Presented to the

Decision Sciences and Innovation Department of De La Salle

University-Manila
Term 1, A.Y. 2023-2024

Pre-Case Analysis 2: The Shawarma Shack

In partial fulfillment of the course
ENTCORP- K31

Submitted by:
Abad, Angela
Ang, Lorenz
Chen, John
Chua, Dale
Gabriel, Lana
Ngu, Shanelle
Silva, Hernest
Uy, Matt

Submitted to:
Ms. Lily Ann Cuenco
Submitted on:
November 14, 2023
I. COMPANY BACKGROUND

Shawarma Shack PH stands out as one of the pioneering ventures, notably

credited as the first to introduce the Buy 1 Take 1 Shawarma concept in the Philippines.
Originating as a modest food cart in the bustling market of Divisoria, Manila, in 2015,
this success story has left an enduring mark on the country's franchising landscape.
Presently, with an extensive network comprising more than 700 franchised outlets across
the nation, Shawarma Shack PH continues to shine as a symbol of entrepreneurship,
community involvement, and culinary innovation.

The company’s primary objective is deeply rooted in offering delightful and fresh
Mediterranean cuisine, infused with a distinct Filipino flair, all at price points that bring
happiness to our customers. Beyond the mouthwatering menu, they are dedicated to
providing employment opportunities, training, and education, while nurturing the
entrepreneurial spirit among Filipinos. As we look ahead, their vision is to uphold the
highest standards of quality in both our products and services, thus cementing our status
as a domestic industry benchmark. We also hold aspirations of expanding our footprint
into international markets, carrying forward the legacy of the "SHAWARMA SHACK"
brand, and continuing to captivate our customers while empowering Filipino
entrepreneurs, both locally and abroad.

Guiding this extraordinary journey are the proprietors, Walther Buenavista, and
his wife. What commenced as an impassioned love for shawarma during Walther's school
days evolved into a dream and aspiration of owning their own shawarma establishment.
Despite facing financial challenges and uncertainties, they took the leap of faith, and it
has yielded remarkable success. With over 700 branches spanning the nation today,
Shawarma Shack PH exemplifies perseverance, ardor, and the enduring affection for
shawarma that ignited this incredible venture.
 II. SITUATIONAL ANALYSIS

a. Internal Environmental Analysis

Strengths
Convenience
Seeing as Shawarma Shack is a fast-food food cart/in-line restaurant, their food is quickly
made resulting in less waiting time. The restaurant also has quick service making it easy and
convenient for customers. On top of that, shawarmas are convenient to eat since they are
handheld, and the customers can easily bring the food with them.

Affordability
The products from Shawarma Shack are affordable and cheap, where prices range from
Php 80 to Php 150. These inexpensive prices ultimately attract customers to purchase this
budgeted food. In addition, Shawarma Shack is the first to implement a promo of “Buy 1 Take 1
Shawarma” in the country. This promo appeals to customers to purchase more as it means free
food for every shawarma bought.

Brand Recognition
The status with regard to the shawarma industry Currently, Shawarma Shack's brand is
among the most recognizable in its market segment, second only to Shawarma Snack Center and
Turks. Thus, they possess a market advantage and will be taken into consideration by individuals
who have a craving for such cuisine.

Strong Company Background

The robust corporate history, which includes numerous celebrity endorsements,
significantly aided the company in establishing itself, increasing brand recognition, and
constructing a solid reputation, all of which contributed to increased sales. The most
recognizable celebrity endorsement they obtained was from Kathryne Bernardo and Daniel
Padilla's love team.

Weaknesses
Lack of variety in the menu
As of the moment, Shawarma Shack has limited offerings in their menu. Customers have
only two options for meat, which are chicken and beef with a side dish option, which is fries.
However, they offer food bundles and meals to make up for this.

Food Safety
One of the primary challenges encountered by Shawarma Shack pertains to the locations
where they have established their business as a promising entity offering reasonably priced
cuisine. Certain areas of their establishment exhibit deficiencies in sanitation, including the
cleanliness of their staff and its location.

Supply Chain
A more sustainable, effective, and efficient shipping method is needed so that all of the
goods can be transported from the factories to the shops, as the company has opened multiple
locations in various provinces and cities across the Philippines due to the overwhelming
popularity of the brand. If something goes wrong during delivery, it might cause a cascade of
issues.

