Paper Example on Abyrs Food: Delivering Delicious Roast Beef Since 1964

Paper Type:  Essay
Pages:  7
Wordcount:  1735 Words
Date:  2023-03-02

Operational Overview of the Segment (How It Operates)

Abyrs food restaurant specializes in offering slowly roasted and freshly sliced roast beef. The restaurant was founded in 1964. The first food restaurant was founded in Boardman, Ohio. Currently, the restaurant has more than 3000 outlets in the country and all over the world. The restaurant was founded by Leroy Farrel, who is the head of business and the co-founder, Forest, who passed away in 2008. The restaurant was started through a market opportunity for a restaurant that serves fast food. Most of the fast-food restaurants did not help anything other than hamburger, the two brothers then believed in a market opportunity where the traditional meal would be served as fast food. The two brothers, who were the co-founders of the restaurant, developed an exceptional menu. In their menu, the kinds of food they serve include; beef and cheddar, curly fries, and Jamocha shakes. Apart from roast beef, they also offer deli-style sandwiches. The Deli-style sandwiches are called "Market Fresh Sandwiches." The market-fresh menu also includes Roast Turkey, Bacon, and Five start club harvested with white bread, which only lasted for a limited edition after its introduction.

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In terms of management and rank, Abyrs restaurant principal shareholders are the Roark Capital group. Roark Capital Group bought 81.5 % of the shares of the company from the brothers in 2011 (Gregorash, 2016). The rest is still owned by the brothers, even though one passed away. The brothers started a company named Wendy's company. Wendy's company owns the rest of the 18.5% shares (Gregorash, 2016). The restaurant currently operates in 48 states in the United States. The only countries that don't have an outlet for the restaurant are Vermont and Rhode Islands. In 2019, the total outlets that the restaurant had were 3647. The managers have maintained that they are always targeting an expansion of 50 outlets every year. A general manager heads each of the state's restaurants. The general manager, most of them who are chefs, are answerable to the head of the business. They, however, lead a team of more than twenty people in the state who serve people who need services from the restaurant. The five countries which are not the United States of America are also headed by a general manager who must be a qualified chef. The five countries include Egypt, Canada, Turkey, United Arab Emirates, and Qatar.

Apart from the style of management, which makes the restaurant unique and the type of food, the restaurant also prides itself on having a talent of innovative employees. The employees of Abyrs restaurant are creative with space and cuisine. With the innovative use of space, they manage to put up a modern decor on each of the restaurants. The new space location resembles a perfect fast-casual restaurant. The restaurant boasts of a new feature found in the ability to peek into the food prep area while watching from the counter. Most customers are excited about this formation, seeing the food prep area increases their appetite. The restaurant has also introduced a new set of lighting and seating arrangement that is different from the traditional beige. Most customers love the new look of the restaurant. The company refers to the unique design of re-modeling, "inspire," and it has worked for them exceptionally well. The company runs several television advertisements on many mainstream media. Most of which feature the restaurant spoke person Benjamin who portrays a variety of options at the restaurant.

Major Players Within the Segment (i.e., Dominant Companies and Concepts)

Abyrs restaurant is one of the fast-food restaurants with a unique menu. However, it faces stiff competition from other restaurants of the same type who have the same concepts. Most fast-food restaurants are still performing quite well despite challenges that led to a drop in prizes. The addition and popularity of restaurants in the United States and surrounding countries have made the restaurant business very competitive. The acquisition and reputation of the industry border well for the country in terms of revenues, but it economically hurts the individual restaurant. The heavy competition in the restaurant industry has forced some fast-food restaurant operators to concentrate on lowering the price of their meals. The emphasized low prices are a battle to attract customers. Other styles and concepts that the fast-food restaurants have tried to use include; customer promotions, trying out new consumer cuisines, conducting a lot of advertisements on mainstream media, and finally endorsing further use of technology. Modern use of technology involves the method of master card payment, online ordering of fast food, development of restaurant apps, and involvement of consumer feedback programs through an electronic portal and social media platforms.

In the United States, the fast-food restaurant is generating an average total revenue of $273 billion annually (Walker, 2017). The figures translate to annual growth of 4.1%between the years 2014 to date. The number of fast-food restaurants and outlets has risen to 286 967 within the country alone (Gregorash, 2016). The industry employs 4,608,039 American employees.

