Performance Analysis of Freshcut Fries Restaurant: SBE Report

This report provides a comprehensive analysis of Freshcut Fries, a small business enterprise (SBE) operating in the fast-food industry. It begins with an introduction to SBEs and their significance, followed by a detailed company profile of Freshcut Fries, including its location, offerings, and initial investment. The report outlines the restaurant's SMART objectives, focusing on improving delivery services, enhancing food and service quality, and increasing daily sales. It then examines the competitive landscape, highlighting the challenges posed by larger fast-food chains. A SWOT analysis identifies the restaurant's strengths, such as efficient food preparation and loyal staff, and weaknesses, including high-calorie food options and limited marketing efforts. Key performance indicators are also presented. The analysis continues with a discussion of performance measurement, comparing Freshcut Fries to its competitors. Strategies to overcome weaknesses, such as incorporating healthier options and implementing marketing initiatives, are proposed. The report explores ways to strengthen and maintain existing performance, emphasizing the importance of adapting to food trends and recognizing staff contributions. It also identifies potential areas for business expansion, such as home delivery services and online ordering. The existing business objectives and plans are assessed, and a revised business plan incorporating proposed changes is presented, along with an action plan for implementation. The impact of the proposed changes on the business and its personnel is considered, and strategies for managing and monitoring improvements in performance are outlined. The report concludes with a summary of the key findings and recommendations.

Running Head: SMALL BUSINESS ENTERPRISE
Small Business Enterprise
Name
Institution

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Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Company Profile........................................................................................................................4
SMART Objectives of the restaurant..............................................................................................4
Context and competition in which the restaurant operates..............................................................6
Strengths and Weaknesses and key performance indicators...........................................................6
1.2 Analysis of SBE using comparative measures of performance.................................................7
Task 2...............................................................................................................................................8
2.1 Actions to overcome weaknesses..............................................................................................8
2.2 Strengthening and maintaining existing performance of Freshcut Fries Restaurant.................8
2.3 Areas in which Freshcut Fries Restaurant could be expanded..................................................9
Task 3.............................................................................................................................................10
3.1 Assessment of existing business objectives and plans of the Freshcut Fries..........................10
3.2 Revised business plan to incorporate appropriate changes......................................................11
3.3 Action Plan to implement Changes.........................................................................................12
Task 4.............................................................................................................................................14
4.1 Impact of the Proposed Changes on the Business and Its Personnel.......................................14
4.2 Managing Proposed changes...................................................................................................14
4.3 monitoring improvements in performance of the business......................................................15
References......................................................................................................................................17

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Small Business Enterprise
Introduction
Small business enterprises have been known to plan quite an essential role in the growth of the
nation’s economy. Therefore it is essential to understand the concept of the small business
enterprises calling for the need to support and understand these businesses. Small business
enterprises have been known to dominate the UK and accounted for about 95 percent of the
overall businesses in the UK in 2008. These small businesses contribute greatly to the UK
economy, giving opportunities for the locals to utilize their skills in growth of the economy. The
UK section 382 and 465 of the Companies Act of 2006 explains the small business enterprises
for the function of the accounting requirements. The Act states that any company in the UK with
turnover of not more than 6.5 million pounds and 50 less employees can be considered as a small
business enterprise. Despite the fact that the small business enterprises require low capital
investments, they have proved to be of great significance to both the entrepreneurs and the
country at large. Apart from giving opportunities to those who pursue their careers as
entrepreneurs, they have increased the country’s revenues. The Small Business Enterprises are
usually less risky compared to the medium and large business enterprises (Bates, 2005).
The purpose of this study is to analyze the processes involved in improving the performance of
the small business enterprises. This study will review a fast food restaurant by identifying its
objectives, strengths and weaknesses and finding ways to resolve the weaknesses.

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Task 1
1.1 Company Profile
Freshcut fries is a locally owned fast food restaurant that provides a combination of excellent
foods at value pricing and serene atmosphere and fun packaging. Freshcut fries Restaurant is
located in Stratford at Westfield shopping center and was opened in January 2011. Freshcut fries
has gradually become famous for its daily necessities for the increasing demand of snack-type
fast foods, and a place to relax, meet with friends or read a book, all under one roof.
The owner of this fast food restaurant is Mr. Wilson, a sole proprietor of the business. The shop
operates in a 1500 square foot shop in Westfield Shopping Center. The restaurant’s start up funds
was about £ 26000. The restaurant has 6 part time employee workers and mainly sells fast foods
snacks and drinks such as fries, pizza, ice-cream, burgers, juices and breakfast.
SMART Objectives of the restaurant
The Freshcut fries restaurant aims to improve their delivery services by reducing the time
that the customers get to wait for the delivery of their orders. The progress of this particular
objective will be measured through the time quotes and customer call backs that would be
efficient in checking the satisfaction levels (Jay, 2014). This objective will be achieved by
assigning an employee to put the deliveries under the counter’s server number and so when the
food is ready, an employee delivers it to the table at the shortest time possible. This concept can
be seen to be realistic due to the fact that through the reduction of the wait time more customers
would visit the restaurant leading to the increase in customer traffic to the restaurant. This
process has been set to begin immediately and training of staff to take and deliver orders quickly

