Impact of COVID-19 on Sales of Honest Burger: A Case Study

This report discusses the impact of COVID-19 on the sales of Honest Burger, a restaurant in the UK. It includes the ways in which the restaurant overcame the challenges faced during the pandemic. The report also includes a VRIO analysis and PESTLE analysis of the industry.

Undergraduate Major Project
Integrated Case Study

Abstract
This report involves literature review on restaurant of UK- Honest Burger. Moreover, it
incorporates firms’ operations management during pandemic situation that is COVID-19.
Additionally, it is the initial restaurant of Brixton as well as they provided home-made rosemary
salted chips. During COVID-19, several restaurants and pubs in UK have to tackle difficulties as
because of lockdown it has to close. These outcomes in reduction into business profits and sales.
The particular report would facilitates explanation related to how this restaurant maintain
performance during COVID-19 and overcoming from challenges.

Contents
Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................1
PRESENTATION OF DATA.........................................................................................................2
How COVID-19 have adversely impacted on Honest Burger Ltd.’s sales?................................2
What are the various ways applied by Honest Burger for overcoming from the challenges
tackled during COVID-19?..........................................................................................................3
PRESENTATION OF MODELS AND THEORIES......................................................................4
CONCLUSION................................................................................................................................7

INTRODUCTION
Entity is considered as a group of individuals who performs together to attain common
objectives. Moreover, individuals who perform together into business for developing as well as
selling items & services. Other people are ones who buy the goods and services. The person who
recruits individuals for working is the business owner. Into society, business plays vital role as
creative as well as competitive edge which contributes towards shaping the society on regular
basis (Agnihotri and Bhattacharya, 2022).
Literature Aim
“The aim is to determine the key impact of COVID-19 upon organisational sales. A case
study on Honest Burgers Ltd.”.
Literature Objectives
 To analyse how COVID-19 have adverse impact on Honest Burger Ltd. sales.
 To evaluate the various ways applied by Honest Burger for overcoming from the
challenges tackled during COVID-19.
Literature Questions
 How COVID-19 have adversely impacted on Honest Burger Ltd.’s sales?
 What are the various ways applied by Honest Burger for overcoming from the challenges
tackled during COVID-19?
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PRESENTATION OF DATA
How COVID-19 have adversely impacted on Honest Burger Ltd.’s sales?
As indicated by Honest Burgers (2017), COVID-19 has affected deals and benefits of
various organizations of hospitality industry. It has likewise come about decrease in sales and
benefit of Honest Burgers. There were new rules taken on in Honest Burgers because of
pandemic circumstance. There were different moves looked by Honest burgers because of
COVID 19. Different food organizations need to build effectiveness of online conveyance. There
were a few limitations forced by UK government on organizations to work appropriately at the
hour of pandemic. Legitimate Burgers has closed down and shut all branches right now. This
restaurant has confronted part of difficulties connected with tasks, conveyance and working
(Anwar, Gill, Fitzgibbon and Gull, 2022). A few standards were made in setting of social
removing and to that end restaurant get-togethers were not permitted. Due to this internet based
orders from clients expanded and it was difficult to deal with the tasks appropriately.
Figure 1: COVID-19 has impacted on resturents
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The restaurant has revealed high paces of representative unlucky deficiencies since they
feared worldwide COVID-19 pandemic. It has likewise seen that meat handling offices in the
various areas of the United Kingdom most exceedingly awful hit by worldwide pandemic
COVID-19. It has seen that COVID-19 bunches have found in meat handling plants in the
country. Representatives for the most part work in nearness to one another in the café, making it
more extreme to regard physical removing needs (Fikri and Putra, 2022). There are additionally a
few cases in which representatives working in the restaurant live respectively in stuffed
circumstances, which likewise works with the spread of the infection. The strategy of meat
handling is more delicate than some other sorts of food handling on account of the work
concentrated nature of tasks. There are numerous meat handling plants in the United Kingdom
that have closed down and furthermore constrained these plants to work at decreased limit.
What are the various ways applied by Honest Burger for overcoming from the challenges tackled
during COVID-19?.
According to the perspective of Honest Burgers (2019), representatives and staff individuals
are most fundamental resource for any association. The separate association makes different bots
alongside refreshing streams on the individuals who were at that point tending to dire business as
well as correspondence prerequisites. Two bots are Honest Collaborator and Honest College
which are most prominent vehicles for viable cooperation around COVID-19 and furthermore
worked with in different working. Honest Burger in UK compliments the bend through
obviously imparting debilitated pay as well as wiped out leave during pandemic. This decreased
representatives number who get sick yet introducing at work (Meshulach and Kedar-Levy,
2022). This has accordingly assisted the café with keeping its representatives fulfilled in the
association and proceeds with its work with more prominent proficiency and viability. Honest
Burgers Ltd has likewise utilized the both stage to illuminate colleagues how much legal
debilitated pay and upgraded wiped out pay they will get while they are unemployed. By
involving Bots in working environment, the individual organization expanded capacity of
keeping own local area like family at season of emergency of COVID 19. During this time,
