CASE STUDY

The first Savour Foods restaurant was started with the support of Mr. Naeem’s family in the year 1987. It was a
small restaurant in a small shop near Gordon College, Rawalpindi. The restaurant was comprised of a very small
kitchen and a sitting area with about 20 chairs in it. The things were tough at that time. The shop was opened in
a residential area and there was not much hustle and bustle at that time.

In the beginning the things were not so good for Savour Foods. The profits were quite small and the space was
very limited. But, despite all difficulties,
Savour Foods always maintained its
standard. Special attention was given to
ensure the cleanliness and the quality of food
served to the customers. Here, Mr.
Muhammad Naeem explains that
perseverance was of vital importance. Unlike
many people who keep switching from one
business to another, he kept on working hard
on Savour Foods. He kept on re-investing the
profits in the same business.

In 2002, due to the high demand of high

quality rice Savour Foods built its on rice production plant. The plant was built in Gujranwala district and it
ensures that the rice demand of the Savour Foods restaurants is met on time. In addition to meeting the demands
of its own restaurants, this rice plant also produces rice for the Savour rice brand for sale to the general public.
Savour Foods built a Milk plant as well in 2002. The plant is located in Sargodha district. Fresh milk is collected
from the nearby villages. This milk is then chilled and then it is transported to the different Savour Foods outlets,
where it is used in the making of products like ‘Raita’, ‘Kheer’ and ‘Ice Cream’.

Savour Foods always focused on maintaining utmost quality and therefore couldn’t expand its network in 90s.
Once its all process has been updated to adapt technology and to bigger level of production, Savour Foods was
taken to Islamabad first of its kind food street at melody Food Park. Later on Savour Foods established its bigger
and well-managed branch at business hub of Islamabad, Blue area. Soon after this, Savour Foods further expanded
its network to newly established food street at Pindi Cricket Stadium. One of the biggest milestones for this
restaurant chain was to move outside twin cities, thereby opening first of its outlets in Lahore. It was a critical
decision for this famous chain as Lahories are very fond of taste.

Mr. Muhammad Naeem, CEO and founder of Savour Foods has finally let people know the recipe for success.
He explained that affordable prices and high quality is the key to success in food industry. According to Savour
Foods has been able to maintain low prices by removing the middleman from its purchases. The company
purchases, beef, chicken, milk, and rice directly from the producers. In addition, Savour Foods does not have to
pay the hefty expenses on advertisements it is being acted by word of mouth by serving and satisfying large
customer’s base.
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Questions: Read the given case study carefully and answer the following questions.

(a) Discuss various expansion strategies used by Savour Foods to expand its business.
(b) How Savour Foods came up with lower costs? Discuss.
(c) Develop a SWOT analysis for Savour Foods.
(d) Discuss any three factors responsible for the Success of Savour Foods?
(e) Based on the given case study and the SWOT analysis, suggest a business expansion Plan for Savour
foods.

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