Pho 24 – Vietnamese Franchise System
MODULE 1 1. Brief history of the chosen company. 2. The company’s mission statement: Mission, Vision, Major Goals, Core Values. 3. Some preliminary evaluation of the CEO’s leadership capabilities in comparison with key characteristics of good strategic leaders. Question 1. Brief history of the chosen company. 1. Introduction PHO24 used to be a Vietnamese noodle restaurant chain belonging to Nam An Group, the biggest F&B Corporation in the country.
Apart from PHO24, Nam An Group has owned and operated many other different F&B brands including An Vien Restaurant, Maxim’s Nam An Restaurant, ThanhNien Restaurant, An Restaurant, Goody Ice Cream, Goody Plus Ice Cream, Ibox Cafe, etc. The first PHO24 outlet was opened in June 2003 on Nguyen Thiep Street, opposite to the prime landmark Saigon Sheraton Hotel. By June 2010, PHO24 has opened 77 outlets in Ho Chi Minh City, Ha Noi, Da Nang, Vung Tau, NhaTrang, Binh Duong, Jakarta (Indonesia), Manila (Philippines), Seoul (Korea), Phnom Penh (Cambodia), Sydney (Australia) and Hong Kong.
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PHO24 plans to open more stores in all major cities of Vietnam as well as in overseas markets, where there are extensive Asian populations. The founders believe that PHO24’s business concept is unique but easy to multiply due to its small space requirement, low investment, standardized operational procedures, and most importantly, the top quality of the food. Now, PHO24 noodle restaurant chain belongs to VTI, owner of Highlands Coffee, Hard Rock Cafe, Emporio Armani, Swarovski, Aldo, La Vie En Rose, Debenhams, Coorslight, Orangina… 2.
Brand name: PHO has been the most famous dish of Vietnam but it was only known as street food for many decades. Therefore, the founders of PHO24 saw this is an excellent opportunity to create a new business concept that meets the high standards but still preserving the traditional value. After nearly two years of market research – especially the customer’s taste – PHO24 has invented a unique flavor for PHO’s broth derived from 24 top-quality ingredients and spices. The number 24 is meaningful for Pho 24 * Pho 24 locations open 24 hours. Pho 24 also uses a total of 24 ingredients and spices in its pho broth * Diligently stewed for 24 hours before it is served. * The 24 ingredients plus the thorough preparation process ensures that the pho broth at Pho 24 has a rich and sumptuous flavor, according to the company. * The broth recipe is the same in all Pho 24 locations, as is expected for any food franchise. So wherever Pho 24 takes its pho dishes, you should get the same rich flavor and taste of its pho. This is key to a successful franchise and it’s why the pho experience offered by Pho 24 is fast picking up in worldwide popularity.
PHO24 has been consecutively the winner of The Guide Awards voted by readers of Vietnam Economics Times, ThoiBaoKinhTe Viet Nam and Tu Van Tieu Dung magazine during 6 years from 2004 to 2009. In 2008 Pho24 was voted as an International Franchiser of the Year, accepted by FLA Singapore. In 2010, PHO24 is one of the top 10 “Ho Chi Minh City – One Hundred Excitements” which voted by travelers. 3. The Milestone of The Company: 2012 : target to reach 200 outlets total 2010 : target began to open shops in China and Japan. 12/2009:Franchise stores open at No. South Korea and Hong Kong, bringing its total stores to 73rd (more than 57 stores in the city. HCMC),with16 stores in foreign countries (Indonesia, Cambodia, Korea, Philippines, and Hong Kong). 8 / 2009: New franchise agreements in Hong Kong and Macau. Will open its first store in Hong Kong and Macau in October 10/2009 3 / 2009: Total number of noodle shops in Vietnam and 24 foreign countries has reached number 70 after six years in operation 9 / 2006: Pho 24 and VinaCapital – the leading financial companies in Vietnam – officially signed a cooperation and investment. / 2005:Open the first franchise in foreign countries (Jakarta, Indonesia). We have 6 noodle shop in Jakarta on 24 November 2008. 1 / 2005:Open the first franchise store in Ho Chi Minh district, followed by a few other shops in the major cities of Vietnam like Da Nang, NhaTrang,Vung Tau, BinhDuong … 12/2004:Opens first store in Hanoi, the capital ofVietnam and also the “capital of pho” 6 / 2003:Opens first store at No. 5 Nguyen cards, district 1, Ho Chi Minh City. Shop quickly became popular destinations for tourists and residents. Question 2.
The company’s mission statement: Mission, Vision, Major Goals, Core Values. Pho24’s Vision: “To be the number one Vietnamese Pho and Noodle Brand in the world. ” Pho24’s Mission: “To be the Global Category Developer for Chain Pho with the Objective of being the first mover in each market we enter. ” Pho24’s major goals: “Make PHO24 become the number one and the most famous Vietnamese Pho and Noodle Brand in the world. ” Pho24’s core values: “Always make customers come to PHO24 with great expectations and to leave with full satisfaction. ” Business Philosophy: Everything we do is based on quality, customer service and integrity. We believe that repeat customers are the lifeblood of our business. We also trust that new customers are valuable energy for our business development. Therefore, we invite our guests to come to any PHO24 outlets with great expectations and to leave with full satisfaction. We only select franchisees that can share and convey our high standards to our customers” Question 3. Some preliminary evaluation of the CEO’s leadership capabilities in comparison with key characteristics of good strategic leaders. Ly Quy Trung was born in 1966 in SaiGon.
He founded Nam An Group. Subsidiary Pho24 noodle soup chain is the largest chain restaurant in Vietnam. Nam An Group also acts as general distributor for foreign food brands such as Australian franchise Gloria Jean’s Coffees, Canadian frozen yogurt vendor Yogen Fruz and Singaporean bakery chain Bread Talk. The Group wholly owns a dozen restaurant chains in Vietnam, including Maxim Nam An gourmet restaurants and Cafe Terrace bistros. According to the aforementioned qualifications, we can identify some key features which all converge in Ly QuyTrung, the successful CEO of Pho24:
Firstly, he has very good vision and wide perspective. In order to develop Pho24 to be the world wide branch to rival with McDonald’s or KFC, from the very first days, Ly QuyTrung has invested in R&D or qualification testing, while other people said that they are not necessary for such a Vietnamese restaurant. He is a consistent leader. Being well aware of his company’s position in the market, in spite of the fact that there are a lot of new competitors like Pho Vuong, Pho Cali, etc. Ly Quy Trung believed that they are not his main rivals. He was confident to claim that the quality of the foods and services, along with the prestigious branch are not something that we can create in the short term of time. He was cared about the domestic market. But that is not everything, his main strategy is to make traditional dish of Vietnam – pho – become a fast food franchise appeared over the world. It is clearly shown in the vision of Pho 24: “To be the number one Vietnamese Pho and Noodle Brand in the world”.
Finally, he has willingness to delegate and empower, which is needed to be a good leader. By choosing franchise business model, Ly Quy Trung made decision of building a chain of restaurant about traditional food, spreading it over the world. He built the secret recipe for his dish, created the dining environment and other differentiation factors for his brand names. Then, he didn’t have to control all the chain but only be the managers and controllers, taking care about the quality of products and services in chain restaurants.
Empowering people like that, he has created jobs for thousands people, changed the habit of the Vietnamese of eating n sidewalk not good for health, as well as made a nice appearance of traditional food for the foreigners – an efficient way to represent our culture and promote Vietnamese tourism. In conclusion, Ly Quy Trung is a successful talented leader. Although there has been more and more difficulties, Pho 24 still strives to contribute for Vietnam economic development and make their brand famous and popular in over the world.