...1 1 Research Methodology 2 2 Restaurant Industry Analysis 2 Market Segmentation 4 3 Need Gap Analysis 5 3.1 Changing Lifestyles and Preferences 5 3.2 Increasing number of working female population 6 3.3 Growing tourism industry 8 3.4 Health conscious consumer segment 8 3.5 Increasing Nuclear Families 8 4 Innovativeness 9 4.1 Uniqueness 9 5 Advantages over Competitors 9 6 Implementation Strategy 10 6.1 Marketing Strategy 10 6.1.1 Web-based Marketing Strategy 10 6.2 Sales Strategy 11 6.2.1 Scalability and Sales Forecast 11 7 Personnel Plan 12 8 Financial Planning 13 8.1 Projected Cash Flow 13 8.2 Break-even Analysis 13 8.3 Projected Profit and Loss 14 8.4 Projected Balance Sheet 15 8.5 Business Ratios 16 1 Research Methodology “Exploratory” research has been conducted in order to study the Indian Restaurant sector and gather data necessary for chalking out a business plan for opening a QSR. Major portion of the findings and analysis are based on: * Literature review from multiple sources * Exhaustive Secondary research The workflow for the study/research has been outlined in the figure given below. 2 Restaurant Industry Analysis Restaurant market in India is growing fast due to the increasing number of people eating out. * Restaurant/Food service market in India has witnessed tremendous growth in recent years * With increasing number of people eating out the industry offers major opportunities to the...
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...Executive Summary Industry and macro-environmental analyses of the international restaurant industry provides an overview of the industry and reveals the conditions that impact competitiveness and profitability of the industry’s players. The industry is split in two sectors: full-service restaurants (FSR) and limited-service restaurants (LSR). FSRs typically have a wait-staff; LSRs do not have wait-staff. The top five countries, in terms of total number of foodservice outlets, are: China, India, Brazil, Japan, and the US. The industry is of low concentration. Combined, the top industry players make up less than 3% of total global industry revenues. In terms of size, 2013 global sales were $2.6T, up 4.9%. The 2013 global labor force was 62.4M employees, up 2.4%. In accordance with Porter’s Five Forces framework, the forces that shape competition in the restaurant industry have a moderate to high impact on competitiveness. There is a moderate threat of new entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity...
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...Human Resources in the Restaurant and Hospitality Industry 8/13/2015 In the restaurant and hospitality industry, the manner in which human resources (HR) management is handled is largely dependent on the size of the company. This can present problems for smaller organizations that may not place a large emphasis on HR management until it’s too late. Many companies are corporate-owned and HR management processes are established at higher levels than just the specific locations where a majority of employees work. In smaller organizations, however, these policies are typically not established beyond the most basic, simplistic measures. These problems can largely be mitigated by placing a forward-thinking approach to HR management, and making adjustments to compensate for the business’ current organizational structure, or lack thereof. There are a number of difficulties in the nature of HR decision-making that make implementation difficult. Human assets have features that differ from most other resources in the company, such as its final product and financial capital. Human performance is not easy to predict; it is very challenging to make a definitive case that a particular investment clearly leads to improvements in employees' performance, which then has a direct effect on the financial results of a company. At the same time, costs associated with people are much clearer. While the link from employee pay to employee attitudes to employee behaviors to customer perceptions...
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...Industry Analysis The restaurant industry is considerably large and sometimes hard to get exact numbers. There are many categories of restaurants so I outlined Services sector and the restaurant industry . The nation's 985,000 restaurants should hit $776 billion in sales in 2010. Restaurants employ 13.2 million, this is 8.5% of the workforce in the United States, and the industry is the largest employer besides government. These numbers include single owner restaurants to the largest franchises in the world. The growth trends for the restaurant industry are forecast to advance 5.2% in 2010. Analyst predict that the U.S. Restaurant Industry which created, on average, about 270,000 new jobs per year during the last 10 years is on track to add 1.8 million new jobs during the next 10 years. On a typical day, the industry will post average sales of $1.8 billion. The industry trends to watch: • Greater use of technology and worker training as a means to boost productivity and efficiency. • Continued increased focus on healthy lifestyles and restaurants providing customers with choices and customization. • Increased upgrades and improvements in decor and becoming environmentally friendly. The regulatory issues we have to look more closely into are the liqueur licenses, wages for employees, building permits, and any local ordinances that may affect our business A.Market Summary The BluE will be targeting locals and tourists who...
