Finance, Funding and Legislative Frameworks for Success - Assignment Example

Finance, Funding and Legislative Frameworks For Success By Executive summary The restaurant marketin the United Kingdom plays a critical role towards the economy of the country. It is estimated that each household in the United Kingdom spend around 7.37 billion pounds on drinks and 18.81 billion pounds on food within the restaurant market in the year 2013, resulting to a total value of 26.18 billion pounds in the market. The findings marks 1.7% rise in the total value when compared with the previous year. The update divides the market into pub restaurants, quick service restaurant and casual dining restaurant. Both individuals and chain operators are active within the market and are raising their dominance in all the sectors. This is related to the ability of the operators to adapt more efficiently to the changing conditions in the market. Overall, the restaurant business in the country has proven to be resistant to economic downturn. This is because going out for drinks and eating out has become the essential part of the consumer’s lifestyle in the United Kingdom. Money customers have continued to proceed with this aspect of the consumer lifestyle, in spite of the financial uncertainty. The customer are however keener to ensure that they are getting loyalty and value for money to particular brands. The market is not immune to the hard times and more businesses were closed in 2011. The hard times affected bigger companies such as Paramount as well as small individual companies. Restaurateurs have to balance between energy costs and rising in the price of food with the fear that any increase in the price of services and goods will alienate the consumers. The average menu price has declined in both casual dining and pubs revealing that the business has to foot the bill themselves other than directing it to the consumers and losing them at the end. Innovation has remained important in the restaurant business; décor, dishes, cuisine and venues are constantly changing as restaurant look for better way of competing and maintaining dynamism in the aggressive market (Trgplc.com, 2015). Introduction Restaurant group plc is a leading chain of public houses and restraints that is located in Britain. It is one of the companies that are listed in the London stock exchange. The company was founded in 1987 and was previously named as city centre restaurants plc with an aim of managing and owning the Garfunkel’s restaurant chain. The group opened the first Benny’s and Frankie in Leicester in the year 1995 (Restaurant Group plc, 2015). The group changed its name to the current one in the year 2004. Two years later the company was able to buy back the deep pan Pizza that had been previously purchased by the management. The group operates around three hundred public houses and restaurants under the Benny’s and Frankie, Home Counties pub restaurant, filling stations, Garfunkel’s brunning and price brands as well as coast to coast. The company’s business targets the rising casual dining part of the market. The management sells better foods coupled with friendly services that are often offered in a comfortable and friendly surrounding, where the team serves nearly forty three millions of people with meals in a year. The company’s brand has ensured the development of long term relationship with the customers visiting more than once for a variety of experiences and occasions. The focus of the company is based on continuous evolution and development of their brand to ensure that the business remains appealing and relevant to the ever-changing and fast-paced market place. Vision and strategy The key objectives of restaurant group is to raise the value of the shareholder together with the strategy directed to achieve this is to develop a business that is capable at expanding cash flows while at the same time generate the long term sustainable goals. In pursuit of the same objective, the business has focused on the rising casual eating out markets. Additionally, the company has targeted market segments which offer entry barriers, where the sales people can be able to deliver better growth in cash flows and profit and where there is potential for high returns on various investment platforms. The approach has led the group to restrategize their activity in three areas such as pub restaurants, concession and leisure (Irala, 2012). The group works towards expanding casual dining markets, with their activities proceeding to provide better value for money in surroundings that are considered comfortable and teams that are dedicated to offering excellent services. The company’s strategy is aimed at delivering extended growth through brand roll out. The group posses a robust connection of developmental sites, coupled with increased focus on continued delivery of their services and goods from the existing restaurants. The company’s concession business operates in a multifaceted and dynamic market, with management teams that are experts in the market especially in the delivery of exciting drinks and food concepts for the clients. The management teams together with the subordinates are proud to deliver excellent services and associated with the passion of the workers that has been generated among the workers. The company believes in working as a team and offering the best services to the consumers (Restaurant Group plc, 2015). Balanced scorecard The company’s internal business perspective The efficiency of the services has been boosted by the frequent training of the employees on customer service and the commitment of the team towards ensuring that the customers are able to acquire the best services and value for their money. The target of the company is to reach many more customers and to maintain their customer centered services (Restaurant Group plc, 2015). The management has focused on team work with numerous activities aimed at motivating the employees. The effectiveness of the company can be witnessed by increasing generation of profits as well as expansion of their services to other parts of the country and the world. By use of the various internal parameters the management has been able to drive the team towards achievement of the goals of the organization. The