Emirates Restaurant Business Analysis - Essay Example

? Business plan BUSINESS PLAN The mission The main aim of Emirates Restaurant is to be a leading restaurant in the Jabal Ali region with a profit of $100,000 dollars and sales of over $100,000 dollars in the next three years. Emirates Restaurant aims at increasing the number of employees in accordance to market share improvement as a means to achieve high quality fulfillment to its clients. 2. Investment plan Emirates Restaurant will be situated in a house previously serving as a restaurant that will be renovated to reduce costs. $50,000 will cover initial training renovation support and site selection costs. Ongoing operation costs are expected to range between 0.5 and 0.7% of the gross receipts while the cash available for the initial opening is $500,000. Other investment requirements will be financed by a $200,000 loan from Jabal Bank at a 5% interest rate repayable in two years. 3. Human resource plan Renowned hotelier Charles Duncan charged with the responsibility of general business running and procurement will manage Emirates Restaurant. Management foresight in former management undertakings in the industry has won him many accolades. He has masters in business administration from the Dubai University and has a number of successful stints in well performing hotels and restaurants in Emirates. The deputy management will be Mark Weber who has a bachelor in business Administration and is a recognized person in the hospitality industry. The deputy manager will be responsible for public relation, community development, and sales. Marketing duties and sales, pricing are also some of the responsibilities to be undertaken by the deputy manager. The other employees to undertake the support roles for the daily running of the company will include five chefs trained in catering an accountant to aid in recording transactions to the computer and the daily procurement and petty cash payments. A security officer to guard the premises and four waiters to aid in taking orders and deliveries will also be employed by the company. The number of employees will be increased as need arises when the management feel the need to augment the company operations to meet increasing demand. 4. Production plan The production plan at Emirates Restaurant is a main facet for the company’s development and success. This is evidenced by the need for efficiency in inventory management and maintaining healthy foods and high quality for safety of the consumers. This will aid in avoiding costly lawsuits and a taint in the reputation of the company. i. Food Safety Apart from ensuring efficient production, careful inventory handling by the employees of Emirates Restaurant will aid as a measure to minimize food borne illnesses. This ensures no damage to clients, which can ruin the restaurant’s reputation and emergence of costly lawsuits. Emirates Restaurant will ensure food safety is maintained through meticulous stock rotation and keeping food in apposite temperatures. ii. Inventory Management This entails the need by the management and production personnel to ensure the inventory ordered are enough to meet orders made but in right quantities for use before they spoil. The main reason for ensuring this is to avoid excess inventory. Excess inventory is cumbersome and retard the production process. Comparison of time periods in relation to seasonal demand fluctuations are the methods the management will make use of in ensuring there is efficiency in inventory management. iii. Employee training on handling Supplies Cases of unforeseen circumstances in the production process including delay in inventory and malfunctioning of equipment require trained and informed staff to ensure exercise of discretion as the situation requires. This will create efficiency in the production process and avoid losses to the restaurant due to timely and conscious adjustment of the production process by the employees as the situation calls. iv. Keeping of Records Maintenance of current and detailed records of the production process aid in ensuring track on optimal inventory levels, customer records, and employee productivity. This aids in improvement of the production process and the ability to meet client needs. 5. Marketing plan Emirates Restaurant is situated in an area with a high student population comprising of students from the Jabal University College. The demand for a quality-serving restaurant preceded the start of Emirates Restaurant in the area. This demand for quality foods in a clean and comfortable environment has been increasing recently. The student population, an ever-increasing factor, teachers, and the locals are the main target customers of Emirates Restaurant. Tourists to the area watching the attractive sand dunes and traders form the other market target for the Emirates Restaurant. Market Segmentation Jabal University College and the teaching and non-teaching staff form the main customer segment for the company. The main reason for this is the close proximity to the college and the increasing student population. The other factor is the demand for high quality required by the young population. The company believes that it can provide better than the other competing restaurants in the area. The proximity to the campus is an added advantage in achieving this goal as well as the increasing number of visitors to the institution. The tourists and the local community as well as the tourists form the other target segments for Emirates Restaurants in its aim to be the leading Restaurant in the area in the next three years (Alonzo, 2007). Target market strategy Market analysis reveals that high customer proportions form the teaching and student population from the Jabal University College. The main characteristic of this population is the need for the provision of quality and clean service for the achievement of their satisfaction and ensure Emirates Restaurant achieves repeat customers. Ensuring provision of high quality, therefore, forms the main marketing strategy for the present to ensure the customer needs are met and for the company to step its foot in the competitive hospitality industry. Future marketing strategy entails the introduction of new recipes and the generation of better foods tailored to customer tastes and preferences (Alonzo, 2007). This will be done after conducting customer surveys when the restaurant will have been operational. Industry Analysis The hospitality industry development within the last decade has been tremendous due to the high job and study requirements giving rise to a lack of cooking time. This makes it advisable for the population to consider quality foods as a replacement for home cooked foods. The need for a high satisfying meal to enable achievement of the client’s daily objectives is paramount; hence, the choice of a quality place to partake their meals is understandable. It is this growth and the prospects of the improvement of the demand in hospitality industry that led to the conception of the idea for Emirates Restaurant. Competition Competition to Emirates Restaurant spans from the high number of restaurants situated in the area, especially the well established once. To tame the competition, Emirates Restaurant will set a high bar on quality and cleanliness as theses two areas are the main aspects considered by the customers. This will make the company a preference spot. The advantage is coupled by the strategic location near the college and the presents of a bus station for tourists, traders and other travelers to the region. This will improve the restaurants ability to attract new customers and the provision of quality service also aid in the achievement of a high market share (Alonzo, 2007). 6. Evaluation of the business The business has a high growth potential and is poised for success owing to the trained employees in the company and the management ability to meet the objectives of the company. The other reason for the success of the company is the strategic location and the increasing need for quality foods and the fact that remand increases geometrically in the region. The other advantage the business has is the high population in the area that provides the high demand needed for the production abilities of the company. High development potential of the hospitality industry forms some of the other factors that aid in the high potential for Emirates Restaurant to achieve the desired objectives. Economic-business future growth of the UAE The growth rate in the United Arab Emirates is high due to the increase in the exports from the United States. The main reason is that the expected growth rate of 4.5% in 2013 that increases the business potential of the businesses in the region. The rise in the exports in the United Arab Emirates is the main reason for the high business growth potential in the area. Businesses are expected to be successful with the main business facets expecting high growth rates are the oil sectors and the manufacturing sectors. The increase in output in the region and the rise in employment rates coupled with lack of inflationary pressures aid in achieving high business growth potential in the region. Diversification efforts in the region also aids in the expected high rates of business growth expected in the UAE region. Open-door policy in the region also forms the other reason for the high business expectations in the UAE region. This is because the area has become one of the most important transport hub hence an increasing factor that aids in the expected success in the region. Generally, it is expected that the economic-business future growth rates in the UAE will be very high owing to increased exports diversification efforts open door policies and increased non-inflationary employment. References Alonzo R. (2007). The Upstart Guide to Owning and Managing a Restaurant. New York: Kaplan Publishing. Read More