Operation Management of Mr.
Burger
EAST WEST UNIVERSITY
Group Project on
Operation Management of Mr. Burger
MGT337
Section 1
Fall 2023
Submitted To:
Dr. M. Sayeed Alam
Associate Professor
Department of Business Administration
East West University
Submitted By:
Name ID No.
Anika Sultana Munne 2019-2-10-100
Sharifa Ahmed Mim 2020-1-10-112
Raifa Islam 2020-1-10-356
Zafrin Jahan Nur 2021-1-10-220
Sadiya Afrin 2021-1-10-293
Date of Submission: 21 December 2023
st
Contents
Introduction 4
Business Details 4
Product Details 4
Owner’s Interview details 6
Challenges & Opportunities 8
Challenges 8
Opportunities 8
Forecasting Sales of Burgers and Purchase of Burger Buns 9
New Product Development Process 12
Conclusion 14
Appendix 15
Introduction
Mr. Burger is a well-known food shop. Mr. Burger started his journey on December 1, 2014, in
the Khilgaon area. Mr. Safat Saniat along with four friends started their business from a small
food cart. Initially, the business offered only 4 types of burgers, and 2 types of Sub-sandwich in a
total of 6 food items (Mr. Mini, Mr. Regular, Mr. Moderate, Mr. Perfect, Regular Sub, and
cheesy-Chicks Sub). Now they offer Crafted Burgers (3 variations) and Signature Burgers
(7Variations) and have run their business for around 9 years.
Business Details
Five Friends (Mr. Mashrur Ahmed, Mr. Iffat Hossain Onik, Mr. Saykat Bishash, and Mr. Monir
Shimul) started the small cart food business. Collecting 30 thousand from each person, they
began their journey with one hundred fifty thousand. After arranging money, they started
gathering information from the market (customer, demand, etc.), and tasting different locations
of food. The group of young entrepreneurs started searching for their chef, later they tasted the
food of each chef at Mr. Iffat Hossain Onik's place, and they selected their second candidate as
their chef because of the mouth-watering food taste. Starting days, They Used burger buns from
the famous pastry shop Coopers and today collect buns from Queen Bakery. On the first day,
most of the customers were their family members. Generally, in just 3 to 5 hours they sold all the
burgers. Their business started growing and their competitors also, but their focus was
determined. Maintaining hygiene, quality, and affordable prices, they were quite famous. They
have three food shops in Dhaka, Bangladesh. Locations are: 384/B Khilgaon, Shahid Baki Road,
Taltola, Dhaka, 586/c, Shahid Baki Road, Mailbag Chowdhury Para, Khilgaon, Dhaka, House-
39/1, Road-2, LilyRin Tower (3rd floor), next to Simanto Square, Dhanmondi. Present day they
have two branches (Banasree & Khilgaon).
Product Details
Mr. Burger started their business with 4 types of burgers,2 types of sub-sandwich, and 3 extra
toppings as customer preference. The lowest price of the burger was 60 Taka (Mr. Mini) and the
highest price range was 140 Taka (Mr. Perfect). They did not change frequently on their menu in
from stating they change their menu only 3 to 4 times. Recently they introduced some more
items on their menu (Mr. Savage and Co, Mr., Bacon and Co, Chicken mushroom sub, and
loaded fries) The business also gives importance to customer preference, they have offered 10
additional options (Extra petty, mushrooms, cheese, etc.) and four drinks. The main ingredients
are the buns they collect from Queen Bakery (a present requirement for the bun is around
6000+). As the market is increasing Mr. Burger plans to add to their menu meat box and chicken
try.
Current items with prices:
Items Price range
Burger 60-140
Sandwich 90-110
Extra toppings 15-20
First Product List and price range:
Items Price Range
Burger 140-350
Sandwich 160-170
Chicken Things 160-300
Fries 90
Mushroom 250
Add-ons 15-70
Drinks 15-120
Owner’s Interview details
• What are some of the major problems that you experience in your operation ‘Mr.
Burger'?
Of course. The primary challenge we face is managing the balance between our menu pricing
and the fluctuating market costs. In a highly competitive market like ours, frequent adjustments
to our prices could negatively impact customer loyalty. Another significant issue we deal with is
political instability, particularly strikes, which have a substantial effect on our dine-in sales,
leading us to focus more on our online presence. Additionally, maintaining a consistent and
reliable staff is quite challenging. our daily operations and require constant attention and
management are affected by high staff turnover.
What opportunities do you see for your business?
