Bubba Gump Shrimp Co.

: A US-based restaurant chain is

going international
Originally Bubba Gump Shrimp Co. started out in 1972 with the launch of Rusti Pelican Restaurants in
California, USA. In 1996 the restaurant company Bubba Gump Shrimp Co. (holding company) started up in San
Clemente as a licensing partnership between the Forrest Gump film makers, Paramount Pictures, and Rusty Pelican. The
first restaurant opened at Cannery Row inMonterey, California.

Bubba Gump’s own research revealed that the name brought instant recognition and association with the
movie. The research showed that there was a 94 per cent unaided awareness of Bubba Gump because of its association
with the film. Forrest Gump was in the all-time top five grossing films when the concept launched, so the resulting
restaurant brand had instant appeal. The restaurant brand connected with the film property.

For the Paramount Picture licensing division this has been the single most successful restaurant brand to have emerged
from a film property to date. It is also worth noting that the success of the restaurants has, in turn, supported
the franchise of the film Forrest Gump in the marketplace, including sales of DVDs, videos, books and numerous
branded products such as the familiar ‘box of chocolates’.

One of the most important success factors in a restaurant is the quality of the personnel. Bubba Gump must constantly
ask itself what it can do to be a better employer.

 They receive one week of vacation after a year and two weeks after two years
 There are retirement plans for salaried workers
 Managers meet every year in exotic locations for ongoing training and development programs
 Bonuses and recognition programs also are a standard practice at Bubba Gump

The company currently has 35 restaurants (as of May 2008). In the United States the restaurants are company-owned,
but abroad the international expansion of Bubba Gump is mainly based on franchising agreements, where Bubba Gump
Shrimp Co. (USA) is the franchisor and the local restaurant owners are the franchisees.

Questions

1. What are Bubba Gump’s ‘Key Success Factors’ when going international?
2. Over the next five years, Bubba Gump plans to open 35 to 50 new restaurants. What should be its main
criteria for selecting locations for these new restaurants?
3. Explain the role of successful value chain in Bubba Gump