Christian Korwan Consulting
Case study: SKIU’s Romania
The starting point is a fast food shop in the city of Bucharest.
The main attraction is the shawarma, which is like the kebabsold in Spain and other countries. It is a tableless shop with only take-away service. The issue about this business is the low profit margin.
Despite having created an additional home-cooked food service to provide a solution to the offices and businesses nearby, the cost of the whole operation is still too high in relation to the profit obtained.
The owner has considered to tighten the sale price,but itis really not possibleas that this is a product already very cheap, rooted in Romanian customs.
The shop has also a lot of competition nearby, especially from a very closeshop that actually sells at incredibly low prices.
Customers who already know me are aware that I am totally anti low costsales sincethere isalways someone who sells cheaper and is more affordable than you. So sooner or later, you’ll have to reduce the quality of food, ingredients, staff service, in order to cope with a situation of lower profit.
After undertaking a feasibility study, my proposal is to radically change the concept.
Keeping the business with the same product makes it impossible to increase prices, which is essential to be more profitable.
So my proposal is to introduce a new product or concept of food which is comfortable to take away and tasty at the same time;mainly, a suitable product for a systematized preparation and marketing.
After analyzing the competition and consumption habits of the area, I’ve found a very interesting option: skewers.
The skewers are cooked on a grill; this can be done during the morning and stored safely without any problem. Therefore, the entire preparation and cooking process can be systematized.
In addition, it is a product that can be eaten while walking, sitting in a park, without cutlery. And, with no sauces on it, there is no problem of staining.
We chose the “SKIU’s” trade name because of its pronunciation in English, and besides, it is a short name and easy to remember.
As a Fast Food – Take Away business, the preparation, cooking and ordering should be very simple processes.
We created 10 different recipes for pork, beef and chicken skewers; we gave each recipe the name of a country, so each recipe could be a reference to each country. In this way, customers simply have to ask, e.g., 2 from Spain, 1 from Italy, 2 from China, etc., being able to associate the name of the country with a traditional taste of their cuisine.
And in this way, the appreciation of flavors simplifies the ordering process.
In the kitchen, for the purpose of systematization, I think all recipes should be based on marinades. All meats are prepared the day before in marinades in order to absorb overnight all their properties. The process of preparation of slicing, placement on skewers, marinade and storage can be perfectly systematized.
In order to validate the idea, first of all we organized a tasting with different recipes in a summer swimming pool restaurant. It was offered free of charge to the regular attendees of the restaurant. The result was amazing, customers were delighted with the flavors, variety and ease of eating.
For a second validation, we considered the organization of a private event in a nearby establishment. We chose a cafeteria(not from the competition) with an outdoor space where a barbecue could take place. In addition, this event was used for a social media campaign, and 50 followers from different networks were invited to the private event to taste all the recipes. At the same time,they could enjoy live music, participate in contests and receive gifts related to the business re-opening under the SKIU’s brand.
In this way we managed to validate recipes with real followers interested in the brand, as well as multimedia content for the following social network campaigns, and, not to mention the media impact on the local press through various Romanian influencers from the world of fashion, nightlife, gastronomy and business.
Through social media campaigns, which I also share with my own contacts, there are several highly interested people in the SKIU’s brand and the take away gastronomy concept.
One of the essential features proposed for the business is that there is no need of large spaces for marketing. So, in which way could be possible the presence of several independent shops all over the city? We plan to create a central kitchen which couldsupply daily to the other locations.
I even consider using only delivery services as a way of distributing our food, and all the hired employees would only be engaged in cooking and processing, not needing physical delivery points. This sparesthe rental of second and third line premises.
Due to my determination to systematize all the processes that would result in a suitable gastronomic product, the possibility of licensing or franchising the SKIU’s brand has been opened, not only in Romania but in several European countries, in view of the real interest of several investors who have been captivated by the approach.
As you can see, we started from a very localized idea of a single establishment in a city with a very typical, common and cheap meal, to develop in less than a month a completely new concept in a gastronomic product previously not explored. We used an approach based on delivery, orders by mobile app and therefore, we created a trend in the takeaway market, with incredible business opportunities for both the brand itself and future franchise investors.
In no way, the case of SKIU’s Romania can be taken or serve as a guide for its application in other companies or business plans. Each project must be prepared separately and its evaluation include several aspects that for contractual reasons are not mentioned here. Christian Korwan Consulting and / or its associates are not directly and / or indirectly responsible for the use that this information may be given.