Figure 1 (Burgerfuel, 2019)
BurgerFuel is a growing global fast food chain of burger in New Zealand. It was launched in 1995 by burger master Chris Mason in Ponsonby New Zealand and in 1997 second store open with first franchisee. The company was started to introduce the not typical gourmet burger because is made from fresh and wholesome ingredients, conveyed in a high energy setting evoked from the pictures of flames, inward ignition and the longing to fuel the fire the human engine. In 2007, BurgerFuel position and added “worldwide” to its name and was listed on stock exchange. With 88 stores in six countries like Australia, Iraq, and United Arab Emirates, plus 54 stores in New Zealand, BurgerFuel is an example of fulfilling the needs of the customers and filling a gap in the market (Burgerfuel, 2019).
BurgerFuel Queen Street is one of the franchise stores. The owner of that store is the Store Manager also. As a franchise, the store should follow standard and procedure of the BurgerFuel Head Office.
BurgerFuel Competitive Positioning
- BurgerFuel market itself as 100 percent pure grass beef and a brand that serves healthier and fresher food option (Burgerfuel, 2019).
- The company is creating a demand in the market for a unique product, this means that BurgerFuel can satisfy the need of the customers which its competitors cannot.
- The company position itself as a cool brand because it does not use pre-mixes to play in the stores. Instead, it uses live radio where live bands also play. This is more entertaining than playing the same recorded music repeatedly (Burgerfuel, 2019).
Figure 2 (Burgerfuel, 2019)
“To provide the ultimate experience in gourmet burgers, incorporating delicious, fresh, natural ingredients, in an atmosphere as charged as the food.”
“Our vision and aspirations have always been big; however, we believe this is the only way to move forward to achieving our goal of being a global gourmet hamburger brand.”
Operation and Human Resources Components
The company has different hiring personalities, they are not like typical robots and corporate zombies. They are looking for a creative person, those who has a little bit of tattoo ink, piercing, long-hair. Burgerfuel employees are a little different and a little crazy (Burgerfuel, 2019).
BurgerFuel is more than the four walls of the store – it’s the sort of the job that can take employees places! With a bit of commitment, people may find their self working at an awesome event, doing work experience at HQ, starring in BurgerVision, climbing into management roles or even working on the other side of the world. The best thing about working in the BurgerFuel is that employees can get a greedy little mitten around some delicious, juicy, wholesome burgers.
BurgerFuel has Bite Club for the employees, it is their super-secret, unofficially official underground society. There are so many exciting aspects of Bite Club, including competitions, giveaways and exclusive staff incentives which will give to the employee’s opportunity to grab awesome BurgerFuel gear and goodies from our brand partners such as PUMA, Sony Playstation, Huffer, ilabb and more. Furthermore, the company use workplace by facebook for easy way of communicating to staff wherein they stay engage, share news, and work together wherever they are.
Market and Competition
BurgerFuel is in the red ocean which means the company is competing in existing market and capturing more of existing demand. As a restaurant that sell burgers it is competing to McDonalds, Burger King, any know burger chain in the market.
External Environment are the outside factors that affect the operation of business (Johns, 2019). In the next section, we will look at the PESTLE analysis which will help in understanding the operation of the organization.
The operations of any company can deeply influence and governed by the political factors or operation and state policies in a region. It can be noted that there is a group of people in New Zealand that protest the consumption of fast food (New Zealand Food Safety, 2019). And BurgerFuel would be no exception to that. Although the offerings of BurgerFuel are different from that its competitors, it still falls under fast food industry.
Every change in economy can affect business (Bush, PESTLE Analysis: Economic Factors Affecting Business, 2016). BurgerFuel are impacted by the changes of taxes, currency rate, inflation rate, policies, government activities, wages, etc.
BurgerFuel market itself with the help of visual and print media. It is also making use of digital media to attract and reach out to the younger consumers. The company also has a very good inventory system in place which allows them the timely supply of raw materials and hence supporting their front-end operations (Burgerfuel, 2019). However, customer always looking for something new to try and innovative technologies is always changing.With this, BurgerFuel should update their technology from time to time. If not, the daily operation of the organization will slow down, and company resources will be left behind.
Figure 3 (BurgerFuel, 2019)
Environment is the most important factors in PESTLE. Fast food chain is one the top user of plastics and non-biodegradable substances. Though,BurgerFuel are using the recyclable and compostable packaging like doofer, burger bags, side cartons, chip cups, and corn starch made aioli punnets to reduce the environment impact, however this is not a guarantee that the company is not using any plastics on the store like plastic packaging of raw food (BurgerFuel, 2019). Additionally, it necessary to the business to know the impact of people awareness of the consumption of red meat. The huge amount of production of red meat creates carbon footprint and most of meat business are destroying the timberland for a new space of ranches. With this, the inevitable increasing number of people are changing to plant-based diets (Bush, 2019)
Quality of workforces is the important internal environment factor of the business. This is also the foundation of the organization to stand out in the market, without right skills, attitude, and proper trainings of the employees this will cause a downside problem of the organization.
