Question

Penn Station East Coast Subs began in Cincinnati, Ohio with founder Jeff Osterfeld. Feeling frustrated with the lack of growth and profits, Jeff decided to franchise his handful of restaurants in the late 1980’s. This strategy proved successful. Based on the internal environment of Penn Station, what factors contributed to the success of the business? What characteristics, culture, and management style did Jeff portray that lead to his overall success?

Answer 1

Penn Station has had only two franchisees fail. But there’s more to its recipe for strong growth and sales that finally have landed it among the top 200 restaurant chains in the nation. The main objective of Penn Station is “Simple Operations and High-Quality Food Make Penn Station East Coast Subs a Strong Opportunity for Franchisees”

The some Factors, contributed to the success are as follows:

1. Penn Station is focused on carefully selecting a handful of sites where its brand will be successful rather than opening stores at a fast pace and seeing what sticks
2. The Penn Station focus on our franchisees than Brand.
3. Penn Station sites have been carefully selected as well because the company uses analytics software to look at which sites are most likely to be successful and looks at the data to choose from proposals.
4. Penn Station Delivered the high value to the customers
5. Penn Station focus on offering made products
6. Penn Station given Distinctiveness in product.
7. Penn Station looks for candidates who are organized and diligent with at least some small business experience.
8. Penn Station is continuing to build its brand through a marketing strategy that it developed along with the Powers Agency that includes more social media and digital advertising
9. Focus on unit economics from the start. Making a great tasting product and making money on a great tasting product are two different things