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May 2016 (Revised September 2017)
Case

Pal's Sudden Service—Scaling an Organizational Model to Drive Growth

By: Gary P. Pisano, Francesca Gino and Bradley R. Staats

Pal's Sudden Service has developed a unique operating model and organizational culture in the quick service restaurant business. With a deep emphasis on process control and improvement, zero defects, extensive training, and a high level of employee engagement, Pal's... View Details

Keywords: Growth Strategy; Corporate Culture; Operations Strategy; Motivation; Values; Motivation and Incentives; Strategy; Values and Beliefs; Service Operations; Organizational Culture; Growth and Development Strategy; Service Industry; Food and Beverage Industry

May 1998 (Revised October 2001)
Case

Taco Bell Inc. (1983-1994)

By: Lynda M. Applegate, Leonard A. Schlesinger and Dave DeLong

Details the actions of John Martin, newly named CEO, as he leads Taco Bell through a decade of incremental and radical changes. By the end of the case, total system sales within Taco Bell, a Mexican style fast-food restaurant chain and a division of PepsiCo, have grown... View Details

Keywords: Business Subsidiaries; Transformation; Economic Growth; Food; Leadership Style; Growth and Development Strategy; Organizational Design; Performance Effectiveness; Food and Beverage Industry; Service Industry; Mexico

May 2014 (Revised January 2015)
Case

Gastón Acurio: A Recipe for Success

By: Anat Keinan, Michael Norton, German Echecopar and Cintra Scott

Gastón Acurio, star chef and restaurateur from Peru, must decide whether and how to adapt his signature Peruvian cuisine to local tastes as he opens restaurants in new countries. View Details

July 2008 (Revised March 2010)
Case

McDonald's Plan to Win (A)

By: Ramon Casadesus-Masanell, Karla Ingrid Gravis and Annette Kristine Rodriguez

As of 2007, McDonald's had made significant progress on its “Plan to Win,” and the company was rewarded by reaching an all-time high share price. However, McDonald's competitors had expanded beyond the typical fast food giants, such as Wendy's and Burger King, as... View Details

Keywords: Business Model; Competitive Strategy; Complexity; Supply and Industry; Retail Industry; Food and Beverage Industry

16 May 2016
HBS Case

Food Safety Economics: The Cost of a Sick Customer

in some cases, less finished-product testing. Outsourcing food safety testing A growing number of food manufacturers, grocery stores, and restaurants are choosing to outsource some or all of their food testing—and in many cases, they are... View Details

Keywords: by Dina Gerdeman; Food & Beverage

July 2016
Teaching Note

Launching Yelp Reservations

By: Michael Luca, Kevin Mohan and Patrick Rooney

This teaching note accompanies "Launching Yelp Reservations (A) and (B)," which present a multi-party negotiation among Yelp, current partner OpenTable, and two startups in the online restaurant reservation industry. View Details

Keywords: Information Technology; Negotiation; Business Startups; Acquisition; Technology Industry; United States

May–June 2023
Article

Which Firms Gain from Digital Advertising? Evidence from a Field Experiment

By: Weijia Dai, Hyunjin Kim and Michael Luca

Measuring the returns of advertising opportunities continues to be a challenge for many businesses. We design and run a field experiment in collaboration with Yelp across 18,294 firms in the restaurant industry to understand which types of businesses gain more from... View Details

Keywords: Advertising; Digital Marketing; Outcome or Result

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2022
Working Paper

Getting on the Map: The Impact of Online Listings on Business Performance

By: Michael Luca, Abhishek Nagaraj and Gauri Subramani

We evaluate the extent to which small businesses maintain an online presence, looking at restaurant listings on a major online review platform. While the majority of restaurants have an online presence, we find that roughly 18 percent in our sample have no presence as... View Details

Keywords: Small Business; Internet and the Web; Revenue; Digital Marketing; Food and Beverage Industry

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2011
Case

Wrapitup

By: W. Earl Sasser

A restaurant chain based in California offers made-to-order sandwich wraps using fresh, healthy ingredients. The founders of the company take a very active role in day-to-day business and tightly control every aspect of the restaurant operation from hiring store... View Details

Keywords: Service Operations; Governance Controls; Revenue; Employee Relationship Management; Planning; Customer Satisfaction; Problems and Challenges; Profit; Change Management; Compensation and Benefits; Leadership Style; Service Industry; California

August 2016 (Revised January 2020)
Case

Breakfast at the Paramount

By: Ryan W. Buell

The Paramount is a 44-seat diner on Charles Street in the Beacon Hill neighborhood of Boston. A frequent "Best of Boston" award winner, the restaurant is a perennial favorite among locals and tourists, particularly for brunch on the weekends, when lines often stretch... View Details

