Economical
Inflation plays a big role in the increase of prices, but it does not cause a price increase of R12 for a burger over the last 5 years. Other factors such as: an increase in rent, the increasing of minimum wage and trade union fees, increase in bond rates and interest rates also play a role in the price increases. On top of all of that, VAT and taxes are also added to the cost of each meal. The cost price of a product is determined by many factors and Steers has to add a decent profit margin. These various factors all contribute to the price increase but it has nothing to do with the customer service, or the lack thereof. If the customers felt that they were getting their money’s worth of food and customer service then there wouldn’t be any problem, people would be happy to pay the prices
Steers have the opportunity to negotiate with the producers and suppliers, such as farms, for the quality and size of the patties, tomatoes, cucumbers etc. They can also speak to bakeries to mass produce buns for a cheaper price. If Steers use the same suppliers for their products and then just distributing them to all of their locations, it would cost Steers less per burger. This would mean that Steers would be able to make a bigger profit on their burgers.
Ethics
Steers make sure to serve their customers
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The policy states that all staff must wash their hands regularly and change the gloves they are working with constantly to build the burgers constantly. There are buzzers that go off every 20 minutes to remind the staff to wash or sanitise their hands. This makes sure that the customers get good, clean food. Buzzers sound every 20 minutes to alert the employees to sanitise their hands. This is ethical practise to ensure that the customers health is always looked out
In the season two episode two, Marcus Lemonis takes a visit to A. Stein Meat Products that is fabricated Beef and Lamb Cuts. The whole sale meat supplier is in Brooklyn, New York and it does 50 million dollars of revenue annually with a high operating costs in razor thin margins. The A. Stein Meat Products has been selling their quality meats for about 75 years to the finest restaurants along with shipping their products all over the country. In the last year they lost $400,000 if it continues the A. Stein Meats will be forced to close its business and with about 47 employees will be out of work.
Mr. Washington demands compensation for the losses that Burger Ranch’s restaurant sustained as a result of the fire. He faxed a copy to Erica Marcus of the construction bid Burger’s restaurant accepted to reconstruct the premises, which came out to $464,900. In addition to the reconstruction costs, he also demands compensation for the potential profits the restaurant could have generated during the downtime.
People may argue that meatpacking is an important industry for its efficiency and low cost. These naysayers are correct in saying this is an important industry. One way to mke it a much healthier industry, however, is to cut the efficiency of it. If there are not thousands of cattle in a pin, the risk of the cattle contracting a deadly virus such as E. Coli is proven to come down tenfold.
Today what is known as In-N-Out Burger was first founded by Harry Snyder and his wife Esther Snyder in 1948. The first location was in Baldwin Park California (ReferenceforBusiness.com). Now with over 200 locations in California, Arizona, Nevada, Utah, and Texas it has been ranked number one in many polls (ReferenceforBusiness.com). Today its headquarters are in Irvine California.
OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.
Burger King is situated close to their competitors such as MacDonald’s and other food restaurants. They are fairly new in South Africa had gained much of the market share. They have to maintain their service in order to maintain their share of the market and to increase it. There is no middleman within Burger King. Consumers can go directly to the Burger King store and purchase whatever they desire. Burger King suppliers are
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
New Entrants Substitutes Bargaining leverage: -Buyer switching cost Price sensitivity: -Price/total purchases -Impact on quality -Switching cost of suppliers - Impact of inputs on cost or differentiation - Brand identity. - Industry growth -Investment in technology and restaurants -Product difference. -Exit barrier Suppliers -Economies of scale -Product differentiation -Capital requirements -Cost advantages Buyers Industry Competitors
Fast food chains use value pricing. This type of pricing is how much the customer thinks an item on the menu is worth. Basically what this means is customers see price as a primary indicator of a product’s value. Value pricing happens when a company increases a product’s benefits while either maintaining or decreasing the price. A great example of value pricing in McDonald’s is the ability to “super-size” drinks and fries. The value of the drink or fries is increased because a customer can get substantially more of the item for a fraction more of the
A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of business. This will ensure the restaurant remains competitive. For effective management of cash inflows, the management will require to create an environment whereby each item has been priced conspicuously and reflecting the cost of bringing the same to the table as well as the profit margins targeted by the restaurant (Mark 1998).
McDonalds also play a role especially into the goods being safe to use and being very reliable with provided instructions. This will benefit the customer's safety and hoping to be very reliable during the customer's use because its helps the business to increase it sales by keeping the existing customers and attracting new ones.
Each staff member of the restaurant should have nice and clean hygiene along with good manners. Having good hygiene is very important whether an employee is waiting tables, washing dishes, or cooking. If an employee does not shower friction will start to grow between the staff and no one would like to work or even be around that employee. Working in the food service industry with overgrown nails or dirty nails is against the health code and could contaminate the food being prepared by the employee. Being around a customer with bad hygiene could possibly hinder the customer from having a memorable time at the restaurant. Having good manners is also mandatory for every staff member so that no problems can surface between the staff and customers. Steve Marchetti explained that each employee are to meet the minimal standards set forth in the employee handbook and also deliver on the company?s commitment to their customers (Marchetti). A restaurants commitment...
The restaurant employees are not following the cleaning and sanitation standards set by the restaurant’s managers and officials. The restaurant employees do not practice hygiene before coming into and at while they are at work. Sadly, it seems that the standards of sanitation most employees hold are declining. Employees are not bathing before work; they are wearing the same uniform they have been all week so that they do not have to spend the time and money it takes wash it, coming in hung-over or on some sort of drug(s), after throwing up, having diarrhea and being contagiously sick. The reason for this is that most employees do not care and just want a paycheck. Granted that the sanitation standards are changing with the years but even the smallest thing can still cause some kind of sanitation violation. Take for instance the employee usage of gloves: “When new and in good condition gloves are a help but, all too frequently, they are worn until the glove surfaces become roughened, porous and even split; in this state they are more a hazard than a help since they may harbour large numbers of bacteria on their damaged surfaces” (Forsyth and Hayes 374). However, even if the gloves do not split or break an employee can still be the cause of problems such as cross contamination by not changing out the gloves when fin-ished with the task just performed, or keeping them on throughout the duration of the shift. Howe...
Focusing on local produce – if McDonalds focuses on local produce, it has been shown that consumers favour this and trust produce from New Zealand, which may lead to an increase in profits.
Cleaning Schedule; (has not shown), “Clean as You Go” policy did not apply in the food preparation place while it must be their biggest concern.