Situational Analysis of Royal Stacks Restaurant - Marketing VBE 1005

This report presents a situational analysis of Royal Stacks, a burger restaurant in Melbourne, focusing on its market position, company profile, product offerings, environmental factors, customer base, and competitive landscape. The analysis identifies key competitors such as McDonalds, Mr. Scruff’s, Brother Burger, Hungry Jacks and Betty's Burgers, and examines Royal Stacks' strengths, weaknesses, opportunities, and threats (SWOT). Strengths include high-quality, GMO-free ingredients, a family-friendly atmosphere, and effective social media presence. Weaknesses include the lack of home delivery and limited product development. Opportunities involve international expansion and diversifying product offerings. Threats include increasing health consciousness and competition from local businesses. The report concludes by emphasizing the need for Royal Stacks to leverage its strengths and opportunities while addressing its weaknesses and mitigating threats to sustain and grow its market share.

Running head: SITUATIONAL ANALYSIS OF ROYAL STACKS
Situational Analysis of Royal Stacks
Name of the Student:
Name of the University:
Author Note:

1SITUATIONAL ANALYSIS OF ROYAL STACKS
Market Analysis:
The market of the food industry, being specific to burgers has reached a matured stag that
has attained a saturated position. The place of the Royal Stack in Melbourne at Brunswick on the
Sydney Road is a very popular area that is accessed by a huge population. Thus, it is beneficial
for the company to market here. However, the marketing situation being advantageous provokes
most of the companies to set in the market that becomes challenging in the future. Moreover,
various local shops selling the various snacks at much lower price makes it difficult for Royal
Stacks to manipulate customers. Thus, though the market situation is good for the restaurant yet
is often threatened by the locally operational businesses largely.
Company Analysis:
Royal Stacks was first opened in CBD Melbourne by Dani Zeini and the restaurant at
Brunswick is their second store (Royal Stacks | Burgers Melbourne CBD | Burgers Brunswick,
2018). The company is preferred because of the GMO free beef burgers that it provides and
because none of the products that they sell contain nay hormones or antibiotics. The company’s
mission is to provide the best quality food to the customers and have a very well trained and
friendly staffs, who are always appreciated by the customers. The company strives to give out
their best for satisfying the customers and being the popular family restaurant, it holds high
repute in the market.
Products:
Royal Stacks is famous for all its burgers. However the mac and cheese enriched King
Burger of the company has been very popular over the years. The double stack burger also holds
high preference among the customers. Presentation of food and the ambience also serve to be

2SITUATIONAL ANALYSIS OF ROYAL STACKS
very attractive for customers. The Miss Elizabeth burger is also very famous that is highly
appreciated by the customers. The prices of the burgers are also affordable and costs $50 for two
people approximately (Royal Stacks | Burgers Melbourne CBD | Burgers Brunswick, 2018).
However, the price of the milkshakes seems to be bit higher. The promotional programs of the
company are relevant and through social sites, it has advertised its products largely. It also shares
effective and healthy customer relations that enable it to with held the customers.
Environmental Analysis:
The political situation of Australia is very stable. Thus, business market does not have
any such disturbances in their operation. Considering the economic factor, according to reports
of IBIS, the fast food industry in the country has a growth rate of 3.7% per annum
(Ibisworld.com.au, 2018). Thus economic recession has negative impact on the business. Due to
this, Royal Shacks need to provide discounts and offers for the customers. In relation to the
social aspect, younger generation have a high affinity towards fast foods that Royal Stacks also
offers along the other fast food hubs. However, growing health consciousness among people
seems to be threatening the business in the recent years. Advancement in technology has
rendered greater success for the company. Packaging, social media advertising, advanced
machines have all promoted and accelerated business (Grönman et al. 2013). The company has
no legal issues and is operating smoothly. It performs certain corporate social responsibilities
causing no negative environmental impacts.
Customer Analysis:
The people residing in the area are the potential customers for Royal Stacks. People who
have affinity for new food and tastes serve to be the customers for Royal Stacks. The people

