UK-based Leon Restaurants

UK-based Leon Restaurants

Introduction

The UK-based Leon Restaurants has been set up to change the way people perceive the fast-food industry
Health-conscious food items are included in the menu
However, recently it is facing certain strategic issues
The overall impact on the food industry is affecting Leon Restaurants

Identified strategic issues

Over the last year, the customers are not satisfied with the food items served in the restaurant
Customers want meat-centric dishes, and this need is interfering with the mission of Leon Restaurant
There is a decreasing rate of health-conscious people in Scotland
The restaurant is losing customer loyalty because meals are getting delivered in wrong addresses
It is challenging to prepare “healthy” fast food and therefore, the restaurant is facing issues
Rising competition from fast-food chains such as KFC and Mc Donald’s is creating challenges as well.
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Evaluation of the issues and risks

The restaurant delivers food at affordable prices. However, sales growth has slowed down due to rising competition from fast food giants
Customers are losing interest in the menu served by Leon because they have other “high-street” options.
The profit margins of the restaurant have lowered over the last year

Identification of two significant risks

The restaurant is facing issues due to poor management strategies.
It is losing its strong presence in the market due to its inability to re-invent its menu and satisfy customer needs

Differences between Strategic and Operational issues

Operational issues mainly refer to the interruption in the day-to-day functions of the business
Leon’s inventory management has become ineffective
Seasonal staffs are hired, and staffs lack training
The online food delivery services offered by Leon is slow and often delivers food at wrong addresses

Cont.

Focus on strategic solutions

The restaurant should focus on developing its online marketing strategies
Direct interaction with customers is the need of the hour to ensure long-term growth
It can adopt e-mail marketing to build partnerships
The restaurant needs to focus on demographic segmentation and categorise customers based on their wants and needs

Cont.

The restaurant needs to re-invent its brand image and develop a better theme
It is time to offer the best services and deliver food swiftly to the right addresses
Regaining customer trust is the first step to ensure sustainability

Evaluation of the solution using RACE

The RACE framework can be adopted and applied in digital marketing tactics. It will provide strategic solutions to current problems.

Reach– The restaurant should promote its brand name and reach out to customers

Act– Here, the target is the old and new customers and in this stage, the managers should interact with their target customers

Convert- After the interaction session, it is necessary to convert the leads into potential buyers

Engage- At this stage, the focus should be enhancing the long-term relationship with customers

Recommendations to embed the new strategy

The restaurant must try to build partnerships with reputed firms or open new franchises
To regain its legacy, and stimulate sales, the restaurant should focus on convenient services
Facilities such as drive-throughs can be incorporated

Cont.

Their menu should also incorporate fresh ingredients along with meat
They should value the customer’s time and make their life easier by delivering food on time

Conclusion

It can be concluded that the fast-food chain has lost its brand image
Poor management and poor delivery services along with rising competition pose more significant risks
There is a necessity to regain customer loyalty
Strategic solutions have been recommended that should be embedded accurately

References