Possible Ways of Art Management - Coursework Example

Management of the Arts Entrepreneurship is one of the best ways that a people can develop their lives without having to depend on employment. A restaurant business is one good example. It gives good net profits due to low costs of operation compared to the high gross profit obtained. However, managing a restaurant is not easy. Given good management, it has higher chances of sustenance and growth. Different restaurants draw customers from people of all socio-economic backgrounds. Area Restaurant The type of customers determines the prices of foods, drinks and beverages sold in a restaurant. This influences its success and how fast it grows. Area, an Italian restaurant situated in Montpelier Street, Knightsbridge, London, is a good reference example. Area is owned by a man from south Italy called Franchisco. The business was started fourteen years ago as a small regular restaurant. It drew customers from the lower and middle socio-economic backgrounds. With time, people from good socio-economic backgrounds began to visit the restaurant. This included wealthy people and famous football players for example Chelsea’s Frank Lampard and Arsenal’s Sagna among other footballers. Business atmosphere The new wealthy good pool of customers made Franchisco to think of a way to upgrade his low financial status. To achieve this, he increased the prices of food, beverages and drinks served at the restaurant by 50%-100%. This created the impression of quality. As a result of this, the restaurant attracted many richer customers mainly Arabic. According to Pinson and Jinnett (1996), entrepreneurs must track the needs and preferences of their customers so as to satisfy and retain them. It is from this perspective that Franchisco created an Arabian atmosphere in and outside the restaurant in order to maintain the large pool of Arabian customers. He made Arabian designs of various features in the restaurant and played Arabic music. Changing the atmosphere to Arabic made the business attract more Arabian customers. Sheesha is offered outside the restaurant until 11pm. This is an Arab custom in which flavored tobacco is smoked using shisha pipes. This created a good social atmosphere for lovers of sheesha. Customers express their love and appreciation for Area by pinning or placing different currency notes on its walls or on a board. Franchisco choose ‘Area’ as the name his business because it is a neutral term. This has allowed the business to attract people from all cultural backgrounds. Sheesha is strictly offered outside the restaurant. This is because smoking in all public indoors was banned in the UK from 1st July, 2007. Under this ban, restaurants are not allowed to offer shisha pies to their customers inside the restaurant. However, some specific areas with good ventilation can be designated for smoking (Melville 2007). Franchisco feels that it is not worth risking having sheesha inside the restaurant. It puts the business and its customers at risks of paying heavy fines. Not all its customers are smokers. Allowing sheesha inside will be an offence to the non-smokers. According to Melville (2007), individuals who contravene the public indoor smoking ban pay a fine of £50 on the spot and up to £1000 if the case is taken to court. Managers or owners of the business or the premises in which smoking as taken place are required to pay a fine of £200 on the spot and up to £2500 when they delay. Alcohol is not allowed in Area restaurant. This is for the purpose of security and social norms. Some of the customers meet for business purposes hence introducing alcohol may cause some of them to quit the place. It also takes into consideration the cultural diversity of its customers, for example the Arabs who are mostly non-alcoholic. The idea of sticking money to the wall was a strategy to attract customers from different cultural backgrounds. It would cause the new customers know that the place is welcomes and accommodates everyone. It fosters a good and peaceful atmosphere. This was supported by many customers who felt that they had really liked the place. They wanted to leave something behind that would make others from their cultures know that the restaurant has welcomed and served their people. Area restaurant is open all the days of the week operating from 11:00 am to 11:00 pm. It has 30 tables and 180 chairs giving a sitting arrangement of six. In the outside area where sheesha is offered, there is an arrangement of low seating and cushions. This setting is ideal for shisha pipes and cocktail. The type of food served in Area is Italian food. It has grown to be one of the famous restaurants that serve traditional Italian food. The food is lovely with a stylish decor. Tempting meat dishes, home-made pasta, fresh fish, delicious sea food and divine dolci are just but a mention of them. This is accompanied by the best Italian wines like red Negroamaro Maseria Al Temura. Delicious deserts are also served in the restaurant for example dolci Tiramisu, home-made amaretto and chocolate Panna Cotta. Frank Lampard is the restaurant’s favorite customer. His presence attracts other footballers to the place. They meet in the place on few occasions. Whenever he visits, frank is given a few special treatments for example discount on his bill. This is given especially when he treats his fellows. They could also receive a few soft drinks for free. Franchisco greatly honors having of Frank Lampard as one of his customers. His visit as a regular customer has caused other wealthy customers to be attracted to the place. It sends a message of customer satisfaction and quality products to other people with a similar socio-economic background as his. Franchisco has also had difficulties with customers. These include misunderstandings with few customers regarding sheesha. Some of them want to have it inside. Franchisco greatly sticks to the law and strictly offers it outside the restaurant. The management has also kicked out unruly customers on a few occasions for the sake of the other customers. Most of the customers are of Arabic culture where amoral behaviors receive little toleration hence they have to be protected. Market Raising the prices of food had a variety of impacts. First, it caused most of the customers from the low and middle socio-economic backgrounds to stop visiting the place. Most of them could felt that they could not sustain such a lifestyle. This caused