The Restaurant Industry Today Marketing Essay

The eating place constancy right popside marting EssayRestaurants ar one of the most highly correct descentes today. The nature of the ensure is starting a untested-made Asian eating ho recitation in North West capital of the United Kingdom. We decided to undecided the refreshedborn eating house in Wembley telephone exchange. According to the National Restaurant link, the eating house industry gross gross receipts argon anticipate to reach a record $537 billion in 2007 and they hold back estimated that at that place ar approximately 935,000 eating house-and- f atomic number 18 help centres. Firstly we request to do maiden blood plan in order to open a new eating house.Project objectivesOpening up a new Restaurant in Wembley central area bequeath meet the pastime garment of objectivesAchievement of compeverys objective which includes maximisation of shareholders wealth.Fulfil its growth organic in solelyy.Accomplishing customers requisite such as easy access to our stores and good customer returnss.Industry epitomeAlthough the eatery industry is in truth competitive and as the way out of people energize less time, resources, and ability to cook for them it is essendial that the eatery is healthy positioned for the cur roue interest and people get healthier regimens at moderate to low prices.The Restaurant Industry TodayThe food serve up business is one of the third largest industries in the country. It nebs for more(prenominal) than $240 billion sales annu onlyy. The independent eating house accounts for 15% of that native. According to a survey the number Ameri raise spends 15% of his/her income on meals eating extraneous from home. This number has been increase for the past seven years. In the last five years the restaurant industry has out- fulfiled the internal GNP by more than 40%.Due to the diverseness in people lifestyles, stinting climate, and due to the increase in the mannequin of products ther e are more than 600 restaurants opening every month and everywhere 200 more needed to detainment pace with increasing demand. approaching Trends Strategic OpportunitiesThe predicated expansion movement is very positive about(prenominal) in short and long-term projections. Folkney states again that as modern living creates more demands, people volition be pull outd to eat more meals away from home. According to the DMR Industrial Report (April 1995) estimates this as high as 30% everywhere the next five years.According to the National Restaurant plaque (1998) released that how the foodservice industry might look in the year 2000. many highlights from the panels findings are as followsConsumers result spend a superior quantity of their food dollar away from home. autarkical operator and entrepreneurs entrust be the master(prenominal) source of new eating place concept. fodder concern provide be fine at all types of foodservice operations, and food flavour bequeath b e of greater signifi female genitalsce.Ecological concerns bequeath receive change magnitude interest. feasibility StudyFinancial FeasibilityA Financial Feasibility shoot is an estimation of the pecuniary aspects of something. This project has been assessed in hurt of its fiscal feasibility and it feasibility in name of comprise and benefit digest. The benefit that merchantman be derived from this project and leave behind outweighs it initial live. Taking into account mental passage of restaurant with similar size in Wembley area, I devote use those performances as to project the judge cash flows where on average they both produce 10,000 per week. useable FeasibilityI barrack that this restaurant will be able to achieved these pited pay hold up period of five months to make back the initial investment funds. This abstract has been shown below appraise income per month 78,350/5 = 15,670Revenue per ply per operating hours 78,350/ (10*8) = 980 as part of company train policy, all staff will be well trained to deliver clear customer service standard.Revenue per week 15,670/5 =3,134Social and purlieu FeasibilityI have under aimn a mart a market research and environment s cigarettening 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 provide diametric kind of variety.TimescaleIn order to open a restaurant, we need to prepare business plan first. It will leave or so 1 month. About finding reparation and finding restaurant severalise will take 1 month. Finance the business will take 2 month because sometimes it takes time. Installation of electricity and equipment will take too 1 to 2 month. And last we need to obtain business licence.Task-1.2SWOT AnalysisSWOT Analysis is a tactical facility process used to evaluate the Strengths, flunkes, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the purpose of the business scarper or project and identifies the internal and external factors that are favourable and admonitory for achieving the business objective.StrengthsBrand equityThe Restaurant location ( Wembley area ) dependableness of foodConsumers choice at reasonable tax 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 fundsOpportunitiesA new spotlight complex is being built near byA new housing startment is plannedThreatsThe high street brand is abject into the areaA main competitor has lowered their pricesOur operational be are set to boost houseker AnalysisA PEST analysis stands for Political, Economic, Social, and Technological analysis and describes a frame live on of macro-environmental factors used in the environmental s groundworkning compone nt of strategic trouble.Political FactorsThis relates to direct daze of political influences and it impacts our project. In the case of this project topical anaesthetic anaesthetic council will maintenance to our business because it will create crafts as well as optimise councils tax revenue. Especially creating job is a major priority for the national government so they will be in support of the project. And likewise there will be less political risk that will affect this project such as government rejection of the propose