Write a reflexive account based on the feedback you collect after sharing your idea with a peer group. To achieve this you should communicate, discuss and review your NVP concept with:
a)a pre-selected Working Party (e-WP) on-line discussion group
b)one other (clue: think innovatively?) self-selected discussion group.
The report helps in understanding the innovative ideas about opening a restaurant in United Kingdom. The report will help in proper identification of a new venture proposal about a new restaurant named Golden Union Restaurant with the help of Business Model Canvas. The concept of business has to be discussed properly with the help of core elements of the Business Model Canvas.
The main aim and purpose of the report is to generate a proper visualization of the concept of a new restaurant with the help of BMC elements. Secondly, a peer reflection report has to be analyzed as well as this will help in understanding the different issues that can be faced and proper implementation of strategies has to be discussed as well. Lastly, proper improvement reiteration has to be discussed as well as this will help in analyzing the potential improvement strategies.
- Original Business Concept
The concept of the business is relating to opening a new restaurant in United Kingdom and the name of the restaurant is Golden Union Restaurant. It is basically a fine dining restaurant and there are few objectives of the respective restaurant that are as follows:
- Keeping the cost of food below revenue of 35%
- Keeping the labor cost of employees between 20-25% of revenue(Spieth, Schneckenbergand Ricart 2014)
- Stay as a restaurant with outstanding quality of food and service (Benn, Dunphyand Griffiths 2014)
- Expand our advertising and marketing in other states and countries as well
- Averaging sales between 1,500,000 to 2,000,000(Cummings and Worley 2014)
2. Food and health department
4. Waste management organization
5. Takeaway container manufacturer
1. Generating awareness
2. Effective consumer care
3. Better cleaning and food generation
4. Training and motivation
5. Proper accounting and stock control
6. Raw material sourcing
7. Research and development
1. Proper startup funding
2. Proper employed personnel
3. Proper equipment storage and serving
4. Raw materials
5. Proper information technology with hardware and software
Business Cost structure
1. Equipment with serving and storage food = 6000
2. Salaries, labor and wages = 110,000
3. Raw materials= 112,000
4. Gas = 1500
5. Printing posters and flyers= 11500
6. Bank loan = 3500
7. Electricity = 1500
1. Superior and proper quality solutions for offering services to all consumers by low cost along with high value process along with distinct cuisines which offers effective guarantee regarding healthy eating.
1. Consumer service
2. Social media
3. Feedback practice
4. Personal contact
5. Training section for staff
1. Printing flyers
2. Printing posters
3. Social media
4. Word of mouth
5. Over the counter purchase
1. Booking of events
2. Revenue generated from drinks and salads
3. Over the counter meal purchase
3. Business individuals
From the above Business Model Canvas, it can be analyzed that the key partners of Golden Union Hotel in Edinburgh are basically the banks as well as other financial institutions that are providing proper funding for the startup restaurant. The Business Model Canvas is utilized for understanding the unique selling factors as this will help in understanding the value propositions as well(Schaltegger, Hansenand Lüdeke-Freund 2016). The value proposition is essential in Golden Union Hotel business as this helps in analyzing the offerings of the hotel to their customers. The key activities that are performed by the respective hotel includes proper portioning as well as costing of the food and other services that are provided by the hotel(Casadesus?Masanelland Zhu 2013). Proper marketing is included in the key activities of the hotel as this will help in gaining competitive advantage(Boonsand Lüdeke-Freund 2013). The value proposition of the respective hotel is to provide the clients proper and healthy food. This will help them in attracting clients and providing the clients with premium services as well(Huang et al. 2013).
The customer relationship is maintained by the hotel by keeping personal contact with them along with social media contacts as this will helps them in maintaining proper relationships as well. The monthly budget of the hotel will be around US$100. The channels that are used by the hotel is purchase over the counter wherein only payment through cash and this is for the customers who wants quality products as well as healthy products within an affordable range as well. The key resources that are used by the hotel is relating to the proper equipment that is required for the storing and serving food in the hotel (Schneiderand Spieth 2013). The customer segments are the passersby, formal employees, college students and the business persons (Baden-Fullerand Haefliger 2013). Cost structure refers to the variable and fixed costs that the organization incurs. The business cost structure includes the different costs related to the equipment that are required for cooking and serving the food as well (Aversa et al. 2015). The operational costs include proper electricity, labor and gas that are required in the hotel as this will help in gaining proper competitive advantage in the competitive market. The total operational expense of the hotel is $265,727, which has increased due to the increase in cash flows from operating activities.
