Case Study Plato's Diner

981 Words4 Pages
Plato’s Diner is a family owned and operate business. The owners, Dean and Chris Papas are Greek immigrants and they believed if they worked hard and spend their money wisely they will become successful businessmen. Contrary to their beliefs the case highlights several issues at Plato’s Diner. These challenges derive from lack of strategic planning, management operation, human resources management, marketing strategy and non-compliance of labor laws, and taxes regulations. These challenges pose legal ramifications for their business. Dean and Chris, 22 and 24 years old, respectively, made their dream a reality in June of 2002 when they accumulated enough money to buy Plato’s Diner. Plato’s Diner is a 1950’s diner located upstate New York and…show more content…
Their strengths are good food, reasonable price, high customer traffic, clean atmosphere, family run and operated. However, their weaknesses were; lack of management expertise, lack of accountability, inefficient human resources management skills, lack of innovation and therefore missed growth opportunity, and a hostile working…show more content…
In family owned businesses, nepotism comes to play, and family members are reluctant to let outsiders into their fold. To be successful a business, Plato’s Diner needs to employ qualified manager and accountant. Chris and Dean needs to employ a professional manager to oversee the daily operations of the business since they both lack the skills to do so. Since both brothers are excellent cooks they should stick to that aspect of the business. Plato’s Diner location was good for marketing strategy, so was their price, and meal, however, they lack effective marketing and promotional push. Dean and Chris need to put the final P(romotion) to work. They need to promote Plato’ Diner on television or in the newspaper. To be successful, they have to move forward with innovation. Also, they should enlarge the parking lot and invest into a credit card machine because plastic is the way of the future. Plato’s Diner have a lot of potential base on location it just need to be transform into revenue. Both brothers need to be more responsible with their monetary expenditure. They should implement a systematic method of record keeping and keep personal money separate form business. Another aspect is that Plato’s Diner must stop hiring under age children, illegal immigrants and stop employee discrimination because the penalties for these offences can be extremely
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