Fast Food Restaurants: Case Study: The Fast-Food Franchise

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The Fast-Food Franchise

The case explains there is one fast food franchise operating in a medium-sized metropolitan area. The owner of that particular fast food franchise holds the right to operate that fast food restaurant in that particular metropolitan area. There is only single outlet of that fast food franchise which is currently operating and is very popular as well. Since there is only one outlet and is very popular there are often customers who wait to get service from that fast food. Hence considering this problem and keeping in mind and realizing the shortage of the fast food outlet, its owner is now thinking to add one or more outlet to that running outlet. So, before owner actually derives to final decision whether to add extra outlet or not. He should investigate various factors and should also consider various tradeoffs in opening one additional site compared to opening several additional sites. This is briefly analyzed as follows.

Key factors owner should investigate before making a final decision
Opening a new outlet is very crucial in terms of its direct connection with the cost and revenue that it provides in return. We often see and know that customers do wait to get service from fast food outlet and this is not surprising and does not resemble customer disoriented service. On top of that this fast food outlet was very popular as well. Hence, the company should investigate following factors before it actually makes decision whether or not

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