MOD003463 - Honest Burgers: Analysis of Challenges and Solutions

This report examines the strategic issues confronting Honest Burgers, a restaurant chain operating in England and Wales. It highlights the significant impact of the COVID-19 pandemic and Brexit on the company's operations, leading to decreased productivity and performance. The report employs PESTLE analysis to identify external business factors and their influence on Honest Burgers. Furthermore, it utilizes SWOT analysis to pinpoint the company's strengths and opportunities, and how these can be leveraged to address weaknesses and threats related to external market challenges. The report also evaluates the implementation of solutions to enhance organizational performance and provides actionable recommendations for overcoming operational issues. The conclusion summarizes the key points of the report in a structured manner.

Undergraduate Major
Project – Integrated
Case Study
1

SUMMARY:
The report focuses on the strategic issues that are faced by the organisation of Honest
Burgers that is established in England and Wales. The report focuses on highlighting how the
situation of COVID – 19 pandemic along with BREXIT has majorly influenced the operations of
the business and led in low levels of productivity as well as performance. In addition to this, the
report consists of various challenges that are determined through the utilization of PESTLE
analyses as it helps in identifying external business factors and how the influence the business of
Honest Burgers. Furthermore, the report involves the utilization of SWOT analyses that helps in
identifying the strengths and opportunities of Honest Burger along with how they can be utilized
in order to overcome its weakness and threats which are linked with the external challenges in
the market. Moreover, the report involves evaluation of the implementation of solution relative
to the organization that helps in understanding how the solution will help the business to attain
high level of performance in the market. At last the report consist of suitable recommendation
that the business can use in order to further enhance its ability to overcome issues within its
business operations along with a conclusion that summarizes all the poitns of the report in a
structured manner.
2

Table of Contents
SUMMARY:....................................................................................................................................2
INTRODUCTION...........................................................................................................................5
MAINBODY....................................................................................................................................5
Discussing strategic issues..........................................................................................................5
Evaluating challenges..................................................................................................................7
Analysing solution....................................................................................................................13
Evaluating implementation.......................................................................................................15
COCNLUSION..............................................................................................................................16
RECOMMENDATIONS...............................................................................................................16
REFERENCES..............................................................................................................................19
3

INTRODUCTION
The hospitality industry is a broad category of fields within the service industry that
consists of lodging, foods and drink service along with event planning. It consist of hotels,
tourism agencies, restaurants and bars. The hospitality industry has taken major hits due to
various external element sin the market. The following report is based on Honest Burger
restaurant based in England and Wales. The report will highlight and discuss strategic issues
along with challenges relative to the chosen organization. In addition to this, the report will
further provide solution to overcome challenges along with their implementation. At last the
report will consist of suitable recommendation for the organization in order to enhance its
performance and productivity in the market.
MAINBODY
Discussing strategic issues.
The strategic issues are those fundamental policy choices or challenges that are required
to be addresses in order to for the organization to achieve its overall set goals and objectives. The
strategic issues serve as a foundation on which business strategies are developed. In context to
Honest Burgers, it has encountered various strategic issues in recent time due to various factors.
This has greatly impacted the performance and productivity of the organisation in order to
proved high level of customer service and satisfaction to its customers. In addition to this, the
strategic issues have been a contributing factor for the organization in develop counter strategies
in order to overcome issues. Given below are some strategic issues encountered by the
organization:
COVID – 19 Pandemic:
The situation of COVID-19 pandemic has had a major impact on the restaurants in the
UK which has negatively influenced their operations within the market. The situation of the
pandemic has introduced elements such as low market share, decreased profitability and an
increase in the concern related to employee and customers safety. In addition to this, it has
infused the operations of the organization as they are no long able to function in a tradition
manner and have to adopt new techniques as well as methods in order to overcome the pandemic
situation. Furthermore, the rules and regulation set by the government do not allow the business
4

