The company has also suffered stiff competition from Unos, Bertucci’s, and Buca di Beppo which try to offer the same products Porcini offers.
This paper will, therefore, explore the marketing strategies that the company lacks in relation to customer focus and the 4P, Market target and expansion, and competition so as to be on the competitive advantage.
The company has difficulties in choosing the right option for restaurant expansion to either undertake franchising or syndication. Ordinarily, the majority of the restaurant chains are considering new franchise agreements in their main avenue for growth where Porcini is not an exception.However, the restaurant has limited capital from restaurant-level operations to system-wide marketing and brand building. It should be noted that when the restaurant has no capital, it will be unwise for the business to go for a loan for expanding the business. This is because it will take time for the business to stabilize.
Therefore, the cost of construction and leasing is normally shifted to franchisees which would likely bring outlets into operation more rapidly. This leads to expansion of the company. The restaurant is not vast with enforcing franchise standards. Normally, the franchise has a 20-year term with renewal at the franchisor’s option a 5% to 6% royalty on gross revenues and an upfront fee during franchising.Additionally, each franchisee is usually accountable for his own financing and this saves the finances of the company. Some franchisors often handle all expansion, including feasibility studies, market analysis, site selection, and construction themselves. Porcini does not have a construction department and this makes it hard for the company to avoid franchising. Therefore this is the best option for the company for it will increase the company profitability
On the other hand, in syndication, the chain identifies purchases a number of sites, builds and furnishes a facility on each, then sells the portfolio of properties to an investor group thereby recouping and recycling its capital.