BTEC HND Assignment Help: Small Business Enterprise

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1.Investigateperformanceofaselectedsmallbusinessenterprise.1.1
J&SfurnitureisafurnituremanufacturingcompanyownedbytwobrothersJohnandSmith.J&Sstartedoperationsin2006
andthereisasatisfactorygrowthinthisbusinesssincethen.Howevertherearefallinturnoverinsomemonthsaswell.J&S
Message*
importwoodfromAsiancountriesandmanufacturefurniture.Companyhadbeenabletogetmassivediscountsfromitssuppliers
becauseofbulkbuyingsothishadhelpedthemtokeeptheircostundercontrol.Howevergovernmentpoliciessuchastaxeson
imports,interestratesandexchangerateshavehadnegativeimpactonthisbusiness.Taxesonimports
SinceUKgovernmentistaxingheavilyonimportsfromnonEUcountriesthishadaffectedJ&SalotthereforenowJ&Sis
lookingwhethertheycanfindoutacheapersupplierfromUKorEU.Interestrates
RecentincreaseininterestratesaffectedJ&S'sprofitmargins.SoJ&Sisthinkingofincreasingthepricebutiftheyincreasethe
pricethedemandmayfall.Exchangerate
J&Sispurchasingrawmaterialsoverseasandrecentdepreciationinpoundhadanegativeimpactonitscostofproduction.
J&ScurrentlyhaveeightbranchesinLondonandtheirshorttermgoalistobecomealeadingfurnituremanufacturerinUKbythe
endof2009andbecomealeadingfurnituremanufacturerinEUbytheyear2012.
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1.2
J&Shadbeenperformingwellfromthestarteventhoughthereisafallinprofitsinsomemonths.Itiscompany'sviewthatthis
isduetowelltrainedstaffandgoodcustomerservicegivenandalsocompanyisenjoyingpurchasingeconomiesofscaledueto
bulkbuying.CompetitorbenchmarkinghelpedJ&Stoidentifyitsminusesaswellascompetitor'sthereforecompanytookall
possiblemeasurestocorrectminuses.Thisisonereasonwhycompanysalesroseupsuddenlyinlasttwomonths.J&Scarried
outatrainingprogramabouttwomonthsagoandthereseemtobeamassiveincreaseinproductionefficiencyandworkersare
motivated.
1.3
Strengths
*Beingaleaderinthefurnitureindustry
*Widermarketshare
*Goodcustomerservice
*Goodoffersatlowprices
*Attractiveofferscomparedtocompetitors
Weaknesses
*DifficultiesinfindingoutareliablesupplierfromEUorUK*Limitedbudget
*Placeofoutlet
*Lackofstrengthtoborrowasbusinessisstillsmall
*Damagedreputation
2.Proposechangestoimprovemanagementandbusinessperformance.2.1
ThemainweaknessofthecompanyisdifficultyinfindingoutacheaperandreliablesupplierfromanEUcountry.Eventhough
J&Striedtheycouldnt.Thereforetheyshouldatleasttrytoincreasethediscountinordertocoveruptheirtaxes.Companycan
examinethedesignoftheproductandmakeimprovements.Sincefurnitureisaproductwherethecustomerslookat
attractivenessmanagementcandevelopalternativedesignswhicharemoreattractivetothecustomer.Customerswillhavea
widerchoiceandcompanycanspreadtherisk.Thisisgoodforreputationaswell.Companyshouldtrytoidentifywhatfeaturesin
thedesignshouldberemoved.Iftheseunwantedfeaturesareremovedthenthecostofproductionwillfallresultinginhigher
profits.Whencompanyismakingmoreprofitsithasstrengthtoborrowmoneytofunditsoperations.J&Sshouldtrytoinvestin
newtechnologysuchascomputersoftwaretodesigntheproductsoitmaybepossibletodevelopadesignwithouterrors.The
http://btechndcourse.blogspot.com/search?updatedmax=20150211T09:10:0008:00&maxresults=7&start=19&bydate=false
Unit14Touroperatormanagement
Unit14Touroperatorma
Thisunitenableslearnerstogainund
ofthetouroperatorsindustry,t...
UNIT1:THECONTEMPORARYHOS
INDUSTRY
INDUSTRYU
Researchprojectinhealthandsocial
UNIT2:FINANCEINTHEHOSPITALI
INDUSTRY
UNIT2:FINANCEINTHEHOSPITALI
INDUSTRYFinanceintheHospitality
IndustryR/601/1789415LO1Unders
sourceso...
INDUSTRYSolution
INDUSTRYGetguidelinehere
http://btechndcourse.blogspot.in/2014
contemporaryhospital...
UNIT9:HUMANRESOURCEMANAG
FORSERVICEINDUSTRIES
UNIT9:HUMANRESOURCEMANAG
FORSERVICEINDUSTRIES
humanresourcemanagement
humanresourcemanag...
Unit21:SMALLBUSINESSENTERPR
Unit21:SMALLBUSINESSENTERPR
BusinessEnterpriseH/601/1098
investigatetheperformanceofasele.
UNIT5:FOODANDBEVERAGEOPE
MANAGEMENT
UNIT5:FOODANDBEVERAGEOPE
MANAGEMENTFoodandBeverageO
ManagementL/601/1791LO1Unders
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qualityoftheproductwillbesuperiorandproductperformancewillbesuperior.J&Sshouldtrytoinvestonrobotsinmanufacturing
bringtheproductintothemarketearlierthanthecompetitorthentheycanhaveanadvantageoverthecompetitor.Althoughthis
mayreducehiscashflowforsometimeitwillforsurebenefithiminthelongrun.2.2
SinceJ&SisoneofthemarketsleaderinLondontheyshouldtrytobenumberoneandmaintainthatposition.Howeveritis
notaneasytask.Theyshouldadvertiseitsproductineverypossibleway.Ecommerceisagrowingmarketandpresentlygrowing
numberofcustomersareusinginternettobuyproductsoifJ&Sdidn'tadvertiseintheinternetitwillbelaggingbehindits
competitorsanditwillbeloosinglotofrevenue.SinceinternethasaglobalreachJ&Sshouldadvertiseintheinternetbecauseit
willhelpthemtoincreasetheirmarketshare.J&Sshouldcarryoutamarketresearchandfindoutcustomer'sneedsandgive
offersaccordingtotheirneeds.IfthisapproachisusedJ&Scanmaximizeitssalesrevenueinallthebranches.3.Revise
businessobjectivesandplanstoincorporateproposedchanges.3.1
SinceUKisinaeconomiccrisiscompanyisplanningtoopenupatleasttwobranchesinanotherEUcountrysuchasFrance
andGermanyinordertoincreasethemarketshareandspreadtheriskJ&Sisplanningtofundthesenewprojectsfromtheir
retainedprofits.Actionplan
1stNov2008Haveameetingwithallthepartnersanddiscusstheiropinionsinordertodonecessaryamendmentstothe
plan.15thNov2008Explaintheworkersaboutthenewprojectandmakethemunderstandthebenefitsofthis.31stNov2008
Examinethenewmarketandidentifytheneedsofthenewcustomers.15thDec2008Contactthesuppliersandordertheraw
materialsneededfortheproducts.1stJan2009Openuponlyonenewbranch.
differentfood...
UNIT4:RESEARCHPROJECT
UNIT4:RESEARCHPROJECT
ProjectK/601/0941LO1Understand
formulatearesearchspecification
Unit12HOSPITALITYOPERATIONS
MANAGEMENT
Unit12HOSPITALITYOPERATIONS
MANAGEMENTHospitalityOperations
ManagementH/601/1795LO1Unders
operationalandeconom...
Unit13CONFERENCEANDBANQUE
MANAGEMENT
Unit13CONFERENCEANDBANQU
MANAGEMENTConferenceandBanq
ManagementM/601/1797LO1Under
natureoft...
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1stJune2009Comparetheactualresultsofthenewshopswithbudgetedfiguresofthefirstsixmonthsiftheyareachieved
thetargetsthatmeansthecompanyisfunctioningwellIfnotamendtheplanaccordingtothechangingmarketconditions.Ifthe
BLOGARCHIVE
targetsarenotachievedJ&Sshouldidentifyreasonsadversevariancessuchaschangesincustomer'swants.31stDec2009
2015(120)
Aftertheendof1styearthecompanyshouldcarryoutamarketresearchandanalyzeallitssalesfiguresinordertogetaclear
pictureaboutthecurrentpositionofthecompanyandsettargetsforthenextyear.15thJan2010Makearrangementtoopenup
thesecondoutlet.1stJune2010carryoutamarketresearchandidentifyminusesandtakeremedialactions.31stDec2010
Comparetheperformanceofthesenewbranchesandto
competeinthemarket.4.Examinetheimpactandmanagementofchangeinthebusinessoperations.3.1
Whennewbranchesareopenedthebusinessoperationsbecomemorecomplexandcompanywillnotbeabletofocuson
servicesthereforeSmithmustmakesuretodesignitsbusinessplansinawaythatallobjectivesareachievedatthecorrecttime.
Ifonethingwasneglectedthiswillaffectthebusinessplannegativelyresultinginheavyfinanciallosses.Whennewbranchis
openedSmithshouldrecruitmoreworkers.Theyshouldalwaysmakesuretorecruitpeoplewhohaveexperienceinthesimilar
field.Thisismoreeconomicalthantraininguntrainedpeopleandalsoworkinghoursshouldbearrangedinawaythatworkersdon't
feelstress.Minorstaff'sopinionssuchascustomerserviceassistantsshouldbetakenintoconsiderationwhenmakingdecisions
becausetheyarethepeoplewhoaredealingwiththecustomers.Sincethecompanyisenteringtoanewmarketthereare
barrierstoentrysuchasculturebarrier,languagebarrier.Smithshouldadoptthelocalcultureinthatmarket.Ifnottheymayfindit
difficulttosurvive.
PESTAnalysis
PPolitical/LegalfactorsEEconomicfactors
SSocialandculturalfactorsTTechnologicalfactors
Allthese4factorsarefoundintheenvironment.ChangesinPESTfactorscanhaveanimpactoneeverybusiness.Ifmaybea
positiveornegative.
April(7)
March(12)
February(7)
Business
decision
making
Business
decision
making
Unit6Business
Decision
making
SmallBusiness
Enterprise
SMALL
BUSINESS
ENTERPRISE
Foodand
beverage
services
FoodAnd
Beverage
Operations
Management
January(94)
2014(281)
Economicfactors
Economicfactorsrefertochangeininterestrates,Exchange
rates,Inflation,changesintheeconomicgrowthandchangesinthetaxrates.Allthesechangeswillhaveaneffectonthe
business.
Eg.IftheinterestratesincreasecostofborrowingwillincreaseandtheJ&Smayhavetocutdownontheborrowing.
WheninterestratesincreaseoperatingcostwillincreaseandtheJ&Smayhavetoincreasetheprice.ThismayaffectJ&S's
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sales.
Taxation
Iftaxationincreasestherewillbeafallinprofits.DividendstoJ&Spartnerswilldecreaseandtherewillbefallin
investmentbutifthereisareductionintaxationJ&Scanmakehigherprofits.
Inflation
IftherateofinflationincreasestherewillbeanincreaseinthecostonandJ&Swillbecompelledtoincreasethe
sellingprice.J&Swillbecomelesscompetitiveinthemarket,consequentlyvolumeofsaleswillfallthereforeinflationaffectsales.
Fromtheaboveegs.wecanseethatchangesineconomicfactorsmayhavefavorableoradverseimpactthereforeitisnecessary
toconstantlymonitorchangesintheeconomicfactors.
Technologicalfactors
Changesintechnologymayhaveanimpactonthebusiness.Technologyhaschangedhowservicesareprovidedto
customers.IncreaseininternethadeenabledPeoplefromothercountriestoVisitJ&Swebsiteandsubmitapplications.Thiswill
helpJ&Stoattractmorecustomers.J&SuselatesttechnologyreplacingpapercommunicationtherebyLCMIThavebeenableto
showbetterresultsbyusingbettertechnology.
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Labels:SMALLBUSINESSENTERPRISE
SMALLBUSINESSENTERPRISE
SMALLBUSINESSENTERPRISE
INTRODUCTION
Asmallbusinessisabusinessthatisprivatelyownedandoperated,withasmallnumberofemployeesandrelativelylow
volumeofsales.Smallbusinessesarenormallyprivatelyownedcorporations,partnerships,orsoleproprietorships.Thelegal
definitionof"small"variesbycountryandbyindustry,rangingfromfewerthan15employeesundertheAustralianFairWorkAct
2009,50employeesintheEuropeanUnion,andfewerthan500employeestoqualifyformanyU.S.SmallBusinessAdministration
programs.Smallbusinessescanalsobeclassifiedaccordingtoothermethodssuchassales,assets,ornetprofits.Small
businessesarecommoninmanycountries,dependingontheeconomicsysteminoperation.Typicalexamplesinclude:
conveniencestores,othersmallshops(suchasabakeryordelicatessen),hairdressers,tradesmen,lawyers,accountants,
restaurants,guesthouses,photographers,smallscalemanufacturing,andonlinebusiness,suchaswebdesignandprogramming,
etc.
Whydopeoplestartasmallbusiness?Somewanttospendmoretimewithfamily,andstartingabusinessallowsthemtodo
that.Somefinditexhaustingtobeoutsidethehouseallday,dealingwithtraffic,coworkers,meetingsandinterruptions.Some
peoplehateansweringtoabossallthetimeneedingpermissiontoscheduleadentistappointmentortakethedayoffwhenthey're
sick.Somepeopleareunmotivatedbythesecurityofaregularpaycheckandpreferthechallengeofthedirectrewardsorlosses
thatentrepreneursseefromtheirefforts.
Maybeyouwanttobuildanempireandbecomefamous,orcreateawealthgenerationmachinethatyoucanpassontoyour
children.Orperhapsyoucan'tconvinceanyonetorecognizeyouruniquevisionandyou'vedecidedthatitwillnevercometo
fruitionunlessyoustrikeoutonyourown.Ormaybeyou'rethinkingofselfemploymentbecauseyou'vebeenunemployedforso
longthatyoufeelthatyou'veexhaustedalltheotheroptions.
Becomingasmallbusinessownerhasuniquechallengesandrewardsthataren'trightforeveryone.Youmustbedriven,
disciplinedandabletoidentifyaproductorservicethatpeopleneedonethattheywillpayenoughfortoallowyoutolive
comfortably.Youhavetodevelopmarketingskillsandbeabletofindyourownwork,becauseitwon'tfallintoyourlapuntilafter
you'rewellestablished.Businessownersneedtounderstandhowtobudget,keeprecordsandhandlesmallbusinesstaxes.They
mustfamiliarizethemselveswithemploymentlawsiftheywanttohirestaff.Theyalsoneedaplanforprotectingtheirbusinessand
everythingthat'stiedtoitifsomethinggoeswrong.TASKONE
Usinganorganisationofyourchoice,explainthefollowing:Describetheprofileofaselectedsmallbusiness
Haabasbeautysaloon
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HaabasbeautySalonhasbeenservingtheGambianforover3years.Theowner,Haaba,has3yearsexperienceasa
haircutterandasaprofessionalstylistforweddings,proms,andspecialoccasions.Thesalonhasafullservicestaffwithvery
littleexperienceinhairandnailcare.HaabasSalongoalsaretocreateafriendly,relaxed,warm,andcomfortableplaceformen
andwomen,children,andfamilies.Shealsoenjoysprovidingsalonservicesforpeopletoenjoyhavingtheirhairandnailsdone.
Thesalonsinteriorprovidesanaturalenvironmentfilledwithbeautifulgreenery,soothingstereomusic,andcableTVtomakethe
entirefamilyfeelcomfortable.Haabaisalwaystheretofinishupclientshairsoastogivethemthebestlooks.Thesalonservices
offeredarehaircuts,highlightcolouring,perms,updos,bridal,homecoming,specialoccasionstylesandnailcare.Makean
appointmenttodayandexperiencethefriendly,warm,andcomfortableserviceyoudeserve.