The revenue streams of the Golden Union Restaurant are increasing in the third year with $146,985 Net Profit in the third year and a Sales Revenue of $666,672. This includes sale of meal, sale of packs of fruit salads as well as other meals as well (Saebiand Foss 2015). Proper revenue stream is required in the hotel as this will help the business to flourish properly in the near future as well (Maglio and Spohrer 2013). Sales forecast is a crucial part of the business that involves the estimation of business sales in future. The Gross profit of the restaurant is also increasing at a rapid pace with $ 451,579 of gross profit at the end of third year.
Therefore, these are the nine core business model canvas elements that are required in the hotel business as this will help in analyzing the different resources, segments as well as channels that are required for success of the business. The customer segments and requirements are essential to be known as this will help in analyzing the issues that are faced by the startup hotel and rectify such issues as well. For each and every start up business it is essential to have a business canvas model as this will help in understanding the cost and revenue streams that is required for the business.
- Peer group reflection
- a) (E-WP) ON-LINE DISCUSSION GROUP: I have conducted a proper survey with the (e-WP) on-line discussion group who are related to the pros and cons of my start-up hotel named Golden Union Hotel in Edinburgh. I gathered different views of the different individuals on the online discussion group. There were few members who commented that the location of the hotel was not central and this can cause loss to the entire business.
They felt that the location of the hotel is far away from the main city and this may not attract customers like the other competitor hotels in the city. The other problem that has been highlighted in the collection of views of the peer group was relating to the capital that has been invested was too high and this can be a great loss for the company as well. The new venture of the start-up hotel was a good idea but there were issues relating to the infrastructure of my start-up hotel as the other hotels that were situated in that particular area were all 4 or 5 start hotels and the services provided by them were more luxurious in nature. The trends are sensitive in nature as the new trends that are used by the respective hotel is risky in nature and this can create huge issues for my new start-up as well.
The other issues that I have learnt from the online discussion group is relating to the web designing and the online coverage of my hotel business. My hotel has no such media presence and this can create huge issues in the hotel industry business that has been started up by me. After receiving the different reviews about the issues that can lead to my start-up hotel, I felt that I have to take necessary steps in order to reduce such issues with proper implementation of strategies.
- b) Group of restaurant owners in that particular area
Issues Highlighted by the Peer Group
From the views of the group of restaurant owners who are conducting their hotel business in that particular area, I tried to figure out that different issues are cropping up in my start up business. The first issue that I came across after taking the reviews from the other restaurant owners is relating to the number of suppliers in that particular area. The number of suppliers in that particular area is less than other areas and this is a big challenge for the other hotels who have recently established their business. I feel the start-up business should have been in such a place wherein proper production of the raw materials along with proper availability of the suppliers is necessary and this would have helped me in flourishing in that area as well. The second problem that I came to be aware about was regarding the pricing of the different foods and services in my start-up hotel. The other owners of the restaurant felt that it was too high and the customers will never be attracted to such high pricing as well. This was because as there were less hotels in that area and already there were 2-3 hotels that were performing pretty well and the customers preferred visiting such hotels as well. According to the other hotel owners, I felt that I should lessen the prices of the different products and services as this will help me in attracting more customers. The last issue that has been faced by me was relating to the cuisine as well as other equipment and facilities that were similar to the other hotels in the particular area and this is a big challenge for me to attract more customers in my start-up hotel.
From the different reviews from the online group individuals as well as from the other hotel owners in the same locality, I have pointed out different issues that can be faced by my start-up hotel relating to infrastructure, pricing, cuisine and other equipment related issues. I feel that these are the different issues that have to be properly sorted out by me with the help of proper implementation of strategies. I feel that since the area that has been chosen by me is not centrally located, this will be a tough competition for my start-up hotel to survive in such area. The marketing efforts that has been implemented by me was improper in nature and this will increase the workload. The other issue that I have come across about my hotel is relating to the high rate of services that is charged by my hotel as this can reduce the customer’s attraction and shift it to other competitor hotels in that area. I have to properly implement strategies in order to reduce such issues by properly consulting with a head counselor for my hotel as this will help me in understanding the requirements of the hotel and this will help my hotel to perform well in the entire competitive market.
