Strategic Challenges Faced by Honest Burgers During COVID-19 Pandemic

This report focuses on the strategic challenges faced by Honest Burgers during the COVID-19 pandemic. It highlights the challenges with the help of PESTLE analysis and provides solutions for tackling them. The report also evaluates various strategies and solutions that can be helpful for Honest Burgers to achieve a high level of organisational performance and gain competitiveness.

Integrated Case Study

EXECUTIVE SUMMARY
This report is mainly focusing on the strategic challenges that were faced by Honest Burgers
during the COVID-19 pandemic. Honest Burgers is a chain of fast food restaurants that is based
in Wales, England and was established in the year 2011. The report has mainly focused on
highlighting how the COVID-19 pandemic has influenced the activities of organisation and led
to the declining in the levels of organisational performance. Moreover, this report describes
various challenges with the help of PESTLE analysis for identifying various external market
factors that influence the organisation and its activities. Along with this, the report has provided
a SWOT analysis of the organisation for identifying its internal strengths and weaknesses along
with the external opportunities and threats for overcoming various challenges. Furthermore, this
report as critically assigns various solutions that could be helpful for the organisation to gain a
higher level of performance and sustainability within the market. In this context it has evaluated
various strategies and solutions that can be helpful for Honest Burgers to achieve a high level of
organisational performance and gain competitiveness. In the end the report has recommended
certain aspects that can be utilised by the business for innocent its abilities and overcoming
issues within its business operations along with the conclusion that summarizes what the report
has been providing.

Table of Contents
INTRODUCTION...........................................................................................................................1
Strategic Issues faced by the organisation.......................................................................................1
Challenges faced by the organisation.....................................................................................4
Solutions for tackling the challenges and issues....................................................................9
Implementation of these solutions in the organisation.........................................................11
CONCLUSION..............................................................................................................................12
RECOMMENDATIONS...............................................................................................................13

INTRODUCTION
The hospitality industry is a broad concept that consists of various services like hotels,
restaurants, leisure/relaxation, travel and tourism, events etc. Hospitality businesses have faced
many severe challenges and consequences due to the upcoming of COVID-19 pandemic. Honest
Burgers limited is a restaurant that deals in serving food to people, headquarter in Brixton
Village, London, and was established in the year 2011. The following report will provide about
the strategic issues and various challenges that the organisation faces such as COVID-19
pandemic. In this context, it will also provide certain methods and solutions to overcome these
challenges as well as the implementation of these solutions within the organisation (Berme,
2021). In the end, and will consist of recommendations to the organisation for improving their
overall performance and competitiveness in the market.
Strategic Issues faced by the organisation
Strategic issues are those challenges that are affecting the ability of the organisation to
achieve its aims, objectives and goals. The strategic issues are mainly affecting the abilities of
the business to achieve their strategic development, growth and objectives. Honest Burgers have
also faced various strategic challenges that have affected the efficiency of the organisation for
achieving its objectives, goals and aims, due to various reasons. The COVID-19 pandemic is
among those factors that has given rise to the strategic issues and has affected the productivity
and performance of the organisation towards its customers and clients. These strategic challenges
are the major contributors for developing the solutions and strategies to overcome them (Burhan
and et. al., 2021).
COVID-19 pandemic
The COVID-19 pandemic is one of the major factors that has negatively impacted the
hospitality industry businesses and their operational activities. COVID-19 is considered as the
biggest global crisis after the great depression 1981-82, because it has halted the global market
activities. It had created many issues that were faced by Honest Burgers that are elaborated
below.
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 Hiring and retaining the staff: It is among the most common problems in the hospitality
industry and the organisation requires employees to handle the front-desk, kitchen,
housekeeping, catering etc. activities in the hospitality industry which was highly affected
due to COVID-19 pandemic.
 Changing market dynamics and trends: The changes in the advertising and marketing
trends across the globe has affected the hospitality industry and made the traditional
marketing methods effective in a rapidly changing market.
 Operational issues: During the COVID-19 pandemic the operational activities across the
market have shifted online (Costa and et. al., 2018). The hospitality industry has also
witnessed the shift in reservation management, front office, payments and bills, hygiene
and cleanliness etc.
