Literature Review Honest Burgers

This report includes literature review of a UK restaurant – Honest Burgers. It includes history of this burger company and how it managed its operations during COVID 19. This report will provide discussion about how this restaurant managed to work at the time of COVID and overcome the challenges.

Honest burgers

ABSTRACT
This report includes literature review of a UK restaurant – Honest Burgers. It includes history of
this burger company and how it managed its operations during COVID 19. This is first restaurant
of Brixton and it offered home-made rosemary salted chips. At the time of pandemic, various
restaurants and pubs within UK have to face challenges as due to lockdown they have to close. It
resulted in declined sales and profits. This report will provide discussion about how this
restaurant managed to work at the time of COVID and overcome the challenges.

Table of Contents
Honest burgers ........................................................................................................................1
ABSTRACT.............................................................................................................................2
INTRODUCTION ..........................................................................................................................4
PRESENTATION OF DATA.........................................................................................................5
How COVID 19 has negatively impacted sales of Honest Burgers Ltd?....................................5
What are the different ways used by Honest burgers to overcome the challenges faced during
COVID 19? .................................................................................................................................6
PRESENTATION OF MODELS AND THEORIES......................................................................7
REFERENCES..............................................................................................................................11

INTRODUCTION
COVID-19 is Honest Burgers Ltd. is a UK based restaurant that started in the year 2011 in
Brixton village, London. This restaurant has worked for a decade and main motive of this
company is to provide quality food items to customers. This restaurant was established by Tom
Barton, Phil Eles and Dorian Waite. They were having objective and goal of providing high
quality burger to UK customers. This restaurant provides pleasant atmosphere to customers
where they can enjoy having burger meal with friends and family. It also sells good taste fries
and fast food dishes. Honest Burger restaurant provides high-quality beef and best potatoes in
dishes.
Literature Aim
The aim is to evaluate major impact of COVID 19 on sales of an organisation. A study on
Honest Burgers Ltd
Literature Objectives
 To evaluate how COVID 19 has negatively impacted sales of Honest Burgers Ltd To assess different ways used by Honest burgers to overcome the challenges faced during
COVID 19
Literature Questions
 How COVID 19 has negatively impacted sales of Honest Burgers Ltd?
 What are the different ways used by Honest burgers to overcome the challenges faced
during COVID 19?

PRESENTATION OF DATA
How COVID 19 has negatively impacted sales of Honest Burgers Ltd?
According to Honest Burgers (2017), COVID-19 has impacted sales and profits of
different companies of hospitality industry. It has also resulted decline in sale and profit of
Honest Burgers. There were new guidelines adopted in Honest Burgers due to pandemic
situation. There were various challenges faced by Honest burgers due to COVID 19. Various
food companies have to increase efficiency of online delivery. There were some restrictions
imposed by UK government on companies to work accordingly at the time of pandemic. Honest
Burgers has shut down and closed all branches at this time. This restaurant has faced lot of
challenges related to operations, delivery and functioning. The major issue which this restaurant
faced in dissatisfaction of customer needs and requirements. Several rules were made in context
of social distancing and that is why restaurant gatherings were not allowed. Because of this
online orders from customers increased and it was not easy to manage the operations properly.
.
Figure 1: COVID-19 has impacted on resturents

