Hungry Head: A Healthy Multi-Cuisine Restaurant Assignment Sample

Introduction Of the Tourism Services Industry in the UK

Travel and tourism have a sizable market in UK which includes variety of enterprises, occupations, industries and commercial ventures. Tourists from all over the world open up fresh prospects for companies to expand. The tourism and travel sector has contributed to creating huge employment in 2022. Around 15% of jobs were created in this sector in the UK. Overall the tourism industry has contributed to creating 3.64 million jobs in 2022 (Number of Travel and Tourism Jobs in UK, 2022). Areas including lodging, upscale services, travel agencies, entertainment, and cuisine, among others, are potential locations for new enterprises. Opportunities in this field are plentiful and diverse. Starting from entry-level positions like serving drinks to highly skilled ones like working at an art gallery or museum. Tour guides, trip organizers, managers of hotels and tour operators, tourist information centres and other tourist service providers are among the other professions. Anyone may work in the industry since it is so huge.

Business idea

According to the growth of tours and travel industry in UK, the idea of opening a multi-cuisine restaurant will be great. The restaurant will provide tasty and healthy food options to the customers. The restaurant will use organic ingredients and will serve sugar-free food for diabetic people. The restaurant will be located in London and it will be known as ‘Hungary Head'.

The reason behind opening a restaurant in London is that there is a rise and growth prospectus within restaurant sector. These days' people prefer healthy eating options other than junk so in order to fulfil their demands Hungry Head is there for them. The food business has always grasped hype in the market because people are less into going to a restaurant they are into ordering food online (McKeever, 2018). Today's trend is all about a healthy diet and with this concept, the business entity is taking its steps in the market. Hungry Head will also serve online food via its distribution channels. With the use of applications, websites, e-platforms, etc. the company will sell its food. Through this step, the business will expand in the future.

A business is a legal entity engaged in industrial, commercial, and professional activity. Profit maximization is the goal, which is connected to the economic production of products and services (Murray, 2008). Business research, on the other hand, refers to research into a company that may be utilized to implement fresh concepts and assist in gathering data on the industry and market. With the use of market research, Hungry Head may widen its network within the industry and identify the tastes and preferences of the eaters that are in high demand. Hungry Head will need to do in-depth market research in order to grow its customer base in London.

The aims and objectives of Hungry Head are to give quality and tasty food. Another is managing the clients and focusing on the restaurant interior. With this, the business will become a leading food business in the country.

Stakeholder Analysis

Evaluating stakeholder's interest

Stakeholders can be a group of individuals or an individual that has some interest in the business as their actions have an impact on the company. There are two types of stakeholders external and internal. Investors, customers, vendors are external and labor, owners & managers falls under the category of internal stakeholders.

Employees

Employees are internal stakeholders as they affect the company directly. However, sometimes employees leave their jobs when they realize that the company is struggling. Bonus or increase in income is a perk to them when the entity is in profit. Their interest is in job security and salary.

Owner

Profit maximization is their first concern in a business (Madura, 2007). The role of the owner is related to earning more profit. Owners work on long-term strategies, organizational plans and increases in employee morale and productivity.

Managers

Managers are different from employees and owners. They work on the short-term stages rather than the long-term. Their job is to motivate the employees in terms of work or when they are struggling. Their interest lies in maintaining the corporate culture in the company and in making revenue.

Consumers

Consumers are the external stakeholders in the company. According to their taste and preferences the company needs to make changes in their products and services. Changes are the result of changes in trends, habits, availability, cost and consumer income. Their interest lies in quantity, quality and price.

Investors

Investors are important in a business as they rent their money. Investors only aim at earning profit as they have invested a certain amount in the business. They help the company in reducing any debt taken for business operations.

Suppliers

A supplier is essential in a business as it serves the raw materials required for further production. For a business good services and products are important which come from the vendors. Supplier interest lies in making money from sales.

Market Research

Overview

In the restaurant business market research comprises advertisement research which is related to the use of techniques and methods to reach company goals. With research, Hungry Head knows the consumer's preferences, and experiences, and makes a price conversion.

Positive and negative trends

UK's tourism service industry contributed about 40 per cent from 2020 to 2023 in the GDP. In the year 2022, the industry contributed about £214 billion to the GDP (Number of Travel and Tourism Jobs in UK, 2023).

