Boston Chicken Case
Case Overview
⚫Rapidly growing restaurant chain is one of the
hottest names on Wall Street
Overview of Business
⚫Over 1,000 stores by the end of 1996, with plans to
open another 300 by the end of 1997.
⚫Pioneer of the ‘Home Meal Replacement’ concept.
Hearty, home-style cooking with fast-food convenience.
What is the Key Line of Business?
⚫The balance sheet suggests that most of the
assets are tied up in the financing business
important
Summary of Business Strategy (1)
⚫Key Success Factors Associated with
Financing Business
Summary of Business Strategy (2)
⚫Key Risks Associated with Financing Business
⚫Credit Risk
⚫Concentrated with a small number of ADs who are all in
the same line of business
Summary of Business Strategy (3)
⚫Key Success Factors Associated with
⚫ADs have ready access to additional capital at low cost
Summary of Business Strategy (4)
⚫Key Risks Associated with Franchise Business
⚫Initial franchise fees dry up as growth slows
⚫ADs could go broke and would then be unable to continue
Summary of Business Strategy (5)
⚫Key Success Factors Associated with
Restaurant Business
Summary of Business Strategy (6)
⚫Key Risks Associated with Restaurant
Business