1. Background
This assignment examines the e-business strategies implemented in Strada Cafe – An Italian gourmet chain owned by Tragus group. Strada - A concept spawned in 2000 grew up to 30 odd chain restaurants before it changed hands, which was further expanded to nothing less than 55 restaurants. It grew up in a steady phase with the aim of establishing itself as a combination of ethnic Italian dining combined with the power of today’s technology. Tragus group ltd. established Strada as a chain of contemporary Italian restaurant serving high standard simple food. The food quality is maintained with fresh food made from finest ingredients. Now Strada has spread all over the country with more than 70 restaurants attracting customers
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Sales Performance
5. Competitive Advantage
6. Key resources
7. Cost structure
8. Pitfalls & Risks
9. Exist Model
10. Customer Value ‘ (Muelhausen, 2012)
Figure 1- General Business Model
3. Business Framework - Strada
Business objective
Improve the profitability through a disciplined management and make use of the latest technologies available. Invest in staff through training programs and expand the chain through market investments. Achieve service excellence both in quality and service. Acquire brands and expand the base company with new styles of eating (Tragus, 2014)
Business Challenges
With the rapid increase in eating-out trend growing at the rate of 4% a year, the restaurant sector has become an increasingly attractive sector for venture capital. But with more restaurants cropping in the country, Britain now houses over 20,000 restaurants (Barriaux, 2007), the competition has gained momentum for the restaurants to retain its customers and even big restaurants are striving to stay top as favorite dining spots for their customers. The sector though spins a huge amount of cash, is fragmented with different attributes.
The chain restaurants have managed to sustain in many of the crisis. But to do so they had to take up the challenges from both their peer rivals and also from the pub groups to lure customers through their doors. They went ahead to cut costs, implement marketing strategies with different schemes or promotional activities with meal deals,
There is an emerging ebusiness market that Broadway Café has to catch up with and in doing so, it will begin by first creating an assessment and assembling a team of employees, who may have the knowledge (cost saving method) to draft ideas and present for final review. The ebusiness model as defined by Baltzan (2009), indicated that it is an approach to conducting electronic business on the internet.
Gordon Ramsay Holdings also has several business principal such as “Standards are the staple”, “Discipline yourself so the customers do not have to”, “Do not let business come to statistics”. At first, I was amazed that his restaurants were so successful not to mention the large profits he made. Normally, Chef is not good at running a business. Astonishing new came that for the first time, he has admitted that his hospitality empire almost came close to collapse recently. After an ambitious overseas expansion plan, his business went into total chaos, auditors from KPMG found that Ramsay company was losing millions of money. Opening ten restaurants in ten months, Ramsay admitted that his ego brings him down and it is way too fast to expand a company like
4.1.3 How can an E-Business strategy help The Broadway Café attract customers and increase sales?
The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals
Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
The main objective of this study is to examine the important and advantages for Tesco in using e-business strategy to compete with competitors. It also includes on how Tesco could satisfied their customer needs or demands adequately with their e-business strategy and how Tesco could improve their current model and make it even better.
For this Business Strategy Report, I have selected a restaurant chain named Nando’s. It was established in 1987 by two friends, Fernando Duarte and Robert Brozin (Nando’s.com, 2017). Although being a South African brand it has Portuguese influence and the restaurant chain depicts these designs. Nando’s specialty is flame-grilled chicken spiced with their unique selection of marinade sauces and spices ranging from mild to extra hot and for those individuals not into the hot stuff, there’s a lemon and herb option. It also has other selected food options to choose from in their attractive menu. Its niche market is working middle class male and female customers who enjoy spicy food and casual dining. It also caters for kids and families.
The restaurant industry is said to be one of the oldest industries in the economy. As the economy and urbanization grow, so too does the industry of restaurants; it’s for this reason that the industry has been growing at a rapid pace. Even with the restaurant industry ebbing and flowing, there are still new entities entering the fray consistently. Some restaurants may close, but it will not be too long before a new restaurant opens in the place of the old one. Historically, the restaurant industry has contributed nearly 4 percent to the gross domestic product (GDP) of the United States (U.S.) economy. The most recent findings show that the restaurant industry employs more than 12.7 million people (which is approximately equal to 9 percent of the
COMBE, C. ( 2006). Introduction to e-business : management and strategy. Amsterdam ; Boston: Butterworth-Heinemann.
Continue to expand in the U.S. market using the “formula” that had been developed. Sell more products to existing accounts by either increasing the usage of current restaurants or consumers or, for retail, attracting
In order to achieve these strategies company undertakes a 5 P’s integrated approach to people, products, place, price and promotion. Company relies on its ability to continue to innovate and reinvesting in the restaurants to develop them according to system plans for world-wide growth, being consistent in providing excellent customer service and clean and friendly environment which enriches customers experience and create an overall difference that balances profitability with value.
The research will examine aspect of fine dining industry in Singapore. I will be assessing the competitive strategy of western fine dining restaurant in term of retaining existence customer and attracting new one. In order to identify retaining successful customer I will undertake survey in term of customer satisfaction and willing to pay. I will also interview restaurant’s managers who handle strategy and execution in order to develop attracting new customer. Last I will conclude with a good strategy would help a restaurant
to penetrate into the dinner market without risking its existing business model for fast food while benefiting
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.