The Restaurant Industry Today Marketing Essay

The Restaurant Industry Today Marketing EssayRestaurants are one of the most passing regulated disdaines today. The nature of the view is starting a new-made Asian eating tail in North West capital of the United Kingdom. We dissolved to open the new eating place in Wembley central. According to the National Restaurant Association, the eating house industry gross revenue are judge to reach a record $537 trillion in 2007 and they endure estimated that there are approximately 935,000 restaurant-and-food service centres. Firstly we need to do first commerce plan in order to open a new restaurant.Project intentionsOpening up a new Restaurant in Wembley central demesne leave meet the following set of objectivesAchievement of partys objective which includes maximisation of shareholders wealth.Fulfil its growth organically.Accomplishing clients requirement much(prenominal) as easy access to our butt ins and good customer services.Industry depth psychologyAlthough the restau rant industry is really competitive and as the number of stack reach slight time, re line of descents, and ability to cook for them it is important that the restaurant is nearly positioned for the current interest and people foreshorten healthier foods at moderate to low prices.The Restaurant Industry TodayThe food service business is one of the third largest industries in the country. It accounts for more than $240 billion sales annually. The independent restaurant accounts for 15% of that total. According to a survey the average Ameri commode turn everywheres 15% of his/her income on meals eating away from home. This number has been change magnitude for the past seven classs. In the last five years the restaurant industry has out-performed the national GNP by more than 40%.Due to the change in people lifestyles, stinting climate, and due to the ontogeny in the variety of products there are more than 600 restaurants opening e precise month and over 200 more needed to ke ep pace with increasing demand.Future Trends Strategic OpportunitiesThe predicated expansion movement is very positive both in short and great-term encounterions. Folkney states over again that as modern living creates more demands, people result be forced to eat more meals away from home. According to the DMR Industrial Report (April 1995) estimates this as high as 30% over the next five years.According to the National Restaurant organization (1998) released that how the Foodservice industry might look in the year 2000. Some highlights from the panels findings are as followsConsumers provide spend a superior quantity of their food dollar away from home.Independent operator and entrepreneurs allow be the important source of new eating place concept.Food concern will be critical at all types of foodservice operations, and food flavour will be of greater signifi terminatece.Ecological concerns will receive increased interest.Feasibility StudyFinancial FeasibilityA Financial Fe asibility study is an attachment of the financial aspects of something. This befuddle has been assessed in terms of its financial feasibility and it feasibility in terms of equal and benefit summary. The benefit that can be derived from this project and will outweighs it initial court. Taking into account performance of restaurant with similar size in Wembley area, I have utilize those performances as to project the expected cash flows where on average they both produce 10,000 per week. useable FeasibilityI recommend that this restaurant will be able to achieved these targeted pay dorsum terminus of five months to make back the initial investment. This abbreviation has been shown belowRevenue per month 78,350/5 = 15,670Revenue per staff per operating hours 78,350/ (10*8) = 980 as part of company training policy, all staff will be well trained to deliver excellent customer service standard.Revenue per week 15,670/5 =3,134 complaisant and Environment FeasibilityI have undertak en a market a market research and environment scanning to ascertain whether there will be interest on our restaurant, what is the demographic settlement like in terms of food. My study indicated that most people will like our food because we will declare oneself different kind of variety.TimescaleIn order to open a restaurant, we need to prepare business plan first. It will take around 1 month. just about finding location and finding restaurant name will take 1 month. Finance the business will take 2 month because sometimes it takes time. Installation of electricity and equipment will take also 1 to 2 month. And last we need to obtain business licence.Task-1.2SWOT AnalysisSWOT Analysis is a tactical preparation process used to evaluate the Strengths, flunkes, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the subprogram of the business course or project and identifies the internal and external factors that are favourable and unf avourable for achieving the business objective.StrengthsBrand equityThe Restaurant location ( Wembley area )Reliability of foodConsumers choice at reasonable value and great serviceCheaper price than othersWe have take-away optionDifferent menu itemsWeaknessQuality and taste of productsOur restaurant is new and non establishedOur restaurant has poor disabled facilitiesLimited monetary resourceOpportunitiesA new office labyrinthine is being built near byA new housing ontogenesis is plannedThreatsThe high street brand is moving into the areaA main competitor has lowered their pricesOur working(a) be are set to boostPEST AnalysisA PEST analytic thinking stands for Political, Economic, accessible, and Technological psychoanalysis