Feasibility Studies in Restaurant

The restaurant industry is highly competitive, and that competition could lower their revenues, margins and market share. The business is subject to macroeconomic and other factors that may negatively impact the results of operations. Restaurant development plans under development agreements may not be implemented effectively. IHOP Corp. may have difficulty expanding in new markets outside the United States.

In this paper I will compare my favorite restaurant, Olive Garden, to its most direct competition which in this case is Milestones Bar and Grill. These two restaurants are in competition because they target the same market and are located within one block of each other. Each restaurant is owned by one of top restaurant companies in North America. Olive Garden is owned by Darden Restaurants which also owns Red Lobster, Smokey Bones, Bahama Breeze, Longhorn Steakhouse, and Seasons 52. Cara Operations Ltd. is the owner of the Milestones chain as well as Montana's, Swiss Chalet, Coza, Kelsey's, and several others. Although there are several other restaurants within the same area as the two I have chosen, I

This monopolistic competition market structure has a positive effect on Kudler because it allows Kudler and their speciality foods to carve out a niche that the competition will find it hard to enter. Kudler’s market strategy (locations and unique products) should be very effective in keeping out potential competitors and establish a large barrier to competitor entry. Since Kudler’s stores are located in areas with limited populations the ability of competitors to gain entry into their market is limited. Since competitors cannot enter their markets, Kudler should experience long-term profitability providing they keep their customers happy.

The analysis will apply important microeconomic concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization, which affect its long-term profitability. The analysis will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. The analysis will identify the market structure that best applies to the organization, and assess how the

7. on the information in case Exhibit 3, which fast-casual and full-service restaurant chains appear to be Panera’s closest rivals?

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 first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

•They are the most famous and one of the few outlets available in area and footfalls are generally heavy due to these•The places are usually visited very frequently by local people, students, etcPromotion•The joints rely on word of mouth publicity•There is no promotion done through ads for these joints. The promotion at maximum is limited to local newspaperSUGGESTIONS•McDonalds could increase the number of items served on its menu. Currently there are only 6 vegetarian and 6 non-vegetarian items served on the menu. It is also evident from the survey that many people feel that the variety of menu available is average and could be improved. Some of the customers prefer something new every time they visit. These potential customers could be targeted by increasing the number of items in the menu.

Providing a variety of foods and beverages all within a welcoming atmosphere would be hard for a competitor to replicate well enough to start taking market share away from

...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16

4. Based on the information in case Exhibit 9, which rival restaurant chains appear to be Panera’s closest rivals?

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.

When opening a new restaurant it is important to consider technology options that will offer competitive advantage, enhance profit, and work efficiently for the establishment. Three systems that are generally purchased for restaurant use are inventory systems, point of sales systems, and reservation management systems. All of these systems should be researched and compared on their functionality so the most suitable technologies can be implemented into the daily activities of the restaurant.