Introduction

Now a day’s fast-food chain shop is growing day by day. People have become a foodie
and they demand delicious and innovative tasty food. Even people especially teenage,
university students, Business people and family go outside once in a week for food and
experience or hunting new delicious food items. In this presentation, we pick one
restaurant which is famous day by day and their growth is faster day by day. All over
people are having their food and demand increase firstly. The restaurant's name is Mr.
Burger. Their journey began from 2015, in 2015 they started with a small food cart in
Khilgaon and their recipe was Burger. They mainly focus on Burger, slowly they add
some chicken items, drinks and so on. But always they are famous for only Burger.

In 2016 they rent a shop which is small from the food cart to shop a journey to make
their burger more freshly and hygienic place. This shop is also a take way shop .people
can order and take their food; there is no space for sitting.

Day by day Mr. Burger doing their best and became popular with their lots of delicious
burgers. For customer demand, they rent another shop which is situated in Khilgaon
where people can sit, gossip and take their food. For a high demand for Burger of
customers, Mr. Burger opens their 3rd shop in Dhanmondi and 4th shop in Khilgaon.
They select a big space for customer’s entertainment.

05 friends were started their journey and now they have successfully implemented their
ideas with tremendous portfolio and customer satisfaction.

Page | 1
 Products
With lots of delicious burger items, they started their journey. They added value day by
day with mouthwatering Burger recipe. Starting only BDT 140 and highest is BDT 300.
All Burgers are reasonable and affordable for all segments of customers. Other items
are added for sharing and as per demand wise like chicken fry, mushroom and so on.
Bellow menus are given:

Major Competitors

MR Burger competes with those kinds of restaurants which are also very popular for
selling burgers. Name of the major competitors are –

 Take Out
 Chillox
 Burger King
 Burger Queen

All these restaurants have own recipes for making their burger more distinctive in taste
than other competitors. We tried to compare these competitors in terms of the price of
the burger and brand value.

Page | 2
 Aspects Take Out Burger Burger Chillox
King Queen
Price Higher than Higher than Less than Higher than
MR Burger MR Burger MR Burger MR Burger
Brand Higher than Higher than Less than Higher than
Value MR Burger MR Burger MR Burger MR Burger

Upstream and Downstream of MR. Burger

Upstream:

Upstream refers to material inputs indeed for production. Anything coming into the
company from raw materials to finished products and used in whatever they deliver to
their customers is in the upstream part of the supply chain.

MR Burger collects sauce, mayonnaise, vegetable, cheese from the local market. They
rely on branded shop for beef, chicken, and bun. Bengal Meat serves them beef. Kazi
Farm delivers them chicken and MR Burger collects bun from Cooper’s.

Downstream:

Downstream is the opposite end where products get produced and distributed. MR
Burger serves its customers through the physical store and online shop.

 Physical Store: they have three outlets now and they are going to open a new
store very soon.
 Online Shop: they take orders through the online shop like -Food Panda, Uber
Eats. MR Burger tries to catch new customers through various offers, discounts
through online shops.

Page | 3
 Upstream and Downstream

Key Factors in Ingredients supply

In this part, we are going to discuss the supply source of the key ingredients of Mr.
Burger. Already it is discussed that to run a Burger shop required key ingredients are
Bun, Meat (Chicken/Beef), Vegetable, Cheese, Sauce, Beverage etc.

So the brief discussion on those supply chain are given below:

 Buns are the core ingredient for preparing Burger. Coopers, one of the leading
bakery of the country is the one and only supplier of Mr. Burger’s Burger Bun.
Coopers do this process on a regular basis. Mr. Burger places the whole month’s
order to Coopers and they supply it in the morning by 10 am. Cooper’s delivery
van is used to carry those from Cooper's store to Mr. Burger’s outlet.

 Mr. Burger purchases chicken (Processed Chicken) from Kazi Firms which is
one of the top processed chicken firms of the country. They purchase it twice
every week and eight to ten times a month. For purchasing chicken they send
their office staff to Kazi Firms as per the schedule and collect it. Payment
process followed by on a monthly basis.

Page | 4
  Bengal Meat, another leading meat processing firm is the supplier of Beef to
Mr. Burger. Beef supply cycle is once every week and four to five times a
month. Like Kazi Firm, in this case, Mr. Burger also sends their office staff to
collect Beef from Bengal Meat. Here one key finding is Mr. Burger has more
demand for Chicken Burger than Beef Burger. Their purchasing habits actually
indicate this thing.

 The vegetable is one of the necessary elements of Mr. Burger’s regular use.
They purchase it daily from Khilgaon Taltola Kacha-Bazar. Mr. Burger’s own
staff are assigned to do this task. In the case of buying vegetables, they allocate
budget in every weak to the assigned office staff. While carrying those materials
from Kacha-Bazar they often use local transport (if needed).

 Other things (includes Sauce, Cheese, Mayonnaise, Soft drinks, Water, Tissue
paper, etc.) are purchased once or twice in a month at a large volume. Sauce,
Mayonnaise is purchased from Gulshan DCC Market as those are good and
reliable in quality there.