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...Study on Customer Preference and Satisfaction towards Restaurant in Dehradun City By Neha Joshi Abstract - India is in the midst of the restaurant revolution. The revenues hotel and restaurant industry in yr.2006-2007 increase of nearly 22 %...The eating habits of people are changing; the style of cooking and the ingredients used increased the popularity of Indian food all throughout....... Indian food had experienced a tremendous change, people started following cooking style and adopted eating habit according to their religion. At present Indian food is recognized all over the country...service quality is an attitude or global judgment about the superiority of a service, industries must achieve a quality service the exceed customer, expectation .service quality determine an organization success or failure, the satisfaction is a function of consumer, experience and reaction to provide behavior during the service encounter. The level of satisfaction may be influence by various attitudes from internal, external factor. The demand for food away from home is dramatically increasing. According to the 2003/04 Indian Household Economic Survey, the average weekly household expenditure on meals away from home increased from $13.80 in 2000/01 to $19.20 in 2003/04 (Ministry of Health, 2006). The growth of demand for food has prompted an expansion of the Indian foodservice industry. The national foodservice industry annual sales rose from $3,176 million in 2002 to $4,800...
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...The Service Industries Journal Vol. 29, No. 12, December 2009, 1779–1796 Service failures and recovery strategies of chain restaurants in Taiwan Chen-Tsang (Simon) Tsaia and Ching-Shu Subà a Division of Hospitality Management and Education, Department of Human Development and Family Studies, National Taiwan Normal University, Taipei, Taiwan, Republic of China; b Department of Food & Beverage Management, Jinwen University of Science and Technology, Taipei, Taiwan, Republic of China (Received 27 July 2007; final version received 26 September 2007) This study utilised the critical incident technique to study service failure and recovery strategies in chain restaurants. A total of 431 incidents were collected and classified. The analytical results identified the most common categories as being service failure and recovery strategy. It also demonstrates that consumers were unable to recognise high-quality service and high-consistency products in chain restaurants. Additionally, appropriate recovery strategies were proposed to assist restaurateurs in reducing service failure. A number of conclusions and recommendations regarding practice and future research are made. Keywords: service failure; service recovery; recovery strategy; chain restaurant; critical incident technique Introduction Modern customers are very demanding and have easy access to diverse information channels. Customer demands for value create a strong focus on a combination of quality, fair...
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...Chapter 1 PROBLEMS AND ITS SETTING Background of the Study Davao del Norte - Punong Restaurant is one of the best restaurants found in Tagum City, Davao del Norte. With their delicious dishes and first class delicacies, you would certainly find time to go back and take a stroll to this dazzling restaurant where you will surely find satisfaction. Punong Restauant is located along the national highway, about 10km before reaching Tagum City proper. The restaurant is a Malay inspired: elevated on stilts, with pitched roof and high ceiling. According to Stephen Weber (2002). Customers want to have exactly what they ordered, so food consistency is crucial to your business. Your cooks should be able to cook the same dish and the same blend over and over. Otherwise, inconsistency of your food will remove the customer’s interest from buying your best sellers over and over. It is a good move to conduct a training regarding ingredient proportions and standard preparation procedures and right timing of grilling without over-cooking. Also, knowledge on the food quality standard is important. As a restaurant owner, you yourself should carefully monitor how food is being consumed in your restaurant and how they are being prepared. Otherwise, the food quality will diminish overtime, and it would definitely differ on taste and would involve sanitary and health issues”. Punong Restaurant is located somewhere between Panabo City and Tagum City, specifically at Barangay Bincungan, a place known...
