BUS 200 Business & Entrepreneurship

Semester 223

Sections 4 & 5

CASE 2: Abou Shakra Restaurant: Creating Customer Value the Old-Fashioned

Way

Names / IDs:
Team:

The Case:

Abou Shakra is a chain of restaurants in Egypt well known for charcoal cooking—grilled meat, kebabs,
and kofta. In 1947 Ahmed Abou Shakra opened his first Abou Shakra restaurant in El Kasr El Einy, a
famous central district in Cairo. The first restaurant was not in a consumer-attractive neighborhood, but
that did not stop Abou Shakra, who believed that offering healthy, tasty, and well- marinated food was
more important than location in attracting customers and having them return time and again if they
received a good meal, the location of the restaurant would not have much bearing on their future dining
decisions. Initially the restaurant’s menu was very simple; it mainly consisted of basic traditional
Egyptian dishes, which was the standard menu offered in similar establishments at the time. Abou
Shakra decided to keep his menu simple and traditional to avoid the risks associated with offering
unfamiliar dishes to consumers. As a result, he focused on providing well-known traditional dishes of
exceptional quality.

When the first Abou Shakra restaurant was established, there was not a wide variety of cuisines
featured at restaurants, such as Indian, Chinese, and Italian, which are widely available today. As noted,
Abou Shakra’s competitors at the time also offered traditional oriental Egyptian food, and due to the
lack of other cuisines, he was essentially competing with the whole market. It was thus very challenging
to start up a business in this highly competitive market, and it was necessary for Abou Shakra to ensure
that he could offer something that would give him an advantage over his competitors. This advantage
turned out to be the great customer value offered by Abou Shakra, which was not offered by the
majority of his competitors. The Abou Shakra restaurants have maintained the persistent focus on
customer well-being and satisfaction that originally gave them an advantage over their competitors, and
this is one of the reasons for their success. The importance that the company places on elegant dishes,
prepared with passion, and providing a memorable experience to their guests had endured right from
the Abou Shakra’s establishment. Since it was established, Abou Shakra restaurants have been following
that philosophy, and this is another reason for their success. We will now take a closer look at how Abou
Shakra applies this philosophy and offers customer value.

Abou Shakra owns its own factory, which supplies all branches and outlets with their daily requirements
of fresh meat and poultry. The meat is of high quality—only the best beef and lamb. Meat is delivered to
the factory daily, and a governmental veterinary inspection is performed to ensure that the meat is fresh
and of good quality. The factory is equipped with the latest technology to guarantee that the meat is
stored at the correct temperature to ensure its freshness. The fruits and vegetables are also delivered
daily and are specially stored to maintain freshness up to the time of serving. Abou Shakra’s quality
control department ensures that all finished products are of outstanding quality, and oversees practices
that prevent any of the ingredients from being contaminated. The company has signed a contract with
SGS Egypt to supervise its health, safety, and hygiene practices, ensuring that they are of the highest
standard. The Abou Shakra menu has changed very little over the past 60 years, maintaining the simple
offering of traditional Egyptian dishes with a particular focus on grilled dishes, which is now Abou
Shakra’s specialty. The primary aim of Abou Shakra is to keep the menu simple so as to wholly master
the dishes offered. This has encouraged customer loyalty, as customers often choose their favorite
dishes for which they have come especially for. This has led to Abou Shakra being one of the most
popular places for oriental food in Egypt. Keeping the menu simple also limits the costs of purchasing
different ingredients from several suppliers. If this was not the case, the recruitment of more managers
would be required to contact the suppliers and follow up on the orders. There would also be more
supervisors needed to ensure that the delivery and storage processes take place smoothly and that each
outlet receives its supplies on time. In addition, more chefs who are specialized in the new dishes added
to the menu would be necessary as well. Abou Shakra’s managers pay attention to every small detail;
they ensure that each restaurant is spotless and that the kitchen is held to the highest cleanliness
standards. All utensils and cutlery go through a sterilization process to ensure their sanitation and
safety. The tables are wiped with a special detergent so that customers feel they are eating in a hygienic
environment.

Abou Shakra restaurants do not rely solely on their food to please their customers, but also on well-
trained employees who deliver extraordinary customer service. They hire energetic, friendly, and
passionate employees. Abou Shakra restaurants realized the significance of educating their workers as
to the importance of customer satisfaction, and this led to the establishment of their own training
center. The center has a proficient team of trainers who ensure that employees will have the necessary
skills so that guests will be provided with the best service. Abou Shakra relies on continuous training to
provide employees with the necessary confidence and skills to provide the utmost customer satisfaction.
The company believes that its greatest asset is its employees, and Abou Shakra thus invests heavily in
appropriately recruiting and training them in order to maintain the company’s standards in the
competitive market. One of the core principles of the company is that by taking good care of the
employees, the employees will take good care of the customers.

In your teams, read the case and answer the parts questions. Be prepared to share your work with the
class as a team. You must submit a team report completed in order to get credit by end of Saturday July 15.

1. Provide updated information using the most recent information on Abou Shakra. Make sure
resources are provided.
2. Describe the value Abou Shakra has been providing for customers.
3. Do you support Abou Shakra further growth in Egypt? Justify your answer
4. Do you support Abou Shakra further growth outside of Egypt? Justify your answer
5. Suggest other methods by which Abou Shakra can provide value to its customers.