Business Case Study Analysis – Frank’s All-American BarBeQue
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Question 1: Discuss how Robert should explicitly consider the customer value currently
offered by Frank’s All-American BarBeQue. In your discussion, comment on the five value
benefits and the perceived costs.
Question 2: Robert has several possible options for expanding his father’s business—find a
larger location in Fairfield, add a takeout option, open more restaurants in surrounding
communities, incorporate web marketing concepts, and expand the sales of sauces. Review
each in terms of value benefits.
QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OF MODULE 2
Question 3: In Chapter 2 “Your Business Idea: The Quest for Value”, Robert Rainsford was
introduced in the FRANK’S ALL-AMERICAN BARBEQUE case. He has returned to the family
business and is very enthusiastic about expanding the business. He has identified four
options: (a) expanding the restaurant either at its current site or elsewhere in Fairfield; (b)
opening several similar-sized restaurants in nearby towns; (c) using the Internet to expand
sales; and (d) expanding the sales of Frank’s sauces from a local store to a regional
supermarket chain. Any one of these ideas would represent a change from his father’s
business model. Given that he had not expressed any interest in the management of the
business, how should he go about approaching his father with these ideas? If the company
expands, should Robert approach his sister and her husband about taking a more active role
in the business? What should their roles be?
Question 4: Frank Rainsford has been, in effect, the CEO of Frank’s All-American BarBeQue
since its inception. His major role has been that of restaurant manager, receiving support
from his assistant manager Ed Tobor for the last fourteen years. Frank has two children, a son
and daughter, who both worked in the restaurant as teenagers. His daughter has worked
periodically at the restaurant since she graduated from high school. Frank’s son, who recently
lost his job, has returned to work for his father. The son produced several plans to expand the
business, including the opening of a second restaurant and the extensive use of social media.
After careful consideration, Frank has decided to open a second restaurant, but this has
presented him with a major problem—how to assign responsibilities to personnel. His son
wants to be designated the restaurant manager of the second restaurant and made the vice
president of marketing. Ed Tobor also wants to be the manager of the new restaurant. His
daughter has expressed an interest in being the manager of either restaurant. How should
Frank resolve this problem?
QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OF MODULE 4
Question 5: One night after the restaurant had closed, Frank Rainsford sat down with his son,
Robert. Frank had finished reading his son’s business plan for a third time. Robert sensed that
his father had some sort of reservations. “What’s the matter, Dad? Didn’t you like the plan?”
Frank paused and said, “Bobby, from a technical standpoint I think you have done a very, very
credible job, but you are right. I do have some concerns.” Disappointed, Robert asked his
father to lay out his concerns.
Frank told him that opening another restaurant was a huge and expensive undertaking. He
knew that Robert understood the financial risks, but he was not sure that his son understood
the problems associated with getting people to come to a new restaurant. Frank was
straightforward and told his son, “I have been at this for thirty-plus years. It took me years to
build up my client base. I really know my customers and what they like. Up until this year the
only marketing I did was flyers and a few ads in the local paper and the church bulletin. How
are we going to understand our customers at the new location? We are going to have to fill it
up quickly if we are to pay the bills. I know I’ve had some good success with selling the sauces
during the last few years, but remember that I’m selling them from Harry’s grocery store. His
customers already know me and my product. Your plans for ramping up sauce sales are great,
but again, how are we going to get people to know who we are and interested enough to by a
six dollar bottle of barbecue sauce?” Frank went on to tell his son that he knew that Robert
was extremely knowledgeable about marketing and the use of the Internet. He reminded
Robert that he had given him a greatly enlarged marketing budget in 2010.
If you were Robert, how would you go about alleviating your father’s concerns? (You may
want to consult Chapter 16 “Appendix: A Sample Business Plan” and review Robert’s business
plan for a new restaurant.) Answer the question from a marketing perspective.
Question 6: Frank’s All-American BarBeQue is planning to significantly expand its takeout
business. Currently, customers come into the restaurant and order from the menu. With the
new Darien facility and website, customers will be able to order online or fax an order to the
restaurant. Frank and Robert have been arguing over how to structure the takeout portion of
their operations. Frank wants to maintain the approach where customers order items from
the menu. Robert believes that in today’s world, it would be more convenient for customers
to order complete prepackaged meals. Father and son have argued about the nature of these
meals. Frank has suggests a limited number of standard meals that could be prepared during
the day and sold in the evening when commuters are returning home. However, this might
mean that excess inventory would be built up on unwanted items. Robert wants to offer
greater variety. These would include a main course, two side dishes, and a dessert. Because
there could be a large number of combinations, most would have to be made after the
receipt of an order. The “rush” to make these meals would drive up costs. How would you go
about pricing these two types of meals?
Question 7: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), you will find
the business plan for Frank’s All-American BarBeQue. This plan examined several possible
locations for a second restaurant. Frank and Robert considered several factors when
evaluating alternative towns as possible locations. Some of these included population size,
average income, travel times, and percentage of population. Based on the data, they selected
Darien, Connecticut. Do you agree with the decision? Why or why not? Do you think other
factors should have been considered? If yes, what would you recommend?
QUESTIONS TO BE ATTEMPTED AFTER COMPLETION OF MODULE 5
Question 8: In the Appendix (Chapter 16 “Appendix: A Sample Business Plan”), you will find
the income statements and balance sheets for Frank’s All-American BarBeQue for the years
2006 to 2010. Compute some of the key financial ratios for this business and discuss the
meanings of any trends.
Question 9: Locate the average values of these values for the restaurant industry and
comment on how well or poorly Frank’s All-American BarBeQue appears to be doing with
respect to the industry.
Question 10: Frank’s business plan in the Appendix (Chapter 16 “Appendix: A Sample
Business Plan”) provides projected income statements and balance sheets for a five-year
forecast horizon. Compute the same ratios as in Exercise 1 and comment on your results.
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