Planet Hollywood Moscow
The restaurant industry is known as a difficult industry to thrive in, but with high risk almost always comes a high reward. There are new restaurants opening and old restaurants closing at a high rate on a consistent basis. There are multiple factors that go into either the success or failure of a restaurant. In 1991, with the help of Hollywood A-listers Arnold Schwarzenegger, Sylvester Stallone, Demi Moore, and Bruce Willis, former president and CEO of Hard Rock Café Robert Earl decided to jump into the exciting but difficult industry. Robert Earl came up with a unique concept for a restaurant that merging the thriving movie industry and good old American cuisine. Recruiting Keith Barnish, an accomplished movie producer, and his foursome of movie star investors, the idea behind Planet Hollywood was born.
The first Planet Hollywood was opened in New York City in 1991 to great success. Being fueled by reasonably priced food and the Hollywood atmosphere, which was created by a collection of movie and television memorabilia, Planet Hollywood grew enormously. With the help of the Hollywood investors, Planet Hollywood was able to collect some of the world’s most valuable collection of movie props. The restaurant also opened gift shops in all of the restaurants that featured clothing and other items adorned with the Planet Hollywood logo. These gift shops turned out to be extremely successful resulting in almost forty percent of the restaurants income. Soon enough, Planet Hollywood became a must go for customers because of its uniqueness and popularity. With a great marketing and a growing reputation, the chain restaurant exploded throughout the United States and even started popping up internationally.
With the company thriving at seemingly every location, Robert and Keith were mulling over a very difficult business decision. They were trying to come up with a decision on whether or not it would be beneficial for Planet Hollywood to open a new location in Moscow, Russia. At a quick glance, it would appear to be an easy decision to open up a new store in Moscow, because there is not one anywhere in Russia and all of the international locations have succeeded beyond expectations. Upon reviewing all of the factors involved with opening a Planet Hollywood in Russia it becomes quite clear that it is indeed a difficult city to open a store in because of the multiple risks involved.
One of the main risks with opening a store in Russia is the failing economy. The expected rise in the Russian economy has not occurred leaving the