Critical Evaluation of Strategy and Operations in Leon's Restaurant

This report critically evaluates the strategy and operations of Leon's Restaurant, a UK based chain of fast food restaurants, in order to explore issues and potential vulnerabilities. It also assesses the industry environment and identifies emerging trends and opportunities.

Managing strategy,
Operations and
partnerships

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically evaluates the environment of the industry in which Leon operates.................................3
Critical evaluation of the strategy of Leon’s Restaurant.................................................................5
Critical evaluation of the operation of Leon’s Restaurant...............................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................12

INTRODUCTION
Business enterprises develops several strategies in order to manage their operational
activities effectively at workplace so that they can obtain their organisational objectives. In this,
strategies are basically developed by the company on the basis of their core vision as well as
industry that supports in dealing with the situation in effective manner (Uhl and Gollenia, 2016).
The current project is based on Leon's Restaurant, a UK based chain of fast food restaurants.
This restaurant was incorporated in the year 2004 by John Vincent, Allegra McEvedy and Henry
Dimbleby. It basically offers food for health conscious people. This report will critically evaluate
external environment of UK as well as fast food industry in order to explore issues for the
company. It will later develop strategy and operations of company towards its goals. At next, it
will explore emerging issues within the industry that could also influence name of company. In
the last section, different areas of potential vulnerability facing Leon Restaurants will going to be
identified.
Critically evaluates the environment of the industry in which Leon operates
Restaurant sector is regarded to one of the most evolving industries across the globe
owing to the changes that keep on taking place within the confines of its environment. Effective
scanning and examination of external factors provides aid to the concern industry to devise
strong corporate strategies and plans through which it can reach to the top (Moxen and Strachan,
2017).
PESTLE
In this regard, the findings of PESTLE analysis of restaurant sector of UK is presented as
follows:-
Political: Political environment of United Kingdom is stable which supports the growth
of restaurant sector. Thus, it presents opportunity for company operating within the respective
nation to take advantage of the stability of politics to attain growth and development in near
future.
Economical: In relation to economic aspect, it can be analysed that BREXIT is one of
the factors that needs to be taken into consideration by restaurant sector in order to avoid getting
influenced by its negative outcomes. However, the strong and developed state of UK also create

opportunity for the concerned industry to obtain advantage of excellent infrastructural,
transportation, communication facilities.
Social: The changes taking place within social lifestyles and trends in UK tend to
generate a chance for restaurant sector to accommodate diverse types of cuisines and varieties of
meals to appeal to a large base of audience.
Technology: UK being a technologically advanced nation presents opportunity to
restaurant sector to make use of latest and emerging techniques for food production, safety and
preservation.
Emerging mega trends and identify those that apply to the restaurant trade
The passing time is bringing numerous of trends within restaurant industry. This trends
raises due to influence of macro environmental factor over the industry. Some of main trends
which are taking place at marketplace and can also be applied to restaurant trades are described
as below in effective manner:
 The latest emerging trend of this industry which is developed from social factor is the
usage of social media tool for promoting restaurants services through this medium. Along
with this, it is also becoming the part of trend that restaurants should offer online order
facility to its customers at maximum possible locations.
 Thermal food preservation, is also seen as the emerging trend in which restaurants
makes use of technological support for storing their food within the restaurant for longer
period of time.
Strengths of Porter's five force
From the findings developed from industrial analysis done through Porters five forces
framework, it has been analysed that main strength is Bargaining power of supplier and Threat of
new entrants. Influences of both of these forces is low for fast food industry which clearly states
that it will not hamper actual performance of restaurants belonging to this sector. This ultimately
raises higher opportunities for them with in the respective industry.
Summarise the industry environment
As per the overall analysis made in this section, it has been analysed that usage of
technological tools in restaurants will make this industry successful as it supports them in
executing their operational work in smoother manner. Along with this, it can be said that this
industry could also change in the near future because with the passing time taste and preferences