to operate in an optimal manner due to restriction such as lock down and limited occupancy
within the restaurants. This has lead to major losses within the restaurant industry in the UK.
(Year-over-year daily change in seated restaurant diners due to the coronavirus (COVID-19)
pandemic in the United Kingdom (UK) from February 24, 2020 to December 6, 2021)
From the above graph it can be observed that the COVID – 19 pandemic has caused the
UK's restaurant industry to take a huge hit. This has primarily been the result of measures such
as social distancing and general caution in public places along with customers being force to dine
out less. The graph proves the information that shares a comparison between 2019 and
November 23, 2021 which is a -7 percent drop. In context to Honest Burgers, the organization
encountered various issues due to the situation of COVID – 19 pandemic as it saw a huge dip in
its customer base as well as its ability to generate profitability. In addition to this, it influenced it
overall ability to provide customers with high level of satisfaction through their customer service
which further decreased its customer base in the market. This made it necessary for the
management at Honest Burger to develop suitable and appropriate strategies that will help them
5

overcome with the issues of COVID – 19 pandemic in an efficient manner and allow the
business to stay productive as well as performance well in the market.
BREXIT:
The situations of BREXIT has had a negative influence on the restaurant industry within
the UK. It has causes major issues for organisation specific to the food industry as there has been
disturbances in elements such as the supply chain and employees issues. This has forced the
organisation to face strategic issues within their organisation that impact its operations and
influence its performance as well as productivity in a negative way. In addition to this, the
constricted supply chin has caused an increase in the overall raw material acquired by restaurants
which has been reflected in the prices of products serves in the organisation. This has negativity
impacted the behaviours of their customer base and reduced market share as well. In context to
Honest Burgers, the organization encountered various issues due to BRXIT that developed
strategic issues for the organization. The decline in the value of pound increased the raw material
cost for the business (Rosie.,2019) . In addition to this, the overall cost of import foods and
resulted in the decline of customer spending. This has resulted in low generation of profitability
for the organization. Moreover, according to the Bank of England Governor Mark Carney the
price of food could increase between 5 to 10 percent due to BREXIT. The overall increase in
price of due to decline value of pound, imposed tariffs and increased cost at the border as imports
will have to be checked. All these are aspects that have a major impact on the operations of
Honest Burgers and reduce their capabilities to perform in an efficient manner within the market
(Whitney., 2021).
Evaluating challenges.
There are various challenges that an organization has to encounter due to external and
internal factors. These factors negatively influence the operations of a business and hinder its
business operation in the market resulting in low level of productivity as well as performance. In
context to Honest Burgers, there are various challenges that the organization has to encounter
due to external factors that have major impact on its performance along with the ability to
provide its customers with a high level of satisfaction. In order to analyses the challenges that
Honest Burger encounters, PESTLE analysis can be utilized in order to identify and analyses the
6

external challenges that impact the operations of the organization (Ritesh.,2020). Given below is
the PESTLE analyses of Honest Burgers:
PESTLE Analysis:
It is an effective tool that can be utilized by an organization in order to identify and
analyses various external factors that have an influence on the operation of the organization.
Given below is the PESTLE Analyses in context to Honest Burgers:
Political:
This factor is concerned with how government policies and actions intervene in the
economy and other facts that impact the operations of the business and consist of tax policies,
trade restrictions, tariffs along with bureaucracy. In context to Honest Burgers, the situation of
BREXT along with the changes made in the laws regarding importing of goods and their tariff
have negatively impacted the operations of the organization (Erik.,2020). This has caused
inefficiency within the supply chain of Honest Burgers resulting in low level of productivity as
well as performance. In addition to this, it has also impacted the price of its products which have
increased due to lack of availability for raw material.
7

