Levendary Cafe: the China Callenge
Multi-unit Restaurant Business concepts are represented by units with independent operators. The concepts are categorized into three industry segments 1) specialty establishments, 2) quick service restaurants, and 3) casual dining. An excellent example of this concept business is The Darden family of restaurants, founded from Lakeland, FL, which features the following most successful and recognizable brands in full- service dining: Red Lobster, Olive Garden, Long Horn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s, and Yard House. According to their last SEC 10-k report filing, they own and operate worldwide more than 2,000 restaurants, employ 185,000 people, and serve more than 423 million meals a year. The
…show more content…
The second issue is the stores are not congruent to the standards of Levendary Café US. Albeit the restaurants are carrying the name and brand, headquarters must recall founder Howard Leventhal’s philosophy of delighting customers. This is what will make them come back. Based on an article in the HBR on “The Globalization of Markets”, “The customer is in control”. Although the first three encounters Ms. Foster and Mr. Chen have not had favorable outcomes, her leadership and the future operations of China all come down to her ability to work with Mr. Chen. She needs to understand that he is an asset to the organization because he is able to deliver what would be institutional voids. In return, he has to accept she is the CEO and work with her. This harmonious union coupled with consolidated reporting of all operations will prove to have investors and Wall Street approval.
The complex business decisions and strategies that Levendary Café is faced with is all too common for many global companies. The conversations begin with whether or not to move towards markets. If domestically, it is easy to surmise the multitude of reasons to work with this vendor or place it in that location versus another one. As an organization, the firm is comfortable and familiar with the system for which it operates. On