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...Cornell Hotel and Restaurant Administration Quarterly http://cqx.sagepub.com Why Restaurants Fail H. G. Parsa, John T. Self, David Njite and Tiffany King Cornell Hotel and Restaurant Administration Quarterly 2005; 46; 304 DOI: 10.1177/0010880405275598 The online version of this article can be found at: http://cqx.sagepub.com/cgi/content/abstract/46/3/304 Published by: http://www.sagepublications.com On behalf of: The Center for Hospitality Research of Cornell University Additional services and information for Cornell Hotel and Restaurant Administration Quarterly can be found at: Email Alerts: http://cqx.sagepub.com/cgi/alerts Subscriptions: http://cqx.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Downloaded from http://cqx.sagepub.com at Blue Mountains Hotel School on October 25, 2009 © 2005 CORNELL UNIVERSITY DOI: 10.1177/0010880405275598 Volume 46, Number 3 304-322 10.1177/0010880405275598 Why Restaurants Fail by H. G. PARSA, JOHN T. SELF DAVID NJITE, and TIFFANY KING , Past research on restaurant failures has focused mostly on quantitative factors and bankruptcy rates. This study explored restaurant ownership turnover rates using qualitative data, longitudinal data (19961999), and data from Dun and Bradstreet reports. In contrast to frequently repeated statistics, a relatively modest 26.16 percent of independent restaurants failed during the first year of...
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...factors, Malaysia is poised to become a major consumer of agri-food and seafood products in the near future. This growing demand for agri-food and seafood products, as well as the changing demographics and culture of the country, will likely spur growth in an already fastgrowing consumer foodservice industry. While there exist significant differences among Malaysian demographics (Malaysia is culturally diverse), there remain some common themes. Malaysia as a whole is becoming more urban, and remains characterized by a young and growing workforce. The leading sectors in the Malaysian consumer foodservice industry are the café/bar segment, the full-service restaurant segment and the fast food segment. These three segments of the foodservice market account for over half of sales in both value and volume terms. However, there are opportunities to be found in the smaller sectors of the market as well. Malaysia has a strong tourism industry and this is reflected in the large number of hotels and resorts present in the country. The tourism sector is quite important to the foodservice industry as it is home to many five-star hotels (which usually have at least one full-service restaurant). This sector has been growing and is expected to continue doing so as the government has been encouraging expansion. It should be noted, however, that Malaysian tourism is recovering from a...
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...this case, the situation surrounding Spur Steak Ranches shall be taken into consideration. About the business Spur Steak Ranches is a steakhouse franchise restaurant chain originating from South Africa. Its menu mainly features beef burgers, steaks and ribs, along with salads, chicken, seafood and vegetarian options. The company was founded by Allen Ambor in 1967, when he opened the Golden Spur in Newlands, Cape Town P²E²STLE Analysis on Micro Environment Political The operations of Spur Steak Ranches are highly influences by the laws and policies in traduces and enforced by the government of South Africa. Regarding restaurants in South Africa, health legislations are enforced to ensure that the premises and equipment of restaurants are of the correct health and hygiene standards. In the case of restaurants in South Africa, a license from the local health department is commonly required to operate and proceed in such a venture. The government of South Africa controls the license given for the opening and operating of food restaurants and other businesses. A good relationship with the governing body is vital and a must in ensuring that the business succeeds in the South African market. Physical there are many requirements regarding the physical location of a business operating in the food industry. Regarding a food premises such as Spur Steak Ranches, the location is pivotal to...
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...4362 NOVEMBER 4, 2011 W. EARL SASSER, JR. RACHEL SHELTON WrapItUp: Developing a New Compensation Plan Introduction Martha Reyes needed some fresh air. The 46-year old human resources executive locked her computer display, left her third-floor office, and took the stairs down to the lobby. She crossed the street to a park where she observed workers from the area’s offices as they enjoyed their lunches on a sunny afternoon near San Francisco. She smiled as she saw several people carrying bags bearing the logo of WrapItUp, her employer. When Reyes was recruited to lead HR at the restaurant chain in early 2010, she found that WrapItUp employee turnover was relatively high, customer satisfaction was suffering, and revenue growth was flat. It was her immediate mission to get to the bottom of the HR issue—turnover—but she thought that all of the chain’s challenges probably were related and that solving the turnover issue might take steps toward solving the others. With the help of an external consulting firm, Reyes developed the ShareIt program, a profit-sharing plan intended to make store manager compensation more competitive and to motivate managers to maximize individual store profits. In late July 2011, the ShareIt program had just finished a six-month pilot in two carefully selected outlets. Reyes had received the final report from the consulting firm and needed to decide what to recommend to WrapItUp’s two founders, who still served as co-CEOs. WrapItUp could roll out...
