Business of Restaurant - Essay Example

Restaurants -trends in business Restaurants are the places where personalized food and beverage services are rendered. Type of service differs according to different factors. The restaurants are in a continuous state of improvement as it strives to become more effective and competitive. The sector is affected by many other factors by shifts in the economy. The ever changing demographics as globalization shows its mark demands differentiation in the business The customer wish should be fulfilled and the service should reach the expectations of the customer who visits the restaurants. City like London with varied culture, a huge conglomerate of people eating habits, prominent place for tourism activities demands uniqueness in the presentation of the service for the expected customer. Economic growth and high levels of employment lead to higher levels of disposable income bring about greater spending in restaurants. The population in London is poised to increase in the next ten years. Predictions show that the economy will improve and as a result, the hospitality sector must be geared up to meet the current demands. However, the business exists within an external environment consisting of the actions of other players who are outside the business. The external environment consists of: competitors, the economic and political system, the social system, the monetary system, the political/legal system, the environmental system. The micro-environment denotes the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. The external factors can be manipulated, or used to glean information, in order to provide satisfaction to the customers. Economic factors are of concern to firms because they are likely to influence, among other things, demand, costs, prices and profits. These economic factors are largely outside the control of the sector, but their effects on individual enterprises can be distinctive. The best example is 9/11 WTO attacks, the London bomb attacks etc which shook entire world. The tourism activities has declined, the entry regulations have had become stringent, it all serves to demonstrate how dramatic economic change can upset the traditional structures and balances in the world business environment. Understanding of economic changes and forces in the domestic economy is also of vital importance as such forces have the most immediate impact. Other domestic economic variables are the level of unemployment, the rate of inflation and the level of domestic interest rates, which affect the potential return from new investments and can inhibit the adoption and diffusion of new technologies. Indirect factors like competitive firms can also pose a threat to the restaurants so their activities should be closely monitored. It is therefore vital that firms continually monitor the economic environment at both domestic levels. Economic changes pose a set of opportunities and threats, and by understanding and carefully monitoring the economic environment, firms should be in a position to guard against potential threats and to capitalize on opportunities. Restaurants are unique places where the service has to be there where the customer is located .It is seldom that people visit a restaurant to enjoy the delicacies. The location has an important role to play in the establishment of restaurant. The prime areas where the density is more has the probability to entice customers as your restaurant will be placed in the choice of the customers. The visibility of your restaurant will be more in densely visited areas like the public offices, main junctions, and places near tourist attractions where the human hits are more. The market research has to done to know the viability of the business in that area. The profitability of your business in that area should be ascertained. The number of probable customers should be evaluated to estimate the number of takers for your service in that area. The number of players already rendering the service and the sustainability of your business should be known. The eating habits have been changing as the demographics .The employees and youth were inclined more towards fast food culture, to have a quick bite and resume their daily activities. The number working employees have had increased which has opened up a new market. Understand the employee eating habits and their preferences Examine the differences between those who purchase indulgence and health conscious foods. Identifying buying patterns and trends and attitudes towards eating and snacking during the working day will give a distinctive idea of eating trends. (Source: National Food Survey 2000) The consumption of alcohol and confectionery stuff has been increased. The average spending on food and beverage is also on raise. The fast food culture has resulted in snacking and grazing .People are preferring packed foods to cooked foods as they have to tune up with the pace of the world. The youth preferred more to eat and are willing to spend more than the older ones spend. The raising fast food culture has resulted in obesity in UK and now it became a major health concern. The people are becoming more health conscious and prefer healthy foods instead of the junk food available. The vegetarian food culture is growing due to wide availability of vegetables and the low fat content and the fibre content. ( London has the ability to capture sufficient customer volume from primary trade area residents, day-workers and tourists are essential in estimating restaurant feasibility. The restaurant design has important role in projecting the value of the restaurant establishment. The ambience in the restaurant should be planned according to the concept the establishment was planned. Concept is a combination of ideas that forms the foundation for a particular type of restaurant operation.Concept can include theme, menu, service style, and hours of operation, price, entertainment and atmosphere. The design changes according to the type of clientele you are aiming at. The internal ambience should appeal to the theme on which the restaurant is established. The environment should closely resemble the customers expectations and perceptions. The colours, the cutlery, the seating arrangements should project a visual treat to the customer who step in to the restaurant. A good restaurant environment seduces the customer into ordering higher-ticket specialty foods and also encourages return visits Find a theme for your restaurant that is exciting and innovating, different than the competition. Instead of trying to promote your new restaurant as all things to everyone, concentrate on what makes you special- work on building a niche market of customers who prefer your style of food consistently. Consumer research through surveys and focus groups can help assess dining demand specific to a particular sector. Consumer segments include residents, daytime population, and tourists and visitors. Some of the useful factors in your evaluation of restaurant demand from these market segments are How often do you dine out by meal period How often do you dine out by type of restaurant How often do you come for dining or entertainment What types of cuisine would you like to see According to National Statistics organizations Services output