the restaurant to record low sales and hence lower profits for a few months. As time went, more customers from good economic backgrounds got to know of the place. The existing customers introduced their friends and business partners to the place. This caused sales to pick up fast and the restaurant registered a tremendous increase in its profits. Area restaurant has attracted famous footballers due to the quality of food, beverages and drinks served and its high prices. According to Gladish (1998), it is good to have a clear customer profile. The high prices enabled Franchisco to have a clear customer profile. It led to an increase in wealthy customers and fading away of the initial market. Wealthy people would not mind paying the cost of having something of good quality due to the perceived benefits. Narver and Slater (1990), explain that after obtaining a clear customer profile, entrepreneurs and their employees must learn to think like their customers. This will enable them to anticipate and adequately meet their needs. With time, Franchisco ensured that the quality of food offered met the expectations of the customers. Employees Currently, the restaurant has 50 employees. Most of them are Italian because they are more conversant with the cooking and serving of Italian food. This has been a good base for the success of the business. There are no major restrictions in getting a job in Area. Individuals who apply for a job in the restaurant should have a good social background with no criminal record. Applicants should also have some training in hotel industry and knowledge on preparation of Italian food. It is for this reason that most of the staff members are Italians. If the restaurant workforce was diverse, it would have affected the quality of food served. Customers want to experience the real flavor of traditional Italian food presented in a stylish decor. Franchisco does not prefer to change his staff quickly for example on monthly basis. Long serving staff have gained experience as well as the confidence and trust of the customers. New staff all the time may threaten the quality of food served. Risks and threats The main risk facing Area is safety and health. Staff members have to maintain high health standards when preparing, handling and serving all foods, beverages and drinks. The management has to be alert all the time for news regarding the outbreak of any disease. If such a case is not dealt with care, customers may fall sick and so the restaurant may loose the confidence of its customers. So far, no cases of food contamination have been reported in the restaurant. Staff members undergo regular medical check up to avoid staff to customer infection. Fire outbreak is another major risk. This could result from cooking and electric faults. Burglary is the third risk. The restaurant has good security through natural and techno-surveillance. No attempted case of burglary has reported due to the good security. No customers have been robbed within the restaurant. The major threat to the restaurant is competition. The restaurant is surrounded by other small and big Italian restaurants. This presents a big challenge of attracting and maintaining customers. Franchisco has a few difficulties with staff. These include arguments with employees regarding customer service and food preparation and serving. This mainly arises whenever customers raise any complains regarding services offered. Franchisco insists on good quality products for his customers so as not to risk loosing them. The restaurant has on few occasions fired employees. For example, cahiers who steal money from the business and staff members having poor relations with the customers or offering incompetent services. Success It is costly to open a restaurant in central London. With a bare shell building, the cost of starting a good restaurant in central London is about £150,000. Francisco started Area as a small restaurant business because that is the restaurant cost he could afford at that time. Area records an average profit margin of 70-80% for its operations each year. This is an indication of sustainability of the business. Area restaurant is of great importance to Franchisco. It is his main source of income. It also gives him a chance to know many people from various cultural backgrounds. Maintaining good contacts with customers is a security for his business in future. After a long time of operation, Franchisco has become an expert in attracting and maintaining customers. A bakery business is an option that Franchisco has in mind in case the Area restaurant business fails. He has many potential targets fit this business in mind in case the restaurant business fails. Area is successful compared to business of a similar kind in Knightsbridge, London. Due to its good management, quality products and welcoming atmosphere, it has been able to withstand tight competition. Area has grown from a small restaurant business into a classic restaurant which attracts people from good socio-economic backgrounds. Many other restaurants record low profit margins annually. Other restaurant owners have been forced to close their businesses or sell it to other individuals due to high margins of loss. Area has been able to pay for the quality food and service it offers while maintaining a high profit margin. Starting a good restaurant poses a great financial challenge. Managing it is yet another greater challenge. For a restaurant to grow from a small restaurant to a classic one like Area restaurant, it is a sign of good management, quality products and customer satisfaction. It is also a sign of trust and confidence from the customers. Franchisco has proved to be good in restaurant business. Maybe given enough motivation and incentives, Francisco could expand his single Area restaurant to a chain of Area Group of Restaurants. References Gladish, A. (1998). “Plan to Market for Long-Term Prosperity.” Journal of Marketing News (14) pp 12-14. Melville, C. (2007). Smoking ban: why did we have to wait for so long? Online. http://www.eurosong.net/smokingban/. Retrieved on 21st February, 2011. Narver, J. and Slater, S. (1990), “The Effect of a Market Orientation on Business Profitability”, Journal of Marketing, (54), pp. 20–35. Pinson, L and Jinnett, J. (1996). Target Marketing: Researching, Reaching and Retaining Your Target Market, Dearborn Trade, 1997. Target Marketing for the Small Business. Upstart Publication Co. Chicago. Read More