Three positive trends of the tourism service sector are first, it is giving great opportunities for jobs. A 1% rise in UK tourism gives a rise of 0.89% in full-time employment (Visit Britain, 2023). Second, increase in the repeat visitor's rate as tourists want to extend their trips and want to spend more. Third, with the rise in tourism, other businesses are also viewing growth.

Three negative trends of the tourism services sector are first, investment constraints restrict the productivity, infrastructure and capital in the sector. Second, issues related to lack of skilled workers faced by tourism industry because of uncertainty, the skill gap and Brexit. Third, fluctuations in demand give rise to less productivity.

Potential clients

Hungry Head's potential clients are first, who are health-conscious. These customers do not prefer junk food and they want to eat healthy food (Griffin, 2015). Second, those who are suffering from diabetes and want to eat a sugar-free diet food. Third, customers who want a good decorum and ambience to enjoy their food. At Hungry Head the interior is relaxing and peaceful for these types of customers. Fourth, those who don't want to spend money on luxury restaurants but want to experience high-dine with different countries' cuisine. Hungry Head has a special menu for them which serves cuisines from different countries.

Thus, it can be stated that customers will be segmented on the basis of age, income and lifestyle. For gaining success in the competitive business arena, an entrepreneur will target young and old people who prefer healthy lifestyle. By targeting middle and upper income class people business entity can fulfill goals. In this way, demographic and psychographic basis of market segmentation will contribute in the success of new business. The numbers show the clients visiting the restaurants in London from 2018 to 2020. The customer visited restaurants twice or thrice in a month and was about 8.67 million in numbers.

The need, want and demand

In London customers demand a peaceful, relaxing, and comfortable sitting restaurant. Consumers do not want a disturbing environment when they are eating food. They want high-quality food with good standards from the sitting area. Another thing they need is an easy payment system at a restaurant so that they don't want to hassle much.

Hungry Head's want, demand, and need in the market are rising as people prefer healthy food. Converting the menu according to the consumer demand has encouraged Hungry Head to work more on this. The restaurant also has made strong connections with suppliers (farmers) in order to get organic raw materials (Saunders, et al., 2012). Also, the company has made some amazing deals and discounts for new clients and for those who pay online.

A good logo design will surely help the restaurant to earn a gain. As visualization is important a logo will remain in the consumer's mind. Images of dishes they made can be posted on social media to invite customers. Another is social media marketing with this marketing strategy Hungry Head can promote itself. Hungry Head can request its customers to put reviews on their website and on Google so that new customers will come.

Competition analysis

In the food business competition analysis is used to analyze the target market and consumer preferences.

Business Strategy

Overview

A business strategy is necessary to establish a distinct competitive advantage in the marketplace, to add value to the organization and to produce income. Future firm performance depends on its business plan. Hungry Head can use strategies like social networking marketing, retaining customers, restaurant attractiveness, and others to grow its base of consumers.

Long-term strategy

In the long run, Hungry Head has to focus on giving proper training to its staff so that customers can enjoy a high-quality experience (MarketLine Industry Profile, 2023). Also, Hungry Head has to make timely changes according to consumer preferences. It also has to bring some technology into the business in order to gain popularity in future. Long-run strategies are important to earn profits in the future. Focus will be placed on the investment in the staff, innovation, making decorum peaceful and using social media marketing to embrace new consumers will surely help Hungry Head to grow in the next 3 to 4 years. In terms of technology, Hungry Head can put emphasis on bringing automatic cleaning equipment, system-generated tickets for online reservations, and tabletop kiosks to attract new customers.

Short-term strategy

The short-term strategies which Hungry Head can implement are first by creating an attractive website. With this action, customers can easily make their reservations, cancel any booked table, make payments, and order food online. Even with a website the consumers can check the menu of the restaurant. Second, posting images on social media can help customers to notice or to check out the dining area. Third is daily deals and discounts with this Hungry Head can increase its consumer base (Fletcher, et al., 2018). Also, the restaurant can tie up with software that accepts online payment so that it can give extra perks to the consumers who use that software for making their payments. The fourth is to try to add new dishes to the menu. With this strategy, sales will increase because new dishes will attract foodies to try out new dishes on the menu.

