurant Business represents 30% of the f oodservice industry which is a $600 billion industry with 960,000 locations. T hey are categorized into three industry segments: Specialty Establishments, Quick Service Restaurants and Casual Dining. Levendary Caf é is a hybrid of the last two called Quick Casual which has an average check in the $8 to $12 range. T hey are distinguished by two elements: wholesome f oods using high quality ingredients and a commitment to service in a comf ortable, f riendly atmosphere. T hey were also distinguished by their willingness to take risks which was a trait of the original f ounder. T he same trait the President of Levendary China possesses. T hey recently entered into the f ast growing China market and instead of keeping the US concepts intact they changed the store design and menu selections in 23 new stores located in dif f erent cities in China. When the new CEO came on board she started to look into the China operations. At this point the China operations have already been set in place and have been running successf ully now f or eighteen months. She reported her f indings to the US team and now they are all f urious at these changes – they are insisting things should remain as is in the US. T he president of Levendary China tries to explain that if you

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