(The British Pound, Brexit and the Pandemic)
Economical:
This external factor takes into account various aspects of the economy and how the
outlook or each particular are can impact the business. This factor consists of economic growth
rate, interest rates, exchange rates along with inflations and unemployment rates. In context to
Honest Burgers, the economy of the UK has taken a major hit due to the situation of COVID –
19 pandemic as well as BREXIT. This has resulted in an increase in unemployment rates as well
as decrease the purchasing power of customers due to lack of jobs. In addition to this, the
situation of BREXIT has reduced the value of pound further impacting the profitability of the
organization. The negative aspect of the external economic factor has reduced the capability of
Honest Burgers to generate high amount of probability within the market.
(The economic effects of coronavirus in the UK)
8

Social:
The social external factors is related to the culture and demographics trends of society. It
consists of social norms and pressures which are the key to determine consumer behaviour. This
factors consists of cultural aspects, health consciousness, population growth rate along with age
distribution. In context to Honest Burgers, the impact of COVID – 19 has directly influenced the
social behaviour of their customers as its has decreased their purchasing power. This is a direct
result of decrease in the value of pound along with an increase in the unemployment rates. Due
to this situation the organization has observe a decree in the customer base along with market
share. This has directly influenced their ability to generate high levels of profits along with their
ability to attract customers
(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)
9

Technological:
The technological factor is linked with the aspect of innovation within the industry as
well innovation in the overall economy. This is vital as not being up-to date with latest trends in
a particular industry can cause hindrance in operations. In context to Honest Burgers, the
organization and its management are not able to interoperate advance technology within their
supply chain which has been negatively impacted by the situation of BREXIT. This has caused
an increase in the cost of their products and service resulting in reduced customer engagement
along with profitability. In addition to this, the organization has not been able to use technology
within its processing operations that can help the business to keep the price of its products low in
order to attract more customers in the competitive market.
Legal:
This factor is based on legal forces that define what actions a business is allowed to
perform. It involves a relationship between the business and the government relative to
organizational operations. The factor consists of industry regulation, licenses and permits along
with labour laws and intellectual property. In context to Honest Burgers, there have been various
legal aspects such as safety of employees that has raised as challenge due to the COVID - 19
pandemic. The organization has encountered challenges in motivating its employees to work
along with ensuring that they are safe from the pandemic while working for their organization. In
addition to this, it has impacted their hiring operations as well. Furthermore, the organization has
faced the challenges to operate their business according to the set regulation by the government
in the pandemic restriction. This has greatly reduced the productivity of the business and
impacted its performance in the market.
10

(What impact do you think Brexit will have on your business in the following areas)
Environmental:
This factor is concerned about the ecological impact of business operations on the
surrounding environment. It included weather conditions, temperate, climate change along with
pollution. In context to Honest Burgers, the organization is focused on fulfilling its
environmental responsibility in an effective manner by utilizing natural resources from reliable
supplies in order to minimize their impact on the environment. Although due to BREXIT the
organization has encountered the challenge of souring its products from the reliable supplier to
an hike import tariffs (Felix.,2020). This has lead to a challenges where the business is not able
to balance the overall price of their products relative to the satisfaction of customers. This has
decreased their customer base as well as market share.
11

(Restaurant Industry Collapses Due to Widespread Shutdowns)
Analysing solution.
It is crucial for an organization to develop effective strategies as well as solution in order
to overcome issues within the business. This allows a bushiness to ensure that it is able to
maintain a high level of productivity as well as performance within the market. In addition to this
it helps a business to be proactive. In context to Honest Burgers, it is vital top develop and
analyses solution that will help the organization to overcome challenges and strategic issues in an
optimal manner. In order to develop solution the organization can utilize SWOT analyses as it
will helps the business to identify its strengths and opportunists that will help them to overcome
its weakness and threats in an efficient manner (Skye.,2021). It will allow Honest Burgers to
develop subtitle solutions and strategies based on their strengths which will provide them with
high level of market performance. Given below is the SWOT analysis of Honest Burgers:
SWOT Analysis:
Strength Weaknesses
 The organization is well know in the
market and has established an optimal
reputation through its high level of
customer service along with product
 The organization is not able to reduce
the price of its products due to the
situation of BREXIT that has majorly
12

