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Portfolio Business Implications

Froggy’s Deli: How a Success transformed into a Failure


The most well-known characteristics about my hometown of Somers, New York are our excellence in varsity football and our superb delis. For a town of about 20,000 residents, the quantity and quality of our delis competes with the biggest cities in the world. When I first moved to Somers, one deli in particular stood on top. This deli prided itself on putting students first by offering discounts to varsity athletes and advertising during football games. This deli was the spot for breakfast sandwiches and late-night snacks. However, recently, Froggy’s Deli became a location of the past. With decreasing revenue, Froggy’s is on the verge of closing. Froggy’s Deli is failing due to increased competition, poor employee training, and an over-aggressive expansion strategy.

Only a decade ago, Froggy’s was the most popular deli in Somers. The reasons for its early success included the lack of competition. If a Somers resident wanted a sandwich, he went to Froggy’s. However, in recent years, new delis opened in Somers. Businesses competing with Froggy’s include Route 100 Market, Valben Heritage Market, Bobo’s, and Taste. These four eateries take customers from Froggy’s thus decreasing sales. If Froggy’s wants to continue to operate successfully in Somers, it must find a way to diversify itself from its growing competition.

Another reason for Froggy’s decline is their poor management structure leading to an ineffective workforce. Based on my own experiences, the employees in other Somers Delis are thoroughly trained unlike the employees of Froggy’s. Often one employee works in Froggy’s Deli; he is responsible for making the food and handling cash transactions. On multiple occasions, I witnessed the employee go from handling cash to making sandwiches with the same pair of gloves. This lack of awareness may lead to customer dissatisfaction. Froggy’s must train their employees to be aware of simple mistakes like this especially in a post-pandemic world.

The final reason for Froggy’s downfall was their plan to expand. Six years ago, Froggy’s Deli became Froggy’s Deli and Pizza. Froggy’s had purchased its adjacent building and transformed it into a pizzeria. This risky business decision failed. Froggy’s pizza became the laughingstock of the town. Its bland taste was an immediate turn off for customers and led to negative brand association. This poor business decision caused customers to associate the deli with the pizzeria. Froggy’s dug a public opinion hole so deep that they may never recover. Froggy’s must go back to their roots and focus on what they are best at.

To conclude, Froggy’s deli is on the brink of closure. While I do not know the exact details, some facts are clear. Froggy’s has a deteriorating grip on the Somers deli sector. Customers have turned away from Froggy’s and looked towards the competition. Employees’ poor habits and an over-ambitious strategy has also led to the business’s disaster. All in all, Froggy’s should focus on penetrating their existing market by improving their product and increasing positive brand association.

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