Swat analysis for exito station restaurants essay

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Éxito Station

Strong points

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Concept uniqueness- Concept structured restaurants count on decor and novelty styles, which are appealing enough for the customers to draw in business. For example: Hard Rock Coffeehouse, Applebees, Rolling Rock Coffeehouse, or Umland Steakhouse. The Victoria Stop utilized the English depot paraphernalia to compliment the motif, gas signals, a reddish English phone booth, and a London taxi.

Top quality control- The beef was cut to specifications, applied controlled- part fillets/top sirloin butts, and a computerized checking system to confirm that unapproved vendors will be brought to canal attention should any products be purchased from the approved purveyor list. Appearance, food preparation and service, drink, atmosphere, gear, safety, and inventory control were emerge detail with complete job descriptions for all managers.

Financial control -detailed reports and daily inventories.

No advertising or paid promotion- they were successful at the start with only relying on person to person.

Promotions- among the most profitable promo was the rib promotion.


Over expansion- Victoria Stop went against its own policy bases on building in areas with inhabitants of 1million or more. In spite of expansion with all the hopes of developing more quantity, Victoria Stop was still not able to cover the fixed-cost proportions. They had about 100 restaurants in more than 50 market segments. ()

Adamant concept design- The boxcar, compared to classic restaurants created high occupancy costs due to its expensive building and the protection. It also impeded the liquidation of resources to cover bills.

Limited menu- Would not leave any allowances for customer alter, dietary improvements, or industry swings for beef sector. Poor reaction skills- Once V. S. sales began to lessen all their reaction was to raise prices which ended up going against the original notion of prime ribs at a fantastic price.

Identity crisis- The moment change was necessary they will ended up only to created distress for their industry segment, can it be casual, friends and family, fine dining, steak/burger, and so forth.


Technology- They could have counted on this for further portion control from the beginning. Or perhaps for some type of expansion on the boxcar itself.

Societal need & Recognition- Victoria Station must have connected themselves to the communities surrounding through assistance or donations. This would have created a longer, positive frame of mind to V. S.

Population & Nutritional changes- There will always be more people in need of meals, this is especially and so due to moms working, now dining out and take-away features far proceeded home cooking.

Childrens menu- That they left out an extremely large and important segment, children. If perhaps they meant to have a family group restaurant they have to have a highly developed youngsters menu.


Competition- They did not take in account the expansion of other featured restaurants targeting a similar economic motif, such as Reddish Lobster and Quinns Lighthouse.

Raising meat prices- In the Fiscal season 1981 Victoria Station dropped more than 6. 3 , 000, 000, one primary reason was due to the continuing rise in beef prices, which in turn raised meals cost to 50% (Martin)

Economic and weather decline- 1982, the meal depend declined almost eight. 4% when compared to previous yr. This time, because of the poor overall economy and the extraordinarily harsh winter months. (Bernstein)

Difference in Public- Victoria Station did not leave room for the swing away from red meat phase into the even more health conscious sagesse today, proceed bland, skinless chicken breasts.

New minimum wage- Legal guidelines passed a raise in bare minimum wage, which eventually hurt the margins of the whole industry. (Kochak)

2) When ever reading the resources and testimonials to the Éxito Station case, I found personally thinking, Our god its Barnum & freaking Bailey. This really is a festival, not a restaurant chain. Okay so yes, now it is great to have the server to use the table with you and company (hopefully this gimmick will end quickly). To begin, the motif, they had to understand that originality would simply hold so long and then people notice imperfections. Instead, management was surprised by a review which showed atmosphere held a great affect over the success of the restaurant while they will felt that they could depend on the food by itself. Still, the boxcar propounded many other problems: 1) they were more expensive when compared to other eating places. 2) The building became the logo, for them it will take more than changing the sign and menu to become whole new cafe. 3) Created lack of assets to cover debts. Second, the limited menu, featuring reddish colored meats things such as primary rib. At that time in time there may have been a nitch because of it, but to create a whole motif on it is usually limiting and unrealistic. Individuals tastes and food markets modify, they understood that and nonetheless they did not create enough flexibility allowing for sudden changes. And lastly, the saturation of Victoria Station Restaurants in a limited designed market, the corporation saw instant margin development and decided to just keep expanding, disregarding all of the start up costs and unstable market positioning.

3) You could look at this question similar to, which emerged first, poultry or the egg? Because of their pre-existing limitations in menu and concept this locked them into being at the whim of the meat industry and their prices and a simultaneously not relaying the prices to the customers, whos tastes will be changing too. But overall, no these kinds of problems match with the initiation of this chain.

4) To save Victoria Place Restaurants, they should have possibly stuck with their business plan or perhaps at the point of fall in the your life cycle, only cut all their losses and start completely new, including the building. Otherwise, I would have relocated away from concept- type advertising to a worth based advertising system in service, top quality, and cost.


1) Lewis C. Robert. Situations in Food Marketing, Managing. John Wiley, Sons. Nyc. 1997.

2)Martin, Richard. Victoria Station Looks for Survival Choices Nations Cafe News. September 10, 1984.

3)Kochak, White-colored Jacque. Running low on Lives. Cafe business. This summer 20, 1987 v86 p104

4)Strenk, Ben. Bets in Bonkers Cafe Business. August 10, 1984 v83 p176

5)Bernstein, Charles. Typical lesson: accomplishment breeds failure. Nations Cafe News. 06 16, 1986