Case scenario A: Burger Queen

Key Ideas for Fast$-$food Industry

According to Businesswire $(2021),$ it claims that $$the global fast food market is expected to reach $$931\mathrm{.}7$ billion by $2027,$ rising at a CAGR of $4\mathrm{.}6\%$ from $2020$ to $2027.$ The global fast food market is poised to witness significant growth during the forecast period, owning to increase in number of fast food restaurants, rise in number of working women, tech$-$savvy ordering options, rise in demand for international cuisines, and change in consumer taste and preference. However, factors such as high setup cost of restaurants and rise in health concerns among the fast food consumers are expected to hamper the growth of this market. Moreover, the rise of fast casual food is forecasted to negatively affect the fast food market growth $($Businesswire$,2020).$

Fast food product is one such convenient food product that can be consumed with ease anywhere, anytime. Hence, the fact that the busy lifestyle being adopted by majority of customers paves way for fast food product to grow in terms of volume sales.

Based on type, Asian$/$Latin American food has been the most preferred fast food among consumers, due to its flavors and ingredients added in the products. Thus, the Asian$/$Latin American food segment was valued at $$155\mathrm{.}5$ billion and is expected to grow with a CAGR of $3\mathrm{.}4\%$ from $2020$ to $2027,$ to reach $$203\mathrm{.}6$ billion by $2027.$ However, the burger$/$sandwich segment is expected to grow at the highest rate during the fast food market forecast period. This is attributed to increase in consumer demand for taste and preferences of the food.

Based on end$-$user, the quick service restaurants segment is dominating in the market, which accounts $42\mathrm{.}59\%$ of the share in the global fast food market in $2019$ and is expected to retain its dominance throughout the forecast period. Quick service restaurants are the most preferred by consumers. With the increasing demand for fresh, tasty, and appealing food at affordable cost, the demand for quick$-$service restaurants is increasing. Moreover, retaining healthy and natural ingredients along with maintaining the taste also boosts the market growth.

On the basis of region, North America was the prominent market in $2019$ and accounted for the maximum share in the global fast food market. This is attributed to the high consumption of fast food in the U$.$S$.,$ Canada, and Mexico. Consumers in the region are attracted by fast food with new flavors, textures, and higher nutrition of fast food and has led to the growth of the market in the region.

Burger Queen

Burger Queen is a new franchise in the Australian fast food industry. It is planning to establish in December $2021.$ The company is also planning to expand its fast food restaurant with more than $1,000$ restaurants in over $20$ countries by the end of next year. It expects to employ more than $100,000$ people worldwide, including employees at company$-$owned stores and corporate office employees.

Vision

To be leading fast food service globally

Mission

To be the best ways offering outstanding quality, service, value, and cleanliness so that we satisfy every customer in everywhere they are.

Value

Better choice of fast$-$food for the family

Business Overview

Burger Queen$$s is planning to be the world$$s leading fast food company in terms of revenues and number of restaurants. The company will offer a uniform menu that includes chicken burgers, fish burgers, beef burgers, fries, chicken nuggets, plain sandwiches, wraps, shakes, ice$-$cream, cupcakes, drinks and other desserts.

To ensure that it connects with its international markets, it also offers locally relevant food menus which will be rotating in each season. For example, it will serve durian ice cream in Thailand, and mango smoothies in India. As a global company with local operations, Burger Queens has to adapt to local food choices.

Business segments

Burger Queen and its competitors such as McDonald and KFC use the franchise model as well as the company$-$operated model. Notably, these are the two most common models in the restaurant industry.

Burger Queen divides its revenues into company$-$operated stores and franchised stores. In the second quarter of $2021,$ Burger Queen earned $33\%$ of its revenues from company$-$owned restaurants. Burger Queen also earned its remaining revenues from franchises. Notably, the contribution of franchise stores to Burger Queen$$s revenues has grown significantly over the last two years.

Business and Operation Plan

The business strategy for the company is to make food fast and available to its customers at a very low competitive price. However, the company aims to gain profit as well by reducing the cost and wastes of the products as well as expanding the business globally.

Burger Queen considers that an operation strategy plays a very important role in achieving organisational goals. The company has employed strategies based on three sections. The first strategy focuses on customer importance a