Increased Market Competition and Changing Preferences of Customers in Restaurant Business - Case Study Example

Internship Report Executive Summary Parameters of the Report Restaurant business has developed in an enhanced manner in Chinatown of San Francisco owing to increased demand for spicy as well as fact food and beverage. The development of restaurants with increased number of restaurants has raised market competition. In this regard, the restaurants are required to be concerned about competitors, services offered and menu items, so that an adequate understanding about the research subject i.e. 3.3 snacks bar café is obtained. Description of the Problem The problems is related to increased market competition and changing preferences of customers affecting restaurants in performing their operations successfully. Methodology The research design was based on mixed approach i.e. qualitative and quantitative research methods. Primary and secondary data were collected through semi-structured interview and questionnaires survey. Additionally, secondary date was collected from the various books, journals and other online sources. Correspondingly, the collected data were analyzed through charts and graphs. Summary of Findings and Conclusions The result obtained from the study revealed that restaurants are required to develop a menu with diverse food and drink items in order to perform their operation successfully. Recommendations 3.3 snacks bar café in order to excel in business operations is required to diversify its menu items and improve service quality. Section I – Introduction/Background In the US, the demand for the sustainable foods is growing especially the coffee and fast food section of restaurant chain is growing sustainable at the rate more than 10% and 2% respectively in an annual basis (Holmes, 2014). The fast food restaurant businesses have augmented in an enhanced manner in the US market segments. In addition to the growth of the fast food businesses, the preferences as well as demand of customers are also changing in a continuous trend. 3.3 Snack Bar Cafe is located in Chinatown of San Francisco, United States (US). It is serving wide variety of drinks, snacks and foods. The café is renowned for offering different variety of spicy snacks and soft drinks. The menu of the café comprises spicy fish balls, curry fish cake, spicy leek and spicy tofu. The most expensive snack item in the menu of the café is hot dog. Additionally, the café is also offered with different soft drinks that include lemon drinks and milkshake and other fruit juices. Contextually, the café is also identified to provide different drinks and snack items at an economic rate. In this respect, the café is recognized to conduct its restaurant business succinctly in the community (1Yelp, 2014). In Chinatown of San Francisco, fast food restaurants have increased in numbers for the augmented demand of fast food. In this regard, the business of fast food has concentrated in the market segments with different café as well as restaurants that include Wing Scene Food, Sweet Mart, Quickly-Kobe Bento and Cool Tea Bar among others. The restaurants are identified to provide different variety of Cantonese and non-Cantonese snacks. The menu of Wing Scene Food comprises snacks, noodles as well as beverage items (2Yelp, 2014). Sweet Mart provides food items that include gummy candies, preserved fruits, tea eggs and fish balls (The Daily Meal, 2014). Quickly-Kobe Bento’s menu consist of Japanese as well as Taiwanese food items which include lobster balls, fried fish balls and popcorn chicken (The Daily Meal, 2014). The menu of Cool Tea Bar comprises different soft drink items (3Yelp, 2014). 3.3 Snack Bar Café is operating in the market of California with different competitors providing similar menu items. The café is under constant competition with other restaurants in the area. In this context, the report was prepared with the aim of identifying the different aspects based on which 3.3 Snack Bar Café is able to conduct operations with better effectiveness as compared to competitors. Section II – Statement of the Problem/Research Project In the present scenario, the demand for the fast foods is growing worldwide and especially the US market segments. The changing preferences of customers and augmented number of restaurants has intensified market competition in Chinatown of California. The issues are pertaining due to constant innovation of restaurants and massive changes in consumer behavior. Subsequently, the issue of intense completion prevails in worldwide market segments. The restaurants are identified to develop their menu on the basis of different food items in order to cope with competition and meet the requirements of customers successfully. In this context, restaurants operating in the market segments of San Francisco are required to ascertain the market trends through competitor analysis based on menus, pricing and policies, so that they are able to conduct their operations competitively. Thus, the issues regarding heaping competition in the Chinatown area of San Francisco is an important influential factors for the restaurants, as it might affect their business performances. The findings of the study might assist restaurants in building their competiveness through effective food menus for better sustainable performances and competitiveness. Section III – Methodology Overview Research methodology is