Some control in the business is required in terms of costs like food, staff, and raw materials. Control is essential in tracking, profitability, and operation of the business. It will help Hungry Head to set its goals and make estimations for the future.

Hungry Head can implement stagnant food and inventory costs in order to lower its variable costs. Optimizing the operations, expenses, marketing, advertisements, salaries, and administrative costs can help in wealth generation in the business.

Financial plan

Profitability statement

Swot & Pestle Analysis Of Hungry Head

SWOT analysis

Strengths

• Cleanliness: Maintaining a neat and clean restaurant is important. Customers usually get attracted when the environment is clean and beautiful.
• Affordability: Hungry Head has set its prices which are very affordable to everyone. Consumers will have a high-end restaurant experience at a cheap process.
• Good services: By giving good and affordable services Hungry Head can increase its sales. Staff behavior, pre-bookings, cancellation policy, and clean tables and chairs all will contribute to attracting customers.

Weaknesses

• Opening of new restaurants: New restaurant openings can attract consumers and they get easily diverted. Consumers always look for new experiences and services and every restaurant tries to give new services.
• Funding is limited: Sometimes it becomes difficult to find investors for a start-up like Hungry Head. For giving new and unique experiences to the clients a lot of funding is needed.

Opportunities

• Healthy food options: Hungry Head offers healthy tasty food options to health-conscious people. By using organic ingredients in making the dishes the restaurant plays unique.
• Sugar-free dishes: For people who are suffering from diabetes, Hungry Head specially prepares sugar-free food for them.
• Location: Hungry Head is located in a residential area in London so it is a great opportunity as the nearby consumers will directly come to them.

Threats

• Other big restaurants: Stiff competition is there for Hungry Head from other brands as those brands were there before Hungry Head.
• Operational cost: An increase in operational cost is a big threat. Worker's salary, rent, vendor costs, maintenance costs, etc. are difficult to manage.
• Quality maintenance: Maintaining the quality of food, the quality of the restaurant is difficult for startups.

PESTLE analysis

Political factors

Political factors consist of government policies like taxation, trade policy, workers' law, health and safety of the staff. With stability in policies, a business can flourish over time. Health policies can give rise to the sales of Hungry Head. Another thing is taxes, taxes can affect the business with finances, quality and purchases.

Economic factors

Economic factors like economic growth, consumer income, purchasing power, interest rate, etc. help Hungry Head to plan its short and long-run goals. Increases in the purchasing power of the consumer and more income in their hands have brought hype to restaurant sales. But an increase in labour cost has some disadvantages like it will lower the profit earned. An increase in the prices of raw materials will also contribute to less growth.

Social factors

Hungry Head can implement its supply & demand model with social factors in place. It consists of culture, tradition, values, beliefs, etc. By implementing these factors Hungry Head can gain a large consumer base. By supplying food which is more like a homely cooked food experience to the consumer the business can gain success in future.

Technological factors

It includes innovation, advancement, technical adoption, automation, etc. Hungry Head has already implemented automatic cleaning machines in the restaurant to maintain high-quality cleanliness. Also, other things such as cameras for security, payment and account software will contribute to success.

Environmental factors

It includes security in raw materials, natural calamities, pollution, carbon emissions, etc. which impact Hungry Head's business in a negative way. Hungry Head has to implement waste management and recycling policies to maintain its reputation. By adopting cleanliness, and hygiene while cooking and serving the customers Hungry Head can attract new clients.

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Legal factors

It includes health concerns, consumer rights, product safety, etc. Hungry Head has to focus on the health and safety of its staff by giving proper training, setting rules, and giving health facilities to them (Altinay, et al., 2016). With employee protection, more people will like to join the restaurant thus creating more jobs in the area.

Digital Applications/Software

By using digital applications or software, Hungry Head can make its payment method more secure. Hungry Head can make its payment method easier for them and for their consumer as well. Hungry Head only accepts online payments so that it can keep track of the payments received or debited. With software, Hungry Head can do its daily tasks easily. Not only in terms of payments the restaurant can use the software in every function it performs (Tracy, 2014). To avoid any errors in finances and projections Hungry Head uses software so that there is no human error.

