Analysis of Libyan Restaurant In Manchester - Case Study Example

Libyan Restaurant in Manchester By Student’s name Course code + name Instructor’s name University name City, State Date of submission 1.0 Company Introduction Martyr’s Square Restaurant is a moderately priced 60-seat restaurant that will offer to the clients a Libyan cooking, which is a mixture of Mediterranean and Arabic and a resilient Italian influence (Alonzo, 2009). The restaurant taking a cue from the Libyan recipe will serve soup, a selection of meat/fish dishes, salad, vegetables, and tea. Martyr’s Square Restaurant will be suited at Douro House 11-13 Wellington Road South, Stockport SK4 1AA. The premise is a 2500 sq. ft. on the building ground floor made available for use as a restaurant with ancillary staff rooms, storage area, and toilet facilities and the premise is ready for occupation (Vo, 2014, p. 3.). The premise will be acquired by a five-year leasehold contract with a market rental rate of £35000 per annum. When setting a food business, the Manchester City Council requires that the restaurant refer the Food Standards Agency for the relevant certification and subsequently be issued with a premise registration. Competitive room rates have been subsidized by the restaurant as a measure of attracting contract guests over the next 6-12 months period. The survival of Martyr’s Square Restaurant in the present business setting will depend on repeat company contract clientele constancy to the brand. This implies that the brand ought to continue delivering on its values and promise (Rainsford & Bangs, 2001, p. 13). Martyr’s Square Restaurant will be moderately priced. Background music comprising of popular Jimmy Buffet hits depicting sweet life on the water will mix with a variety of pop cultures. The decoration of Martyr’s Square Restaurant will feature wood accented construction, which will be blended with a nautical theme color. Diner style tables will be made in a manner that surround the heavy wooden chairs and accompanied by covered booths. The restaurant will be owned and operated by Martyr’s Square Restaurant LLC. The owners and managing members of the firm, Linda Jones and Harry Steve, are seeking additional financing to add up to their contribution of $45, 000 to fund the business plan. Target market evaluation and intense market research suggest that the company is ideally situated to provide for an unsatisfied market subdivision. Years of marketing and functioning experience have been documented and organized to create a detailed blueprint for the company’s success. Proven operational systems and marketing techniques will enable the management to get proactive instead of being reactive to the obstacles and conditions related to opening of a new restaurant. Having a rigorous and firm functioning plan will allow the restaurant’s management to focus more on building sales and not profit. 1.1 Mission The mission of the restaurant is to emerge as one of the most successful restaurants in Manchester, and that the establishment of Martyr’s Square Restaurant will serve as a “market tester”. Thereafter, the company hopes to advance its territories and open other restaurants in other regions. Martyr’s Square Restaurant will strive to be a premier restaurant in the marketplace. The aim of the company is to ensure that its clientele taste and enjoy a unique experience when vising their premises. To achieve these, the company will: Produce a unique, pleasurable and innovative menu that will distinguish it from the other business competitors; Sell its products only with a high quality and keep its clientele happy with all their various product categories; Promote good and worthy values of the company culture as well as business philosophy; and Gain access to high-traffic shopping malls adjacent to the target market. 1.2 Objectives i. To reach sales of $50k at the end of the first year, and more than $100k the second year; ii. To incur workers costs of less than $10k the opening year, and less than $75k during the year 2; iii. Become profitable and cost-effective in year 2, and reach better than 6.5% proceeds by the 3rd year of operation. 1.3 Key Success Factors Private ownership: Martyr’s Square Restaurant will be privately owned and not be subjected into control by outside forces. Good location: The location of the restaurant will feature its individual unique uniqueness in merchandise demonstration as well as other brand structure attributes. Repeat business: Every consumer who walks in the restaurant should be stimulated to come again. The right foods served, with pricing that is high enough to establish credibility, and would not be so high to limit clients. 1.4 Company Start-up The proposed restaurant will cost an approximated figure of $650, 000 to start. Funding for the business venture will be contributed by $45000 from the restaurant’s owners and the remaining amount will be sourced from proceeds from bank financing. The restaurant is a moderately priced restaurant that features family style service of Libyan specialties. For the start, the dining experience is anticipated to last 45 mins-1.5 hours. Clients who visit the restaurant will be greeted by salt-water aquariums while entering the restaurant. 