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would take two weeks. It will further take two months for the restaurant to get customer response
and feedback including revelation of sizeable difference.
Another SMART objective of the Freshcut Fries restaurant comprises of improving
services by giving the customers some quality foods which they already know exists in the
restaurant while at the same time giving them quality services that would keep them coming
back (Charantimath, 2006). This objective will be measurable by providing comments cards to
the customers, where they would write their feedback regarding the food quality and restaurant
services. This objective would be achievable through setting of standards and ensuring that the
restaurant is able to achieve them. The restaurant the restaurant will be able to quote some
realistic time in which the objectives will be achieved. This objective needs to be started as soon
as possible and is projected to take three weeks to complete.
The final SMART objective of the Freshcut Fries Restaurant would be to improve the
daily sales to about £4000 per day within the next four months. This objective is measurable
through the actual outcome of the sales amounts for the restaurant daily. This goal is achievable
by proposing to the owner about doing more marketing such as offering discounts to return
customers and other offers. £4000 per day is a realistic achievement for the restaurant as the
records show that the restaurant used to achieve such amounts shortly after its opening. With few
highlighted changes, the restaurant is capable of achieving this amount of money. This objective
aims to be implemented as soon as the owner of the restaurant approves it and its results would
be measurable within three months of implementation.

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Context and competition in which the restaurant operates
The fast foods restaurant industry has been rapidly growing and bigger franchises such as
McDonalds, Burger King, KFC and Pizza Hut have more than doubled in the past few years.
This has caused the Freshcut Fries restaurant to lose most of its market share to these businesses.
The owner of the Freshcut Fries wishes to reposition the business of the restaurant, in order to
achieve some sustainable growth in the future while at the same time increase its profits. Due to
lack of advertising the Freshcut Fries’ market has gradually been replaced by other fast food
restaurant hence the need of coming up with various objectives to enable it return to the top of
the market .
Strengths and Weaknesses and key performance indicators
The strengths of the Freshcut fries comprise of the fact that it has some efficient styles of food
preparations where they make use of high quality products which enhances the taste and quality
of foods sold in the restaurant. Furthermore the restaurant has loyal, staff that makes sure that the
customers are satisfied and keep coming back (Anton & Petouhoff, 2002).
One of the weaknesses faced by the Freshcut Fries restaurant is the issue of selling high calorie
foods. Most fast foods restaurants are usually faced with this issue as the foods sold in fast food
restaurants are usually high in fat and calories, a fact that health conscious people see as
unhealthy. Furthermore Freshcut Fries has not been marketing the restaurant as compared to
their competitors who keep coming up with numerous marketing strategies.
The key performance indicators for Freshcut Fries Restaurant are as follows:
The restaurant has very equipped machines that are able to cater for all the customers’ needs and
requirements. Furthermore these machines are usually operated by well experienced staff that are

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able to meet all the highest possible standards. The restaurant has also been making use of all the
modern technologies in coming up with perfect tasting snacks and ice creams. Since this
restaurant mostly focuses on young people, most of the products offered are usually youth
oriented brands.
1.2 Analysis of SBE using comparative measures of performance
Performance measurement is an essential tool in considering the status of a particular business.
The performance measurement is usually a simple evaluation with the competitors in regard to
such things as the performance of staff, sales volumes or customer services.
Freshcut Fries Restaurant is a business that has been facing some continuous competition from
its existing competitors including new entrants in the fast food market. The competitors of the
Freshcut fries have been making reductions in costs of most of their products. Furthermore since
opening of new fast food restaurants do not require too much capital there has been a too open
wide opportunity for new market entrants increasing competition for the Freshcut Fries
Restaurant. Also the fact that the number of local and international franchises that operate on the
fast foods sector has been increasing, the bargaining power of customers has also been
increasing. However, the staff of Freshcut Fries has been trying to overcome the bargaining
power of customers by serving extra servings and in large portions.

