Mitchells and Butlers: Business Analysis of the UK Hospitality Leader Case Study

Examining the Growth, Ethics, and Strategy of Mitchells and Butlers

Company Background

Mitchells and Butlers is a British company that operates pubs, bars, and restaurants across the UK. The corporation was founded in 1898 and has a long history in the hospitality industry. Today, the corporation is one of the largest operator of pubs and restaurants in the UK, with over 1,700 locations under various brands including All Bar One, Harvester, Miller & Carter, Toby Carvery, and more. In addition to its focus on customer satisfaction and sustainability, Mitchells and Butlers is also committed to supporting its employees and creating a positive work environment (Sofronov, 2019). The company provides training and development opportunities, as well as a range of benefits and incentives to its staff. The company operates a diverse portfolio of pubs, bars, and restaurants across the UK.

They offer a wide range of services and products to its customers. This includes, the company also operates over 169 bars under brands such as All Bar One, Miller & Carter, and Nicholson's. These bars offer a range of cocktails, drinks, and snacks in a stylish and comfy setting. The Company operates over 1,300 pubs across the UK under various brands such as Ember Inns, Sizzling Pubs, and Castle (Kloutsiniotis and Mihail, 2020). Each pub offers a unique atmosphere and selection of drinks, as well as pub-style food. They have over 200 restaurants under brands such as Harvester, Toby Carvery, and Browns (Ntounis, et. al. 2022). These restaurants serve a variety of cuisines, including British, American, and European, with a focus on quality ingredients and customer satisfaction. Mitchells and Butlers also operate over 40 inns and hotels under brands such as Innkeeper's Lodge and Crown Carveries. These venues offer comfortable and affordable accommodation for travellers.

External Analysis

Identification of customers and examination of their needs

The brand targets urban professionals who are looking for a sophisticated and stylish bar experience, with a focus on wine and cocktails. This family-friendly eating place chain targets family and groups who are look for a relaxed dining familiarity with a focus on comfort food. the corporation targets customers who are looking for a traditional British roast dinner, with a focus on quality meats and vegetables (Koseoglu, et. al. 2021). They target clientele who are looking for a more reasonably priced and casual pub experience, with a focus on classic pub grub and drinks.

The company focuses on providing high-quality drink and food to its consumers. This includes sourcing fresh ingredients, preparing dishes with care, and offering a range of options to cater to different tastes and nutritional requirements. The company prioritizes create a comfy and welcoming ambience for customers, whether that's through stylish decor, friendly staff, or amenities like outdoor seating areas. They brands target more upscale customers, others focus on providing affordable dining and drinking options that offer good value for money. With locations across the UK, Mitchells and Butlers aims to provide convenient dining and drinking options for customers. This includes offering takeaway and delivery options, as well as providing accommodation for travellers (Farmaki, et. al. 2020). By understanding these common needs and priorities among its customers, Mitchells and Butlers can better tailor its products and services to meet their expectations and stay competitive in a crowded market.

Analysis of the company’s competitive situation by using PESTLE Analysis model

PESTLE analysis is a framework used to analyze the external factor that can impact a business.

• Political Factors: the corporation operates in the UK, which has a steady political environment. However, change in government policies, such as minimum wage, tax laws, or labour system can impact the company's operations and profitability.
• Economic Factors: The hospitality industry is responsive to economic conditions, such as economic enlargement, inflation, or customer spending patterns. A recession in the economy may lead to a reduce in customers' disposable income and affect their expenditure on dining and drinking.
• Social Factors: the industry is largely influenced by altering social trends and preferences. For example, enlarged concerns about health and wellbeing may lead to a shift in the direction of healthier food and drink options (Capobianco, al. 2021).
• Technological Factors: this can have a main impact on the hospitality industry, mainly in areas such as mobile payments, online ordering, and digital marketing. The company have invested in digital platforms to improve the customer experience, but it may need to carry on to adapt to altering consumer behavior in this area.
• Legal Factors: The hospitality business is subject to various laws and regulations, such as licensing, safety and health , and employment regulations. Mitchells and Butlers must ensure compliance with these regulations to avoid legal and reputational risks.
• Environmental Factors: the company operations have an impact on the environment, particularly in areas such as food waste, energy consumption, and greenhouse gas emissions (Beatrix and Irawan, 2022). The company has implemented several sustainability initiatives to mitigate its environmental impact and meet the growing expectations of its customers.

