The Dabba Food Factory is a set up engaged in serving and home delivering…
NIFT 2017 · Case Study · 4 questions
The Dabba Food Factory is a set up engaged in serving and home delivering vegetarian meal including breakfast, lunch and dinner It has got 32 outlets in and around Delhi and is known for reasonably priced, well cooked and clean food. It has also got tiffin supply system. Most of its outlets being in the vicinity of educational institutions such as the university, it caters to about -4000 students on a regular basis. Its turnover at present is approximately figure per annum. Very recently, it has got an offer from an international chain - LpTune - for franchise tie-up at a license fee of ₹4 crore per annum. With Loline brand name, it will be able to cater to the corporate clients too for their regular tiffin requirements and it will be able to charge a price premium of almost 10%. A recent survey indicated that its student population is likely to shift to another similar set up the moment the Dabba Food Factory becomes a franchise of Lp Tune.
Question 1
The assumption made by students in shifting to another supplier on Dabba Food Factory tying up with Lp Tune is that
DesignPT