the process by which required data were collected by researchers or it can be understood as, a way to resolve the research problem in the systematically manner. Essentially, it is the procedures based on which analysis and research is conducted for explaining, describing and predicting the exact phenomena related to the research study (Rajasekar & et. al., 2013). The aim of this particular research study was to identify the role of different problem that the restaurants in the Chinatown area of San Francisco were facing intense competing. The research design of this particular study has been based on mixed approach i.e. qualitative and quantitative research methods. Primary and secondary data were collected in order to analyses the data collected for acquiring appropriate results or outcomes. The primary data was collected from semi-structured interview based on questionnaires survey. On the other hand, secondary date was collected from the various books, journals and other online sources. Furthermore, the data collected was analyzed through charts and graphs. Research Design In this research study, a specific research design or process has been followed in order to complete the study within a determined timeframe. The research study comprised a series of activities, which were necessary for conducting the entire study in an effective and proper manner. During the first phase, it is important to determine the research problem, which was the issue faced by the restaurants located in Chinatown for competition and ever changing demands of the customers. The second phase was framed as research design, which comprised plans on the basis of which data collection and analysis were conducted in a time effective manner. The third phase emphasized towards the data collection procedure. In this research study, both primary and secondary data were collected for effective analysis of the research subject. In the fourth phase, the collected data were analyzed with the assistance of mixed approach. In the last and fifth phase, an in-depth analysis of the collected data was conducted by discussing the research problem (Kumar, 2010). Data Collection Method Data collection is determined to be an essential element in a research study with the aim of accomplishing the desired research study objectives in a proficient manner. In this particular research, data required have been collected from both primary and secondary methods. The primary data were collected from the semi-structured interviews and through self-completion questionnaire survey comprising 10 close-ended questions. Selection of sample is very important to make any survey or report or any project. The sample size for collecting data comprised 25 individuals visiting restaurants café. The sample size for the questionnaire survey was chosen in a random manner. In this research, 25 people of San Francisco from different age group were chosen which include students, business personal and localized peoples. In this respect, interviews were conducted amid 25 people from different sectors in order to collect adequate data, for better reliability of the findings of the study. On the other hand, the secondary data was collected from the online sources comprising journals, books and internet sources regarding the menus that similar cafes were providing. Data Analysis In this particular research, the study of the data collected has been analyzed with mixed approach i.e. qualitative and quantitative approach. On the basis of mixed research approach, the data collected from the interviews and questionnaire survey (Johnson, & et. al., 2007). The approach has assisted in acquiring adequate information in relation to the research subject. Analysis and interpretation of the collected data were conducted with the assistance of graphs, charts and pie-diagrams among others. Ethical Considerations The research study is required to be executed in an ethical way in order to ascertain the appropriateness of the findings. In this context, free consent was obtained from 25 people who were found to visit the restaurants in the Chinatown area of San Francisco for fast foods and drinks are interviewed prior to the survey. Moreover, the feedbacks and responses of the respondents are documented with due considerations for future references. Additionally, the responses of the 25 people are kept confidential for safety measures. The data collected from secondary sources were ensured to be obtained from valid sources and current data (Halai, 2006). Limitations of the Research In this research study, a mixed approach will be followed with the intention of accomplishing the determined objectives, which increased complexity issues owing to the alignment of the two methods. Additionally, mixed approach is perceived to be time consuming and expensive. In this respect, application of either qualitative or quantitative approach would have been time efficient and concise. However, application of any of the two methods would have reduced the criticality of the findings. This research study is based on small sample size. While on the other hand, the research subject is vast due to which it might reduce the appropriateness of the findings. In this respect, both primary and secondary data were collected in order to cope up with the limitations. Section IV – Findings Findings In this research study, the data collected from the questionnaire survey have been analyzed with the