Abstract

Porcini's Inc. operates a chain of 23 full-service restaurants located near shopping malls and downtown areas in the northeastern
United States. Known for providing excellent service, Porcini's serves high-quality Italian cuisine made from fresh ingredients.
Looking for expansion opportunities, management considers launching a new chain of lower-cost, limited-menu restaurants called
Porcini Pronto. The new outlets will be located along busy interstate highway exits in the region and will serve outstanding Italian
food at reasonable prices to both travelers and local residents. Management is concerned that a poor customer experience at Porcini
Pronto could tarnish the company's well-established and successful restaurant brand. The management team asks the vice
president of marketing to develop the concept and to create an operating strategy for the new outlets. The VP must also analyze
three alternative expansion strategies before management will make any commitments to the project. If Porcini's builds and
operates the new restaurants, the company will maintain complete control of operations and the customer experience but expansion
will take a very long time. Franchising and syndication are two other options which provide faster expansion but introduce the risk
of losing control of the brand. The VP must analyze the options and make his final recommendation.