moved, increased in tax at present time in very unlikely.Economic FactorsThe public economic environment shows that spending level among some people individual will fall due to difficulty in gaining credit tho most young people with relative useable 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 distribu tion, career sides 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 restaurant food. My study indicated that most people are Asian in Wembley area and will be interested in our Asian..Technological FactorsA technological factor includes the ecological and environmental aspects, such as RD activity, automation, applied science incentives and the rate of technological change. Here the impact of technological changes which we already possess 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 particularised urban issue. complete understanding of the likely roles and contributions of the many dissimilar stakeholders is a original narrow for a successful participatory urban Governance process, and st akeholder analysis is a basic tool for achieving this understanding.The Stakeholders areCustomersSuppliersEmployeesShareholdersCustomerseach of the stakeholders will have different expectation of an organisation. They try to sop up with customers. They provide sales data, monthly monitor of views. Their customer question time meeting help to identify and answer to changing customers needs.SuppliersThe relationship of interests between an organisation and its suppliers can be seen as very similar to that between the organisation and its customers, but reversed. They do first-string visits, meeting and discussions with suppliers. They have direct relationships with important raw material suppliers. Suppliers communication channel the business with all its business supplies. Suppliers may 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 Company try to engage with employe es. They have many ways such as internal communications including an employee magazine and regular business updates. Employees many want an increase in pay 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 command of certain rights deriving from what is seen to be acceptable in the way in which employees are treated within society.ShareholdersThe Company have shareholders. They do exhibition of feedback questions from individual shareholders. Shareholders are the owners of a company. Their precisely real involvement 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 guidance team responsible for achieving that direction.Oftentimes, the only difference between floating and drowning is the direction. Without the restaurant pecuniary analysis, a restaurant may be face downwardly without even knowing it.A restaurant financial analysis analyzes telephone number inflection such as lolly and goinges, cash flow, cost of sales and cost of labour. By assessing this data, operators can evaluate their finances and establish systems and organises to keep their restaurant a float.Restaurant financial analysis performance metricsProfits and lossesWhether we are produced monthly or hebdomadally, profit and loss financial statements give restaurant operators a broad overview of their sales history.But the reading only constructs useful when broken down to reflect the cost of sales, cost of labour and other overhead be. Restaurant financial analyses assess the profits and lossesWith a vital eye to settle on specific areas taht should be improved upon.. woo 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 4 0 percent? The answer can vary depending onA restaurants post (fast casual, casual or upscale) and menu mix.Restaurant financial analysis can help operator decide where their cost of sales should be by casting academic food and beverage costs. woo of labour apostrophize of labour is a nonher donor to cost of sales. A fine inception exists between overstaffing aRestaurant and scheduling enough employees to run a restaurant effectively. Sensible setting up and employee output are the beat out ways to control cost of labour. In addition, tools should be forthcoming to assess mid-shift needs. Many restaurateurs are unwilling to phase out employees in a timely fashion. Restaurant financial analysis can re-examine paysheet reports, 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 forec ast their success. A restaurant financial adviser can sketch a five-year plan and financial forecast ground on industry and division standards.Financial analysis can also be used to establish financial systems for a new restaurant. Wheels for cash handling, inventory, payroll and daily sales reconciliations should best established well in win of a restaurant opening. By implementing these systems early in the game, a restaurant can effectively monitor them, giving it a greater possibility of succeeding financially.Purchasing an breathing restaurantBefore the purchase of an existing eating place concept, restaurateurs should conduct financial analysis and feasibility studies to posit the productivity equiprobable of the operation. This can be sketchy by evaluating condition 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. That information will help establish proper financial systems or process existing ones to keep money 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 note 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 plectron 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 own 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 operateivityThis project will fit the business strategic of the restaurant because it will help gain competitive advantage, create new market for potential 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 way sDemographic population In west capital of the United Kingdom area, the population is very high. There are many Asian restaurants available in the area. And the all restaurants provide good work and good food. aliment 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 locomote in conducting a market analysis. It will help you recognize hazard 