Bundu Khan Restaurant is a famous Pakistani restaurant chain that started in 1991 in Lahore. It has since expanded to multiple cities and offers both Pakistani cuisine and bakery items. A SWOT analysis identifies the chain's strengths as its goodwill, financial position, and diversified foods. Weaknesses include a lack of skilled staff and need for more advertising. Opportunities exist in opening new outlets, promoting hygienic foods, and expanding markets. Threats include inflation, changing eating habits, the COVID-19 pandemic, and political instability. A PESTEL analysis also considers environmental, social, technological, economic, legal and political factors impacting the business.
2. Bundu Khan Restaurant
As we were given a task or assignment by your kind authority during our last class of Strategic
Management and we were directed and ordered to conduct SWOT analysis of a well-known
company in which we will discuss internal and external environment that the company may
have. So for this purpose, I have chosen a famous chain of Restaurant Bundu Khan Restaurant
that is working successfully in Lahore for quite a long time.
The restaurant started their operations in the year of 1991 as a sole proprietorship at the center of
the city Mall Road Lahore. At the beginning of their operations they targeted the middle-class
customers but with the passage of time the management of the restaurant opened new outlets in
different areas of Lahore, Multan and Karachi, etc.
The mission and objective of Bundu Khan Restaurant is to provide good quality of food and
exceptional environment at their outlets where people not only enjoy delicious foods but also
make their events memorable. The dedicated and hard working management has successfully run
the operations of the restaurants so now today Bundu Khan has also entered into the Bakery
items markets as well.
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3. Internal Environment of the organization
Strengths of Bundu Khan Bakers and Restaurant
Goodwill:
As the Bundu Khan Restaurant is successfully running its operations in different cities and has
earned goodwill in the market by providing good quality and hygienic food, neat and clean
environment for dining so it is a strength for the restaurant.
Strong Financial Position:
The Bundu Khan Restaurant started its operation as a sole proprietorship or we can say as a
family business so whenever the business needs capital, they don’t look or wait for any financial
institutions like banks etc.
Diversified Foods:
One of the main strength of the Bundu Khan Restaurant is its diversified food range. Although
the restaurant is known and started its operations as typical Lahori Bar BQ but with the onward
flow of time, they introduced different traditional foods which are liked by their customers.
Easily Accessible:
For the convenience of their customers, the management of Bundu Khan Restaurant has opened
several branches in different parts of the country. Only in the city of Lahore there are seven
branches available for the customers.
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4. Weaknesses of Bundu Khan Bakers and Restaurant
Deficiency of skilled staff:
As we know that during the days of pandemic so many people have lost their jobs, The pandemic
has badly affected the hotel and tourism industry so the restaurant management has to reduce
their staff that has created the deficiency of skilled staff.
Need to spend more on Advertising:
The management of the restaurant paying less attention to advertising whereas their competitor
such as Gourmet Foods spending a heavy amount on advertising and attracting more and more
customers and helping their customers to know about their new products.
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5. External Environment of the Organization
Opportunities for Bundu Khan Bakers and Restaurant
New outlets:
The management of the hotel is focusing on opening new outlets in different cities. With the the
help of this strategy, more and more people are getting familiar with Bundu Khan Restaurant..
Hygienic Foods:
As we know that the food authority in all over the country has become very active so as a result
of it the people has become very selective and health conscious. Bundu Khan can avail this
opportunity by informing its customer that their food is hygienic and low in fat, in order to
increase its revenue
Market Expansion:
Bundu Khan is offering different Pakistani and Indian cuisines at their outlets but now they have
also penetrated into the Bakery Market. They have successfully launched Bundu Khan Bakers
and Sweets in different cities which will ultimately increase its market share.
Online Services:
During the days of Pandemic when everything was shut down, the management of the hotel
decided to start their online operations. Their fast and quick service of food delivery has become
able to some extent to eliminate the negative impacts of Pandemic.
Targeted Customer:
The Bundu Khan Restaurant targets the Middle class customers by offering them affordable food
varieties.
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6. Threats for Bundu Khan
Restaurant
Inflation:
The constant rise in prices of commodities is badly affecting the operations of the Bundu Khan
Restaurant and it has become a challenge for hotel management to provide its customers good
quality food at affordable price.
Changing eating habits:
As the tendency of the people moving from traditional foods towards fast foods (such as Burgers,
Pizzas, Shawarmas, etc) and the people don’t like to sit in the hotels and wait for foods to be
cooked. So the change in behavior of customers also has a negative effect on the business
operations.
The negative impact of Covid-19:
Sudden shutdowns of the economy, unplanned lockdowns has increased the uncertainty so the
Restaurant’s Management is finding it difficult to cope up with this situation.
Political instability:
Since the arrival of the new government in the country, the operations in every field of the whole
country have been badly affected due to poor governance. The uncertain situation of the country
is not conducive to do business.
