Real Burger World- case study.docx

At the end of the first episode the financial

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At the end of the first episode, the financial realities of supporting an individual store that had franchise aspirations were acknowledged. When the end goal is to create a franchise system, then there are additional costs associated with the operations of the store. It becomes more than just a local hamburger joint – and becomes the starting point of “something special”. 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. Through this transaction, this silent partner was then willing to invest further funds in order to set up a second store. The second store The first store had numerous difficulties as highlighted on the TV series (as will be outlined below). However, based upon the learnings of the first shop, it was anticipated that the second store would be better located, better structured, better staffed, have a better menu – and would become their template for the franchise system throughout the UK and the balance of Europe. The design of the second store was significantly different to the “fast food” look and feel of the first store. It was friendlier, more modern, and was more spacious. It created clear expectations for the amount of time (around 7 to 10 minutes) that customers needed to wait for “real food”. The seating areas were more comfortable and the overall atmosphere was more exciting and interesting.
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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. As a result, the second store did not achieve the level of sales required to generate a viable business and to attract potential franchisees. This meant that the vision of Naz had ended after only two stores – despite a significant level of effort, a willingness to learn, a willingness to succeed, and a significant overall investment. The problems with the first store The first episode of “Risking It All”, which highlighted Real Burger World, concentrated upon the implementation of its first store. Unfortunately, while Naz had the entrepreneurial vision and spirit, the overall execution of his plan was not ideal. There were several fundamental errors made which limited the potential of his concept. The first was that they started “fitting out” the store prior to signing the official lease. Upstairs from the store, the owner of the building was developing apartments to sell and decided that a fast food outlet would distract from his sale prices. At this time, Naz and Mark had invested significant time and money into the structure of the first store. They were forced to negotiate from a weakened position. One of the key concessions of the negotiations was to rename the business from Real Burger World to just RBW.
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  • Fall '17
  • ..
  • Reality television, Fast food restaurant, Hamburger, RBW, Naz Choudhury

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