There is great potential for expansion of the industry based on the dining culture in Dhaka. The
number of people in the city is increasing rapidly and so is their quest for good eating
experience. We are committed to serving our increasing number of customers. Although the
market has become more competitive, we feel confident expanding into new markets because of
this.
How does globalization impact the fast-food industry?
Although globalization impacts, we’ve made Mr. Burger distinctive for the sake of it. We have
chosen to stick to low pricing models while focusing mainly on delivering quality and value for
money for affordable yet quality meals. These ways of functioning assist us in making a
difference not only at a local level but also internationally.
Could you provide an overview of your supply chain?
Certainly. Our supply chain has changed in the course of time. Our burger buns came from
‘Cuppers’, firstly. However, they have turned out to be unstable in terms of delivery and
comparatively expensive. Therefore, now we source them at ‘Queens Bakery’. We have
dedicated suppliers for chicken and other ingredients such as a famous shop in DCC. These are
our partners in the network that keep us supplied with quality goods and services on a constant
basis though we do not have to supervise this function ourselves.
Do you frequently update your menu based on customer demand or preferences?
Though we mainly offer a stipulated base menu, which we feel should be maintained, we are
ready for changes. During the last seven years of our operation, we have only come up with new
menus 3 to 4 times. Moreover, we always maintain our ears to the ground about what our
customers are saying or new market trends, so whenever they give clear indicators that they need
something different, we do not hesitate to start innovating and launching new products in line
with current consumer taste preferences.
• Can you give examples of menu changes over the past year?
We have revamped our menu by adding new dishes such as MR. HANDYMAN, MR. Sausage
and co and Mr. Bacon and co among Burgers in this current year. We have introduced new
varieties such as SMOKED CHICKEN and SAUSAGE AND PEPPERONI while our sandwich
line also included LOADED FRIEG with sausage. Merchant-merchant. The costs of these
alterations barely affected our prices, leaving our affordability intact.
Do you offer customization options for your customers?
Absolutely. Realizing that our clients do not like uniforms, we provide alternative ‘ADD-ONS’
to tailor their meals. In fact, for Mr. Burger, they will even go the extra mile by providing their
customers with additional freebies like toppings and other dietary needs for them to enjoy their
meal.
How do you manage inventory and predict sales, particularly for items like burger
buns?
We strike a delicate balance in our inventory management. We order perishables such as buns in
amounts of about 200 pieces per day so that they remain fresh and minimize wastage. We
carefully measure and vary this quantity daily in response to the variations in daily demands. In
the last six months, there have been some movements towards this demand that we’ve managed
to adjust to effectively.
When launching a new product, what process do you follow?
The process of launching a new product with us is one that has a lot going on in it. First, we
conduct research on demand and trends to assess how suitable it will be for the market. It is then
followed by recipe development, staff training, and a few trials inside to refine the product. The
third step is through a soft launch of a product where we collect customers’ opinions about taste
and price. This is what we do based on the feedback and then officially put out the product for
our menu. This is a very intricate procedure, which takes between two and three months for any
single offering to meet its standards.
Challenges & Opportunities
Challenges
We are aware that the businesses face a variety of operation management problems while their
production process continues. From the interview with the co-owner Mr. Safat Sanat of “Mr.
Burger”, I got to know some of the challenges that he faced doing the business. I will categorize
them according to the types of OM challenges in the following section.
Unstable market price: Based on the interview, I have determined that the price of raw
materials for “Mr. Burger” has increased due to fluctuations in the market. However, they
would therefore be unable to change the menu's price, which presented a significant
obstacle for them.
Competitor: One of Mr. Burger biggest obstacles is they have many competitors.
Because of the unstable market price where raw materials prices are highly increasing,
they can't raise their menu prices that way. They lost the opportunity to raise prices due to
their competitors, which decreased the size of their profit margin.
Political issue: These days, political unrest is happening in a regular basis which has also
turned into a challenge for Mr. Burger. Because people are unable to go out to eat when
there is a protest or any other political unrest. Which reduces their sales.
Share profit in online delivery: For online service the increase of sales is an enjoyable
thing for Mr. Burger but despite a rise in online sales, they must share the profit with
online food delivery services like Food Panda. It’s typically 20%-30%. So, because of
this their profit became less.
Opportunities
In Dhaka, the restaurant industry offers great entertainment. People are looking for delicious
food and an attractive environment. It’s a wonderful opportunity for Mr. Burger to grow their
business by giving an attractive menu and environment. With the increased population they also
can grow their business.