1.4.1 Operations-Office Equipment Martyr’s Square Restaurant’s facilities swill comprise of a 60-person capacity eating area, backroom area, and front/counter area where ovens, commercial stoves, and refrigerators are located. 2.0 Services Provided The restaurant is bent to satisfy clients by providing a trendy and fun place where clients will have great foods in a social environment. The restaurant plans to import and copy from other global restaurants a big repertoire of ethnic recipes and ingredients. It thus forecasts that the majority of purchases should be drawn from the recommendations made by its chefs. Ethnic recipes will be useful in providing clients with unusual and diverse menu. The employed chefs will have the role of emphasizing healthy dishes as well as recognising the trend within the industry where the restaurant operates. 3.0 Market Analysis Martyr’s Square Restaurant hopes that the targeted market can be segmented into four separate groups, ones that it will target. Group one will include the lonesome rich, whose number is approximately 4000. The second category is the young happy clients who are presently mounting at an annual rate of 5.5% with 2500 potential clients. Group three will include the rich hippies who are known known to love organic foods and ethnic cuisine. The final category are ones that would be interested in the menu’s healthy offerings, and would mostly comprise of dieting women. 3.1 PESTLE Analysis Political Factor: The regulation from the government will be hygiene, healthy, food standards, and being allowed to serve approved foods. The restaurant industry will abide by the economic policies of governmental licenses and will allow constant inspection by the Department of Foods from the Ministry of Health. Economic Factor: The restaurant will have to deal with the fluctuating interest rates that are proportionate to the cost of capital. The economic trends in the region will compel the restaurant to seek for profitability and sustenance of the business. Social Factor: The restaurant is armed with the knowledge that certain cultures in the region are now allowed to consume certain foods. It has learnt the background and culture of the country, region and people before initiating the restaurant business. The eating habits of the targeted clientele will definitively affect the sales of the restaurant. Technological: The restaurant understands that a good infrastructure would certainly assist the business to improve. The use of new technology will lead to reduced wages and would lower specific costs. Ecological Factor: Climate change remains a threat due to its negative effects on the restaurant. Legal Factor: The restaurant should follow the laid down legal requirements that are imposed on its macro-environment. This pertains to the impact of laws and regulation on all restaurants. 3.2 SWOT Analysis This section provides an overview of the internal strengths together with weaknesses of the restaurant, and the opportunities plus threats facing the firm and especially in its external environment. Strengths Reputation: The restaurant hopes to establish itself as a strong reputation within both the local market and travel and corporate trade markets; destined to ensure quality, reliability, and excellent service. Brand strength: The restaurant’s brand values do represent stimulating brand loyalty amongst the present and new clients. Shared value: The restaurant will achieve a good propositional value which is clear and well communicated. Weaknesses Facilities: certain rooms require to be upgraded and renovated in line with laptop links, high-speed internet access, and technical equipment. Systems: formalized systems resulting from comprehensive work environment could be improved. Opportunities Client dependency: repeat corporate business is based on individual quality and service in a luxurious environment. Competitors: presently, there exist no direct competition, specifically in terms of the ‘5-star’ niche. Threats Economy: it may take a lot of time to recover from slight recession. Substitutes: full serviced and furnished service apartments that offer lower daily rates. 