quality.
 The business has proper engagement
wit its customers in the market through
social media. This allows the business
to engage with its customer base in an
efficient manner.
impacted its supply chain.
 The organization is not able to develop
effective engagement with its
customers due to the situation of
COVID – 19 restriction which has
caused a decrease in the number of
customers the business has.
Opportunity Threats
 The organization can look for a local
supplier which will provide them with
high quality raw material. This will
allow the business to reduce the prices
of its products and ensure that it is able
to attract a large customer base in an
efficient manner.
 The organization can use its social
media accounts in order to inform its
customers about the business in order
to enhance its brand awareness. This
will help the business to ensure that it is
able to reach a larger customer base in
a cost efficient manner.
 The overall dynamic nature of the
market is a constant threat to the
organization as it does not have any pro
active plans developed that can support
the organization.
 The changing preference of customers
is also a threat to the organisation as the
behaviour of customer on the bases of
taste and price of products keep
changing. This makes it difficult for the
organization to adapt and make suitable
changes in its operations.
From the above SWOT analysis various solutions can be derived that will help Honest
Burger to overcome challenges in the market. Given below are some solution in context to
Honest Burgers:
 The organization through the utilization of its high level of brand image can to develop
positive relations with new suppliers in the market. This will help the business ot lower
its price of products by elimination the element of importing raw material. This will help
in overcoming the issues related to the BREXIT situation. In addition to this, the
13

organization can use their brand image in the market In order to promote their brand in a
positive light. This will help the business to attract customers by promoting a hygienic
and COVID safe business. This will help the business to grab a higher level of market
share along with increased profitability.
 The organization can use their multiple social media accounts in order to attract
customers. They can use technology in order to inform the customers about their products
along with how they follow necessary COVID – 19 protocol in order to ensure a safe
environment. In addition to this, the business can use its various social media presence in
order to understand the changing taste and preference of their customers. This will allow
the business to develop products that are in trend and ensure attracting a large customer
base in an efficient manner.
Evaluating implementation
It is crucial for a business to implement its solution to issues in a structured and
systematic manner in order to ensure that it is able to gain optimal amount of effectiveness from
it. In addition to this, it allows a business to ensure that it is able to become proactive in nature
while provide essential help in future unseen situations. In context to Honest Burgers, the
organization has implemented various strategies in order to ensure that is is able to overcome the
issues related to the situation of COVID – 19 pandemic along with BREXIT. Given below are
the evaluation of these solutions:
 The organization is able to establish strict COVID – 19 protocols that ensure its
customers are safe and secure. This helps the business to gain the trust of its customers
base as well as allows the business to attract customers in an efficient manner. The
organization is also able to ensure that all their employees are safe through daily health
screening along with coronavirus testing (Honest Burger COVID – 19 policy).
Furthermore, the organization has established quality screening in order to ensure that the
customers receive high level of customer service. It has also provide the customers with
contact less methods of payment that help the business to keep both its employees and
customer safe. This helps the business to enhance its brand image in the market and
ensure it is able to attain a larger market share.
 The management of the organization have also established techniques in order to keep
their employees motived in order to enhance their performance as well as productivity.
14