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 intense as growth continuesMajor food service chains will increase their shares of both sales and unitsIndependent operat ors 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 differentiation.Industry Tends ChecklistsGrowth in Industry SalesQuick-service vs. table-service drawing string vs. IndependentTypes of restaurants (steakhouses, ethnic)CateringDeli, bakery and takeout operationsMonthly/ seasonal dining out patternsIndustry sales outlookMarket carryEconomic trendsConsumer confidenceDemographic trendsFood away from home trendsFactors that inspire one to dine out Eating habits of different market segmentsfare PreferencesAppetizers/soupsEntreesSandwichesDessertsNutritional concernsMenu pricingAlcoholic beverage consumptionVegetarian trendsRestaurant Success FactorsNew and popular concepts/themesCustomer service innovationsPricing practicesFood production methodsLabour saving techniquesDebt-to-Sales ratios and other statisticsLegislative and Regulatory Issues communication channel 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 living. So restaurant is also provide verity of foods and dices serve.But in our restaurant all different from other like blue ginger, Panther, Tikka world, Bombay bits etc .these all are our competitors but we provide best go, best food, best drinks so automatically our restaurant beet our restaurant .Competitive StrategyThere are terce 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 restauran t 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.com (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 teared property from an individual landlord in west London as a perfect 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, timpanis, refrigerators (table, chairs, spoon, glasses and cash registers).Labour Ten staff formula standard hours (8 hours per day) and contractors the fixed day of work for one month.Finance nigh banks and lenders require you to put some of your own money into the business and unconnected to popular belief, 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 require outright 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 coat 8000.Labour External contractors for refurbishment are expected at 12,500 this will includes electrician, refurbishing the restaurant and painting the res taurant.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 project will recoup its initial investment within four months time and that revenue open can be used to pay of principal contribute plus interest.Budget for the ProjectThis project has been computeed on the grounds of aught based cyphering 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 tenderness of a given interference it is a n analysis of the cost success of different alternative in order to see whether the benefits outweigh the costs. The aim is to smoke the competence of the involvement relative to the status quo. The costs 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 core it has on their benefit as it would be valued by them. geezerhood0123 register value78,3503,90,1801,090,8601,072,163 fortune50%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 idea of about 2.01 million in three years time. However take 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 FundsConstruction65,000 go in Refrigerator10,000Cooler for Beverages5,000Stove oven5,000Deep Fryer4,000Two sinks for Kitchen1,000 cook500Toaster100Cash Register400 piece of furniture7,000Dinnerware1,000Pots 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 net incomesTaxesInsuranceLabour/payrollUtilitiesLoan paymentsOperational suppliesRepairs and maintenanceMarketingTrainingFood 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 weeny part to operational charge, promotion, taxes, continuation and other patchy costs. These are strictly sketchy plan to follow, as every restaurants payment and budget are different. Look below for a graphical image of these suggested expendituresKnow Your Breakeven phaseThe cope point is the volume of sale needed to cover all charge without making a profit. It is the bare least amount of money amount of sales the restaurant process needs to bring in to survive. It is central to know your restaurant breakeven point so that future monetary decisions can be made in hopes of making a r easonable profit. go bad 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 interchange was self-colored-minded by taking actual Profit and Loss statement from different eating place concepts and then using our price structure and guest counts to arrive at costs. circumspection 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 be 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 scale down 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 soulnel 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 information and instruction 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 rearing 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 team spiritImproved 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 completed application forms has arrived in the post. Selections then involve choosing a suitable applicant through a range of ways of make-up out suitable candidates leading 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 tra ining objective is very important because it determine the calculated and content of the training programme. Contents of the training stay put the same no affair the type of training occupied. It is to increase personnel efficiency, professional growth and self-possessed and more useful organizations operations.Methods of Training and DevelopmentOn the job training/coaching This relates to formal training on the job. A actor becomes undergo on the job over time due to modification of job behaviours at the point of training or acquisition of skills.Induction/ taste 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. mansion This is done through e ngineering part for the purpose of skills and technology transfer. It is consequently achieve through residency of an individual within anothe