- Concept Improvement Reiteration
Business model canvas is a startup template and strategic management technique used for documenting or developing the existing business model. It helps in describing the firm’s value proposition, customers, finances and infrastructure. The key partners of the Golden Union Restaurant are bankers, food department and labor experts. The key activities in the updated business model include adequate sourcing and performance measurement. The customer segments besides including traders, business individuals, employees also consists of customers by providing them high quality foods have home chefs. There are different improvement strategies that can be adopted by the company as this will help in improving the conditions of the start-up business and perform better in the hotel industry as well. Firstly, proper check is required to be done on the cuisine as the same kind of cuisine can impact the start-up hotel business (Adrodegari et al. 2015). Secondly, I need to properly ascertain the number of suppliers in the particular area as this will help in understanding the requirements of the hotel and contact with the other hotels in the industry as this will improve the condition of the start-up hotel. Proper managing of the expectations is essential in nature as this will help in attracting customers and this will provide best value to the customers as well. Proper analysis has to be done and is required in order to understand the requirements of the customers in the particular area and this will help in proper creation of availability of key resources for the respective hotel. The key resources and channels are essential in nature as this will help in maintaining positive attitude towards the customers. Proper staffs have to be empowered and recruited as this will help in fulfilling the demands of the customers and take the hotel in a different level as well. A proper as well as updated business model canvas has to be created by the business of the start-up hotel as this will help in managing proper channels of the business as well as analyzing the segments of customers and make it more diversified in nature as well (Serrat 2017). The current business model cannels requires over the counter payment through cash. Moreover, various distribution channel has been explored by Golden Union Restaurant to attract the target customers.
1. The municipality of Edinburgh, bankers, labor experts and food and health department.
2. The key suppliers of Golden Union Restaurant are National Food as well as Payment processing.
3. The key elements are generated through bank loans.
4. The main activities are performed through the partners, adequate licensing and inspection of the operational activities of Golden Union Restaurant. 5.Proper control for food quality, positioning and costing along with container manufacturers
1. Adequate sourcing and storage of the organizations raw materials.
2. Food costing besides portioning
3. Preparation of food, Proper cleaning and costing.
4. Research and development and review of product.
5. Adequate accounting, which includes cash, stock and sales.
6. Adequate performance measurement of the hotel.
7. Maintaining customer care services.
8. Motivation and proper training.
9. Handling legal issues and FDA along with building trust.
1. Latest advancement in technology.
2. Proper startup funding for the organization.
3. Adequate personnel that includes waiters, kitchen assistant and managers.
3. Sufficient equipment is required, which includes serving food and storage.
4. Adequate IT including hardware and software.
5. Creating goodwill by raising awareness among targeted customers.
Business Cost structure 1. The vital elements inheriting costs are rent as well as labor and material costs.
Proper maintenance as well as development.
Superior and proper quality solutions for catering the overall customers through high value process as well as low cost with different cuisines, thus providing guarantee of sufficient and healthy eating. The hotel can further implement different chefs for various cuisines for reducing the overall cost. Furthermore, Adequate commercialization for home kitchen is required
1. Adequate personal contact
2. Adequate feedback surveys
3. Social Media (Face book, Whatsapp and LinkedIn)
4. Increasing customer engagement.
5. Providing adequate customer services.
6. Maintaining and retention of customers.
Trust and Safety is needed in the hotel to build the community.
1. Purchasing over-the counter through cash
2. To attract the potential customers several distribution channel is explored.
3. The channels can initiate various applications such as websites and mobiles.
1. The stream revenues of hotel includes sale of used cooking, sale of meal and fruit salad packs.
1. Customers are willing to pay US$3.00.
2. Such as payment using cash.
3. Advertising properly to attract the potential customers.
4. The sold meal percentage has to be analyzed.
1. The customers are provided with high quality food at a low cost.
2 Healthy foods are provided that also includes home chefs.
3. The vital customers of the Golden Union Restaurant are as:
Proper formal employees
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