Reviewandanalysetheperformanceofabusiness
Performancemeasurementcouldbeseenintwowaysmainly,
*Organisationalperformancemeasurement
*Individual/workforcemeasurement
ORGANISATIONALPERFORMANCEMEASUREMENT
Underthesection,performancesaremeasuredunderthefollowingcharacteristicsorelement:*Levelofoutputisitbelow
expectationsoraboveexpectation?Isthereanydeviationbetweenplannedresultsoractualresults?*Theprofitabilityofthe
organisation.
*Thelevelofmarketshare.
*Thesalesreturnandreturnoncapital.
*Durabilityintermsoftime,frameandbusinessexistence.INDIVIDUAL/WORKFORCEMEASUREMENT
Here,performanceismeasuredbytakingintoaccountsthefollowingelements:*Thelevelofovertimespentbytheindividual
beyondthenormaltime.*Howefficientandeffectiveistheworkforceorindividualefficiencyandeffectivenesstakesintoaccount
performingataskwithinashorterperiod,competencyreductioninerrorsandmistakes*Theoutputandthetimeframerequired.
*Thelevelofpunctualityandcommitmentoftheworkforcetowardsmeetingobjectivesandgoals.*Themeetingofabenchmark
orayardsticksetbytheorganisationormanagement.
Identifythestrengthsandweaknessesofthebusiness
SmallEnterpriseStrengths
PersonalTouch
Customerswilloftenpayapremiumforpersonalizedattention.Inmanycompanieswhereproductsandpricesdifferencesare
minimal,thehumanfactoremergesasaprimecompetitiveadvantage.GreaterMotivation
Keymanagementofsmallenterprisenormallyconsistsoftheowner(s).They
workharder,longerandwithmorepersonalinvolvement.Profitsandlosseshavemoremeaningtothemthansalariesandbonuses
havetotheemployeesofamultinationalcompany.GreaterFlexibility
Asmallenterprisehastheprimeadvantageofflexibility.Bigcompanycannotstopoperationwithoutoppositionfromorganized
labor,orevenincreasepriceoftheirproductswithoutpossibleinterventionfromgovernment.Smallenterpriseshaveshorterlines
ofcommunication.Theirproductlinesarenarrow,theirmarketlimitedandtheirfactoriesandwarehousesarecloseby.Theycan
quicklyspottroubleoropportunityandtakeappropriateaction.Lessbureaucracy
Insmallbusinessthewholeproblemcanbeunderstoodreadily,decisioncanbetakenquicklyandtheresultscheckedeasily.
Butinamultinationalcompany,bogusmanagementstructurecanleadtodelayintakenactionandbureaucraticinfluences.
Unobtrusive(LessConspicuous)
Smallcompanycantrynewsalestacticsorintroducenewproductswithoutattractingundueattentionoropposition.Thisis
possiblebecauseitisnotquiteasnoticeableasmultinationalcompany.Largecompanyisconstantlyfacedwithproxybattles,
antitrustactionsandgovernmentregulations.Itisalsoinflexibleandhardtochangeorrestructure.
Weaknessesofsmallbusinessenterprise
Location
Thelocationofmyshopisverybad.Duringtherainyseason,therearemassivepoolsofwaterandcarsrarelywanttocome
aroundthatarea,therefore,Ihardlyhaveanyclientsduringthatperiod.Attitude
Theattitudeofmystafftowardsaclientisexcellentbuttheyhardlycometowork.Iftheyevershowup,itsneverontime.I
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havetoalwayscallthemandwakethemupbeforetheycometoworkandtheabsenteeismisveryrampant.Itisalwaysone
excuseortheother.Managementstyle
ThemanagementstyleIuseinmysalonislaissezfaire.Ioffernoorvery
littleguidancetomystaff,amidstleavingthemtomakedecisionsontheirown.Asmuchasitcouldbeovertlyeffectiveinthose
situationswheremostemployeesormembershappentobehighlyqualifiedandskilfulintheirareaofexperience,ithasoftenledto
poorrolesdefinitionplusasheerlackinmotivation.Qualityofproducts
Iuseverypoorqualityproductsinmysaloon.Ibuythecheapthingssoastogetmoreprofitattheendoftheday.The
shampooandhairlotionsIusehaveverypoorqualitytherebydestroyingmyclientshair.Thisthereforediscouragesthemtocome
backtomysaloon.ExternalOpportunitiesandThreats
Situationalanalysesconsideropportunitiesandthreatsfromtheexternalenvironment.Externalopportunitiesincludethings
suchasgapsinthemarketthatnocompanyiscurrentlyserving,newmarketsandothercleargrowthopportunities.External
threatsincludenewproductreleasesfromcompetitorsandnewcompetitorsarisinginthemarket.Arangeofexternalfactorscan
presenteitheropportunitiesorthreats,dependingonthespecifics.Changesinthelaw,forexample,canprovidedistinct
opportunitiestosomebusinessesinanindustrywhilethreateningthesurvivalofothers.Changingconsumerpreferencesand
marketchangingnewproductcategories,asanotherexample,cangivenewentrepreneursaworldofopportunitieswhileseriously
threateningestablishedbrands.
RECOMMENDATIONSTOOVERCOMEWEAKNESSES
Lackofexperience.Noteveryoneiscutouttobeanentrepreneur.Analyzethestrengthandweaknessesofstartingyourown
business.Itisimportantforbusinessownerstobeselfstarterswhoaregoodatplanning,organizing,andmakingdecisionsthat
canbenefittheirbusinessinthelongterm.Itisalsoimportanttochoosetherightbusinessforyouwhichmaynotbethemost
profitable,buttheoneinwhichyouhavethemostinterestandskillsets.Networkwithothermoreexperiencedbusinessowners
onlineandinyourcommunitytoobtainfeedbackonhowyoucanstartandmaintainasuccessfulenterprise.Poorbusiness
location.Knowingyourtargetconsumerswillhelpyouidentifywheretobestmarketyourproducts
andservices.Insufficientcapital.Manyentrepreneursarenotawareexactlyhowmuchtheyneedforstartupcapitalandhow
longitwilltakebeforetheirbusinessturnsasteadyprofit.Doyourresearchandplanaheadtoidentifyareaswhereyourbusiness
mayfallshort.Investigatepossiblefundingsources,suchasventurecapitalists.Poorcreditarrangements.Acomprehensive
businessplanwillhelpeliminatepoorcreditarrangements.Poorinventorymanagement.Keepupdatedandaccurateinventory
recordstoavoidfutureproblems.Unexpectedgrowth.Althoughitisoftenhardtopredictthefutureeconomy,comeupwithaplan
forwhattodoinbothpositiveandnegativesituations.Considerconsultingcompaniesthatspecializeinhelpingbusinessesdeal
withsituationsinvolvingunexpectedgrowth.
Benchmarking:Ifonepersonlagsbehind,theorganizationcan'tmoveforwardasaunit.Itisdifficulttoevaluatean
employee'sperformanceifyoudon'tknowwhatstandardsyoushoulduse.Benchmarksarestandardsforemployeeworkthatthe
companyrequires.Theemployee'sabilitytomeetthosebenchmarksshouldbethefoundationoftheperformanceevaluation.Set
benchmarksinseveralareasandcommunicateyourexpectationsformeetingstandardstoemployees.Benchmarksfor
Productivity
Employeesshouldknowexactlyhowmuchworktheyareexpectedtodoinaworkday.Theoptimumsituationiswhenthis
productivitycanbemeasured,suchasinproducinganumberofunits.Evennonmanufacturingproductivitycanbemeasured,
however,intermsofsales,publicityarticleswritten,contactsinitiated,successfulnegotiationsandsoforth.Setspecific
benchmarksinanyareaofproductivityinwhichyouwanttomeasureanemployee'seffectiveness.BenchmarksforQuality
Qualityofworkmustbeapartofaperformanceappraisal.Establishlevelsofexpertiseyouexpect,andusethoseas
benchmarks.Youcanmeasureerrorrateinproductsproduced,customersatisfactionandeffectivenessofprojectsagainsta
standardyouestablish.Thiscanbestatedasapercentage.Example:Employeemeetsqualitystandards85percentofthetime.
BenchmarksforLivingUptoCompanyValues
Eachcompanyshouldhaveamissionstatementandasetofvaluesbywhichitoperates.Yourperformanceappraisalcan
assesshowoftenandhowwellanemployeelivesuptothosevalues.Setabenchmarkthatdemandscomplianceinthe
neighborhoodof90percentofthetime,andseehowyouremployeesarealignedwithcompanyvalues.BenchmarksforProductor
ServiceEffectiveness
Ifyourproductorservicedoesnotliveuptocertainstandards,youwillsoonbeoutofbusiness.Thisisatleastpartiallythe
responsibilityofemployees.Evaluateemployeesagainstaproductorserviceeffectivenessbymakingthemresponsiblefor
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improvements.Youcansetbenchmarksformakingimprovements,suchas:Employeecontributesqualityimprovement
suggestionsfrequently.Theword"frequently"wouldbeyourbenchmarkinthiscase,andthoughitissomewhatsubjective,atleast
itgivesyouastartingpointforevaluations.Definitionofjobprocedures:Establishedworkprocedureshaveproventobebeneficial
inmanyways.Theyplayanintegralroleinperformingjobssafely,providingstandardizedtrainingandbeingassistivewith
investigations.Jobproceduresaredefinedasastepbystepdescriptionofhowtoproceed,fromstarttofinish,inperformingatask
properly.Whereconfusionseemstorunrampantisindeterminingwhetherajobrequiresanactualjobprocedureorshouldbe
considereda"task"whichisasegmentofworkwhichrequiresasetofspecificanddistinctactionsforitscompletionorifitshould
bea"practice"whichisasetofguidelineshelpfulforaspecifictypeofworkthatmaynotalwaysbedoneinthesameway.
Planning
Planningisanessentialbusinessfunctionthatrequiresadedicatedeffortfromthecompanysmanagementteaminorderto
fullyrealizethebenefits.Companiesoftenhaveanannualplanningprocesswherebythestrategiesandbudgetfortheupcoming
yeararedetermined,but,ideally,planningshouldbeapartofeverydaymanagementthinking.Itisamindsetofcontinuallylooking
forwaystomaketheenterprisemorecompetitive.Duringtheplanningprocess,goalsaresetforboththeshortandlongterm.
Oncegoalsareset,strategiesaredeterminedtoreachthegoals.Informationisthe
rawmaterialthatfuelstheplanningprocess.Managementmustgatherdetailedinformationaboutthestrengthsandweaknessesof
competitorsinordertocomeupwithstrategiesthatcreateacompetitiveadvantageforthecompany.Marketresearchisalsokey
understandingyourcustomerswillallowyoutobetterattractandservethem.Consumersneedschange,theirtasteschange,and
whattheyarewillingtopayforproductsorserviceschangesdependingontheeconomicenvironment.Planningrequiresvision,or
theabilitytoseesuccessforyourcompanybeforeitoccurs.Knowingwhereyouwantthecompanytobeinthreetofiveyearsand
whatyouwanttoachieveduringthattimeisanessentialingredientofsuccessfulplanning.Companiesmustallocatetheir
resourcestowhattheydeterminearetheirbestopportunities,andshouldbeconstantlyseekingoutnewopportunities.A
companysbestopportunitiesresultfromacombinationofitscapabilities,orwhatitdoesparticularlywellincomparisontoits
competitors,andwhatthemostcriticalcustomerneedsare.Thebusinessownermustanticipatethisandbringinadditionaltalent
aswellasbuildtheskillsoftheexistingteammembersthroughadditionaltrainingandeducationSOURCESANDAVAILABILTY
OFPROFESSIONALADVICE
Amanagementofanorganisationmightnotbeinabetterpositiontosolveorovercomethefundamentalweaknessesof
businessperformance.Therefore,shareholdersandmanagementmayprefertocallonexternalpartiesbasedonareaofspecialty.
Whateverconcreteadvicesaregivenandimplementedwithintheorganization.
Externalsourcesofprofessionaladvicesusuallycomefrom:
Financialconsultant:provisionofsalientadvicesonfinancialstatement,cashflowstatement,tradingprofitandlossaccount.
Managementconsultantprovisionofadvicesonmanagementstructure,planningandcoordinatingofactivities,taskallocationand
definitionofjobs,humanresourcesplanning,whichwouldbebasedondivisionoflabourandspecialization.Legalconsultantevery
organizationhasalegalpractitionerthathandleslegalmattersoftheorganization.Thepractitioneradvicesonappointmentofstaff,
legalrelationshipbetweenthegovernmentandtheorganization,betweenmanagementandstaffandbetweenbusinessand
business.Itistheresponsibilityofmanagementtoimproveonitsexistingfinancialrecords.Keepingtrackrecordsondebt
collection,payrollsystem,andfinancialauditingandbalancesheetstatementwilldefinitelyimproveonexistingweaknessesofthe
organization.Failuretoabidetothisfinancialdisciplinewilldefinitelycreatebankruptcyandliquidationoftheorganization.Failureto
abidetothisfinancialdisciplinewilldefinitelycreatebankruptcyandliquidation.
USINGTHESAMEORGANISATION,SUGGESTNEWARESOFEXPANSION:ANDINVESTIGATEWAYSOF
STRENGTHENINGEXISTINGPERFORMANCE.FindingnewcustomersisthemajorchallengeforSmallbusinessowners.
Smallbusinessestypicallyfindthemselvesstrappedfortimebutinordertocreateacontinualstreamofnewbusiness,theymust
workonmarketingtheirbusinesseveryday.Commonmarketingtechniquesforsmallbusinessincludenetworking,wordofmouth,
customerreferrals,yellowpagesdirectories,television,radio,outdoor(roadsidebillboards),print,emailmarketing,andinternet.
ElectronicmedialikeTVcanbequiteexpensiveandisnormallyintendedtocreateawarenessofaproductorservice.*2.2)
investigatewaysinwhichexistingperformancecouldbemaintainedandstrengthenedAstherearelotofsmallbusinessesacross
theglobe,itisnecessarytomaintainsustainabilityandsurvival.Theactofmaintainingandstrengtheningexistingbusinessby
managementandshowproprietorshipisquitedifficultandcomplex.Butnevertheless,itisaresponsibilitybestowedonownersto
maintainandstrengthentheirprojectsororganisations.Thesefactorsorelementsarecharacterizedwiththemaintenanceand
strengtheningofexistingbusiness:MARKETSHARE/POSITIONING:marketshareisthenumberofcustomersportfolioattached
tothatbusiness,anditisalwaysdeterminedinpercentage.Agivenpercentagemustbemaintainedasamarketshareinorderfor
sustainabilityandgrowth.BUSINESSPENETRATION:thestrengtheningofabusinessrequiresconstantandpersistentmarket
penetrationinallcornersofthesegmentedmarketsbyreducingthepriceforproductsandmaintainingqualityproductanddelivery.
CUSTOMERRELATIONSHIP:existingbusinessmustestablishcordialandfriendlyrelationshipbetweentheorganisationandits
customers,regardlessofwhetherthecustomerisanexistingorpotentialone.MAINTAINING
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APPROPRAITEPERFORMANCERECORD:themanagementmustcloselymonitortheperformanceoftheworkforce.The
performancerecordtakesintoaccountabsenteeism,highlabourturnover,punctuality,productivityandefficiency,etcADVISORY
RELATIONSHIP:businessesmustreceiveadvicesfromexpertsinallcornersinordertoprotectthebusiness.Someofthe
fundamentaladvisorscomefromlegalpractitioners,financialconsultants,managementandmarketconsultants.PRODUCT
QUALITYANDDELIVERY:theresearchanddevelopmentshouldconstantlyworktomaintainandprovidequalityproductand
services,plusquickdeliveryandaccessibilitybycustomers.HowdoIStructureaPerformanceReview?