Internal Analysis

An internal analysis of the corporation can help to assess the company's capabilities in meeting the requirements of its customers. This allows the corporation to reach a wider customer base and offer a variety of drinking and dining experiences. The business has a reputation for provide high-quality food and drink, which is needed in meeting buyer expectations. The corporation sources fresh ingredients, prepares dishes with care, and offers a range of options to cater to different tastes and dietary requirements (Ivanov, et. al. 2019). The hospitality industry is highly cut-throat, and customer service is essential in attracting and retains customers. Mitchells and Butlers train its staff to provide friendly and attentive service, which contributes to a positive customer experience. The company has embraced technology to enhance the customer experience, such as implementing digital ordering and payment systems, and launching a loyalty program. The company also regularly update its menus to imitate changing customer preferences and trends (Capobianco, et. al. 2021). The business has made a pledge to sustainability by reducing its environmental impact and promotes moral and responsible practices. This reflects the growing importance of sustainability among customers and can help to attract and retain environmentally conscious customers. The business has strong focus on operational efficiency, which allows them to provide a high level of service while controlling costs. This is vital in meeting consumer expectations for value for currency.

The Porter's Five Forces model is a structure used to analyze the competitive forces in an industry.

• Threat of New Entrants: The hospitality business has moderately low barriers to entry, which means that new contestant can enter the market with relative effortlessness (Law, al. 2020). However, the significant capital requirements, complex regulatory environment, and established brand recognition of existing players such as Mitchells and Butlers can deter new entrants.
• Bargaining Power of supplier: the hospitality industries rely heavily on supplier of food and drink, and suppliers' bargain power can impact the profitability of company However, they have a diverse portfolio of brands, which allows it to negotiate better prices and terms with its suppliers.
• Bargaining Power of Buyers: consumers in the hospitality industry have high bargaining power. To address this, the company have implemented various initiatives to enhance the customer understanding, such as offering promotions and loyalty programs.
• Threat of Substitute Products: consumers have various options for drinking and dining, including fast food restaurants, cafes, and delivery services. Though, the company have a diverse portfolio of brands, each offering a unique experience, which can mitigate the threat of substitutes.
• Competitive Rivalry: The hospitality industry is highly competitive, and Mitchells and Butlers face competition from various players, including independent restaurants, fast food chains, and other hospitality providers (Nangpiire, al. 2022).

Ethical in business

 Mitchells and Butlers have taken a number of actions to implement ethics inside the company and encourage moral conduct. The company has a comprehensive code of conduct that describes its ethical core values and business partners, suppliers, and workers. The code addresses a number of subjects, including data security, bribery and deceit prevention, and diversity and inclusion. To ensure that employees are aware of the company's ethical standards and how to act ethically at work, the business offers principles training. Topics including divergence of attention, annoyance, and favouritism are covered in the training. Employees may disclose any suspected misbehaviour or unethical behaviour without fear of retaliation under the company's whistleblowing policy (Nannelli, et. al. 2019). The policy guarantees that issues are looked into and properly handled.They have made undertaken its step to sustainability and ethical business practices. The corporation has set targets to decrease its environmental impact, such as reducing carbon emissions and waste. It also supports local community and sources its component responsibly. The business has a robust procurement procedure that ensures suppliers meet its ethical and sustainability principles. The business assesses suppliers based on criterion such as working conditions, human rights, and environmental impact (Nyanga, et. al. 2020).

Future Development

Mitchells and Butlers could take to address potential issues and ensure ethical considerations are incorporated into its marketing activities. This involves review its marketing channels to make sure that they are effective in reaching the target audience and comply with ethical standards. The company should also consider the impact of its marketing on the environment and society. The company should conduct market research to improved understand the needs and preferences of its target audience. This can help ensure that its marketing messages are relevant and resonate with customers. The company should develop a comprehensive marketing plan that aligns with its target audience, business objectives, and ethical standards. The plan should also comprise metrics to measure the effectiveness of its marketing activities. The company should ensure precision in its marketing activities by providing apparent and accurate information about its products and services. This can help build trust with customers and avoid potential legal issues. They should monitor its social media channels to ensure that customers are engaging with its brand absolutely and that any negative commentary or feedback is addressed promptly. The company should ensure that its advertising complies with applicable advertising standards and regulations. This can help evade any legal or reputational issues. The company should support customers to provide feedback on its marketing activities. This can assist the business identify areas for development and ensure that its advertising activities are gathering customer needs and expectations.

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