Johnny and Jugnu, a local burger joint has of late taken Lahore by storm. As tempting as it sounds, that, however, is not the reason we decided to profile them in this issue of Profit. The fashion in which they have achieved this popularity – having defied almost every conventional business strategy, that too, in slightly over a year, is what caught our attention the most. And it is precisely this that made us curious to explore their peculiar (yes, peculiar) style of business.
In the retail industry, we are told, the three most important factors for success are location, location and location. If this is believed to be true, Johnny and Jugnu could not have made any worse a choice on that count. But despite the open rebellion to business norms, their burgers sell like hot cakes.
Business strategy and all those fancy principles can go right out the window.
So what exactly is fuelling their fame? Going by local market pricing, their product is neither cheap nor expensive. And if one were to make something of the luxury cars parked outside their outlets, low price is probably not the primary drive attracting customers. Service then? Johnny and Jugnu is a self-service eatery; and with it being a takeaway only, the ambience score doesn’t really matter either with people eating in their cars or queued outside waiting for their orders. So the traditional factors affecting businesses aren’t really applicable here. As for marketing, well, there are no billboards or magazine adverts, and certainly no big marketing budgets.
It really must be the burgers then, no? Well, the burgers are fairly decent, no doubt about that. But any burger-lover would vouch that beef burgers are the real deal; in fact, the only deal. However, they only have chicken burgers. And yet, lo and behold, they are flooded with customers. Is there a method to this madness? This, we explore from page 16
If you are serious about your money then you just can’t afford not to read our cover story on the cement sector. You will probably not find a more comprehensive report on why you should or should not invest in this sector which has had an unprecedented run on the bourse for the last half a decade. Can the sector continue to make its shareholders rich, we examine in this story.
And how can our issue be complete without a story following the madness surrounding Black Friday? Discover more from page 46