Undergraduate Project: Challenges and Solutions for Leon's Restaurant

This report provides a comprehensive analysis of the challenges faced by Leon's Restaurant, a UK-based food chain, including high production costs, competition, Brexit, customer shifts, and the impact of COVID-19. The report delves into a SWOT analysis to assess internal strengths and weaknesses and external opportunities and threats. It then applies Porter's Five Forces to evaluate the competitive landscape. Strategies are proposed to address these challenges, such as maintaining good relations post-Brexit, adapting to mini-markets during COVID-19, and enhancing service offerings to retain customers. The implementation of these solutions is discussed, emphasizing the importance of adapting to market uncertainties. The report concludes by highlighting the significance of strategic decision-making and market research in navigating business challenges within the service sector.

Undergraduate Major
Project

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Literature Review .......................................................................................................................3
Critically analyse challenges faced by Leon's restaurant in business & how they can be solved...3
Challenges- .....................................................................................................................................5
Strategy............................................................................................................................................6
Solution- ..........................................................................................................................................7
Implementation................................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10

INTRODUCTION
In business sector, market situations are changeable & problems as well as risk arises. It is
essential to have appropriate knowledge about market situations so that decision making strategies
are implemented accordingly (Bartik, 2020). Main aim of this report is to analyse problems & risk
that occur in business sector. Leon's restaurants, a food chain headquartered in United Kingdom.
The restaurant has 60 restaurants around the region & has many competitors such as Byron
Hamburgers Limited, B. GOOD, Honest Burgers etc. This report comprises of literature review,
strategy, challenges, solution & implementation.
MAIN BODY
Literature Review
According to (Matschewsky, 2018) challenges in business are likely to occur within period
time & depending upon market structure. Th research question which is challenges faced by Leon
restaurants & how these challenges can be solved has been undertaken with proper
considerations. This restaurant faces many problems in business such as high cost production,
competition etc. It is duty of entrepreneur to adopt appropriate measures so that it is easy to deal
with such situations properly. Mostly in service & hospitality industry, challenges occurs within
both internally & externally due to changing factors. This presented report discusses the major
challenges which are being faced by Leon restaurants.
Critically analyse challenges faced by Leon's restaurant in business & how they can be solved
In service sectors, market is wider & broader which shows that there are range of different
situations that can impact on business. So, it is essential to be aware about these uncertain situations
so that decision-making is carried out in proper way. In context of Leon's restaurants they are
operates at wider scale & large employee size. It is being also considered as Best New Restaurant in
Great Britain at The Observer Food Monthly Awards. This restaurant was founded by John Vincent
& Henry Dimbley (Dhir, 2020). It nearly has more than 57 branches in commercial and public
sectors. Due to operating at larger level they faces many challenges within business which are
explained below-
SWOT Analysis
It is tool which is used by entity to examine & analyse their internal capabilities by
accessing to strength, weakness, opportunity & threat. It is further explained below-

Strength
 Main strength of Leon restaurant is that
it has wide range of branches & also it
shows their string base of organisation.
 Another strength of restaurant is that
they distributes organic foods to
customers which enhances their goodwill
(Dymek, 2016).
Weakness
 Main weakness of restaurant is that due
to impact of Brexit they find it difficult
to carry out business activities.
Opportunity
 As they are operating and classifying
their market into mini markets in this
pandemic situation they has opportunity
of generating more profits.
Threats
 With rise of competition in market, Leon
have threat of losing their identity (Essl,
2018).