The major contributors to this figure who are a severe competition threat to Abyrs restaurant include; McDonald's Corporation. Mcdonald's corporation is the largest fast-food restaurant chain in the world. The food restaurant contains more than 37000 outlets and exists in more than 115 countries. McDonald's penetrates every market with ease, having stayed in the fast-food game for more than ten years now. The restaurant serves a variety of menus, which helps maintain its customer base for the longest time possible. The company, whose main menu contains hamburgers, originally sold hot dogs. Recently the list of McDonald's restaurants is so vast and unique concerning the different countries that they are found. To prove its operational efficiency, the restaurants operate on a yearly financial budget of about $500 million.

Another competitor of the Abyrs restaurant is Yum brands. Yum brands are known for their quickest way of serving customers. It is the largest fast serving restaurant company in the world. The restaurant owns more than 45000 restaurants across 125 countries around the globe. The restaurant is known for its unique franchise chains that serve customers in a uniquely quick way. The restaurant largely dominates the American middle-class market. The American middle class that the restaurant mostly relates to is primarily growing, making it well-positioned to conduct business within the area. The Yum brand poses a threat to the Abyrs restaurant in two ways; it claims the future stake for the middle class and its unique way of service is also a way of ensuring that they retain their customers for a very long period of time.

Current Operational Issues or Challenges Within the Segment

Abyrs restaurant is faced with different operational problems. The fast-food company has grappled with issues like consumer preferences shifting, unhealthy foods, and saturated foodservice landscape. These problems, amongst others, limit the profits of the company while keeping the prices low. Below is an explanation of how the cause a challenge to the fast-growing restaurant.

Firstly, in recent times, the health department has been rigorous in fast food restaurants on a matter regarding public health (Gregorash, 2016). Restaurants with fast foods have been asked to factor in health expenses. The public health care department of the United States has asked restaurants to think about calories and other factors regarding the condition of the customers that they sell to. Such a push by the United States government has made fast-food restaurants to limit their menu to food that don't jeopardize the health of the public. Reducing the list is a challenge to the restaurant since it affects profits by selectively allowing customers.

Another challenger is consumer preference, which always shifts. It has become challenging to become familiar with the market. The Abyrs restaurant and its management are having a challenge in periodic conduction research into the current and future trends of what their customers like. There is every need for them trying to step into place and operating within the market trends. However, consumers shift patterns so fast, and keeping up with the pace is a challenge to the restaurant. In totality, it is almost impossible to come up with a comprehensive analysis of the existing trends (Feerasta, 2017). Viability of similar restaurants and the communities they are accepted mainly has become a challenge to Abyrs' fast food restaurant. The managers can slightly no longer predict which group of customers they appeal mostly to than the other rest.

The last challenge that Abyrs fast food restaurant has faced is a saturated foodservice landscape. Foodservice operators have become extremely many that there is nothing unique tied to a restaurant's menu anymore. Most of the menus within the same communities are alike, and there is nothing unique to a restaurant anymore (Lepkowska-White, 2017). While many customers now consider superb cuisine and excellent customer service, which the restaurant offers quite well, there is no unique selling point that Abyrs restaurant can define itself with. Counterfeit menus are all over the place, limiting operations of the restaurant. Even if Abyrs restaurant launches an original idea, something better than great food and service, it will be duplicated in the market in less than two weeks of the initial implementation period. For example, the restaurant introduced the online food App. Customers with the Abyrs restaurant App were at will to order fast food delivered at their convenience with extra pay (Ganapathy, & Mugeshkannan, 2016). The App and the delivery style have since been duplicated and used by every other restaurant in the world. Online technology and social media have made it extremely difficult to have a unique selling point. Lack of a unique selling point remains a challenge to the Abyrs restaurant.

Trends for the Future Within the Operational Segment

The restaurant business is undergoing particular trends that drive the whole restaurant initiative. The current trends that interfere with operations of the restaurant include; the tension between catering for the new millennial, the explosion of technology and increased emphasis on health and well-being as discussed below;

Millennials are those aged between 18 and 34. They are expected to represent 50% of the total population. Most companies have defined their strategies based on the millennial as the primary demographic group. The personality habit and traits of this demographic group of people are believed to make most businesses prosper. The millennial travel a lot, they are also early adopters of technology and are quite spontaneous. The Abyrs restaurant will want to please the millennial with natural cuisine that they can easily relate to (Zabeen, Wei, & Lu, 2016). Satisfying the millennial as a trend in many restaurants has to tak...

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