Harvard Case - The WORKS Gourmet Burger Bistro
"The WORKS Gourmet Burger Bistro" Harvard business case study is written by Eric Dolansky, Bruce Miller. It deals with the challenges in the field of Marketing. The case study is 6 page(s) long and it was first published on : Oct 10, 2017
At Fern Fort University, we recommend a comprehensive strategy for The WORKS Gourmet Burger Bistro that focuses on brand expansion, digital marketing, and strategic partnerships. This strategy aims to leverage the company's strong brand equity, innovative product offerings, and customer loyalty to achieve sustainable growth and solidify its position as a leading gourmet burger destination.
2. Background
The WORKS Gourmet Burger Bistro is a successful, family-owned restaurant chain specializing in gourmet burgers. The company has achieved significant success in its home market, but faces challenges in expanding its reach and maintaining its competitive edge. The case study highlights concerns regarding market saturation, increasing competition, and the need to adapt to evolving consumer preferences.
The main protagonists of the case study are the founders and owners of The WORKS, who are grappling with the decision of how to best grow their business and navigate the evolving restaurant landscape.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand equity: The WORKS has built a loyal customer base through its commitment to quality ingredients, unique burger creations, and excellent customer service.
- Innovative product offerings: The company's menu features a wide variety of gourmet burgers, catering to diverse tastes and dietary preferences.
- Experienced management team: The founders possess a deep understanding of the restaurant industry and have successfully navigated previous challenges.
- Strong customer loyalty: The WORKS enjoys a high level of customer satisfaction and repeat business.
Weaknesses:
- Limited geographic reach: The company's operations are primarily concentrated in its home market, limiting its potential for growth.
- High operating costs: The WORKS' commitment to quality ingredients and service can lead to higher operating costs compared to competitors.
- Dependence on traditional marketing: The company relies heavily on traditional marketing channels, which may not be as effective in reaching younger demographics.
Opportunities:
- Expanding into new markets: The WORKS can leverage its strong brand and product offerings to enter new geographic markets, both domestically and internationally.
- Developing a robust online presence: The company can utilize digital marketing strategies to reach a wider audience, increase brand awareness, and drive online ordering.
- Partnering with other businesses: The WORKS can collaborate with other food and beverage companies, delivery platforms, and local events to expand its reach and generate new revenue streams.
Threats:
- Increasing competition: The gourmet burger market is becoming increasingly competitive, with new entrants and established players vying for market share.
- Economic downturns: Economic fluctuations can impact consumer spending, potentially affecting the restaurant industry.
- Changing consumer preferences: Consumer tastes are constantly evolving, and the WORKS must adapt its offerings to remain relevant.
PESTEL Analysis:
- Political: Government regulations regarding food safety, labor laws, and alcohol licensing can impact restaurant operations.
- Economic: Economic growth, inflation, and consumer spending patterns influence demand for restaurant services.
- Social: Changing demographics, dietary preferences, and consumer trends shape the restaurant industry.
- Technological: Advancements in food technology, online ordering platforms, and delivery services are transforming the restaurant landscape.
- Environmental: Sustainability concerns and consumer demand for eco-friendly practices are influencing restaurant operations.
- Legal: Food safety regulations, labor laws, and intellectual property rights are key legal considerations for restaurants.
Marketing Mix (4Ps):
- Product: The WORKS should continue to innovate its menu offerings, introducing seasonal specials, limited-time collaborations, and new burger creations to maintain customer interest and cater to evolving tastes.
- Price: The company should carefully consider its pricing strategy, balancing value for customers with profitability. Exploring tiered pricing strategies, value bundles, and loyalty programs can enhance customer satisfaction and drive revenue.
- Place: The WORKS should explore strategic expansion into new markets, both domestically and internationally. This could involve opening new locations, partnering with existing restaurants, or utilizing delivery platforms to reach a wider audience.
- Promotion: The company should leverage digital marketing channels, including social media, search engine optimization (SEO), and online advertising, to reach a wider audience and build brand awareness. Content marketing, influencer partnerships, and targeted advertising campaigns can effectively engage consumers.