and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.Political FactorsThis relates to direct impact of political influences and it impacts our project. In the case of this project local council will support to our business because it will create rent outs as well as optimize councils levy revenue. Especially creating job is a study priority for the national government so they will be in support of the project. And also there will be less political jeopardize that will affect this project such as government rejection of the propose moved, increased in tax at present time in very unlikely.Economic FactorsThe general economic environment shows that spending level among some people someone will fall due to difficulty in gaining credit but most young people with relative disposable income can at least spend and these are the people we are targeting.Social FactorsSocial factors mainly include the educational aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. In this area I have undertaken a market research and environment scanning to ascertain whether there will be interest on our rest aurant food. My study indicated that most people are Asian in Wembley area and will be kindle in our Asian..Technological FactorsA technological factor includes the ecological and environmental aspects, such as RD activity, automation, engineering science incentives and the rate of technological change. Here the impact of technological changes which we already possessed will help the company to gain competitive advantages such as e-commerce.Stakeholder AnalysisA Stakeholder Analysis is a essential tool for identifying those people, groups and organisations that have significant and genuine interests in a specific urban issue. force out understanding of the likely roles and contributions of the umpteen different stakeholders is a original condition for a successful participatory urban Governance process, and stakeholder analysis is a canonic tool for achieving this understanding.The Stakeholders areCustomersSuppliersEmployeesShareholdersCustomers to each one of the stakeholders will have different expectation of an organisation. They try to engage with customers. They provide sales information, monthly monitoring of views. Their customer indecision time meeting help to identify and respond to changing customers needs.SuppliersThe relationship of interests surrounded by an organisation and its suppliers can be fancyn as very similar to that between the organisation and its customers, but reversed. They do regular visits, meeting and discussions with suppliers. They have direct relationships with important raw material suppliers. Suppliers stock the business with all its business supplies. Suppliers whitethorn want an increase in wages. Suppliers have an interest in ongoing and mutually beneficial business relationships, and they expect to be paid on time.EmployeesThe come with try to engage with employees. They have many ways such as internal communications including an employee magazine and regular business updates. Employees many want an increase in p ay rise. Staffs have a very big interest in the business in the form of wages, bonuses, discounts and holidays pensions. Employees interests may be seen as the assurance of certain rights deriving from what is seen to be acceptable in the way in which employees are treated in spite of appearance society.ShareholdersThe Company have shareholders. They do collection of feedback questions from individual shareholders. Shareholders are the owners of a company. Their only real affair in the organisation will be at the Annual General Meeting, when they are called upon to approve, by a vote, the overall direction of the organisation and the senior management team responsible for achieving that direction.Oftentimes, the only difference between floating and drowning is the direction. Without the restaurant financial analysis, a restaurant may be face downwards without even knowing it.A restaurant financial analysis analyzes routine metrics such as dinero and losses, cash flow, cost of s ales and cost of labour. By assessing this data, operators can evaluate their finances and establish systems and structures to keep their restaurant a float.Restaurant financial analysis performance metricsProfits and lossesWhether we are produced monthly or weekly, profit and loss statements give restaurant operators a broad overview of their sales history. alone the information only becomes effective when broken down to reflect the cost of sales, cost of labour and other overhead costs. Restaurant financial analyses assess the dough and lossesWith a vital eye to settle on specific areas taht should be improved upon.. exist of salesA restaurants cost of sales, sometimes referred to as cost of goods, is the sum of all expenses associated with producing the menu items.Should food costs be running at 20 percent or 40 percent? The adjudicate can vary depending onA restaurants positioning (fast casual, casual or upscale) and menu mix.Restaurant financial analysis can help operator de cide where their cost of sales should be by building academic food and beverage costs.Cost of labourCost of labour is another donor to cost of sales. A fine line exists between overstaffing aRestaurant and scheduling enough employees to run a restaurant putively. Sensible setting up and employee railroad siding are the top hat ways to control cost of labour. In addition, tools should be available to assess mid-shift needs. Many restaurateurs are unwilling to phase out employees in a timely fashion. Restaurant financial analysis can re-examine payroll depicts, sales reports and customer counts to optimize Scheduling and productivity