Mel’s County Café was started in 1977 by Weirich family. It was founded by Richard Weirich for his wife Mary, and it was initially called Mary’s Fried Chicken. The café was renowned for using ingredients available in the local farms and their home-cooked meals. Mary’s fried chicken changed its name to Mel’s Café named after their only daughter. In 1992, the business went through a rough time with Mary’s passing away. However, the business picked up in 1994 and rose back to its previous success. The business expanded its menu with more varieties of burgers being introduced. Further, it has been doing well with most of the family members joining in to help with its running.
Evaluation of the Business Model
A business model can be simply defined as a framework or plan for owning and operating a business. It is what determines whether the business will be successful or fail. Business models entail the services and products the company provides and how it delivers them to its customers. Pricing structures and payment for services and goods sold is also included in the business model. A sound business model is crucial because it ensures a long-term thriving of the business in question. In order to make the right decision on whether to buy an already existing business, there is the need to conduct an evaluation of the business model before making the decision. The following aspects are what one should take into consideration when evaluating a business model.
How profitable is the venture? Profitability is very important because of how profitable a company or business is determining the survival rate of that particular business in the long term. Profit is analyzed after all the business expenses have been covered and the products have been delivered to the consumers. Income statements are required here in order to assess the profitability of the business. Over the years, Mel’s Country Café has been quite profitable because it has expanded greatly and employed more staff. It has expanded its menu to include a variety of burgers and more of country favorite dishes such as chicken fried steak and fried catfish. With this rate of profit, Mel’s Country Café promises to be a business that will continue to grow in the future.
Simplicity in Running the Business
For a business to be successful, it needs to apply a business model that is clear and easy to run. A business whose operations are run on a chain of events is more vulnerable to disruptions and obstacles. Implementation of the business plans becomes very difficult in such a situation. However, a company with clear operations information is less vulnerable in terms of risks and failure in plan implementation. Mel Country Café is the business whose operations are very clear and simple to understand. The fact that the business is run by a family makes it so easy to plan and implement those plans in order to achieve its goals.
Longevity of the Business
A business model that is based on selling products or services that are a fad usually tends to phase out as soon as something better hits the market and does not survive in the long-term. Therefore, a business model needs to base on selling products that will always be in demand no matter the changes that occur in the market. Such products include food products. Mel Country Cafe is a very viable business with great longevity because it deals with food. As long as man exists, food will always be trendy and demanded.
Portability
Replicating some business models such as franchise in a range of locations is possible as long a