To: Mr Nick CEO XYZ Restaurant
From: Mr XXX, Corporate Communications Manager
Date: 21 March, 2017
Subject: Evaluation of Threats Posed by Rival Competitor to Our Business
Following your request to conduct a report about competitor analysis against the background of a decline in our own sales, I am writing this evaluation report to reflect on what I have found from my fact finding mission recently conducted at the newly opened BC restaurant nearby. Apparently, this new entity in the restaurant industry seems to be a threat to our own viability given that it is also competing for the same customers with us. As going to be illustrated below, the criterion that was used to assess the level of competitiveness and threat posed by BC restaurant is based on customer service. This criterion is subdivided into different categories so as to help us to assess how this new entity is encroaching into our customer base.
The major notable aspect about the operations of BC Restaurant which makes it unique is that it offers customer oriented service. The restaurant is capable of attracting many new customers by virtue of offering quality services that are designed to satisfy the needs of the targeted audiences. The customer choices and preferences are highly prioritized as the members of staff take their time to listen to what the customers say. I have observed that the workers at this new restaurant always try to act on what the customers say to them. This has helped them to create good relationship that is based on mutual understanding with their customers.
The other issue that I have noticed is that the new restaurant is comprised of a friendly environment that makes the customers feel at home. The atmosphere in this place is just relaxing and the customers can enjoy the comfort inside while they enjoy their meals or place their orders. The other thing is that the place has space for children to play and other tables are located in conducive places that can give the diners the privacy they may need at a particular time. The other issue is that the members of staff are very friendly and professional in dispensing their duties. The waitresses and waiters always show jovial faces characterised by welcoming smiles. The staff members talk with the customers and they offer the assistance that may be needed at a particular time. This has helped to show that the customers are treated as kings and very important to the organization.
The other characteristic about the quality of service offered by BC Restaurant is that customers do not wait in queues for very long periods after placing their orders. The service offered by the members of staff is very efficient since order processing only takes just takes a few minutes. The coordination between all the members working on the floor and those behind the scenes is very good since the customers always get their orders in time. The customers also have the privilege of placing orders from their chosen tables where they would want to have their meals. The customers can simply walk in and chose the appropriate place to sit and they are attended to by one of the members of staff. This strategy is very effective given that the customers do not necessarily need to stand in queues, an exercise that is despised by many people. This has helped to appeal to the interests of many customers as well as other people who can be potential buyers of the products offered by the restaurant.
Based on the evaluation of the operations of BC using the criterion mentioned above, it can be observed that it poses a challenge to our own business. What I have observed is that customers are mainly concerned about the quality of the service they get from a restaurant instead of the quality of food. This brings us to the conclusion that quality customer service is essential in order to enhance viability of business in this sector. People mostly frequent restaurants for their convenience and good customer service they will be expecting to get. Thus, service effectiveness is a virtue that should be prioritized since the customers are more interested in the convenience of having food in a restaurant than cooking it at home. The customers can always visit another restaurant if they are not happy about the service they get from the place. This is what we have observed that makes this new rival competitor in our neighborhood a threat to our business which of late has been witnessing a decline in sales.
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