 Changing expectations of customers: The COVID-19 pandemic has also affected the
expectations of customers from the businesses in the hospitality industry regarding their
food habits, cleanliness, safety and hygiene etc.
 Irregular cash inflows: It was among the major challenges in the hospitality industry
during the COVID-19 pandemic because the customers have faced difficulties in making
payments for many months.
 Data security challenges: During the COVID-19 pandemic most of the organisations
have shifted online and this has increased the possibilities of data leakage, viruses,
hackers and cyber security etc.
 Losing loyal customers: COVID-19 pandemic has affected the loyal customers and their
loyalty towards the organisation because of loss of connection and engagement.
 Rapid change in technology: The use of technology has intensified in almost all the
industries across the globe and it has affected the choices of customers.
 Business Restoration issues: The COVID-19 pandemic has affected the overall
hospitality industry and the businesses have to suffer losses and they have to work hard to
restore their businesses to their original position.
Many other impacts of COVID-19 can be seen on the business of honest burgers such as
declining sales and profits (Elsafty and Raghe, 2020). The COVID-19 pandemic has majorly
affected the hotel industry across the world and has created various issues such as lower down of
market share, safety and security of customers and employees, lowering down profitability,
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changing technology etc. It has also affected the overall functioning of the organisation as the
traditional methods of business practices were inefficient during the pandemic and the
organisations needed to adopt new techniques and technologies for improving this situation. The
rules and regulations that were implemented in the context of social distancing and complete
lock-downs have lowered the efficiency of organisations to operate in optimum manner. This has
led to lowering down of profits and decreasing efficiency of the business across the market.
Figure 1. S. Lock, 2022, Daily impact of COVID-19 on restaurant dining in the UK 2020-2022
Statista.com, 2022.
It has been obtained from the above graph that COVID-19 pandemic has hit the UK Hotel
industry adversely. It was mainly due to the results of lowering down of the meat processing
facilities in different regions, social distancing, lock-downs etc. across the UK. The graph shows
that the COVID-19 has severely affected the customers and has dropped the overall customers
visiting the hotel. In reference to the Honest Burgers, it can be said that various issues have also
affected the employees working within the organisation and lower down the profitability of the
company. Along with this, it influenced the ability of the organisation to provide high level
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satisfaction to its customers and have better customer service due to the lowering demand of
customers to eat outside (Erginel and et. al., 2018). Therefore, it was compulsory for the
management at Honest Burgers to COVID-19 pandemic for improving their profitability,
production and performance across the industry.
Challenges faced by the organisation
There are many challenges that we face by the organisation in its external environment and
these challenges have negatively impacted the operational activities of the business. The
challenges have affected the overall performance of the organisation and lowered the efficiency
of the business. In reference to Honest Burgers, various challenges can be identified that were
encountered by the organisation in its external market during the COVID-19 pandemic. The
challenge has affected the ability of organisations to provide greater levels of satisfaction to its
customers and have optimum performance in the market. For examining various challenges that
were faced by Honest Burgers, PESTLE analysis is provided. It will help to examine and analyse
the external environment factors and various external challenges that impact the activities and
organisational performance of Honest Burgers.
PESTLE analysis
It is an effective tool or framework that can be utilised by the firms to critically examine
their external environment factors that may influence the operational activities of the
organisation in a particular market (Galli, 2018). PESTLE is an acronym for the political,
economic, social, technology, legal and ecological factors that prevail in the external market
within a particular area. PESTLE analysis of Honest Burgers is given below.
 Political factors: It refers to the political or government aspects that affect and intervene
in the operations of the business and its activities. The political factors mainly consist of
the taxation policies, quota restrictions, tariff barriers, National conditions etc. Honest
Burgers is negatively impacted by the political changes such as the restrictions by the UK
government regarding lock-downs, employment laws, safety protocol and social
distancing etc. This has resulted in decline of the supply chain efficiency of Honest
Burgers as well as the lowering down of the number of customers that decreased the
profitability of the organisation. It has also impacted the prices of goods and services into
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the market as well as the availability of raw material for continuing the basic activities of
the organisation (Haerizadeh, 2019).
