A & W Drive-Ins Limited Strategic Analysis

A & W Drive-Ins Limited Strategic Analysis
Statement of the Problem:
Mr. Ed Drayson must prepare a set of recommendations for Mr. Harry Braithwaite about the A & W Drive Ins in North Eastern Canada. The drive-ins are facing the challenge of rising costs at the same time as increasing competition. The McDonald’s Corporation appears to be targeting A & W specifically by opening restaurants in close proximity to A & W drive-ins. Furthermore, the cost of meat is rising approximately 40 percent. Not every restaurant is facing the same price increases. The meat cost increase may be temporary but the labor costs will be permanent. The decisions that have to be made are very serious are require careful analysis with long-term consequences in mind.
Analysis:
The fast food industry is growing rapidly. In the area of New Brunswick, Nova Scotia and Prince Edward Island, the growth of fast food restaurants has more than doubled in a few years. The introduction of new rest...