THE RED CRAB GROUP - Case Study Analysis - by R090205

THE RED CRAB GROUP

Developing Multi-Brand Restaurant Concepts

Case Study Analysis

By: R090205 (CTG)

Situation
The Red Crab Group developed various business restaurant concepts catering various market segments. The evolution of different business restaurant concepts came about because of the opportunities presented to them that they need seize. Also because of their drive to be not just a Filipino restaurant or just a crab and seafood restaurant but to be known as a house of brands – a house of world class restaurant concepts. The Red Crab Group had established various crab and seafood restaurant namely Red Crab Seafood and Steaks, the Seafood Club, Crustasia, and Blackbeard's Seafood Island and the newest concept, a non-seafood place, Heaven 'N Eggs. With the opening of the latter, Raymund, the owner, come to conclude one thing, "We are now more than just a crab and seafood group," he said.  

Problem
How will Red Crab Group maintain sustainable Supply Chain Management (SCM) for all restaurants with different concepts?

Alternatives
As far as the case is concerned, there is no mentioned information on how they get their supplies. As the business concepts grows, the need of sustainable Supply Chain Management must establish.

1. The Red Crab Group may consider supplying their own requirements such as crabs, shrimps, fish, etc. to maintain the quality and quantity of their supplies.
2. The Red Crab Group may consider directly going to their suppliers and avoid having middlemen. To sustain their supplies, they must have various suppliers.
3. The Red Crab Group may consider both supplying their own and having outside suppliers especially on the crab and seafood requirements. 

Decision
Among the alternatives, the third option is better. Considering the requirements of various restaurants, for example, Crustasia sales of crab is only about 20% of their sales, they may consider acquiring the crabs from other suppliers because of a very minimal need of crab supplies. Unlike with their other crab and seafood restaurants, majority of their sales are crab thus, it is advisable for them to supply this huge demand on their own.  

Action
The Red Crab Group should be the supplier of their own restaurants especially when it comes to the crab and seafood to maintain the same quality of their supplies at their various restaurants. They should have their own ponds located strategically to supply their own demands for crabs, fish, other seafood, etc. for their various restaurants. Red Crab Group may consider investing in using Enterprise Resource Planning (ERP) system for their Supply Chain Management (SCM).