Pho Hoa Dorchester

By: Leonard A. Schlesinger and Michael Raiche and Roger Zhu

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Synopsis: Pho Hoa is a traditional, family-owned Vietnamese restaurant in Dorchester, Massachusetts that opened in 1992. As he approached retirement in recent years, the founder-owner has scaled down his involvement in the day-to-day operations, leading to a number of operational and financial issues, including variable food quality and deficient wait staff service. The restaurant is about to transition from 1st to 2nd generation ownership, Tam Le, the son of the founder, realizes that major operational and financial changes are required to maintain the restaurant's long-term viability. This case is intended to provide students with a better understanding of the personal, professional and cultural challenges facing small business owners. Using the context of a family-owned Vietnamese restaurant, it examines the operational changes associated with transitioning ownership from the founder to his son, including formalizing equity stakes and internal processes, establishing a clear organizational structure and improving customer service. It also explores the personal motivations and ambitions of Tam Le, who is simultaneously assuming control of the restaurant and exploring a number of other commercial ventures unrelated to the legacy family business.