Strategies In A Disruptive World Business

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Las Muns

OVERVIEW

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’ Strategy and Growth Opportunities

  1. Key Elements of Las Muns’ Strategy:
  • Focus on operational efficiency:Learning from initial mistakes, Las Muns prioritized efficiency by opening kiosks and take-away outlets instead of full restaurants. Their own factory further streamlines production.
  • Omnichannel presence:They cater to customers through various touchpoints – physical stores (owned & franchised), delivery platforms, and supermarkets (“bake at home” option).
  • Quality over indulgence:They position themselves within the QSR segment but emphasize fresh, high-quality ingredients, differentiating themselves from typical “junk food.”
  • Urban, on-the-go target audience:Las Muns targets busy demographics like families, office workers, and mobile individuals seeking a convenient, quality meal option.
  • Leveraging competition:They view the growing empanada market as an opportunity, hoping to benefit from increased brand awareness and mainstream acceptance of empanadas.
  1. Actions for Growth and Strengthened Competition:

Disruptive Strategy:

  • Empanada Innovation:Develop unique and innovative empanada flavors and fillings beyond traditional options. Consider seasonal or limited-edition varieties to keep customers engaged.
  • Technology Integration:Invest in mobile ordering and loyalty programs for a seamless customer experience.
  • Sustainability Focus:Implement eco-friendly packaging and source ingredients responsibly, appealing to environmentally conscious consumers.
  • Experiential Marketing:Host events or pop-up locations to create a fun and engaging brand experience, especially in new markets.

Additional Considerations:

  • Franchisee Selection and Support:Rigorous selection and ongoing support for franchisees will ensure brand consistency and quality across all locations.
  • Data-Driven Decision Making:Utilize sales data to analyze customer preferences, optimize product offerings, and personalize marketing campaigns for different platforms and customer segments.
  • Targeted International Expansion:Carefully research and select markets with high potential for empanadas, considering cultural preferences and adapting offerings accordingly.
  • Delivery Optimization:Partner with leading delivery platforms for efficient last-mile delivery and consider offering exclusive menu items or deals through delivery channels.

By combining their existing strategy with these disruptive elements, Las Muns can solidify its position within Spain and expand internationally with a strong competitive edge.

 

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