Las Muns

at
Categories
Tags

Las Muns is an empanadas concept founded in Barcelona in 2013 by Mariano Najles. The brand first launched as a restaurant but soon after opening Mariano

understood the strategic mistakes, he had taken due to his own lack of experience and market knowledge. Learning from the strategic mistakes, Las Muns focused

on operational efficiency and by 2017 they had opened 6 kiosks / take-away retail outlets in Barcelona. With new investors coming in the company in the same

year, they also opened their own factory in Barcelona with a potential to supply over 40 outlets. By 2019 they opened their first store in Madrid and expanded

the number of outlets to 14, and 18 by 2020. Outlets are both own as well as franchised outlets. Today Las Muns are present all over Spain with 45 outlets, with

presence in Portugal, and with a plan to open 15 more outlets this year. The company is currently drawing up a strategy for international growth through

franchising and they have a number of contracts to sign for Canada, Europe and the Middle East. Additionally, Las Muns is also available in over 600 supermarket

outlets offering their “bake it at home” empanadas, and they also operate on platforms such as Glovo.

Las Muns operates in the Quick Service Restaurant (QSR) segment, and their business model revolves around “Fast food but not junk food,” targeting urban

families, office workers, and people who are on the move. Competition is fierce and growing, but Mariano sees this as a positive as growing competition makes

empanadas more mainstream.

70% of their revenue come from sales in their outlets, 23% from delivery, and 7% from retail (supermarkets).

Given that Las Muns are set to ride a new wave of growth, please define and expand on a disruptive strategy for growth:

questions:

1. What are the key elements of Las Muns strategy?

2.What actions should be taken to grow and strengthen the company’s efforts to compete successfully against its rivals?

Sample Solution

Las Muns has a strong foundation for further growth, but considering their desire for disruption, here’s a breakdown of their current strategy and potential disruptive approaches:

  1. Key Elements of Las Muns’ Strategy:
  • Focus on Operational Efficiency:Their initial pivot from restaurants to kiosks demonstrates a commitment to efficiency and cost control.
  • Omnichannel Presence:Las Muns offers dine-in, delivery, and retail options, catering to diverse customer preferences.
  • Franchise Expansion:Utilizing franchising allows for rapid geographic growth and shared investment across markets.
  • “Bake at Home” Option:Expanding retail availability increases brand reach and convenience for customers.
  • Quality over Traditional “Fast Food”:Positioning themselves as a healthier alternative within the QSR segment attracts health-conscious consumers.
  1. Disruptive Growth Strategies:
  • Empanada Subscriptions:Offer subscription boxes with curated or customizable empanada selections delivered to homes or offices.
  • Empanada Automation Kiosks:Develop automated kiosks where customers can personalize and assemble their own empanadas.
  • Cloud Kitchens and Delivery Optimization:Partner with cloud kitchen platforms for faster delivery in densely populated areas.
  • Targeted Social Media Marketing:Utilize social media platforms like Instagram and TikTok for trendy empanada recipe challenges or influencer marketing.
  • Sustainable Packaging and Practices:Implement eco-friendly packaging and source ingredients responsibly to attract environmentally conscious customers.
  • Empanada Vending Machines:Explore placing vending machines in strategic locations like office buildings, universities, or transportation hubs.

Additional Considerations:

  • Menu Innovation:Regularly introduce new and seasonal empanada flavors or fillings to maintain customer interest.
  • Technology Integration:Develop a user-friendly mobile app for ordering, loyalty programs, and personalized recommendations.
  • Experiential Marketing:Host pop-up events or interactive experiences to promote the brand and create a sense of community.
  • Strategic Partnerships:Partner with complementary businesses like coffee shops or grocery stores for co-branding opportunities or bundled promotions.

These disruptive strategies can help Las Muns stand out in the competitive QSR landscape. By combining their existing strengths with innovative approaches, they can capture new market segments, enhance customer engagement, and solidify their position as a leader in the empanada space.

Remember: Successful disruption requires careful planning, market research, and a willingness to adapt and learn. By constantly innovating and staying ahead of trends, Las Muns can continue its impressive growth trajectory.

 

This question has been answered.

Get Answer