Kudler Fine Foods

Problem Statement: Kudler Fine Foods

In order to continue expanding and profiting, Kudler needs to reassess some of their business practices. As stated in Kudler’s strategic plan, their mission is to provide gourmet food products to help culinary visions come true (3). However, there are key aspects that need to be re-evaluated to ensure their mission is fulfilled.

The employees are obviously critical to Kudler’s success. The morale seems to be lagging as each employee has to do more than one job. In addition, Kathy is monopolizing the business. This in itself causes concern as she is not only losing employee morale but also time for customer interaction. To resolve this, Kudler should consider focusing on their two profitable locations and hire outside help. In fact, Kudler has addressed this issue in their strategic plan stating Kathy acknowledges she should consider hiring outside management to assist with purchasing and inventory tracking (9).

Kudler’s is very much geared towards higher income levels, which is working at the La Jolla and Encinitas location but not Del Mar. Even though Del Mar’s median household income in 2000 was $98, 257, the store has made just enough profit to break-even (5). The area has a small population around 4,400 (9) but it hasn’t garnered enough consumer interests for gourmet food products. The business wants to expand too fast, which is cause for concern. For example, Kathy would like to open a store in San Francisco. Income levels are high in this area, but exotic or gourmet food can be found at other locations for cheaper prices in the city. Thus, Kudler will be competing with other specialty food stores to stay afloat. Focus should be placed on the two profitable stores for 2-3 years before another expansion occurs.

Kudler Fine Food is a unique culinary business, but there is too much micro-management by Kathy. With the correct management action, Kudler could be a very successful business. They have high quality food...