Management Consulting Case Study-Fast Food Restaurant Chain

Case Scenario
In this specific instance, the client was advised to try to combine with a lesser business in order to get some economies of scale. It was simple to see that not all of the market's five players would endure a market contraction when informed of this fact. Six months after the customer bought a smaller competitor, the share price began to increase.

Suggested Approach-
First, make an effort to comprehend the precise nature of the issue at the underperforming stores. More specifically, are expenditures greater or revenues lower as compared to other stores?

Income

• Fewer clients

•  Lower sales made by each consumer (i.e. less or cheaper food purchased)

  Costs, employment, real estate, and facility costs

Ingredients in food and other varying expenses

then concentrate on the reasons why fewer people are visiting the new stores.

Do you think prices are too high?

• How are customers segmented?
•  Are the various stores catering to various customer groups?
• What are the requirements for the various segments?

Where are the new and old shops located? a neighbourhood? Drive-thrus, malls, or standalone stores?

Do all of the shops serve the same food?

• Do some goods sell better in the new or old stores?

Are the company's competitors the same in both locations?
Analysis should identify that place as a key there.

The company's previous locations were mostly in low-income communities, where it had few rivals. The majority of the additional locations were in luxury malls, where there was greater competition and the company suffered from being perceived as a low-cost brand.

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By Vandana Gaur