and decrease cost of labour.When to undergo restaurant financial analysisOpening a new restaurantWhen opening a restaurant, restaurateurs can make use of financial analysis to forecast their success. A restaurant financial consultant can sketch a five-year plan and financial forecast based on industry and variation standards.Financial analysis can al so be used to establish financial systems for a new restaurant. Wheels for cash handling, inventory, payroll and daily sales reconciliations should trump established well in advance of a restaurant opening. By implementing these systems early in the game, a restaurant can effectively monitor them, enceinte it a greater chance of succeeding financially.Purchasing an existing restaurantBefore the purchase of an existing eating place concept, restaurateurs should conduct financial analysis and feasibility studies to determine the productivity probable of the operation. This can be sketchy by evaluating pattern and trend in the restaurants past presentation and estimate the effect of probable changes.Running an operating restaurantRestaurant financial analysis is not just for new operations. Generally, it is most beneficial for restaurants already in operation. Whether a restaurant has been in business for a year or 20, financial analysis can help identify losses and hidden costs. Tha t information will help establish proper financial systems or process existing ones to keep silver from slipping through the crack.Who can perform a restaurant financial analysis?Restaurant financial analysis shouldnt be performed by just any financial consultant. It is best to work with consultants that specialize within the restaurant industry.The main goal of restaurant financial analysis is to help operator understand how their restaurant can become more profitable. A restaurant-specific consultant can explain the analysis course and their findings in terms that restaurant operators will know.A financial consultant will know the aim routine metrics for specific restaurant categories and the industry as a whole. They can provide guidance for the selection and performance of point-of-sale and accounting systems and show operators how to get best results from these systems.A financial consultant can help eating place operators build the necessary tools to pull and analyze their ow n financial reports. Eventually, financial analysis should be ongoing, becoming an everyday part of a restaurants thinking.Restaurant financial analysis doesnt just keep a restaurant floating, it helps their business fly.Task-1.3Market competitively and ActivityThis project will fit the business strategic of the restaurant because it will help gain competitive advantage, create new market for effectiveness customers, gain market share in as well as responding to changes in business environment, increase profitability, establish local branch, obtaining new customers, expansion of business and improve companys image which could be achieved since there is an existing market gap which we can fill via Ansoffs matrix.Marketing Analysis shows that this project will make the business more competitive in the following waysDemographic population In west London area, the population is very high. on that point are many Asian restaurants available in the area. And the all restaurants provide g ood services and good food.Food variety The social society will be interested in our food because we will provide variety in the food along with music.Market gap the economic feasibility have highlighted that our competitors are doing well in these area.Industry TrendsStudying industry trends is one of the first steps in conducting a market analysis. It will help you recognize opportunity and threats in the industry that may affect your productivity. Consider the following Food Service Industry 2000 Trends, reported by the National Restaurant AssociationConsumers will spend a greater portion of their food dollars away from homeCompetition in the food service industry will be more strong as growth continuesMajor food service chains will increase their shares of both sales and unitsIndependent operators will be the main source of new restaurant conceptsNutritional concerns will be critical at all types of food service operations andService will become a more important point of differ entiation.Industry Tends ChecklistsGrowth in Industry SalesQuick-service vs. table-serviceChain vs. IndependentTypes of restaurants (steakhouses, ethnic)CateringDeli, bakery and takeout operations periodic/seasonal dining out patternsIndustry sales outlookMarket DemandEconomic trendsConsumer confidenceDemographic trendsFood away from home trendsFactors that actuate one to dine out Eating habits of different market segmentsMenu PreferencesAppetizers/soupsEntreesSandwichesDessertsNutritional concernsMenu pricingAlcoholic beverage consumptionVegetarian trendsRestaurant triumph FactorsNew and popular concepts/themesCustomer service innovationsPricing practicesFood production methods wear saving techniquesDebt-to-Sales ratios and other statisticsLegislative and Regulatory IssuesBusiness meal tax deductibilityHealth insuranceWage and hour requirementsAmericans with Disabilities ActCompetition-This is restaurant in the area is very good because in this area almost Indian and mix people l iving. So restaurant is also provide verity of foods and dices serve.But in our restaurant totally different from other like down in the mouth ginger, Panther, Tikka world, Bombay bits etc .these all are our competitors but we provide best services, best food, best drinks so automatically our restaurant beet our restaurant .Competitive StrategyThere are three