Challenges-
 Brexit- It is major challenges which is faced by Leon restaurants. This is because due to
impact of Brexit it is becoming difficult for them to enlarge their business globally as due to
changing of both EU & U.K policies. It makes it difficult for restaurant to take advantage
of internationally markets (Grima, 2017). Moreover, due to impact of this Brexit, restaurant
has to adapt with rules & legislations of both he regions which leads to time consuming &
cost expensive. It negatively impacting upon business overall structure and activities.
 Shift of customers- The service sector provide many alternatives and wide options to
customers of food, drinks, beverages etc. Due to rise of competition in U.K market, Leon
restaurant is unable to engage customers with their brand for longer period of time. For
example- it has many competitors in market such as Ted's Five Guys, Scotty's Brewhouse,
etc. which have been dominating the market of selected restaurant. The demands and needs
of customers are changeable due to which chosen restaurant has to make their decisions
accordingly (Hao, 2020).
 COVID 19- This is most recent challenge which is being faced by selected restaurant.
During this ongoing pandemic situation, it has become difficult for business sector to carry
out their activities & operations in proper manner. COVID19 has changed the way of doing
business in market. In relevance of chosen restaurant, very few customers visits to
restaurants. Moreover, impact of this pandemic situations disrupted the financial structure
of restaurant at larger scale. Also, they have been unable to use their resources efficiently
because of higher prices in market.
Therefore, challenges which has been discussed shows that it is necessary to for business
sector to have appropriate knowledge of these challenges so that decision making process is carried
out in effective manner.
Strategy
In corporate world, it is essential to focus on strategies & tactics so that competitive
advantage is gained & challenged are being faced properly. In case of selected firm, it is essential
for them to implement strategy so that objectives are accomplished. So, Porter Five Force analysis
has been discussed-
Porter Five Force-

This is type of model which is used by most of enterprise to analyse the competitive forces
that shape business in market (Ivanov, 2017). In context of chosen corporation, through analysing
of this model strategy is implemented accordingly which is further explained below-
Bargaining power of suppliers- In this competitive force, it shows the power of supplier
in market. Power of bargaining is high when there are few buyers, resources are few etc. Suppliers
are important for business as they are on who are responsible for distribution of products to
customers. In context of selected restaurant, bargaining power of supplier is moderate as farmers
bargain at low level (Kuhn, 2020).
Bargaining power of buyers- It is another competitive force in which buyers mostly look
for high bargaining power with aim of gaining better quality of products at affordable prices. In
context of chosen corporation, bargaining power is mostly low because restaurant provide most
health & organic food which fulfil the needs & demands of customers (Los, 2017).
Threat of substitutes- Substitute is defined as replacement of existing product. This is also
competitive force which shape business as market is wider & broader & which offers wide products
of same field. Threat of substitute is high when competition is high & other products fulfil needs &
demands of customers. In relevance of selected firm, threat is moderate as because they provide
organic food to customers of high quality.
Rivalry among existing customers- This competitive force shows intensity of competition
in same industry at marketplace. In relevance of chosen restaurant, the intensity of competition is
basically high. Competitors of restaurants are at wider range & which shape the business.
Threat of new entrants- In service & hospitality sector, new entrants often arises & enters
in market. In case of Leon restaurants, threat of new entrants is low because it new entrants cannot
survive in this competitive market also it is time consuming process to get recognised. In context of
chosen restaurants they do not have to worry about new entrants.
Thus, above explained matter shows that it is necessary to focus & implement strategy so
that business operations as well as functions are carried out appropriately. Moreover, above
discussed competitive force shows that when developing strategy for business proper market
information is to be collected.
Solution-
Brexit- Maintain good relations
To deal with this challenge, they restaurant has proposed a solution which is maintain a good
relationship with both U.K & EU regions. Through properly focusing on this solution will help
them to carry out their business activities in most effective manner. Moreover, they are to be

