Typically franchises schemes start with that end goal in mind and strive to structure and refine two to three successful outlets first before they start their franchising efforts. In all good intentions, they hired a friend of theirs to be the manager of the store. The additional costs were to prove overly significant and there was a decision made to let Mark leave the organization — in order to reduce the cost structure — and the silent investor became an active partner in the business.
To this end, it needs to be acknowledged that Mark was very successful in achieving these goals. As you can imagine, this is not a common cost structure for the local take away food place. The first episode focused upon the set-up of the first store and the various challenges and setbacks that they faced, while the second episode reviewed their performance after the store had been established and highlighted their plans to create a second store.
So as you can see, we have a dilemma — we have a fast food consultant recommending that the way to increase service and delivery times is to violate the basic underlying vision and values of the business. For instance, in the second episode, there were a group of male teens who purchased burgers at a store across the road and then came to RBW for their shakes only.
When the end goal is to create a franchise system, then there are additional costs associated with the operations of the store. This consultant was immediately concerned with the preparation and service time which was generally in the order of 7 to 10 minutes.
This helped make a difference to the speed of their operation, as well as the motivation and training of the day-to-day staff. Through this transaction, this silent partner was then willing to invest further funds in order to set up a second store. While these activities may sound a little extreme, it is important to note that in the early days of the business — given the long-term franchising goal — it was necessary to build brand awareness, establish positioning, and generate an initial trial of their food products.
They were forced to negotiate from a weakened position. At the end of the first episode, the financial realities of supporting an individual store that had franchise aspirations were acknowledged.
And much like Tom Cruise in the movie, Naz sets out to make his vision a reality. Certainly Naz and Mark had the commitment to make this business a success and were willing to invest a significant amount of their own money to achieve the vision.
Highlight the intent of the various promotional activities, the redesign of the store, and other marketing aspects as listed in the case. The TV show ran for two series and during that time RBW was highlighted in two episodes, bringing their brand to millions of viewers in the UK at the time.
So the question is how can a local hamburger store have such a high underlying cost structure? This is where the second store was to come into play. A strong brand would generate ongoing franchisee sales, as well as strong customer loyalty and communicate key points of difference.
While they did learn valuable lessons from the first store, particularly in terms of store design and managing customer expectations, perhaps they should have had a closer look at their product range? As RBW was a private company, their actual financial and sales data is unavailable — any numerical information contained in this case study is for study and academic purposes only and is not intended to reflect the actual position of the firm.
Think beyond just acquiring new customers. Therefore, one would have to assume that it was either a question of timing, limited branding, overrun of cost expenditure, product design, or overall strategic execution — and probably a combination of all these — that did not deliver the results of the initial Real Burger World vision.
It is clear that the second store was opened and redesigned despite the first store not being viable at the time. Despite changing the store design significantly, and altering the overall atmosphere, the basic problems of the first store were not adequately addressed and unfortunately carried over.
There were mixed reactions to their burger products, as highlighted on the two episodes of the TV reality show. This was the intended plan of Real Burger World — set up two successful stores and look to a franchised operation throughout the balance of the UK and then onward throughout Europe.
However, their burger range was somewhat lacking in appeal. A key part of this initial strategy and overall direction was the importance of brand equity building.
Promotional activities Up until Mark left the business as a full-time partner, he essentially assumed the role of a promotions manager although it was referred to as marketing manager on the TV series.
The underlying trend — of healthier and more diverse choices — had caught up with them.Crust Gourmet Pizza Bars and Real Burger World Case Study for MKTG (Semester 1, ) A review of the success factors in the gourmet fast food market sector – Comparison of Crust Gourmet Pizza and Real Burger World Your Task On the following pages you will find a case study providing a range of details and information for two.
This case study is based upon the real life experience of RBW. As RBW was a private company, their actual financial and sales data is unavailable – any numerical information contained in this case study is for study and academic purposes only and is not intended to reflect the actual position of the firm.
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