3.3 Market Segmentation and Target Market Martyr’s Square Restaurant targets three main markets: Workers with families looking for cheap foods and dinner at the end of the working day; Surrounding businesses looking for dinners during their business meetings; People working in the downtown area during a normal working day, who will be looking for convenience for late lunch and dinner. Each of these market segments comprise of people working in the downtown area or flow through this particular area. There will be undetermined percentage of every market that will be seeking for an eating establishment. Martyr’s Square Restaurant is dedicated to offering benefits and value to all its clientele, above the typical standard of other restaurant facilities at comparatively affordable rates. The restaurant seeks to provide its prospective clientele with an exceptional individual service and at a level of recognition, which they have come to accept. The firm will thus provide its clientele with a luxurious and relaxed environment within which a room will be sufficient to conduct any form of meetings and businesses (Vrtiprah, 2000, p. 770).The environment to be felt by the restaurant’s clientele should be one that cannot be felt by other competitors. According to the proposition by Ryan (2014), the guests to the restaurant should always develop a mutual relationship with the restaurant and ensure retention of value for their money, efficiency, and dependability in providing them with the required support. It is a relief that the Manchester City in which Martyr’s Square Restaurant operates in has a very strong sense of community. 3.4 Market Growth For the business market, Martyr’s Square Restaurant needs to focus on specified firms with certain opportunities. For individuals, the company needs to lever off good recommendations, by depending on business clientele. Its business market is projected to gain the potential of offering vast volume sales to the restaurant during the peak hours of 10 a.m. to 12 p.m. satisfaction granted to this group will offer an important long-term revenue stream. On the part of the business market, the restaurant firm plans to do a good target market marketing through billboards, business discounts, flyers, and creation of a record of fast delivery. The restaurant will also build a marketing strategy comprising of word-of-mouth. This would be done slowly, by understanding that much of this will grow from the business market. Further, the restaurant plans to do various joint marketing efforts with other local firms, including the production and distribution of referral books to give to certain individuals. 4.0 Marketing and Promotions The restaurant anticipates its customers to be Libyans and Middle East countries citizens and to some extent, curious locals who would like to sample some of our delicacies. Within the market in Greater Manchester, we have identified Aladdin Restaurant and JS Restaurant as our competitors. Aladdin Restaurant has consistently served it clients with authentic Middle Eastern food but for starters the premise does not portray existence of a restaurant and customers need to come with their alcohol, and they pay a corkage charge of £1. On the other hand, JS Restaurant has been able to integrate into its menu a mix of Arabian delicacies and the British food in its menu (Thomas, 2014). However, clients have complained about their specialty; the early bird menu requires one to book in advance and operate on specific hours. To be able to compete with our competitors, our services will be 12 hours a day, offer a variety of wine to our clients and our meals will be served with green tea which according to Libyan traditions is taken to aid in digestion after a heavy meal. Manchester has been identified as the city with the highest number of expatriates from Libya in the United Kingdom. The opportunity in this market is very viable especially with a strictly Libyan menu to serve the clients who are eager to sample the home country dishes. Martyr’s Square Restaurant marketing strategies accentuate to first create awareness to the customer regarding our services, develop the customer base and subsequently working to build the loyalty and referrals from the customers (Ryan, 2014). Our premise is positioned at the town center. Hence, we will be able to use print ads such as neon signs and utilize social media sites such as Facebook and Twitter to attract clients. 4.1 Strategies The major thrust of strategy is to lever the company’s ideal location together with a specialised cuisine into greater profits via higher prices and sales volume. Martyr’s Square Restaurant understands the underlying needs and seeks to satisfy customers’ needs. The restaurant’s approach is very simple. It plans to thrive by giving individuals a great mixture of health and interesting foods and an atmosphere that attracts “trendy” individuals. 4.2 Competition in the Industry & the Firm’s Competitive Edge Martyr’s Square Restaurant’s most competitive edge will be its closer location to its prospective clientele than any other restaurant. Additionally, Martyr’s Square Restaurant has a its unique Pacific Rim theme that will attract clients looking for local cousins. 4.3 Sales Strategy Martyr’s Square Restaurant’s sales strategy will be to build and open newer locations as a means of increasing revenue. This plan will be executed when one first set up restaurant shows potential and progressive growth. Because the restaurant is projected to build a good local customer base in the first 3 years of operation, the goal of the restaurant will be $4.5 million in annual sales. 