Fast Food Restaurant [25 marks]
The client is Beef Shake, a ‘Better Burger’ fast casual restaurant chain with 12 restaurants, located in
London. The restaurants have a 1960s American diner décor and the menu can be broken down into
4 categories.
Beef Shake’s Menu
1. Burgers and warm and cold sandwiches, including plant-based options, with a combination of 20
free toppings, served with fries.
2. Soft drinks: Unlimited refills from the ‘Freestyle’ fountain with 300 flavour combinations, some
proprietary, from regular branded soft drinks or sparkling water, with or without extra
flavourings, to exotic carbonated fruity drinks.
3. Fresh milkshakes, made with fruit and milkshake mix-ins to provide over 1,000 varieties, some of
which are proprietary and exclusive to Beef Shake.
4. Desserts: cheesecakes, pastries, ice cream and ‘bottomless’ frozen yoghurt.
Table 1 – Average Prices
Category Average Price
Burgers, etc. £10.95
Soft drinks £3.50
Milkshakes £5.95
Desserts £5.95
The first Beef Shake restaurant opened its doors in May 2000 and, during the first 14 years of
operations, the business grew rapidly. Between 2014 and 2019, Beef Shake still grew steadily but its
growth rate did not match that of the previous years. The last restaurant opened in 2014.
The past two years have been difficult for Beef Shake. Successive Covid-19 lockdowns hit the business
hard but profitability had already started to decline in 2019 and, according to the client, the restaurant
is steadily losing money. You have been contracted by the CEO of Beef Shake to discover the root of
the problem.
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MN5070 Practice of Consultancy | Assessment Comp001 | Autumn 2021/22 | R van Wijnen
Scope: The option to adopt a franchise model should not be explored at this stage.
Constraints: Closing unprofitable restaurants is an option but relocating existing restaurants is not.
CEO: Jack Raeburn
Additional Information:
• Beef Shake currently has a 6% market share of the London fast casual ‘Better Burger’ market.
• Beef Shake’s main competitors are: Shake Shack, Five Guys, Smashburger and, to a lesser extent,
Nando’s and Gourmet Burger Kitchen.
• Compared to the sector average of 80 to 125 seats, Beef Shake restaurants are more intimate and
comfortably seat 60 to 80 people. Typical Beef Shake restaurant layout: 2 tables seating 6; 12 tables
seating 4 and 6 tables seating 2 i.e. an average of 72 seats and 20 tables per restaurant.
• Dinner service (5pm-10pm) average table turnover time is 60 minutes, with a table turnover rate
of 5, serving an average of 100 parties (based on 20 tables), whereas the average seat turnover
rate is 4.5, serving an average of 288 covers (based on an average of 64 occupied seats out of an
average of 72 available seats). Table turnover time, table turnover rate and seat turnover rate
are below sector benchmarks of 45 minutes, 6.7 and 6 respectively.
NB: Table turnover rate refers to the average number of times a table is flipped during service.
Seat turnover rate refers to the average number of times a seat will be occupied during a serving
period. A seat turnover rate that is lower than the table turnover rate means not all available
seats at the table are filled e.g. a number of 4-person tables may be seating parties of 2 or 3.
• Beef Shake has stated its main strengths and capabilities are related to its strong brand, high food
quality, menu and customer choice, excellent customer service and the strong team dynamics
among its employees.
• Employee turnover is 12%, which is below the hospitality sector average of 30%.
Required for Task 1 (Comments for task 1 should not exceed 500 words in total.)
1. Define the problem facing the client and summarise the key information in a problem definition
worksheet. The words contained in the problem definition worksheet are not part of the word limit.
2. Create an issue tree to identify the potential key issues underlying the client’s problem. Ensure
your tree is MECE. The words contained in the issue tree are not part of the word limit.
3. Prepare a short report, with deliverables (problem definition worksheet and issue tree), to update
the client on your progress. Specifically, your report should discuss the possible causes of the
problem and make tentative recommendations on how potential issues may be resolved.
