Introduction
Burger ruler is a favorite brand of a fast food restaurant string that operates globally. Founded in 1954, the burger ruler franchise is continuing to grow from its humble beginnings to a multibillion dollars empire over time and the business enterprise has truly gone beyond the borders f its country of origin and now they have franchise operations all around the globe. However the identity that embodies the brand, famously known as "the king" originated and introduced in 1955 that grew to became an embodiment of the brand itself. Developing various editions for broiled meat fans, the menu of burger king grew and so does its customer basic. Due to the enormous success, the business decided to extend the business and franchises were granted in the year 1959 but the initial concentration still continued to be on the european markets where there is a demand for and similarity with the delicacies that burger king offered however the first franchise restaurant to materialize beyond your US was in Puerto Rico.
Up till the year 1967, the business had already exposed 275 restaurants but further growth required the private owners to cohort with the Pillsbury Company. Currently, the business is a publically bought and sold company with Goldman Sachs Capital Partners, TPG Capital and Bain Capital as its major stockholders. It really is one of the very most popular brands on earth which is difficult to find a country where there is no burger king wall plug, Pakistan is actually one such country. However franchise functions are an extremely risky business for the franchisee, especially regarding a international brand. A variety of factors; both exterior and internal need to be resolved before a franchise can be launched. An evaluation of external and inside factors must be done by means of a prefeasibility review to test the waters before taking the plunge (Kotler, 2008).
Pakistani Market
Having continued to be under the Mughal rule for a long period, Pakistani cuisine includes hot, spicy and wealthy curries that are used with grain or loaf of bread with a whole lot of herbal products (African american, 2002). This makes Pakistani delicacies quite not the same as the American one and for that reason offers an effort to any international franchise considering to enter Pakistan. However it is not different to find famous fast food restaurants in Pakistan and travelers' home suffering because of their local food will haven't any difficulty in finding international restaurant chains in the major metropolitan areas of Pakistan (Singh, Brown, Clammer, Cocks and Mock, 2008). Various names like Pizza hut, McDonalds, KFC, Mr. Cod, Subway etc are home names for Pakistani city dwellers as well as they give you a break from the most common cuisine offered by homes. Relating to reports, the real private consumption growth rate in Pakistan is expected to be much higher that it's GDP by the entire year 2014 and therefore points to the existence of various growth opportunities and international food companies such as Nestle and Unilever are doing extremely well (PRlog, 2010).
Burger King offers a great deal of support because of its franchises and even plays a role in selecting the most appropriate site for the business. The employees are also given an exercise of at the least 70 days in order that they are well equipped and proficient in the company's functions.
External Analysis: PESTLE
Political Factors
Even though Pakistan has had a brief history of politics instability, upheaval throughout its record but the politics factors that are relevant to a fast food business include health and Safety Rules, food labelling guidelines issued by the federal government that may be subject to change with a changing federal government. In Pakistan there are no well described regulations for monitoring medical requirements of restaurants and there exist no labelling requirements as well. This reveals easy functional conditions as well as the chance to define industry criteria of the junk food business in Pakistan.
The security situation in Pakistan is also a question tag because terrorist and irritated mobs have often targeted international restaurant chains in Pakistan and a KFC store in Karachi was demolished twice because of such a predicament (Schlosser and Wilson, 2007).
Economic Factors
Economic considerations that will help in creating the businesses in Pakistan low set up charges for the franchise and the capability to tap into an evergrowing market as the awareness of consumers regarding international brands raises. The added benefit that junk food carry is that consumers view that they are being offered fair value your money can buy they are simply paying. On top of that, the growing middle class consumers in the country who do not want to consume at small local joint parts but do not have the money to spend on a lavish restaurant will be the best target market for burger ruler. Moreover, Pakistani federal offers favourable investment conditions and foreign investors are allowed to keep 100 % of the firm's equity nonetheless they are put through the condition that a maximum of 60 percent60 % of the full total equity or profits can be repatriated (SECP, 1984) however the ever depreciating Pakistani money may be considered a problem. Nevertheless the dual digit inflation remains to be the major risk as this might warrant a rise in prices that the consumers might not be ready to bear.
Social Factors
As the working middle class in the united states is increasing, the lifestyles have become much busier than they were previously which includes made the acceptance of fast food restaurants in the country easier. There continues to be lack of knowing of the concepts of healthy Eating and Obesity among the general population and Pakistani individuals are generally meat addicts which are actually the speciality of burger king. Another added benefit it the homogeneity in preference across the major towns in the united states which will be the mark market. Fast foods are not seen as poor man's food and eating dinner out within an international chain is still seen as a social activity for many families. It is the accepted religious and social norm to take Halaal food only and the consumers expect the restaurants to offer such food.
