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Porcini's Pronto Great Italian cuisine without the wait! Case Solution
Porcini, like many of other restaurants, is struck by low growth rate. As a result of that, it took decisions to expand. It has strong local brand image and want to capitalize on that image. Porcini has always differentiated on the basis of superior products and services. Porcini wants to expand and so, it considers three different alternatives. At the same time, it is trying to maintain its quality. These options include starting operations through acquisition of land and building, which provides control. Second option is franchising, which helps in reducing start up cost. Third option is syndication, which provides best location with full control.
Following questions are answered in this case study solution:
Examine the reasons how Porcini’s has maintained high product and service quality? What are Porcini’s plan for maintain this quality for its Pronto concept?
What does the proposed customer questionnaire system Pronto is planning to use tell about their approach to quality? What are the strengths and weakness of this questionnaire? What are your suggestions to improve it?
What is the sustainable completive advantage (cannot be copied by competition), if any, Pronto has?
The case identifies three options. Discuss the advantages and disadvantages of each option. What option would you recommend (Hint: use NPV and ROI for each option)?
What should company do?
Porcini s Pronto Great Italian cuisine without the wait Case Analysis
1. Examine the reasons how Porcini’s has maintained high product and service quality? What are Porcini’s plan for maintain this quality for its Pronto concept?
Porcini strived hard to maintain its product and services quality. Porcini has created its high quality as a differentiating factor. Porcini set out a unique ambiance of family-owned restaurant, differentiating itself from others. Addition to that, they put experienced managers as in charge at individual restaurants. They hired services of award winning chef, Mariana Molise, and she was in charge and responsible for training chefs in each of the outlets to make sure that quality is not deteriorating. It is made sure that all the ingredients used in cooking are fresh and meet high quality standards. Furthermore, special attention was paid to artful presentation of dishes, no matter if they cost more. Employees were kept motivated thorough various initiatives, as a result, they had a stable workforce in high turnover industry.
In order to maintain its product and services quality, the chef, Mariana Molise will be developing new recipes, keeping in mind, the speed for preparation and serving. Addition to that Porcini has developed proper plans to hire and recruit employees that will be dedicated and will ensure consumer satisfaction and services quality. They planned for compensating employees with different techniques and training. To ensure quality congruency, Porcini will be connecting these branches to the central branch, displaying Italian backgrounds and cuisines. Customer feedback will also be a part of ensuring satisfaction; it will be recorded through a real time system. This system will match out performance to the appropriate employee for scorecard. In order to make sure the accuracy of the orders and speed, company will take help of technology and will be employing wireless technology and introduction of debit and credit card terminals brought to table by the employee. Also, Porcini figured out different ways to retain customers by providing them Porcini’s pals’ cards, worth $3 off in future purchase.
2. What does the proposed customer questionnaire system Pronto is planning to use tell about their approach to quality? What are the strengths and weakness of this questionnaire? What are your suggestions to improve it?
Porcini pays great importance for providing quality products and services to its customers in order to create a positive experience. So, this questionnaire system is an important factor in measuring customer’s experience. This system linked with the consumer performance, so it shows the importance of consumer’s comments and views. This system covers most important aspects to capture consumer experience. These aspects include product and services quality, ambiance and pace of providing those services. Furthermore, this system is real time; this shows the emphasis on ensuring quality at acme.
This questionnaire covers most important aspects to ensure measuring of quality in real time. This questionnaire covers aspects that are considered strengths and differentiating factors for Porcini. These factors included ambiance branch's cleanliness, quality of dishes, and quality of services and pace of offering these services. Real time system ensures that the consumer values will be taken with much importance so it will ensure that customers will fill these questions sincerely. In addition to that, this question is short and is in compliance to target of servicing quickly. The system provides them with the flexibility to measure direct consumer response to relate compensation and bonus. However, there are few aspects that need to be considered.
This questionnaire should also contain suggestions relating to improvement of services and quality. Taking constructive feedback from people can not only enhance quality but also consumer’s experience. In addition to that, questionnaire should also probe about the future prospects and visits because a loyal customer builds a positive reputation and future profitability. Last, but not the least, Porcini should also include aspects of the best thing about that restaurant and should probe an implicit comparison between Porcini and its competitors. It will help Porcini to improve and cater to more market share.
3. What is the sustainable completive advantage (cannot be copied by competition), if any, Pronto has?
Porcini certainly has some differentiating factors that can serve as a competitive advantage in this industry, where most services offered don’t have any differentiation factor to a great extent. Porcini has chosen its high quality offerings and services as a differentiation factor and, so, has tried to abide by it through various initiatives. These factors don’t really represent a competitive advantage until branded. Services when branded are a source of a competitive advantage like Singaporean girl for Singapore airlines. In case of Porcini, these services can be a source of competitive advantage. Usually, services are easily to replicate, and customer can differentiate services when they are branded.
If one looks into other competing factors, then cuisines typically related to Porcini can serve as a competitive advantage. Porcini can certainly take advantage of award winning chef, Mariana Molise. She is an asset with bright ideas in cooking and recipes. Her recipes are easy to be branded and affiliated with Porcini and it can serve as a sustainable competitive advantage. In addition to that, these recipes will create a first impact on the mind of the consumer and so people will have greater recall of that recipe associate with Porcini. Even, if someone tries to copy that recipe it will still have an advantage of being a first entrant.
Customer segmentation and location, is another factor can be used to build competitive advantage. Though many of the customers (about 50%) will be not travelling, but still locations offer a sustainable edge. Even for the time later if there are other entrants, because having a prime location and first entrant always have an advantage and a positive impact on branding and marketing efforts.
4. The case identifies three options. Discuss the advantages and disadvantages of each option. What option would you recommend (Hint: use NPV and ROI for each option)?
Porcini is not very strong financially, so franchising provides attractive opportunities. Company won’t have to bear all construction costs and so it provides an opportunity to focus efforts on branding and marketing. Franchising will also cause Porcini’s operations to start early. Franchising will also provide control over its operations through certain contracts. As a result, Porcini will not deviate from its main objective.
On the other hand, Porcini is not a strong brand name so it will not get high fees and royalties with this method. In addition to that, there is a potential deviation from its standards and procedures with franchising.
Syndication will transfer the ownership to the investor, but parent company will maintain a full control over.
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