Forecasting Sales of Burgers and Purchase of Burger Buns
Mr. Burger sells a range of food items, such as burgers, sandwiches, chicken items, potato fries,
and cheese nuggets. They also sell beverage items, such as various shakes and drinks. However,
for our group project, we have collected data on the sale of burgers and the purchase of burger
buns.
Mr. Burger Mr. Burger
Purchase of Burger Buns Sales of Burgers
Burger Buns Burgers Sold
Date Date
Purchased (Qty) (Qty)
1-Apr-23 1410 1-Apr-23 1400
8-Apr-23 1380 8-Apr-23 1370
15-Apr-23 1370 15-Apr-23 1360
22-Apr-23 1420 22-Apr-23 1410
29-Apr-23 1390 29-Apr-23 1380
6-May-23 1400 6-May-23 1390
13-May-23 1360 13-May-23 1350
20-May-23 1380 20-May-23 1370
27-May-23 1410 27-May-23 1400
3-Jun-23 1420 3-Jun-23 1410
10-Jun-23 1430 10-Jun-23 1420
17-Jun-23 1410 17-Jun-23 1400
24-Jun-23 1430 24-Jun-23 1420
1-Jul-23 1420 1-Jul-23 1410
8-Jul-23 1410 8-Jul-23 1400
15-Jul-23 1430 15-Jul-23 1420
22-Jul-23 1440 22-Jul-23 1430
29-Jul-23 1440 29-Jul-23 1430
5-Aug-23 1430 5-Aug-23 1420
12-Aug-23 1450 12-Aug-23 1440
19-Aug-23 1440 19-Aug-23 1430
26-Aug-23 1450 26-Aug-23 1440
2-Sep-23 1450 2-Sep-23 1440
9-Sep-23 1470 9-Sep-23 1460
16-Sep-23 1460 16-Sep-23 1450
23-Sep-23 1460 23-Sep-23 1450
30-Sep-23 1470 30-Sep-23 1460
7-Oct-23 1480 7-Oct-23 1470
14-Oct-23 1480 14-Oct-23 1470
21-Oct-23 1470 21-Oct-23 1460
28-Oct-23 1480 28-Oct-23 1470
4-Nov-23 1490 4-Nov-23 1480
11-Nov-23 1490 11-Nov-23 1480
18-Nov-23 1480 18-Nov-23 1470
25-Nov-23 1480 25-Nov-23 1470
2-Dec-23 1490 2-Dec-23 1480
9-Dec-23 1500 9-Dec-23 1490
According to the collected information, Mr. Burger forecasts sales of burgers and purchase of
burger buns using the Quantitative method - Weighted Moving Average (Time Series Model).
Mr. Burger gathers the weekly data of burgers sold and buns purchased, then forecasts by doing a
3-week weighted moving average. They use the weighted moving average as they intend to put
more emphasis on the most recent data and less importance on older data. They calculate the 3-
week Weighted Moving Average with weights of 0.1, 0.3, and 0.6, using 0.6 for the most recent
week:
Mr. Burger Mr. Burger
Purchase of Burger Buns Sales of Burgers
Burger 3-weeks 3-weeks
Buns Weighted Absolute Burgers Weighted Absolute
Date Date
Purchased Moving Error Sold (Qty) Moving Error
(Qty) Average Average
1-Apr-23 1410 1-Apr-23 1400
8-Apr-23 1380 8-Apr-23 1370
15-Apr-23 1370 15-Apr-23 1360
22-Apr-23 1420 1377.00 43.00 22-Apr-23 1410 1367.00 43.00
29-Apr-23 1390 1401.00 11.00 29-Apr-23 1380 1391.00 11.00
6-May-23 1400 1397.00 3.00 6-May-23 1390 1387.00 3.00
13-May-23 1360 1399.00 39.00 13-May-23 1350 1389.00 39.00
20-May-23 1380 1375.00 5.00 20-May-23 1370 1365.00 5.00
27-May-23 1410 1376.00 34.00 27-May-23 1400 1366.00 34.00
3-Jun-23 1420 1396.00 24.00 3-Jun-23 1410 1386.00 24.00
10-Jun-23 1430 1413.00 17.00 10-Jun-23 1420 1403.00 17.00
17-Jun-23 1410 1425.00 15.00 17-Jun-23 1400 1415.00 15.00
24-Jun-23 1430 1417.00 13.00 24-Jun-23 1420 1407.00 13.00
1-Jul-23 1420 1424.00 4.00 1-Jul-23 1410 1414.00 4.00
8-Jul-23 1410 1422.00 12.00 8-Jul-23 1400 1412.00 12.00
15-Jul-23 1430 1415.00 15.00 15-Jul-23 1420 1405.00 15.00
22-Jul-23 1440 1423.00 17.00 22-Jul-23 1430 1413.00 17.00
29-Jul-23 1440 1434.00 6.00 29-Jul-23 1430 1424.00 6.00
5-Aug-23 1430 1439.00 9.00 5-Aug-23 1420 1429.00 9.00
12-Aug-23 1450 1434.00 16.00 12-Aug-23 1440 1424.00 16.00
19-Aug-23 1440 1443.00 3.00 19-Aug-23 1430 1433.00 3.00