This allows the business to keep the employees motived through crisis and deliver high
level of customer serve to the customers (How Honest Burgers are keeping their people
together through crisis). This helps the business to attract customers in an optimal
manner and ensure it is able to generate high level of profitability.
 The management at Honest Burgers have also focused on utilizing their social media
accounts in order to develop a positive engagement with their employees during the
situation of pandemic (Cath.,2020). This allows the business to minimise redundancies
along with attain the ability to re-skill its workforce and ensure transferable skills were
put to good use. This helps the business it ensure that their employees are highly motived
which helps accomplishing the goals and objective of the organization along with the
ability to overcome challenges in an efficient manner.
COCNLUSION
From the above report is can be concluded that, there are various factors in the market
that cause strategic issues for an organization as well as give rise to challenges. This impacts the
overall performance as well as productivity of a business. In addition to this, it influences its
market competitiveness due to negative impact on the organisation market share as well as its
ability to generate profitability. The report was also able to conclude that is is vital for a business
to evaluate various challenges in the market that are external in nature through tools such as the
PESTLE analyses. Moreover, the organization can overcome these challenge through its current
strengths and opportunities which will provide essential support in overcoming its weakness and
threat. In addition to this, it allows the business to gain the opportunity to develop structured
plans that arr proactive and help in maintaining efficiency. Furthermore, the report was able to
evaluate the implementation of the solutions provide form the SWOT analyses along with
suitable and appropriate recommendation that will help the chosen organization to further
improve their business operations and attain high level of growth in the market.
RECOMMENDATIONS
The tourism and hospitality industry is highly customer oriented and it relies on intensity,
professionalism and genuine services provided to its customers or guests. Similarly Honest
Burgers also rely on its customers for maintaining successful and efficient service hospitality
15

business. In order to be efficient and effective in their services Honest Burgers could adopt six-
Sigma strategy for the process of improvement in its business activities and gain cost efficiency
in their process. It is recommended that Honest Burgers could utilize a 'top down' approach for
its highly trained and skilled employees to bring effective changes in their practices and
encourage their teamwork to bring positive change.
Six-Sigma is a methodology that utilizes strategic tools and concepts in order to understand
variations, diversions or defects within a process. The Honest Burgers in the hospitality industry,
including their offerings in lodging, food and beverages, travel and transportation etc. can use
six-sigma for getting ahead of its customers. The use of Six Sigma can help hospitality
companies to decrease deviations in their manufacturing process and get data driven success for
their business.
The Honest Burgers could utilize the strategy of implementing six-Sigma process that would
help to take their business ahead of competition by enhancing its productivity and profits by
gaining a maximum number of customers. Moreover, the use of six-Sigma strategy could help
Honest Burgers to improve manufacturing quality by identifying and eliminating the causes of
variations in the manufacturing process of their business. The Six Sigma strategy is useful as it
could enhance the manufacturing methods by using empirical and statistical quality management
methods and hiring the most efficient people who could serve as the base of support to improve
quality management.
In order to increase customer loyalty, the Honest Burgers should use Six Sigma process
because it helps to eliminate defaults and improve the quality of their products, which becomes a
key aspect for the customer satisfaction so they be loyal to the business. Due to the reduction in
wastage, the products could be delivered at lower prices with least hassle to improve customer
satisfaction. The customers who develop a strong sense of quality from the company is less
likely to switch to other brands as they fell more satisfied with the company’s products and
services (Galli, 2018).
In order to increase employability, the Honest Burgers should utilize six-sigma to get the
best employees who are certified to bring optimum results in their working. When the employees
are well trained and professional in their working the wastage is reduced, work is done on time
and they enhance the knowledge of others to improve overall performance. The employability is
16

also increased when the employees feel valued and comfortable with their work in the
organization.
The use of Six Sigma could also improve the overall work culture within a company due to
hierarchy of Six Sigma that define certified individuals at the top gradually declining to
uncertified at the bottom that helps in proper management of people and brings better results by
working together. It will also be helpful to create strong teams on their roles in objectives to
work seamlessly and bring the best results of their work (Erginel and et. al., 2018). This system
of hierarchy helps to assign the roles, responsibilities and duties in more efficient and effective
manners to the employees.
The company could also use Six Sigma to reduce its costs by eliminating errors in the
process and defining the ways to work by optimum means. It is especially seen in hospitality
organizations that it employs and the organization creates a lot of mess while working together,
this could be eliminated by the use of Six Sigma strategy in their organization. The Honest
Burgers could utilize this strategy to enhance their resource utilization and create least wastage
due availability of skilled and talented workforce.
At the end, it could be recommended to the Honest Burgers to use Six Sigma in their
business to eliminate errors in their production and manufacturing process that leads to the
quality improvement of a product. The use of Six Sigma could help the company to entrance its
employees with tools to understand the needs of customers and deliver Excellency to them
(Madhani, 2021). This leads to overall customer satisfaction and customer loyalty that it adds to
the profits of business.
17