Theperformancereviewiswrittentomeetseveralgoals.Thosegoalsincludejudgingtheviabilityofyouremployees
performance,benchmarkingthatperformanceanddevelopingacareerpathforyouremployee.Whiletheinformationwithinthe
reviewwillvarybyemployee,thestructureofeachperformancereviewshouldbequitesimilar.GeneralPerformance
Theemployeesgeneralperformanceincludesbasicworkplaceresponsibilities,suchasattendance,punctualityandpolicy
adherence.Generalperformancealsoincorporatesthesoftresponsibilities,includingattitude,cooperativeness,approachability
andtheemployeesoverallabilitytotakecleardirection.Althoughtheseaspectsarenotimmediateaspectsoftheemployees
specificjobresponsibilities,theseaspectscangreatlyaffecttheoverallsuccessorfailureoftheemployeesjobsuccess.
Therefore,itisimportantthatyounotonlyaddresstheseaspects,butprovidesupportingexamples,suchasanattendancerecord,
customercomplimentorcustomercomplaint.SpecificJobResponsibilities
Thespecificjobresponsibilitiesaretheimmediateitemsinwhichtheemployeeisresponsibleforcompletingeverydayand
withoutfail.Dependingontheposition,theseresponsibilitiesmayincludecustomerservice,sales,inventoryandevenresolutions.
Thesearetheresponsibilitiesthatdirectlyaffectthebusinesswhentheyarenotcompleted.Yourreviewofthesespecificsshould
includeacloseanalysisofyouremployeesproductivityandsuccesswithintheposition.Likethegeneralperformancesection,you
shouldsupportyourfindingsandcommentswithsupportinginformation.Thiswillmaketheinformationandfindingseasierforthe
employeetounderstandduringyourperformancereviewdiscussion.YeartoYearComparison
Ifyouareevaluatingatenuredemployee,yourperformancereviewshouldincludeasectionthatprovidesayeartoyearor
evaluationtoevaluationcomparison.Thecomparisonshouldreviewthecontinuedprogress,aswellastheareasthatneed
improvement.Thisevaluationcomparisonwillalsobegintoshowapatternofexpectancyfromyouremployee.Intheeventofa
poorevaluation,acomparisonofevaluationswillhelpyoutoidentifyifyouremployeeisjusthavingasubparyear,strugglingina
certainareaorsimplyneedingachangefromtheposition.Comparisonsalsohelptoidentifyemployeesthathavegrownthrough
theirpositionwithhopesofadvancementorpromotion.
GoalSettings
Goalsettingisanessentialforceintheperformancereview.Thegoalsthataresetwithintheperformancereviewarebased
onthefindingsoftheaforementionedsections.Thisindividualizedsectionwillprovidetheemployeewithstepstowardimproving
theirpositionandsuccesswithinthecompany.Thegoalsshouldincludeitemssuchasimprovedattendance,refinedmetrics
adherenceandimprovedaccuracy.Thegoalsshouldbeclearlystatedandwithintheemployeesreach.Considerations
Itisimportantthatyouprovideanunbiasedreviewoftheemployee.Theperformancereviewshouldbebasedonfactsthatare
supportedwithevidencethathasbeencollectedthroughouttheyear.Avoidusingrumors,innuendosandguessworkwhen
completingtheperformancereview.Itisalsoadvisedthatyoucompletethereviewwhenyouareclearheaded,wellrestedand
withoutangertoensurethatyouprovidingafairreview.
*2.3)SUGGESTNEWAREASINWHICHTHEBUSINESSCOULDBEMAINTAINEDANDSTRENGTHENEDJUSTIFYING
SUGGESTIONS.
Newopportunitiesarebenefitedandcompetitivemeritsopenedtoexisting
businesses.Whethersmallorlarge,businessfacesopportunitiesduringtheirstayinoperationorbusinessactivities.Someofthe
newopportunitiesavailabletoexistingbusinessesareasfollows:
IDENTIFICATIONOFAREAOFEXPANSION:itistheresponsibilityofmarketerstoexpandtheirmarketingactivitiesto
areasoutsidecentralmarketing,butrathertoevaluateandtargetmarketthatfallsoutsidetheirgeographicallocations.Thissimply
meansthattargetinglocationsisinstrumentaltomarketshares,customerportfolioandprofitability.
EXPORTMARKETING:Localmarketingdoesnotrequiretheexpectedgrowthandprofitorganisationandmarketersneedto
ventureintoexportmarketknownaninternationaltrade.Exporttradeincreaseprofitabilityandgrowth,butfallduetosome
obstaclesrangingfromroomlanguagebarrier,conversionofcurrency,governmentregulation,climaticconditionandcultureofthe
people.
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MARKETDEVELOPEMENT:accordingtoAnsoff,onenewopportunitiesofbusinessisthroughmarketdevelopment.Itisa
processthatmarketersandorganisationsundertakebynotonlylookingatcontemporarymarket(existing)butrathertolookatnew
methodsthroughmarketdevelopmentthattargetsnewcustomers,newlocations,newperceptionsandcultureandaboveall
productappreciations.
RESEARCHTECHNIQUES:Inthemoderncompetitiveenvironment,researchtechniquesanddevelopmentplayacrucial
roleincreatingopportunitiesforbusiness.Theserequiretechniquesbasedonquantitativeandqualitative.Qualitativetechniques
dealwithsoundopinions,views,andperceptionsofpeoplebothwithinandoutsidetheorganisation.Onthecontrary,qualitative
techniquesevaluateissuesorprovideinformationtoorganisationintheformofpercentage,comparingperformances,assessing
actualandplannedobjectivesorresults.Attheend,criticalanalysisismadeandsounddecisionstakenonaparticularproblem.
REBRANDING:thishasbeenanopportunityfororganisationandmarketers.
Whentheproductisrebranded,itbecomesappealingtonewcustomers.Italsocreatesmarketpenetrationbytakingarebranding
producttothesamecontemporarymarket.Thisaddsvaluetotheorganisationintermsofcustomerconfidence,customerretention
andcompanysimageandreputationisbestowed.
IDENTIFYBUSINESSOBJECTIVESANDPLANS,ANDPREPAREACTIONPLANSTOTHECURRENTIMPLEMEMTATION
(BASEDONTHESITUATIONANSOCIETY)*3.1)REVIEWEXISTINGBUSINESSOJECTIVESANDPLANS
Animportantpartofyourbusinessplanistostatewhatyourgoalsasacompanyare.Ifyouareastartup,thenyoullwantto
projectoutforseveralyears.Forinstanceyouwouldstateyourcurrentpositionandwhereyouplantobeinsixmonths,oneyear,
andsoon.Youdlistyourproductorservicesandexplainyourgrowthplansforthelistedperiods.Ifyoureanexistingbusiness,
youwouldshowyourcurrentposition,andthendothesametypeofprojections.Abusinessplanisnotaonetimedocument,at
leastitshouldn'tbe.Mostbusinessesputtogetherabusinessplanduringtheirstartupphasetoorganize,attractpartnersand
employees,andtotryandgetaloanorfinancialinvestment.Thisisagreatuseofabusinessplan,howeverfartoooftenoncethe
companyhasstarteduptheplanisn'ttouchedagain.Ultimately,abusinessplanisaboutresults,aboutmakingyourbusiness
better.Ifyoudon'tthinkdoingabusinessplanwillimproveyourbusiness,thendon'tdoone.Planningforplanning'ssakeisa
wasteoftime.Whereaplanismostlikelytomakeyourbusinessbetterisbyallowingyouto:1.Setprioritiesproperly.
2.Trackplanvs.actualresultsandmakecoursecorrections.3.Planandmanagethecriticalnumbersthataren'tintuitive:not
justprofitandloss,buttherelationshiptocashflow,balancesheet,andratios.4.Communicateyourplantoothers:partners,
employees,lenders,andinvestors.Youmayhaveagreatplaninyourhead,butassoonasyouneedtoexplainittoothers,you
needtowriteitdown.ReviewingYourPlan
Sohowdoyoumaintainyourbusinessplan?Wehavetofirstestablishthatwithoutregularreviewmonthlyoratleast
quarterlyreviewofyour
plannedvs.actualresults,withpracticalanalysisofthereasonsforvarianceplanningislikelytobeawasteoftime.Real
planningrequiresregularreviewsjustasmuchasnavigationrequiresknowingwhereyouareaswellaswhereyouwereand
whereyouwantedtogo.Everyrealplanneedstobefullofspecificdates,budgets,forecasts,andmanagementresponsibilities.
Peopleinvolvedhavetoknowtherewillbetrackingandfollowinguponspecifics.Thenthatplanmustbereviewedagainstresults,
andthosereviewsshouldproducecoursecorrectionsandfinetuning.Generallyabusinesshopesforaconsistentlongterm
strategybuiltonshortstepincrementalchanges,notmajorrevisions.Consistencyisimportanttostrategy,andthebusiness
shouldavoidthetemptationtojumparoundfromonestrategytoanothersoquicklythatnostrategyiseverreallyimplemented.
Rememberthatevenamediocrestrategywellandconsistentlyimplementedismuchbetterthanabrilliantstrategythatwasn't
implemented.However,businessesdocometocrossroadsdemandingmajorrevisionsintheirbusinessplan.Thesearesome
signsthatindicateitstimetoreviewyourplan:Majorchangesinmarketsituation.Lookespeciallyforchangingmarketfactorsand
changingmarketbehavior.*Haveyourunderlyingbusinessassumptionschanged?Asanexample,theInternethaschangedthe
businesslandscapesoenormouslythatinsomeindustriesalmostanyplanthatwasdevelopedwithoutaviewoftheInternetmay
needrevisions.Thatmaynotbetrueforalandscapearchitectorrestaurant,butforatravelagent,graphicartist,ormarket
researcherit'sobvious.*Doyouhavenewcompetition?Havenewcompetitorsemerged,orexistingcompetitorschangedthe
businesslandscapesomuchthatyouneedtoreviewandrevise?*Hastheproductorservicepicturechanged?Forexamplea
newtechnologymayhaveemerged,changingthemarketperceptionofwhatyousell.Theremaybenewproductsorservices
offeringrelatedsolutionstothesameuserneedsyousatisfy.Majorchangesininternalsituation.Themostobviousmajorchanges
arechangesinownership,whicharefrequentlytheresultofchangingpartnerships,divorces,deaths,andinvestment.The
companytakesonnewpartners,orsellsouttoalargercompany.Onamoreominousnote,thecompanysufferssignificant
declinesinsales,profits,andfinancialhealth.Alwayskeeptherevisioninperspective.Whileyoudowanttoreviewandcorrect
constantly,youdon't
wanttochangeastrategyunlessyouaresureitisn'tworkingoryouseerealchangesintheunderlyingassumptionsthatformed
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thefoundationsofstrategy.MaintainingYourPlan
Thepurposeofmaintainingyourplanistousebusinessresultstoguideyourfuturedecisions.Theplanitselfhasnovalueifit
doesn'thelpyouimprovebusiness.That'sregardlessofhowgoodorbad,howbrillianttheideas,writing,orhowelaboratethe
tablesandcharts.Itsvalueisthedecisionsitleadsto.Thatmeans,ofcourse,thattomakeaplanworththeeffortofdevelopingit,
you'llwanttofollowitup.Whetherthat'severymonthoreveryquarter,youneedtotrackresults,analyzethedifferencebetween
planandactualresults,andmanage.Changethingsthatneedtobechanged.Comparewhatyouplannedtowhathappenedin
reality.Askyourselfthefollowingquestions:*Whatwentwrong,andhowcanwefixit?
*Whatwentright,andhowcanwetakeadvantageofit?
*Whatchangestookplaceinthecompetitivelandscapethatcouldbeupdatedintheplan?*Whatchangestookplace
affectingourmarketthatcouldbeupdatedintheplan?*Whatchangestookplaceinternallyinourorganizationthatcouldbe
updatedintheplan?Afteryou'veansweredthesequestions,updateyourplanaccordingly,setnewbudgetsandmilestones,adjust
yourfinancials,andrepeattheprocesswithanotherreviewofyourplanagainnextmonthornextquarter.Updateyourplan
accordinglyagain,andkeeprepeating.You'llfindthatmaintainingyourbusinessplangivesyouabettergrasponyourbusiness,
yourmarket,andeverythingelsethathappenswithyourcompany.
Conclusion
Startingasmallbusinessiscomplex,timeconsumingandlifealtering.Therearemanymorethingsthatgointorunningitthan
justprovidingtheproduct(s)orservice(s)thatyourbusinessoffers,however.You'llalsoberesponsibleforyourbusiness's
finances,protectingyourbusinessandpersonalassets,keepingyourbusinesslegal,payingtaxes,keepingrecords,managing
employeesandmore.Ifyouunderstandwhatyou'redoingandknow
howtominimizetherisksandchallenges,theindependence,personalsatisfactionandfinancialrewardsyoucanachieveasan
entrepreneurcanmakestartingasmallbusinessthebestdecisionyou'llevermake.(Makeyourdreamareality.Findoutwhatyou
candotoreachthisfinancialgoal
Nocomments:
Labels:SMALLBUSINESSENTERPRISE
SUNDAY,FEBRUARY8,2015
Foodandbeverageservices
FOODANDBEVERAGESERVICES
LO1Understandtheoperationalandeconomiccharacteristicsofhospitalityoperations1.1analysesthenatureoftheproduct
andservicearea1.2Evaluatethedifferentinfluencesaffectingpatternsofdemandwithinhospitalityoperations.1.3Compare
customerprofilesandtheirdifferingexpectationsandrequirementsinrespectofhospitalityprovision1.4Analyzefactorsaffecting
averagespendingpowerinhospitalitybusinessLO2understandproductdevelopmentwithinahospitalityenvironment2.1evaluate
thekeystagesinproductandservicedevelopmentappliedwithinahospitalityoperations2.2analysesthefeatureswhich
contributetowardsthecustomersperceptionofproductsandservices2.3assesstheopportunitiesandconstraintsaffecting
productandservicedevelopmentwithinahospitalityenvironment2.4evaluatedifferentmerchandisingopportunitiesforhospitality
productsandservicesLO3understandpricingandprofitabilityconceptswithinhospitalityoperations3.1evaluatedifferentmethods
ofpricingtakingintoaccountadditionalpricingconsiderations3.2assessthefactorsinhospitalityoperationswhichaffectrevenue
generationandprofitabilityLO4beabletouseappraisaltechniquestoanalyseandimproveoperationalperformanceandmake
proposalsforaction4.1applydifferentperformancesmeasuresandappraisaltechniquestoindividualaspectsofhospitality
operationstheproductandthewholeoperations4.2determinetheeffectivenessofdifferentquantitativeandqualitativeappraisal
techniquesandtheirapplicationtohospitalityoperations4.3applyapproachestobusinessanalysisevaluationandplanning
appropriatetohospitalityoperation,makingproposalsforactions.