26-Aug-23 1450 1442.00 8.00 26-Aug-23 1440 1432.00 8.00
2-Sep-23 1450 1447.00 3.00 2-Sep-23 1440 1437.00 3.00
9-Sep-23 1470 1449.00 21.00 9-Sep-23 1460 1439.00 21.00
16-Sep-23 1460 1462.00 2.00 16-Sep-23 1450 1452.00 2.00
23-Sep-23 1460 1462.00 2.00 23-Sep-23 1450 1452.00 2.00
30-Sep-23 1470 1461.00 9.00 30-Sep-23 1460 1451.00 9.00
7-Oct-23 1480 1466.00 14.00 7-Oct-23 1470 1456.00 14.00
14-Oct-23 1480 1475.00 5.00 14-Oct-23 1470 1465.00 5.00
21-Oct-23 1470 1479.00 9.00 21-Oct-23 1460 1469.00 9.00
28-Oct-23 1480 1474.00 6.00 28-Oct-23 1470 1464.00 6.00
4-Nov-23 1490 1477.00 13.00 4-Nov-23 1480 1467.00 13.00
11-Nov-23 1490 1485.00 5.00 11-Nov-23 1480 1475.00 5.00
18-Nov-23 1480 1489.00 9.00 18-Nov-23 1470 1479.00 9.00
25-Nov-23 1480 1484.00 4.00 25-Nov-23 1470 1474.00 4.00
2-Dec-23 1490 1481.00 9.00 2-Dec-23 1480 1471.00 9.00
9-Dec-23 1500 1486.00 14.00 9-Dec-23 1490 1476.00 14.00
Total 419.00 Total 419.00
MAD 12.32 MAD 12.32
Mr. Burger simultaneously forecasts the sale of burgers and the purchase of burger buns so that
they can meet the demand of their customers at any time. They also use mean absolute deviation
(MAD), as it helps in determining the method with the lowest error for accuracy in forecasting.
New Product Development Process
Meatbox and chicken fries are available at every restaurant nowadays. Lots of restaurants will
increase sales by adding these two items to their menus. Mr. Burger also wants to add meatbox
and chicken fry to their menu so that they can grab the market. So, the process of new product
development is given below:
No Activity Assigned
Letter
1 Determine The need of the new Product A
2 Check material and cost of the products B
3 Prepare The recipe C
4 Onboard the kitchen staff D
5 Do In-house trial E
6 Fixed the product price F
7 Onboard all staff about the product G
8 Soft launching for piloting the product H
9 Collect feedback from staff on price and taste I
10 Incorporate feedback and tweak the process for final lunching J
11 Include in the menu K
12 Final lunching L
Activity Predecessor
A None
B None
C A, B
D C
E D
F E
G F
H G
I H
J H
K I, J
L K
The activity diagram follows:
Activity Diagram
Conclusion
We have considered Mr. Burger for the assignment and tried to derive the operation management
challenges, forecasting method, and new product development process. They want to add meat
box and chicken fry to their menu. The OM challenges they face are unstable market price,
competitor, political and mass customization. Unstable market price affects a lot in the business.
Because of political issues less customers are visiting their restaurant. So, their sales dropped.
We tried to provide all the accessible information. Mr. Burger does their forecasting on a weekly
basis. We took one product to show their forecasting method. Besides we took their weekly sale
burger buns so that we can compare how well they are doing. Their product development
process is shown in the report as well. We tried to provide the process they followed to launch a
new product.
Appendix
Owners Interview at ‘Daekho’: https://youtube.com/watch?v=KjTYAJJCshc&feature=shared
Owners Facebook Profile: https://www.facebook.com/profile.php?id=100075248194906&mibextid=ZbWKwL
Company Facebook page: https://www.facebook.com/mrburger.bd?mibextid=ZbWKwL
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Available at
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