REFERENCES
Books & Journals:
Erginel, N. and et. al., 2018. Evaluation methods for completed Six Sigma projects through an
interval type-2 fuzzy ANP. Journal of Intelligent & Fuzzy Systems, 35(2). pp.1851-1863.
Galli, B.J., 2018. Can project management help improve lean six sigma?. IEEE Engineering
Management Review, 46(2). pp.55-64.
Madhani, P. M., 2021. Strategic Human Resource: Enhancing Performance With Six Sigma
Approach. Compensation & Benefits Review. p.08863687211045141.
Yadav, V. and et. al., 2021. Green Lean Six Sigma critical barriers: exploration and investigation
for improved sustainable performance. International Journal of Six Sigma and
Competitive Advantage, 13(1-3). pp.101-119.
Online:
Year-over-year daily change in seated restaurant diners due to the coronavirus (COVID-19)
pandemic in the United Kingdom (UK) from February 24, 2020 to December 6, 2021,
[Online] Available through:<https://www.statista.com/statistics/1104991/coronavirus-
restaurant-visitation-impact-united-kingdom-uk/>
Rosie Lintott.,2019. The impact of Brexit on the food service industry.[Online]Available
through:<https://www.verdictfoodservice.com/features/impact-of-brexit-on-the-
foodservice-industry/>
Whitney James., 2021. The impact of Brexit on the hospitality sector.[Online] Available
through:<https://stint.co/learning-hub/the-impact-of-brexit-on-the-hospitality-sector/>
What impact do you think Brexit will have on your business in the following areas?.[Online]
Available through:<https://www.statista.com/statistics/1062055/brexit-s-impact-on-the-
food-and-industry-in-the-united-kingdom-by-area/>
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.
[Online]:<https://www.statista.com/statistics/1105174/uk-pub-and-restaurant-sales-fall-
due-to-covid-19/>
Erik Norland.,2020.The British Pound, Brexit and the Pandemic.[Online]Available
through:<https://www.cmegroup.com/education/featured-reports/the-british-pound-
brexit-and-the-pandemic.html>
The economic effects of coronavirus in the UK.[Online]Available
through:<https://www.resolutionfoundation.org/publications/the-economic-effects-of-
coronavirus-in-the-uk/>
18

Felix Richter.,2020.Restaurant Industry Collapses Due to Widespread Shutdowns
.[Online]Available through:<https://www.statista.com/chart/21203/decline-in-restaurant-traffic-
due-to-coronavirus/>
Honest Burger COVID – 19 policy.[Online] Available
through:<https://www.honestburgers.co.uk/covid-19-policy/>
How Honest Burgers are keeping their people together through crisis.[Online]Available
through:<https://www.wolffolins.com/views/people-up-honest-burgers/>
Cath Everett.,2020.When COVID sped up Brexit - Honest Burgers turns to Workplace from
Facebook to beef up employee engagement.[Online]Available
through:<https://diginomica.com/when-covid-sped-brexit-honest-burgers-turns-
workplace-facebook-beef-employee-engagement>
Ritesh Pathak.,2020. What is PESTLE Analysis? Everything you need to know about it.
[Online]:<https://www.analyticssteps.com/blogs/what-pestle-analysis>
Skye Schooley.,2021. SWOT Analysis: What It Is and When to Use It.[Online]Available
through:<https://www.businessnewsdaily.com/4245-swot-analysis.html>
19

20