of customers do changes. This might also influence them to get attracted towards other changes
which are taking place within the industry. It can be said that if any new technology will be
launched in near future then it will definitely replace thermal food preservation.
Critical evaluation of the strategy of Leon’s Restaurant.
The main purpose of this report is to explore and several strategies that could be opted by
them for enhancing their operational activities of company at marketplace (Ayers and Odegaard,
2017). However, in regard of Leon's Restaurant, there are various component which has been
identified for obtaining profit maximisation are as follows:
Resources
Resources are considered as most important element for an organisation as it helps them
to accomplish their desired goal or objective in a better manner. However, in relation to Leon's
Restaurant, the primal resources which they require is that highly skilled resources and
innovative technologies in order to gain competitive advantage. Therefore, for attaining the
same, Leon's Restaurant's make use of different recruitment tactics or techniques which help
them to obtain talented and capable manpower who put their best contribution by sharing novel
ideas or views in regard of attaining sustainable profitability and productivity ratio among
competitors. Moreover, with the adoption of technologies, it leads them to acquire competitive
position in existing marketplace.
Capabilities
The aspect of capability is termed as the ability or capability of an establishment to
manage, handle, control the available resources with an intent of gaining competitive advantage
among competitors in a stipulated period of time in an improved manner. In relation to Leon
Restaurant's they are highly dedicated to serve its customer in a better way as it always makes an
effort to grab all available resources which lead them to improve its overall productivity of firm
(Clott and Hartman, 2016). Moreover, the another capability which make Leon's Restaurants an
outstanding performance is that they are very flexible and adaptive which empower them to
implies appropriate modification or alteration within its business function like introducing online
application, adapting advanced technology as per marketing trend or demand. Due to such
initiation, Leon's Restaurant is able to capture the wide range of population towards the brand
and also to provide high level of satisfaction to its targeted market.
VRIN

The model is mainly concern with determining the internal capability of an organisation
for attaining sustainable growth and profitability in an improved way. The VRIN analysis of
Leon's Restaurant are as follows:
Resources Value Rare Imitable Non-
Substitutable
Impact of
competitive
advantage
Human
Resource
Yes Yes Yes Yes Sustainable
competitive
advantage
Technology Yes No No Yes Realized
competitive
parity
Research and
development
Yes Yes No Yes Realised
temporary
competitive
advantage
Global
Presence
Yes No No Yes Identified
competitive
parity
Evaluate sustainable resources and capabilities
with the industry
From the above mentioned VRIN analysis of Leon's Restaurant, it has been identified
that company has effective human resource which is rare in nature that help them to place their
brand in a competitive and aggressive position. Moreover, the technology which they imply are
highly valued and non-substitutable in industry which assist firm to attain sustainable
profitability and productivity in an innovative manner (Iossa and Martimort, 2015). In addition to
this, it's research and development are rare, value which aid company to make use of all available
resources in order to acquire best position within competing marketplace. However, it serves

their product or services across the glove in a best and high quality that improves its overall
profit margin as well as assist them to attain sustainable growth and development.
Critical evaluation of the operation of Leon’s Restaurant.
Operations of Leon Restaurant
With the help of primary resources of Leon Restaurant, it can be said that technological
and human resources are the two main resources that are supportive for the company in
executing their operational activities within the company in appropriate manner. The core
operational activities of Leon's restaurant are described as below:
 Providing high quality of food: The main operation executed by Leon Restaurant is
providing higher quality food products for its customers. Here, Kitchen staff mainly
prepares food as per the demand of guest (De Harlez and Malagueno, 2016). They also
ensure to maintain quality of food for providing better experience to customers.
 Customer services: The another operational activity in which Leon Restaurant is deeply
indulged is customer services. Here, the customer care executive of this restaurant make
use advance technology in order to communicate with each and every guest in effective
manner. In this, manager of the company focuses on providing effective services to
customers for sustaining them loyal with the restaurant for longer period of times.
Refer briefly to the vision of Leon Restaurant.
Vision of Leon Restaurant: “To become leading healthy and natural fast food company
worldwide which offers healthy fast food to its customers”
The restaurant only wishes to make it easier for its customers to eat healthy fast food that
is good and tasty too. The menu of this company includes variety of flavours that is also
supportive in attracting customers in appropriate manner. It also makes it easier for its customers
to eat their favourite fast food across the world.
Critically assess the extent to which the operation supports the delivery of the vision
On the basis of in depth analysis, it can be said that main operational activities of Leon
restaurant are Providing high quality of food and Customer services (Slack and Brandon-Jones,
2018). Effective implementation of these operations helps them in accomplishing their vision
that is becoming leader of fast food industry. It can be said that management team of Leon
restaurant ensures that their staff puts higher efforts to provide healthy fast food to customers
along with inclusion of numerous of innovations it. This is supportive in delivering quality