4. Recommendations
1. Digital Marketing Strategy:
- Develop a comprehensive digital marketing strategy: This should include website optimization, social media marketing, search engine optimization (SEO), and paid advertising.
- Create engaging content: The WORKS should regularly post high-quality photos and videos of its food, behind-the-scenes glimpses of its operations, and customer testimonials.
- Utilize social media platforms: The company should actively engage with customers on platforms like Facebook, Instagram, and TikTok.
- Implement a customer relationship management (CRM) system: This will help the company track customer interactions, personalize marketing messages, and build stronger relationships.
- Leverage online ordering and delivery platforms: The WORKS should partner with established delivery services like DoorDash, Uber Eats, and Grubhub to expand its reach and cater to the growing demand for online ordering.
2. Strategic Partnerships:
- Collaborate with other businesses: The WORKS can partner with local breweries, wineries, and other food and beverage companies to create unique cross-promotional events and menu items.
- Partner with delivery platforms: The company can leverage partnerships with delivery platforms to expand its reach and cater to customers who prefer to order online.
- Sponsor local events: The WORKS can sponsor local events, festivals, and community gatherings to increase brand awareness and generate positive publicity.
3. Brand Expansion:
- Explore new geographic markets: The WORKS can expand its operations into new cities and regions, both domestically and internationally.
- Develop a franchise model: The company can consider franchising its brand to accelerate its growth and expand its reach.
- Create a loyalty program: The WORKS can implement a loyalty program to reward repeat customers and encourage further patronage.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of The WORKS' strengths, weaknesses, opportunities, and threats, as well as the evolving restaurant landscape. The focus on digital marketing, strategic partnerships, and brand expansion aligns with the company's core competencies and its mission to provide high-quality gourmet burgers to a wider audience.
The recommendations consider the needs of both external customers and internal clients, including employees, franchisees, and investors. They also take into account the competitive landscape and the need to adapt to changing consumer preferences.
The effectiveness of these recommendations can be measured through metrics such as increased brand awareness, website traffic, social media engagement, online orders, customer satisfaction, and revenue growth.
6. Conclusion
The WORKS Gourmet Burger Bistro has a strong foundation for continued success. By embracing digital marketing, strategic partnerships, and brand expansion, the company can navigate the evolving restaurant landscape, achieve sustainable growth, and solidify its position as a leading gourmet burger destination.
7. Discussion
Other alternatives not selected include:
- Acquiring existing restaurants: This could provide a faster path to market expansion but carries higher risks and costs.
- Focusing solely on traditional marketing: This would be less effective in reaching younger demographics and could limit the company's growth potential.
- Ignoring the need for innovation: This could lead to stagnation and a decline in customer interest.
The key assumptions underlying these recommendations include:
- The continued growth of the gourmet burger market.
- The effectiveness of digital marketing strategies in reaching target audiences.
- The willingness of consumers to embrace online ordering and delivery.
- The availability of suitable franchise partners and locations for expansion.
8. Next Steps
- Develop a detailed digital marketing plan: This should include specific goals, strategies, tactics, and budget allocations.
- Identify and approach potential partners: The WORKS should research and contact companies that could be valuable partners for cross-promotional activities and brand expansion.
- Conduct market research in potential expansion markets: The company should assess the feasibility of expanding into new geographic locations.
- Develop a franchise model: If franchising is pursued, the company should create a comprehensive franchise program, including training, support, and marketing materials.
By taking these steps, The WORKS can effectively implement its growth strategy and achieve its long-term goals.
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Case Description
In October 2014 Bruce Miller, Chief Marketing and Development Officer and co-owner for The WORKS Gourmet Burger Bistro was considering changes to the structure, level, and presentation of his restaurants' prices. The WORKS was the premiere full-service burger restaurant chain in Ontario and had been the fastest growing full-service restaurant business in Canada in 2013, posting 50% year-over-year growth. In the four years Miller and his partners had owned The WORKS they expanded from five locations in one city to 26 locations across Canada. During that time, however, Miller had not altered prices in any significant way and was facing increasing costs of beef as well as a lack of clarity amongst his target segment as to what The WORKS was and what it offered.
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