Opportunities
Expansion
Shawarma Shack can maximize their capital by continuously expanding its presence in
new locations and targeting a wider customer base. The use of social media advertising, which is
the trend nowadays, can help in promoting what’s new about their business. Additionally, the
company can explore partnerships with different food delivery platforms to reach a larger
audience.

Promos
It has already established a strong consumer base among individuals who appreciate
novelty and are satisfied without exceeding their financial means, owing to its affordable and
convenient attributes. By offering new promotions for their special occasions like brand
birthdays and bundles that increase brand recognition and generate additional revenue for the
brand, Shawarma Shack may be able to drum up more interest in the brand and is in a great
position to do so.

Buy One Take One

The phrase "Shawarma Shack" evokes thoughts of affordability and the
buy-one-get-one-free promotion. Since its business model is already well-established, Shawarma
Shack should maintain its promotion and continue to operate as a buy-one-get-one establishment,
as it represents an expanding opportunity that no other brand has managed to secure.

Threats
Competitors
Changes in what customers like and dislike may severely impact the business. Not to
mention the existence of several fast-food competitors that the business is against. The
customers' changing expectations and/or motivations can influence customer purchasing
decisions.

Sudden Supply Shortage

Seeing as Shawarma Shack employs the Buy 1 Take 1 strategy, their ingredients and
supplies rapidly run out and sometimes cannot keep up with customer demand. If there is a
sudden shortage of a key ingredient, the business may have to temporarily close or reduce its
menu offerings, which could lead to a decline in sales and customer satisfaction.

Ensuring quality is not their primary concern

Although their buy one get one free promotion is commendable, it resounds with some
customers that they may not be the highest quality shawarma available. For these individuals, the
offer is merely an affordable way to satisfy their hunger. The group does not claim that it is not
tasty, but it is certainly not the most flavorful option available.

a. External Environmental Analysis

Political Factor
Government Regulations
For Shawarma Shack to operate in different locations, they have to deal with a number of
political factors, including compliance with local legislation and standards, company licensing,
and safety and health regulations. The company also has to be aware of any changes to trade
agreements or policies that could have an impact on its supply chain.

Economical Factor
Inflation
The state of the economy, which includes inflation and currency exchange rates, can have
an impact on profit margins and pricing policies. Even if employing natural resources—which
can occasionally be more expensive—is prioritized, pricing plans must take into account the
spending habits of consumers in various marketplaces, keeping an eye on inflation rates in order
to preserve profitability while keeping prices competitive.

Social Factor
Cultural Preferences
A thorough understanding of cultural inclinations and changing eating patterns is critical
to guaranteeing Shawarma Shack PH's long-term viability and appeal to its wide range of
patrons. Through an exploration of the complex web of cultural quirks, the business is able to
precisely customize its menu items to suit the diverse preferences and needs of its customers. In
addition to positioning Shawarma Shack PH as a culinary trailblazer, this increased cultural
awareness fosters a close relationship with the community it serves.
Technological Factor
Digital Presence
Adopting a strong and all-encompassing digital presence is a crucial tenet of Shawarma
Shack PH's business strategy to navigate the contemporary business environment. Using
state-of-the-art technology means more than just using it for functionality; it represents a
dynamic and diverse engagement strategy that includes marketing campaigns, easy-to-use online
ordering, and a lively social media presence. This integrated technology framework is a powerful
tool for growing the brand's reach and connecting with a wide range of consumers in addition to
promoting operational efficiency.

Legal Factor
Food Safety Regulations
Maintaining the reputation, success, and, most importantly, the health and welfare of
Shawarma Shack PH and its esteemed customers requires a steadfast dedication to strict
adherence to food safety and hygiene requirements. A strong commitment to maintaining the
highest standards in all aspects of the culinary process—from sourcing ingredients to the final
presentation on the plate—is necessary to successfully navigate the complexities of these laws.

Environment Factor
Waste Management
Within the dynamic food sector, Shawarma Shack PH has a critical obligation to establish
efficient waste management procedures in the conscious pursuit of environmental sustainability.
Acknowledging that waste has consequences that go beyond operational issues to significant
ecological effects, the organization strategically prioritizes implementing all-encompassing waste
management plans that are consistent with its dedication to environmental stewardship and
corporate social responsibility.

