Discuss about the Principles of Management for Hospitality Industry.
Everyone has an all time favourite restaurant that they love to eat at. The best restaurant to go at Australia for Italian food is Bellini Italian Restaurant. This peaceful place has the delicious food for all the Italian lovers.
Bellini Italian restaurant is the most awesome place to eat and the finest Italian restaurant in town. It is owned by Francesco Del Piero. It is having a capacity of 78 people. And the average daily guest turnover is 39. The menu style of restaurant is A la carte that means food serves according to the menu over there. It is serving finest Italian food from last 6 years. It is find that all the consumers of this restaurant are satisfy with it. According to them the taste of Italian dishes in this restaurant is just amazing. Policies of this restaurant are just amazing. This restaurant try to feel the entire guest valued. People once dine themselves over there, always dine there. Bellini always provide fresh food to its clients, it aids their goodwill into the market. It has opened its door since 2010. Company is serving very well to its clients and by satisfying them, company is making loyal customers forever. (Bellini the Italian Cuisine, 2016)
This restaurant gives the best feeling to their customers. Employees are so trained over there. They treat every guest very well. Their platting is just fabulous that it automatically attracts their customer towards their food. The way they talk to their guest and solve their quarries makes their guest more comfortable. The interior design of restaurant gives a touch to Italian culture and it makes a feel like Guests are in Italy itself. The aroma of their food reminds everyone that they are hungry (Negi And Manoher, 2009).
Bellini Italian restaurant is doing very well in weekends. But in mid week period there are very less people. People don’t dine themselves outside in mid week period. And it affects sales of restaurant. Mr. Francesco did a study on how can he increase sales and profitability in mid-week period and he found that there are so many strategy he can apply for increasing his sales.
He found that there are so many tactics which can help him to increase the sales of his restaurant in mid-week period also. But Mr. Francesco find that introduce an “all you can eat” buffet system is the best idea for increasing sales as well as profitability of his business in mid-week period.
“All you can eat” is a buffet technique where guests are offered unlimited food; they can eat as much as they want at a restaurant for a fixed price as long as they continue to eat. “all you can eat” is usually used to describe about a meal at a restaurant where people can have as much food as much they can, people serve themselves often and it all are in a fixed price. Many restaurants also aid this facility to increase their sales and profitability (Moore, 2013).
The primary job of restaurant manager who is providing “all you can eat facility” is to fill the customer’s belly as cheaply and as quickly as possible. But for satisfying the customer and making them loyal customer, AYCE buffet manager must do other things also. They must create a perception towards their food that it is of best quality and there is ample variety of food. At the same time, manager must manipulate the portion customers are having and their choices and ensure that there is no food wastage (Tesone, 2010).
Psychology says that AYCE helps a restaurant to not only increase its sales but profitability also. A person can’t eat that much food in one time that much he or she is offered. A person attracts towards “all you can eat” buffet because they find ample varieties in a cheap rate. But mostly people can’t eat all the food they have paid for. A manger also provide services in such a manner that customer can feel satisfy by consuming less food and even without wasting any food (Dholakia, 2015).
AYCE helps a restaurant to generate high revenue- it generally focus on price conscious customers by offering them a lot of worthy products for some dollars. This tactic is to ensure that customer satisfy their zest without overeating the food in such a way that all you can eat offer unprofitable. (Ozimek, 2012)
The success of AYCE model relies on prices decided by management that maintains profit margin of company while providing exceptional worth to most of the customers. As the name says, this model originated with offering unlimited serving at a restaurant for a single price.
Strength and weakness of “All you can eat model”: generally, this model has less profit potential and normal revenue potential in comparison of other business model. This model only target the cost conscious consumers and it don’t lend on premium pricing. This model also limits profit potential sometimes.
The complexity of this model varies from business to business, but it provides a medium range in comparison of other models. This model is quite easy to understand but complex in managing cost and managing price points or product lines.
Buffet is a kind of meal where several dishes are consisting together for guests from which they serve themselves. Usually dishes are places at a common or public area so it becomes easy for guests to serve themselves. This technique is basically used by those restaurants that have minimal staff but has to serve many guests. It becomes easier for customer to see and decide that which dishes they want to have and how much they want to eat.
Buffets are quite different from “All you can eat” as in buffets meals charges can vary according to the food but in “all you can eat” consumers have to pay a fixed price, no matter how much they eat. Buffets often provided by restaurants either in big parties or at the time when staffs are minimal but “all you can eat” is provided for increasing the sales and target the medium class families or college going students.
Bellini Italian Restaurant must go for “all you can eat” strategy. It is very effective for Bellini Italian Restaurant because a) Customer always have a need to have more food tomorrow, b) customer can never resale the food they have purchased and c) there is always a natural limit for customers to eat something. Thus it will not only help Bellini Italian restaurant to increase its sales but also in increasing profitability.
Bellini Italian restaurant is suffering from less consumer at mid week period. So “all you can eat” model is best for them to increase not only their sales but profit also. As people will attract towards the food where they don’t need to pay much and they can have ample of varieties. Cost conscious people will like this model more as they can have their favourite food in fewer prices.
For this model Bellini Italian restaurant have to focus on its pricing, menu, target market, risk, promotion strategy, advertising, satisfying customers etc. these factors will help Bellini Italian Restaurant to apply this model successfully. Before applying this business model Francisco must take care about pricing, products which he is going to offer, fixed price and variable price on those products, Serving style, timing for this like this offer will be available on what time for customers etc.
By this Bellini must target middle class families or college going students, who have less money in their hand but want to have good food. These target market will help Bellini Italian restaurant to maximise their table turnover.
It is found that after applying this strategy table turnover get increase in mid-week period also. People are attracting towards this new strategy where they have to pay less and they can have as much as they want. The fixed cost per plate as well as the variable cost each plate get reduces. And restaurant is making loyal consumers, their goodwill in the market get increase, and by this they are satisfying their consumers more.
Earlier, Bellini Italian restaurant was earning 10-15% on each head but now profit margin increase by 20% per head as Bellini is focusing on the strategy that Fill the customer belly as cheaply and as quickly as possible. It is helping Bellini in not only increasing table turnover but even in increasing profitability also.
Hence, this strategy is working out as people feel to have such a yummy food in fewer prices. Customer is attracting in mid week because they think that if they will go in weekends they have to pay more for the same food. But Bellini Italian restaurant must have to work more on this model as this model can affect negatively also. Because sometimes people start over-eating when they find that they have to pay a fix price, no matter how much they eat. (Clarke and Chen, 2009)
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