Levendarary Cafe Case Study

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Levendary Café is a successful chain café that is comprised of 3,500 domestic stores. This chain was distinguished by two elements: wholesome soups, salads, and sandwiches using high quality ingredients, and a commitment to service in a comfortable, friendly environment. (1) The chefs were all classically trained and many were from top culinary schools, like the Culinary Institute of America. These chefs took pride in what they created, and the food they created was designed to be gourmet. Customers raved about this, stating “Eating at Levendary makes me feel rich.” (1) Levendary realized great success over its 23 year history and had grown into a 10 billion dollar business. The multi-unit restaurant business represents roughly 30% of the food service industry. This industry comprises of around 960,000 locations and generates $600 billion U.S. dollars in revenues. The industry is comprised of three segments: specialty establishments, quick service restaurants, and casual dining. (1) Levendary Café is considered a hybrid of the quick service and casual dining, referred to as quick casual. They have strong fundamentals and their performance is in line with management forecasts, despite this the stock is trading at a discount.…show more content…
Roughly two-thirds of their 3,500 stores were franchisees. The Chief Franchise Officer Peter Steele had used a tried and true method for finding and supporting good partners to do business with. They partnered with people who managed their resources properly; they conducted proper market research and followed best practices by competitors. Levendary understood the importance of operational metrics and high quality. They also had built up a reputation of consistency; their clientele could go to any one of their stores and get the same feel and menu. But, the market was shifting, and many of their competitors were finding success internationally, specifically in

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