Strategic Issues, Challenges, Solutions and Implementations Faced by Honest Burger Ltd During Covid-19 and Brexit

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Strategic Issues............................................................................................................................3
Challenges....................................................................................................................................8
Solutions....................................................................................................................................15
Implementations........................................................................................................................17
CONCLUSION..............................................................................................................................18
RECOMMENDATIONS...............................................................................................................18
REFERENCES................................................................................................................................1

INTRODUCTION
Understanding the business competitive position and identifying the sources of sustained
competitive advantage for firms is one of the biggest challenge face by UK firms during Covid-
19 outbreak and Brexit. The present report will be based on UK based great British burger
restaurant in London name “Honest Burger Ltd.”. Honest Burger Ltd have 10 year of experience
in hospitality industry (Honest Burger Ltd overview. 2021). The total number of employee work
with the honest burger ltd is 726 as per 2020 annual report. The aim of Honest Burger Ltd is to
provide high quality burger and chips to its local customers at reasonable price (Appiah and
et.al., 2021). In order to maintain the quality of burger, the company uses quality beef which
basically comes small farm in Gloucestershire. However, due to covid-19 and Brexit, the
company have faces different challenges that have further impact their restaurant operation and
financial liquidity.
Hence, the report will identify the strategic issues faced by Honest burger using STEEPLE,
PORTER and MCKINSEY Model. Further, the report will also identify the challenges faced by
restaurant using TOWS model along with the main challenges regarding Covid-19 and Brexit
using their financial statistics. Lastly, the report will suggest solutions to deal with the challenges
and its implementation along with the proper recommendation.
MAIN BODY
Strategic Issues
STEEPLE of Honest Burger Limited
STEEPLE analysis is the strategic planning tool and is used by the business when
planning strategic positioning. It stands for Social, Economic, environmental, political, legal and
ethical factors.
 Social factors: In the social sector and also with the emergence of the Covid-19 , people
are becoming more educated and conscious about their health about the food they eat in
order to stay healthy. The management of the Honest Burger should focus on changing
needs and preferences of their customers(Karpenko, and et.al., 2019). They should focus
on identifying the behaviours and changing lifestyle of the customers as well.
 Technological factors: With the increasing scope of technology, it is necessary for the
company to focus on adopting various digital marketing technologies in order to promote

their products on various social media platforms . Honest Burger also provide the online
delivery facilities for better experience of their customers. This can an advantage for the
company which can help the restaurant to expand its business in other countries.
 Environment factors:It is one of the major factor that can affect the functioning of the
restaurant. In order to successfully operate it business, it is necessary for the company to
comply with the rules and regulations and ensure health and safety of the
customer(Zhao, and Dou, 2019). After the outbreak of Covid-19 people prefer to visit and
order from the places that is hygienic and follow all the safety standards.
 Economic factors: The policies and restriction imposed by government can be a barrier
that can affect the business of the company. Taxes that is charged on food items can
affect the business as there has been increase in the prices of the ingredients and also
depend upon the spending power of people.
 Political factors:The political factors can affect the business as government is focused
towards health and safety of the customer and make frequent changes in the
regulations(Taylor, and Perkins, 2021). For overall it can be threat as it is considered as
fast food is unhealthy and can lead to various health problems but for Honest Burger it
can be an opportunity as they follow all the hygiene factors while preparing the food.
 Legal factors:Various restriction are imposed by the government regarding the control of
supply for various food products but It can an opportunity for the company as all the
products are home made which can be advantage for the company.
 Ethical factors:Honest Burgers follows positive ethical approaches which helps the
company to build its reputation and expand it business.
PORTER Five Forces Model
This is a model which helps in identifying and analysing the sector strength and
weaknesses. In order to analyse and understand the restaurant sector strength & weakness along
with the strategic issue attach with the Honest Burger limited UK, the porter five forces model
has been used:

(How Porter’s Five Forces Can Help Small Businesses Analyze the Competition. 2022)
Competition in the sector (High): Due to low switching cost and cost of product
differentiation, the level of competition in the restaurant sector is high or intense. It also put
pressure and cause issue for the company that want to sell the goods and service at low cost. As
per this force, it is analysed that high completion and high capital cost is a strategic issue for
Hotel Burger Ltd to sale its burger and chips at low price with proper cost cutting.
Threat of new entrants (High): The high capital cost associated with the restaurant
sector where new entrants need to invest high cost in innovation and quality service to meet the
local company standards. The impact of which the threat of new entrant’s force is high in
restaurant sector which is an advantage for Hotel Burger Ltd. With the help of this, Hotel Burger
ltd able to protect its customer base from the competitors (Evayani and Rido, 2019).
Bargaining power of supplier (Low): In restaurant sector, the level of competition is high
which indicate that restaurants have to maintain a cost advantage over its rival firms. This further
means that the force of bargaining power of supplier in UK restaurant sector is low which is a
strategic issue for Honest Burger Ltd that they need to cut their cost and provide the quality
product at low price as compared to its competitors in order to sustain in competitive
environment.
Bargaining power of customer (High): The bargaining power of buyer or consumer in
restaurant sector is high. It is because they have many choices or supplier of the same product. It
means this is also a strategic issue for the Honest burger restaurant which involve customer
retention and loyalty. The issue faces by Honest burger is that they need to keep their cost low,

food and beverage unique and quality high in order to retain existing consumers and attracting
new one.
Threat of Substitute product (Low): The threat of substitute product is low in the
restaurant sector because every organization have their unique method of preparing the food and
beverages (Islam and Al Amin, 2019). Thus, it is an advantage for Honest Burger ltd with the
help of which the company can gain competitive advantage in UK market. However, the issue
associated with Honest Burger is to protect their method and procedure of burger preparation
from competitors and hackers via using proper intellectual property.
MCKINSEY MODEL
This is a model which state the seven internal elements of an organisation that need to be
align together in order to successfully exist in the competitive environment. In order to identify
how well Honest Burger Ltd is positioned itself in UK market to achieve its goal, the
MCKINSEY model have been used. It is divided into hard and soft element which are as
follows:
(Analysing the organization structure based on 7s Model of MCKINSEY. 2022)
Hard Element
Strategy: This is a hard element of the MCKINSEY model which state the strategy adopt
and follow by the organization in order to maintain a competitive advantage over competitors.
For example, the closet competitors of Honest Burger ltd are Umami Burger, Wahl burger, In-N-
Out burgers etc. In order to maintain and enhance its competitive position in UK market, Honest