expanding their business mostly within U.K region. It is crucial to maintain good relation as it will
be easier to achieve objectives within period of time.
COVID19- Mini markets
It is another challenge which is faced by Leon restaurant as due to this they have been
unable to target their customers with their brand properly. Thus, manager of Leon restaurant Pert
says that pandemic situations has impacted at wider scale so solution for this problem is that they
have been segmenting their services into min markets on basis of which they are also giving option
of take and quick delivery through Just Eat & Deliveroo (Matschewsky, 2018). This make sit easy
for customers & their heath is also does not get affected. Leon has temporarily converted its
physical outlets into retail stores. Also, it will explore new ways to connect consumer demand for
meals and essentials to producers during the pandemic. Then. the COVID-19 outbreak has been
changing consumers' lives: through Feed Britain, Leon offers ready meals and an alternative food
source.
Shift of customers- More alternative products with value added services
It is also challenge which is faced by restaurants as in this customers find it another better
products. With increased competition, it has become essential to focus on this measures as solution
for this problem is that they will be enlarge their services & products portfolio to satisfies the wants
of customers in proper manner. Moreover, they are being changing their services structure too.
(Yoke, 2010).
Thus, from explained matter it has been analysed that it is necessary to focus on solutions
or measures that can be used by business. Furthermore, in service sector, issues & challenges occurs
at within uncertain events. It is duty of manager to make assure that correct processes & procedures
are being carried out so that effective measures are adopted.
Implementation
When solution are examined and identified of a particular problem or situation, it is crucial
to implement them in appropriate way. It is essential for managers to adopt solution & implement
them in correct manner. Further, through proper implementing of them will help in dealing with
uncertainties of situations and events which occurs at marketplace. Such as to carry out maintain
good relation they pay taxes & bills to both customers as well as government. Through
implementing this they are able to develop a good relation with both regions.
For other challenge which is COVID 19, they have implemented new safety measures such
as compulsory masks, sanitizer to customers who are visiting to restaurants physically. Also, within
their mini markets they have started their services through Deliveroo (Bartik, 2020). The

implementation of these mini markets their sales & profit is at stable stage. Another challenge
which is of shifts of customers & solution of valuer added services has been implemented as take
way services delivery has been started by them & customers are enjoy these value added services.
The manager of restaurant is responsible for handling & managing of these value added services
such a discounts, offers etc.
Thus, it has been stated that through adopting & actual implementation of these solution
assist them in dealing with market uncertainties. These implementations are required to be carried
out with proper considerations (Dhir, 2020).

CONCLUSION
After a brief analysis of above report, it has been concluded that it is essential to be aware
about market situations & changing situations so that it is easier to accomplish goals. Discussions
has been made about challenges, solutions, implementation, SWOT & Porter Five Force model.
This it has been evaluated that it is necessary for organisation to make decisions effectively so that
issues or problem do not occur in future period. Moreover, through use of appropriate frameworks
and deep market research it is easy to identify the challenge which c an be faced by businesses in
specific market.

REFERENCES
Books & Journal:
Bartik, 2020.What jobs are being done at home during the COVID-19 crisis? Evidence from firm-
level surveys(No. w27422). National Bureau of Economic Research.
Dhir, 2020. Food waste in hospitality and food services: A systematic literature review and
framework development approach.Journal of Cleaner Production,270, p.122861.
Dymek, 2016.The business of gamification: a critical analysis. Taylor & Francis.
Essl, 2018. Climate change, carbon market instruments, and biodiversity: focusing on synergies and
avoiding pitfalls.Wiley Interdisciplinary Reviews: Climate Change, 9(1), p.e486.
Grima, 2017, October. The Effect of the Financial Crisis on Emerging Markets. A comparative
analysis of the stock market situation before and after. In DIEM: Dubrovnik International
Economic Meeting (Vol. 3, No. 1, pp. 228-254). Sveučilište u Dubrovniku.
Hao, 2020. COVID-19 and China’s hotel industry: Impacts, a disaster management framework, and
post-pandemic agenda.International Journal of Hospitality Management,90, p.102636.
Ivanov, 2017. Robonomics-principles, benefits, challenges, solutions.
Kuhn, 2020. Digital Publishing in Germany: Market Situation and Trends 2017/18.
Los, 2017. The mismatch between local voting and the local economic consequences of
Brexit.Regional Studies,51(5), pp.786-799.
Matschewsky, 2018. Designing and providing integrated product-service systems–challenges,
opportunities and solutions resulting from prescriptive approaches in two industrial
companies.International Journal of Production Research, 56(6), pp.2150-2168.
Yoke, 2017. A study on soft skill development among final year diploma in business studies
students.MOJEM: Malaysian Online Journal of Educational Management,3(2), pp.32-50.