Hottie Hawg's Smokin' Bbq Embraces Its Future

SWOT Analysis

Strengths

• Hottie Hawg has a partnership with NASCAR

• The restaurant has excellent food

• They have a differentiated brand

• This company has a list of creative owners

• Hottie Hawg has excellent marketing strategies

• No traditional storefront infrastructure

• This company has low infrastructure costs

• The restaurants are mobile

• Hottie Hawg has a unique delivery method (the 18 squeeler)

• They have little brand competition

• The restaurants have great service flexibility

• The company has proprietary recipes

• Hottie Hawg has great community support and interests

• This company has a professional marketing image

• They have a successful licensing agreement with friends in Denver, Colorado

Weaknesses

• Hottie Hawg has a significant lack of cash flow

• Leadership is spread out between two companies

• The loss of a founder means all lies on Vaughn

• They have high travel costs for events outside of Atlanta

• Licensing decisions reduce the opportunity of a franchise income

• They have limited distribution capabilities

• Expanding the company is very expensive

• The company has a non-centralized staff

• They have a lack of business credit

• Hottie Hawg BBQ restaurant has a limited menu

• The use of ACT funds to finance Hottie Hawg's BBQ operations pierces the corporate veil.

• They have a limited catering experience for potential customers

• Some restaurants may not be considered family-friendly by some customers

• There is no kitchen or commissary to support operations in Denver, Colorado

Opportunities

• There is a Aramark/Pepsi Center advancement

• NASCAR is a potential growth partner

• Their lies expansion within Atlanta

• Brand awareness is available through additional licensing and potential franchising

• Increase in merchandise sales

• Brick-and-mortar Flagship locations

• Increased popularity of Food Trucks

Threats

• Competition with other businesses such as Hooters Restaurants and other barbecue restaurants

• Customer could have a reluctance to patronize a polarizing brand

• There could be a loss of trade-secret information

• There are legal costs included within the company

• There can be an economic downturn or possible slow economic growth

• The company has rising fuel and transportation costs

• Other restaurants such as Pitmasters BBQ uses a similar logo and brand image

Strategy Alternatives

1. Hottie Hawg can proceed with the Aramark/Pepsi offer. This can be made possible by continuing to use start-up funding from Vaughn's ACT Company. The obvious advantage would be the extensive exposure. With Seymour already making progressive in Hottie Hawg BBQ regular market, this could be an opportunity to substantially grow the company. One cost to this alternative is that if Hottie Hawg BBQ focuses on this one job it could lose its stake in other market locations. One thing that makes the company unique is its ability to travel. If the squeeler is always on the road taking supplies back and forth to Colorado, then other ventures would be affected.

2. Accepting the position, but without the consistent travel of the squeeler. Hottie Hawg BBQ could make some type of partnership with another kitchen in order to make the job possible. Hottie Hawg BBQ could use another kitchen's building and staff in order to produce and store the food and supplies in order to get the job done. One of the issues with this alternative is that using another kitchen could affect Hottie Hawg BBQ standards. Not having workers that are vested in the company also means that there is a possibility of having workers who would not take the Hottie Hawg name serious. This could cause mistakes that could tarnish the Hottie Hawg name.

3. Hottie Hawg BBQ can refuse the Pepsi contract. This could give the company time and resources to focus on building a name in its hometown of Atlanta. In contrast to the other alternatives, staying close to home can save wear and tear on the squeeler. This option can also keep the Hottie Hawg BBQ name within the hands of those who have a vested interest in the company. The main drawback to this alternative is the lack of exposure. Hottie Hawg BBQ does have to face the reality that until this point most of its exposure has fell into its lap. The Aramark offer is no different. It was all just a matter of being in the right place at the right time.

Strategy Recommendations

Pursuing the Aramark contract creates the most challenges with respect to implementation. In addition to the issues discussed in the case, Vaughn would also have to hire additional employees, including a Denver area manager. The most pressing implementation issue involved with not pursuing the contract is that Vaughn now understands the limitations of having only one squeeler. This may spur him to consider purchasing a second kitchen on wheels. As a fledgling company, licensing