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Task 2
2.1 Actions to overcome weaknesses
The issue of selling high calorie foods can be overcome by incorporating some healthier choices
such as fresh vegetable salads, fresh fruit juices and several other healthier options. This way, the
health conscious people can also visit the restaurant hence increasing the number of customers in
the restaurant.
The restaurant should also make use of numerous marketing strategies such as distribution of
fliers, offering discounts, lowering of prices, introduction of happy hour and many more
provisions in order to make sure they are known by the population hence increasing their market
share.
2.2 Strengthening and maintaining existing performance of Freshcut Fries Restaurant
The restaurant focuses on its core values around which its business purpose help it to attain great
heights. However the fast food industry continues expanding and so the restaurant needs to
continuously rejuvenate its ideas in order to uphold its performance. Every time a client comes to
the restaurant, they expect up to standard foods and services. This means that the restaurant
needs to keep identified all the current cultural food trends in the market in order to upgrade
themselves based on these trends. These trends have been known to change preferences and taste
of the customers.
The staff performance has also been a great contributor to the success of the restaurant. The
owner ensures that the staffs get their annual leaves and monthly company night outs where the
restaurant pays for them to have fun and get motivated (Parmenter, 2010).

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Also being a small business enterprise the restaurant takes effort in holding its existing customers
as well as increasing the customer list. This is the reason why the restaurant ensures that the
returning customers are recognized by offering them extras. The restaurant also uses some new
platforms to ensure that they reach some new customers in order to extend some new client list.
2.3 Areas in which Freshcut Fries Restaurant could be expanded
There is always a possibility for growth in any kind of business. Business expansion has been
known to bring about new opportunities for growth and development and also for the
entrepreneurs involved in it. Freshcut fries restaurant can survey opportunities beyond selling of
snacks and drinks in the restaurant. Here is a large market for fast food delivery to customer
homes. Freshcut Fries could indulge in such a market in order to gain more customers and
deliver fast foods to customers who are not able to reach their location. The company could also
make use of the modern internet technologies where the customers would be able to order their
meals through the company’s websites and ensure that the said meals are delivered on time.

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Task 3
3.1 Assessment of existing business objectives and plans of the Freshcut Fries
Freshcut Fries has six main objectives that represent its visions. The restaurant’s vision for the
staff is to support the employees in their daily activities to ensure that they become the best in
their activities. The restaurant’s vision of the clients is to sustain an enviable customer list where
the customers’ expectations would be succeeded. The vision of the restaurant’s entrepreneur is to
accomplish some managed growth and be financially stable.
Based on the above mentioned goals, there are a group of internal objectives that tend to map the
restaurant’s main objectives which are usually reviewed annually to ensure that Freshcut Fries
remain the top of the list in the region.
Freshcut Fries main objectives are to move closer to its customers on order to deliver best,
efficient and customized services to them. In order to satisfy its customer base, the restaurant
needs to look into the deepest levels of customer satisfaction by making changes to the menu and
coming up with numerous options.
Business plans: twice a year, the employees of the Freshcut Fries are evaluated for their overall
performance against their SMART objectives. These restaurant objectives are usually set in
January of every year. Every staff’s key competencies are identified together with what is
expected from them. The restaurant’s business plans also comprise of motivational plans. The
motivational plans usually highlight every employee’s strengths and career goals. These plans
are usually used in evaluating the following year’s financial targets in connection with the
employees’ career aspirations.

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The good points in the existing business objectives is the fact that it considers the employees.
The employees are the main drivers to the success of any business. However the bad points of
the plan comprise of not considering changes in the operation of the restaurant in the annual
plan. This is because any business needs to keep up with the changing trends in order to remain
the top of the market. A business should come up with several annual changes in its operations
including its menus. This way, the customers would remain interested in buying food from the
restaurant.
3.2 Revised business plan to incorporate appropriate changes
Business plans are basically used in businesses that may be willing to develop ad change
over time. The business plans are used to know the future prospects of a particular business. One
advantage about a business plan is that it can easily be amended in order to incorporate changes
that may be brought about by market conditions or company situations. Since the business plan
earlier used by Freshcut Fries had some defects, there was a need to amend it in order to
incorporate several changes. In order to incorporate these changes, the restaurant needs to
develop a methodology of conducting market researches. The restaurant must understand all the
ways and means of gathering information including the evaluation of the outcome of the
gathered data. Based on the accomplishment of the result, the methodology can be used to draft a
new business plan. The new business plan for the Freshcut restaurant would include several
SMART objectives and incorporation of changes in the business operation of the restaurant
including change in menus in order to keep up with the ever-changing trends. These changing
trends can be researched through the extensive market research which should be conducted as
often as possible (Kyrö, 2014).

