Discuss about the Strategies And Procedures For Restaurant Sector.
With increasing per capita income, majority of the Australian people are looking to spend their money in luxurious activities. It enhances the overall business opportunities for the restaurant sector in Australian market (Scholes, 2015). For that reason, the business plan is looking to utilize the provided opportunity by developing restaurant in Sydney area. The proposed restaurant will try to offer something new and unique for the customers so that the business venture can emerge as a successful investment. The Kitchen will be an upscale deli specialization in a combination of fast food and Chinese dishes. All the recipes provided by The Kitchen will focus on providing something unique for the people living in Sydney area. The essay will concentrate on evaluating different strategies and procedures that The Kitchen needs to use for accomplishing all the business goals and objectives. It will evaluate both internal and external environment for understanding the possible future challenges in an appropriate manner.
The restaurant sector is extremely competitive in Australian market, as many small and large size restaurants have developed their presence in Australia. Moreover, Australia is among the most popular tourist destinations, where people from all across the globe visit on regular basis. As a result, the demand for quality restaurants is always high in Australian market. Therefore, The Kitchen is likely to have enough opportunity to establish their businesses in an appropriate manner. As per the article by Bharadwaj et al. (2013), opportunity is not the only thing that guarantees success in the market. In fact, The Kitchen needs to focus on several other factors for ensuring continues growth in the competitive market. The factors include proper evaluation of the internal and external environment related with the restaurant industry is essential for accomplishing all the business goals and objectives. Now, The Kitchen will concentrate on start up the business with the clear objective, as it will help the restaurant to move forward towards right direction (Kim et al., 2013). The Kitchen will aim to emerge as one of the most popular restaurants present in Sydney area with the delivery of quality foods and services.
According to Verbeke (2013), proper utilization of internal structure is essential for performing all the requirements of the operational procedure. Therefore, The Kitchen will have to focus on developing appropriate structure where all the employees can able to understand their responsibilities in an appropriate way. The Kitchen needs to develop separate departments like cash, marketing, serving and cooking so that all the complex requirements of the operational procedure fulfils within the limited timeframe (Heung & Gu, 2012). In addition, appropriate development of organizational structure allows businesses to formulate clear communicational procedure. As a result, it eliminates the possibility of any confusion within the workplace. Moreover, as The Kitchen is looking to provide both fast food as well as Chinese dishes, it will require people with specific knowledge and skills (Oestreicher-Singer & Zalmanson, 2012). Now, as a start-up, it will be very difficult for The Kitchen to recruit too many people at a time. Since, it will increase the overall cost of the operational process, which is obviously create challenges for the restaurant. Hence, the business plan of The Kitchen will focus on developing different teams with very few employees in order to keep the initial budget under check.
As per the article by Blackburn, Hart and Wainwright (2013) internal and external environment evaluation is extremely important for developing effective strategies for the business expansion purpose. Now, The Kitchen have targeted Sydney area for developing its outlet, as it is one of the most crowded areas of Australian economy. Now, The Kitchen will also have to ensure that the required amount of raw materials is always present at the outlet so that they can able to fulfil all the needs and wants of the customers. Moreover, The Kitchen also needs to be careful at the time of selecting the location for retail outlets, as it will create major impact on the overall revenue level. The management of The Kitchen will have to ensure that the required level of transportation is available at the selected location so that maximum number of people can visit the outlet on regular basis (Schrader, Freimann & Seuring, 2012). The Kitchen also has to evaluate the political and economical condition of the community before selecting the pricing strategy. Many communities or societies have different likings regarding the foods. Therefore, improper assessment of taste and preference will eventually come as a major drawback to the organization. It addition, The Kitchen will also have to focus on maintaining the legislative guidelines by registering the restaurant name along with completion of other necessary activities.
As highlighted by Iacob, Quartel and Jonkers (2012) maintenance of strong customer relationship with the customers are essential for retaining them for longer period of time. For that reason, The Kitchen needs to focus on the quality of the provided services so that customers can feel connected with the restaurants. In the present competitive environment, providing something extra to the customers has become a norm. Almost all the businesses have tried to develop different unique strategies so that all the customers feel happy and satisfied with the provided facilities (Hwang & Ok, 2013). Increasing competition in the restaurant sector is among the prime risk factors that The Kitchen has to counter in order to achieve sustainable growth in the market. As a start-up restaurant, The Kitchen not only has to compete with the other small restaurants but also with the popular ones as well (Higgins, Omer & Phillips, 2015). For that reason, it will optimum for The Kitchen to utilize comparatively low pricing strategy for gaining pricing advantage in the market. However, increasing price of all the raw materials for the development of foods is another prime concern that will create challenges for The Kitchen to utilize low pricing strategy. Hence, The Kitchen needs to focus on developing strong long-term relationship with all the suppliers in order to ensure timely delivery of quality raw materials for long period of time. The development of strong relationship with the suppliers can actually reduce the cost related with the operational procedure in a major way (Läikkö-Roto & Nevas, 2014). Therefore, it will eventually help The Kitchen to increase the overall profit level in an effective way.
As stated by Spender (2014) appropriate utilization of marketing strategy is essential for providing required level of information to the targeted customers. Specifically, as the competition in Australian restaurant market is extremely high, The Kitchen will have to use different marketing strategies for accomplishing all the objectives of business plan. The Kitchen can use digital platforms like different trusted websites and social media for providing information regarding their offering and services. It will allow The Kitchen to reach maximum number of potential customers in very limited time span. Recent survey has highlighted the fact that around 70% of youth evaluate the review ratings of a particular restaurant before going physically (Chen & Elston, 2013). Therefore, strong establishment of image has become essential for any restaurants to induce customers to visit outlets on regular basis (Bharadwaj et al., 2013). As mentioned earlier, The Kitchen will heavily depend on low pricing along with quality food with service to gain major share of the target market. Now, the management of The Kitchen will have to ensure that the quality of service has remained intact at all the time. Otherwise, the overall image of the organization can get hampered in a major way.
Apart from that, The Kitchen will also have to concentrate on different functionalities associated with the operational procedures for ensuring continues success in the market. For instance, The Kitchen will have to use different payment method so that customers can pay as per their convenience. In the current time, utilization of different payment method has become obvious, as people from different background like to use different way of payments. In addition, The Kitchen will have to ensure all the staffs and receptionists are well dressed, which will increase the overall ambience value (Kwok & Yu 2013). All the staffs within the restaurant will be trained for dealing with people from different cultural background. In addition, The Kitchen can also focus on providing different offers like percentage off or combo offer so that it can attract more number of customers on regular basis.
The above illustration has highlighted the fact that The Kitchen will have to be very careful at the time of initiating several strategies for establishing its presence in the market. It has mentioned that the restaurant industry is extremely competitive in Australian market, which is likely to create different types of challenges for The Kitchen. Therefore, the business plan of The Kitchen will focus on reducing the price of the product as much as possible for gaining price advantage. It will also try to maintain all the political and legislative guidelines for avoiding any type of unnecessary challenges at the workplace. Therefore, The Kitchen is likely to tackle all possible challenges for establishing its presence in Australian market successfully.
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