Figure 2(The British Pound, Brexit and the Pandemic)
 Economic factors: It refers to the external factors that affect the overall economic
conditions in a given place or area. The economic conditions mainly consist of the
inflation-deflation conditions, exchange rates, interest rates, employment rates,
investments etc. These economic factors have majorly affected the economy of UK
during COVID-19 pandemic and have also affected the overall performance of the
organisation. The major economic challenges were the increase in unemployment rates
across the UK, inflation and rising prices etc. that have affected the activities of Honest
Burgers. This has reduced the overall profitability of the organisation as well as the
ability of the organisation to maintain a minimum amount of profits within the market for
sustaining the business (Kaswan and Rathi, 2019). Various economic factors such as
inflation, rising unemployment, reduction in investments etc. have significantly lowered
down the activities of the organisation. Due to the COVID-19 pandemic the profitability
of the organisation has also declined due to the lower purchasing power of customers.
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Figure 3(The economic effects of coronavirus in the UK)
 Social factors: The social external factors are related to the culture and demographic
trends of the community and people. It consists of the beliefs, ethics, traditions, values,
cultural aspects, demographics, population distribution, lifestyle etc. that affects the
overall business activities. The Honest Burgers has witnessed the business losses in
profits due to the changes in the social habits of the customers, lifestyle preference and
their purchasing power. The customers deprived themselves from eating outside and
preferred the consumption of homemade things (Kaswan and Rathi, 2020).. Due to the
changing social behaviour of the customers and declining purchasing power due to the
increasing unemployment rates has been among the most crucial challenges that have
affected the availability of customers for the company. Honest Burgers have lost their
ability to attract customers and gain profits from them, which also reduced the market
share of the company and declined its competitiveness.
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Figure 4(Percentage Change in life-for-like sales of pub, bar and restaurants groups prior to the
COVID – 19 lock-down in Great Britain in March 2020)
 Technology factors: During the COVID-19 pandemic the companies across the world
have witnessed a rapid technology shift in their business activities. The technological
factors are mainly connected to the innovations, changing technology, digital
transformation, use of the internet and many other technical aspects. Technological
factors are among the latest trends that have affected the activities of Honest Burgers
during the COVID-19 pandemic. The occurrence of digital platforms for marketing,
digital businesses, online shopping and online delivery systems have majorly affected the
activities of organisations. Due to the high frequency of technology changes the
organisation has witnessed lowering down of efficiency and performance within the
market.
 Legal factors: It mainly refers to those compulsory laws and regulations that must be
adhered to by an organisation religiously in order to abide by the basic principles for
smooth flow of its activities. It mainly consists of the regulations, licensing, employment
laws, intellectual property rights, copyright etc. that must be fulfilled by the organisation
(Madhani, 2021). During the COVID-19 pandemic the organisation has faced various
challenges in motivating their employees to work within the organisation and provide
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safe working conditions to them. Honest Burgers also faced the challenges of maintaining
social distancing, safe working conditions, mask-on rules, hygiene conditions etc. due to
the outbreak of COVID-19 pandemic. It has reduced the productivity of the organisation
and has lowered the performance of the company in comparison to its performance before
pandemic.
Figure 5(What impact do you think COVID 19 have on your business in the following areas)
 Environment factor: It refers to the ecological balance and good health of the
atmospheric conditions for supporting fit life of organisms at that place. It mainly
includes the climatic conditions, weather patterns, temperature, pollution, climate change
etc. that affects the activities of business in that area. Due to the COVID-19 pandemic the
environmental factors have grown positively and have also encouraged the organisation
to work towards the sustainable growth and betterment of environment health
(Mastronardi and et. al., 2020).. It has become the moral obligation of the organisation to
avoid meat processing and non-veg food production in their hotels that was the major
cause of pandemic outbreak. The company has to focus over the changing customer
demands from non-vegetarian products to the vegetarian products for enhancing customer
experience and overall profitability of the business.