The restaurant has reported high rates of employee absences because they were afraid of
global COVID-19 pandemic. It has also seen that meat processing facilities in the different
regions of the United Kingdom worst hit by global pandemic COVID-19. It has seen that
COVID-19 clusters have found in meat processing plants in the country. Employees generally
work in close proximity to each other in the restaurant, making it more tough to respect physical
distancing needs. There are also some cases in which employees working in the restaurant live
together in overcrowded situations, which also facilitates the spread of the virus. The procedure
of meat processing is more sensitive than any other kinds of food processing because of the
labour intensive nature of operations (Kim, Bonn and Cho, 2021). There are many meat
processing plants in the United Kingdom that have shut down and also forced these plants to
operate at reduced capacity.
Honest Burgers Ltd has also seen drastic shift in consumer demands due to COVID-19.
This global pandemic COVID-19 has led customers away from restaurants. Consumers have
started consuming homemade food rather than ordering food from restaurants due to social
distancing norms because of pandemic COVID-19 (Elshaer, 2021). It has also seen that as soon
as COVID-19 pandemic had gathered pace, sales of Honest Burgers Ltd had also collapsed or
decreased. Honest Burgers Ltd had also seen declined reservations as soon as lock-downs were
enforced.
What are the different ways used by Honest burgers to overcome the challenges faced during
COVID 19?
As per the viewpoint of Honest Burgers (2019), employees and staff members are most
essential asset for any organisation.
The respective organisation creates various bots along with updating flows on those who
were already addressing urgent business as well as communication requirements. Two bots are
Honest Collaborator and Honest College which are greatest vehicles for effective interaction
around COVID-19 and also facilitated in various functioning. Honest Burger in UK flatters the
curve through clearly communicating sick pay as well as sick leave during pandemic. This
reduced employees number who get ill but still presenting at work. This has thus helped the
restaurant to keep its employees satisfied in the organization and continue its work with greater
efficiency and effectiveness. Honest Burgers Ltd has also used the bot platform to inform team
members how much statutory sick pay and enhanced sick pay they will receive while they are

out of work. By using Bots in workplace, the respective company extended ability of keeping
own community such as family at time of crisis of COVID 19. During this time, Honest Burger
improved its internal process and also experienced increased team-working among front-line as
well as employees along with increased knowledge and development system. The organisation
has practised policies of COVID-19 for its workplace and include critical vulnerable as well as
extremely vulnerable persons, employees travelling to and from work and many more. This has
also included restricted access, coronavirus testing, daily health screening, cleaning, staff breaks,
customer payment methods, etc.
PRESENTATION OF MODELS AND THEORIES
VRIO analysis for the Internal Factors (MICRO)
With the help of this model, an organisation can evaluates its resources as well as
capabilities. Honest burgers use this model because it helps the company in gaining competitive
advantages through analysing its capabilities. VRIO model for Honest burger is given below:

Parameters Value Rareness Imitability Organisation
Financial resources Yes Yes Yes Yes
Patents Yes Yes Yes No
Employees Yes Yes No No
Food products Yes No No No
 The valuable resources of Honest Burger includes its financial resources, patents,
employees and its superior quality products that help the company in overcoming any
threat that occurs in business.
 The rare resources of respective organisation involves financial resources, patents and its
manpower because it is not easy for any company to or competitor to possess patent and
financial position as of Honest burger. Company is also having skilled and trained
employees so these are also rare resources for organisation.
 The company also has imitable resources such as financial resources and patents and
these are considered as imitable because these resources are tough or expensive to imitate
and competitors find difficulties in maintaining such strong financial base and
government authority.
 Financial resources of Honest burger are organised and allocated in an effective manner
that provides competitive advantage to company by making optimum utilisation of these
resources.
PESTLE analysis for the External Factors (MACRO)
PESTLE Analysis tool helps in analysing the impact of macro-environmental factors
that influence functioning of an industry. Honest Burger use this tool because it helps the
company in making effective decisions. Pestle analysis of respective organisation is discussed
under:
 Political factors: Such factors are associated with political stability of a country in which
it is operating. In context of present situation, COVID 19 is a major factor as government
of UK has made certain guidelines like social distancing, proper sanitizing, etc. It impacts
business operations of Honest Burgers because company has to follow such lockdown
policy and led to reduction in sales.