For digital payments, Hungry Head uses ‘SpotOn' which is a cloud-based software used for online payments in a business. SpotOn gives the facility of secure payments, and protection from hacking, fraud, and table side orders. Another is ‘Lightspeed Restaurant' which is also a cloud-based software used in restaurants. The software offers digital, contactless payment, sales tracking, online food delivery payment processing, payment management, etc. Hungry Head can also do add-ons on its website with this software.

For accounting and projections, Hungry Head uses ‘Resturant365' which is an accounting software used by restaurants for management (Fullen and Podmoroff, 2006). With this software, Hungry Head can do invoicing, account tracking, ordering, and staff scheduling. Resturant365 do not provide payroll services, but it can provide integrity with the suppliers. It also gives automated banking options to the restaurants. Another is ‘Xero' which is a cloud-based software. It provides invoice management, purchases, bookkeeping, expenditure, inventory, etc. Xero can also be used by anyone who does not even know what accounting and bookkeeping is. Xero has Guesto integrated for payroll processing.

Conclusion

In conclusion, to build growth and opportunities in the future Hungry Head has to make sure that it stands out from others in the market. Hungry Head's policies and differentiation lie in serving healthy food without compromising on the taste which is the biggest advantage for the restaurant. Another differentiation factor is serving sugar-free food for diabetic people which is a very new thing in the food business. Hungry Head provides high-quality food with organic ingredients used without any artificial substances mixed. It also provides different food from different countries so that its consumers can try that too. In this manner, Hungry Head's success will be driven. The key findings of the restaurant business are related to hiring skilled employees. For preparing good food chefs are required which demands high salaries which results in extra operational costs. Another is related to great quality and customer service. With these two things, Hungry Head can easily gather the attention of the consumer without doing much. Alternation according to consumer needs is the biggest finding. Consumers are the ones who run a business without consumers a business can not run. So maintaining good relations with the customers is very necessary for success.

The conclusion which comes out of this idea of mine about my business to open a restaurant with some specialities which other restaurants could not provide to the people. I recognize some of the problems which people face everyday in foodhubs, so I want make a step towards solving these problems which we face in our daily lives. Providing something and solving the problems of people is the root of any business. By giving these services to the people I think I can make a little difference in their lives

The conclusion which comes out of this idea of mine about my business to open a restaurant with some specialities which other restaurants could not provide to the people. I recognize some of the problems which people face everyday in foodhubs, so I want make a step towards solving these problems which we face in our daily lives. Providing something and solving the problems of people is the root of any business. By giving these services to the people I think I can make a little difference in their lives

References

Books and Journals

• Altinay, L., Paraskevas, A. and Jang, S., 2016. Planning research in hospitality and tourism. Second edition. Routledge, Taylor & Francis Group.
• Fletcher, J., Fyall, A., Gilbert, D., Wanhill, S., 2018. Tourism: principles and practice. Harlow: Person Education.
• Fullen, S.L. and Podmoroff, D., 2006. How to write a great business plan for your small business in 60 minutes or less. Ocala: Atlantic Publishing Company.
• Griffin, M.P. (2015) How to Write a Business Plan: A Step-by-Step Guide to Creating a Plan That Gets Results: AMA Self-Study.
• Madura, J., 2007. Introduction to Business. 4th edn. Thomson Higher Education. Available in Additional Resources in Moodle.
• MarketLine Industry Profile: Travel & Tourism in United Kingdom' (2023) Travel & Tourism Industry Profile: United Kingdom, pp. 1–80.
• McKeever, M., 2018. How to Write a Business Plan. Berkeley, California: NOLO.
• Murray, J.W., 2008. The Complete Guide to Writing Effective and Award-Winning Business Proposals: Step-by-Step Instructions. Ocala: Atlantic Publishing Company.
• Saunders, M., Lewis, P., Thornhill, A., 2012. Research methods for business students. 6th ed. Essex: Financial Times, Prentice Hall.
• Tracy, B., 2014. Marketing. New York: AMACOM (Brian Tracy Success Library).
• Online
• Number of Travel and Tourism Jobs in UK. 2023. Online. Available through: < https://www.statista.com/statistics/598098/travel-and-tourism-employment-contribution-united-kingdom-uk/#:~:text=Overall%2C%20travel%20and%20tourism%20contributed,in%20the%20country%20in%202022. >
• Visit Britain. 2023. Online. Available through: < https://www.visitbritain.org/visitor-economy-facts >