III. MAIN ISSUES

Walther Uzi Buenavista the CEO of Shawarma Shack started his simple business
of selling Shawarma by a food cart at Divisoria in February 2015. Shawarma is a very popular
Middle Eastern meal, Walther being a fan of Shawarma inspired him to open his own business
selling Shawarma with a twist of Filipino delicacy. To further expand his business, Walther
started messaging presidents of organizations for opportunities for events. Later on, he started to
open stalls in malls after being rejected 13 times. Nowadays Shawarma Shack is being seen at
multiple malls and stores in different areas in the country. Despite having a rough start at the
beginning of their operations. The main issue that Shawarma Shack experiences is how will be
able to keep the quality of its products fresh and delicious at a low price in all of its branches
around the country. By selling their products cheap and affordable, how will Shawarma Shack be
able to advertise their products despite being cheap it will be worth its price or even if it’s worth
more? This may also affect their sales despite earning profit. Shawarma Shack making their
products cheap and affordable is not a problem. However, they are losing opportunities by setting
their prices too low and are missing out on revenue. What Shawarma Shack can do in the future
is to think and evaluate the prices on their menu and make changes to their prices even at their
promos. They can keep the buy 1 take 1 concept because is what makes Shawarma Shack special
and attracts customers nonetheless, the prices of their products can be changed and still be
reasonable for their target market.

IV. CRITICAL FACTORS

Shawarma Shack's exceptional success can be attributed to several critical factors
that have set them apart in the competitive food industry. From their pioneering Buy 1
Take 1 Shawarma concept to their commitment to affordability, and their focus on
entrepreneurship support, Shawarma Shack has crafted a unique path to prominence.
Their strategic expansion, effective branding, and unwavering customer engagement have
played pivotal roles. Bolstered by strong leadership, adaptability, and a unique selling
proposition, these critical factors collectively define Shawarma Shack's remarkable
journey in the culinary world.

a. Unique Selling Proposition

Shawarma Shack's journey to success is characterized by a distinctive and

innovative approach that has left an indelible mark on the competitive food
industry. At the heart of their success is their unique selling proposition (USP),
notably embodied by the introduction of the Buy 1 Take 1 Shawarma concept.
This was a game-changer, setting them apart in the market competition before
Shawarma Shack's ability to offer something truly distinctive in a highly
competitive market is a pivotal factor in their enduring success.

The roots of this exceptional USP are grounded in a serendipitous

beginning. When Shawarma Shack initially set up shop at a night market in
Tutuban, Divisoria, their primary aim was rather modest - to clear their initial
stocks. It was during this time that they introduced the Buy 1 Take 1 (B1T1)
promo at their stall. This decision was not born out of a grand marketing strategy,
but a simple desire to sell all the shawarma they had on hand. Little did they
realize that this unintentional move would have a profound impact. It became the
focal point of their success, a promotional approach that not only met the demand
for affordability but also created a buzz in the market.
 By offering a value-packed proposition, Shawarma Shack made their
delectable Mediterranean-inspired shawarmas more accessible to customers,
drawing people to their stalls and inspiring loyalty among patrons. The
unintended yet strategic use of the B1T1 promo exemplifies their knack for
creative thinking, seizing opportunities, and meeting customer demands. It
underscores the crucial role that a unique and compelling USP plays in the
competitive business landscape and highlights the remarkable success that can
result from a blend of entrepreneurial spirit and inventive problem-solving.

b. Affordability

Affordability stands as a cornerstone of Shawarma Shack's strategy for

success, playing a pivotal role in shaping their brand's prominence in the culinary
landscape. The ability to offer products at affordable price points is a significant
factor that goes beyond mere pricing; it speaks to their commitment to
accessibility and inclusivity.

Shawarma Shack's dedication to affordability ensures that its delectable

Mediterranean-inspired shawarmas are within reach of a broad customer base.
This affordability not only entices first-time customers but also fosters long-term
loyalty among patrons. In a world where dining options vary in price and quality,
the appeal of reasonably priced, high-quality shawarmas is undeniable. Moreover,
by maintaining affordable pricing, Shawarma Shack taps into the segment of the
population that may otherwise consider dining out a luxury. It caters to the diverse
demographic of individuals who seek great taste and quality without breaking the
bank. This approach not only attracts more customers but also contributes to
community engagement, as it allows individuals from various walks of life to
savor their flavorful offerings.

