Wil’s Grill SWOT Analysis

Wil’s Grill SWOT Analysis Internal External Strengths

•  Strives to make healthy, clean, fresh food that is locally sourced and sustainable
•  Core value of hospitality-driven service: treating customers like friends
•  Varied menu
•  Zero debt
•  Highly portable, no long-term leasing costs
• Strong reputation among those who have been served
•  Use of technology- website, mobile app, social media 
• Solid relationships with food suppliers

Opportunities 

• Growing interest in clean food, health, and the environment and these trends are reflected in the Northern Arizona community
• Growing reputation as street vendor 
• Catered events are more profitable, target a more affluent demographic, and involve less guesswork than street events Weaknesses
• Sourcing food locally is still often more expensive 
• Not widely known- 72% of survey respondents had never heard of Wil’s Grill
• No permanent employees
• Prices vary upon event 
• No client base in catering
• No experience in catering
• would require new staff and training, kitchen equipment, logistics, and a cargo trailer
• all new expenses 
• No permanent kitchen or office

Threats 

• Street events involve a lot of uncertainty and estimates
• weather and attendance are unpredictable
• Winter weather limits the number of events involving street food 
• Large competitors in catering have been established for decades

John Christ should continue to focus on the street vending market for now, leveraging the strengths, experience, and reputation Wil’s Grill has gained over its first 3 years of operation.

By maintaining its singular vision on clean street food, Wil’s Grill can further develop its brand image and spread name recognition more widely across Northern Arizona. And by doing so, Wil’s Grill can patiently prepare for a more successful transition into the catering business due to a larger client base and more funds available for reinvestment.

There is no doubt that the catering business is more profitable and more predictable than street vending. Profit margins are around 40%, clients are generally more affluent, menus and attendance are set in advance, and business is not affected by winter weather. These opportunities make it worthwhile to consider adding a catering side to Wil’s Grill; however, its weaknesses are still glaring. Wil’s Grill has no experience in catering, meaning no client base, no equipment, no staff trained for catering events, and new logistics. Adding up all the startup costs of entering the catering business presents a hefty sum; John estimates $25,000 in just kitchen equipment expenses for the first year ($16,000 more than if he were to just continue street vending), as well as $7,500 in marketing expenses.

This would necessitate incurring debt, but the risks are too high, considering competitors in catering are quite large and established, with client bases and reputations built over decades. It would be difficult for Wil’s Grill to break this barrier of entry even if it were to take out loans. Thus, it would be wise for John to continue to grow the scale of Wil’s Grill street vending by attending more events. Spending some more time on solely street vending will negate or decrease the severity of its weaknesses.

The larger scale would likely lead to higher profit margins, increased revenue and net operating income, wider name recognition and clientele, and further forge its brand as a hospitable, clean food option. These collectively mean that when John does decide to enter the catering business later on, he won’t have to incur debt and more than 28% of people will have heard of Wil’s Grill. Then, Wil’s Grill can enter the catering space with a more established brand and client base, with added experience but without the risk of loans.

Works Cited

1. Hostetter, Leonard R., and Nita Paden. “Wil’s Grill.”
2. ?Case Research Journal?, vol. 37, no. 4, 2017.

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