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Introduction of Starting A Business And Fundamentals Of Marketing Plan Assignment
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The restaurant industry, like the rest of the commercial world, experiences economic peaks and troughs. Restaurants, on the other hand, provide a service that many companies rely on, and while they are frequently the first line item to be cut from a company's budget, they also realize the rewards of increased revenue as it returns. The restaurant industry is influenced by a variety of changes in the business environment, including client amusement, business travel costs, currency sector, and societal changes.
Businesses and companies that provide meals outside the home fall under the hospitality category. Restaurants, coffee shops, grocery stores, and other businesses fall under this category. The hospitality industry, for example, is a multibillion-dollar industry that thrives on self-employment. One of the biggest jobs in the United Kingdom is the cooking and hotel business. Different service styles exist in different cultural domains, from fast food to table and fast service.
About the company
Unlike a regular restaurant, Steak Eat – "a steak buffet" will offer a new blend of outstanding food at affordable prices, as well as a pleasant and exciting ambiance. Steak Eat is a response to the rising demand of the public who expects value for money from whatever they buy, will not tolerate something that does not fulfill their expectations as well as expects enjoyment from their eating experience (Norris, Taylor Jr and Taylor, 2021). It is growing extremely difficult to distinguish one restaurant concept from another in competitive business environments. Steak Eat does this and is the only buffets concept that offers mesquite-grilled USDA grade sirloin steaks grilled on the showcase grill for a single cheap price. The company will be offering top-quality, 21-day-aged steak that is hand-cut and prepared to precision on the grounds every day. The grills will be out in the public, packed with steaks grilled to the visitors' preferred degree of desired consistency. There will be no queuing for a steak due to the large dinner traffic, as the restaurant would have the grill filled with steaks of all degrees of desired consistency.
This market is untapped by any other national chain. With the popularity of red meat on the rise, the company believes this feature will help them succeed. The purpose of this restaurant's business plan is to get funding to implement this concept. Funds will be used to start work on new kitchens, construction drawings, guides and cookbooks, site planning, investment in infrastructure, and first-year operating costs. Additional funding will be required for the next two units, scheduled for July 2nd and January 3rd year. Cash flow will help alleviate some of this stress.
Mission and the vision of the company
Steak Eat will work hard to become the best restaurant serving in the area. When visitors come to Steak Eat, the company wants them to receive the best experience. Not only will the visitors be served a delicious lunch, but they will also be treated to a lively ambiance. The company will do something different to set itself apart from its competitors. The company wants the eating experience of the customers to be as pleasurable to the eyes as it is to the taste budsThe restaurant's major focus will be on providing high-quality meals at a reasonable price, with a vast selection of freshly made food, most of which will be made in full view of the customers. In addition, the business will highlight 100 things per day that are full of taste and zest at an unbeatable price! Consumer satisfaction is vital, but employee well-being is also critical to the company's success. Everyone shall be treated equally and with the greatest respect. Since happy staff generates happy visitors, the company wants employees to feel like a part of Steak Eat.
Objectives of the company
The following are Steak Eat's goals for the first three years of operation:
- Growth of at least one unit per year in the first three years of operation.
- Keeping the cost of food by less than 35% of revenue.
- Saving staff costs of 16-18% of revenue.
- Each location's revenues average between 3 and 4 million dollars per year.
- Hiring a management companion for each site and using computerized control to keep costs and activities under tight control.
PEST analysis
Political
The political stability of the country plays a very important role in the food and restaurant business (Nguyen et al., 2018). The restaurant business should always adopt new marketing strategies since the market in which they operate is very dynamic.
The restaurant business is mainly subdued due to its health policies. The companies should always try to abide by the health and safety rules. Steak Eat must maintain personal hygiene when performing cooking, packing, and delivery tasks (Lambert, Clinton and Tyner, 2021).
The taxation process of this sector is a very important factor. However, this taxation policy changes from one country to other. Steak Eat companies need to keep their budget carefully to address this problem.
Economic
- Growth of People’s disposable incomes
The UK is a developed nation and people have disposable incomes in the continent. Thus it is very obvious for Steak Eat to earn a lot in the country.
The employee costs have risen extremely after the pandemic and this can result in the generation of low revenue by the company.
The costs of the things have increased a lot after the pandemic along with the rise in the costs of the raw materials (Thielemann, Ottenbacher and Harrington, 2018).
