Frankly speaking, Shake Shack has a huge potential to be a successful franchise in Vancouver. Internally, the company possesses a decent, compelling core value closely related to health, sustainability and hospitality, which is very likely to be well-appreciated by potential customers in Vancouver. This kind of value is thoroughly demonstrated through Shake Shack’s authentic products and warm services. Everybody loves restaurants where they get food with amazing taste and guaranteed safety, meanwhile treated like they are gods. And that is exactly how Shake Shack established its brand awareness in the U.S.
To turn these strengths into opportunities and ultimately into profits, Shake Shack needs to carry on doing what it is best at, which means it must maintain high qualities in both products and services, though that could be a tough task. Because, any drop, even the …show more content…
The deadliest one might be its deformed business model, which manifests as being too labour-intensive, because of its obsession with hospitality (Mourdoukoutas,2015a,para.9). A study showed that it takes 30 employees to run one Shake Shack branch restaurant while Chipotle, one of its primary opponents, only needs 12 to do the same thing(Mourdoukoutas,2015b,para.10). This could lead to less pleasant working environment (because the kitchen has limited space), exorbitant labour-cost and eventually, poor profitability. There are other issues as well, such as price policies, ads, and supply chains.
To tackle these problems, Shake Shack ought to modify its operating system with less employees and treat employees better. A raise on wages would be a goods start. Also, Shake Shack should reconstruct its supply chain in Vancouver and select long-term, reliable suppliers with extreme caution. Advertising is of great importance as well. As for prices, it is obviously not feasible for Shake Shack to sell cheap burgers after all the endeavors on products and
To turn these strengths into opportunities and ultimately into profits, Shake Shack needs to carry on doing what it is best at, which means it must maintain high qualities in both products and services, though that could be a tough task. Because, any drop, even the …show more content…
The deadliest one might be its deformed business model, which manifests as being too labour-intensive, because of its obsession with hospitality (Mourdoukoutas,2015a,para.9). A study showed that it takes 30 employees to run one Shake Shack branch restaurant while Chipotle, one of its primary opponents, only needs 12 to do the same thing(Mourdoukoutas,2015b,para.10). This could lead to less pleasant working environment (because the kitchen has limited space), exorbitant labour-cost and eventually, poor profitability. There are other issues as well, such as price policies, ads, and supply chains.
To tackle these problems, Shake Shack ought to modify its operating system with less employees and treat employees better. A raise on wages would be a goods start. Also, Shake Shack should reconstruct its supply chain in Vancouver and select long-term, reliable suppliers with extreme caution. Advertising is of great importance as well. As for prices, it is obviously not feasible for Shake Shack to sell cheap burgers after all the endeavors on products and