assistance of charts and diagrams. In this study, we have formulated different charts, diagrams and tables with the objective of determining the findings of the data collected in an appropriate manner. The charts and diagrams are analyzed below: Figure1: Do you go to visit restaurants regularly? The first question revealed that 25 consumers have different preferences regarding their willingness to visit restaurants. In this respect, it has been observed that 2 out of 25 respondents did not prefer to visit restaurants whereas 23 respondents visit regularly. Figure2: How often do you eat in cafés? It has been observed from the analysis of the second question (figure 2) that people have different perceptions regarding visiting cafés in a month. The chart revealed that around 11 out of the 25 respondents used to visit cafés located in Chinatown of San Francisco. Around 2 of the respondents are seemed to visit cafés once in a week. Furthermore, 8 and 4 respondents are seemed to visit cafés twice and once in the month respectively. Figure3: What is the basic purpose for visiting restaurants regularly? It has been observed from third question (figure 3) that the basic motive behind the respondents visiting restaurants. The data in the chart signified that 40% of the respondents visit restaurants for good food. Around 20% of the respondents are identified to visit restaurants for celebrating special event. Around 12% of the respondents visit restaurants for not willing to cook on the daily basis. Additionally, 28% of the respondents visited restaurants for their conveniences. Figure4: Do you know about 3.3 snack bar café located in Chinatown of San Francisco? The response obtained from the fourth question revealed that around 90% of the respondents are aware of 3.3 snack bar café, which is located in the Chinatown area of San Francisco and rest of the respondents i.e. 10% are unaware of the cafe. Figure5: What you like the most about 3.3 snack bar café? The fifth question revealed that around 10 respondents visit 3.3 snack bar café for product factor. Moreover, 5 respondents visit the restaurant for environment and price factors each respectively. On the other hand, 2 respondents and 3 respondents visit the café on the basis of location and service respectively. Figure 6: Which café venue you like the most in Chinatown of San Francisco? It has been observed from the analysis of the sixth question (figure 6) that around 28% of the respondents visit 3.3 snack bar café. It has been identified that 24%, 20%, 16% and 12% of the respondents visit Cool Tea Bar, Quickly-Kobe Bento, Sweet Mart and Wing Scene Food respectively. Figure7: Timing you prefer to visit Cafés? The seventh question (figure 7) revealed that 10 respondents visit cafés or restaurants located in the San Francisco mostly for breakfast. On the other hand, 8 respondents and 7 respondents visit cafes for the purpose of breakfast and dinner respectively. Figure8: How do you compare the value 3.3 snack bar café with the other restaurants? It has been observed from the eight question that most of the respondents i.e. 12 respondents visit 3.3 snack bar café for its food and services. 8 respondents visit other restaurants for better variety of fast food items. On the other hand, 5 respondents are identified to value the restaurants in Chinatown of San Francisco on an equal basis. Figure9: How will you rate your experience regarding the 3.3 snack bar café with regards to other? The findings of the ninth question (figure 9) revealed that 5 respondents have best experience for food and services in 3.3 snack bar café with five out of five rate. Correspondingly, 10 respondents are observed to rate 4 out of 5 on the basis food and services. On the other hand, 10 respondents rated below 4 for experience gained from food and services. Figure10: Do you recommend 3.3 snack bar café to others? The tenth question revealed that 10 respondents definitely desire to visit the café. Additionally, 5 respondents are identified to have a desire to visit the café. On the other hand, 10 respondents did not have any eager to visit the café. Analysis and Interpretation of Findings The findings from the survey have revealed significant information with respect to restaurants operating in Chinatown of San Francisco. It has been observed that restaurant businesses have diversified as well as developed in San Francisco owing to increased demand for fast food and beverage items amid people. In this regard, business opportunities for restaurants have enhanced in the area. The findings of the survey also revealed that Chinatown area of San Francisco have developed with increased number of restaurants of cafes for the people are identified to have augmented likeness for food. In a similar perspective, the report published by Asian American Federation (2008) implied that the Chinatown area of San Francisco has developed succinctly owing to changing preferences as well as behavior of customers (Asian American Federation, 2008). It has been identified that 3.3 café bar is a newly established café located in Chinatown. The findings also depicted that most of the people have the different perception regarding the menu that the different café bar shop provided in the due course. The findings of the survey also depicted that the people of San Francisco visiting restaurants have different perceptions about different restaurants on the basis of menu. In this regard, 