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    Case Study - Location

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    Yuri Meigeni
    Oliver Munday, Hard Rock's vice president for cafe development, researches potential new locations for Hard Rock cafes globally. His research includes analyzing demographics, visitor markets, transportation, restaurants, political risk, real estate markets, and comparable brands in areas being considered. Once a country is selected, he focuses on specific cities. Hard Rock considers political stability, the nightlife scene, and does 10-15 year forecasts when deciding to purchase land, renovate an existing space, or franchise a new location. The document provides a sample analysis comparing factors in 4 European cities under consideration.

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    Case Study - Location

    Uploaded by

    Yuri Meigeni
    95 views3 pages
    Oliver Munday, Hard Rock's vice president for cafe development, researches potential new locations for Hard Rock cafes globally. His research includes analyzing demographics, visitor markets, transportation, restaurants, political risk, real estate markets, and comparable brands in areas being considered. Once a country is selected, he focuses on specific cities. Hard Rock considers political stability, the nightlife scene, and does 10-15 year forecasts when deciding to purchase land, renovate an existing space, or franchise a new location. The document provides a sample analysis comparing factors in 4 European cities under consideration.

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    Case Study_Location

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    Oliver Munday, Hard Rock's vice president for cafe development, researches potential new locations for Hard Rock cafes globally. His research includes analyzing demographics, visitor markets, transportation, restaurants, political risk, real estate markets, and comparable brands in areas being considered. Once a country is selected, he focuses on specific cities. Hard Rock considers political stability, the nightlife scene, and does 10-15 year forecasts when deciding to purchase land, renovate an existing space, or franchise a new location. The document provides a sample analysis comparing factors in 4 European cities under consideration.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    95 views3 pages

    Case Study - Location

    Uploaded by

    Yuri Meigeni
    Oliver Munday, Hard Rock's vice president for cafe development, researches potential new locations for Hard Rock cafes globally. His research includes analyzing demographics, visitor markets, transportation, restaurants, political risk, real estate markets, and comparable brands in areas being considered. Once a country is selected, he focuses on specific cities. Hard Rock considers political stability, the nightlife scene, and does 10-15 year forecasts when deciding to purchase land, renovate an existing space, or franchise a new location. The document provides a sample analysis comparing factors in 4 European cities under consideration.

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    HARD ROCK CAFE

    We suggest you follow these steps:

    1. Read the case study that follows.

    2. View the video tour of Hard Rock that addresses this issue.

    3. If you wish to have further background, reread the material in this chapter of the
    text.

    4. Answer the questions about the case, and if your instructor wishes, e-mail your
    answers to him or her.

    Some people would say that Oliver Munday, Hard Rock’s vice president for cafe
    development, has the best job in the world. Travel the world to pick a country for
    Hard Rock’s next cafe, select a city, and find the ideal site. It’s true that selecting a
    site involves lots of incognito walking around, visiting nice restaurants, and drinking
    in bars. But that is not where Mr. Munday’s work begins, nor where it ends. At the
    front end, selecting the country and city first involves a great deal of research. At the
    back end, Munday not only picks the final site and negotiates the deal, but then
    works with architects and planners and stays with the project through the opening
    and first year’s sales.

    Munday is currently looking heavily into global expansion in Europe, Latin America,
    and Asia. “We’ve got to look at political risk, currency, and social norms—how does
    our brand fit into the country,” he says. Once the country is selected, Munday
    focuses on the region and city. His research checklist is extensive.

    Hard Rock’s Standard Market Report (for off-shore sites)

    A. Demographics (local, city, region, SMSA), with trend analysis


    1. Population of area
    2. Economic indicators

    B. Visitor market, with trend analysis


    1. Tourists/business visitors
    2. Hotels
    3. Convention center
    4. Entertainment
    5. Sports
    6. Retail
    C. Transportation
    1. Airport
    (a) age of airport,
    (b) no. of passengers
    (c) airlines
    (d) direct flights
    (e) hubs
    2. Rail
    3. Road
    4. Sea/river

    D. Restaurants and nightclubs (a selection in key target market areas)

    E. Political risk

    F. Real estate market

    G. Hard Rock Cafe comparable market analysis

    Site location now tends to focus on the tremendous resurgence of “city centers,” where
    nightlife tends to concentrate. That’s what Munday selected in Moscow and Bogota,
    although in both locations he chose to find a local partner and franchise the operation.
    In these two political environments, “Hard Rock wouldn’t dream of operating by
    ourselves,” says Munday. The location decision also is at least a10-to-15-year
    commitment by Hard Rock, which employs tools such as break-even analysis to help
    decide whether to purchase land and build, or to remodel an existing facility.

    EUROPEAN CITY
    UNDER Importance
    CONSIDERATION of This
    Factor at
    Factor A B C D This Time
    A. Demographics 70 70 60 90 20
    B. Visitor market 80 60 90 75 20
    C. Transportation 100 50 75 90 20
    D. Restaurants/ nightclubs 80 90 65 65 10
    E. Low political risk 90 60 50 70 10
    F. Real estate market 65 75 85 70 10
    G. Comparable market
    70 60 65 80 10
    analysis
    Discussion Questions

    1. From Munday’s standard market report checklist, select any other four categories,
    such as population (A1), hotels (B2), or restaurants/nightclubs (D), and provide three
    subcategories that should be evaluated. (See item C1 (airport) for a guide.)

    2. Which is the highest rated of the four European cities under consideration, using
    the table above?

    3. Why does Hard Rock put such serious effort into its location analysis?

    4. Under what conditions do you think Hard Rock prefers to franchise a cafe?

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