Hamburger Plus: A Case Analysis

Abstract

Due to Hamburger Plus’ global operations, it is planning to spend $1.5 billion over the next 5 years to make its operations digitally mastered through a system called Creative. Rapid decline in sales and numerous customer complaints from one branch to another have prompted this move. Creative is an ambitious multi-million dollar project that would allow Hamburger Plus management to monitor and actively see the physical count of the products produced at any of its stores at any time of the day. Additionally, the management has the ability to verify whether customers are receiving service at their preferred time. It is believed that Creative would bring Hamburger Plus back to what it is known for: the fastest, most consistent service in the industry. Despite its very promising outcomes, there are members of the management team who are not in favor of Creative primarily because of its cost, which would mean a 200% reduction in stockholder’s shares plus closing down at least 300 of its outlets within the next 5 years. These conditions are needed before Creative can do its work and for the company to recoup its investments. The majority of stockholders believe that the upcoming technology is not the cause of customers being sent away during lunch break but because of the sluggish customer service provided by the service crew. A member pointed out that the faltering customer service is due to the general slowdown in cooking burgers. It is also added that customers are so irritated by the long lines and long periods of waiting time before burgers are served. One stockholder said that Hamburger Plus hasn’t introduced another hit product like burger patty strips since 1985. Despite the objections, the CEO is still very optimistic about investing in Creative. He believes that it would give executives the opportunity to monitor operations and ensure product consistency and service that meets customer satisfaction.