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 are active restaurant seekers. There will be a special focus on professional adults with $50K-$125K of income looking for excellent food and a great time. In addition to the professional adults with money to spend, The BluE will also be targeting adults and tourists known to frequent midtown Manhattan. The general demographics are males and females ages 25-55 with college education. In addition to Wall street area people, the BluE will also serve customers from neighboring boroughs and tourists.

Historically, if there is a dip in the general economy, the restaurant industry is usually effected far less that the overall economy. To some degree this is because of people's perception that food, regardless whether it is from the grocery or a restaurant is a fundamental necessity of life and spend accordingly

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Target Market

Our target market segmentation is divided between young single professional restaurant seekers with money to spend, as well as other adults and tourists who are known to Manhattan. for recreational enjoyment.
We generally know the characteristics of our clients with our available demographics of the area, our personal crowd would consist of young adults (ages 25-29) and adults (ages 30-55), both male and female,working at Wall Street usually with at least a college degree. Our geographics include people from the local Manhattan area, customers from other neighboring boroughs, and tourists from other states and countries. The buying patterns of our customers will be people who like to spend money on pampering themselves, on quality food, feeling special, projecting an image of wealth, trying new things, and thrill seeking.

1.Market Demographics

Geographics • Our target group is the geographic target of Manhattan with a population of 1,820,000 people.Our second target population will be the other four boroughs of New York City with an approximate population of 5,500,000 people.Moreover residents of other states and citizens of other countries are among our target customer profile.

Demographics
*Gender: Male and female
*Ages: 25-55
*Income: $47k-..
*Education:College,Graduate and Post-Graduate
*Race : 29.4 % Foreign-Born,54.4 % White, 17.4 % Black,9.4 % Asian,27.2 % Hispanic.
*Religion: Roman Catholic 36%,Jewish 20.5%,Protestant 9.1%,Muslim 2.4%

Behavioral
*Enjoy meals at restaurants more than twice a week
*During weekdays young,single professionals spend only ten hours a day at home

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B.Marketing

Advertising: Wall posters advertising specials and menu items V.I.P. parties Outdoor message board changed weekly or daily Grand Opening celebration The BluE will give a large advertisement in the local phone book Subway advertisements

Direct mail - containing interior pictures of our restaurant, our prices, "Theme Nights," and an explanation of our concept Radio campaign -. We will pick the three top local stations with which to place our short and catchy ads. We will also sponsor radio call-in contests with free meal coupons to the BluE as the prize. We will also make "live on the air" presentations of our food products to the disk jockeys, hoping to get the promotions broadcasted to the listening audience. Newspaper campaign - placing several large ads throughout the month to explain our concept to the local area

The Web: We will have a website designed that shows people our menu,prices,what kind of payment we accept,our operating hours,sample pictures of our restaurant which will give people an idea of the BluE.In addition to that our website will give the internet users access to daily specials,weekly promotions,an deven placing pick up orders.

Flyers: Through flyers we will make sure that people know we are opening.We will give our new customers 25% off who comes to our restaurant with the flyers.

Sampling: Throughout the first week we will have our best looking and most personable server handing out samples of our irresistable appetizers in the afternoon goes a long way to building a relationship with new customers on Wall Street.We will tell them about the BluE while they are stopping to grab a sample and invite them to come back for something to eat.

Public relations stunts: We will grab media attention.We will have our staff dress up as fishes and walk around our neighborhood.We will hand out menus and cards.

Great customer service and warmth: We will treat people graciously and make them feel special.We will strive to impress the sneezers.Sneezers will tell their friends about the great experience they had.

Promotions: We will offer special themed dinners,guided wine and cheese tastings and other fun events to give people a reason to come to the BluE on a usually slow night.We will offer free lunch delivery to local offices.

Sample Marketing Budget(per quarter)

Newspaper Flyers: $ 1500
Radio advertisement: $ 1500
Web page: $ 750
Direct mail: $ 1500
Subway advertisements: $ 3000 *Opening Celebration: $ 10000

C.Competition

Although there are 32 mediterranean restaurants in metro New York area,only three of them appear to be real competition.These are; Bolo,Picholine,Convivium Osteria.These three have a set of unique features,something makes them different.One of them stands out in its wide wine selection,while the other specializes in appetizers.However,among these three there is no one which has a competitive advantage against the other with more than one product.

Bolo has a stylish atmosphere and offers mediterranean and spanish cusine.However,they serve neither fish nor calamari.Their decoration is warm,bright,and energetic.Food is delicious at Bolo.Nonetheless,you wait too long.The service is really slow.Bolo does not have parking facility but they do offer valet parking.Bolo’s employees are not warm.They are not serving with passion.They work for profit.Bolo is located in Midtown Manhattan.

Picholine is said to be one of the best french restaurants in New York City.They also offer mediterranean dishes.Picholine’s location is maybe its’ biggest competitve advantage.It is

close to subway stations.It has a contemporary,elegant interior design.Picholine has a wide wine menu.However,80 % of their wines are red and french wines.Some people enjoy white wine!Moreover,they are too expensive.A three course prix fixe costs $115.Besides,they do not have parking space for their customers.Picholine is located in upper west side Manhattan

Convivium Osteria serves italian,spanish,and portuguese dishes.Their taste and quality is way above its’ competitors.Their prices are affordable and below the other two.They specialize in appetizers.Convivium has a friendly atmosphere.They follow traditional mediterranean style decoration.Their tables and chairs are wooden.Nevertheless,the chairs are not comfortable.They are located in Park Slope,Brooklyn which is a big disadvantage for them.

The BluE mediterranean restaurant will carve its signature in mediterranean lovers’ hearts and souls through its’ quality of service,taste,magnificent view,and its’ wide selection of liquor menu,including the real greek Uzo and traditional turkish Raki.

S.W.O.T Analysis

Strengths

• Excellent Location

• Unique Brooklyn bridge and river view

• Delicious Food

• Charming interior design,unique dining environment

• Parking facility

• Italian,French,Greek and Turkish food under one roof

• Experienced partners in gastronomy business

• Availability of fishes unique to Mediterranean area

Weaknesses

• The restaurant has no market presence or reputation

• There is no home delivery service

• There is no kids playing area in the restaurant

• The long time required for preparing the customer order

Opportunities

• To open new branches in new cities (e.g Los Angeles,Miami)

• TV commercials

• Catering

• New tastes,new dishes

Threats

• Competition from existing Mediterranean restaurants

• Economic downturns

• Changes in dining trends

• Increase in food prices

• Keeping trained efficient staff

Keys to Success

As BluE we believe that customers own our restaurant.The restaurateur does not.We will always work to satisfy our customers.If we don’t,someone else certainly will.We will keep it fresh,keep it focused and remember to always say “Thank You”.Furthermore,we believe that employee training is a must for success.So,we will train them daily.We will review often,and we will never practice on a guest.

Every person wants to receive attention.Receiving attention is not a want.It is a need.Therefore,we will satisfy this need.

Critical Issues

Capturing early adaptors’ attention.Existing competitor restaurants already have a loyal customer base.Luring these customers from that base is not easy.So,what can we do?

Developing good relationships with big Wall Street firms.

Monitoring competitors’ operations weekly