rose by 0.9 per cent in the three months to January compared with the three months to October. Distribution output increased by 0.9% three months to January. The most significant increase was in retail trades (which includes non-food stores).Hotels and restaurants output rose by 2.4 per cent in the three months to January. The most significant increase in market is for public houses and bars, licensed restaurants, unlicensed restaurants and cafes and camping sites. Business services and finance output rose by 0.9 per cent in the three months to January. The most significant increase was from other business services .Services output between December and January was unchanged. Distribution and hotels and restaurants both decreased in output. These decreases were, though, offset by increases in business services and finance, government and other services and transport, storage and communication. The challenges ahead London after the 9/11 attacks, attracts a large number of overseas leisure tourists and ranks highly as a desirable destination for business travelers it has to address the prime concerns which are hindering the growth of restaurant and hospitality industry as a whole.. There needs to a distinct change in the provision of marketing and support of the industry because competition from other European cities is growing. The deregulation of airlines means other destinations are increasing popular and accessible. There is a long- standing concern that London capital's image has relied too heavily on its ceremonial and historic grandeur. The quality and value for money of London's product need to be improved. Domestic tourism could also be stronger. Marketing is an essential component to project the value of the restaurant. Conducting a market analysis, you will be able to answer questions such as: Trends emerging in the food service industry The strengths and weaknesses of my competition Suitability of the location Uniqueness of concept in the market The potential number of customers the establishment can serve per year In this hi-technology society, marketing has been a cake walk for every one as the means of marketing and the channels of marketing has been enhanced .With the advent of internet restaurant marketing is opened up to global customer. In a city like London where there are a cluster of restaurants you must differentiate and place yourself at unique status where your service is recognised. The marketing should way before the launch of the operations to keep the customers known about the new service avenue to be established. Pricing your food can be a challenging. Pricing decides the volume of clientele. The items in the menu should be priced in evenly to make customers feel comfortable. The items should not be overly priced or under priced. The service standard of a restaurant depends upon the service rendered by the employees. The employees employed should be pleasant and well groomed to receive the guests. The employees' service should add value to the overall performance of your restaurant. Enhancing the customer is not an easy task as we may not reach the perceptions of the customer. Instead of looking for new customers it would be a good option to retain the old customer and enhance the experience every time he walks into the restaurant Culture is the most vital element of the macro-environment, manifesting itself in changing tastes, eating trends and changing priorities. The attitudes and beliefs influences the customers eating trends. The core cultural values are those firmly established within a society and are therefore difficult to change. The traditions, customs and the religions are the factors the restaurants has to follow in the society in which it hopes to open a restaurant .The eating trends and the eating habits can be changed according the value created by the restaurant. The customers now-a-days are aware of the ill effects caused due to junk food available and now customers are becoming health conscious. London's diversity is an important element as a world city it has enticed a lot people from round the world. Majority of the population are from Asia and other common wealth countries. A restaurant can concentrate on one niche cultural cuisine. It should initially position itself as unique outlet in terms of its service, quality, menu, the presentation. It should build a brand of itself in the location to differentiate it from the competitors. Tourism industry can sustain only with right blend of components placed for accommodating tourists .The tourism activity can be for local (domestic) or international. Experiences of the tourist are key to the success of any tourism strategy. A tourist expects some unique features in the destination and visits the place. The components like the restaurants, entertainments avenues and attractions should create a valuable experience for the tourists. Some tourists visit to enjoy the scenic beauty of the destination, some for the enjoying the cuisine. As the tourist frequency increases the need for more facilities creep in. The visitors should be offered with varied gourmet delights .The specialty restaurants should offer varied menu items for the tourists who would visit London. The frequency of one nationality citizens demands their native food which can served only by the multi cuisine and specialty restaurants. The facilities should be enhanced to international standards in a city like London to appeal international customers. As the tourist traffic increase more and more opportunities open up for the local businessmen. The employment opportunities increase around city limits. The standard of living increases. The restaurateurs' should coordinate with the tour operators and enhance the traffic in their restaurants by inviting tourists groups to taste the restaurant delights. The restaurant can add special features for special travelers like the business travelers By providing them lunch and learn facilities for presentations, conference facilities Reference Sources: http://www.lda.gov.uk/upload/pdf/West_London_Tourism_Strategy_and_Action_Plan.pdf http://www.lda.gov.uk/upload/pdf/LDA_EDS_Summary.pdf http://www.gdrc.org/uem/eco-tour/wttc.pdf http://www.pkf.co.uk/download/Country%20Trends%20Sample%202005.pdf http://www.yourroutes.co.uk/article.aspaPageId=761&NodeId=202 http://www.digica.com/cont/customers/Case%20Studies/PizzaHut-case-study.shtml http://www.ogilvypr.com/case-studies/pizza-hut.cfm http://news.bbc.co.uk/1/hi/uk/3158811.stm http://sdsd.essortment.com/howtoopenrest_rrsk.htm http://www.da-group.co.uk/main/s6/st72800.htm# http://www.thetimes100.co.uk/theory/theory.phptID=236 http://www.yourroutes.co.uk/article.aspaPageId=224&NodeId=202 http://www.uwex.edu/CES/CCED/tourism/Restaurant%20Market%20Analysis.pdf http://www.htrends.com/trends-detail-sid-21626.html http://www.htrends.com/trends-detail-sid-21686.html http://www.htrends.com/trends-detail-sid-21507.html http://www.middleeastuk.com/culture/lifestyle/foodscene.htm http://www.uwex.edu/ces/cced/dma/11.html http://s142412519.onlinehome.us/uw/pdfs/A3811-5.PDF http://www.quantifiedmarketing.com/learning_center/restaurant-marketing.php http://www.pmq.com/keys_to_success.shtml http://www.statistics.gov.uk/cci/nugget.aspid=558 . 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