This is for the Hungry Hogs case study

1. What are the 4-6 Advantages and 4-6 Disadvantages for each of the expansion strategy options - Company-owned Outlets versus Franchises (15%)

STRATEGY		ADVANTAGES	DISADVANTAGES

Page 12 9B15M086 EXHIBIT 5: HHPL FINANCIAL DATA Total Maintenance Cost at Three Outlets No. of workers employed Six No. of managers employed Two Salary per worker/month 17,500 Salary per manager/month 10,500 Water; electricity charges/month/outlet 12,500 Sales Data at Outlet 1 (Koramangala) No. of units sold per day 90 Retail price of the hotdogs (average) 3110 Sales data at outlet 2 (Indiranagar) No. of units sold per day 110 Retail price of the hotdogs (average) $110 Sales data at outlet 3 (campus) No. of units sold per day 25 Retail price of the hotdogs (average Other Monthly Expenses of the Company Salary of core management 3100,000 se Ebhohon in Management Decision Making at George Brown College from 6/9/2022 to 8/26/2022. Transportation charges $7,500 Rent of outlets 110,000 Raw material + Direct labour + Production cost 230,000 Source: Company files. Use outside these parameters is a copyright violation.IVEY Publishing B15M086 HUNGRY HOGS: THE HOT DOGS FROM INDIA Sonia Mehrotra, V. RamLakhan Annavarpu, Mansi Soni and Surbhi Bafna wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G ON1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright @ 2015, Richard Ivey School of Business Foundation Version: 2015-11-04 In July 2014, Darshan Ramanagoudra looked up from the checklist on his desk to watch yet another y Promise Ebhohon in Management Decision Making at George Brown College from 6/9/2022 to 8/26/2022. heavy downpour of rain in Bangalore. Ramanagoudra was one of the co-founders of Hungry Hogs Private Limited (HHPL), a company that marketed Indian-style hot dogs. HHPL had successfully opened three company-owned outlets in Bangalore since its founding in 2010. With revenues of $7.7 million in 2013, Ramanagoudra and his partners were working forwards to the opening of their fourth outlet at the Orion Use outside these parameters is a copyright violation Mall in Bangalore. The outlet would be expensive for HHPL, but the company's founders felt that it would give their brand the visibility that they desired. As Ramanagoudra looked back at the checklist of things he needed to do in preparation for opening the new outlet, he wondered about the kind of changes he would need to make to his business model for continued success: Should HHPL continue as an owned outlet model or adopt a franchisee model in hopes of rapid expansion? BACKGROUND 20099B15M086 Page 11 EXHIBIT 4: COMPETITORS IN THE QUICK SERVICE RESTAURANT SPACE Jumbo Burgerman East West Infusions Goli Vada King Hungry Hogs COMPANY Foods India Ethnic Foods Pvt. Chakh Le Pav Pvt. Ltd. Foods India Pvt. Ltd. Pvt. Ltd. Foods Ltd. Pvt. Ltd. FEATURES Nitin Darshan Sunil Venkat lyer Kiran Dheeraj Rakesh Nadkarni and Reeta Raghunathan Agarwal Ramanagoudra Promoter Cherian & Shivdas Menon Gupta and partners Year of 2006 2004 2004 2001 2010 200 2010 Inception Burgerman Goli Vada Kaati Zone Jumbo Petawrap Chakh Le Hungry Hogs Brand Pav King India Price 25 to