Honest Burger worked on its inner cycle and furthermore experienced expanded group working
among forefront as well as representatives alongside expanded information and improvement
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framework (Rawat and CHAUBEY, 2022). The association has drilled strategies of COVID-19
for its working environment and incorporate basic defenceless as well as very weak people,
representatives heading out to and from work and some more. This has likewise included
confined admittance, Covid testing, day by day wellbeing screening, cleaning, staff breaks, client
instalment strategies, and so forth.
PRESENTATION OF MODELS AND THEORIES
VRIO analysis for the Internal Factors (MICRO).
With assistance of VRIO model, an entity may determine their resources and abilities.
Moreover, Honest Burgers utilise this model as this aids firm to gain competitive benefits by
evaluating their capabilities. VRIO Model of Honest Burgers is provided below:
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 The valuable resource of Honest Burger incorporates their monetary resources, patents,
staff and their higher quality items which assists the firm to overcome from any threats
that occurs into ventures.
 The Rare resources of Honest Burger incorporates monetary resources, patents and their
personnel as this is not for any firm as well or rivals for possessing patents and monetary
position as of respective entity. Firm is also have proficient as well as trained staff so
these are the rare resources for company.
 The firm also have imitable resources like monetary resources as well as patents and
these are undertaken as imitable as those resources are harder or precious for imitating
and rivals identify issues to maintain such stronger monetary base as well as government
authority.
 Monetary resources of Honest Burger are organised as well as allocated effectively and
efficiently which facilitates competitive edge to firm through forming optimal usages of
those resources.
PESTLE analysis for the External Factors (MACRO)
Pestle analysis is a method that is used to determine all of the internal and external variables of
the honest burger industry, and it includes some of the following basic factors:
 POLITICAL FACTORS: This is the aspect that incorporates the government's
engagement in the cafe enterprise, and it's apparent that it includes taxation policies, trade
restrictions, and the government's political stability, as well as tariffs. The government
can also raise portion of the collaboration tax, which affects businesses by increasing the
value added tax on products and causing some price changes (Rodríguez-Robayo and et.
al., 2022). It's about how the functioning of the burger business has been altered as a
result of government intervention and judgments. The most important political element
for the honest burger is Brexit, which refers to the market crisis that occurred when
England was declared not to be a member of the European Union, and this issue also
resulted in serious problems in the burger's productivity in the food industry.
 ECONOMIC FACTORS: This is the aspect that determines the level of competition in
the marketplace for all burger shops enterprises and also identifies any rivalry difficulties
in the working environment and the franchise location. Exchange rates, wage rates,
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inflation rates, regulations, policies, and interest rates are all elements that affect
company.
 SOCIAL FACTORS: These are the elements that have an impact on a person's life,
health, and wealth, and they include religion, purchasing habits, educational attainment,
and family background. And there are some elements that are okay in some countries but
are not acceptable in others.
 TECHNOLOGICAL FACTORS:These refer to new and advanced technology in the
cafe business that are introduced for the purpose of enhancing the cafe venture. These
factors have a significant impact on business execution plans as well as the marketplace,
and it is imperative that the company be aware of all new technological factors and be
able to respond quickly in a given period of time (Tiffany and Peterson, 2022). This is
the determining factor in the functioning of the burger franchise and the company's
relationship with the people who frequent the store on a daily basis and enjoy the honest
burgers. This processing necessitates the use of abilities such as marketing, production
processes, and dealing with internet transactions.
 LEGAL FACTORS:This is the kind interaction between the government body and the
cafe business, and it is one of the aspects that affects some of the things that the cafe
venture can do or not accomplish. There are several challenges that arise when the
government makes policy and legislative changes that influence the franchise operation.
It also entails obtaining a franchise licence in a certain location, making investments in
the company, dealing with taxes, and importing and exporting in the marketplace. Some
human acts are restricted by laws enacted by government authorities. As a result, honest
burger is not permitted to carry out its activities without a detailed strategy, as they must
ensure that they meet certain obligations such as quotas, resources, import and export.
With the introduction of the sugar tax in the United Kingdom, all food franchises,
including honest burger, must avoid these charges on goods and services in order to save
money.
 ENVIRONMENTAL FACTORS: This element includes natural disasters such as
pollution, weather change, and temperature change, all of which have an impact on
people's health (Voukkali and Zorpas, 2022). Diversification of the environment can have
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a wide range of effects on the food industry, as customers will modify their preferences
as a result.
CONCLUSION
As per the above report it has been concluded that, Businesses improve people's quality of
life and raise their level of living by meeting needs and wants that they can't meet for themselves.
It is a method for individuals to sell goods and services to customers while also making a profit
for themselves. So, COVID-19 has impacted the business adversely. Also, VRIO and PESTLE
models are use to analysing the market effectively and efficiently.
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