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...HOSPITALITY AND TOURISM INDUSTRY Danielle Bates Darrin Stern HTM 100 03/10/2013 Managing a restaurant in Baltimore, Maryland has many operational challenges. Restaurants deal with food, people and are a vital part of our everyday lifestyles because we are a society on the go, we visit them several times a week to socialize, as well as to eat and drink. It is a serious combination because people are very sensitive about their food and service. Several different challenges come to play in the restaurant industry. These challenges include regulatory issues, social concerns and competitive issues. Regulatory issues are laws and systems that have been established to help ensure that the food served in restaurants is safe. Bacteria develop very easily if given the chance. The local Health Department will send out inspectors to make certain that the chefs and waiters are following the appropriate guidelines. Inspectors will issue penalties for minor violations and can shut you down for major violations. Some restaurants prepare for health inspections by holding random drills in which a manager or another member of the staff conducts a random mock inspection of the restaurant. This is designed to keep employees on their toes, and to identify problems, which will be spotted by the health inspector. Practice inspections can be performed using the same checklist utilized by the health department, to ensure that all aspects of a real restaurant health inspection...
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...Introduction The team has chosen to do Restaurants, SSIC code 5611. It is a subset of the code 561 which is Restaurants, Café and Bar under Food and Beverage (F&B) Service Activities (56). The reason for choosing this industry was the fact that eating is the favourite past time in Singapore; Singaporeans are just obsessed with food (Ling, 2010). Restaurants are popping up all over the city state; hence we wanted to understand what made some succeed while others fail. Furthermore, two of us aspire to setup restaurants in the future, which allowed us to do an in-depth analysis of the industry, the owner mind-set and some best practices. In 2009, there were 2,107 restaurants (35.2%) of all F&B industry, hiring 35,078 employees. In 2010, there were 2,261 restaurants (36.5%) and hiring 37,163 employees. A 7% increase in restaurants with a corresponding 6% increase in hiring year-on-year. Operating receipts increased by 10% year-on-year, while expenditure remained constant. Valued added revenue – contribution to the country’s XXP; increased by 11.5%. (Appendix 1, Table 1) Purchases of food and Remuneration of employees are the two biggest costs. However, rental has increased by almost 2% year-on-year, probably due to the shortages of space for rental. Purchases on the other hand reduced by more than 5%. (Appendix 1, Table 2) The outlook for the F&B sector is also bright according to the Workforce Development Agency. It is fuelled by domestic demand and with the Integrated Resorts...
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...What is your industry? Accommodation and Food Services Environmental Force Issues Competitive I used to think that restaurants are just opening their doors waiting for customers. But in fact, if you want to make a restaurant popular, you have to be very serious about quality management. The reasons people go out to eat are food and dining environment. They refer to the quality of food and quality of services and beautification. Since restaurants build their reputation on word of mouth, they have to keep customers’ satisfaction on both aspects. To ensure the quality of food, a restaurant keeps their eyes on the cooking materials, the skills of chefs, and the cleanness of the kitchen. In addition, the tastes of dishes have to adjust based on customers’ needs. On the other hand, the quality of decoration and services can distinguish a restaurant from other competitors. Every experience for customers is crucial and his employees should try their best to make the experience wonderful. Cultural, Demographic and Social Trends The challenge to keep up with ever-changing consumer habits is critical for a successful restaurant business. Pressure to improve the nutritional value of restaurant cost will play a big role in the restaurant industry. Another growing influence on the industry is the rapid growth of different heritages in the United States will continue to drive demand for more ethnically diverse foods. Technology We are seeing iPads as menus invade the kitchen...
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...Aruba State of Sustainability in the Aruban Fine Dining industry Course: MBA 2015 Module 2: Sustainability & Innovation Instructor: Prof. Dr. Ryan R. Peterson, PhD, Msc., Bsc., CHE Team: 6 Cavril Rombley Ryan Falconi Executive summary This state of sustainability report of the Fine dining industry in Aruba describes the challenging landscape of the local and international fine dining industry. An Economic industry analysis using Porters five forces analysis on sustainability in the fine dining industry is provided and data analysis of the conducted surveys. For this report a combination of qualitative and quantitative research was used. The data collection was based on interviews held with managers and owners of the restaurants and analysis of the survey, literature review and desk research. March 4, 2015 2 Table of Contents Executive summary......................................................................................................................... 2 1. Introduction ............................................................................................................................. 4 2. The changing landscape and challenging market space of the international fine dining industry. .......................................................................................................................................... 5 3. Economic and industry analysis .....................................................
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