It
is a chain of fast casual burger restaurant based in United States. The name of
the chain is derived from the process that is used while cooking the burgers. A
ball of ground beef is smashed on a grill and sears in the juices. The food
chain restaurant was formed in 2007 by the veteran Tom Ryan. He had been in several fast food chains before including McDonalds, Quiznos and Pizza Hut.
The food chain’s mission statement is
“to be every city’s favorite place for burgers.” Its menu focuses mainly on
chicken sandwiches, burgers, salads and hotdogs. This is supplemented by a wide
variety of customization options and toppings. Each market that it operates in
is served based on the desired regional flavors. In 2009, the restaurant
received $15 million investment originating from Consumer Capital Partners for
expansion purposes. Since inception in 2007, the organization has raised over $20
million in terms of private equity. The company’s annual revenue; based on last
fiscal year is $39.4 million (Schlosser,
2012).
Strengths
Smashburger has several strengths
that are attached to the company. Among the strengths is the ability of the
company to embrace several advertising techniques. Some companies like Five
Guys Burger and Fries do not conduct any form of advertising. Most of the
organization’s advertising is done on local marketing, social media and word of
mouth. Advertisement through word of mouth is enhanced through the quality
products and services offered. Consumers will only tell their friends and
colleagues regarding a certain product only when it is of high quality. Poor
services would lead them to discourage other potential consumers (Schlosser, 2012).
The company made its broadcast debut recently with radio spots. The broadcast
stars a new brand character. The president has said time and again that the
spot is a good opportunity for the company to inform the consumers of who they
are and what makes them special. However, introduction into broadcast
advertising does not mean a pull back from social media advertising.
Another strength factor is that the
company is flexible in expanding and improving the menu. Initially, Smashburger
used to offer breakfast on its menu. The company came to realize that the demand
in this market was not as high as projected earlier. As a result, it was taken
out of the menu. This was a very effective move since its continuous existence
would hinder optimal maximization of the available resources. All the resources
that were being focused on this market can now be used in other areas that can
generate more profits. The company’s menu also stocks a variety of fast food
products. There is something that consumers can choose from. Creating variety
helps in attracting a larger market share. This is because people have
different tastes and preferences, and will feel comfortable once there is
variety.
Smashburger is also showing aspects
of product development and innovation. Tom Ryan has operated in several large
fast food chains. During this period he was at the helm of management. This
means that he has gathered the necessary knowledge and understands the need for
innovation in the business. Innovation and product development has enabled
customer retention for the company. Adjusting to what consumers want acts as a
form of social responsibility to them.
Weaknesses
Despite the strengths, there are
several weaknesses that come along with the company. Among them is the
unhealthy food image being portrayed by the media. A good example is the
“Supersize Me” documentary by Morgan Spurlock. In the documentary he tries to
connect the obesity in the society with fast food chains in the country. He
asserts that the fast food chains provide large amount of calories with minimal
nutrition (Harding, 2011). This acts as a negative publicity to Smashburger
since the consumers’ perception might be distorted. It will have a task of
convincing the target market otherwise.
The
company is also susceptible to losing its customers due to the competition in
the industry. It has to compete with several strong brand names like McDonalds
and Burger King. This might lead the company to lose a good number of customers
to competitors. The industry is also open to new entrants. It also poses a
challenge since no one knows the strategies that might be implemented by the
companies. As a result, the company needs to be cautious at all times. Constant
reviews of the business plan and organization’s strategies should be done. It
might be expensive in some aspects but it ought to be done.
Legal
action is another issue facing the company. Being a fast food restaurant, it is
difficult to avoid this occurrence. During the company’s existence, it has had
to deal with several lawsuits and other legal cases. The society will always
find a way of interfering with the activities taking place. Some people go to
the extent of digging deep so as to come up with minor malfunctions. In the end
there are gains on their side due to the fines charged (Harding, 2011).
High
employee turnover rate is also being experienced in the organization. Despite
the presence of good management, employees are still living the organization. Most
of the employees leave to work for the competitors. Most of them are triggered
by better remuneration and perceived working environment. Some of the employees
tend to get fired since they do not meet the standards of the organization. Others
end up quitting their jobs. Part time employees are the most affected parties
when it comes to this stance. The major reasons are low salaries and high
working pressure.
Forecast
Based on the current stance,
Smashburger has a bright future ahead. The company has opened over 185 fast
casual restaurants during its time of operation. Possibilities of expanding
even further are high since all the chains available at the moment are
operating effectively. The fast food chain is expanding to the Middle East and
Canada. This will create a favorable market for the company. Middle East is
very favorable based on its location. Unlike Canada and USA, the market is not
yet saturated. Venturing at this moment presents a favorable opportunity to
capture a huge market share (Harding, 2011). In 2013, the company has plans of
opening between 60 and 80 new restaurants. However, the locations are not yet
outlined.
Another success factor comes in
based on the nature of the market. Current social trends are decoying people
much time at home. This makes it difficult for people to prepare food at home. Fast
food restaurants end up being the only alternative. It is an indication that
the industry will continue growing since more people are embracing it due to
their schedules.
Work Cited
Harding, Julia . Franchise Times. Chicago: Restaurant
Foinance Corporatin, 2011. Print.
Schlosser, Eric. Fast food nation:
the dark side of the all-American meal. Boston: Mariner Books/Houghton Mifflin Harcourt, 2012. Print.
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