Case Study Analysis
Abou Shakra is a well known chain of restaurants which is specialized in Egyptian oriental food. Since Ahmed Abou Shakra opened his first outlet in 1947 in Cairo. He had decided that the Egyptian traditional food is going to be the main theme of the restaurant. At this time most of the restaurants were the same in offering the oriental dishes, so Ahmed Abou Shakra had to make sure that he’s providing a special thing to the customer, as he was competing with the whole market. So he decided that the special thing will be the taste.
As the business started to grow and the restaurant became a well known restaurant the manager started to think that he has to find other factors that make sure his restaurant is offering the best
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Ahmed Abou Shakra had a special way of thinking other than most restaurants owners; he decided that having a small numbers of outlets with an extraordinary service is better than having large number of outlets in each corner of the country with an average service.
Abou Shakra’s restaurant became as well know as it is now not depending on TV advertisements, but depending on the word of mouth recommendations between customers and their friends, family. They believe that they best way of advertisement is the word of mouth as customers trust their friends’, family’s opinion.
In my point of view; the only weakness they have is the fear of commitment, not only the commitment of having new outlets, as it took them years to take the decision of opening their second outlet in Alexandria, but also the commitment of offering new dishes. Abou Shakra’s restaurant is known by its special tasted dishes and hygienic environment, so the customers would welcome the idea of trying new dishes from Abou Shakra’s
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So he followed some values, as follows:
Philosophy: In ordered to offer an extraordinary experience that the customer would never forget, the restaurant had to make sure that all the gradients of the food are fresh, clean, so as the business started to grow they decided to have their own farms, factory, which supplies all the outlets with the daily requirements of fresh meat.
Advantage: When the first Abou Shakra restaurant was opened it had to compete with all the market as all the restaurants were offereing the same traditional food. So the owner had to offer the customers something that would favor his restaurants over other restaurants, which turned out to be the special taste. This advantage became their greatest customer value offered.
Focus on Customer: Focusing on customer is one of the main reasons this organization’s success. They no longer need to spend money on newspaper’s advertisement as they depend on the word of mouth’s recommendation, they consider it the best way of advertising and which mainly depends on the extraordinary customer
It comes down to the fact that if a business is opened with the biggest and best equipment instead of slowly working up to the luxuries, the business will be bankrupt in a very small amount of time. He also reveals that the model for building a customer base is offering free food to get people to try the restaurant out. It also boils down to good food and good service, but not any service... second mile service. To explain, first mile service is when a guest comes in and is greeted with a smile, served good food, and is served quickly and accurately in a clean
The article, “Fast Food: Four Big Names Lose” employs the readers of such article to listen to an explanation of what other customers all around America value and do not value in the fast food chains that exist today. Written by Consumer Reports Magazine in August of 2011, a magazine dedicated to testing and surveying products and services themselves and to support groups and reporting the results of those tests to the consumers of America so that they may make more informed choices in their futures. Major fast food companies constantly brag and commercialize their success and the greatness of their product, however whether they actually compare to the product they so grandly promote is a different story. Consumer Reports Magazine delivers
The risks of failure can come from many different reasons, such as “changing demographics, accommodating the unrealized demand for new services and products, market consolidation to gain market share in selected regions, and realignment of the product portfolio that requires selected unit closures” (Parsa, Self, Njite, & King, 2005). The ever-shifting trends can also be a risk to a restaurant if the trends move away from the concept of the restaurant. Market saturation of restaurants can also be detrimental to a business, if there are too many business’s in the area serving the same style menu as you, then you could lose out on a lot of potential customers in the slew of competition (Scott, ). Poor management is another reason a new restaurant can fail. This includes poor planning of labor and ordering of inventory.
This concept is now one of the most popular for a preferred dining experience, and new entrants are eyeing the market on how to enter, and existing restaurant titans are figuring out how to compete with these new disruptors. Some entrants into this segment have
Business Intelligence at CKE Restaurants Nowadays, Business intelligence is becoming an essential tool for businesses to seek for strategic advantages; this is because it allows making more accurate and better decision based on current data, information and knowledge. According to Pearlson (2012), “Business intelligence is the set of technologies and practices used to analyze and understand data and to use it in making decisions about future action” (p. 345). This paper analyses case study 11-2 and provides an overview of knowledge management by answering three questions regarding CKE Restaurants’ (Hardee’s Restaurant parent company) decision to promote and distribute the Monster Thickburger based on insights derived from their business intelligence
Franchises endeavor in making all products, stores, and services exactly the same, “Customers are drawn to familiar brands by an instinct to avoid the unknown. A brand offers a feeling of reassurance when its products are always and everywhere the same” (5). This, in turn, abolishes any cultural influence on a restaurant or product, making a bland, homogenous replica that can be found anywhere. The United States is becoming a placeless nation; there are McDonald’s, Wendy’s, and other fast food restaurants around every corner. Schlosser states that, “The basic thinking behind fast food has become the operating system of today’s retail economy, wiping out small businesses, obliterating regional differences, and spreading identical stores throughout the country like a self-replicating code” (5).
In this regard, the restaurants had to provide quality food at affordable prices while at the same time focusing on making profits. Possibly, there are different ways of addressing
Since the food chain already has sufficient experience and resources to run business effectively, the start-up was a noble idea because it took advantage of the existing strengths to grow into a successful restaurant. It follows a horizontal diversification approach to building a brand that customers had not seen before. Seemingly, the existence of The Steak Bar was a sign that Cravia had now fully-fledged and could now stand on its feet regardless of the volatile market conditions. Due to its high profile positioning, The Steak Bar was comparatively pricier that the other franchises owned by Cravia; but fortunately, it attracted the right clients and was a success (Applegate & Norris 2016). The restaurant relied on the experience of an American executive to grow and expand into other areas within a very short period.
In Margaret Visser’s essay, “The Rituals of Fast Food”, she explains the reason why customers enjoy going to fast food restaurants and how it adapt to customer’s needs. Some examples of the most loyal fast-food customers are people seeking convenience, travelers, and people who are drug addicts. First, most loyal customers are people seeking convenience. The reason why fast food restaurants are convenient because longer hours of being open, the prices are good , etc. As Visser said in her essay, “Convenient, innocent simplicity is what the technology, the ruthless politics, and the elaborate organization serve to the customer” (131).
Sixth, top management failed to manage franchisees in terms of training, marketing, and operational
Introduction The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.
The authors study a restaurant for this purpose. The restaurants have an inherent advantage that a licensed and franchisee restaurant might share the same menu ideas, outlook strategies, and production pedagogy which necessarily makes them more comparable while the management forms, observing systems, hiring methodologies etc make the two different enough to study and identify the underlying causal relationship (if any). The authors in the end then comment on the vital points of differences between franchising and licensing. These differences are microscopically studied under both operational as well as business thought process aspect. The authors comment that franchising might lead to a higher customer satisfaction level irrespective of the metric and the reason being that franchisor usually has better control of the day to day operations in a franchisee.
One of their key strategies in meeting this goal is a focus on customer service in order to create an experience for its consumers. Another one of their strategies is to ignite their emotional attachment with consumers. They also have
With the help of social media, the establishment has informed its clients of available products on the menu. In the process, a favorable relationship has been created between the company and its loyal clientele. For instance, the choice of Twitter, Facebook, Instagram, and email services allowed Senor Sisig’s to gain a competitive advantage over rivals in the highly competitive food truck sector (Kidera et al., 8). Based on the corporation’s key success factor, Senor Sisig has established a conducive relationship with customers, as manifested in high expansion rates. Improved customer relations are the foundation for supplementing the establishment’s truck
Every industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017).