services to customers which will ultimately result in accomplishment of vision of Leon
restaurant.
Evaluate the extent to which the operation is sustainable
Operational activities of this restaurant is sustainable as they mainly rely upon human
resources. This also means that management of this restaurant effectively make use of employees
and also ensures that they deliver quality services to each and every customer (Liu, Zhu and
Seuring, 2017). This enables the staff in executing their operations in appropriate manner. As a
result, it can be said that maximum of its operations are reliable and supports restaurant in its
growth.
CONCLUSION
From the above mentioned discussion it has been analysed that fast food industry is
highly competitive in nature. In order to succeed in this business, it is essential for private
managers of this sector to analyse external market as well as industry in effective manner so that
they can easily identify major threat which could affect their performance in the near future.
Along with this, usage of Porter's five force analysis has supported in identifying that majority of
risk that might be faced by this industry is related to rivalry among the industry and higher
bargaining power of buyer. This could affect organisational performance in negative manner.
Furthermore, adoption of VRIN framework have supported in identifying main capabilities and
resources of company. From this it has been identified that technology and human resources are
main resources in fast food industry which helps them in sustaining longer within the industry.

REFERENCES
Books and Journals
Mathooko, F. M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
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Zhao, Z. Y. and et. al., 2016. Competitiveness assessment of the biomass power generation
industry in China: A five forces model study. Renewable Energy, 89, pp.144-153.
Uhl, A. and Gollenia, L. A. eds., 2016. A handbook of business transformation management
methodology. Routledge.
Moxen, J. and Strachan, P., 2017. Managing green teams: environmental change in
organisations and networks. Routledge.
Ayers, J. B. and Odegaard, M. A., 2017. Retail supply chain management. CRC Press.
Clott, C. and Hartman, B. C., 2016. Supply chain integration, landside operations and port
accessibility in metropolitan Chicago. Journal of Transport Geography, 51, pp.130-139.
Iossa, E. and Martimort, D., 2015. The simple microeconomics of public‐private
partnerships. Journal of Public Economic Theory, 17(1), pp.4-48.
De Harlez, Y. and Malagueno, R., 2016. Examining the joint effects of strategic priorities, use of
management control systems, and personal background on hospital
performance. Management Accounting Research, 30, pp.2-17.
Peachey, J. W., Cohen, A., Shin, N. and Fusaro, B., 2018. Challenges and strategies of building
and sustaining inter-organizational partnerships in sport for development and
peace. Sport management review, 21(2), pp.160-175.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Liu, Y., Zhu, Q. and Seuring, S., 2017. Linking capabilities to green operations strategies: The
moderating role of corporate environmental proactivity. International Journal of
Production Economics, 187, pp.182-195.
Jones, G. J., and et. al., 2017. Collaborative advantages: The role of interorganizational
partnerships for youth sport nonprofit organizations. Journal of Sport
Management, 31(2), pp.148-160.
Spring, M., and McCaffrey, P., 2017. Creating the competitive edge: A new relationship between
operations management and industrial policy. Journal of Operations Management, 49,
pp.6-19.
Online
The UK is becoming more corrupt and our democracy is at stake. 2019. [Online]. Available
Through:<https://metro.co.uk/2019/02/01/the-uk-is-becoming-more-corrupt-and-our-
democracy-is-at-stake-8418561/>.
Office for National Statistics. Unemployment. 2019. [Online]. Available Through:
<ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment>.
THE LATEST UK SOCIAL MEDIA STATISTICS FOR 2019. 2019. [Online]. Available Through:
<https://www.avocadosocial.com/latest-social-media-statistics-and-demographics-for-
the-uk-in-2019/>.
Seven things you did not know about migration in the UK. 2019. [Online]. Available Through:
<https://www.telegraph.co.uk/news/uknews/immigration/11942613/Seven-things-you-
did-not-know-about-migration-in-the-UK.html>.