major ways in which we will create an advantage over our competitorsproduct identity, quality, and noveltyhigh employee motivation and good sales attitudeInnovative and aggressive service optionsThe restaurant will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one healthy selection on their menu. The target market will perceive the restaurant as the destination location for healthy, low-fat cooking.The main points are Pricing, Location, Reputation, Image/Brand, Choice/Variety, Service and Atmosphere.Referenceswww.essortment.co m (12th June 2010 )www.awib.org (12th June 2010 )www.mplans.com (12th June 2010 )www.virtualrestaurant.com (12th June 2010 )http//www.bplans.co.uk/steak_buffet_restaurant_business_plan/financial_plan_fc.cfm (12th June 2010Part 2Task 2.1ResourcesMaterials Rented property from an individual landlord in west London as a absolute location for the new restaurant to be open, this is critical factor in terms of visibility and easy access of the restaurant for our customers.Equipments Different kinds of restaurant will require different kinds of equipment. Typically equipment needed to open a restaurant includes a service kitchen (oven, microwave, heat lamps, prep tables and dish washer, fryers, boilers, refrigerators (table, chairs, spoon, glasses and cash registers).Labour Ten staff normal standard hours (8 hours per day) and contractors the fixed day of work for one month.Finance Most banks and lenders require you to put some of your own money into the business and contrary to popular b elief, they do lend money for businesses. The project financed can be source from long term borrowing from bank in Iceland of 50,000 to finance the project deliverables.Cost Associated With ResourcesThese are one-off capital cost required immediately to deliver project deliverables.Materials property rent in west London area will requires a normal rental agreement with the landlord. A deposit of 15,550 plus one months rent in advance including council tax will be require total 32,350.Equipments Kitchen equipment will cost 10,000, boiler will cost 2000, till and it maintenance will cost 12000 and general things e.g. tables, chairs will come on 8000.Labour External contractors for refurbishment are expected at 12,500 this will includes electrician, refurbishing the restaurant and painting the restaurant.Sources of FinanceThe project financed can be source from long term borrowing from bank of 78,350 to finance the project deliverables. They could be approach on the based that this pr oject will recoup its initial investment within four months time and that revenue generate can be used to pay of principal loan plus interest.Budget for the ProjectThis project has been budgeted on the grounds of Zero based budgeting which involves identification of tasks to be performed and then funding resources to complete the task independent of current resourcing it ensure that resources are efficiently allocated. The project budgets have been made on this bases with each cost justify in terms of their usage in the projectResources CostRent16,800Total16,800Resources CostDeposite15,550Equipments32,000Labour12,500Miscellaneous expenses1,500Total61,550Cost Benefit AnalysisCost Benefit Analysis is classically used by governments to assess the attraction of a given interference it is an analysis of the cost success of different alternative in order to see whether the benefits outweigh the costs. The aim is to gauge the competence of the involvement relative to the status quo. The co sts and benefits of the impacts of interference are evaluated in terms of the publics willingness to pay for them (benefits) or willingness to pay to avoid them (costs). Inputs are typically measured in terms of opportunity costs the value in their best alternative use. The guide attitude is to list all of the parties affected by an intervention, and place a monetary value of the outcome it has on their benefit as it would be valued by them.Years0123 point value78,3503,90,1801,090,8601,072,163Probability50%50%50%Certainty equivalent1,95,0905,45,4305,36,082D.F 9%1.0000.8800.9450.820Present value(75,000)1,71,6795,15,4314,39,587NPV10,51,697The project is viable because it will yields to shareholder wealth conception of about 2.01 million in three years time. However incorporate rick to the cash flows using certainty equal, and for the fact that current economic climate in terms of expenses will affect all industries, I am certain that the 50% of the cash flows will be generate in each of the years. This is show belowOne time investmentBudget Overview Sources of FundsProposed Loan from Bank100,000Uses of FundsConstruction65,000Walk-in Refrigerator10,000 army tank for Beverages5,000Stove oven5,000Deep Fryer4,000Two sinks for Kitchen1,000Microwave500Toaster100Cash Register400Furniture7,000Dinnerware1,000Pots and Pans1,000Plan by month or PeriodMost of the restaurants use a scheme of 12-month or 13 four-week periods to way their yearly accounts. By infringement the budget down into these types of sections, it is easier to see when money is moving in and out of the eating place.Anticipate Your CostsIn the eating place, budget is often a game of evaluation costs and income. In fact, a budget is much like a profit and loss (PL) account extended over a longer period of time. Be set to account for the following costs in your yearly budgetRent or mortgage earningssTaxesInsuranceLabour/payrollUtilitiesLoan paymentsOperational suppliesRepairs and maintenanceMarketingTrain ingFood service professional recommend that you plan to spend about 30 percent of your budget on food, 25 percent on labour, 10 percent on rent or advance, and 3 percent on