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3.3 Action Plan to implement Changes
Through some appropriate action plans, any organization would be able to achieve its future
goals. Action plans are usually helpful in determining what needs to be done first during the
implementation of changes. An action plan basically prioritizes numerous actions that need to be
takes to reach a particular goal. In order to implement changes in the Freshcut Fries Restaurant,
an action plan needs to be undertaken where various tasks get prioritized. Since the goals of the
restaurant have already been listed, preparation of its action plan would start by prioritizing
different tasks and recognizing the steps that need to be takes to reach a particular goal.
The Freshcut Fries made use of Kotters 8 step change model to implement numerous changes.
Step 1 comprised of creation of urgency. Through the development of the sense of urgency, the
restaurant would be able to identify all the potential threats where scenarios would be developed
that show what could happen in the future if change does not occur. The restaurant would also
examine opportunities to be exploited including the urgency of exploiting these opportunities
before the competitors do.
The 2nd step of the Kotters change model would be the formation of powerful coalition. This is
usually a step where the advisor gets to convince the entrepreneurs the necessity of change. By
convincing the restaurant owner the need to change the business plan, it would be easier to get
the employees to cooperate through the change process (Analoui & Karami, 2003).
Step three of the change model is the creation of the vision for change. This would be done
through the determination of values that would be central to change. Creation of new strategies
to execute the vision would also be essential in the restaurant business. For instance the
restaurant would change their vision to ensuring the best services are offered to the customers.

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Step 4 would be communication of the already created vision. By communicating the vision to
both the employees and the entrepreneur, the restaurant gets one step closer to implementing the
changes. Communication of the vision would also allow all the parties involved to ask questions
and fully understand what is required of them.
Step 5 of the process would be removal of obstacles for change such as employees who may be
resisting change.
Step 6 of the change implementation model would be creation of some short-term wins. By
giving the restaurant a taste of victory such as increase in sales would motivate them to
embracing change.
The other step would be building on change. Kotter has argued that most of the change projects
fail due to the fact that victory is declared too early in the change process. Through setting of
goals, the restaurant would be able to continue building on the momentum that has already been
achieved.
The final stage would be anchoring of changes in the business culture. By making the changes
implemented stick, the restaurant would be able to easily transform as they would find the
changes to be the norm of the restaurant (Thomas & Simmons, 2010).

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Task 4
4.1 Impact of the Proposed Changes on the Business and Its Personnel
All the changes that take place in the business operations could have major impacts on
the business which could be either positive or negative impacts. These changes do not only
affect the progress of the business but also the atmosphere in which it operates on. The changes
projected for the Freshcut Fries can have great impacts in the restaurant by giving it competitive
advantage over the other group of actors or may as well cause a crumple of the whole business.
The proposed changes of the restaurant are as follows:
In terms of finance the proposed change suggests that the restaurant makes use of the
ratio analysis techniques to comprehend the financial health of the business which could
progressively increase or decrease expanses depending on the funds available. Return on
investment is very important on every business and so the business should be able to project the
time it would provide return on money invested (Parmenter, 2010).
In terms of workload, the business has already been tightly scheduled in the action plan
phase; this means that there would be a need to employ more workforces with necessary skills to
help with the workload brought about by the proposed change. The restaurant can however train
the current employees about the needs of the proposed change which may save the entrepreneur
the trouble of looking for and handling more employee on a small business premise.
4.2 Managing Proposed changes
Most small business enterprises rarely take up business and strategy changes due to the risks
involved. Despite the fact that changes are usually done with the intentions of creating better

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work environment and increase business sales, it is still a risky approach as it tends to interrupt
the normal operations of the business. However, with proper management of the proposed
changes, the transition could be smooth.
The restaurant should make use of the ADKAR change management theory to manage the
proposed changes hence ensuring that the business continues to run smoothly. ADKAR theory is
a goal oriented tool that makes it possible for the change management teams to focus on steps
that lead up to the goals. When using this particular theory, an individual is required to get the
results and outcomes in a particular orderly manner so that the change can be sustained and also
implemented. The ADKAR model would be useful in managing the proposed restaurant changes
as use of this model would allow the manager to support the employees’ transition through
change process, diagnose and treat resistance of change in the restaurant, and also come up with
some efficient plans for the improvement of the employees during the change process (Machado
& Melo, 2014).
4.3 monitoring improvements in performance of the business
The restaurant’s management is required to closely monitor the implementation of changes
while at the same time keeping track of all the predictions in order to ensure that they are in line
with the projected action plans. After the achievement of every task an action plan needs to be
updated in order to assist the business in knowing its progress on the implementation of the
proposed changes. During the change implementation, the business is also required to have some
control measures that would handle any deviations. Documents and records should also be used
to show any kind of deviations in the past including the methods used to control and minimize
such deviations. In case of variations, the business’ action plan may need to be brought up to

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date and in such cases, adjusted action plan need to be distributed so that all members of the
team are conscious of the change (Veblen, 2005).

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