ElBulli case: Recommended strategy for ElBulli over the next five years

Résumé du document

According to numerous prizes and awards won over the past few years, elBulli is recognized as the best restaurant in the world, and its owner and Chef Ferran Adrià is recognized as the best chef in the world. It is almost impossible to get a table at elBulli, since it serves 8000 dishes a year. The very strong scarcity, the exclusivity of the setting of Roses, on the Costa Brava, and the constant effort put into innovation and creativity are the main things that contribute to classify elBulli restaurant as a luxury brand. The restaurant is the first and core activity of elBulli: This is where the business, the brand and the recognition elBulli started and continues to grow. The reputation of elBulli restaurant is based on commitment to the highest levels of innovation, quality and exclusivity in terms of gastronomy. elBulli is synonymous to happiness, according to Ferran Adrià.

Extraits

[...] This business enables elBulli's philosophy to expand outside its restaurant. - Collaborations with the design world, by launching items with a marked character and personality, as for example cooking utensils and new serving dishes fitting exactly new gourmet creations, or Ferran Adrià by Armand Basi a line of kitchen and home textiles for the Spanish fashion label. These associations enable the elBulli brand to be widely seen and known, the brand awareness is hence increased. However, we noted that broadening the brand awareness with side products is not a valid strategy in marketing of luxury : indeed, the restaurant does not appear under the right angle when books or home textiles are sold under the elBulli name : there is no luxury anymore, essentially because those side products are sold online, for a relative low price, and are accessible to anyone. [...]

[...] ElBulli case: recommended strategy for elBulli over the next five years Part A - What is the current business model and operation strategy of elBulli? According to the numerous prizes and awards won over the past few years, elBulli is recognized as the best restaurant in the world, and his owner and chef Ferran Adrià is recognized as the best chef in the world. It is almost impossible to get a table at elBulli, since it serves 8000 dishes a year only. [...]

[...] The important losses have to be, one way or the other, balanced either by a new strategic move of the core business, or by revenues generated by other businesses. So far, the main revenues come from the consulting services (elBullicarmen and elBullihotel), the catering (elBullicatering) and the publishing (elBullibooks). According to me, getting by diversifying into new businesses was a mistake that happened to soon for elBulli, since it has never been profitable on its own before expanding and becoming a bigger group. A change has to happen quite quickly, in order to the luxury image of the brand. [...]

[...] People could be picked up and brought back after their “experience” at elBulli, at the destination of their choice (in a radius of 250km let's say). This would enable the customer to extend its experience: before and after the dinner, elBulli's world of luxury, finesse and high end product would be alive for the customer. This service could be offered by Luxury yachts departing from the Barcelona Yacht Club for an additional return trip, including champagne, snacks and “petits fours” made by elBulli all served on board. [...]

[...] The perpetual dilemma is increasing the restaurant business, for example by increasing the number of meals served, but this would would decrease the level of quality, innovation and creativity, versus launching parallel services that are very profitable and that can finance the losses of elBulli restaurant and elBullitaller. However, my recommendation for the next 5 years would be to make the restaurant business profitable. This would allow the group to drop some projects or collaborations with other brands that are very risky for the brand image, while keeping the focus on the core philosophy at elBulli: putting creativity and innovation first. The result of this strategy is the reinforcement of the brand image of elBulli restaurant as a luxury product. [...]