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Case Study:
Abou Shakra Restaurant: Creating Customer
Value The Old-Fashioned Way
Abou Shakra is a chain of restaurants in Egypt well known for charcoal cookinggrilled meat, kebabs, and
kofta. In 1947 Ahmed Abou Shakra opened his first Abou Shakra restaurant in El Kasr El Einy, a famous central
district in Cairo. The first restaurantwas not in a consumer-attractive neighborhood, but that did not stop Abou
Shakra, who believed that offering healthy, tasty, and well- marinated food was more important than location in
attracting customers and having them return time and again if they received a good meal, the location of the
restaurant would not have much bearing on their future dining decisions. Initially the restaurants menu was very
simple; it mainly consisted of basic traditional Egyptian dishes, which was the standard menu offered in similar
establishments at the time. Abou Shakra decided to keep his menu simple and traditional to avoid the risks
associated with offering unfamiliar dishes to consumers. As a result, he focused on providing well-known
traditional dishes of exceptional quality.
wholly master the dishes offered. This has encouraged customer loyalty, as customers often choose their favorite
dishes for which they have come especially for. This has led to Abou Shakra being one of the most popular
places for oriental food in Egypt. Keeping the menu simple also limits the costs of purchasing different
ingredients from several suppliers. If this was not the case, the recruitment of more managers would be required
to contact the suppliers and follow up on the orders. There would also be more supervisors needed to ensure that
the delivery and storage processes take place smoothly and that each outlet receives its supplies on time. In
addition, more chefs who are specialized in the new dishes added to the menu would be necessary as well. Abou
Shakras managers pay attention to every small detail; they ensure that each restaurant is spotless and that the
kitchen is held to the highest cleanliness standards. All utensils and cutlery go through a sterilization process to
ensure their sanitation and safety. The tables are wiped with a special detergent so that customers feel they are
eating in a hygienic environment.
International Expansion
Abou Shakras solid customer base is not only due to the quality of the food and the service offered, but also to
its slow-growth expansion strategy. Abou Shakra restaurants cannot be found on every corner; after 65 years,
only 12 outlets are operating throughout Egypt. Abou Shakra decided to stay small and focus on having a few
outlets that provide outstanding service rather than have many outlets with average service. A new outlet is only
opened when the required employees have been trained and are prepared to offer the outstanding service that is
associated with Abou Shakra. It took the company 56 years to open its first branch outside Cairo, which debuted
in Alexandria in 2003. The popularity of Abou Shakra has extended far beyond Egypt, with the company
receiving many requests to open international branches from customers living abroad who had tasted Abou
Shakra while on holiday. The opening of a branch in Saudi Arabia in 2005 and another in Kuwait in 2007 are
great milestones in the history of Abou Shakra. This expansion was not an easy step for the company, and a
great deal of research was undertaken beforehand to find the correct locations for the restaurants. First, Abou
Shakra needed to find suppliers who could deliver fresh ingredients on a daily basis; this was an important factor,
because for Abou Shakra to succeed, it had to be ensured that the quality of food provided in any new outlets
would equal that of the Egyptian branches. Employees also needed to be recruited and trained in the same
manner as the employees in Egypt, to make sure that they provide their customers with the same outstanding
service. Along with other aspects of its simple but focused strategy, Abou Shakra does not spend a great deal on
advertising. Only a small proportion of its budget is set aside for advertising in newspapers and on television, as
the company relies heavily on word-of-mouth recommendations between customers and their friends and
families. Abou Shakra believes that the main objective is to take care of customers, and that to provide them with
high-quality food and service is better than spending money on advertising, as satisfied customers will be the
best advertising tool. They will tell their friends and family about their positive experiences at Abou Shakra, and
consumers are more likely to follow the advice of people close to them than promotional ads. This is also a
strategy the company uses to reduce expenses, as instead of spending a large amount of money on advertising,
which may not generate profitable returns, that money is instead spent on increasing the quality of the food and
service provided. Many have questioned whether or not Abou Shakras 65-year legacy can be sustained. Its
restaurants are run by co-founders and owners Ahmed and Hussein Abou Shakra, who have drawn up an
efficient blueprint for all of their employees to follow. They believe that if desirable employees are recruited and
trained correctly
and provided with the appropriate working environment, then the success of the business is inevitable. Ahmed
Abou Shakra, the companys chairman, played a critical role in the formation of the strategy that the company
would follow. He detailed the long- and short-term goals in a manner that is easy for all involved to comprehend.
The daily operations are organized and controlled by him, and he has developed an efficient system to ensure that
managers report to him. This system was developed when the business began to grow, as one person could not
manage the daily operations of every restaurant efficiently. Hussein Abou Shakra is the vice chairman of the
company, and he ensures that the financial goals and objectives of the company are being met. He supervises the
preparation of the financial statements and the budgets of the company. In the same manner as the chairman, he
has set up a structure by which all the finance managers report to him with daily updates. The legacy of Abou
Shakra is expected to continue with or without its founders. This is because Abou Shakra has become a
corporation that was established with strategies and objectives that, if managed correctly, will lead to a
successful business. This business legacy is much bigger than its founders, and so long as the business objectives
are being met and the customers continue to be placed first, it is expected to last.