Heavy amount of Taxes:
Although the Bundu Khan Restaurant is listed and registered in FBR but the constant increase in
the amount of taxes has eliminated the profit of the business so it has become a challenge for the
management how to survive in this unfavorable business environment.
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7. Porter’s Approach to Industry Analysis
The threat of New Entrant:
The hotel industry in Pakistan is developing and new trends are being introduced, several SME’s
start their operations but they couldn’t meet the customers’ expectations whereas Bundu Khan
has established and has groomed itself as an experienced player in the market.
Rivalry among existing firms:
It is a general perception that rivalry among competitors always exists, every firm or
organization try it level best to provide its customer a unique product or service as compare to its
rivals in the industry. Bundu Khan doesn’t involve in price war rather they focus on the good
quality of their foods and services. But the entry of a new competitor is a moderate level threat
for Bundu Khan Restaurant because it affects the profitability for the time being.
Threat of substitute products:
As the people are becoming more and more health-conscious so they are willing to pay extra
money if they found a good quality product. The positive image in the minds of the people,
helping the management of the Bundu Khan restaurant not to compromise on the quality and
improve their product lines constantly, so the threat of substitute isn’t an issue for Bundu Khan.
The bargaining power of buyers:
According to Porter, buyer has strong influence in an industry as he can affect the price, quality,
services and make the competition tough among the competitors. So keeping in mind Porter’s
analysis we can say that today buyers are very price and quality-conscious, hence the firms in the
industry have to work a lot to keep their customers. Bundu khan restaurant constantly
introducing and adding new food items to their menu list, in this way their keep their customer’s
interest in their products. While setting the price of their product they keep in mind the
customer’s affordability.
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8. The bargaining power of suppliers:
In Porter’s model of industry analysis, suppliers or a group of suppliers also has a significant
effect on the industry. Their role is also very vital. As Bundu Khan is known for its good quality
of foods and services so they buy their food ingredients and other material from well-known or
famous businesses. The fluctuation in prices of ingredients and another material creates a
problem for the management because they have to do intense market search to find ingredients at
reasonable prices, to maintain their profit margins as well as provide good quality foods and
services to their potential customers.
Competitors of Bundu Khan Restaurant
1: Gourmet foods and catering
2: Butt Sweet and Restaurant
3: Pind Restaurant
4: TABAQ Restaurant
5: Salt & pepper
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9. PESTEL ANALYSIS
Political factor:
Bundu Khan Restaurant started its operation in 1991 as a traditional restaurant chain but as the
time moved on the management of the restaurant opened new branches in different part of the
country. As we know that our country Pakistan has a diverse culture and traditions so Bundu
khan had to work for it and the management of the restaurant is trying its level best to adjust
according to the customs and traditions across the country.
Economic factor:
Unstable economic condition, inflation and employees turn over badly affecting the restaurant
operations. It has become a challenge for the management how to get ingredients and other
material at a reasonable price. Due to frequent shut downs of the hotel industry a lot of people
has left the hotel industry so management is finding it difficult, how to retain experienced and
skillful employees because hiring and training a new employee, costs a lot to the hotel
management.
Social factor:
The management of the restaurant is adjusting itself according to their customer needs. They are
also focusing on the class distribution in the society as well. They are now setting prices by
keeping in mind their targeting the customers belonging to elite class.
Technological factor:
The restaurant’s management is striving hard to bring constant innovation in order to be in the
business and to attract customers’ attention. They have launched their website, accepting
payment through debit or credit cards, etc.
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10. Legal factor:
As the restaurant is operating in a diverse society so the management of the hotel is considering it
most important to follow the laws and regulations, for example in Punjab the restaurant
management is abiding by all the health and safety rules and regulation devised by the Punjab
Food Authority.
Environmental factor:
The environment factor badly affected the operation of the their outlet at the Mall Road Lahore
during the days, when the Orange line train project was going on because at the Mall Road the
environment was so polluted that even it was very hard to breathe. The restaurant management
has also formulated their own environmental policy, they have installed energy efficient kitchens
and LED Lights, properly dispose of their waste without polluting the environment.
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11. Evaluation of External
Factors
Opportunities Weightage Rating Weighted Score
Online Presence .15 5 .75
Opening New Stores .10 4 .4
Price is reasonable .12 5 .6
Expanding its Market .20 5 1
Total Score .57 19 2.75
Threats Weightage Rating Weighted Score
Inflation .15 4 .6
Changing eating habits .08 3 .24
Negative impact of Covid-19 .20 5 1
Political instability .12 4 .48
Total Score .55 16 2.32
Reference
. The Bundu Khan Restaurant,SWOT Analysis, Poter’s Industry Analysis. Retrieved from
(http://www.bundukhan.pk/index.php).
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