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Helping a Local Food Chain Take Their Unique Flavor to New Markets
THE SITUATION
- An investor Client hired
Stax
to assess the positioning of a fast-casual restaurant chain and validate their concept in view of a potential franchise partnership to expand operations into three extended markets.
THE ASSIGNMENT
- Measured the overall market maturity for the fast casual category in core and extended markets.
- Compiled a fact base from data collected through field research of consumers, interviews with competitors and a review of secondary research and publications.
- Assessed the Target’s value proposition and customer perceptions along with the possibility of exporting the concept to the new markets.
THE BENEFITS
- Stax validated the fast casual category concept and investment consideration by providing recommendations regarding potential opportunities and threats in the new markets.
- We also confirmed runway to support additional locations across the new markets by 2020.
THE FINDING
- The Target appeared to have a highly satisfied customer base and performed well against key restaurant selection criteria.
- They were clearly differentiated from their competition on key elements of their value proposition and their customers displayed strong customer advocacy across core markets.
- Research revealed significant growth opportunities within the three extended markets, as they collectively represented a notably underserved market, constrained by the lack of availability of fast casual category outlets.
- High consumer receptivity for the Fast Casual Category Concept across the extended markets assured success for the Client in partnering with the Target for expansion in to the new markets.
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