So the whole ingredients networking is given below:

•Coppers is the supplier

BUN •Purchase on a regular basis
•Kazi Firms is the supplier
Chicken •Twice in week
•Bengal Meat is the supplier
Beef •Purchase once in week and has less demand than Chicken Burger

•Purchase on a regular basis

Vegetable •Local shop/ (Khilgaon Taltola Kachabazar) is the
source
•Includes sauce, mayonnaise, soft drinks etc
Other items •Those are purchased once or twice in every month

Page | 5
 Process of Ingredients Collection

Mr. Burger operates its activities of ingredients supplying by focusing on Store-1 which
situates in Khilgaon. It is already mentioned that they have three stores in the Khilgaon
area and store-1 is considered as the primary hub. All the required materials initially
come to their Khilgaon outlet (Store-1) and then distributed to other outlets. The main
reason behind it is the location of Store-1. Store-1 locates in the convenient location of
Khilgaon from where it is easier to move to the other three stores. Store-2 & Store-3
don’t have to bother about payment issues or inventory issues. They just receive their
required products/ingredients as per demand and then use those to prepare foods

Process Map of Ingredients Collection

This chart is all about the Khilgaon outlet and it’s operating process of ingredients
collection and distribution. In the case of their Dhanmondi outlet, there is no use of
step-3 since all the ingredients come directly to that specific outlet and used to prepare
products.

One of the main reasons behind Khilgaon outlet’s current ingredients receiving and
distributing procedure is cost saving. If the specific vendor (e.g: Coopers for Bun)
delivers their products separately in three different stores then the cost would become
higher.

Page | 6
 Process of Order and Delivery
Mr. Burger has 03 shops in Khilgaon and 01 shops in Dhanmondi, all the shops have
off-line sales service but off-line sales service provided from one shop of Khilgaon and
the region near the Dhanmondi is covered from the Dhanmondi branch. Customers
come to their shop and order their food at the counter from there the food processed
and delivered to the customer for off-line service Delivery man order into their counter
and food processed and handover to the delivery man from the same counter and they
take the food at customer’s place as customer location. In Khilgaon and Dhanmondi
they maintain two process lines on for Off-line customers and another process line is
for On-line customers so that no one has to wait for others. The waiting time is generally
for 10 minutes to serve each customer but it will vary from 10 to 20 minutes based on
the order size.

Process Map of Order and Delivery

Revenue and Cost

Mr. Burger maintains an ERP software from where they extract the data of their daily
sales of each item and input it into an Excel Sheet. In the Excel sheet the vertical horizon
the product names are included and in horizontal horizon, the dates are included they
input the number of sales each day for individual item and in another column, they
multiply the number of order with the unit price of each product so they can find out
the number of total sales in term of quantity as well as price. So they find out each day
sales and at the end of the month, they get the total revenue for the month from which
they subtract the cost so that they can find out the revenue. The daily sales data will
help them to forecast for the next month. The cost is calculated manually and for that,
Page | 7
they maintain another excel sheet wherein the vertical horizon the name of the expenses
are included and in the horizontal horizon the daily expenses are included. The daily
expenses are input as a daily basis where are the ingredients that are purchased after
several days gap those are average by number of days such as Chicken are purchased
05 times in a month and in per purchasing time they have bought BDT1500 of chicken
so 05 will multiply by BDT1500 and divide it by number of days in a month. The fixed
cost such as Shop rent and utility bills are divided by the number of days. They can find
out per unit cost by dividing the total cost for a day divided by the number of total sales
in a day and per-unit cost. We have included the 1st seven days calculation of Revenue
and Cost for the month of August 2019 for one of their shops.

Revenue Calculation

Expense Calculation

Page | 8
Problems in Calculation:

The revenue calculation is well calculated because they maintain an ERP system so
whatever data they get is accurate but the problem lies in Cost calculation because the
calculation is maintained manually and most of the data input manually and because of
that proper forecasting may not be possible for them. For example, all the product do
not need the same ingredients but because of their calculation, the cost for per product
is not accurate enough if they maintain a separate ERP system for their cost then it will
be beneficiary for them because they can come up with the product that helps to
generate more profit for them. In current calculation suppose one product sales at
BDT250 and the cost of making that product is BDT120 but if they maintain an ERP
system for their expenses then the cost of that product may vary. It may be less than
BDT120 or more than 120. So proper costing will help to forecast in a better way and
they forecast which product generates more profit than another product.

Another problem found that when we try to compare the on the shop and off the shop
sales because at the time of the sale they have to incur a commission but they have not
included it in their expense calculation they just find the total cost of commission for
the month and deduct it after deducting total cost from total revenue. We have tried to
compare which process generates more profit to them on the shop or of the shop sale
but we are unable to do that because they have not told us the commission rate against
per offline sale.

Page | 9
 Findings and Recommendations

The market is very competitive and there must be a strategic decision to take by Mr.
Burger to survive, so there are a lot of things that they should develop.

First of all, they need to position themselves in the market whether they go for
differentiation or they focus on lower prices. Because if we see the appearance of their
competitors in the market then we can find that some focus on quality products and
some focus on lower price burgers by providing a lot of offers to penetrate the market.
So Mr. Burger should identify what will be the best option to select Differentiation or
lower price or do something so that they can provide a quality product at the same time
lowering down the price so they can create a new strategic fit and new target market.

Second thing is that they should change according to their strategy they will select a
supplier for them. According to their interview, they are heavily dependent on their
supplier for their main ingredients such as chicken, beef and bun but it will be a huge
problem for them to sustain because if the supplier increases the price of ingredients
then they have no other option but increase the price which may effect on their market
share.

Finally, they have to maintain an ERP system for their costing because it will help them
to forecast in more accurately and also help them to find which sale is beneficiary for
them on-line or off-line.

Page | 10