FAMILY BUSINESS MODULE: EMG 464 TUTOR: ED GONSALVES STUDENT: ELENA SANDU S00703041 PROJECT: INDIVIDUAL CASE STUDY

DATE: 24/02/2014

TAVERNA ALPINA DALLA SPAGNOLA

NOWADAYS At the next family meeting, all the members will discuss about the possibility of selling the family business, a spanish restaurant that has been the suorce of the familys wealth and the dream of a woman. All the family members have their personal opinion about the chinese purchase of the business. Unfortunately, they seem to be far from a solution, because their feelings, their concerns and their animosities are taking over.

HISTORY The Taverna Alpina Dalla Spagnolas story began in 1965, when Sergio Borsoi, helped by his mother, opened his first restaurant in Conegliano. In a first moment, the place was called Da Gennaro , in memory of Sergios father, who died in 1964. The restaurant was specialized in venetian cuisine. At the beginning, the restaurant achieved a lot of returns, because it was the first one of that small town. Few years later, Sergio went to Spain for a trip with his friends. In Siviglia, he met Reyes Medina, who accepted immediately to marry him. After their arrival in Italy, Sergio decided to run the business together whit his wife, even if his mother was not agreed with him. The problem was that Reyes didnt know absolutly nothing about italian food, such as pizza, spaghetti, risotto. She was a chef in Spain, thus she started to cook spanish dishes like paella, catalan cream and tortilla. That was a new beginning for the restaurant and for the Borsois family. The restaurant bacame famous in Veneto for its amazing paella. In 1970 Sergio decided to change the name of the restaurant into Taverna Alpina Dalla Spagnola. Sergio and Reyes had two children: Gianluca Borsoi (1970) and Agnese Borsoi(1971) that one day would have run the business instead of their parents. The restaurant had a huge success in the 80s, because of Sergio and Reyes ability to grow their family business, without problems between them and the other family members involved in the business. They worked day and night to improve their business.

FROM TAVERNA ALPINA DALLA SPAGNOLA TO SIVIGLIAS After that great success and those returns, Reyes decided, without Sergios approval, to open a new spanish restaurat in Conegliano by her own. Sergio and his wife quarreled a lot about her new project: Sergio didnt think that a new restaurant could bring other insome to the family; it would have been only a reason to invest money without the security that the new business would have been succesfull and economically convenient. He was also sure that two spanish restaurants were too much for such a small town like Conegliano. Sergio was right: Reyes new restaurant was a big mistake. It drained Reyess money and energies and it brought a lot of disagreements in the family. Thus she decided to close down her activity in 1989. After that bad experience, Sergio and Reyes continued to work together with high results. Their younger child, Agnese, starded a degree in economics and at the same time she studied to become a good chef in order to keep the family business. In 1990, during the family meetings, Sergio and Reyes started to complain about their impossibility to run the business any longer: they had been in the business almost for 40 years. The only available and possible successor was Agnese, who was ready to run the family business with passion and devotion as her parents did. Unfortunately, Agnese died in a car accident in 1991, after having started her new work at the Taverna Alpina Dalla Spagnola. The family was really devastated by that tragedy. At that moment, they had to figure out who should have continue the business. Gianluca, the older child, wasnt interested in the family activity; in fact he never tried to help his parents over the years.

SUCESSION PLAN Sergio and Reyes decided to keep the family business, without selling it to the best buyer. Gianlucas parents were sure that he would have become more interested in the family affairs. Simone Borsoi, Gianlucas cousin, was staffed as the restaurants manager, because he had a lot of experience in several italian restaurants. Thanks to Simone, the business continued in the right way, with high returns and with

an increased popularity in the area. People had to book a table many weeks before in order to eat at the Taverna Alpina Dalla Spagnola. Gianluca was really jealous of his cousins position in the family business; so he took his diploma as chef and he asked his parents to work in the restaurant, whereas he hadnt been so involved in it in the past years. His parents were really happy that their son, together with Simone, would have continue the family business. Gianluca became the new owner of the restaurant after his parents retirement in 1999. Simone continued to manage the restaurant as in the past.The business performed very well till 2010, when the global crisis hit the Italian economy.

THE FAMILY BUSINESS AND THE GLOBAL CRISIS The continuous arguments between the two cousins broke the harmony both in the restaurant and in the family. Also the clients understood that there were a lot of problems within the business: the cousins were always discussing outside the restaurant, without managing it or helping the people that worked for them. Gianluca wanted to continue the business, while Simone was sure that the restaurants economic problems could not be fixed. Beside these family issues, the global crisis, bagan in 2007, started to affect the italian economy. Italian family income recorded one of the lowest level ever, so many families with financial problems decided to stay at home instead of eating outside in order to save some money (kindly refer to appendix 1). The Borsoi family lost a lot of money during the years 2011-2012, so they started to think really about a possible sale. In that period, many Chinese families arrived to Conegliano and bought a lot of shops, firms and restaurant in the area. The solution for the family problems could be the restaurants sale to the Chang family, the opening of a franchise restaurant (Rossopomodoro) or the resolution of Simone and Gianlucas problems. In this last scenario, there would be a further problem. Simone and Gianluca dont have children. The third generation is represented by Manuel Fossa, Agneses child. Manuel is studying informatics at the college and has other passions such as music and football. He doesnt want to continue the family business both for the negative economic conjuncture and for the family issues related to the restaurant. Sergio doesnt want this future for Manuel because of the great amount of money that would be necessery to restore all the restaurants debts. Instead

Reyes, Manuels grandmother, hopes that he will continue the family business because she is really attached to it. This business has always distinguished the Borsoi family from its other relatives. Owing the spanish restaurant has really set them apart. She doesnt want to lose this distinction.

QUESTIONS: - How can Simone and Gianluca solve their problems in order to run the business? - What is the best option for the restaurant future? A private investor or a franchise chain? - Is the decision to sell the business too hasty or not? If yes, why?

APPENDIX 1 SAVING RATE (% OF DISPOSABLE INCOME)

SERGIO BORSOI Owner-Manager REYES MEDINA Manager-Chef

GIANLUCA BORSOI Owner

AGNESE BORSOI (1970-1991)

SIMONE BORSOI Manager

MANUEL FOSSA Third generation