Social
- The demand for Organic food
Increasing awareness of eating organic products is a social factor, which has recently affected the restaurant business (Esfahani and Ozturk, 2019). It may have an impact on the development of the food industry in the coming years.
The pandemic has changed consumer behavior and people are more interested now in ordering food online. However, this may affect the restaurant business and they may end up facing losses if they do not inculcate this in their operations.
Technological
- Automation of the restaurants
Technology has played a very important role in the restaurant business as many things are done online. Moreover, after the epidemic, consumer behavior has changed and people are now more and more interested in E-commerce (Genc and Kozak, 2020). So online services should be included in the Steak Eat operation to gain a competitive advantage.
Technology has allowed companies to adopt new marketing strategies and work for their success.
Competition in the market
In the last two decades, the restaurant business in the United Kingdom has grown rapidly and is now entering the maturity phase of its product lifecycle. The high demand for decent restaurants in the United Kingdom nowadays is due to a variety of causes. More leisure time is desired by the public (Jeon, Sung and Kim, 2020). Currently, there are more two-wage worker families with higher disposable income. The market is very competitive, with a slew of tough chains vying for customer cash. Today, it's nearly impossible to try something new, different, and untested. Only the powerful will be able to live and succeed (Parsa, Shuster and Bujisic, 2020). Due to fierce competition, restaurant owners must seek out ways to set themselves apart in order to gain and keep a competitive edge. Steak Eat's founder recognizes the importance of uniqueness and feels that blending the appeal of steak with the buffet model is the secret to success. The reality that no other chain store has yet joined this field provides them with several opportunities and an entry into a lucrative market segment (Liu, Steenkamp and Zhang, 2018).
Competitive advantage(strategy)
Due to the casual family ambiance, a large variety of food selections, and reasonable pricing points, Steak Eat will attract a wide range of customers. The eatery will battle not only with casual dining establishments but also with family-friendly steakhouses.
The business will have the following benefits while dealing against informal fine dining restaurants (the rivals):
- For a whole lunch, a lower pricing point is available. If the customer enjoys steak, his Steak Eat meal will cost him nearly half of what he would pay in a fine dining restaurant.
- Because we are a self-service restaurant, there will be no tipping. The actual customer cost of the eating experience will be reduced by 10-15% as a result of this (Kim and Qu, 2020).
- The service will be provided immediately, and then everything will be easily available as desired.
- The ultimate game is variety. Guests will be able from which to choose over 100 different foods that are produced fresh on a daily basis. Individual tastes make it challenging to accommodate each family member's mealtime requests. Anyday, nevertheless, there will be something for everybody at Steak Eat.
- Steak Eat will be more entertaining than the rest of the competition. As soon as the guests enter, they would see the meat-cutting chiller, the cooks grilling 70-80 steak at a time on the mesquite grill, and the chefs prepping and grilling their food. Steak Eat encourages their diners to feel like they are a part of the "Steak Eat" experience!
- Customers at Steak Eat will not have any issues with service. Workers provide refreshments, extra dishes, and meals if ordered, as do the competitors. Their servers, who typically serve up to ten tables at once, frequently struggle to be all at the same time (Chen, Riantama and Chen, 2020). Everything will be made from before for the customers at Steak Eat. They will clarify the set of rules upfront and, as a result, will never disappoint them.
- When guests come to the eatery, there will be no misleading menu board. All will be included in a single price. Customers can find 10-foot-long menu boards intimidating and difficult to see at some of the rivals. Others try to upsell by asking more questions and reciting daily deals.
- Steak Eat will have a lower lunch pricing than the competitors and will offer a unique Steak Eat's Specialty Beefburger, fresh and luscious off the display grill, as well as a buffet! The same sum may be paid in a food service industry, but the guest would only get a hamburger, potato wedges, and a beverage.
Target Market and Positioning
Steak Eat is facing the thrilling prospect of becoming the first national player in the "all-you-can-eat steak buffet" business. Steak's consistent appeal, coupled with a bargain price level in a buffet model, has shown to be a successful concept in other locations and will do so nationwide as well (Gao et al., 2018). They have identified the following categories as target markets based on their market study. The only time they deviate is when they specify their lunchtime target demographic. Since they have marketed it so low and featured the Steak Eat Specialty Beefburger, the company believes and has seen that this afternoon time slot has a considerably larger appeal.
The Target market is as follow: -
- Age -Senior, Baby Boomers, young married couples with kids, and blue-collar employees of various ages are among the population.
