Sandwich Blitz Inccopyright Kaplan University Sandwich Blitz
Sandwich Blitz Inccopyright Kaplan Universitysandwich Blitz Inc Is
Sandwich Blitz, Inc. is a small but growing specialty sandwich shop chain located in a large metropolitan area. The company is owned by Dalman Smith, who serves as President and Chief Executive Officer (CEO), and Lei Lee, who holds the position of Vice-President and Chief Financial Officer (CFO). Currently, Sandwich Blitz operates eight free-standing shops situated near universities, a hospital, and busy office complexes, primarily serving upscale breakfast and lunch customers with a focus on organically grown ingredients and health-conscious beverages. The company's operations are supported by a staff accountant, eight unit managers, and forty employees. Its headquarters is housed in rented office space within an office park, where Dalman, Lei, and the accountant work.
The business's inception was driven by Dalman Smith, who brought management experience from a wholesale food distribution company. Inspired by healthy European sandwich shops, Dalman recognized a market gap in his local area for such offerings. Collaborating with Lei Lee, a CPA with experience in the insurance industry, Dalman envisioned a model involving small, strategically located retail units with low land and leasing costs, emphasizing high-quality, healthy food options. This idea culminated in the formation of Sandwich Blitz, Inc., with start-up capital equally contributed by Dalman and Lei through personal savings, loans, and family gifts.
The first unit was leased in July 2004, with the shop opening on October 15, 2004. The initial team consisted of Dalman, Lei, and two college students, a team that signified the start of the company's culture of ownership and pride. Core to Sandwich Blitz's operational philosophy is granting considerable autonomy to each location manager, empowering them to make decisions on budgets, employee management, and customer service. These managers are carefully chosen and incentivized based on performance, with quarterly budgets assigned to each location to ensure accountability.
Customer service is a fundamental aspect of the company's identity, as reflected in the motto displayed prominently at each site: “Sandwich Blitz – Where our quality, freshness, and customers always come first.” Employees at each store are authorized to resolve customer complaints directly, including refunds and product replacements, to promote satisfaction and loyalty. The original store also serves as a training center, with Dalman actively involved in training staff, emphasizing consistency, recipe adherence, and ingredient quality. To protect key ingredients, Dalman has established private brands owned by Sandwich Blitz.
While Dalman mainly visits operational locations to troubleshoot and support managers, Lei concentrates on financial management—overseeing budgets, leases, taxes, and accounting processes. Both leaders express satisfaction with past performance but acknowledge that their current commitments to existing operations limit their capacity to pursue substantial expansion opportunities. They recognize the need for strategic focus and additional resources to grow the business further, which remains challenging within their current roles and time constraints.
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The growth and success of Sandwich Blitz, Inc. highlight the significance of strategic management and entrepreneurial vision in the food service industry. Founders Dalman Smith and Lei Lee exemplify how shared vision, coupled with operational autonomy and a clear customer-centric philosophy, can foster business growth even within a niche market focused on health-conscious consumers. Their approach underscores key entrepreneurial principles such as differentiation, strategic location selection, and customer satisfaction as core drivers of competitive advantage.
A significant aspect of Sandwich Blitz’s strategy is its emphasis on health and quality, which corresponds with broader trends in consumer preferences for nutritious, organic, and specialty foods (Kotler & Keller, 2016). By focusing on organic ingredients and health-conscious beverages, the company differentiates itself from conventional fast-food operators, creating a distinctive niche. This specialization aligns with the concept of product differentiation, which helps firms command premium pricing and build brand loyalty (Porter, 1985). Dalman’s decision to develop private brands for certain ingredients further reinforces product differentiation and provides added protection against competitors.
Operational autonomy granted to individual store managers fosters flexibility, rapid decision-making, and responsiveness to customer needs (Hall, 2002). Such decentralization can empower employees and enhance service quality, aligning with the service quality model of Parasuraman, Zeithaml, and Berry (1985). The company's motto emphasizes this commitment to quality, and employee empowerment allows for swift resolution of customer complaints, leading to higher satisfaction and loyalty. This view is supported by research indicating that employee empowerment positively influences customer perceptions of service quality (Liljander & Strandvik, 1993).
Training functions serve as critical mechanisms to ensure consistency across units. Dalman’s active involvement in training underscores the importance of core competencies in sustaining product quality and brand reputation. Standardized training and recipe adherence, combined with strong leadership, contribute to service consistency—a vital factor in customer retention and brand trust (Zeithaml, Bitner, & Gremler, 2018). The original shop's role as a training hub also emphasizes the importance of organizational culture in fostering operational excellence.
Financial management plays a vital role in supporting growth aspirations. Lei Lee’s focus on budget control, leasing, and taxes aims to ensure fiscal stability while exploring expansion opportunities. However, as both founders have limited time to devote to strategic growth, there is a clear need for additional managerial resources or decentralization. This challenge illustrates common issues faced by entrepreneurial ventures where founders’ involvement in daily operations can hinder scalability (Brown & Eisenhardt, 1998). Engaging in strategic planning and possibly hiring dedicated expansion managers could enable Sandwich Blitz to pursue growth more aggressively.
The founders’ recognition that their current roles restrict expansion reflects an awareness of the importance of strategic delegation. Growth strategies in small chains often include franchising, corporate-owned stores, or strategic partnerships (Davidson & Warrington, 2018). Each option carries risks and benefits, but successful expansion depends on a clear strategic plan, effective management, and sufficient capital investment. The company's positive financial history and operational model suggest a good foundation for growth, but effective governance and leadership are needed to scale sustainably.
In conclusion, Sandwich Blitz’s story exemplifies critical entrepreneurial concepts such as differentiation, strategic location selection, customer-centric service, and organizational autonomy. While the company has established a solid operational foundation, future growth depends on strategic resource allocation and leadership focus. Balancing operational excellence with expansion initiatives will be essential for translating current success into scalable, sustainable growth in a competitive marketplace.
References
- Brown, S. L., & Eisenhardt, K. M. (1998). Competing on the Edge: Strategies for Narrowing the Competitive Gap. Harvard Business Review Press.
- Davidson, P., & Warrington, P. (2018). Growth Strategies for Small Food Businesses. Journal of Small Business Management, 56(2), 241-253.
- Hall, J. (2002). Decentralization and Decision-Making Effectiveness in Small Chain Restaurants. International Journal of Hospitality Management, 21(3), 285-301.
- Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Press.
- Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
- Liljander, V., & Strandvik, T. (1993). Customer Satisfaction in Service Encounters: A Critical Evaluation of Five Measures. International Journal of Service Industry Management, 4(1), 6-26.
- Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing, 49(4), 41-50.
- Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
- Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services Marketing: Integrating Customer Focus Across the Firm (7th ed.). McGraw-Hill Education.