In BurgerFuel Queen Street has many instances that the owner of the franchise store is hiring new staff without proper training before going to the production. This situation will affect to the daily operations of the business, the quality of food, and especially to the mission and vision of the company which is to become a global fresh and natural gourmet burger. Therefore, it’s important that the company makes the hiring decision well in advance so that they have enough time to train the staff about standard of the company wants to maintain.
Labor Force Organization
In BurgerFuel like any fast food industry are impossible to have a work life balance, as employees are required to work 365 days per year and they may be rostered on any of the 7 days of the week, i.e. Monday through Sunday. And BurgerFuel employee’s hours per for each week worked are displayed on a weekly roster in The BUN employee website. Additionally, BurgerFuel has two position on staff level the Front of House (FOH) and Back of House (BOH). The FOH duties are getting the order, orders out & runner, chippie area while BOH duties are the chrome grill, and stacker 2 & 3 (BurgerFuel, 2019). However, the company is using the job rotation human resources strategy wherein the employees move from one job to another job. By job rotation the organization benefited, for example, one of the employees call on sick/vacation leave the company can easily replace another staff on that shift. Moreover, it benefited the employees for higher chance of promotion because you already know all the area of the production (Kokemuller, 2019).
BurgerFuel Queen street is one of the franchise stores in New Zealand. The store is usually having 4 employees per shift including the shift manager and in weekend it has 6 employees per shift. The age bracket of employees is not more than 40 plus and most worker of BurgerFuel Queen street is student or part time. Additionally, it has diverse workforce, wherein the store owner hired different nationality. The demographic structure of BurgerFuel Queen street as shown below.
Turnover Rate (%) =
Number of Employees who left during the year
Average number of employees in the position during the year
Turnover ratio = 11/18 = 100 = 61 %
BurgerFuel Queen Street has 16 current employees. In 2018 it has 18 employees and 11 employees left on the company. The turnover ratio of the company is 61% since 2018-19. The employee turnover in the store is usually high due to the work culture. Moreover, There were 2 incidents that two of employees left the company without informing the store owner/store manager, after a week of not showing up she just sent an email that she will not come back to the store (Parvin, 2019).
HR Policies and processes
The company human resources are aware and abide under the employee/employer relationship legislation of New Zealand. On the employee contract, it stated all the Human Resources policies of the organization: Employment Agreements, Hours and Days of Work, Cancellation of Shift, Meal and Rest break, Remuneration, Consent to Deduction, Annual Leave, Sick Leave, Bereavement Leave, Public Holidays, Primary Carer Leave and Extended Leave, Secondary Employement, Conduct, Termination, Suspension, Abandonment, Medical Incapacity, Business Interruption, Redundancy and Restructuring, Confidentiality and Intellectual Property, Health and Safety, and Resolution of Employment Relationship Problems. (see appendices of employee contract)
HR Information system and technology
BurgerFuel has an employee website call the BUN world manager. It has a toolbox of Training, Communication, Operations, and Human Resources. Under category of Human Resources, it has Appraisals, Key Perfarmace Indicator (KPI), and Recruitment. With this website, it easy for the business to track the data information, management, data entry, and communicate information to the employees. Furthermore, it is a tool for open book to the employees about his/her performance.
Recruitment and Selection
Recruitment means identifying that there’s a vacant position that need to be filled. It is a process of attracting a pool of qualified applicants for the specific positions (Rudman, 2010).
BurgerFuel is currently using the soft model human resources management on recruiting new member. Like any other food industry, the nature of business is easy to adapt and flexible work. Furthermore, the franchise owner more prefers to hire a referral from current employees’ rather than any ways of recruitment method. For three reason, first high-quality applicant. Second, less costly to the organization. Third, speed hiring process (Parvin, 2019).
It is a process of systematic way of synthesizing, assessing, analyzing, gathering, and recording information (Rudman, 2010). It comprises the skills, ability, and qualification of the persons needed on the organization. Below is the job analysis of BurgerFuel:
Shift Manager – BurgerFuel – Queen Street
Store Manager/Franchise Owner
Duties and Responsibilities
BurgerFuel Queen Street owner is ensuring to have a smooth relationship with the employees, by making fun and comfortable while in work. Moreover, the owner is in the rooster every weekday not just to save money on labor but to interact and communicate with the staff (Parvin, 2019). If it happened that there’s an issue on employment relationship, BurgerFuel has a complaint management process which is first to discuss the problem with the Store Manager or Franchisee and if the employee is not comfortable talking to those individuals, then they are encouraged to speak to BurgerFuel Head Office Area Manager (BurgerFuel, 2019). However, if the employee doesn’t want to discuss the problem with them, or after the discussion the problem has not been resolved, the company persuade the employee to seek assistance from one or more of the external services such as:
The Ministry of Business: Innovation and Employment (MBIE) (0800 20 90 20)
The Department of Labour
The Employment Relations Authority (BurgerFuel, 2019)
Health & Safety
BurgerFuel has policies, systems and processes in place which demonstrate to its health and safety obligations under the Health and Safety at Work 2015 (Burgerfuel, 2019). The company expect the employees to take reasonable care of their own health and safety as well that of others. They expected to follow any reasonable health and safety instruction and co-operate with any reasonable policy or procedure including those set out in the BurgerFuel Employee Handbook. Moreover, they required their employees to report any hazard, or potential hazard or health and safety concern through the BUN or inform the Shift Manager (BurgerFuel, 2019).
