Prego Gourmet

: critical decision in the expansion strategy

Abstract

Prego Gourmet is a Portuguese fast food chain, known for having transformed a traditional Portuguese product, the prego, into a refined and unique version which can be eaten as sandwich or not. Started its operations in 2011 at Amoreiras Plaza in Lisbon and nowadays all the stores are strategically positioned inside shopping malls in the area of Lisbon. The founding partners know that Prego Gourmet is a project in expansion, with nine own stores and the perspective of many more not only in Portugal, but also over borders. The main purpose of this dissertation is to analyze strategic decisions and real challenges that Prego Gourmet will face in the future. As business developers, the partners believe that their strategic objectives have to be based on a well-planned and sustained growth during the next years. The market acceptance have exceeded the expectations, and this work also aims to study the key success factors and reasons that contributed to the surprising penetration/adherence in this competitive and saturated fast food market. This dissertation is a prospective analysis of what should be the next step for Prego Gourmet regarding its expansion strategy. João Cota Dias, partner of Prego Gourmet, will face a strategic dilemma which consists on the one hand expand throughout Portugal setting up a franchising model to optimize internal managerial practices, creating conditions for future internationalization, or on the other hand start immediately the internationalization process. Is Prego Gourmet really prepared to initiate the internationalization process? Should not first grow domestically to ambition international expansion, since Prego Gourmet is not yet organized as franchising model? Relevant topics are going to be addressed on the Literature Review section, such as critical aspects on managing brands, franchising system and critical factors that lead to a successful internationalization. The Prego Gourmet’s case study aims to give a broader view of the Portuguese and Brazilian fast food market as well as addressing the future challenges of the international strategy. The main conclusion from this study is that Prego Gourmet to achieve a successful internationalization should first grow in its domestic market using franchising model. In order to gain business knowledge and experience to be more prepared to overcome the main challenges in the internationalization process.

Date of Award	10 Jul 2014
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Celeste (Supervisor)