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Figure 6(Restaurant Industry Collapses Due to Widespread Shutdowns)
Solutions for tackling the challenges and issues
It is very important for a business to develop effective strategies that can be helpful to
solve various problems, issues and critical challenges. This ensures the higher profitability of the
business by increasing its overall performance and optimisation of business activities. Honest
burgers should develop and analyse various solutions to help the organisation overcome critical
issues and challenges within the external business environment. SWOT analysis is a strategic
tool that is helpful in identifying the internal strength and weaknesses as well as the external
opportunities and threats for the organisation that are prevailing in the market (Moya and et. al.,
2018).. For developing various solutions the company can adopt SWOT analysis for identifying
critical strengths and opportunities for the business to grow and various challenges and
weaknesses that should be overcome for increasing its effectiveness and efficiency. With the
help of SWOT analysis, Honest Burgers will be able to develop suitable solutions by
understanding their internal strength, weaknesses, and external threats and opportunities in the
market. Given below is the SWOT analysis of Honest Burgers.
SWOT Analysis
Strengths Weaknesses
 Honest Burgers have a solid reputation  Honest Burgers provide high quality
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in the market and is well known for its
optimum products and services that it
provides to its customers.
 The business has high values and
consists of very high loyalty of its
customers and has various engagement
tools such as social media for engaging
their customers in an effective and
efficient manner.
products at very reasonable prices and
it is very difficult for the organisation
to reduce the prices for their customers
during the COVID-19 pandemic.
 The company does not have effective
engagement tools and technology
advancement to support its growth
during pandemic in the rapidly
developing technology environment
across the markets.
Opportunities Threats
 Honest Burgers have a huge
opportunity to localise its supply chain
during the COVID-19 pandemic that
would support higher profits with low
investment by acquiring better quality
of products at cheaper rates.
 Honest burgers could use social media
and other technology tools for
improving its marketing and publicity
activities for creating brand awareness
and its reach across the larger market
areas.
 The constantly changing market and the
dynamic conditions such as the global
pandemic, climate changes and
customer trends are the major threats
that must be understood and forecasted
by the organisation for developing
solutions to it.
 Changing preference of the customers
and trends towards the healthy and
hygienic food and vegan products after
the occurrence of COVID-19 should be
given preference by Honest Burgers.
From this SWOT analysis many solutions can be derived that can be helpful for the
organisation to overcome previous challenges discussed in the report. Some of the solutions that
can be obtained by Honest Burgers are elaborated below.
 The company can utilise high levels of technology for creating better brand image and
marketing activities for enhancing the attractiveness of the organisation (Narayanamurthy
and Tortorella, 2021).. The company can also utilize a localised supply chain that would
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be helpful to eliminate wasteful activities and extra costs on importing raw materials and
subsidy reproducts from other places. With the help of improving the supply chain and
localising it Honest Burgers will be able to create sustainable performance of the
organisation and derive high level of profits. Moreover, the company can promote its
brand in a positive manner for attracting its customers. This will allow the organisation to
cover larger market area and increase profitability across the market.
 The company can utilize the latest technology for improving their marketing and
promotional activities for attracting new prospects and retain the loyalty of the existing
customers. With the help of technology the company can take its business to the online
platforms and improve the overall sales and profits. With the use of big-data and cloud
computing the company can easily understand the changing market trends and
personalise the products and services according to the requirements of the customers.
Implementation of these solutions in the organisation
It is crucial for Honest Burgers to implement the solutions in a well-structured manner for
ensuring that maximum amount of effectiveness and efficiency can be obtained for creating
optimum performance. With the help of proper implementation of these solutions and systematic
utilisation of the solutions the business can gain better profitability and growth for recovering
from the COVID-19 pandemic impacts. Honest Burgers can utilise these solutions strategically
for achieving the goals and objectives of the company (Sharma and et. al., 2021).. The
implementation of these solutions within the business is given below.
 Honest burgers can implement strict COVID-19 pandemic protocols for enhancing
customer experience and safe and secure environment for the employees as well as the
customers. This organisation will be able to develop a high level of customer loyalty and
improve the image and reputation of the organisation. Abiding by the laws of the
government and following the customer demand will also help their organisation to
improve and insure better health of the customers by providing quality products and
services (Sheng and et. al., 2021).. The company could also implement temperature
check, sanitization facility, and social distancing so that the outbreak of virus can be
controlled. The organisation can also improve its activities by implementing latest
technology like virtual payment systems, online booking, digital customer support
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services, on the phone room services etc. for maintaining safety and security of the
customers.