Shawarma Shack's emphasis on affordability doesn't compromise the

quality of its products. It demonstrates their commitment to striking a balance
between providing a memorable shawarma experience and ensuring that it
remains accessible to a wide and diverse audience. In essence, affordability isn't
just about competitive pricing; it's a strategic decision that enhances the brand's
appeal and fosters a sense of belonging, making Shawarma Shack a go-to choice
for those who seek exceptional taste without the premium price tag.

c. Quality and Taste

Shawarma Shack’s beef quality is different from other competitors due to
its tenderness. They cook the beef from the vertical rotating skewer starting from
 left to right and it cannot be rotated back as Walther stated that it would harden
the beef too much, hence making it burnt. This is their method of making their
beef more delectable wherein it would not be too hard or too soft when eating it
with the various shawarma combos that they have. Furthermore, the taste of the
shawarma differs from the usual Mediterranean dish that it came from. It has a
hint of Filipino flavor, which is the added sweetness in the flavoring. This makes
it more likable to the public since Filipinos prefer a sweeter type of dish, just like
the typical food that they usually eat.

d. Franchising Model
Shawarma Shack started as a food cart in Divisoria in the year 2015 and it
was only a small cart business, just for Walther Buenavista to earn money. In
addition to that, he also decided to try to sell at university events for the sake of
finishing all of the shawarma left that he had in his business. At one point, he
became determined to build his own stall in malls but got rejected 13 times, until
they accepted him. His first stall was in Pasay and the following locations were in
SM malls. After that, his business became popular because of the unique selling
proposition that he established, which made him successful. Today, there are over
700 branches nationwide and it keeps on growing thus far.

e. Marketing and Branding

The marketing and branding of Shawarma Shack became renowned
because of their buy 1 take 1 USP. Through this, they manage to gain customers
with it being affordable and advantageous to the public, especially to people who
save money. Brand endorsers such as Kathryn Bernardo and Daniel Padilla
steered individuals to recognize the brand’s product which therefore caught
many’s attention. With multiple stores opened in malls and establishments,
Shawarma Shack continues to flourish and achieve admiration from customers all
over the country.

f. Walther Buenavista’s Entrepreneurial Spirit

Starting as a high school basketball player, Walther Buenavista dreamt of
being a basketball star in the future. However, he does not fit the criteria for being
one so it did not become possible for him to join the team. College was also not a
fit for him as he dropped out of multiple colleges during his first year. Due to this,
he got rejected a lot of times by call center companies and did not get a job.
Though something happened, he thought of an idea that developed into a
business. His love for shawarma started his first kiosk in Divisoria and further
transformed into multiple franchises that can be seen in various establishments at
present. It started when he built up the courage and used his hard-earned money to
 put up a stall in one of the malls, which led to success. With his hard work and
perseverance, the business turned into a huge accomplishment and became the
country’s first and original buy 1 take 1 shawarma.

V. ALTERNATIVE OPTIONS
Strengths-Opportunities (SO) Strategies:
1. Expand International Presence:
a. Leverage Shawarma Shack's triumphant success in the Philippines to
meticulously penetrate international markets. Through strategic
franchising agreements, the brand can carefully select partners who
intimately understand local cultures and preferences. This involves not just
a mere expansion but a thoughtful adaptation to different cultural contexts
while preserving the essence of Shawarma Shack's unique offerings. By
fostering alliances with local entrepreneurs, Shawarma Shack aims to
introduce its distinct brand of shawarmas to diverse audiences, positioning
itself as a global culinary phenomenon. This strategy entails a step-by-step
approach to navigating the intricacies of international markets, ensuring a
consistent and high-quality dining experience worldwide.

Strengths-Threats (ST) Strategies:

1. Product Price Adjustment:
a. Counteracting concerns about perceived product quality due to low prices
involves more than just adjusting prices. Shawarma Shack can launch a
comprehensive campaign spotlighting meticulous preparation and cooking
methods, emphasizing the unique flavor profile crafted with a distinct
Filipino touch. By transparently showcasing the commitment to
excellence, this strategy builds trust among customers. Through engaging
visuals and narratives, the campaign aims to elevate the perception of
Shawarma Shack's offerings, emphasizing that affordability does not
equate to compromised quality. This not only addresses concerns but
transforms customers into informed advocates who appreciate the brand's
dedication to delivering top-tier shawarmas.

