Real Burger World- case study.docx

Why the second store it is clear that the second

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Why the second store? It is clear that the second store was opened and redesigned despite the first store not being viable at the time. So how could this happen? The obvious answer relates back to the underlying goal of the business and its long-term intent. This business was primarily structured to become a franchise system. The owners and investors in the business simply needed to demonstrate that one or two stores could become quite viable and then they could be demonstrated to potential franchisees, who would then invest their own capital to expand business/brand. Therefore, Naz, Mark and the silent investor viewed the initial store as a “marketing experiment”. While they had hoped that the initial store design, process, and menu offering were to be successful, they also took the view that this was a “market test” that would provide valuable feedback for the long-term goals of competing against the major players in the fast food arena. 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? Key lessons? 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. Like most entrepreneurs, they believed that they were on a winning pathway and thought it presented a significant market opportunity as they were tapping in to a key trend and a gap in the marketplace. In Australia, around the same time, it should be noted that Crust Gourmet Pizza stores were tapping into the same trend and would ultimately become very successful and implement a franchise structure/system and eventually sell their operation to a major corporation. And like a successful and adaptive marketer, they were willing to learn from their mistakes and to view their decisions as ways to generate “market feedback” about what worked and what was less responsive. It is difficult to accuse these two partners of being overly committed to their original decisions – they were willing to hire a new store manager, willing to redesign the stores, willing
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to implement different promotional tactics, willing to “expose” their business and decision- making on two episodes of a reality TV show, and so on. The two partners, as betrayed on the TV show, were certainly likable and hard-working and it is disappointing that two risk-taking entrepreneurs were not able to make a difference in this market. As previously mentioned, since the RBW concept was implemented, McDonald’s has adapted to the changing marketplace. For instance, in recent years McDonald’s has broadened their food offering (to include: upmarket burgers, salads, create your own tastes, fruit shakes, gourmet coffees, and so on), they have relaxed the look/feel of the stores and reinforced the quality/natural ingredients.
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  • Fall '17
  • ..
  • Reality television, Fast food restaurant, Hamburger, RBW, Naz Choudhury

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