3.3 café bar shop possesses certain advantages and disadvantages. It has been recognized that people of San Francisco visit restaurants for having variety foods and drinks. Moreover, the survey revealed that people visit 3.3 café bar shop for the menu comprising different variety of foods and soft drinks items. People visit the café in an enhanced manner as compared to other restaurants owing to economical price rate. The people used to visit the café and other restaurants mostly during lunch and on an average during breakfast and dinner time, which was the main reason behind the success of other similar cafés in the area, as most of the restaurants are opened for longer time than that of 3.3 snacks bar café. From the survey, relevant information regarding the behavior of consumers are obtained, which signified that the people are more inclined to visit restaurants offering diverse variety of food and drink items. Conclusion The main objective of the research study is to determine the factors that are accountable for the growth and development of restaurants in the Chinatown area of San Francisco. In the context, the study revealed that people visit restaurants in order to have different variety of food and drinks. Moreover, the growing demand for spicy and fast food led to heap the competition more in location, as augmented number of restaurants have developed providing a wide range of food items and services. In order to ascertain the desired objective, we have adopted a mixed research approach. The research study comprises both primary and secondary data with the intention of determining appropriate findings. The primary data was collected from the semi-structured interview and questionnaire survey. The survey and the interview were executed on the basis of 10 questions. The major drawback of this particular study is that the sample size for obtaining data or information was too small and accordingly, the findings were not critical. Moreover, the 10 questions developed for the survey was not deep rooted and effective in identifying various important aspects of restaurant business in San Francisco. The use of interview and questionnaire survey methods has been effective in obtaining appropriate findings or outcomes. Recommendation According to the report published by Holmes (2014), preferences of people play an important role in the success of a restaurant business. Additionally, menu of a restaurant is a significant aspect affecting the perception of people visiting restaurants. In this regard, the café is required to utilize the opportunity of including diversified food and drink items in the menu in order to meet the requirements of the customers. Moreover, the café should also ensure that the people visiting are offered with effective services that include food delivery, food packaging and efficient order taking as well as payment services. Additionally, the café is also required to extend its operating hours, so that it is able to meet the expectations of the customers for dinner (Holmes, 2014). References Asian American Federation. (2008). Revitalizing Chinatown businesses: challenges and opportunities. Retrieved from http://www.aafederation.org/doc/RevitalizingChinatownBusinesses.pdf Halai, A. (2006). Ethics in qualitative research: Issues and challenges. Retrieved from http://www.edqual.org/publications/workingpaper/edqualwp4.pdf Holmes, H. (2014). Coffee shop. Retrieved from http://www.sbdcnet.org/small-business-research-reports/coffee-shop Johnson, B. R., Onwuegbuzie, A. J., & Turner L. A. (2007). Toward a definition of mixed methods research. Journal of Mixed Methods Research, 1(2)112-133. Kumar, R., 2010. Research methodology: A step-by-step guide for beginners. United States of America: Saga. Rajasekar S., Philominathan, P., & Chinnathambi, V. (2013). Research methodology. Retrieved from http://arxiv.org/pdf/physics/0601009.pdf The Daily Meal. (2014). Sichuan and snacks: The Times Are A-Changin’ in San Francisco Chinatown. Retrieved from http://www.thedailymeal.com/sichuan-and-snacks-times-are-changin-san-francisco-chinatown 1Yelp. (2014). 3.3 Snack bar café. Retrieved from http://www.yelp.com/biz/3-3-snack-bar-cafe-san-francisco 2Yelp. (2014). Wing scene food. Retrieved from http://www.yelp.com/biz/wing-scene-food-san-francisco 3Yelp. (2014). Cool tea bar. Retrieved from http://www.yelp.com/biz/cool-tea-bar-san-francisco Appendix Questionnaire Q1. Do you visit restaurants regularly? Yes No Q2. How often you eat in cafés? Once a week Twice Regularly Once in the month Q3. What is the basic purpose for visiting restaurants regularly? To eat good food For special event Do not want to cook Convenience Q4. Do you know about 3.3 snack bar café located in Chinatown of San Francisco? Yes No Q5. If yes, what you like the most about 3.3 snack bar café? Product Price Services Environment Location Q6. Which café venue you like the most in Chinatown of San Francisco? 3.3 snack bar café Wing Scene Food Sweet Mart Quickly-Kobe Bento Cool Tea Bar Q7.Timing you prefer to visit Cafés? Breakfast (9-11 Am) Lunch (12-4 Pm) Dinner (7-12 Pm) Q8. How do you compare the value 3.3 snack bar café with the other restaurants? 3.3 snack bar café is better Other restaurants are better Q9. How will you rate your experience regarding the 3.3 snack bar café with regards to other? 5 out of 5 4 out of 5 Below 4 Q10. Do you recommend 3.3 snack bar café to others? Definitely May be No Read More