Case Study: Planning for Growth
Kelly's Sandwich Stop is one of the best-known and most loved sandwich concessions in town. In business for about five years, she sells sandwiches and other lunch items made from locally produced food from her mobile food trailer. Kelly's passion and talent for creating reliably fresh, tasty lunch fare popular among a business clientele (largely employees and shoppers) has made her small enterprise a booming success.
In the last year, Kelly added a bicycle-towed concession that travels to different strategic locations in town, selling her popular sandwiches to customers who work beyond walking distance of Kelly's SandwichStop. She now has a total of four employees, all part-time, working both concessions. Because she caters to urban customers, her concessions operate on week days from 10 am to 2 pm. To promote word-of-mouth advertising, Kelly uses Facebook to publish her daily menus and the locations of the bicycle concession.As a sole proprietor, Kelly has been pleased with her lunch business success. Now it's time to get serious about the future of her business. In the short and medium term, she wants to see it grow into a potentially more lucrative enterprise, implementing a greater variety of food products and services, and increasing her competitive edge in the region. Ever the ardent entrepreneur, Kelly's long-term dream is to develop her creative, health-conscious culinary skills and services into a wider clientele outside the region.
An opportunity has arisen to lease restaurant space about 10 miles away from her trailer concession location, close to a mall and the suburbs and nearer to her local food producers. Kelly has jumped at the chance. While she has hired professional business consultants to help her set up the space, design the menu, and implement the opening of the restaurant, she must also consider the short- and long-term financial, HR, and management needs of such an expansion. Kelly is particularly sensitive to her relationship to her customers, employees, and the community.