Beverly Porter Payne, Dale Krueger, Denise Bartles
Journal of Case Studies
November 01, 2014
This case represents a small business that a first-time entrepreneur opened and expanded with little planning associated with either event. After retiring from the Post Office, Bob opened a small, moderately successful restaurant in an old neighborhood in his home town. The restaurant, Salsa Dog, sold a brand-name hot dog with a variety of mostly homemade condiments, which differentiated its product from other fast-food products. Bob then expanded to a second location in another area of the city that served a demographically different customer base. Increased competition, limited financial resources, and ineffective management, along with disadvantages at the new location, resulted in Salsa Dog experiencing sizeable losses over an eighteen month period. These losses jeopardized the existence of Salsa Dog. Bob reached a decision point – identify strategic actions to generate profits or let go of his life-long dream of owning and operating a small business and close Salsa Dog.