Hamburguesas El Corral: Does Delivery Service Matter Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Hamburguesas El Corral: Does Delivery Service Matter Case Solution

Question No 3

Drivers to providing delivery service in the Colombian fast food sector

Food delivery services have seen a massive increase in popularity in Columbia, accounting for over 16 percent of total food service sales. With the growth of technology and mobile devices, food delivery has become more convenient and efficient than ever before. Since 2017, the number of food delivery users has increased by 31% and is expected to reach 7.3 million by 2020.

When signing up for the job, drivers must meet certain minimum requirements. These include submitting a Social Security number for background checks. They must also be at least 19 years old and have a valid driver's license. If they don't own a car, they can use a scooter. However, when signing up, drivers must select "Delivery by scooter."(Cavallo, 2019).

Extended Customer Market

The extended customer market is one of the leading drivers in providing delivery services in the Colombian fast food sector that enable the company to establish a strong market presence. Columbia is the most diversified country that has diverse customers that enable the companies to deliver their services qualitatively. The extended customer market is considered a strong driver that enables the company to deliver maximum services to diversified customers (Teichert, 2021).

High internet access

Columbia is a developing country that has high internet access which enables companies to deliver their services to their customers. The high internet excess is the second most influential driver for delivery services. The high internet excess allows the companies to target an extended customer market that allows the company to generate a wide as well as a profitable market and it can generate huge revenue. McDonald's is one of the leading companies that successfully use such drivers in the Colombian market so that is why in 2012 it successfully captured the market of Hamburguesas El Corral.

Economic and Technological growth in Colombia

Columbia is one of the fastest growing countries that have high economic growth as well as technological growth. The technological and economic growth allows most of the companies in Columbia to offer delivery services in bulk quantities. The economic factor increases the buying power of customers and technological growth enables companies to deliver their delivery services qualitatively.

Barriers to providing delivery service in the Colombian fast food sector

In Columbia, over 16 percent of food service sales are now made via home delivery. This trend is largely due to technological advancements, with mobile devices and apps making everyday tasks easier to complete. As a result, online food delivery users have increased by 31 percent between 2017 and 2019 and are expected to reach 7.3 million by 2020 (Silva Ramirez, 2021).

Although food delivery services are booming, many restaurants still wish their customers would order directly from them. In these cases, third-party delivery services are an important lifeline for struggling restaurants. They allow restaurant owners to sell their food to customers who may not otherwise have the time or energy to go out and find a restaurant. Moreover, food delivery services are more environmentally friendly than delivering food using traditional methods.

Logistical barriers

One of the major challenges for food delivery startups is logistics. They must decide what radius to cover while ensuring quality delivery. Proper resource management will help the company to lower operating costs and improve the functional efficiency of their delivery business, resulting in higher customer satisfaction. However, despite the challenges, the growth of the food delivery industry is anticipated to continue and the industry is ready to welcome new players (Silva Ramirez, 2021). While the costs of food delivery services are relatively low, they add tremendous value for many consumers.

The most trending barriers in the Columbian market regarding delivery services are as under:

Increased operating costs

The increase in the operating cost is the highly influential factor that resists EL Corral and other companies to operate their delivery services across Columbia. The high rates of operating measures required an expensive decision that harms the company. To operate the delivery services EL Corral is required to invest a huge budget for better delivery services. However, if prices rise, these services will be out of reach for many low-income households. As a result, governments and companies must experiment with pricing subsidy programs that will make these services more accessible to those who cannot afford them.

Question No 4

Recommendations

Delivery services are a great way to reach out to new customers, especially in urban areas. In addition to being convenient for customers, it can also increase its profits by offering a home delivery service. Hamburguesas El Corral can also use third-party apps that double as a marketing platform. These apps can put Hamburguesas El Corral's menu in front of millions of people who might otherwise be unable to visit its restaurant.

Third-party delivery services may cost Hamburguesas El Corral a lot of money, and they often take weeks to process credit card payments. If Hamburguesas El Corral has a small business, however, third-party delivery platforms might be the best option for Hamburguesas El Corral. Third-party delivery companies help Hamburguesas El Corral handle large orders, and they can also take care of customer disputes. Ultimately, it's up to Hamburguesas El Corral to choose the best strategy for its business. Food delivery is convenient and can save Hamburguesas El Corral customers time. No more traveling to the restaurant to eat! In addition, food delivery services are affordable. Most delivery services charge a small fee for home delivery, but some are free. Additionally, there are no tipping fees for delivery services. Online ordering systems can help to increase Hamburguesas El Corral sales and profits. If Hamburguesas El Corral's website doesn't allow for online ordering, the company is missing a golden opportunity (Fuciu, 2018).

The convenience and transparency of online ordering systems are key to attracting new customers. It's no surprise that millions of restaurants have opted for online ordering systems and mobile apps. While it's convenient for customers, the quality of food delivery services isn't always on par with the quality of food at Hamburguesas El Corral restaurant. Food delivery services are also notorious for being late. As the market for food delivery services grows, more restaurants are joining the movement. In addition to increasing Hamburguesas El Corral's revenue, it can also help Hamburguesas El Corral connect with new customers(Silva Ramirez, 2021)..........................

Appendices

Appendix-1 Service Gap Model

Appendix-2 Alternatives

Appendix-3 Recommendation

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Hamburguesas El Corral: Does Delivery Service Matter Harvard Case Solution & Analysis