Elephant Bar Restaurant Mezzanine Financing Case Study Analysis

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Elephant Bar Restaurant Mezzanine Financing Case Analysis

The structure of Elephant Bar Restaurant Mezzanine Financing Case Study Analysis was in the year 1935, the time when Yunosuke Aoki-- father of Rocky (the current younger president of Elephant Bar Restaurant Mezzanine Financing Case Study Solution) opened his very first dining establishment chain in the Japan. It was named so when a little sized flower red in color grew near the dining establishment's front door. In 1959, Rocky, throughout his trip to the United States explored more opportunities in the United States of America as compared to Japan. After spending a duration of three years, he had much better analysis of the dining establishment market of the United States. In 1958, he was stressed over the expense rising and increasing competition.

Therefore, in 1963, Rocky opened his very first system to make an effort to apply what he had found out in the West Side with his initial savings of about $10,000 borrowed $20,000. This was repaid within a period of six months. In 1964, opening a humble unit with 40-seat in the midtown Manhattan, Elephant Bar Restaurant Mezzanine Financing Case Study Help grew to fifteen units chain through the nation and a net worth of about $12 Million.

By 1972, it was actually a steakhouse with variation through the way food was cooked in front of clients especially by the Japnense chefs and the decoration of the system was realistically detailed like the Japanese nation. Amongst fifteen units of Elephant Bar Restaurant Mezzanine Financing Case Study Analysis, 9 of them were at company-owned areas and five were franchised.

Problem Statement:

Nevertheless, Elephant Bar Restaurant Mezzanine Financing Case Study Solution had actually been rather different and is tough to intimate, but the thing it did not have included the high cost of the products which was because of using materials from your home of Japan and the involvement of total personnel of native Japanese in the shop. Similarly, the service were time-consuming therefore lack fast service reactions with a long period of time of queuing.

Operations in the organizational success:

Dining space:

Usually, the regular dining establishment needs 30 percent of the overall space of the restaurant as the house back. While, Elephant Bar Restaurant Mezzanine Financing Case Study Analysis consisted of just 22 percent of the overall system space as your home back that includes office, dressing rooms of staff members, dry and refrigerated storage and locations of preparation. This was a considerable increase in the floor area percentage dedicated to dining area to be productive.

Hibachi table arrangement:

The removal of traditional kitchen area need with the arrangement of hibachi design gave Elephant Bar Restaurant Mezzanine Financing Case Study Help an uncommon mindful service amount and kept the expense of labor at the gross sales of about 10 to 12 percent. This was dependent if the system was at full volume.

Reduction in menu:

Through decrease in the menu to just three basic entrées of Middle America that included Shrimp, Chicken and Steak. There had been substantial storage of food and essentially no food waste. This had cut the expenses of food by 30 to 35 percent of the sales of food depending on the meat rate.

Historical Authenticity:

The ornamental lights, artifacts, beams, ceilings and walls of Elephant Bar Restaurant Mezzanine Financing Case Study Solution were all from Japan. The product of building was collected from old houses which were dismantled in a cautious manner and shipped in pieces to the U.S. where reassembling was done by one of his dad's 2 teams of carpenters of Japan.

Site Selection:

Due to the lunch break business significance, one basic concept of Elephant Bar Restaurant Mezzanine Financing Case Study Solution was its choice of website i.e. high traffic. Lease was typically at 5 to 7 percent of sales for the location of about 5000-- 6000 square foot for the area of flooring. Much of the units of Elephant Bar Restaurant Mezzanine Financing Case Study Help were found in business districts with a simple access to the areas of residency.

Advertising Policy:

Among the essential consider the success of Elephant Bar Restaurant Mezzanine Financing Case Study Solution was its substantial financial investment in public relations and innovative marketing. The investment of organization of about 8 to 10 percent of its gross sales in order to be friendly to public. Elephant Bar Restaurant Mezzanine Financing Case Study Help used completely various method for ad. As they had visual items to offer. It utilized impressive visuals in its advertisement. The complimentary copy was modern however often off-the-wall. This was on the basis of market research to be aware of their potential clients.

Training:

The chefs of Elephant Bar Restaurant Mezzanine Financing Case Study Help were an excellent key to its success as all the chefs were extremely trained. All the chefs were certified, native Japanese speakers, single and young meaning that they had completed their formal apprenticeship of three-years. They were then provided with a course of 3 to six months in duration in the English language about the manners of American style and the Elephant Bar Restaurant Mezzanine Financing Case Study Solution cooking style which was mainly showmanship in Japan.

The chefs were required to the U.S. under the agreement of a trade treaty. Training chefs was an ongoing process in the United States. There was a taking a trip chef responsible for periodical examination of each unit and associated with the new units opening. The chefs were not usually interested in resignation of their job due to the factor that included the possibility to rise in the Elephant Bar Restaurant Mezzanine Financing Case Study Solution operation of America in contrast to the stiff hierarchy on the basis of education, age and class they might experience in Japan.Similarly, other factor consisted of the Elephant Bar Restaurant Mezzanine Financing Case Study Solution's paternal mindset which took forward all the staff members.