Introduction
IreadoutwholecasestudyandIfoundachevalierishospitalityestablishmentwhichissituatedonbeachandbecauseof
manyproblemstheirsalesgoingdown.Ifoundthatthereisnomanagement,servicesarenotthatmuchgood,badconditionof
restaurant,nosignage,lackofstafftraining,
noexperiencedpersonsinestablishmentandpropercleaning.Customersbecomelessdaybydaybecausetheyarenotsatisfied
withservicesandatmosphere.Chevaliersgeteasilymakemoneyfromrestaurantbuttheydonthaveproperplanningand
experiencedpersonstorunbusinessingoodwayormakingmoreprofits.Theirrestaurantsituatedonthebeachanditisreally
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verygoodlocationforbusinessbecausecustomersattractfromnaturalthings.Peoplelovetoseeviewsandenjoyingfoodwhile
watchingseaviews.Chevalierssituatedonbeachwiththreestoriedrestaurant.Inthisrestauranttheyhavebeachlevelkiosk,la
carterestaurantanditcancoverupto100coversandtheyalsodoingoutdoorcateringfacilitywith200covers.Inthis
establishmentmostofthepeoplecomefrommiddleclassfamilies.Differenttypesofcustomerscomeheretoenjoyfoodlike
parentswithchildrens,walkers,joggersandcouples.Fromthelastoneyearchevaliersbusinessinlossbecauseofless
customers.Thesuccessofanyhospitalitybusinessdependsmainlyonitsdevelopmentplans.Businessdevelopmentincludesa
widerangeofactivitiesthatcreateneworchangedofferings,organizationsprocess.Itenhancessales,improvescustomer
satisfaction,augmentsquality,diminishescostsandachievesnumerousbenefitsfororganizationstobesuccessfulandhereI
implementdifferentstrategiestoimprovebusiness.Therearenumbersofthingstorunbusinessandmakemoreprofitslikepricing
offandb,accountingandmaintenanceetc.
Lo1understandtheoperationalandeconomiccharacteristicsofhospitalityoperations.Natureoftheproductandservicesareas
Buffetservice
ABuffetServiceisaselfserviceservingstylewheretheguestsservethemselves.Thisstyleisagreatmethodforfeeding
largenumbersofpeoplewithminimalhelp.Thedinnerbuffetisthemostpracticalandcongenialwayinwhichtocareforyour
guests.TherecanbemanyvariationsoftheBuffetService.Itcanbeeithercountrycasualorsemiformal.Itprovidesamore
relaxedmethodofdiningandamorevariedmenuthanafullservicemeal.Theentertainingbuffetpresentationoffoodcanbe
placedononeormoretablesclosebutawayfromthetableswheretheguestswillbeseatedduringdinner.Theguestswillgoto
thebuffettablesandservethemselvesfroma
varietyofmenuitems.Therearehotbuffetsandcoldbuffets.Coldbuffetsaretypicallysaladsandsandwiches.Alsothebackyard
barbequecanbeaBuffetService.Anentertainingdessertbarcanbeusedforanafternoongatheringoffriends.TheBuffetService
canhaveastaffwheretheguestsbringtheirownplatealongthebuffetlineandaregivenaportionfromaserveratoneormore
stations.Anadvantageofbuffetsisthatguestshavetheabilitytoreviewfoodbeforeselectingitandtakingonlythequantity
needed.SinceabuffetinvolvespeopleservingthemitislesselegantthanTableService.BuffetServiceisusedanytimethereare
largegatheringsevenatmanyformalweddingreceptions.Buffetmeanstofeedlargenumberofpeopleatonetime.Inchevaliers
weprovideabuffetserviceforcustomers.Therearedifferenttypesofbuffetservicesinthisworld.Chinesebuffet,Indianbuffet,
Italianbuffetetc.buthereIdecidedtoimplementedFrench,continentalbuffetforcustomersbecauseofEnglish,kiwipeoples.In
NewZealandmostofthepeoplelovetoeatcontinentalfoodsotheFrenchbuffetisbestoption.Inbuffetsystemweprovidemany
disheswithonecostandguestenjoyfoodwithbulkquantity.Customershavetoservethemselvesfromdifferentstationslikea
saladbar,hotitems,desertstationandallentre,mains.Hereweprovideoutdoordinning,friendlyenvironment,privateparties
etc.accordingtocustomerneeds.
(http://restaurants.about.co)
Bestlocationforbuffetandsetup
Buffetsettingrequiresplanningwithregardtolayoutandeasyaccessforeveryguest.Buffetbestlocationisnearkitchen.So
thatifdishesemptyneedsrefillingitwonttaketimeaschevalierskitchenisneartomainhall.Moreoveritwillbeeasierforguests
aswellastheydonthavetowaitlongforfoodanditwilleffectonchevalierssaleasifcustomershappythentheywillcomeback
again.Trafficflowandafoodareessentialtothesuccessofabuffetline.TheRightWaytoSetUpaBuffetTable
*Stackplatesattheheadofthetableandsilverwareandnapkinsattheend.*Allthefoodshouldbeaccessiblefromboth
sidesevenforsmallgroupsandalllidsandcoversshouldbecompletelyremovedonceserving
starts.*Beveragesshouldbeservedonaseparatetablethat'sfarenoughawayfromthemainbuffetsoasnottocausetraffic
congestion.*Dessertshouldalsobeservedseparatelyonitsowntableandshouldnotbeputoutuntilafterthemaincourse.*
Providetongsandladlesinsteadofforksandspoonsforservingwheneverpossible.*Refilloftentomaintainfreshnessandflavor
BenefitsforchevaliersbyBuffetsservice
Themostobviousbenefitofarestaurantbuffetisthatchevaliersfeedalargequantityofpeoplewithminimalamountofstaff.
Thisisgreatforpayroll.Italsoallowsrotatingthefoodintherestaurantkitchenfaster.Itisbeneficialfortheestablishment.Buffet
asspecialpromotionscandrawincustomersonabudgetwhomaynotroutinelydineoutatrestaurant.Andalsoitoffersagreat
waytocutfoodcostsandincreaseprofitmargin.Ithelpstogeneratemoreincome.Layoutofthekitchen
Themainconsiderationisdesigningakitchenisthatthelayoutshouldalloweasycleaningandcontinuousworkflowfrom
receivingrawmaterialthroughpreparationandcookingtofinalpresentation.Equipmentsshouldbemovableorplacedonclean
area.InthekitchenservingfoodandtheremustbeadivisionofpreparationareasForexample
Vegetablesstorageandpreparationshouldbeneartodeliveryasvegetableshavesoilonthemwhichcarriescperfringens
sporesandifthevegetablesarecarriedthroughthekitchendustfromthevegetablesmaysettleoncookedfood.Sectionofraw
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meatpreparationshouldbeseparatedfromcookedfoodpreparationtoavoidcrosscontaminationbecauserawmeatisfrequently
contaminatedwithsalmonella.Ventilation
Adequateventilationinakitchenisveryimportantfortworeasonsfirstlytokeepthetemperatureandhumiditydownandsecond
oneistoremovecookingsmellssteams.Kitchenfloor
Itshouldbemadehardwearing,mats,easilycleanedmaterialwhichwillnotabsorbmoistureandwillnotaffectedbyfoodsuchas
greaseetc.Dcorinteriordesigninrestaurant
Dcorplayveryimportantroleinrestaurantsalesandpopularity.Dcorshouldbeaccordingtolocationandsetparticular
themeondcorlikeflowering,sportsetc.indcorsomanythingsincludedlikeceiling,flooring,furnishingandtheinteriorshouldbe
airconditionerorheatingfacilityaccordingtoseasons.Aswearealreadyobservingthatwithourpresentdcorofchevalierswe
enabletoattractcustomerssothatswhyweneedtochangeourdcorsuchaslighting,aslightshouldbechangedaccordingto
thetimeofday.Alsosameaswithsound/musicvolumeduringdaytimeitshouldbelowvolumeascustomersneedlowvolume
theywantcalmmusicatthattimeinlunchtimecustomerswantloudmusic.Andindinnertheyareforfinediningsotheywant
romanticmusiccollections.Alsowewillputflowersoneachtableacompliedwithcandles.Andalsoweputoutdoortablesfor
thosewhowanttoenjoytheirfoodwithsea.Barsetupinrestaurant
Barshouldbelocatedinonearea,thefoodbuffetandthedinninginanotherarea.Itwillhelporworkeasescongestionand
reducespotentialfoodanddrinkdisasters.Abarplacedatthebackofarestaurantmoreintimateawayfromthehustleandbustle
ofthefrontofthehouse.StockRestaurantBarwiththeRightEquipment
Barsneedtheirownreachincoolers,icebins,hygienesupplies,papertoweldispenser,liquorwells,glassracks,wineracks
anddrystorage.Coolersshouldbebigenoughtoholdbottledbeer,whiteandblushwinesaswellasbackupsofjuice,milkand
otherbeveragesusedtomixdrinks.Arestaurantbaralsoneedsabeertowerandaplacetokeepkegscold.Youmayhavetorun
beerlinesfromthewalkincoolerifyourbardoesnthaveenoughspaceforkegs.Barfloorsshouldbecoveredwithrubberfloor
matsforemployeecomfortandsafety.Barshouldbehandledbybartender.itshouldbecompulsorybarpersonavailableallthe
timeduringrestauranthours.BarSetMoodwithLighting
Lightinginthebarshouldbesubtle.Notsodarkcustomerscantreadthemenubutdefinitelynottoobright.Recessedlighting
andtracklightingwithdimmerswitchesallowcontrollingthelight,adjustingitforthetime
ofday.Signage
Thesignageneedtobereplacewithanewsignboardinadditionwithcontactnumber,nameoftheestablishmentandalsoin
barweneedputbarsignagesrequiredasperlaw.Weneedputsignsforrestroomsandalsoputsignsforwetfloors.Cleaningin
restaurant
Thereisonlyonerubbishbinsoweneedtobuynewbinsandcleaningequipmentsforcleaningpurposes.Iftherestaurant
alwayslooksbeautifulthanpeopleattractfromplaceandcomeagainandagain.(Restaurantmanagementandoperations)
1.2.EvaluatethedifferenceinfluencesaffectingpatternsofdemandwithinhospitalityoperationsPatternsofdemandinrestaurant
Happyhoursforrestaurant
Differentpeoplescomesondifferenthourslikesomepeoplecomeforbreakfasttimeandtheywillneedquickserviceandtheir
demandslikefruitjuices,cerealsandcoldfoods.Andalsosomepeoplecomefordinnerandtheywilldemandhotfoods,more
formalservie.soitisvariespersontopersonaccordingtotheirdemandsrestaurantprovideservice.Itisgoodifrestaurantopens
forwholeweek7daysbecauseitgeneratesmoremoneyandpopularity.Openinghoursasearliertheyopenat7andcloseearly
sothisthinghastobechangedbecausetherewasnocustomeratthattimebutifwechangedtimingthanitsafeotherexpenses
likeelectricity,staffwageetc.openinghoursshouldbeat8to9amandclosinglatetodependonbusiness.Seasonality
Specialpromotionalideasforrestaurantstakeadvantageofonholidaysandotherspecialeventsthathappenthroughoutthe
year.Specialmenusprovideandtakereservationsforbusytimes,likeNewYearsEveandMothersDay.Theinfluenceof
weathertemperatureoneatinganddrinkinghabitschangingbyseasons.Seasonalityoffoodalsowillappealtobudgetconscious
asinseasonfoodisusuallymoreabundantsowillbelowerincost.Restaurantprovideslowcostfoodandwithdiscounts.In
summersthesaleismoreaspeoplewouldliketospendtimeonbeachonotherhandinwintersasits
coldpeoplewouldlikestayawayfrombeachsowehavemakeadifferentmenuforwinterstocustomersandasitsnotgood
businessinwinterstocutcostwecouldjustmakeourmenuslimited.Forwinterswecouldalsoarrangeoutsideheatingandinside
heatingforcustomercomfort.Toachieveourtargetwecouldalsoprovidespecialofferstoattractcustomersduringoffseason.
(SeasonalFactorsAffectingtheRestaurantIndustry)
Socialeatingpatterns
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Thefamilymealwasthefocuspointattheendofthedaywherefamilymembershavebeenawayfromhomeduringtheday
theycametogetherformealtimestodiscussthedaysactivitiesandtomakeplansforthenextday.Whiletimeandconvenience
havehadaneffectonthesocialaspectoffooditstruetosaythatfoodstillbringspeopletogether.Peoplesmeetuponparticular
occasions,weddingparties,ceremonyandonfestivals.Peopleenjoypartiesaswellasfood.(Foodhabitsandsocialchange,
2008)
Foodandfashiontrends
Thehospitalityindustryischangingrapidlybecausecustomersarechangingandtechnologyischangingandmarketsare
changing.Likefashion,restaurantoperationshavetrendsandfashionsthatretreatandflowwithtimerecalltherollerskating
waitressesatdriveindinersduringthe1950s.Listedbelowaresomepopularrestauranttrendsthatarentlikelytodisappearfora
whileyet.Therenumbersoftrendsinrestaurantforcustomersandtopromotetheirrestaurant.Toattractcustomerssomeofthe
maintrendsarefollowing:1)Offeringdiscountsandcoupons
Offeringdiscountsandcouponstoregularcustomersorduringoccasionslikefestivals,newyearetc.Nowdayspeoplelove
tobargainanditisgoodifrestaurantgivediscountsandcouponstocustomers.Restaurantsprovidedifferenttypesoffoods
accordingtocustomerneedsandalsoprovideoptionsinmenuslikefoodplusdrinkfreeitwillmakemoremoneyandpopularityin
particularregions.2)Publichealthconcerns
Nowdayspeopleareveryconcernabouttheirhealthsandrestaurantsarebeingpressuredtocreatehealthiermealswith
smallerportions.Restaurant
needtocareaboutcustomersandprovidenutritiousfoodwithcleanliness.Differentpeoplehavedifferenthealthproblemsso
accordingtheirdemandsorneedsrestaurantprovidefood.Restaurantsalsoprovidechildrensmenuwithhealthierfood.Inkids
menutheyprovidesaladsandfruitswithuniquepresentationsokidseasilyattractfromfood.Forexample:Americansare
overweightandplaguedbychronicdiseasesuchasdiabetes.Inresponsetopublicdemandrestaurantsprovidesmallerportions
sizesandhealthierfoodoptionsontheirregularmenu.