Overview of food preservation technologies. 2019. [Online]. Available Through:
<https://www.newfoodmagazine.com/article/4414/overview-of-food-preservation-
technologies/>.
Porter’s Five Factor Model in Hospitality (Restaurants). 2019. [Online]. Available Through:
<https://ivypanda.com/essays/porters-five-factor-model-in-hospitality-restaurants/>.

Appendix
PESTEL Analysis
Factors Citations
Political: This encompasses aspects such as national stability,
alterations in policies, corruption, trade policy, bureaucracy etc.
The restaurant sector is benefited by the stable political
environment of United Kingdom. Further, occurrence of political
turbulence may tend to cause adversities for the concerned industry
and affect the operations of companies operating within its
confines. The level of corruption persisting within UK can be
acknowledged on the basis of the fact that it is Number 11 on the
list of “Most corrupt nations within the world” (The UK is
becoming more corrupt and our democracy is at stake, 2019). This
may also have a significant influence upon the functioning of
restaurant industry and compel it to fall for its trap.
The UK is becoming more
corrupt and our
democracy is at stake.
2019. [Online]. Available
Through:<https://metro.co.
uk/2019/02/01/the-uk-is-
becoming-more-corrupt-
and-our-democracy-is-at-
stake-8418561/>.
Economical: This element of PESTEL analysis includes aspects
such as employment rate, interest rate, saving rate, inflation related
to an economy. The strong economic conditions of UK facilitate
the development of restaurant sector by changing its overall face.
This takes place as a result of entailment of communication,
infrastructural, transportation and other facilities of UK. On the
other hand, BREXIT tends to worsen the conditions for restaurants
by enhancing the inflation rate. Further, the unemployment rate of
UK accounts for approximately 3.9% which implies that
corporations operating within the concerned sector would have to
hire labour by providing them high wages (Office for National
Statistics. Unemployment, 2019).
Office for National
Statistics. Unemployment.
2019. [Online]. Available
Through:
<ons.gov.uk/employmenta
ndlabourmarket/peoplenoti
nwork/unemployment>.
Social: This aspect includes elements such as consumer lifestyles,
trends and values of a nation. In this regard, one of the emerging
THE LATEST UK SOCIAL
MEDIA STATISTICS FOR
2019. 2019. [Online].

trends within UK is acknowledged to be social media marketing.
Around 45 million individuals within the respective nation are
making use of social media on desktop or mobile. Out of these, 39
million are mobile social media users (THE LATEST UK SOCIAL
MEDIA STATISTICS FOR 2019, 2019). This tends to generate
opportunity for restaurant sector to conduct marketing by way of
using it as an extensive medium. Further, the extent of migration
within UK has been ascertained on the basis of current figures
which imply 3.5% of total population moving each year (Seven
things you did not know about migration in the UK, 2019). This
trend needs to be taken into account by companies prevailing
within restaurant sector in order to make sure that the marketing
strategy is effective enough to appeal to the diverse population of
United Kingdom.
Available Through:
<https://www.avocadosoci
al.com/latest-social-media-
statistics-and-
demographics-for-the-uk-
in-2019/>.
Seven things you did not
know about migration in
the UK. 2019. [Online].
Available Through:
<https://www.telegraph.co
.uk/news/uknews/immigrat
ion/11942613/Seven-
things-you-did-not-know-
about-migration-in-the-
UK.html>.
Technological: The efflux of time leads to emergence of a number
of trends and advancements within the scope of technology. In this
relation, United Kingdom is acknowledged to be a country which is
technologically advanced and thus, presents opportunities for
restaurant industry to take advantage of such trends. In this regard,
many companies operating within this sector are making use of
technologies for food storage and production such as Thermal Food
preservation, antimicrobial preservation systems etc. (Overview of
food preservation technologies, 2019). This provides them an edge
to preserve the edible contents for a relatively longer period of
time. Through the exploitation of such technological trends, the
concerned sector can gain competitive edge and boost its overall
efficiency at UK market place.
Overview of food
preservation technologies.
2019. [Online]. Available
Through:
<https://www.newfoodma
gazine.com/article/4414/ov
erview-of-food-
preservation-
technologies/>.

