Some of the risks in growth strategies and operations for Zaxby’s include:
1. COVID and other pandemic outbreaks:
Zaxby’s, like almost all other businesses, has been affected by the COVID 19 pandemic. They fear that further factors like this outbreak may hinder staffing their outlets, and even in extreme cases, may make it more difficult to get necessary ingredients and increase commodity costs.
2. Failure to design and execute appropriate growth strategies:
Since their success depends on identifying and executing successful business strategies, there is a risk that they might not be able to identify appropriate strategies successfully in the current industry environment or may not be able to execute them properly.
3. Failure to find suitable locations for their new shacks, or open these shacks timely or with conditions that they would prefer.
Factors that might implement the timing of opening these new shacks that the company plans include: difficulty finding attractive lease terms, shortage of labor, difficulty in finding permits to start these shacks on a timely basis, etc.
4. Risks associated with expanding to new and unfamiliar locations:
Since Zaxby’splans to expand to new markets, ones that they are not familiar with, this might present additional risks to success, with diverse consumer tastes and preference patterns being difficult to predict. Additionally, with expanding to any new location it takes longer to reach the targeted level of sales, and can possibly be too much to bear for the company at that time.
5. Incidents involving food safety and food-borne illnesses could adversely affect guests’ perception of our brand, result in lower sales and increase operating costs.