 The management of the organisation can implement various other technologies and tools
two enhance performance and productivity for motivating the employees and improving
the customer services. It could help the organisations to attract customers in more
positive manners and generate a high level of profits for the organisation (Yadav and et.
al., 2021). The company can implement strategic supply chain and localised supply chain
for lowering down their production cost in generating high levels of margins over their
products and services.
 Honest Burgers can focus on utilising the digital technology for innocent business
activities across the internet and through virtual means. By this the company will be able
to create online booking options, virtual payment, home delivery of food, pre-ordering
meals, better customer support etc. that would enhance the organisational performance.
This will allow the organisation to minimise redundancies for attaining better growth
opportunities for the organisation by improving customer services. The use of latest
technology could also enhance the marketing activities of the organisation for improving
the brand image and achieving the objectives and goals of the organisation effectively
and efficiently.
CONCLUSION
It has been concluded from the above report that the hospitality industry has witnessed many
ups and downs during the COVID-19 pandemic situation across the UK. It has been obtained
that the occurrence of COVID-19 pandemic has led to devastating effects and has brought
various issues and challenges for the organisations in the hotel industry. It has affected the
overall performance and productivity of the organisation by reducing the number of customers,
change in technology, changing external environment conditions within the market. Moreover, it
has been discussed that the hospitality industry has witnessed various issues such as lowering
down of sales and profits, reduction in the number of customers, declining growth rate, lock-
downs etc. that have stubbed the hospitality businesses to death. Furthermore, it has been
identifying various challenges with the help of PESTLE analysis that describe the external
12

market conditions that have affected the hotel business activities in the external market. In this
context, it has been explained that the political, social, legal, ecological, technical and economic
conditions have changed during the pandemic condition which created many challenges for the
organisation. Along with this, it has also provided various solutions for improving the
organisational performance with the help of SWOT analysis to examine the strength and
weaknesses of the organisation along with the opportunities and threats. Finally, this report has
analysed suitable strategies for improving the organisation performance for achieving goals and
objectives effectively and efficiently.
RECOMMENDATIONS
The main focus of the hospitality industry is towards their customers, which derives their
intensity and professionalism for providing genuine customer services for enhancing their
experience. Honest burgers rely upon their customers for maintaining effective and efficient
hospitality business performance and achieving greater profits. For increasing effectiveness and
efficiency in their food products and services, it is recommended to Honest Burgers that they
should utilize cost efficient processes by adopting a top down approach for enhancing their
employee performance by giving examples and encouraging them to perform like skilled
employees within the organisation.
Six Sigma strategies refer to a framework that uses tools and terminologies for
identifying the reasons for deviations of the performance and process within the organisation.
Honest Burgers could use Six Sigma strategy for gaining a high level of competitiveness,
performance and increasing the profits of their business. The company can use this strategy to
reduce and eliminate the deviations in their processes for getting strategic success for the
organisation. Honest burgers could use the strategy for getting ahead of their competition by
improving the overall productivity and profits of the organisation.
Honest Burgers is recommended to use this strategy for improving their customer loyalty
by eliminating the deviations and the performance gaps within the processes of the organisation
for deriving higher levels of customer satisfaction. The company can utilize the latest technology
and digital platforms for improving their overall performance and services to the customers for
bringing high levels of quality products to them. By using the latest technology the company can
easily attract more customers and employees to bring optimum results within the organisation.
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With the use of the latest technology the efforts of the organisation towards the understanding of
trends in the market can be improved.
With the help and adoption of this strategy the company can also enhance their marketing,
sales and promotion activities of the organisation. It will help to gain larger market coverage by
investing fewer amounts of finance and working together for improving the overall performance
of the organisation. The company can also use this strategy for using resources and creating a
skilled and talented workforce to use resources in optimum manners without wasting them. This
has to eliminate error and reduce the wastage of the products and services.
14

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