Problem: Case Study
Scott Prewitt, his brother Steven Prewitt, and his brother-in-law Tony Mansoor have no experience in the restaurant business. But one of their goals is to start their own business and move their families from Jackson, Mississippi, to the mountains of western North Carolina. They are considering buying a Back Yard Burgers franchise. As of July 2007, there were 183 Back Yard Burgers restaurants, operating in 20 states. The franchise, with headquarters in Memphis, Tennessee, specializes in charbroiled, freshly prepared food. The company began franchising in 1988 and currently has only U.S. franchises. Back Yard Burgers, Inc., started as a double drive-through restaurant, but most new franchises include a full dining room, self-service beverages, and a single drive-through window. The Prewitt family is concerned about their inexperience and the harsh weather in the snowy mountains of North Carolina.
Answer the following questions based on case study.
i. How concerned do you think this family should be about their inexperience? Explain.
ii. Will the proposed location in the mountains be a potential problem for this type of restaurant? Why?
iii. Advise Steven and Tony on the pros and limitations of franchising system