3)Socialmediaforrestaurant
Therearenumbersofsocialsitesforexamplefacebookandtwitterforrestaurantmarketandfoodintroductionwiththeir
benefits.Itisformarketingandadvertisingtogrowuprestaurantbusiness.Manypeopleinterestedininternetsotheyalways
checkwheretoeat?Whichisbestplacetoeat?Ininternetpeoplecanfindrestaurantnamesandcontactdetailsalsomenu
availableonrestaurantwebsite.Customersordersonlineoronphonecallandwillgethomedeliveriesfromrestaurant.Facebook
andtwitterisamediumtopromotespecialsandeventsanditwillreallywork.Regionalandethnicinfluence
Inthisworldtherearesodifferentcountriesandpeoplesandtheyhavetheirtraditionsregardingfood.Differentpeoplehave
differentneedsforexamplepeoplefromIndiaalwayspreferIndianfood,ChinesepeoplepreferChinesefood.Pricingandeconomic
factorspricingwillbesetaccordingtotimeofyearMarketconditions,climateandchangesingovernmentlegislationallhavean
effectonfoodcosts.Thechoicesmadeinsourcingfood,preparingorbuyingreadymadefoodwillalwaysinfluencedbyprice.Food
needstobewithinapersonalbudget.Anditchangesbytheseasonwillbechanged.Elasticityofdemand
Elasticityofdemandisthesensitivityofthesalesvolumetochangesinprice.Demandfluctuatesinresponsetofactorssuch
asachangeinpricing,foodqualityortheenvironmentforexamplerefurbishment.(http://www.ehow.com)
1.3Comparecustomerprofilesandtheirdifferingexpectationsandrequirementsinrespectofhospitalityprovision.Achieving
highlevelsofsatisfactionatarestaurantthroughgoodcustomerservice,qualityfoodandmakingdinersfeelvaluedisimportant
becausesatisfiedcustomersaremorelikelytoreturn.Onaverageasatisfiedcustomerwilltelltwotothreepeopleaboutgoodfood
andservicewhereasanunhappyonewilltellfivetotenpeopleshowdissatisfiedhewas.Customersatisfactionorexpectation
surveysareanimportanttoolthatwillaidyouinreachingyourhighcustomersatisfactiongoals.Therearenumbersofrestaurants
accordingtodifferentcustomerslikefamilyrestaurant,couplesrestaurantslikevalentines.(Customerexpectationanddelight)
Familyrestaurants
FamilyRestaurantisthatdesignedtoaccommodateallages,largegroups,loudpartiesandwhosemenureflectsfamilystyle
dining,childportionsandperhapsevenreasonableprices.Accordingtotheneedsoffamilythefamilyrestaurantdesigned.For
example:elderpeopleinfamilydemandlessspicyfood,lowernoiselevelandformalserviceValentinerestaurants
Valentinerestaurantisdesignedforyoungpeopleswhodemandromanticplacesandsilenceandthewholerestaurantdecorated
withdimlightsandlightmusic.Customerprofilesinrestaurant
Customerprofilesalsohelpyoudeveloptargetedmarketingplansandhelpyouensureyourproductsandservicesmeetthe
needsofyourintendedaudience.TherearetwobasictypesofcustomerprofilesDemographicprofiles
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Demographicsprofilesarebasedoncharacteristicslikeage,gender,incomelevels,maritalstatus,placeofresidence,etc.In
marketingtermsdemographicprofilestendtobreakdowncustomersintoage,socialclass,andgender.Forexample:younger
buyersmaymakebuyingdecisionsbasedonhowtheyfeelthepurchasewillcausethemtobeperceivedandolderbuyersmay
focusonqualityorsafety.Wealthycustomersmaybewillingtopayabestforserviceorforaperceivedvaluewhilelowerincome
customersmaybemorelikelytofocusonprice.Itsalldependonpersonstatusifthereisarichpersonbuysomethingthansurely
hewillpaymorewithoutthinking
anythingbutotherlowerclasspersonfirstseethepriceandthendecide.Behaviorprofiles
Behaviorprofilesfocusonactionsandfocusontypesofitemswerepurchasedhowfrequentlyitemsarepurchasedandthe
averagetransactionvalueorwhichitemswerepurchasedinconjunctionwithotheritems.(Customerprofiles)
Typesofcustomers
1)LoyalCustomers
Naturallyweneedtobecommunicatingwiththosecustomerswhoonaregularbasisbytelephone,mail,emailetc.These
peoplearetheoneswhocanandshouldinfluenceourbuyingandmerchandisingdecisions.NothingwillmakeaLoyalCustomer
feelbetterthansolicitingtheirinputandshowingthemhowmuchyouvalueit.Inmymindyoucanneverdoenoughforthem.
Customerrecommendstoothersandasaresultbusinessgrowthinclined.2)DiscountCustomers
Thiscategoryhelpsensureinventoryisturningoverandasaresultitisakeycontributortocashflow.Thissamegroup
howevercanoftenwindupcostingrestaurantmoneybecausetheyaremoreinclinedtoreturnproduct.3)ImpulseCustomers
Clearlythisisthesegmentofourclientelethatweallliketoserve.ThereisnothingmoreexcitingthanassistinganImpulse
shopperandhavingthemrespondfavorablytoourrecommendations.Wewanttotargetourdisplaystowardsthisgroupbecause
theywillprovideuswithasignificantamountofcustomerinsightandknowledge.4)NeedBasedCustomers
Peopleinthiscategoryaredrivenbyaspecificneed.Whentheyenterthestoreandtheywilllooktoseeiftheycanhavethat
needfilledquickly.Ifnottheywillleaverightaway.Theybuyforavarietyofreasonssuchasaspecificoccasionandaspecific
needoranabsolutepricepoint.AsdifficultasitcanbetosatisfythesekindofpeoplesandtheycanalsobecomeLoyalCustomers
iftheyarewelltakencareof.Salespeoplemaynot
findthemtobealotoffuntoservebutintheendtheycanoftenrepresentyourgreatestsourceoflongtermgrowth.5)Wandering
Customers
Formanystoresandrestaurantsthisisthelargestsegmentintermsoftrafficwhileatthesametimetheymakeupthe
smallestpercentageofsales.mostlykindofpeopleattractfromthelocationoftherestaurant.Keepinmindhoweverthatalthough
theymaynotrepresentalargepercentageofimmediatesalesandtheyarearealvoiceforrestaurantbusinessinthecommunity.
ManyWanderersshopmerelyfortheinteractionandexperienceitprovidesthem.Shoppingisnodifferenttothemthanitisfor
anotherpersontogotothegymonaregularbasis.Sincetheyaremerelylookingforinteractionandtheyarealsoverylikelyto
communicatetootherstheexperiencetheyhadinthestore.ThereforealthoughWanderingCustomerscannotbeignored,thetime
spentwiththemneedstobeminimized.Pricingconsiderationexpectations
Pricesplaymainroleinbusinessbecauseinrestaurantdifferenttypesofcustomerscomesomearefromrichfamiliesand
somefrommediumclass.Forexample:richcustomerspendslotsofmoneyonfoodbutthemiddleclasscustomerthinkswhatto
eatandtheylookonprice?AndAlwaysfindreasonablepricessothethingisthisifrestaurantdesigntheirmenuaccordingtothe
customerspendingpowerthanitwillgoodforbothbusinessandcustomer.Pricesshouldimplementaccordingtothetargetmarket
thanbusinessgrowup.Customerneedthefoodpricesarereasonableaccordingtotheirspendingpowerdifferentoptionsprovided
tocustomersinfoodsocustomerwillbehappyandsatisfied.1.4factorsaffectingaveragespendingpowerinhospitalitybusiness.
Typesofhospitalityoutlets,menurange,pricingconsiderationFirstlythetypeofmenuofferedbyanestablishmentandthevariety
ofmenuchoiceshouldalsoenhancethetotalmealexperience.Foralowerlevelmarketfirstpriceoffood.Ifthecustomerispaying
$50forthreecoursemealtherangeofmenuitemsthatcanbemadeavailablewithinthecostlimitsofsuchanoperationis
obviouslymorelimitedthaninoperationswherethecustomersaveragespendingpowerishigher.Secondly,theamountoftime
takentoconsumemealsatthislevelofthemarketmayvarybetweenhalfanhourtoonehourbutwillrarelyexceed
this.
Themenuchoiceofferedbyarestaurantisthereforedependentonanumberofinterrelatedfactorslike*Pricethecustomeris
willingtopay
*Theamountoftimeavailableforthemealexperience
*Thelevelofthemarketinwhichrestaurantsituated
*Theproductionandservicefacilities
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*Skillsandstaff
Expectationsandrequirements
Asinglecustomerorgroupofcustomersarrivingatarestaurantforamealbringwiththemaseriesofexpectationsregarding
thatrestaurantandthetypeofservicetheywillreceiveandthepricetheywillpay,theexpectedgoodatmosphereandmoodofthe
restaurantetc.Thecustomerexpectationmaybevariedandnumerous,rangingfromtherestaurantwhichthecustomerfrequents
becausetheywanttobeseenthereandparticipateinitssocialatmosphere,tothesmallquietrestaurantwherethecustomermay
gobecauseofitsintimateandpersonalnature.Ifcustomerssensedisharmony,howeverbetweentheirexpectationofthe
restaurantandtheactualproducttheyfindforexample,itistoointimatefortheoccasionandtheymaynotentertherestaurantbut
chooseanother.Ifdisharmonyisnotrealizeduntilcustomersareseatedatthetableanditisunlikelythattheywillleavebutwill
haveahurriedanduncomfortablemeal.Levelofservice
Thehigherthecostofthemealtothecustomerandthemoreservicethecustomerexpectstoreceive.Thecostofthemealto
customersincreasessowilltheamountofservicetheyreceive.Itisnecessaryforarestauranttoidentifythelevelofservice.ifa
restauranthasaveryformaltypeoffoodandbeverageserviceusuallyassociatedwithhighclassoperations,theotheraspectsof
therestaurantserviceshouldbeequallyformalthespeed,efficiencyanddressofstaff,thedegreeofpersonalizationandcourtesy
thecustomersreceives,andsoon.Itisimportantforarestaurantoperationtoconsidernotonlytheserviceofthefoodand
beverageforwhichthestaffsareusuallyadequatelytrained,butalsotoremembertheindirectserviceaspectoftheoperation
whichareallpartofthecustomersmealexperience.
Themealexperience
Eatanddrinkexperience
Themealexperiencemaybedefinedasaseriesofeventsbothtangibleandintangiblethatacustomerexperienceswhen
eatingout.Tangiblewhichcanbefeelingbytouching,seeinglikerestauranttables,chairsetc.Intangiblewhichcanbeonly
sensed/feltlikerestaurantatmosphereetc.Itisdifficulttodefineexactlywhereamealanddrinkexperienceactuallystartsand
endsalthoughitisusuallyassumedthatthemainpartoftheexperiencebeginswhenacustomerentersarestaurantandends
whenheleavestherestaurant.Theseriesofeventsandexperiencescustomersundergowheneatingoutmaybedividedinto
thosetangibleaspectsoftheproductthatisthefoodanddrinkandthoseintangibleaspectssuchasservice,atmosphere,mood,
etc.Soitisnecessaryforthetangibleandintangiblecomponentsoftherestauranttocombinetogetherandtobeseenbythe
customerasonetotalproductThemenuisthecenterpieceofanyrestaurantestablishment.itisnotafoodlistitemsforsalebutthe
reasonbehindtheestablishmentexistManagementissues
Staffing
1)Floormanagementinstaffing
Itincludesfloormanagingstaffandtheyprovidesservicetoguestsorcustomersinrestaurant.Staffallocatesondifferentjobs
fromopeninghourstoclosinghours.Managerisresponsiblefortheirstaffandallsafetyandhealthregulations.Mangermotivates
allotherstaffinfrontofficeandtakecareallareas.Manageralsoprovidestrainingfortheirstafftomakemoreprofitfromtheir
servingskills.2)KitchenManagement
Inkitchenmanagement,kitchenstaffworkinginthekitchenonly.Therearedifferentrolesinkitchenmanagementlikechef,
headchef,dishwasherandkitchenhand.Kitchenistheplacefoodpreparedandservedfoodtocustomers.Managingthekitchen
staffhelpstocontrolfoodquality.Kitchenisplacewherestaffgetstiredbecauseitneverstopsintradinghours.Kitchen
managementisresponsibleforfoodcost,budgetingandprofits
Organization(administration)inrestaurant
Allstockcontrolling,budgeting,laborcost,balancingcost,schedulingrotations,profitsaccordingtoseasonality,surveysand
hiringstaffwithmaintainceofthekitchenequipments.Marketing
Managementwilldecideaboutmarketstrategies.Marketingisasourcetoattractcustomersandsatisfiedcurrentcustomers.
Withthetargetmarketexpandingnewproductsandservices.Therearenumbersofwaytopromoterestaurantlikemedia,
commentcards,emailsandsocialsites.Marketingplanswillbedesignedfortoincreasecustomervisit,increaseaveragechecks
andsendprofitsskyhighfrominsidestooutsidestherestaurant,themarketingplanistheroadmaptoachievesspecificsales
objectives.itincludestv,radiobillboardsorlocalizedneighborhoodprogram.Inchevalierswewillimplementsetupfrequency
dinningprogramsanddatabaseprogramsthatinstantlytellwhoiscustomerinrestaurant,theirbirthdays,andanniversariesand
wheretheyliveFinance
Moneyplaysveryimportantroleinanybusiness.Anditisalsoimportanttoknowhowtomanagefinance.Management
alwaysreadytomanageallsituationslikewhenseasonofftherestaurantsalesautomaticallydownandmanagementknowshow
tohandlethatparticularsituation.ManagingdaybydayexpensesinrestaurantbusinessandPOSsystemhelpstomanageall
salesandinventory.Controlsystems
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Abigemphasisisbeingplacedonextensiveresearchintothequalityandintegrityofrestaurantproducts.Restaurant
managementwillconstantlytestedforhighstandardsoffreshnessandpurity.Foodcostsandinventorycontrolwillbehandledby
computersystemandcheckeddailybymanagement.Servicestandards
Therearedifferenttypesofservicesprovidedinrestaurantslikebuffetservice,silverservice,tableserviceandtrayservice.
Astheservicelevelincreasesthelabourcostsincreasesbecauseoftheincreasedskilllevelandthequantityandqualityof
equipmentincreases.Ahigherstandardofcustomerservicerequiresahigherstandardofdcor,foodquality,
equipmentandstaff.Morefacilitiescostmore.Thedeliveryofaconsistentlyhighstandardofservicerequiresahigherproportion
ofproduct,staffandequipment.Qualitysystems
Thequalityofserviceisanotherfactorthatcontributestorestaurantcustomersatisfaction.Thisisaparticularlyimportant
factortofullservicerestaurantsbecausetheyaretypicallymoreexpensiveandslowerthanquickservicerestaurants.Many
factorsgointotheoverallqualityofserviceatarestaurantsuchashowpositivelycustomersfeelabouteachmemberofthe
restaurantstafftheyinteractwith.Somecustomersmaybemoreconcernedwiththesocialinteractionswiththewaitstaff,while
othercustomersaremorefocusedonhowquicklydishesareremovedandglassesarerefilled.Therelativeimportanceofthese
differentfactorsoftendependsonthestyleofrestaurantandtheoutlookofaparticularcustomer.Teamworking
Allmembersofateammustfeelempoweredtoworktowardsquality.Thismeansifawaitressdoesnotfeelthatamealisup
tostandardthatshehastherighttorefusetotakethedishtothecustomer.Staffshouldbeencouragedtosharetheirideasabout
howtoimprovethequalityoftheorganizationoftenastheyaretheonesdealingdirectlywiththecustomerstheyhavemoreuseful
ideasthanmanagement.Training
Managementwilltrainemployeesinfoodservicesanitation.Eachemployeeshallbetrainedinfoodservicesanitationquarterly.
Lo2understandproductdevelopmentwithinahospitalityenvironment2.1evaluatethekeystagesinproductandservice
developmentappliedwithinhospitalityoperationsSpecialpricing
Marketsegmentation(identifydemandofthemarket)
Marketsegmentationisoneofthestepsthatgointodefiningandtargetingparticularmarkets.Itistheprocessofdividinga
marketintoadistinctgroupofbuyersthatrequiredifferentproductsormarketingmixesittargetsspecialtymarketsthatwill
promoteproductsandservicesmoreeffectivelythanabusinessaimingaveragecustomer.Itiseasiestwayof
marketingingroupsandithelpstogetknowledgeaboutcustomersneedsandwants.Marketissegmentedindifferentgroupsof
consumers.Forexample:
*Behaviorbaseslikeproductknowledge,usage,responsesandattitudesofcustomers*Demographicbasislikeage,
occupation,ageandfamilysize*Psychographicbaseslikelifestyles,valuesandpersonality*Geographicbaseslikestates,
regionsandcountries
Marketsegmentationisimportantforbusinessandfordevelopment.Wedobecausewewanttoknowaboutcustomerthinking
aboutfoodandbeverages.Accordingtocustomersneedsandwantsrestaurantestablishmentdeveloped.Designtheproduct
Menuplaysveryimportantinrestaurantbusinessandestablishmentdesignstheirmenucanincreasesales,turnoverand
ensurethemenuremainsbalancedintermsofsalesmixandpopularity.Themenucandesignedinsuchwaystoseduceand
convincethedinerstochooseaspecificmenuitembythewordingandhowthedishdescribed.Finedinningrestaurantprovide
menuwithlesswording,namingexoticingredients.Restaurantshouldclearexplanationaboutcustomerperceptionsandaccording
tofamilyrestaurantenvironmentshouldbeattractiveforkidsandkeepinmindthevalueofmoney.