4.4 Sales Forecast The sales projections for the company will assume a modest 2200 clients per week, resulting in weekly sales of above $40,000. This equates to approximately $650 per square feet in sales annually. This is bound to position the company as a highly desirable venture for ownership in a unique table service market where $350-$450 per square feet is considered moderately profitable and thus a good investment. The incoming expectations are that the restaurant will consequently yield a net cash flow of between 4%-5.5% of sales, after clearing all outstanding arrears and debts, during the first 5 years of its operation. Total capitalization will sum up to $2.75 million, $250,000 of which will be contributed from the members and the balance will be secured via a proposed bank loan. 5.0 Management One of the owners, Harry Steve, has immense experience that has given him an exclusive viewpoint on matters of autonomous restaurateurs, thus allowing him the prospect to recognise the personalities that build both performing and non-performing restaurants. After effectively developing a strong organization team and staff that is unequalled with his competitors, Steve has the drive to do the same with the proposed restaurant. Thus, the restaurant is in good hands of being managed perpetually. A management agreement will be instituted between the General Manager and the company, purposefully to ensure expectations are well defined by both parties, an incentive structure is established and that the grounds under which the contract will come to termination are all spelt out. 5.1 Human Resource Management Strategy The restaurant intents to build a strong HR team right from the start onwards. It will do this by: aligning its employees to its key business objectives; communicating to employees in concise and clear manner on a regular basis; promoting the use of technology amongst the employees; ensuring that employees remain productive and engaged; driving a culture of change in employees; constantly rewarding and retaining well-performing employees; developing leaders amongst employees; and doing a constant education and training to its employees. 5.1 Internal Controls Martyr’s Square Restaurant will have a manager and 15 waiters and 3 cashiers working on a shift basis to ensure optimal service delivery to our clients (Zimmerer, 2002). We will equip the restaurant with high-end facilities such as the food display case, refrigerators and freezer, cooking equipment, food preparation equipment, kitchenware, restaurant furniture and electronic gadgets. Being a Libyan delicacy restaurant, it anticipates that we will import some of the ingredients to prepare our food and drinks from Libya. We have already identified a Libyan-based supplier for our items while other common items will be purchased from suppliers based in Manchester. In case the restaurant’s operation management receives positive criticisms and implements them, the organization shall accomplish a considerable level of competence based on their openness to criticism. Therefore, the management would have renowned and valued their clientele perspective. Martyr’s Square Restaurant provides the best and most modified service to targeted clientele who parade their restaurant premises. The restaurant will include required business essentials in its facilities, such as wireless access, internet connection, and easier access to conference rooms with technology and audio-visual needs together with catering for longer meetings. Sustainability in business is a strategy, which aims at achieving a balanced economic, environmental and social influence of the business. This focuses on modalities of minimizing unconstructive impact of the three aspects to ensure opulence in the generations to come. To achieve this, the business has to stay faithful to its commitment to the environment and the community in which it operates for as long as it lasts. 6.0 Contingency Plans 6.1 Financial Plan As it is, the restaurant faces the challenge of increasing overall room revenue by 10% on the past financial year. The restaurant needs to accomplish growth within the given budget of $350, 000 apart from the already attained growth limits experienced in the previous past. The management has to ensure that the restaurant business increases corporate contracted rates in order to reflect the return of confidence in the corporate travel market. Most importantly, the restaurant has to ensure that it keeps its expenses down and reduces the level of overtime within the workforce. Remuneration and Incentive This is payment of services rendered. This will come in the form of salaries and wages and associated allowance. NO: of employee Salary Allowance Total General manager 1 £ 9,000 £ 5,000 £ 14,000 HR manager 1 £ 7,800 £ 4,500 £ 12,300 Procurement Head 2 £ 8,000 £ 5,000 £ 13,000 Accountant 2 £ 8,200 £ 5,000 £ 13,200 Waiters 5 £ 17,000 £ 10,000 £ 27,000 Chefs 3 £ 10,000 £ 6,000 £ 16,000 Security 2 £ 5,000 £ 3,000 £ 8,000 £ 103,500  Read More