 Economic factors: Honest Burger is operated in UK where economy is stable and
market-oriented but pandemic situation of COVID 19 influenced business operations in
negative way as there was reduction in sales and profitability of organisation.
 Social factors: Nowadays consumers are more concerned their health and Honest Burger
is considering customer's perceptions and preferences and introducing its food products
like healthy burgers made up of different veggies. It positively influenced business
operations as more market-base will get attracted towards it.
 Technological factors: Company is using highly upgraded machines and technologies in
producing food products which saves both time and cost. It positively influenced
performance of business and enhance profitability level also.
 Legal factors: Legislative system of UK has made employment laws, consumer
protection laws, etc. and Honest Burger adhere these laws and working in ethical
environment. It favourably impact the business performance and builds positive brand
image in market-place.
 Environmental factors: Such factors involve pollution, recycling, climate, temperature,
etc. and these factors should be taken into consideration by Honest Burger in order to
increase customer loyalty and efficiency within business.
Stakeholder Mendelow’s Matrix
Mendelow's Stakeholder Matrix to be used to identify the stakeholders
 If the stakeholders of Honest Burger have both high interests and high, then the influence
of these group of persons are very high on organisation. They have influence the
strategies and management of the organisation.
 If the stakeholder of the company has high interest but low power. These types of persons
want to interfere in the management but they do not have power to do so.
 If the stakeholders have low interest and high power in the organisation so their
satisfaction level are high.
 If the stakeholders of the organisation have low power and low influence in their
organisation so they do not have any interest in the organisation.
Various stakeholders of Honest burger ltd. are Frank Hayes who is the CEO of company, staff
working there, customers, governments and others.
Porter’s Five Forces model

The Porter’s five forces model in context of honest burger is described below:
 New entrants: It is related to those threat which is faced by the company due to the entry
of new player in the market. The threat of new entrant will always be important and the
matter of focus for the management of the organisation. Honest Burger operates their
business in the market of United Kingdom where the government has provided many
relaxations to new companies to promote the business in their markets. Many new
ventures are developed in the market due to the flexible policies of the government
 Substitutes: The threat of substitute will great threat for the company in the market. It is
related to those threat which is created due to presence of substitutes in the market. There
are many companies are operating in same industries which has provided similar product
to the company in the market at lower prices. The Honest burger has to face many
problems related to substitute in the market such as loss of customer base, decreases
profitability and market share.
 Bargaining of suppliers: The bargaining power of of the suppliers are the matter of
focus by the management and it impacts the organisation in both positive and negative
aspect. If the number of suppliers are more than their bargaining power are low and the
company are in a position of dominating the price of raw material. If the number of
suppliers are low in the organisation, then their bargaining power are high and dominate
the prices of the raw material in the organisation. If the bargaining power of the suppliers
are high in the market, then it has negative impact on the profit margins of Honest
Burger.
 Customer bargain: The bargaining power of the customers are always high in the
market as the customers in the market always demand new and innovative product from
the company. The management of the Honest Burger has developed their business in food
industry where the number of food providers are high so that the bargaining power of the
customers are high.
 Managing inter-firm rivalry: There are many rivals are present in the market such as
McDonald's, Wendy's International Inc which provides extensive competition to the
Honest burger. The marketing framework of these companies are very effective which in
result they hold major part of the market.
ANNUAL STATEMENT

REFERENCES
Books and Journals
Bermes, A., 2021. Information overload and fake news sharing: A transactional stress
perspective exploring the mitigating role of consumers’ resilience during COVID-
19. Journal of Retailing and Consumer Services, 61, p.102555.
Burhan, M., Salam, M.T., Abou Hamdan, O. and Tariq, H., 2021. Crisis management in the
hospitality sector SMEs in Pakistan during COVID-19. International Journal of
Hospitality Management, 98, p.103037.
Elsafty, A.S. and Ragheb, M., 2020. The role of human resource management towards
employees retention during Covid-19 pandemic in medical supplies sector-
Egypt. Business and Management Studies, 6(2), pp.5059-5059.
Mastronardi, L., Cavallo, A. and Romagnoli, L., 2020. Diversified farms facing the COVID-19
pandemic: First signals from Italian case studies. Sustainability, 12(14), p.5709.
Narayanamurthy, G. and Tortorella, G., 2021. Impact of COVID-19 outbreak on employee
performance–moderating role of industry 4.0 base technologies. International Journal of
Production Economics, 234, p.108075.
Sharma, A., Shin, H., Santa-María, M.J. and Nicolau, J.L., 2021. Hotels' COVID-19 innovation
and performance. Annals of Tourism Research, 88, p.103180.
Sheng, J., Amankwah‐Amoah, J., Khan, Z. and Wang, X., 2021. COVID‐19 pandemic in the
new era of big data analytics: Methodological innovations and future research
directions. British Journal of Management, 32(4), pp.1164-1183.