Porter's five Forces Citations
Bargaining power of supplier (Low): Influence of this
force is lower for restaurant as the leading companies have strong
contacts with numerous suppliers. Thus, if any of the suppliers did
not get agrees to the provided quotation, then restaurants have
various other options in terms of suppliers who will supply them
raw materials within the provided time frame (Mathooko and
Ogutu, 2015). As a result, operational activity of this company will
not get hampered. This also support them in delivering right
products to customer in rightful manner.
Porter’s Five Factor Model
in Hospitality
(Restaurants). 2019.
[Online]. Available
Through:
<https://ivypanda.com/essa
ys/porters-five-factor-
model-in-hospitality-
restaurants/>.
Bargaining power of buyer (High): There are numerous of fast
food restaurants within UK which offers similar kind of food items
at somewhat similar prices. This clearly depicts that here
bargaining power of buyer is high which means that if restaurant
does not provide quality and taste worthy food items then its
customers could move to another restaurant. This shows higher
influence of this force on restaurant businesses within this industry.
This situation can be effectively managed by providing better
quality fast food items to buyers for sustaining them longer.
Porter’s Five Factor Model
in Hospitality
(Restaurants). 2019.
[Online]. Available
Through:
<https://ivypanda.com/essa
ys/porters-five-factor-
model-in-hospitality-
restaurants/>.
Rivalry among industry (High): The fast food chain restaurants
within this industry is consist of various market leaders such as
B.GOOD, BYRON, Five Guys, FFG, Hache Burger Social, Honest
etc. All of these restaurants are offering almost similar kind of food
items at similar prices. Here, it is advisable to this industry to go
for collaboration instead of fighting with one another for same
market share (Zhao and et. al., 2016). This collaboration will allow
fast food chain restaurants in enhancing their overall market share
with each other’s supports in a whole.
Porter’s Five Factor Model
in Hospitality
(Restaurants). 2019.
[Online]. Available
Through:
<https://ivypanda.com/essa
ys/porters-five-factor-
model-in-hospitality-
restaurants/>.
Threat of new entrants (low): Influence of this force over fast
food industry seems to look moderate as some elements of this
Porter’s Five Factor Model
in Hospitality

force are positive for restaurants and others are negative. In present
context, it can be said that for a business organisation, which is
working within fast food industry it has become difficult for new
entrants to enter into this sector with higher capital investment.
(Restaurants). 2019.
[Online]. Available
Through:
<https://ivypanda.com/essa
ys/porters-five-factor-
model-in-hospitality-
restaurants/>.
Threat of substitutes (high): Threat of substitute is higher for the
restaurants in respective industry. This is because, rivalry
companies are taking several initiatives for bringing innovations in
this sector so that they can easily influence interest of customers
towards them. This simply depicts that influence of this force is
higher for fast food sector. In order to overcome its influence, it is
essential for restaurants dealing this sector to emphasise on
enhancing their number of food items among their menu so that
they can influence customers towards them for longer period of
time. In addition to this, they are also supposed to offer these
products at affordable prices with best taste so that they can be
retained towards it for longer period of time.
Porter’s Five Factor Model
in Hospitality
(Restaurants). 2019.
[Online]. Available
Through:
<https://ivypanda.com/essa
ys/porters-five-factor-
model-in-hospitality-
restaurants/>.