As an outcome, workers turnover in the United States was rather low, however, many eventually returned to Japan. For complete gratitude of success of Elephant Bar Restaurant Mezzanine Financing Case Study Solution, the uncommon mix of paternalism of Japan in the setting of America had actually valued.

Imitation:

The dining establishments of Elephant Bar Restaurant Mezzanine Financing Case Study Analysis adopted accurate and well-defined methods during the selection of websites and chefs training which helped the company in lowering the typical time of dinner turnover and the distinct mix of paternalism of Japan in the setting of United States of America that made it hard for other companies to intimate.

Winning Strategy:

Effective Training:

Elephant Bar Restaurant Mezzanine Financing Case Study Solution invested greatly on the programs of training for the chefs:

• Training of formal apprenticeship for a period of three years with accreditation in the cooking style of Elephant Bar Restaurant Mezzanine Financing Case Study Solution.
• Three to six months course as for the American good manners teaching and training in English language.
• Usage of training program as a continuous procedure to be followed.

Employee Satisfaction:

Fulfillment of employees as the ecosystem for assistance available for each staff member:
• Complete satisfaction of employees increases development possibilities of efficiencies of both workers and company.
• Paternal attitude-- worked as the secret to the bonding on basis of culture with effective management.
• Supplying employees with good-looking wages and rewards such as plans of reward.
• Supplying workers with intangible benefits like security of task and workers' well-being.
• Pride of staff members functions as the essential consider the inspiration of staff members.

Effective and Aggressive Marketing:

Financial investment of Elephant Bar Restaurant Mezzanine Financing Case Study Analysis at significant level in the maintenance of public relations and development of advertisement:

• Financial investment of about 8 to 10 percent in marketing from the gross sales.
• Organization lead in terms of its unusual technique of advertising.
• Ad was remarkable, modern, off the wall visuals in the advertisement.
• Elephant Bar Restaurant Mezzanine Financing Case Study Solution considerably kept its policy word of mouth in a consistent manner.

Customer Satisfaction:

Research study of market to evaluate the possible customers and their expectancy:

• Quality of food drive the consumers' fulfillment the most i.e. use of food of prime grade.
• The key chauffeurs served as the factors of clients' fulfillment was mainly environment and service.

Problem Analysis:

Franchise

• Financiers of the business were not experienced in regard to grow the restaurant service.
• Lack of awareness about the culture of Japan and cooking design of Elephant Bar Restaurant Mezzanine Financing Case Study Help.
Investors do not have control in terms of management of operations.

Expansion

• Funds-- aversion to get loans from organizations of financing such as banks.
• Organization faced insufficiency in the additional trained staff.
Efficiency is thought about excellent but is restricted with schedule of just 2 carpenters.

Operation

• Services of the organization were time-consuming as there were no alternatives of fast service.
• The expense of ad was quite high and specific focus of organization towards food.
• The services variation was limited to the primary United States food market.
• The menu of the company lacks variety of food as the menu was restricted.

Improvements:

Expansion

• For the expansion of service, there is a requirement to explore possible regions such as suburban area areas.
• Joint endeavors are thought about more liable in contrast to franchise such as with the chain of global hotel.
• Elephant Bar Restaurant Mezzanine Financing Case Study Help can substantially take funds from the institutions of finance as cash flows was not a matter of concern.
• Growth of business in the global market like market of South East Asia with anattention of middle to upper class department.

Development of brands with differing worth proposal like Elephant Bar Restaurant Mezzanine Financing Case Study Help signature, Elephant Bar Restaurant Mezzanine Financing Case Study Solution and Elephant Bar Restaurant Mezzanine Financing Case Study Solution Oriental Express.

Cost

• Through the expansion of business in the residential area locations, there will be decrease in the website cost.
• Lowering of extra expense of ad.
• Use of local material in the development of developing to provide it a shape of architecture of Japan.
• Usage of locally available workforce for the work of carpentry.
• Purchase of design material in bulk amount to get more affordable rates of the items.
Structure of workshops in developing nation such as Indonesia or Thailand for production of design craft of Japan as brand-new organisation line.

Operation

• Present operations with quick services in order to cater the division of youths.
• Elephant Bar Restaurant Mezzanine Financing Case Study Help can take up add-on company in order to offer traditional stuff of Japan in a committed restaurant locations.
• Bring variation in the menu such as addition of sushi-on-the-go, udon, robatayaki.
• Intro of appealing schemes for old individuals and women.
• Intro of complimentary card of membership to use bundle of special offer to its faithful customers.
Building of regional center for training especially to train regional staff.

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