3SITUATIONAL ANALYSIS OF ROYAL STACKS
coming for shopping at the local markets and at the Barkly Square Shopping Centre also serve to
be the customers of the restaurant. A good crowd of the restaurant is framed by the younger
generation, mainly school and college goers. They are the targeted customers for the company. a
hug crowd is manifested during the time of festivals and weekends. People returning from office
also serve to be the customers who mainly prefer take away. Over all, it is found that the young
people in the age group of 12-32 frame to be the most potential customers for the restaurant.
Competitors Analysis:
. Burger being a classic food serves to be interesting business for many entrepreneurs.
McDonalds, Mr. Scruff’s, Brother Burger, and Hungry jacks also offer stiff competition for
Royal Stacks with their burgers and other food products.
The Mr. Burger truck brought into the market in 2012 has served to be a major threat for
Royal Stack since it has been able to gain a good customer base and loyalty (Jones, 2018). It
serves its customers wherever they want it. Thus, it is highly preferred by many. Betty’s Burgers
also serve to be a major threat for Royal Stacks. The friendly staff and phone orders
congregation in the same area serve to be the reasons for customers to prefer it. Moreover, the
speedy service of providing customers with the ordered food within 6-8 minuts also makes it
more pronounced. The beef, chicken pork and mushroom burgers are the kids’ favorite. Betty’s
Burgers have many outsets in Sydney, Melbourne and Brisbane that is higher than Royal Stacks.
Although both the companies operate in similar ways and strategies, they serve to be the major
competitors for each other.
SWOT Analysis:

4SITUATIONAL ANALYSIS OF ROYAL STACKS
The SWOT analysis of Royal Stacks determines the strengths and weaknesses of the
restaurant and shows the different threats that it has in the operational area. It also shows the
opportunities that the restaurant has, adopting which it can lead to greater success.
Strengths:
 The burgers of the restaurant are considered to be the best in Melbourne.
 The beef used here is 100% Australian and pasture fed.
 Recognized for the fresh products and quality food.
 No presence of hormones and antibiotics in the food (Bigliardi and Galati 2013).
 Prices are competitive that stands out to be affordable.
 Family restaurant that renders high customer satisfaction.
 Apart from burgers, it also sells snacks such as fries, croquette, jalapenos and others.
 The restaurant remains open for a long time from 11.30 am to 10 pm.
 Introduction of the halal menu and the new frozen custard flavors have attracted
consumers to a significant extent.
 Live music in the restaurant and outdoor seating serves to be very attractive for the
customers.
 The restaurant is vegetarian friendly that is an added strength for the Royal Stacks.
 Presence of the company in social media sites and its own website keep the customers
informed and helps it in advertising (Rutsaert et al. 2014)
Weaknesses:
 Do not have home delivery facilities.
 Product development is weak.

5SITUATIONAL ANALYSIS OF ROYAL STACKS
 Some consider the milkshakes to be over-priced and artificial in taste.
Threats:
 Health consciousness in customers has been increasing (Hsu, Chang and Lin 2016).
 Threats from local competitors.
 Operational in a saturated industry.
Opportunities:
 Have the scope for expanding internationally.
 Increase the number of branches.
 Can expand the market by home delivery facilities.
 Has the opportunity to sell differentiated products and include beverages.

6SITUATIONAL ANALYSIS OF ROYAL STACKS
References:
Bigliardi, B. and Galati, F., 2013. Innovation trends in the food industry: the case of functional
foods. Trends in Food Science & Technology, 31(2), pp.118-129.
Grönman, K., Soukka, R., Järvi‐Kääriäinen, T., Katajajuuri, J.M., Kuisma, M., Koivupuro, H.K.,
Ollila, M., Pitkänen, M., Miettinen, O., Silvenius, F. and Thun, R., 2013. Framework for
sustainable food packaging design. Packaging Technology and Science, 26(4), pp.187-200.
Heasman, M. and Lang, T., 2015. Food wars: the global battle for mouths, minds and markets.
Routledge.
Hsu, S.Y., Chang, C.C. and Lin, T.T., 2016. An analysis of purchase intentions toward organic
food on health consciousness and food safety with/under structural equation modeling. British
Food Journal, 118(1), pp.200-216.
Ibisworld.com.au. (2018). Fast Food and Takeaway Food Services – Australia Industry Report |
IBISWorld. [online] Available at: https://www.ibisworld.com.au/industry-trends/market-
research-reports/accommodation-food-services/fast-takeaway-food-services.html [Accessed 12
Apr. 2018].
Jones, K. (2018). Battle of the burgers. [online] The Sydney Morning Herald. Available at:
https://www.smh.com.au/business/small-business/battle-of-the-burgers-20160304-gna806.html
[Accessed 12 Apr. 2018].
Royal Stacks | Burgers Melbourne CBD | Burgers Brunswick. (2018). About. [online] Available
at: http://royalstacks.com.au/ [Accessed 12 Apr. 2018].

7SITUATIONAL ANALYSIS OF ROYAL STACKS
Rutsaert, P., Pieniak, Z., Regan, Á., McConnon, Á., Kuttschreuter, M., Lores, M., Lozano, N.,
Guzzon, A., Santare, D. and Verbeke, W., 2014. Social media as a useful tool in food risk and
benefit communication? A strategic orientation approach. Food Policy, 46, pp.84-93.