Food

In: Business and Management

Submitted By Mohammed82
Words 937
Pages 4
In 1936, Johnny Colera began selling hot dogs at his lunch counter in Jamestown, New York. Thanks to his special chili sauce and savvy business management, his restaurant, named Johnny’s Lunch, became a huge success and a local institution. Johnny’s Lunch offers good food, low prices, top-notch service, and a unique store atmosphere, featuring Johnny’s hot dogs, burgers, fries, onion rings, and shakes, as well as less common options like homemade rice pudding. The restaurant now wants to grow into a national QSR (quick-service restaurant, or fast food) leader similar to McDonald’s. The company is currently led by two of Colera’s grandchildren, Anthony and John Calamunci, and a newly assembled team of executives with experience in the QSR industry. Growing the company from its humble origins into a national presence faces significant challenges. One will be to retain the restaurant’s small-town, local flavour as franchises proliferate across the country. Accomplishing this goal will require a coordinated effort. Another challenge for Johnny’s Lunch will be to sustain growth despite the impact of a weak economy. Analysts predict that the slow economy will threaten growth potential for QSRs; it’s estimated that the sector’s annual growth will slow to 2% or 3%, down from much higher rates during more promising times. The company hopes that familiar and cheap food will translate to success even in an economic down turn during 2009 and beyond. Management wanted to expand to 30-50 restaurants by the end of 2008, with a goal of as many as 3,000 locations nationwide in the following 5 years. There are only 3,300 hot dog restaurants in the country, and the most prominent chains like Nathan’s Famous and Wienerschnitzel have only 180 and 250outlets, respectively. Johnny’s Lunch and industry analysts believe that there is room for the explosive growth the company is planning…...

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