Wills Grill Case Study

An analysis report on the case “Wil’s Grill”

Submitted to Prof. Sunil Maheshwari

Date : 26.10.2018

Subject:

Written Analysis and Communication (WAC)

PGDM(EM) NSB,Noida, 2018-2020

[pic 1]

Submitted by:

KothamasuTarun (18PGDM00B016)

Table of Contents

Situational Analysis        1

Problem Statement        2

Options        2

Criteria for Evaluation        2

Evaluation of options        2

Recommendation        3

Contingency Plan        3

Conclusion        3

Situational Analysis

Mr. John Christ,the owner of the Wil’s Grill, is looking for options to improve the business while making customers happy by serving them great healthy local food. John and Karl Shilhanek observed a vibrant “street food” community. John and Karl were inspired to start their own business, and the flames of Wil’s Grill were reignited when they founded their own Wil’s Grill in Flagstaff, AZ in January 2014. At the NAU School of Hotel and Restaurant Management John learned about the “clean food” movement – characterized by locally produced, organic foods and sustainable practices. He decided to apply this clean food movement in Street Food Business. The food sales grew by 36% in 2015 and 254% in 2016. On 2016 for the first time he had an income of $23470 (averagely $1955 per month). 2014 to 2016 revenues totalled $129,000. On a survey he found that 28% of the people in Arizona know about his business.

Internal and External:

John and Karl were able to pay off the $2000 loan within four months; since then, they had taken no further loans. The business was not profitable and they did not pay themselves a salary.  John and Karl both worked second jobs to cover basic living expenses in 2014 and 2015.

Wil’s Grill was highly portable, and targeted two main markets:

1) NAU students who were tired of chain-based fast food and wanted good, reasonably priced, late night food, and

2) community events, where organizers and customers wanted reasonably priced, clean, high quality street food (in contrast, many street food vendors served manufacturer prepared and processed food)

Various studies conducted in the United States indicated a growing interest in

“Clean food” and this was beginning to influence some customers’ food and beverage purchase decisions. Consideration for healthy choices had reportedly increased from 61% in 2012 to 71% in 2014, and in 2015, 67% of respondents had given thought to environmental sustainability, 72% had given consideration to how food was produced or farmed, and 26% regularly purchased locally sourced items.

In 2015, John coordinated with NAU marketing research students on an exploratory survey. There were 79 respondents. The survey indicated that 56% of respondents were willing to spend at least $11/person on a catered event, of which, 24% were willing to spend about $16/person and 78% were willing to spend an additional $1 to $6/person for clean food.

Problem Statement

After Karl left the company,Wil grill become sole proprietorship firm where john has to manage all things because Karl focused on business strategy, marketing and social media.So this is the major problem Wil Grill is facing. John’s promotional marketing budget for 2016 was $2,100, although he believed he should spend $5,000.  This is Because of lack of skills in marketing.This is the main reason why john is unable to expand both street food and catering business.

Options

1.Hire a professional help to manage the business.