Hog Wild BBQ has been ranked very high for BBQ in Kansas. Local people would agree that their sauce has Zen ingredients that have their taste buds coming back for more! From the succulent meat choices, to the special sauce, this restaurant has all of the wonderful sides to go with the meals. Hog Wild has filled a niche in the Plains with slow roasted food that is more like Grandma’s style than fast food can offer. I know there are many people that look for an inexpensive BBQ that offers drive through, carry out and dine in, and Hog Wild does that for me and many of my neighbors. They have catering for company picnics or family reunion gatherings. Judging by the expansion to five locations in Wichita Kansas as well as being in three other cities, Hog Wild restaurant will be around for a while. So why not franchise them? This paper begins an in depth analysis of the possibility of franchising this delectable restaurant that so many are fond of. Let’s explore what is compelling about their food and why it would be popular in other locations or states besides Kansas. We can take a close look at their business system to see what elements make it successful. What is it about them that endear their customers to love them? We will examine the quandary of “should I choose franchising versus licensing?” We can identify their competition in the marketplace and who would be their potential target market. What type of customers are they looking for to become loyal Hog Wild fans? What niche are they filling in the food service industry today?
Gary Poulton started Hog Wild Pit BBQ in Hutchinson, Kansas on its Main Street location. From there, he expanded the brand out to multiple Wichita, Kansas locations and some other smaller surrounding cities in Kansas. Then, in 2012, he had gone as far as he wanted in the growth of the business. He entered into negotiations and sold his investment in the company to T.D. O’Connell. The new owner has years of experience in restaurant management from being a former restaurant CEO and President and would be able to take it farther in its expansion. T.D. O’Connell is optimistic about the opening of the branch in Lawrence, Kansas (opening June of 2014) and then possible branching into Nebraska and Iowa if the Lawrence branch does well.
Some of the awards that the restaurant has acquired thus far are: Salina Journal’s 2013 Readers Choice Awards, First Place for The Hutchinson News Readers Choice Award 2013, Voted Best in Hutchinson for BBQ Ribs, The Wichita Eagle’s 2012 and 2013 Readers Choice Award Winner. Catering has been a good business move especially in the Wichita area because of the population size. There are many industrial plants, medical, and health fields in the surrounding area that use Hog Wild’s catering service for their employees and this keeps the business very busy. The Hutchinson restaurant has a very good but also busy location which is right on Main Street that sees heavy traffic daily. That branch has not yet expanded, but should. It has a very busy drive through, but due to its location vehicles back out onto Main Street in the busiest hours of the day. The kitchen is small but friendly. The atmosphere is very casual and the people are very well trained on their menu items. They have a very large selection of succulent meats with sides and toast. There is a condiments bar with ketchup, mustards, pickles, onions, and peppers. They have about nine booths, and 10-12 tables with checkered tablecloths to seat people. They have a niche in the food business that includes a plate of BBQ and sides for fewer than eight dollars and a drive through and catering to go with. Many consumers want the convenience of a drive through with food that you might have eaten at a backyard BBQ. This brings value with also offering that home BBQ flavor off the grill that so many like.
The target market for the restaurant would be non-vegetarian women or men that are between the ages of 20-60, single, couples, or young families, who are in a hurry and want a home-cooked meal. These target customers are looking for a family meal where they can choose to dine in or out (drive through) or have it catered to their gathering. There are many industrial factories around the area and farming is a large industry so beef, pork, and turkey are local favorite meats. This is the type of food that you would expect to see at a neighborhood picnic, but in today’s mad rush most people don’t have the time to smoke it themselves. So for them, this is fast, home-cooked, backyard BBQ taste is the answer!
What if we analyze the opportunity against Porter’s five forces of the niche to see how strong it holds up? The following is a chart of the five forces on a niche.
http://www.caneval.com/images/pictures/fiveforcesmodel.jpg
(Chart accessed from Caneval Ventures, 2013)
New Entrant, Industry Competitors, Rivalry Determinants
Starting at the top of the chart with new entrant threats and competitors, it is possible to analyze threats to Hog Wild’s Franchising opportunities. Hog Wild’s best strategy is to pursue the Best Value, Type 5 from Porter’s generic strategies (David, 2012). Below is a list of seven top BBQ style restaurants in US according to a report from Nations Restaurant News, 2013:
Famous Dave’s BBQ is based in Minnesota but since then it’s simple menu and small restaurants have spread out into 192 units worldwide including Canada, Mexico, and now internationally franchising. By far this is one of the biggest competitors of Hog Wild’s brand because it is already franchising internationally. This can also be a model for Hog Wild brand because it too may have the possibility to break into international markets with demand for similar products in the future.
Dickey’s Barbecue Pit was founded in Texas in 1941 and started franchising about 20 years ago. It has grown to 311 units in 39 states as of 2013. It is famous for pulled pork and brisket as well as many other meats, 10 types of vegetables, desert, and free ice cream. Their brand is smaller and less of a threat but the large variety of vegetables can broaden the menu for vegetarians and the free ice cream brings families with children to the restaurant. Good concepts to monitor the competing brands success in.