Keywords: Food; Management Practices and Processes; Service Delivery; Service Industry; Food and Beverage Industry; Boston

September 2024
Case

Eat App: Building and Monetizing an End-to-End Dining Experience Solution

By: Elie Ofek and Ahmed Dahawy

Founded in 2015 in Bahrain, Eat App was an up-and-coming player in the global restaurant management software business. In early 2024, having shifted to a product-led growth strategy, the company’s co-founders faced a host of decisions that could greatly impact their... View Details

Keywords: Price; Growth and Development Strategy; Product Marketing; Negotiation Deal; Internet and the Web; Value Creation; Food and Beverage Industry; Technology Industry; Bahrain; United Arab Emirates; Abu Dhabi; Dubai

September 2017
Case

From 80 Thoreau to Mooncusser Fish House & Moon Bar (A)

By: Lena G. Goldberg and Sandra Bahous

After extensive planning, Ian Calhoun, (MBA 2010) who was also a chef trained in Paris at Le Cordon Bleu, and two co-founders launched 80 Thoreau, a “progressive fine dining” restaurant in Concord, Massachusetts, that became a local favorite as well as a special... View Details

Keywords: Small Business; Expansion; Decision Choices and Conditions; Consumer Products Industry; Food and Beverage Industry; Boston; Cambridge

04 Oct 2011
Working Paper Summaries

Reviews, Reputation, and Revenue: The Case of Yelp.com

Keywords: by Michael Luca; Food & Beverage

December 2016
Article

Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

By: Michael Luca and Georgios Zervas

Consumer reviews are now part of everyday decision making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit... View Details

Keywords: Ethics; Marketing Reference Programs

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September 2020 (Revised October 2020)
Case

Briscola—Pizza Society: Scaling Affordable Luxury

By: Gary P. Pisano and Federica Gabrieli

Riccardo Cortese and Federico Pinna were the CEOs of Briscola—Pizza Society, a restaurant chain they had founded in 2014 with a clear ambition: create a distinctive international pizza chain that would combine a fast-casual format with the devotion to quality that... View Details

Keywords: Entrepreneurship; Growth and Development Strategy; Expansion; Geographic Location; Business Model; Ownership Type; Food and Beverage Industry; Europe; Italy

January 2019 (Revised January 2020)
Case

Chiacchierone's Owners Chat About Tipping

By: Lena G. Goldberg and Michael S. Kaufman

The founders of a successful upscale restaurant operating with a "no-tipping" policy are faced with employee defections to tipped establishments as well as difficulty in recruiting. They must decide whether to retain or jettison their policy and determine how to deal... View Details

Keywords: Compensation and Benefits; Employees; Policy; Food and Beverage Industry

18 Oct 2011
First Look

First Look: October 18

expenditures, general consumer inability to budget and forecast, bank incentives, and community norms and social capital. Furthermore, using both national data and a natural experiment, we find that access to payday lending seems to lead to higher rates of involuntary... View Details

Keywords: Sean Silverthorne

November 2011
Case

WrapItUp: Developing a New Compensation Plan

By: W. Earl Sasser Jr. and Rachel Shelton

A restaurant chain based in California offers made-to-order sandwich wraps using fresh, healthy ingredients. The founders of the company take a very active role in day-to-day business and tightly control every aspect of the restaurant operation from hiring store... View Details

Keywords: Empowerment; Middle Management; Human Resource Management; Compensation; Incentives; Motivation; Motivation and Incentives; Change Management; Business Growth and Maturation; Service Delivery; Entrepreneurship; Employees; Compensation and Benefits; Service Industry; Retail Industry; Food and Beverage Industry; California

December 1998 (Revised May 1999)
Case

Flagstar Companies, Inc.

By: Stuart C. Gilson and Jeremy Cott

A large restaurant chain undergoes a leveraged buyout and subsequent recapitalization. Financial and operating problems at the company force it to consider various restructuring options, including a "prepackaged" Chapter 11 exchange offer to its public bondholders. A... View Details

Keywords: Leveraged Buyouts; Restructuring; Capital; Insolvency and Bankruptcy; Debt Securities; Financial Services Industry; United States

Research Summary

Crowdsourced reviews

To determine whether online consumer reviews influence the way that reputation is formed, Professor Luca has combined reviews from the website Yelp.com with public restaurant data. He has shown that a one-star increase in Yelp ratings results in a 5- to 9-percent... View Details

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