1. Describe Abou Shakra in terms of the value it provides for customers.
2. Do you think Abou Shakra should develop a high-growth strategy? Why or why not?
3. Should Abou Shakra spend more on advertising than is currently expended?
4. Do you think that the legacy of Abou Shakra will continue, with consumer tastes changing and moving toward nontraditional cuisine? Why or why not?
5. Suggest other methods by which Abou Shakra can provide value to its customers.
Abou Shakra is a chain of restaurants in Egypt well known for charcoal cooking-grilled 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 restaurant was 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 restaurant's 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.
When the first Abou Shakra restaurant was established, there was not a wide variety of cuisines featured at restaurants, such as Indian, Chinese, and Italian, which are widely available today. As noted, Abou Shakra's competitors at the time also offered traditional oriental Egyptian food, and due to the lack of other cuisines, he was essentially competing with the whole market. It was thus very challenging to start up a business in this highly competitive market, and it was necessary for Abou Shakra to ensure that he could offer something that would give him an advantage over his competitors. This advantage turned out to be the great customer value offered by Abou Shakra, which was not offered by the majority of his competitors.
The Abou Shakra restaurants have maintained the persistent focus on customer well-being and satisfaction that originally gave them an advantage over their competitors, and this is one of the reasons for their success. The importance that the company places on elegant dishes, prepared with passion, and providing a memorable experience to their guests had endured right from the Abou Shakra's establishment. Since it was established, Abou Shakra restaurants have been following that philosophy, and this is another reason for their success. We will now take a closer look at how Abou Shakra applies this philosophy and offers customer value.
Abou Shakra owns its own factory, which supplies all branches and outlets with their daily requirements of fresh meat and poultry. The meat is of high quality-only the best beef and lamb. Meat is delivered to the factory daily, and a governmental veterinary inspection is performed to ensure that the meat is fresh and of good quality. The factory is equipped with the latest technology to guarantee that the meat is stored at the correct temperature to ensure its freshness.
The fruits and vegetables are also delivered daily and are specially stored to maintain freshness up to the time of serving. Abou Shakra's quality control department ensures that all finished products are of outstanding quality, and oversees practices that prevent any of the ingredients from being contaminated. The company has signed a contract with SGS Egypt to supervise its health, safety, and hygiene practices, ensuring that they are of the highest standard.
Question answered on Jul 22, 2018
Solution~000685492.zip (18.37 KB)
Question answered on Jul 22, 2018