Out of the Crisis.Org

[Louis Altazan]

Three young men in college worked together on a business project. Together they did a study on the feasability of a fast food restaurant. There were hundreds of fast food restaurants already in the area, but this would have a new twist. This was going to be a small restaurant that only sold one product, chicken fingers. They researched the area, the market, the competition the capital required and found that it was feasible.

After graduation they continued to think about the project. Al said, I think we ought to go for it. Bob agreed with Al, but Carl said, “No, it’s too risky, besides I have a job offer already.” Al and Bob began to work on the details and it became clear that they had different ideas on how things should be done.

Bob wanted to rent an existing fast food restaurant building, and also serve hamburgers. His idea was to be very much like the other fast food restaurants. This would look and feel like a restaurant. He figured if McDonald’s and Burger King, were successful with this model, why wouldn’t he be?

Al wanted to use a very small but attractive portable building. He would put it on a large tree shaded lot with two large driveways. This would be in a good location, with easy access. The building would be painted in a tasteful but very different way, with picnic tables outside. There would be two windows for drive through, one on each side. Two window servers and two cooks would make food service very quick and efficient. Al’s idea would not look or be anything like the other restaurants in town.

They also disagreed on pricing as Bob thought they needed to charge less that the other fast food restaurants in order to survive. To cut cost he would buy frozen chicken and hamburgers in large quantities, cook them in advance and keep them warm under heat lamps. This way he could cut his cost of materials, have only one cook, sell for less and capture the market.

Al wanted to have fresh chicken delivered every morning and cook it when the order was placed. He would market his product on quality, service and charge slightly more than everybody else. With the extra money could afford high speed fryers, using only high quality oil. With two cooks and only one product he could easily fry it and serve it hot and fresh in a very speedy manner.

Their differences could not be resolved and each guy went their own way. Bob opened his restaurant, just as he had planned and Al opened his. Five years have passed since that day, and Bob has been out of business for three. Al now has nine stores, all of them considerably larger than his first, and each one just as unique. They now have inside service as well as the drive up and each store is super clean, very friendly and decorated with large pictures of Al’s dog. He serves the best chicken fingers around and his places are fun. Carl now works for Al and Bob says the economy went bad and that’s why he went out of business.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[Bud]

I always enjoy hearing this story. I'll have to try some of their chicken next time we're in Baton Rouge.

[Louis Altazan]

Hi Bud,

[Bud]

Deal.

It is always easier to come up with an improvement on an existing idea than to conceive something entirely new.