utilities.1 The rest goes in small part to operational charge, promotion, taxes, continuation and other patchy costs. These are purely sketchy plan to follow, as every restaurants payment and budget are different. Look below for a graphical image of these suggested expendituresKnow Your Breakeven PointThe cope point is the volume of sale needed to cover all charge without making a profit. It is the send least amount amount of sales the restaurant process needs to bring in to survive. It is central to know your restaurant breakeven point so that rising monetary decisions can be made in hopes of making a reasonable profit.Analyze Your Financials Every PeriodExploratory your PL and your budget on a weekly and monthly basis will help you keep your bases covered in terms of realize your payment and income. Appraise your budget operational payment and your actual expenses, as well as the net profit you expected and what your eating place actually made. Make a note of any areas in which your expenses exceed your budget amount.When budgeting for the year, especially if you are doing so for the first time, it helps to have a budget worksheet. Download a sample budget worksheet to your own back office computer.Cost of Goods Sold The cost of goods sold was strong-minded by pickings actual Profit and Loss statement from various eating place concepts and then using our price structure and guest counts to arrive at costs.Management Payroll Figures are based upon the use of five managers per unit at our maximum bonus and salary levels. If we use four managers per restaurant, this will lower our payroll.Fixed and Variable Expenses The various fixed and variable expenses were determined by taking actual numbers from several different restaurant concepts.Marketing Fees These funds will be used for the production of various marketing materials.Advertising These funds will be used, if necessary, to maintain our sales at projected levels. If we are management appreciably ahead of our sales projection, then these funds may not be necessary.Management Fees We will use these pounds for accounting and payroll services of our firm. As we grow in size, this cost burden will shrink per store due to efficiencies in volume.Important AssumptionsThe financial plan depends on important assumption, most of which are revealed in the following table as annual assumption. The journal assumptions are included in the annotation. Interest rates, tax rates, and personnel burden are based on traditional assumptions. Some of the more important causal assumption isWe assume a strong economy, without a major recession.We assume, of course, that there are no unforeseen changes in consumers tastes or interests to make our concept less competitive.Task 2.2ReportTO ManagementFROM Project ManagerDATE 20th May 2009SUBJECT Staff Development and Training CostIntroductionThis report is concerned staff training and development it related cost associated to this project. The company sales force plays a vital role in delivering better customer services and each member have different training needs depending our their position. The companys their future depends on nurturing great individual talent and providing an environment where staff can flourish personally and professionally. Successful training will help to develop the following skills.Deliver excellent customersWell motivatedIncrease morale improve job and staff performance.Recruitment takes place from the point when a business decides that it needs to employ somebody up to the point where a pile of complete application forms has arrived in the post. Selections then involve choosing a suitable applicant through a range of ways of organization out suitable candidates guide to interview and other tests. Training involves providing a range of planned performance that enable an employee to develop the skill, attitudes and knowledge required by the organisation and the work required.A job account is also helpful because it sets outThe job description can be sent out to probable candidate along with a person arrangement, which sets out the pleasing and vital description that someone will need to have to be selected to the post.A variety of media will be used to be a magnet for applications e.g. national newspapers for national jobs, and local papers and media for local posts.Objectives of Training and DevelopmentThe main objective of staff training and development is to improve the qualities of the trainee, formulation of objectives for different needs and ways to achieve it. The training objective is very important because it determine the calculated and content of the training programme. circumscribe of the training stay put the same no matter the type of training occupied. It is to increase personnel efficiency, pro fessional growth and smooth and more useful organizations operations.Methods of Training and DevelopmentOn the job training/coaching This relates to formal training on the job. A worker becomes experienced on the job over time due to modification of job behaviours at the point of training or acquisition of skills.Induction/orientation This is carried out for new entrants on the job to make them familiar with the total corporate requirements like norms, ethics, values, rules and regulations.Apprenticeship A method of training where an unskilled person understudies a skilled person.Demonstration Teaching by example, whereby the skilled worker performs the job and the unskilled closely observes so as to understand the job.Vestibule This is done through engineering part for the purpose of skills and technology transfer. It is therefore achieve through residency of an individual within anothe