Key Factors of a Successful Restaurant Strategy - Research Paper Example

PROJECT DELIVERY Student’s name Code & Course Professor’s name University City Date 1. Organisational Context A local restaurant chain aims to increase its customer base so as to increase business profitability. As a result, our Project Management Office was given the mandate to conduct a research on the best way the restaurant could achieve its goal. A team made up of ten members was put together and a project manager appointed to head the team. We were given a budget of ten thousand shillings to conduct our research. The time frame for the project was three month, after which we were to give a report on our findings to the restaurant’s management. Our hypothesis was that the restaurant could increase the number of customers it received daily if it offered a larger variety of food on their menu. Also, changing the aesthetic of the restaurant may attract more customers since it was currently plain. We set out to find out any other solutions to the problem as well as determine if our hypothesis was correct. The project manager has requested my participation in the review of the above stated project’s approach to project delivery. I have conducted a survey of relevant literature on the project and put together my findings in the annotated bibliography below. 2. The annotated bibliography 2.1. Identification of project requirement and deliverables 2.1.1. . Dubay, A, Lehota, J & Konnyves, E 2015, Key Factors of a successful restaurant strategy in Hungary, DOI: 10.17626/Dbem.ICoM.P00.2015.p005. Available from: ProQuest. [6 June 2016] The study focuses on fundamental success factors for a restaurant. In their research, customers were interviewed on what their considerations were when choosing a restaurant to dine in. From the feedback received, the researchers put together factors that are contribute to the success of a restaurant. The most important consideration as expected was customer satisfaction which came from the food and meals. Other factors are hygienic state of the restaurant, the nature of the service, and the complementary features of the service such as ease of accessibility. The study bases its finding on the interviews conducted as well as data from previously conducted studies. It is relevant since though conducted in Hungary, its findings are similar to another study conducted in Kenya (Berndt 2014) and South Mumbai (Bupna 2015). This goes to prove that customers have more or less the same needs regardless on their locations. Therefore the findings of the studies in different countries can be compared to the findings of our research and used to make suitable recommendations. 2.1.2. Shtrev, PI 2013, Exploring the relationship between service quality and customer loyalty in the Happy Restaurant in Varna, Bulgaria. Cardiff Metropolitan University. In this case study, a research is conducted to find out if the quality of service offered influenced customer loyalty. The research team used questionnaires to gather their data. The questionnaires were filled by the customers after which correctly filled questionnaires were collected and used to come up with the findings. It was found that the quality of service did indeed affect the loyalty of the customers. Customers were more likely to keep coming back to the restaurant if they were satisfied with the quality of the service which refers not only to the quality of food, but also the conduct of the staff. What’s more, the customers also recommended it to other people either by word of mouth and gave positive reviews on social media. The research findings are reliable since the customers’ feedback was sought. However, it is limited since not all the questionnaires were correctly filled hence there was less data to work with. The article is relevant since the restaurant seeks to attract and maintain the customers it attracts. In so doing, the customers become regulars and even market the restaurant by recommending it to their family and friends. This is what will ultimately boost their profitability. 2.2. Whole of life considerations 2.2.1. Bapna, K 2015, An analytical study on customer preference and success factor of restaurants in South Mumbai. This study looks into why restaurants are successful in South Mumbai. South Mumbai is home to numerous successful restaurants and the reasons for their success are explored in this study. The study reveals that the most successful and popular restaurants incorporate traditions and influences from a variety of origins fusing together flavours. Their menus include this variety so there is something for everyone. Mumbai is a highly multicultural city which means its inhabitants are from different cultures and have different food preferences. The most successful restaurants therefore take into account these differences when coming up with their menus. The study is accurate since it samples the most successful restaurants in Mumbai and analyses what sets them apart from other less successful restaurants. This case study is helpful in that it emphasises that the customers are at the core of the restaurant business and their needs must be prioritized. Customer needs and preferences will defer from place to place and it is the restaurant’s duty to find out what their customers want so that they may be successful 2.2.2. Christensen, C & Raynor, M 2014, The Innovator’s Solution. In Chapter three of the book, ‘What products will customers want to buy’, the authors focus on helping companies define products that their customers would be willing to continuously consume. The chapter draws its findings from a survey carried out in a restaurant to find out the trend on milk shake sales. The book is reliable since the authors have used information from research conducted by professors from the Harvard Business School as well as MIT. One of the authors, Christensen, is attributed to having come up with the disruptive strategy used by new companies to gain leadership positions in markets. This chapter is relevant since it points out that product is important to the whole of life. The restaurant in question can therefore have a product it is best known for and this will be its brand. 2.3. The project legal environment, probity and ethics. 