Donut King Case Study

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Introduction:

This makes Donut King easily become the biggest and best empire of donut stores this country has ever seen.

According to it's parent company, RFG's anuual reports,

We guess that one of the main reasons is that Donut King hasn’t make full use of IT technology, since other companies such as Boost has already had their online order app which also has game sector. So we believe there is an opportunity for DK to reverse this down trend by developing an app to improve increase their business volume and revenue.

Weaknesses:

1. Long queue
2. Immigrants from non-English speaking countries know little about DK because of the culture and eating habit difference, and the menu is confusing for them. They rarely spend money in DK stores.

Do Nothing:

As a famous chain enterprise, DK will still have considerable revenues if they just maintain the status quo. By the way, they may also use the spare money for investment. We estimate a reasonable future performance as followed.

APP:

 DK can invest some money in developing an app with the order and pay online function, which will reduce staff’s work load and raise the running efficiency. People can order whatever they want before they step into DK, and just pick up there. By the way, mini-game related to donuts, something like candy crush, in this app may also stimulate people’s appetite for donuts when they just use it to kill time.  Through the above analysis, after deducting the APP development fee, we could still make a reasonable assumption that the revenue may increase.

Self-service Kiosk :

Have you guys ever used the convenient self-service kiosk in Mcdonald’s to order your meal instead waiting in the long queue?  So why doesn’t DK just imitate this successful running model? It is impossible to hire more staff immediately or just hire them during the peak hours, some people just could not wait so long a time and give up waiting in the queue. If there are self-service kiosks here, they can just turn to them when the staff are busy and wait to pick up their food. Furthermore, the staff can have more time to make coffee and donuts with less ording requests.