WADESHWAR RESTAURANTS

STRATEGIES FOR GROWTH

A case study from:

Charbonnel-Descourtieux Julie - 54094
Da Mota Ferreira William - 54122
Grandgirard Juliane - 51062
Nguyen Dinh Khanh - 56538
Alan Righi - 53134
 QUESTION 1
SWB WRD Smilestone Kalpak Caterers The Group
• Opening 8 • Opening 3 to 4 restaurants on the • Opening a highway • Increasing the • Expanding to other
to 12 outlets same business model by buying restaurant similar to mobility of the cities in India.
with a either Coffee House or Smilestone on another teams for parties
centralized Jayashree. highway. and office • Expanding at an
kitchen. functions. international level.
• Find a way to differentiate WRD • Lease space to international
from its two main competitors, fast-food chains as • Buy multiple built-
Vaishali and Roopali. McDonald’s and KFC. up restaurants
properties.
• Increase operation and process • Hiring new managers with
standardization. high involvement.

Their strategy must adapt to their resources and their competences : It must follow the image of a family
group that has the ability to serve customers in an efficient and enjoyable way and they must be careful not
to neglect their regular customers. They must consider not lowering the quality of their menu while staying
innovative. Their future strategy must also take into account the fact that they own plots outside the city that
can be sold in order to have cash. That means they have financial resources. However, their strategy may
be affected by the government and licensing issues.

Alternative 1:
Small Outlets Serviced by
Central Kitchen Operation
• Economies of scale
• Reduced operating cost
• Low initial investment
PROS cost/ opened unit
• Force for process
innovation
• Enormous innovation
CONS • Complex operational
management
RISK LEVEL Low
QUESTION 2
Alternative 2: Alternative 2: Alternative 3: Alternative 3:
Full-Fledged Restaurants Full-Fledged Restaurants Highway Restaurant Similar to Highway Restaurant Similar
Similar to WRD - Similar to WRD - Jayashree Smilestone - the same highway to Smilestones - other
Coffeehouse highway
• Up-market location • Low monthly rental cost • Low current competition • High demand potential
• Similarity to WRD • Large seating capacity • Support from Smilestone
• Reputation inherence • Customer from intercity bus
• Support from the partnership
landlord
• Simple takeover
• High monthly rental cost • Down-market location • Enormous investment • Enormous investment
Space limitation • Large initial investment in • Lack of demand • Difficulty in HR
facility installation and • Difficulty in HR arrangement arrangement
modification • Difficulty in remote • Difficulty in remote
operational management operational management
Medium High High High

PROFIT
High Medium Low Low High
POTENTIAL
SUGGESTION APPLIED APPLIED NOT APPLIED NOT APPLIED APPLIED
INVESTMENT
1 2 3
PRIORITY

PROS
Smarter investment : with a 5-year lease, possibility that the
group is evicted from a well-working location, when it is very
likely that its value increases a lot given the current real
estate market
 Way of securing the value created
 Consistent with the familial strategy to create sustainable
revenues
Buying a location would imply :
• Selling the plots of land Swanand’s father had invested in
• Making a loan for 30% of the property’s value
• Reducing the equity of the group making it impossible to get new locations growing fast and with
enough flexibility
QUESTION 3
CONS
 Good areas are too expensive (prohibitive price) in the
city -> can only invest in suburban areas
 As the costs are important, it would limit the possibilities
of expanding quickly If the location is not profitable
enough -> harder to move to another area
 Investing in international real estate would not be a good
move given the investment required in studying the
target market