Weaknesses-Opportunities (WO) Strategies:

1. Streamlined Supply Chain:
a. To enhance operational efficiency and enable flexibility in adjusting
product prices, Shawarma Shack could strategically invest in streamlining
its supply chain. This involves negotiating favorable deals with suppliers,
optimizing inventory management, and adopting advanced logistics
 solutions. By identifying and implementing improvements throughout the
supply chain, Shawarma Shack can reduce operational costs while
ensuring a continuous flow of high-quality ingredients. This not only
supports the commitment to affordable pricing but also positions the brand
as a paragon of efficiency and sustainability in the competitive food
industry.

Weaknesses-Threats (WT) Strategies:

1. Strategic Partnerships:
a. Rather than facing the challenges associated with low pricing in isolation,
Shawarma Shack could proactively form strategic partnerships.
Collaborating with complementary businesses or brands opens up new
avenues for revenue generation. Joint promotions, co-branded events, or
partnerships with food delivery platforms can amplify the brand's visibility
and attract a wider customer base. By tapping into existing networks and
customer bases of strategic partners, Shawarma Shack not only overcomes
challenges related to low pricing but also creates synergies that drive
mutual growth. This strategy transforms challenges into opportunities,
fostering a collaborative approach to sustained success.

VI. RECOMMENDATIONS
a. Choice from options present
Out of all the choices presented, a mix of both Strengths-Threats (ST) and
Weakness-Threats (WT) Strategy: Strategic Partnership, and Price adjustment are the most viable
options for Shawarma Shack's current problem. The main issue Shawarma Shack faces is its low
prices making customers question its quality and its lack of proper employee hygiene practices
and the cleaning/sanitizing practices of its food equipment this affects Shawarma shacks brand
image negatively. To revive its brand image first the company should implement strict hygiene
practices and a certificate of sanitation. followed by a 6-10 peso increase to seize the opportunity
for additional revenue. This change might bother the customers so adding an incentive such as a
free drink for every buy 1 take 1 order may negate the negative connotation of a price increase.

To start, Shawarma Shack should conduct an in-depth review of the hygiene practices of all its
stores. This may involve implementing strict quality control, implementing regular equipment
maintenance, and ensuring that staff follows a stringent hygiene protocol during food
preparation. To change customer perception, Shawarma Shack can explore strategic partnerships
with recognized hygiene certification companies. Achieving certifications and placing the
certificate in the stores can attest to the brand image and adherence to proper hygiene standards
which can serve as a tangible demonstration of its commitment to proper sanitary practices.
b. Step-by-step process of implementation
1. Hygiene Assessment: Conduct a comprehensive assessment of the current hygiene
practices of its store locations making sure they comply with the food and safety
requirements.
2. Gain sanitation certificates: Reach out to recognized hygiene certification agencies and
undergo the certification process ensuring that Shawarma Shack receives official
certification for its hygiene standards.

3. Quality control and Operational revision: Introduce new protocols for food handling and
storage such as regular inspection routines to equipment maintenance and cleaning
schedules.
4. Monitoring the continuous improvements: Implementing a monitoring system to track the
effectiveness of hygiene improvement initiatives.

c. Potential problem analysis (“What if?”)

Problem Possible Cause Preventive Action Contingency plan

Customers are Past issues or Solicit feedback from If skepticism persists,

skeptical about negative experiences customers about the establish a feedback
change may contribute to sanitization of the mechanism to make
skepticism. store. adjustments based on
the constructive
feedback.

Hygiene certificate is Due to strict Hire a private food Consider obtaining

not achieved standards, the sanitation company alternative
certification process for consultations certifications from
may be harder to during the local food sanitation
achieve. preparation phase to officers or reputable
ensure alignment organizations in a
with certification similar field.
requirements.

Changes lead to a Employees may need Training sessions for Hire temporary staff
delay in service more time to adapt to staff to familiarize during the initial
the new processes them with new phase to manage the
leading to a delay in processes. increase in workload
service. until the employees
become accustomed
to the new processes.