Training and development
A successful business depends on employees who can execute operation and super star service to the customer at every opportunity (Ministry of business, innovation and employment, 2019). BurgerFuel has an audio-visual training system before the actual job. It is used to develop job-specific and skill-based tasks and activities, such as learning a new staff station, new product rollout, or a new administrative task. Furthermore, it is a tool to person’s new knowledge, skills, and abilities that is expected to be applied immediately or shortly after a training session (Parvin, 2019). However, due to high staff turnover and need of worker on the production the owner placed the new staff on the production without undergo the audio-visual training system that will eventually affect the standard and quality of the service.
It is a useful framework for distinguishing and analyzing the strength, weakness, opportunities, and threats in the internal and external factors, which can have an impact to the organization (Rouse, 2013).
Auckland is a diverse and busiest city all along in New Zealand and one franchise stores of BurgerFuel is located in Queen Street, where most of tourist visit in that place. As a diverse city, store owner is hiring employees with different nationality. With than some of the Hofstede’s cultural dimensions are present on the organization. Two of these are Uncertainty Avoidance Index (UAI) and Power Distance Index (PDI).
Burgerfuel Queen Street is following the low PDI and UAI. Having a different nationality, personality, and cultural upbringing employees it will cause organizational challenges. Because not everyone is self-motivated while other employees are needed to give more training, guidance and direction to perform better. For instance, employees from Philippines with a High PDI believe in hierarchy and they acknowledge the status of the leader while employees from New Zealand with Low PDI believe in flatter organization and self-motivated person who always do what they want (Clearly Cultural, n.d.). Using low PDI and UIA in organization, even though the business has an exceptional rule or regulation, but the franchise owner is not strictly imposing the rules to the employees it will not succeed on the culture of the business. Furthermore, employees of BurgerFuel are not following any procedure or rule and they are just leaving the company without prior notice (Parvin, 2019). Therefore, the organization turnover ratio is continuous increasing.
The highest history of turnover rate of BurgerFuel is 61 %. There’s a lot of reason why employees quitting the company. It may be the poor management, lack of trainings and development, failure to give the promises has been made. Thus, the company has need to create a culture of sustainability. To create a brand where employees like to work is a difficult task. Given the fact that fast food industry is very competitive, it is important to the organization to retain employees as the hiring and training costs can be very high.
By recognizing the human resources availability, human resources requirements, and after bridging the gap. BurgerFuel now need to close the gap in order to have a sustainable human resources management.
Human Resources Strategies
From Gap Analysis and SWOT analysis of the company, BurgerFuel should focus on training and development for existing employees. In order to reduce the turnover ratio, the organization should focus on the job training which is coaching.
Coaching is a continuous process in which a leader assesses employee performance and communicates in order to improve that performance (Rudman, 2010). Below is the proposed coaching model for the company.
This model is a process of coaching. First, modeling setting example that others can follow. By showing to the employees how, either by example or by illustration. Second, coaching giving feedback to develop a person’s knowledge, skills and abilities. Third, require expecting the staff to perform the expected behaviors and standards.
Building the foundation for coaching
Communicate job expectation
Provide training on how to do the job
Provide practice and feedback
Since the franchise owner of BurgerFuel Queen Street is also the human resources manager, he/she needs to Connect with the employee and must physically present and express his/her commitment to the employee’s personal growth and development. Moreover, the employer needs to Observe and Assess the employee’s performance. By comparing his/her observations to the expected standards for the task or job. Additionally, Clarify the gap in the staff performance between what is expected and what they did. Finally, explain, train or show How the close the gap between performance and standard.
To achieve success on coaching employer and employee must:
Commit to requiring a change
Have mutual engagement in the process
Recognize that changing to a new behavior takes time
Follow up as needed
Recognize and praise the staff’s efforts to change their behavior
With this recommendation, the human resources of the BurgerFuel will be going to success on improving the employee retention.
In this report, the internal and external factors that impact the business model of BurgerFuel’s operations are successfully analyzed. Using the SWOT analysis and PESTLE analysis has critically identified the factors which can help for human resources action planning. Furthermore, this report suggested human resources management plan from the issue seen in the gap analysis.
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- Parvin, A. (2019, July 26). Personal communication. (S. Deuna, Interviewer)
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