company has continued to utilize key performance indicators to propel the team towards achievements of the goals and the set objectives. Some of the advantages that the team has achieved in assessing its performance include creation, standardization and customer loyalty as well as setting long term predictions. Performance measures have enabled the company to improve quality and levels of standards of its meals and other related services and thereby enhancing the quality of the products and the service that are offered to the client. The move has enabled the management to be effective thereby increasing trust and confidence among the people. The strength of the internal business environment is evidenced by the increase in customer loyalty for the services provided. The loyalty has also increased the sales in various units owned by the company (London Stock Exchange, 2013). The customer perspective The goal of the company is to ensure customers are able to access value for money and customer centered services. The restaurant group has directed its attention to United Kingdom markets which have high potential growths. Dining out has been observed as the current trend among the customers with most of them visiting restaurants for breakfast, supper and lunch. This trend has resulted to increased customer service aimed at promoting long term relationship between the company and its customers. The company has in the recent past utilized the internet to advertize their services as well as directing the people to where such services are offered. There has been an increased concern on health issues from both the regulatory authorities and the customers. The group has been concerned about sugar, salt and caloric content of food as well as alcohol and smoking at the restaurant. The company has been at the forefront in ensuring the customers are able to consume healthy foods (Another year growth, 2012). The company has been monitoring the healthy policies form the regulatory bodies with intentions of providing consumers with health choices. The company has increased the number of the employees in order to increase customer service. The company has been at the forefront in ensuring that the policies by the regulatory authorities are followed. The company has also been involved in numerous corporate social responsibilities which have been observed to improve performance as a result of raised awareness concerned with the products. It includes school visit programme, charity breakfast and local charity events as well as impacting positively to the environment. The approach has been linked to the increased number of customers. The company has realized the essence of customer satisfaction and focus (Restaurant Group plc, 2015). Financial perspective The goal of the financial report and analysis is to ensure the group is moving in the right direction and with no debts. Financial perspective of the company will be essential in strategic planning and organization of the business over time. The financial report will be considered as an annual business report. The company recorded improved performance in various aspects such as the proposed dividend increased to 14.0p per share, EPS increased to 72.7 million pounds, EBITDA increased to 107.8 million pounds, operating margin increased to 12.9% with revenue increasing to 580 million pounds. The company has continued to work hard and boost their finances by opening new restaurants around the world. Regarding the liability and assets of the company, there are fewer changes that are experienced since the plans set in the year. Cash flow has been extrapolated with a yearly development of over two percent. Profit recorded before tax is over thirteen percent with the company having a goal of boosting performance and increase the profit generated. Compared to 2012, the percentage of shareholder income was estimated around 33.76%. The increase in the return to shareholder funds was fundamentally influenced by the increment in the benefits recorded. The organization however, recorded a decline for its net resources which was estimated at -4.01%. Basing on key performance indicator, the company opened up 35 new restaurants in the year 2013. The company provided jobs for a 1000 job seekers while at the same time serving forty three million jobs. The company expanded its like for like sales which estimated at 3.5%. Closer look at such statistics indicates that the company is on a strong path to fight for controlled shares while at the same time improve its financial standing. The profit before tax was estimated at 72.7 million pounds (The Restaurant Group, 2015). Innovation and learning perspective The company offers the employees an opportunity to develop through training both behind the scenes and in management. The company has believed that their development and training strategies are among the best in the market. The company has achieved training awards that targeted Benny’s and Frankie management. Additionally, the company has employed team based trainers who are tasked with the delivering a number of coaching sessions and courses with an intention of building the team. According to the key performance indicator, the company has continued to recruit innovative and better employees with an intention of boosting development (Parmenter, 2012). All the employees in the company also benefits from e-learning systems to ensure that they are further their skills while at the same time working within the organization. The company also offers experience to a graduate who wants to venture in restaurant businesses. The company’s human relations department has come up with various recruitment strategies aimed at ensuring that the best work force is set in place. The company boosts of a fair and an open recruitment process as well as clear employment terms. The staffs are offered a copy of policy document and contract of employment to ensure that they are aware of the rules. The company has worked to ensure the employees’ rights are respected at the place of work. . Innovation has remained important in the restaurant business; décor, dishes, cuisine and venues are constantly changing as restaurant look for better way of competing and maintaining dynamism in the aggressive market. New market