BPL 5100H Lecture Notes - Lecture 21: Shake Shack, Switching Barriers, Cost Leadership
19 Oct 2018
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To provide local customers with a quality meal at a fair price through a quick and convenient service delivery. To deliver this service consistently, providing an all-around enjoyable experience for the whole family. To inspire employees and franchisees to put the smile into the. Require economies of scale and strong brand. Recent ones are shake shack/ 5 guys. Several players and undifferentiated products (b-k, wendy"s) Plenty of food suppliers but quality of international ones uncertain (eg, chinese meat suppliers) Soda producers need partnership, franchisees may not own property. Gourmet food, home cooking, easy-to-cook meals, healthier options (examples: subway, chipotle) Cost leadership: keeping costs low to offer prices below those of competitors, and thereby appealing to price-sensitive customers. Allows firm to generate profits even when rivalry and buyer power are high. Through a core competency focused on efficiency. Low-wage employees but effectively trained to standardize offerings. Preferences for more exotic/ healthier foods, expectations for social responsibility.