Themeoftherestaurant
Themeforrestaurantisverypopularanditeffectonrestaurantsalesanddevelopment.Therearenumbersofthemesfor
restaurantlikeflowerdecorations,sports,heritageandcolorfulthemes.Itincreasesthesaleofrestaurant.Themedescribesthe
restaurantandcustomersattractfromtheme.Arestaurantthemeisablendoffood,atmosphereandservice.Restauranttheme
decidesaccordingtolocationandlocalcompetition.Themewilldecideaccordingtocustomers.Needtosurveyofthatplacewhere
yourrestaurantsituatedandthendeciderestauranttheme.Forexample:ifyourcustomersarefamilieswithyoungerchildrenyou
dontneedtobeopenuntilmidnightorhaveafullservicesportsbar.Advertising
Restaurantadvertisingcomesinmanyforms.Radiospotsnewspaperads,TV
commercialsevencouponsareallwaystoadvertisearestaurant.WecanhireaPRagencytohelpyougetyourmessageoutor
youcandoityourself.Advertisingisnotaonesizefitsalldeal.Advertisingplansvaryfromyeartoyear,seasontoseason.Like
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wehaveabusysummerseasonandlessbusinessinthewinterandwewillneedtwodecisivelydifferentadvertisingplans.While
advertisingwecanshowdiscounts/couponsandspecialoffersforcustomerssoitcandevelopbrandimageintheeyesof
customers.Customerswilldefinitelythinkaboutrestaurantanddefinitelyplantogothatparticularrestaurant.Websitesisanother
optionwhereweputnewoffersandmenusforcustomers.Customerswilldirectlyorderfrominternet.Ithelpstogenerateincome
fromcustomers.Foodandbeverageplanning
*Thewidevarietyandchoicesinfandb
*TheprocesshastocomplywiththeHACCPpolicy
*Thefastturnoverofsomefoodlikeitemsdeliveredfreshinthemorningmaybepreparedandservedtothecustomerat
lunchtimeandtherevenuesavedbyafternoon.*Theproductcannotbestoredforanylengthoftime
*Differenttypesofcustomershandledinsameestablishment
Foodcontrolpoints
Therearesomecommonfeaturesarefoundinfoodproductionprocessesinallfoodandbeverageoperations.Productgoes
throughtheproductionprocess.Itfirstentersintheestablishmentwithrawmaterialorpreservedproductandthenstoredinstore
area.Processingofthisproductmustthentakeplacepreparationoffoodandcookingfood.Aftertheproductreadyitwillpresented
inplatesandservetocustomers.Foodcontrolprocess
Typesoffood
|
|Refrigerate
|Freeze
|Frozen
Slicing
|Frying
|Preparation
|cutting
|Microwave
Buffet
|Storage
|boiling
|Trolly
|peeling
|Sousvide
|Filet/blendandmix
|cooking
|Chill
|Canned
|wrapping
|Steamer
|Freeze
|Microwave
|
|Holding
|Cold
|
|Plates
|Weight
|Oven
|
|regeneration
|Fresh
|Baking
|trays
|Measure
|Presentingandservefood
|
|Preserved
|Boilroast
|chopping
|Hot
|
|grill
|Traditional
|Drystore
|
|
|
Employerssatisfaction
Employeesoforganizationplayveryimportantroleinhospitalityindustry.Restaurantdevelopmentdependsonemployees
satisfaction.Therearenumbersofthingstakepartinemployeessatisfactionthatisjobsecurity,providingpayattime,
opportunitiestouseskillsandabilities,feelingsafeintheworkingenvironmentsandalsowithgoodcommunication.Moreoverthe
employeesrelationshipwiththeircoworkersorsupervisorandmanagementrecognitionofemployeejobperformance.Ifthe
employeenotsatisfiedwiththeirjobthenhowcanhe/sheworkproperlysoitisveryimportantthatanemployeesatisfiedfromtheir
job.
Riskmanagement
Whileworkinginrestauranttherearenumbersofriskinvolvedbutrestaurantownerandmanagerfacethatrisks.Inrestaurant
shouldbeprovideasafeworkingenvironmentaswellaspreparefortheunforeseeableaccidents,damagesoranydisasterthat
mightimpactrestaurantbuilding.Restaurantneedtrainedtheirstafftohandlethiskindofsituation.Safetyproceduresimplement
intodailyprocedures.Restaurantawareandinsuringaboutlawsuitsoranykindofdamagetobusiness.Protectingrestaurantfrom
fire
Protectingrestaurantfromcrime
Protectingstaffandcustomersfromaccidents
Understandinglegislationthateffectsonbusinesslikefoodhygiene,employers,liability,healthandsafetyinrestaurantsareall
relevantwhenanyonerunningbusinessTherearesomeactsthatimplementwhensomethinghappenlikethisThefireact
Everybuildinghavefireserviceact,fireevacuationprocedureshouldbeinplace.Fireequipmentsmustbeinplaceandserviced
regularly.Thefoodhygieneact1974
Itisforhealthofeachcustomeranditimpliesonrestaurant.Everyrestaurantshouldbeneatandclean.Storageareashould
beclean.Food
hygieneregulation1974actsaysthatregulationsaresafestorageandalsothereshouldbesafepreparation.
2.2analysesthefeatureswhichcontributetowardsthecustomersperceptionofproductsandservicesWheneveraguest
entersarestaurantorhotelorafoodandbeveragesectionofanyplace,he/sheexpectssomethingmorethanjustwhatisserved.
Theexpectedthingsincludequality,timelinessaswellascosteffectivenesshoweverwhatifyoucangivetheguestmorethan
whathe/shehasexpectedFoodhygieneinrestaurant
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Goodfoodhygieneinrestaurantisofvitalimportanceforthepleasureofcustomersandthecontinuedsuccessofrestaurant
business.Customeralsoexpectswheretheyeattheplaceshouldbeneatandcleanandkitchenshouldbecleanwhilepreparing
foodsothereisnoharmtohealth.Whyfoodhygieneisimportant?
Everydaypeoplegetillfromthefoodtheyeat.Microorganismsincludingbacteria,virusesandmouldsfoundinfoodcan
causefoodpoisoning,leadingtoawholehostofunpleasantsymptoms,suchasstomachpains,diarrhoeaandvomiting.Itisfor
customersgoodhealthifthereisnofoodhygienecustomerunhappyandtheywillblameonrestaurantsohygieneisvery
important.Restaurantcleanlinessattractscustomersandithelpstoincreasemorecustomers.Typeofgreetingandwelcoming
Greetingandwelcomingisthefirstimpressionsowhencustomerentersintherestauranthostresponsibilitytohandle
customerswithsmile,eyecontactandwelcoming.Politelyspeakwithcustomerandoffersomethingwaterfirstthanprovidemenu
ortellthemtodaysspecialmenuormenuofthedaywithspecialoffersetc.Physicalappearancematters
Guestsexpecttobeservedbyagoodlookingandwelldressedstaff.Staffcannotbeuntidywilltheirface,hairorclothes.The
guestsshouldnotfeelthattherestaurantmanagementistooharshonthestaffintermsofsalariesordutysuchthattheycannot
affordaproperuniform.Thiscreatesawrongimpression.Servethefoodinwarm,wellwasheddishes/containers
andallplates,bowlsusedshouldbewellwashedandcleaned.Increaseknowledgeabouttheproduct:Theguestscouldhavea
queryaboutthefoodandbeveragetheyareconsumingorareabouttoorder.Theservicestaffshouldbewellequippedwiththe
knowledgeoftheproductsoastohelptheguestsmakeadecision.Speedofserviceandtheirtypes
Speedofserviceaccordingcustomerslikeyoungpeoplewantveryformalserviceandoldpeoplelikequickserviceandon
time.Serviceisveryimportantpartofanyrestaurant.Restaurantdependsonthebestservice.Iftheservicedoesnotmeetthe
customersexpectationsandcustomerfelttheserviceverygoodthentheydefiantlycomebacktorestaurant.Customerservice
coversmanydifferentpartsofrestaurantsdaytodayoperationsandgoingfarbeyondthefrontofthestaff.Inchevaliersthereisno
properserviceprovidetocustomerssotheywillnotcomeagainbecauseofpoorservice.Ambience(goodenvironment)
*GoodEnvironment
*Clean
*Organized
*Safe
*Lowpressure
*Energylevelappropriatetoclientele
*Decoration
Brandloyalty
Brandloyaltyknownasreputationoftherestaurantanditisveryimportantthatrestauranthavegoodreputationinmarket.
Brandloyaltyisdependingontheirserviceandgoodqualityoffood.Customerswanttofeelimportant
Theyknowthatrestauranthavelotsofothercustomersandclientsbuttheyjustloveitwhenstaffmakesthemfeelspecial.
Flexibility
CustomershatetohearthewordNooritcannotbedone.Itsnotalwayspossibletosayyestoacustomerordoexactlywhat
theywanthoweveritisimportanttobeasflexibleasyoucan.Staffneedstomotivateandconvincecustomertotakeanothermeal
orservice.
Ifsomeonetoknowtheirname(namesofcustomers)
Acustomernameisoneofthesweetestsoundstheywilleverhear.Ifyouuseacustomersnamewhenyoutalktothemit
indicatesthatyourecognizethemasanindividual.Don'tuseittoooftenasitcanbecomeirritating,butdefinitelyatthestartandthe
endofaconversation.2.3assesstheopportunitiesandconstraintsaffectingproductandservicedevelopmentwithinahospitality
environmentFoodandnutrition
Dietaryrequirements
Proteinsarerequiredthroughoutlifetocreate,maintainandrenewhumanbody.Theamountofproteinsrequiredchangeswith
age,duringgrowthperiodsanddependingonhealthofhumanbody.Nowdayspeopleareveryhealthconscioussoaccordingto
theirneedsrestaurantprovidefoodoftheirchoicesForexample:restaurantsprovidesspecialkidsmenuage2to12andtheseare
foodsthatkidstendtolikeandwhichmeetkidsdietaryrequirementslikefruits.ForStrictvegetarianRestaurantsdonotmixany
animalproductslikebeef,chicken,fish,eggsandtheyprovidepurevegetarianfoodtocustomers.Theyprovidedifferentkindsof
salads,othervegedishes.Regulationsactsinimplementonrestaurantandemployerliabilitytowardsthecustomersareasfollows
(classwork)Healthandsafetyact
Therearelawsandsystemsthathavebeenestablishedtohelpensurethatthefoodservedinrestaurantsissafe.Bacteria
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growveryeasilyifgiventhechance.ThelocalHealthDepartmentwillsendoutinspectorstomakesurethatthechefsandservers
arefollowingtheproperguidelines.Inspectorswillissuefinesforminorviolationsandcanshutyoudownformajorviolations.This
actstatesthattherelationofguestandstaffprotectedfromhealthissues.Duringworktheenvironmentshouldbeneatandclean.
Peopleshouldworkincleanenvironmentandmakefoodincleanplace.Inrestauranttheycanusecleanandrightequipmentsand
cutlery.
Employmentact1992
Thehealthandsafetyinemploymentact1992statesthattopreventharmto
thealltheemployeewhoallareworkinginthepremisesandforotherpersonwhoisintheneighborhoodofworkshouldalsobe
protectedmoreoverthecustomerwhoallcometodineinthepremisesshouldalsobetakencareoff.Restaurantstaffnever
providedfoodwhichcanharmfulforguestandtheyshouldpreventthemfromfood.Theyneedtocheckexpirydatesandfood
storageinrighttemperatureandthereshouldbesystemwhichfollowedbybusinessfromfooddeliveriesintherestaurantontime.
Italsoincludeproperreceiving,storage,preparation,cookingandservingfood.Stafftrainingshouldbecompulsorybecauseof
theirknowledge.Restaurantshouldpreventcustomersfromhazards.TheprivacyactAccordingtothePrivacyactstatesthat
individualprivacythereforeispersonaldetailsoftheguestshouldnottobedisclosedtoanyoneatanypointoftime.Customer
privacyactimpliesinrestaurantoperations.Noonecandiscloseanyinformationaboutcustomers.HumanrightsactAccordingto
theHumanrightsact1993saysthatnobodycandiscriminateanyoneonthebasisofRace,color,ethnicorigin,disability,gender,
maritalstatus,age,religion,politicalopinion,employmentstatus,sexualorientation.TradingactShoptradingrepealact1990
definesaboutthehoursofopeningthebusinesswhichalsohelpthecustomertobeawareabouttheirpurchasingtime.2.4
evaluatedifferentmerchandisingopportunitiesforhospitalityproductsandservicesAcombinationoflocalmediaandlocalstore
marketingprogramswillbeutilizedateachlocation.Localstoremarketingismosteffective,followedbyradio,thenprint.Assoon
asaconcentrationofstoresisestablishedinamarketthenbroadermediawillbeexplored.Advertisingisbestformtopromote
restaurant.Byprovidinganentertainingenvironmentwithunbeatablequalityatanunbelievablepriceinacleanandfriendly
restaurantthanitautomaticallyincreasessales.TherearesomemethodsofadvertisingsuchasTV,radiocommercialsand
newspaperadscanbeveryexpensive.Ifanypersonreadytoopenanewrestaurantorpromoteexistingrestaurantandtheydont
haveaverybigadvertisingbudgetthantherearestillseveralwaystopromoterestaurantevenonalowbudget.Restaurant
Website
Oneofthemostpowerfultoolsarestauranttheirownwebsites.MoreandmorepeopleareturningtotheWorldWideWebfor
informationratherthantheyellowpages.Maintainingawebsiteiscrucialforanybusinesstoday.Itis
simplestwaytoattractcustomerandgetsalesprofit.Peoplesellproductsdirectlytoconsumersanditshouldgivethebasic
informationofrestaurantandabouthours,telephonenumber,directionsandacopyofmenu.Restaurantalsoadvertiseson
websitecustomerpromotionsonweeklypromotionssuchasanearlybirdmenuorhappyhourdetails..Oneofthebestwaystoget
businessthroughrestaurantwebsiteislinkingwithotherbusinessessuchaslocalhotels,thechamberofcommerceandlocal
touristinformationsites.MenuFlyers
Creatingamenuflyeroratakeoutmenuisanotherwaytogetthewordoutaboutrestaurantwithoutbreakingthebank.Place
theseflyersatlocalhotels,chambersofcommerceandtolocalbusinesses.Menuflyersplacedonpopulartouristdestinationsas
wellsuchskimountains,parksorwhateverplaceintheareathatdrawsacrowd.Onflyersmenuwearenotabletoputwhole
menusoitisokifwepostsomepopulardishesandincludinghoursandanyspecialpromotionslikehappyhours,directionand
contactnumber.Newspapers
Newspaperadvertisementisverycheapestwaytopromoterestaurantbecauseifwedonthaveenoughmoneytopromoteon
highlevel,likebiggeradvertisementsthanweadvertiserestaurantonnewspaperwithinlessamount.MenuInserts
Menuinsertsareagreatwaytoadvertisenewpromotionsorservicestoexistingcustomerbase.Forexampleifthereisa
introducinganewpromotionsuchasawinetastingdinneronthefirstFridayofeachmonth,wecanplaceaninsertadvertisethat
isinregularmenu.Themenights
Themenightslikeparticularthemeonthedaywhicharenotpreparinginrestaurantbeforebutnowrestaurantdecidetocreate
Frenchmenuwithfloweringthemeandbeautifuldecorationwithcandles.AccordingtocustomerinterestifsomeonelikeFrench
foodorfloweringthemethantheywilldefinitelycometorestaurant.Customerlikefunlovingnights.Itincreasesthereinterestto
comeagainandagain.
WhentoSpendMoreonAdvertising?
