Running head: Franchising Model for Guzman Y Gomez 1Literature reviewGuzman Y Gomez restaurant
Franchising Model for Guzman Y Gomez 2Literature review Guzman Y Gomezis a licensed restaurant of Australia. It has specialization in Tex-Mex dishes such as nachos, burritos, and quesadillas and may other special items. It is a business of franchised with more than 65 stores in operation throughout Australia. Along with that it has 3 franchisee in Singapore and 4 in the country of Japan. It is the restaurant which wants to expand its business with new stores around Australia. The first store of this restaurant has opened in Newtown, Sydney in 2006. It wants to expand its business in near future by using franchise model. The taste of the food of this restaurant will enhance the range of customers. The idea about opening franchisee of restaurant will allow them to earn more profits. Guzman Y Gomez has five strong restaurant chains in Sydney involving a new store in the bustling Centre of MLC. It is planning to expand its business nationally as a franchise. It is the business which put lot of efforts to develop its business. in the begin point there were only 15 staff operations in Newtown but now it has more than 100 staff and $4 million annual revenue. It is essential for restaurant toanalyze all factors before expanding its business by using franchisee model. Guzman y Gomezneeds to analyze the potential marketers, marketing mix, STP analysis, communication plan, promotional plan and resources. It wants to expand its business because it found that its taste is liken by many customers and it would be benefit for the company to adopt the franchise model because it will support to enhance the growth of the restaurant in particular stream appropriately.Guzman Y Gomez is the fastest growing brand in Australia that serves fresh and delicious Mexican food and delivers rapidly. It is the passion and pride of Guzman Y Gomez to
Franchising Model for Guzman Y Gomez 3make Mexican food and make customer satisfied about the taste. The menu of this restaurant is to make the real and delicious dishes of Mexican and cut above the competition. It is the belief ofthis restaurant that there are two kinds of people in the world. One is who prefer fresh guacamoleand other one is wrong. It is the concept of this restaurant to deliver the fresh food to the customer because it is the meal only as good as it is made up of. It believes to make the foundation of the business solid without any compromising and to develop its concept it never compromise with its products and services. There are three store of Guzman: strips, food courts and thru, but they have common ting in three stores that is fast delivery. There are so many benefits of expanding the business. The purpose of Guzman restaurantis to enhance the franchisee of this restaurant in so many places. New personnel, broad customer base, relocation possibilities, favorable financial opportunities and considerations are some benefits of expanding the business. Guzman would get opportunity to staff the restaurant with new skilled, qualified and experienced personnel with new range of ideas and views. It would enhance the opportunities of employment along with the growth of the business. These new hiredpeople will be helpful for streamline process and would be able to bring then fresh ideas for the organization. Business expansion offer has a point of advantage to wider their business in to a broader customer. It will enhance the pool of potential customers and bring the possible benefits in the favor of the growth of the restaurant. Effective expansion is able to come in the mind of customers foremost and they get attract towards experience the latest changes. Successful business expansion is able to put the business in the positive place when it comes in the situation of acquiring necessary financing. This financing might be the lifeline of the business in the time of expanding process.
Franchising Model for Guzman Y Gomez 4Figure 1: Guzman Y GomezSource: (Nadine, 2013).Effective business expansion will be helpful to enhance the market share and a solid financial position might acquire financing. Along with that the major benefits of expanding business is get the opportunity of relocation possibilities. Relocation will allow business to get the experience of different countries and their political, geographical, technological and legal challenges. These all challenges Guzman has to face wisely because wise business owners consider the benefits of such scenarios if relocation is possible. Increased access to suppliers and logistics suppliers can also be considered as essential element to contemplate relocation. Business expansion is only good when organization is ready to accept the changes and potential challenges otherwise it may cause the issue for the growth of the business. It is important for the Guzman to focus on profitability level while expanding the business in the comparison of growthlevel. The owner of the business can periodically review the return on investment from an expansion. Guzman wants to expand its business with using the franchise model. It is required for the Guzman to analyze the franchise model positively and negatively and know about the
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