- Family Unit- The business will attract young families with new newborns as well as mature households with children under the age of driving (Kim and Jang, 2020)
- Gender- The corporation will target all genders equally, with a minor lean toward males due to their high red meat intake.
- Income- The corporation will target the upper echelon of the low-income population as well as those in the middle.
- Occupation- Steak Eat will target blue-collar workers, recent graduates with families, and the majority of the mid-UK.
- Education- Individuals who are having a high school diploma or some college education.
At each site, the corporation will use a mix of traditional media and local retail marketing activities as part of its marketing plan. The most effective kind of marketing is in-store, followed by the internet, and finally print (Yost and Cheng, 2021). Once a market has developed a cluster of businesses, wider media will be investigated. Nevertheless, the corporation believes that "word-of-mouth" is still the most effective method of advertising. They will be the buzz of the town if they provide an engaging setting with outstanding quality at an extraordinary price in a hygienic and welcoming restaurant (Burak, 2020).
Conclusion
Throughout its initial start-up phase, Steak Eat intends to grow slowly and cautiously. Within the first 3 years of operation, the group intends to have no more than three units. They won't build any additional units after that until they have enough manpower to operate. The clustering of expansion will be the second process in their development. The first three units will be close in proximity to one another. Following that, they will collaborate on growth with nearby geographical areas. Finally, with the first three restaurants, they want to build one new restaurant and convert one existing one. They will be able to test which model would work best for long-term growth as a result of this.
References
Burak, V., 2020. Training of future specialists in the hotel and restaurant industry in higher educational establishments in the conditions of distance learning. ScienceRise: Pedagogical Education, 6(39).
Chen, W.K., Riantama, D. and Chen, L.S., 2020. Using a text mining approach to hear voices of customers from social media toward the fast-food restaurant industry. Sustainability, 13(1), p.268.
Esfahani, S.S. and Ozturk, A.B., 2019. The influence of individual differences on NFC-based mobile payment adoption in the restaurant industry. Journal of Hospitality and Tourism Technology.
Gao, S., Tang, O., Wang, H. and Yin, P., 2018. Identifying competitors through comparative relation mining of online reviews in the restaurant industry. International Journal of Hospitality Management, 71, pp.19-32.
Genc, V. and Kozak, M.A., 2020. Emotional and social competence in the aestheticization of labor in the restaurant industry. International Journal of Contemporary Hospitality Management.
Jeon, H.M., Sung, H.J. and Kim, H.Y., 2020. Customers’ acceptance intention of self-service technology of restaurant industry: expanding UTAUT with perceived risk and innovativeness. Service Business, 14(4), pp.533-551.
Kim, H. and Qu, H., 2020. Effects of employees’ social exchange and the mediating role of customer orientation in the restaurant industry. International Journal of Hospitality Management, 89, p.102577.
Kim, H.S. and Jang, S.S., 2020. The effect of increasing employee compensation on firm performance: Evidence from the restaurant industry. International Journal of Hospitality Management, 88, p.102513.
Lambert, A., Clinton, S. and Tyner, L., 2021. Service-profit chain: literature review and recommendations for future research within the restaurant industry. International Journal of Human Resources Development and Management, 21(1), pp.35-53.
Liu, A.X., Steenkamp, J.B.E. and Zhang, J., 2018. Agglomeration as a Driver of the Volume of Electronic Word of Mouth in the Restaurant Industry. Journal of Marketing Research, 55(4), pp.507-523.
Nguyen, Q., Nisar, T.M., Knox, D. and Prabhakar, G.P., 2018. Understanding customer satisfaction in the UK quick service restaurant industry: The influence of the tangible attributes of perceived service quality. British Food Journal.
Norris, C.L., Taylor Jr, S. and Taylor, D.C., 2021. Pivot! How the restaurant industry adapted during COVID-19 restrictions. International Hospitality Review.
Parsa, H.G., Shuster, B.K. and Bujisic, M., 2020. New classification system for the US restaurant industry: Application of utilitarian and hedonic continuum model. Cornell Hospitality Quarterly, 61(4), pp.379-400.
Thielemann, V.M., Ottenbacher, M.C. and Harrington, R.J., 2018. Antecedents and consequences of perceived customer value in the restaurant industry: A preliminary test of a holistic model. International Hospitality Review.
Yost, E. and Cheng, Y., 2021. Customers’ risk perception and dine-out motivation during a pandemic: Insight for the restaurant industry. International Journal of Hospitality Management, 95, p.102889.