Restaurantsshouldplantoincreasetheiradvertisingbudgetsduringtheholidayseason.InOctoberorearlyNovember,runa
newspaperadremindingthepublictobooktheirholidaypartiesandordertheirpartyplatters.Iftheplacewhererestaurantlocated
touristdestinationthenitisagoodideatoplaceanadinthelocalpaperandortouristpaperpriortothebusyseasonMayforthe
summermonths,Novemberforthewintermonths.Manychambersofcommerceorlocaltourismassociationswillpublisha
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newspapergearedspecificallytowardtourists.Ithighlightsallthesightsandactivitiesofanarea.Advertisingiskeytogainingnew
businessforyourrestaurant.However,youdonthavetospendafortunetoattractnewbusiness,whenyouthinkoutsideofthe
traditionaladvertisingbox.Lo3understandpricingandprofitabilityconceptswithinhospitalityoperations3.1evaluatedifferent
methodsofpricingtakingintoaccountadditionalpricingconsiderationsItisallaboutproductandhowmuchtochargeforproduct
orservice.Therenumbersofstrategiestoovercomeprobleminmanageproductpriceormenuprice.TherearesomePricing
strategiestosetthepriceofproductandservicelikecost,positioningandmaximizingquantity.Correctpricingisveryimportantin
restaurantbusinessoranyotherbusiness.Therearefourmethodstocalculatethepricing.Someofthepricingmethodsare
following:Methodsofpricing
1)Costpluspricing
Costpluspricingisthesimplestpricingmethod.Thefirmcalculatesthecostofproducingtheproductandaddsona
percentage(profit)tothatpricetogivethesellingprice.Thismethodalthoughsimplehastwoflawsittakesnoaccountofdemand
andthereisnowayofdeterminingifpotentialcustomerswillpurchasetheproductatthecalculatedprice.Setthepriceatyour
productioncost,includingbothcostofgoodsandfixedcostsatyourcurrentvolume,plusacertainprofitmargin.Forexample,
widgetscost$20inrawmaterialsandproductioncostsandatcurrentsalesvolumeoranticipatedinitialsalesvolumeandfixed
costscometo$30perunit.Totalcostis$50perunit.Thendecidethatwanttooperateata20%markup,soadd$10(20%x$50)
tothecostandcomeupwithapriceof$60perunit.Solongasyouhavecostscalculatedcorrectlyandhaveaccurately
predictedyoursalesvolumeanditwillalwaysbeoperatingataprofit.2)Psychologicalpricing
Hittingpricepointsthataresignificantforexamplepricingitemsat$14.99insteadof$15customerperceivethemasbeing
bettervalue.Itiseasywaytoattractcustomersandmakemoremoneyfromthisstrategy.Andalsocoverspricingitemstoolowon
amenuincomparisontootherdishes3)Breakevenpricing
Itmaydefineasthatvolumeofbusinessatwhichtotalcostsareequaltosalesandwhereneitherprofitnorlossismade.Total
salesandtotalexpensesareequalandthereisneitherlossnorprofit.4)Popularpricepoints
Therearecertainpricespoints(specificprices)atwhichpeoplebecomemuchmorewillingtobuyacertaintypeofproduct.
Forexampleunder$100isapopularpricepoint.Enoughunder$20tobeunder$20withsalestaxisanotherpopularpricepoint,
becauseit'sonebillthatpeoplecommonlycarry.Mealsunder$5arestillapopularpricepoint,asareentreeorsnackitemsunder
$1noticehowmanyfastfoodplaceshavea$0.99valuemenu.Droppingpricetoapopularpricepointmightmeanalowermargin
butmorethanenoughincreaseinsalestooffsetit.5)Fairpricing
Sometimesitsimplydoesn'tmatterwhatthevalueoftheproductisevenifwedon'thaveanydirectcompetition.Thereis
simplyalimittowhatconsumersperceiveasfair.Ifit'sobviousthatourproductonlycost$20tomanufactureevenifitdelivered
$1000invalue,itisahardtimechargingtwoorthreethousanddollarsforitandpeoplewouldjustfeelliketheywerebeing
squeezed.Alittlemarkettestingwillhelptodeterminethemaximumpriceconsumerswillperceiveasfair.6)Positioning
Poisoningmeanspricingaboutproductanditisakeypartofpricing.Forexampleifanybodyrunningdiscountstorethanhe
alwayssettheirpriceslowerthantheircompetitors.Thepricinghastobeconstantwiththepoisoning.Customersalwayswant
reasonablepriceandgoodqualityoffood.
7)Costbasedpricing
Inhospitalitythisinvolvesaccuratelycalculatingthefoodorbeveragecostofperunitusuallydonebyusingastandardrecipe
thanapercentageisaddedforgrossprofittoarriveatthesellingprice.Itisimportanttoensurethatthegrossprofitpercentage
addedisenoughtocoverallfixedandvariablecostaswellasthedesiredprofitmargin.8)Marketorientedpricing(Qualitative)
Thismethodlooksattherelationshipbetweenpriceandvalueformoneylikehowmuchpeoplearepreparedtospendandwill
takeintoaccountthewholemealexperiencefromdcorofrestaurant,menuitems,staffserviceandcleaning.Factorseffectson
pricing
Pricemustalwaysbeconsistentwiththecustomersperceptionofvalue.Thehigherpricethegreaterthecustomers
expectationanditistodisappoint.Iftheproductisperceivedtobetooexpensivethecustomerwillfindsubstitutes.Iftheproductis
pricedtoolowthecustomermayfeelitreflectsinferiorquality.Budgetperspectiveapriceneedstoincludethecosttothebusiness
aswellastheprofitexpectations.GSTcost
Itisavaluewithaddedtaxanditiscompulsoryforeveryonewhobuysproductandservicefromseller.Forexamplewhen
chefcostingthemenuhewillincludetaxcostwithdishcost.(pricingmethods)
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3.2assessthefactorsinhospitalityoperationswhicheffectrevenuegenerationandprofitabilityPricingisoneofthefour
elementsofthemarketingmix,alongwithproduct,placeandpromotion.Pricingstrategyisimportantforcompanieswhowishto
achievesuccessbyfindingthepricepointwheretheycanmaximizesalesandprofits.Companiesmayuseavarietyofpricing
strategies,dependingontheirownuniquemarketinggoalsandobjectives.
PortionControl
Onereasonthatchainrestaurantsaresosuccessfulisthattheyhaveafirm
handleonportioncontrol.Thecooksinthoserestaurantsknowexactlyhowmuchofeachingredienttoputineverydish.For
example,shrimpscampimayhaveaportioncontrolofsixshrimpperdish.Therefore,everyshrimpscampithatgoesoutofthat
kitchenwillhavesixshrimpinitnomore,noless.Thisisportioncontrol.Inordertopracticeportioncontrolinyourownkitchen
everythingshouldbemeasuredout.Chicken,beefandfishshouldallbeweighed,whileshreddedcheesecanbestoredinportion
controlcupsandameasuringcupcandishoutmashedpotatoes.Onceyoufeelcomfortablecookingaboutmenu,thenserving
amounts(sortoflikeRachaelRay)butintheearlystagesofyourrestaurant,erronthesideofcautionandmeasureeverything
out.Anotherwaytopracticeportioncontrolistopurchaseproportioneditems,suchassteaks,burgerpatties,chickenbreasts,and
pizzadough.Theymaybemoreexpensivebutcansaveyoumoneyinlaborandfoodwaste.Salesmix
Salesmixisacombinationofdifferentsalesproductslikebeverages,food,desertandsidecoffees.Totalofbrunchsales,dinner
salesisequaltototalrevenue.Customerservice
Goodcustomerserviceisthelifebloodofanybusiness.Inafinediningrestaurantcustomerspayforservicetoenjoyfood
andatmosphere.Awaiterorwaitressservescustomerfoodandbeveragesanditisuptostaffthatthecustomerbackagainto
takeservice.Itmeansifthestaffprovidesfineandattractiveservice.Goodcustomerisallaboutbringingcustomersbackand
aboutsendingthemawayhappyandhappyenoughtopasspositivefeedbackaboutbusiness.Staffknowledge
Staffshouldknowaboutmenuitemsontipswiththeirdescriptionsandifstaffshaveknowledgeaboutmenuandbeveragesit
willbeapositivepointandifcustomerasksaboutproductthanstaffshouldanswerwithconfidence.Itwillbegoodimpressionson
customersandtheywouldliketosomemorefoodorcomebackagain.Customerfeelgoodastheygetwhattheywantand
customerwillbeenjoyservice.
Sellingskills
Serversalsoknownaswaitersandwaitressesareakeypartofyour
restaurantstaff.Withoutgoodservice,fewcustomerswouldreturntoanyrestaurant.Agoodserverdoesmorethanjustwaiton
customers.Heorsheisasalesperson.(Perhapstheyshouldbecalledsellers,instead.)Theyshouldnotjustbetakingordersand
deliveringfood.Theyshouldbesellingaproductyourrestaurantmenu.Agoodserverknowshowtoupsell.Upsellingissimply
gettingacustomertospendmorethanhewasoriginallyintending.Factorsaffectingprofitabilityinrestaurantbusinessthatis:LO2
ANDLO3CLASSNOTES
Classwork/notes
Misleadinginformationtocustomersbecause
1.Guestcomplaintincrease
2.Spoilimageoftherestaurant
3.Lossofmoney
4.Restaurantgetfinediftheydontobeyrules
5.Effectthebrandimage
6.Noloyaltytowardsorganization
7.Lackofstafftraininglikeifstaffnotprovideservicetocustomersproperlythancustomergetdissatisfytheywillnevercome
backtorestaurant8.Effectonbrandimageifthereisanyprobleminoperations9.Hygieneifthereisnopropercleaninginkitchen
thanitdirecteffectonfoodsoasaresultcustomerwillgetsickfromthatfoodanditeffectsonrestaurantimage
Employeesdutiesfortheprotectionoftheconsumer
1.ProvideandmaintainasafeworkplacewhichusessafeequipmentandareaswherecustomerthinkIamsafeandthey
comeagainandagainiftheylikeplace.2.Preventrisksfromuseofanyarticleorsubstanceandfromexposuretophysicalagents
andnoise3.Preventanyimproperconductorbehaviorlikelytoputthesafety,healthandwelfareofemployeesatrisk4.Provide
instructionsandtrainingtoemployeesonhealthandsafety5.Provideprotectiveclothingandequipmenttoemployees6.
AppointingacapablepersonastheorganizationsSafetyOfficerwhichhelpswhensomeoneindanger7.Totakereasonablecare
toprotectthehealthandsafetyofthemselvesandofotherpeopleinthe
workplace8.Nottoengageinimproperbehaviorthatwillendangerthemselvesorothers9.Nottobeundertheinfluenceofdrinkor
drugsintheworkplace10.Tocomplaintanydefectsintheplaceofworkorequipmentwhicharenotgoodordangertohealthand
safety
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Lo4
Areasthatarecommonlyappraised
Deliveriesontime
Ifdeliveriescomeontimewewillnotrunoutanything.Moreoverwecouldstoreatrighttemperatureonrightplace.Ifdelivers
comeontimethenchefhastimetoorganizestuff.Wrongdeliveries
ifwrongdeliverscomethantherearemanyproblemsthatmayariselikechefcannotdopreparationwithouthisproducts.If
customerasksforparticulariteminthemenuwhichwedonothaveduetowrongdeliveries.Maybeinsteadofwaitingcustomer
wouldprefergoandtrysomewhereelse.Shorttermdeliveries
Shorttermdeliveriesareknownasliketakeaways.
Qualityofitems
Qualityshouldbegoodifthequalitynotgoodthancustomeralwaysdissatisfiedfromserviceandsuccessorfailureofa
restaurantistiedtothequalityoftheproduct,serviceandatmosphere.Customersexpectfreshfoodthatistastefullyprepared.
Theywantimpeccableservicefromknowledgeablestaffandtheywantanenvironmentthatiscleanandcomfortable.Byreviewing
achecklistofvitalpointsdaily,restaurantconsistentlyprovideaqualityproductthatwillkeepcustomerscomingbackformore.
BackofHouse
*Commercialkitchensmustbecleanandsanitary.Customersorguestneverseethekitchenareaandcleanlinessbut
restaurantshouldprovidequalityfoodwithhygiene.Foodisrotatedineachdeliverytomaintainfreshness.*Storagetemperature
shouldbecheckedeveryday
*Preventcrosscontaminationbyidentifyingcuttingsurfacesandutensils
forspecificitemssuchasvegetables
*Storageareamustbeneatandclean
*Cleanuniformsshouldbewornbykitchenstaffalongwithhairrestraintsandproperfootwear.Allcookingandcleaningequipment
shouldbeservicedonaregularbasis.
FrontofHouse
*Checkplates,glasswareandsilverforcleanlinessbeforeservingfood.
*Thediningshouldbecleananddecorated
*Cleanallareasindinningroomdailybasis
*Tableshouldbewipedaftercustomerleavethepremises*Linenchangeddaybyday
*Handpolishingglassesandsilverwareaftereachwashingwillkeepthemspotfree.*Allplatesandutensilsshouldbespot
checkedforcleanlinessbeforeserving.*Menusshouldbecleanandwrinklefree.
*Regularlychecktablesandchairsforcleanlinessandtoensuretheyarenotwobblyorcracked.Alsobesurethat
restroomsarecleanandstockedbeforeeachshift.Sometimepackagingbroken
Sometimeswhiledeliveriesthingsgetbrokenthanstaffhasrightgivebackthatdeliveries.Expirydateexpired
Staffshouldcheckexpirydatesonproductsiftheythinktherewasprobleminproductsthandontusethoseproducts
becausenotgoodforhealth.Ifanyonecookingfoodwithexpirydatesproductsthanitisverydangeroustohealth.Cross
contamination:rawfoodandcookedfooddeliveriesnotcountedcheckedorweighedDeliveriesnotstoredquicklybacterialgrowth
StoragefoodpreparationfoodcookingfoodservingfoodtocustomerfoodservicefoodclearancefoodchargingStoragethe
correctstorageofproductisveryimportant.Storagecanpreventbacteriagrowth,helppreventinfestation,maintainproductquality
andpreventfrompoisoning.Therearefourregulartypestorage*Drystoragetemperature(10to15c)
*Refrigerationorchilledstorage(temp2to4c)
*Frozenstorage(temp18to25c)
*Hotstorage,piewarmer
Somepointstoconsidercontrollingcontamination,biological,physicalorchemicalintheaboveareaswhenstoringfoodproducts.
Deliveriesofchilledandfrozenfood.
Toensurechilledandfrozenfoodisinthebestpossibleconditionwhenitisusedandsomeofthepointsare:Usereputable
supplierswhosedeliveryveg=hiclesarecleanandmaintainedatacorrecttemperature*Rejectdeliveriesoffrozenfoodifithas
temperature10c*Rejectdeliveriesofrefrigeratedfoodifithasatemperatureabove10c*Checktheconditionofthepackaging
andrejectfoodifpackagingunsatisfactory*Checksignsofpestdamageandmouldgrowth
Cleaninghygieneisveryimportantandneedtoexpirydates.Instoragechecklistweneedtoputstafftraning,fifosystem,
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temperature,HACCPsystemsetcFoodpreparationstage
Infoodpreparationstageunhygienicpreparationisdangerzone.Staffshouldbeskilledwhoarepreparingdishesandright
equipmentsshouldbeusedwhilepreparingfood.Dontcookwithwrongequipments.HACCP
Menusatisfaction
Ensurestaffhasrightequipment
Foodtexture
Thisisconcernedwiththefeelingoftendernessandfirmnessofthefoodinthemouthandcanalsobedescribedasmouthfeel.
