Strategic planning is crucial at this stage and there are tools available to help any business perform the analysis needed to succeed. Kudler Fine Foods is an upscale food store specializing in foods and services that appeal to a niche market; gourmet chefs and gourmet chefs in training. The firm had good initial success with its first two stores, but its third store is suffering with lower than expected sales. The firm wishes to continue expansion and increase profitable growth. Before moving forward the company’s owner, Kathy Kudler, needs to understand her company fully and have accurate knowledge about the firm’s internal and external environment.
The final goal is to increase revenue, attract more new customers, to regain its competitiveness in the market. Although Jade Asian Restaurant has received press accolades, their business has issues need to be addressed immediately. Jade Asian Restaurant had been a popular Chinese cuisine destination for the first couple years after its opening. In the past few years, the popularity has decreased due to its inefficiency in service and food quality. In order to reach its goal of regaining the competitiveness in the industry, a restaurant management system must be implemented.
False advertising is also another unpleasant practice that fast food companies use to lure in costumers. Some of these practices include no warning labels on advertisements like there are on dangerous things like tobacco and confusing labels on food served that lead customers into eating more calories than intended. David Zinczenko advocates that it is some of the fast food companies fault for the decline in America’s general health. At the end, David chooses not to complain about the legalities, but instead encourages us to let the justice system do its work. In the article David Zinczenko discusses “Shouldn't we know better than to eat two meals a day in fast-food restaurants” we the people of America should know by now that it is
Critical Issues Cost Structure & Profit – There is a restaurant style cost structure of a 30/30/30, leaving only 10% for profit. Being manufacturing and a highly leveraged company they have a large amount of fixed costs and their cost structure does not reflect this. Expansion – There is inadequate capital to expand Monforte and securing financing from banks is unlikely due to Monforte’s low profit margins of 10% as well as her unfavourable financial ratios, specifically her acid test ratio of 0.9. Focus – The focus of the organization is blurred. There is a need for expansion; however, there is also a need to meet the requirements put in place about locally grown and produced products as well as high wages for workers.
Kudler Fine Foods Problem Statement University of Phoenix MGT/251 Dr. Patrick E. Murray Kudler Fine Foods has the unique opportunity to dominate the organic fine foods market in California. While business is currently good at Kudler there are many weaknesses the company needs to address in order to remain profitable on a grand scale. Currently the weaknesses Kudler is experiencing are problems with perishable goods, high payroll; management has too many responsibilities, sales at Del Mar location, and geographic expansion limitations. There is no way to completely resolve the issues with perishable foods. Being a fine foods store that specializes in foods that do not use any type of preservatives there will always be a problem with waste.
The customer service satisfaction survey that is currently in place on the Kudler website will help to identify what the customer’s like and don’t like about a minimum number of variables but market research needs to also include other vital information like culture, socio-economic background, health, and other marketing mix elements. Great marketing research will allow Kudler Fine Foods to perform studies to learn what they should focus on with their current
Kudler has created a niche market. Kudler uses innovation and customer-oriented strategies aimed at the bargaining power of customers, the threat of substitute products or services and industry rivalry by offering products and services for customers that go beyond other food stores. Kudler offers foods from around the world including making available any specialty items that customers might request; they have initiated a frequent shopper awards program and offer cooking classes that persuade customers to shop with
The two key competitors in the area are The Grog Grill and Kelly’s Taproom. The Grog Grill attracts an older crowd due to a more costly menu, and upscale décor, polarizing our younger target market due to its lack of affordability. Furthermore, the Grog Grill advertises itself as the perfect place to cater or host events, neither things our niche market is interested in. nor does the Grog Grill have much room for patrons to let loose and have a good time. Kelly’s Taproom is our most direct competition since it tends to attract both our niche market due to its prime location near colleges and universities and older guests.
Outsourcing the cooking activity can hamper the quality of foods as the management department of the restaurant will not have any control over the quality of foods. Thus it can lose its customers. Buffalo Wild Wings is popular for the unique taste of the wings. Due to outsourcing of cooking it can lose the secret of that unique taste and thus can lose competitive
He insists they would not eat as much if they knew that it was bad for them or if the industry put nutrition labels on their food. My outlook on this topic varied significantly from that of Zinczenko’s. I feel that it is not the fault of the fast food company. Neither would I put blame on the younger children who eat fast food. I would put most of the culpability on the parents who do not teach their kids how to maintain a healthy lifestyle and buy their children unhealthy food. I disagree completely that we as Americans suffer from lack of information about nutrition in fast food.