channels have been created and expanded. Strategy map The company’s strategic map aims at growing the values of the stakeholders which is done through building a business that is capable of producing sustainable long term and growing cash flows. Despite the economic times, the company has maintained the prices for the services offered or reduced it in order to maintain and attract more customers. The move has paid off with an increased percentage of employee retention (Olsen & Zhao, 2008). The approach is also associated with increase in profit generated in the company. On the internal business environment, the retention of the employees and well as continued motivation and training will enable them to serve the customers with commitment and experience. The management has fostered team work among the employees and this has ensures that the employees are able to work together for the better of the consumer. On the customer perspective, the company’s many employees have continued to be commitment to ensure that the customers receive value for money and customer centered services. The organization’s focus on the corporate social responsibilities such as environmental concerns will increase the number of customers since many customers will want to be associated with it. The company has put up strategies that will facilitate customer retention by ensuring they stay in touch with them through the various social media forum and charity work. On organization capacity, knowledge and skills improvement among the employees has been the key to prosperity. The company has also purchased sophisticated technology to be used in preparation of foods and drinks with an aim of decreasing time spend and also improve the quality (McManus & Miles, 2010). Recommendation The company should be able to come up with strategic plans and a scalable business model focused on expanding casual eating market. The company should target areas that will provide good returns to the company as well as those regions that offer distinct barriers to entry. The company should continue to monitor customer feedbacks, training and mystery diner visits to enable the employees provide brand standard and service for money services. The company should also analyze staff turnover, benchmark for remuneration package and review systems to retain the existing talents (Annualreports.co.uk, 2015). This will help prevent loss of experienced personnel. Regular external and internal auditing, auditing of suppliers and the supply chain as well as health and safety precautions will help retain the brand image and propel the company toward prosperity. The company should continue to liaise with other relevant authorities such as food standard agency to increase regulation of their products. Evaluation The company has registered extensive performance when compared to the previous year. The return to shareholder’s funds improved from 29.91% to 33. 76%. However the return of net assets declined from 36.13% to 34.68%, while the profit margin was estimated to have increased by 0.45%. The result indicated performance on nearly all the sectors. With the increase in the number of restaurants opened by the company, the revenue increased to around 580 million pounds with the operating margin rising to 12.9%. Additionally, EPS also rose to around 28.0 p per share. The company operation was strongly cash generative. The company’s employees a decade ago were mainly female (Olsen & Zhao, 2008). However, the current board of management has focused on ensuring gender diversity. The company registered an improvement in like for like sales of around 3.5% that was an improvement compared to the past. The company has continued to focus on corporate social responsibilities with an aim of impacting positively to the environment. Conclusion The restaurant group plc deals with serving beverages, drinks, and meals. The company has continued to post better performance each financial year. This has been witnessed as a result of increasing the number of new restaurants as well as amount of revenue collected by the group each financial year. Utilization of the key performance indicator will enable the company to assess organizational performance in areas such as creation of customer loyalty as well as promoting standardization. In addition, it will offer assistance in developing long term and accurate prediction (Olsen & Zhao, 2008). The approach will enable the company to be prepared in order to deal with the risks that they may encounter in the process. The key performance indicator will enable the restaurant to raise the quality and levels of the standards and enhance the quality of the services that will be delivered. The involvement of the company in the corporate social responsibility such as environmental improvement will boost their image among the customers thereby increasing the number of customers seeking their services. References Annualreports.co.uk, .2015. Restaurant Group Plc - Annualreports.Co.Uk [online] available from [28 February 2015] Another year growth .2012. – , Restaurant Group plc , Available: www.trgplc.com/sites/default/files/file/TRG_AR12.pdf Another year growth .2012. Key Performance Indicators Manual: A Practical Guide for the Best Practice Development, Implementation and Use of KPIs.Crows Nest: Allen & Unwin. Irala, D.2012. Performance Measurement Using Balanced Score Card. SSRN Journal. doi:10.2139/ssrn.980691 London Stock Exchange .2013. Restaurant Group PLC, Available: McManus, P., & Miles, R. 2010. United Kingdom: focusing on the market. Museum International, 45(2), 26-32. doi:10.1111/j.1468-0033.1993.tb01101.x Olsen, M. D., & Zhao, J. 2008. The restaurant revolution-growth, change and strategy in the international foodservice industry. Journal of Restaurant & Foodservice Marketing, 4(3), 1-34. Parmenter, D. 2012. Key Performance Indicators for Government and Non Profit Agencies: Implementing Winning KPIs. Hoboken, New Jersey: John Wiley & Sons. Restaurant Group plc .2015. Markets Data, Available: http://markets.ft.com/research/Markets/Tearsheets/Business-profile?s=rtn:lse (Accessed 27th February 2015) The Restaurant Group .2015. available from [25 February 2015]  Trgplc.com, 2015. Home | The Restaurant Group [online] available from [28 February 2015] Read More