You will prepare and submit a term paper on Fashion Caf: Lack of Entrepreneurial Persistence. Your paper should be a minimum of 1750 words in length.

You will prepare and submit a term paper on Fashion Caf: Lack of Entrepreneurial Persistence. Your paper should be a minimum of 1750 words in length. The vision behind the themed restaurant was to market food and sex as used to be with night clubs and restaurants. This time the owners planned it by way of offering burgers and chips to suit the body-conscious crowd. The theme was to use the girls as enticement and the entrepreneur thought that it would be easy to raise the money to foot their bill. Investors were easily attracted because each felt they owned the models. Because of the stars around the venture gained publicity on CNN and BBC. Buti raised $3 million within a short period and run only three restaurants – in New York, London and New Orleans (Berkman, 2011). The vision behind the themed restaurant was to market food and sex as used to be with night clubs and restaurants. This time the owners planned it by way of offering burgers and chips to suit the body-conscious crowd. The theme was to use the girls as enticement and the entrepreneur thought that it would be easy to raise the money to foot their bill. Investors were easily attracted because each felt they owned the models. Because of the stars around the venture gained publicity on CNN and BBC. Buti raised $3 million within a short period and run only three restaurants – in New York, London and New Orleans (Berkman, 2011). Inside the restaurant lights flash, movies play and then there was a display of dresses, shoes, and coats worn by the owners – the supermodels (Reichl, 1995). These could be bought at the store which was on the side. While the menu card was seven-pages the menus on the card demonstrated frugal meals to suit slim figures and models. At the same time, they planned to sell goods such as dresses and coats through the store on the side. Fashion Café was over-franchised and has been accused of mismanagement (Businesspundit, 2009).&nbsp.1.3 Situation over time&nbsp.Staff paychecks were bouncing and they struggled to hire good people. They reached a state when suppliers refused to deliver on credit (Berkman, 2011). The entrepreneur siphoned out funds to create assets for himself. The restaurant spent too much on refurbishing instead of providing cash for day-to-day running expenses (Willock, 1998). Supermodels that had invested and had been attached to the chain started resigning one after the other. The Café did not allow the stakeholders access to the accounts which go against the norms of any company. CEO Tommaso Buti has been accused of stealing funds from the company and diverting the corporate assets for personal benefits (Kelly, 1999). They have also been accused of defrauding the investors and the owners have been charged with wire fraud, conspiracy, money laundering and transporting of stolen property. The project had a huge amount of investments with good financial backing but no business planning. It closed down three years after it was opened.2. Reasons for failure&nbsp.2.1 Lack of entrepreneurial persistence&nbsp. Holland (2011) defines entrepreneurial persistence as the positive maintenance of a motivation to continue acting under challenging conditions. Time and circumstances influence persistence decision among the start-ups. Entrepreneurs usually have grand aspirations and expect huge future rewards. Tommaso Buti, the entrepreneur, had come to the US from Italy and befriended a lot of models. At the same time, he also got into the food business. Despite his lack of experience he wanted to take advantage of the supermodel craze prevalent in the US at that time. He hence assembled a chain of high-fashion diners. Theme restaurant was booming at that time. He offered huge sums of money to the models apart from luxury traveling and lodging per appearance.&nbsp.The business failed mainly because the promoters did not realize that the current success of the world of modeling will never match the universal appeal of the movies. The café used supermodels to promote food. The models invested some money but basically allowed their names to be used for brand promotion. Menus were named after models such as Naomi Campbell and they would also find time to fly across the world to open new outlets for the chain Fashion Café.