Chef Davide Oldani and Ristorante D’O Harvard Case Solution & Analysis

Chef Davide Oldani and Ristorante D’O Case Solution

Case overview

                This case sheds lights on a unique business model of Ristorante D'O, which is situated near Milan, Italy. The founder of this restaurant is David Oldani. The primary objective for the founder of this restaurant was to deliver high quality food with fair price charged as compared to its competitors.

 Oldani had a passion for cooking. He used to accompany his mother in the kitchen and observed how she used to cook. He also loved football but at the age of 16, he was forced to stop playing football as he was seriously injured. Due to that,he focused on cooking. During his summer school, he was properly trained at Chef Marches restaurant in Milan which was currently holding a two-star ranking in the market which changed to three stars recently.

            Oldani's dream was to open a restaurant. One day he received a phone call from his brother, and was informed about an opportunity which catered the demand of Oldani. He thought that this location would save a lot of money compared to other sites as the rent was at an all-time high. In the year 2003, he opened a restaurant with the name of D'O, the staff comprised of only 4 people. His idea was to open a restaurant which always operated at maximum capacity so that he could identify the preferences of the customers. From there, his business expanded and after a year, his business was ranked 1 star.

 This case shows that how cost-quality trade offs can be altered through creative operating strategies. Firstly he opened a restaurant at a distance near Milan,as many restaurants in Italy usually opened for five days a week. Oldani adopted a different approach, as his restaurant was also operating five days a week the off days were Sunday and Monday. The most important approach he adopted which no other restaurant was providing was that there was flexible time offered for the customers to pay the bill. Moreover, Oldani accepted only cash because through credit card, the bank also charges its fees, which was not an economical way to pay the bill as per Oldani.

Analysis of Growth strategies:

            The growth strategy indicates different strategies as to how a company can promote its product or market to increase its sales volume and its revenue. The strategy includes market penetration, market expansion, product expansion, mergers, and acquisition. (Hyland, June 2013)

            The management has two available options, the first is to open a restaurant abroad or in any other city of Italy whereas, the second available option is that Oldani should adopt the strategy of market expansion. This is because the restaurant is already operating in the city and is performing well. Oldani should open a new restaurant in another city of Italy or another country in order to increase its revenue and growth. This decision would have some advantages and drawbacks.

Pros: 

  • New customers are going to enter the restaurant.
  • Economies of scale.
  • New taste would be developed in the new country or city.
  • Can work under advanced technology.

Cons:

  • Extra workforce is required.
  • May face financial challenges.
  • Loss of control.
  • Compromised quality.

Proposal one is not as effective as proposal 2, and this is because the restaurant is already operating in the market and if a new one is being introduced in vicinity area, then it will not be much beneficial. However,it covers some pros and cons:......................

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