2.3.1.Monaghan, J 2012, Food Ethics: Traceability in the Restaurant. University of Rhode Island. This paper focuses on improving the ethical standing of restaurants. The author notes that previous works have focused on the role of producers and end costumers when evaluating food ethics but ignore the role of restaurants which is extremely important. He claims that restaurants can be evaluated based on evidence of their ethical history. He looks at Christian Coff’s ‘In the Tate for Ethics: an ethic of Food Consumption’ and notes that it does not explain restaurants’ part in the chain. It is from this gap that he suggests a theory useful to both restaurateurs and chefs. The paper is based on the author’s observations and may be considered a hypothesis since there is no indication of a research being conducted. Instead, the paper is informed by the authors work experience in restaurants. The paper is relevant since it looks at the ethical aspect of the restaurant business which is just as important. As per the paper’s observations, traceability of ethical performance can improve profitability, which the client aims to do. 2.3.2. Ye, C, Cronin, JJ & Peloza, J 2015, ‘The Role of Corporate Social Responsibility in Consumer Evaluation of Nutritional Informational Disclosure by Retail Restaurants’, Journal of Business Ethics, vol. 130, no. 2, pp 313-326. Available from: Springer Link. [6 August 2016]. This article centres on the how corporate social responsibility (CSR) influences the evaluation of restaurants by consumers. The authors use three studies to come up with their findings. Restaurants with a reputation for CSR and that include healthy options in their menus reported enhanced consumer evaluation. The effect was predominantly strong with fast food restaurants. The inclusion of nutritional information on meals was a welcome change especially to consumer’s conscious of their diets or those suffering from lifestyle related illnesses such as goitre. These consumers were attracted to restaurants that offered nutritional information on their meals and said they were more likely to eat out more. The article, like all others in the journal, has been peer reviewed hence the information is viable. The information in the article is relevant since it highlights the role of CSR in the success of a restaurant. In addition, following recent trends where consumers are making more conscious decisions about what they eat, the inclusion of nutritional information on meals will be a boost for restaurants that adopt this strategy. 2.4. Procurement strategies 2.4.1. Berndt, A, Gikonyo, L & Wadawi, J 2014, ‘Critical Success Factors for the Franchised restaurants entering the Kenyan Market: Customer’s Perspective’, International Journal of Management and Sustainability, vol. 3, no. 7, pp 433-477. Available from: ProQuest. [6 August 2016] This article focuses on the factors that would contribute to the success of a new restaurant entering the Kenyan market. It offers guidelines on areas that would attract a customer base to the restaurant. Among the factors discussed are the quality and consistence of the food, courteous, hospitable and efficient staff, clean and hygienic restaurant environment, stable and affordable food prices as well as a convenient location. The authors of the article conducted a survey, using a sample of approximately 390 restaurant customers to come up with their findings. The customers were interviewed and their feedback used to draw the conclusions in the articles. The article offers reliable information due to the methodology used to conduct the research. Moreover, the article has been peer reviewed and approved a requirement before publishing in the International Journal of Management and Sustainability. Though the article is specific to a certain region/country (Kenya) and the survey was carried out in the region, the findings apply to the entire restaurant business regardless of the location. It offers invaluable information and is therefore relevant to the research project at hand. The factors emphasized in the article can be used a focal point to determine whether the restaurant in question is going about the business the right way and make amendments where it is lacking. 2.4.2. Osborne, O 2015, The Core Competencies of Fast Food Managers: A qualitative study of restaurant. North Central University. Available from ProQuest. [6 August 2016] This article focuses the management of restaurants and their competence. The author notes that there is a lack of consistence in the competencies needed for restaurant managers and this in fact contributes to the lack of success in some restaurants. The article then goes ahead and lists the core skills, abilities and knowledge that every restaurant manager should have before being hired. The list serves as a guideline to restaurant owners to use when hiring managers. The qualitative research sampled 12 McDonald’s restaurants managers and studied their routines to determine what their tasks were on a daily, monthly and annual basis. It is from this observation that the core competencies highlighted in the article are drawn. The findings of the research are reliable due to the methodology used. In addition to being on the ground to study the managers, the researchers also interviewed the managers to find out if they had prior management training or experience. This paper is relevant to our study since management is a core aspect for any business. Using the list provided, the team can determine whether the restaurant’s management may be part of the problem and consequently make recommendations for further training. 3. Conclusions The success of restaurant business is dependent of many factors all of which are important and cannot be overlooked. Restaurant owners must adopt an all inclusive strategy to run their business failure to which they are headed for doom. This includes the quality and diversity of food offered (Berndt 2014), the nature of the staff interacting with the customers on a day to day basis (Dubay 2015) as well as the competency of the restaurant management (Osborn 2015). Moreover, it is important to regularly keep tabs of all the above mentioned factors. This is because changes may be made but if follow ups are not frequently carried out, the standards may go down. For example, the customers needs may evolve over time hence it is important to keep in touch with the customers to know what they need. Looking into previously conducted studies and written reports and article is a great help to the team as we carry out a similar study. The information provided will help build on our hypothesis before going into the field to prove our theory or otherwise. Moreover, it will help determine if the trends in the restaurant business have changed over time since the previous studies were conducted. Reference List Bapna, K 2015, An analytical study on customer preference and success factor of restaurants in South Mumbai Berndt, A, Gikonyo, L & Wadawi, J 2014, ‘Critical Success Factors for the Franchised restaurants entering the Kenyan Market: Customer’s Perspective’, International Journal of Management and Sustainability, vol. 3, no. 7, pp 433-477. Available from: ProQuest. [6 August 2016] Christensen, C & Raynor, M 2014, The Innovator’s Solution. H Dubay, A, Lehota, J & Konnyves, E 2015, Key Factors of a successful restaurant strategy in Hungary, DOI: 10.17626/Dbem.ICoM.P00.2015.p005. Available from: ProQuest. [6 June 2016] Monaghan, J 2012, Food Ethics: Traceability in the Restaurant. University of Rhode Island. Osborne, O 2015, The Core Competencies of Fast Food Managers: A qualitative study of restaurant. North Central University. Available from ProQuest. [6 August 2016] Ye, C, Cronin, JJ & Peloza, J 2015, ‘The Role of Corporate Social Responsibility in Consumer Evaluation of Nutritional Informational Disclosure by Retail Restaurants’, Journal of Business Ethics, vol. 130, no. 2, pp 313-326. Available from: Springer Link. [6 August 2016]. Read More