Technological factors
Significant investment will have to be made in terms of growing the technology that meets the franchise contract requirements. Engagement of technology in food here's relatively new and therefore it may be difficult to develop a supplier bottom part very quickly and the company may have to count on the parent or guardian company. Computer purchasing or till system are relatively new here and for that reason employees will need training to use these systems and will represent a significant cost.
Legal
Restaurants in Pakistan are controlled and documented through the Pakistan Hotels & Restaurants Function of 1976. Regarding to this laws, every restaurant must be listed and the dog owner must attach a license that verifies the medical fitness of the staff from the civil hospital of this area combined with the application. Health, cleanliness and comfort specifications have aloe been defined in this legislation and the power issues the qualification of enrollment and the certificate to operate at the same time though the organization may need to file a separate form so you can get a license (SMEDA, 2009).
In addition to the above mentioned act, there are several other food laws in Pakistan like the Western Pakistan Pure Food Ordinance, 1960 and covers topics that relate to the planning and the sale of foods and violations are punishable by imprisonment and fine. Another legislation is the Cantonments Pure Food Work, 1966 which does apply only in the cantonment areas. Pakistan penal code, 1860 also includes some clauses regarding adulteration of food or drink (Khan and Hafeez, 1999).
Although the regulatory framework is in place, like many other regrettable countries, these laws are not completely implemented and often exploited.
Environmental
Pakistan is found in such a landscape because which the elements generally remains hot during most part of the 12 months and the summers are severe however the northern area of the country still obtains a few good a few months of winter as well. Monsoon is also a normal visitor however, due to lack of basic infrastructure; the weather could cause problems for the consumers as is the recent circumstance of flooding in Pakistan. To help make the consumers comfortable, there is a dependence on proper air-conditioning, home heating and collection of a location that is easily accessible despite harsh climate. The environment safeguard Function of 1997 addresses matters related to the safety, preservation, rehabilitation and improvement of the surroundings, deterrence and control of air pollution and endorsement of ecological development (The Gazette of Pakistan, 1997).
Internal Examination: SWOT
Strengths
A major strength of this enterprise is the international brand name acceptance of Burger king that will assist access many demographic sets of the populace and gain an easier acceptance in the market. Furthermore, the strong financial backing of the business is another major strength as you will see no hitches in setting up the mandatory infrastructure and the international distribution channels of the business will serve as an extra benefits for the franchise. The assembly line style of food preparation of the business enterprise is also very effective while food safety is also given high importance.
Weaknesses
A major weakness of the operation is that Burger King is principally concentrated in the US while there is already founded competition from other junk food bones, both local and international in the country and it can be hard to build up a consumer bottom. It basically depends on its franchisees to run its operations in another country. The major weakness of Burger king is that it provides a very high calorie bad diet so that as the tendency for health awareness increases internationally, it runs the risk of an shrinking consumer basic. Also, burgers and junk food snacks aren't an everyday food for the Pakistani consumer as the traditional local food is quite not the same as what the burger ruler offers. The logo design of the king that makes burger king so recognizable and is also the basis of countless advertising campaigns might not resonate well with the consumers as the neighborhood consumers might not be able to relate with it.
Opportunities
Since there are no burger king retailers working in Pakistan, it is a great opportunity to add the Pakistani consumer to the Ruler. There can be an possibility to take benefit of the experiences of the other junk food restaurants and not make the same mistakes that they does. Furthermore this, there can be an opportunity designed for the customization of the burger king menu to the neighborhood likes so that consumers can admit it with ease which many international chains have done in Pakistan. There may be room for new product development especially in the breakfast time portion in Pakistan which may end up being a competitive advantage for the franchise. Since Pakistan is one of the growing markets, the current economic climate is still producing and therefore there is great potential for individuals who are prepared to make a permanent investment determination.
Threats
The security situation in the country remains the major risk to the franchise operations and makes them easy goals of terrorism and requires huge purchases in security. The business will face strong competition from the pre proven brands especially McDonalds and also from other prepared to prepare options such as K&Ns chicken etc. consumer diet plan are changing undoubtedly all around the globe. Although consumers still consume fast food dishes but this is an infrequent event for almost all of the Pakistani consumers as they are still more dependent on the local or "desi" food as it is fondly referred to.
Concluding Remarks
Pakistan being one of the appearing markets holds huge potentials as well as high returns but offers a considerable level of risk as well. Despite the fact that the marketplace is huge and profitable, other factors like the weak economy, political instability, and security threats and poor infrastructure make it impossible to unveiling operations at an enormous scale. Since junk food is not the neighborhood cuisine, it could be hard to find consumers outside the major places which considerably limit the prospective market. However there are immense opportunities available as well which may be tapped into by using the most appropriate accessibility strategy and creating a strong exit strategy if the necessity arises.