Cookingstage
Differentcookingmethodsincludedeepandshallowfrying,boiling,steaming,poaching,braising,roasting,baking,grillingand
stewing.Overcookedfoodlikeshrinkage,lossofnutritionvalueandlossoftaste,righttemperature,staffusewrongcooking
methods,efficientchefs.Managerneedtodochecklistduringfoodcookingiscookingmethodsisright,portioncontrol,ingredients,
rightequipmentsusedinkitchenServingfoodanddisplayingfood
Foodshouldbepreparedasclosetoservingaspossibletopreventtheriskofrecontamination.Iffoodsarepreparedand
reheatedwithspecialcare
mustbetakenwiththetimebetweenhotandcoldtimeframesandpreventationofcontamination.Staffshouldawareofpersonal
hygieneofserverhabits,staffshouldimprovecommunicationwithguesttheyneedtocommunicatewithpolitevoice.Purchasing
rightequipmentsforrightservice.Serviceprovideinsequence.*Clearingfoodstage
*Unprofessionalworkmethods
*Excidentscausedbyinhurry
*Foodincorrectlystored
Managerneedtoimproveallbystafftrainingandjoballocation.Lo4.1performanceappraisalmeasuresandappraisals
techniquestoindividualaspectsofhospitalityoperationstheproductandthewholeoperationsPerformancemeasurement
Measuresperformancemeanstoassessbusinessoutcomesmeansresultslikearestaurantbusinessownerimplement
strategyonbusinessandgetoutcomesfromthatstrategy.Insimpletermbusinessstrategiesapplyonbusinessandgetpositive
ornegativeoutcomes.Organisationhasalwaysmeasuredperformanceinsomewaythroughthefinancialperformance.Insome
casesgetprofitsandinsomecaseslose.Benefitofperformancemeasurement
Itisdevicetohelpmanagerscontrolprocessinorganisationtosolvesituations.Reviewingtheperformanceofanorganisation
isalsoanimportantstepwhenformulatingthedirectionofthestrategicactivities.Itisimportantknowthatthestrengthand
weaknessoftheorganisation.Itimportantforbusinesstoknowcustomerrequirementshavemet.
StrengthandweaknesswherewecanusedatamethodsonbusinessQualitativeandquantitative
1.Qualitativemeansinsocialdata
2.Quantitativemea
3.
4.nsinnumbersorfigures
Forexample:wedofoodcosting,profitandlossstatement,budgetsallare
innumbersbutcustomerfeedbacksaresocialdata.
Qualitymanagement
Qualitymanagementmeansinfoodandbeveragestoprovidequalityproductswitinasystematicapproach.Customerwant
qualitywithreasonablepricessoitisthedutyofrestaurantprovidesthemqualitybasedproducts.Qualityisaninvestmentin
businessbecauseabusinesscanearnmoremoneyfromproductswithcuttingofqualitybutthatbusinessnotrunsofar.Itisthe
responsibilityofmanagementtoprovidequalitybasedproductsandbecauseofgoodqualityproductsestablishmentgetmore
profitsforlonglongtimeandtherebrandimagedevelopedinmarket.
LO4.3businessanalysisevaluationandplanningappropriatetohospitalityoperations,makingproposalsforactionAppraising
revenue
Benchmarking
Itsisatoolusedbymanagementtoenableabusinesstomeasuretheirproductsandserviceswiththeircompetitors.Itisa
formofcompetitoranalysisbutitalsoservestoraisethestandard.Inanotherwordsitcanbecomparedfrompastlikewhatwedid
inpastbusinessandwhatwecandoforpresentbusinessprofits.Aimofthebenchmarkingistoidentifythestrengthand
weaknessofarestaurantbusinessandfindfaultswhatswronginbusiness?Itencouragescostingcontrolmeasuresandanalyses
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toimproverevenueperformance.Menuengineering
Menuengineeringsalesandrevenue
Ithelpstoestablishthepopularityandprofitabilityofmenuitems.Andthisassistsinmenumanagement,developingand
pricing.Menuengineeringhighlightsthegoodandthepoorperformersonamenuandprovidesvitalinformationformakingthenext
menumoreinterestingandappealingtothecustomerswiththeaimofincreasingprofitability.Itisveryusefultooltomakeprofits.
Salesaretheresultofapricepaidandquantitiespurchase.Eachitemsoldresultsinanindividualcontributiontothesalestotalas
wellastheindividualcostsgenerated.Eachproductofmenuhavespecialtywiththeirnutritionvalues,insomerecipesreduces
fatsandcalories.Itisamarketorientedapproachtotheevaluationofamenuwith
regardtoitspresentandfuturecontent,pricinganddesignofmenu.Fandbmanagersdecidetosetpricesofmenuwithmargins
andgetprofitfromit.Eachitemwillbecalculatedwitheachingredientsandthenmenudesignedwithprofitability.Menuengineering
isoftenusedtodeterminethecontributionofprofitthateachitemonthemenuisofferingtocustomers.Menushoulddesignedin
sequenceway.
Grossprofit
Grossprofitisakeymeasureoftheoperatingeffiencyofabusinessanditisoneofthefirstratiostobecheckedwhen
analyzinganoperationsuccess.*Alowgoodprofitcanbecausesbyanumberoffactors:*Poorpurchasing,resultinginhigh
ingredientscost
*Poorstorage,resultinginwastage
*Poorsecurityandresultingtheft
*Poorportioncontrol
Grossprofitisnormallysetbymanagementinabudgetbutforafoodoutletindustrystandardisaround60%Netprofit=total
revenuelesscostofgoodssoldlessexpenses(costofsales+expenses)Cost
Outgoingexpensesthatahospitalityoperationwillneedtobudgetfortoensurethepricesaresetcorrectlytomaintainprofits
forthebusiness.Foralargeestablishmentlikehoteltherearemanycostwhicharedividedupbetweendepartments.Depending
onthelevelofrevenuewilldependontheallocationofcostsforeachdepartment.Classificationofcost
Directcost
Costswhicharedirectlyrelatedinproducingtheproductorserviceandareinfluencedbydaybydayrunningoftheoperation.
Theyaregenerallyconsideredtheresponsibilityofaparticulardepartmentordepartmentmanager.Theygenerallychangein
proportiontochangesinsales.Inthecaseofhospitalityoperationsthesewouldincludefood,beverages,laborandsomeother
expensessuchaselectricity,linen,stationeryandgas.Indirectcost
Ittendtobemorefixedinnatureandwilloccurnomatterwhatthelevelofbusinessthereforetheychangelessproportionto
salesandtheyaregenerallycoststhatarenoteasilyidentifiedwithanyparticulardepartmentandthereforecannotbechargedto
anyparticulararea.Forexample:rent,insuranceandsecurity
Productioncostlikeassociatedcostsofpurchasingandstorage,equipmentsandmachinery,purchasesandmaintenance.
Distributionlikecostsassociatedwithdeliveringtheproductorservicetothecustomerorviaotheroutletstothecustomerfor
examplepizzadelivery.Fixedcosts
ItremainsconstantoverasetperiodoftimeeventhroughthelevelofbusinessMayfluctuate.Donotmovesorchangein
responsetoachangeinsalesvolumeforexamplerentratesandinsurance.Variablecosts
Ittendstoincreaseanddecreaseatthesameratethatsalesincreaseanddecreaseforexamplefoodcost,beveragecost.
Purposeofcostallocation
Inordertocreateaccuratebudgetwhichhelpswiththeeffiecncyandprofitabilityofrestaurantbusinesscostsmustbedivided
upintoarea.Costsareallocatedtodepartmentsinlinewithrevenueexpectationswhichincorporateamixtureofhistorical
statisticsandforecastedprojectsOperationalandeconomiccharacteristics
Pricingandprofitability
Aseverybusinessmanopenbusinessbecausetheywanttomakeprofits,pricingplayveryimportantrole.Whenwesetthe
priceofourproductsweneedtocaretargetmarketalsoweneedtosetthepricethatattractscustomers.thepricessetfor
productsaffectprofitabilityandalsoaffectingandowners.Priceshouldalwaysreflectvalueformoney.Priceaffectstheperception
oftheproductbythecustomer.Weneedtosetpricesinrelationtocostsinvolvedaswellasmarketdemand.ifweprovide
accordingtotheneedsofcustomersandcustomerswillhappyfromservicethanitincreasethesaleofrestaurant.Customers
automaticallycometoourrestaurantiftheylikemenuitemsandthatwillaffordableineveryclassofpeoples.Improveoperational
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performances
Staffingimprovestheperformanceofoperationswiththehelpofgoodservicesprovidedtocustomers.Ifweputrightstafffor
rightworkthanbusinessgoesverysmoothlyalsoifchefsmakingfooduptostandardsthannoonewillcomplaintaboutfood.It
alsoimprovesthebrandloyaltyProductdevelopment
Oneofthemostimportantdecisionmakeasarestaurantownerorfoodserviceoperatormakesisthetypeoffoodand
beverageproductsthatwillbeofferedatestablishment.Notonlydoesyourfoodanddrinkhavetobedeliciousandinteresting
enoughtodrawincustomersbutitmustalsobecosteffectiveandmakeyoumoney.Ifthemenupricesarereasonablethan
customerattract.notonlycostlessrestaurantshouldprovidequalityfoodtocustomersthattheywillcomeagainandagainin
restaurant.Standardrecipes
Standardrecipeiseasilyaccessibleandcomparabletophotoandrecipe.Qualitytasteprovidedwithstafftrainingandconsistency.
Establishcostcontrol
Thequalityandkindsofingredientsareestablishedinadvanceasproductspecifications.Itcanhelptocalculatelaborcosts
Portioncontrol
Standardportionsareintegralpartofstandardrecipeandbuyingpreportionesunitshelptocontrolcost.Andalsomaintain
standardsizes,portioninghousecnleadwastageandinconsistency.Standardyield
Thestandardyieldisaproductistheuseablepartoftheproductafterinitialpreparationortheediblepartafterpreparationand
cooking.Forexample:thestandardyieldsaretestingandthewholefiletofbeefisthenumberofsteaksthatwillbeavailablefor
cookingandfinalsaleafterthemeatistrimmed.Anyusualtrimmingsmustbetakenintoaccountwiththestandardyields.Training
forproductdevelopment
Qualityisachievedthroughstaff.Selectrightpeoplefortherightjobs.Staffmusthaverightattitudestobeginwork.Empower
thestafftosolvecustomerproblemsasfarastheycanthemselvesandifstaffknowsabouthow
tohappycustomersitautomaticallyincreasessalesfromfood.Staffhassometrickstomotivatecustomertoeatmore.Itisgood
forbusiness.Reportonchevaliers
Introduction(subjectofreport)
IreadwholecasestudyandIfoundachevalierishospitalityestablishmentwhichislocatedonbeachandthreestoried
restaurant.Inthisrestauranttheyhaveabeachlevelkiosk,lacarterestaurantanditcancoverupto100coversandinhouse
functioncateringfacilitywith200covers.Beachlocationisthebestlocationformakingmoremoneybecausepeoplelovesea
viewsandenjoyingfoodwhilewatchingsea.Chevaliersgotagoodlocationbuttheydonthaveorganizedmanagementand
experiencedstaff.Chevaliersgeteasilymakemoneyfromrestaurantbuttheydonthavetrainedstaffandexperiencedpersonto
runbusiness.Inthisestablishmentmostofthepeoplecomefrommiddleclassfamilies.Peoplearelikejoggers,walkersand
parentswithchildrens.Fromlastoneyearchevalierssalesgoingdownandhugeloss.Therewerenomorecustomerscomedue
tobadconditionofrestaurant.Therearesomanyproblemsandmissmanagementinrestaurant,lackoftrainedstaff,no
experiencedmanager,nobarpersonpresentallthetime,nodcor,notfullyhygieneandnopropercleaning.Customersbecome
lessdaybydaybecausetheyarenotsatisfiedfromserviceandatmosphere.Thesuccessofanyhospitalitybusinessdepends
mainlyonitsdevelopmentplans.Businessdevelopmentincludesawiderangeofactivitiesthatcreateneworchangedofferings,
organizationsprocess.Itenhancessales,improvescustomersatisfaction,augmentsquality,diminishescostsandachieves
numerousbenefitsfororganizationstobesuccessfulandhereIimplementdifferentstrategiestoimprovebusiness.Thereare
numbersofthingstorunbusinessandmakemoreprofitslikepricingoffandb,accountingandmaintenanceetc.Thereare
numbersofproblemsinchevaliersneededtoimproveandIimplementeddifferentstrategiestoincreasesalesandsomeofthe
strategiesarefollows:
Keytosuccess
1.Signboardneedstobereplacedasitdontgotcontactnumberonit2.Theirstaffisneededtoreplacebynewexperienced
staffincludingfront
andkitchen.Hiringthebestpeopleavailable,training,motivatingandencouragingthemandtherebyretainingthefriendliest,most
efficientstaffpossible.3.Kitchenequipmentsneedtoimproveassomeareofnousesothatproductivityimproved4.Rubbishbins
needtoreplacebynewbinsastheyareoldandneedtochangetheirlocationastheyareinway5.Alsothequalityofproducts
needstobeimprovedaswiththisqualitycustomersalwayshavecomplaintwiththeirmeals6.newmenualsoneedforthe
businessaswiththeoldmenucustomerswerenotattractedcouldexplaint7.baralsoneedtoimproveasbaralsohavesome
complaintslikenothaveenoughdrinkstocompleteorderastheirlistisless.7.Staffneedstotrainsothattheycouldanswerthe
customersquestions.8.Signsneededintherestaurantfortoiletsandbar
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9.TheprimaryGoalistoservequalityfoodatunbelievablylowpricesinaclean,funenvironment.Wemustdeliveronthis
pledge100%ofthetimewithoutexception.10.Asifweimplementthesechangesthenoursaleswillgoupandwewillmake
moneyandourcustomerswillbehappyandcomebackagain.Iknowforalltheseweneedtospendsomemoneybutinreturnwe
willgetsalesandcustomersAlsoweneedtochangeouroperatinghourslikeatthepresentourstaffIssittingwithoutdoing
nothing.weneedtohirenewmanagerwhohavegoodknowledgeofhisjobanddutywhocouldbringnewcreativeideasandwho
couldmanagestaffandrestaurantalsowhocouldtalktocustomersinagoodway.Wealsoneedtochangesupplierswhocould
bringdeliveriesduringourtradinghourssothatwegetourdeliveriesontimeandatcorrecttemperaturealsowecouldstorethem
atrightplaceaccordingtotheirstoragerequirement.
RestaurantneedsandchangingthingsimproverestaurantsalesIhavetotalamount$30,000andwithinthisamountIplanned
toimprovebusinessofchevalierssowespendsomemoneyonkitchenequipments,rubbishbins,signboards,barsetup,staff
training,dcorandpromotionsforchevaliersgrowthandprofitability.Forbarsetupweneedtoapplynewlightingsandsigns,itwill
costusaround1000$includingGST.Ifweimplementthischangethencustomerswillmoreattractandtheywillordermore
beveragesandincreaseourrevenue.Weneedtochangerestaurantslightingaswith
ourpresentlightingcustomersarenothappyanddontlookgood.Itwillcostus2500$ifweimplementthischangethencustomers
willattractandalsoiftheyhappythentheywillbackagainandwithourrevenuegoup.Weneedtoimproveoursignboardaswith
ourpresentcustomersarenotabletoseeourcontactnumberandalsolooknotgood.Itwillcostus500$.butwillbringinmore
customerssothattheycouldmakebookingsandcouldknowaboutourproducts.Weneedtochangedishwasherandgasstoveto
improveourproductivityandhelpincleaningdishesinlesstimebothofthemwillcostusaround5000$Rubbishbinsneedto
replacebynewonesasitisnotlookgoodindoorwayssothatcustomerscouldenjoytheirmealalsoitwillcostus500$.Weneed
tosetupmarketingwhichwillhelpustogetcustomersandalsocustomerknowaboutourproductsandservices.itwillcostus
around1500$.Marketanalysis
Chevalierssituatedonthebeachsowearefocusesonlocalpeoplesandtourist.Peoplethathavedesireforgoodand
fascinatingatmosphereandwhoareinterestedinseaviewsandnaturalattractions.Ifweimplementallabovethingsthendefinitely
peopleinfluencedfromrestaurantlocationandatmosphere.Marketsegmentationimplementonchevaliers
Marketsegmentisaconceptwherewefindwhatpeoplelikeaboutfoodandwhatkindofservicetheyneed.Duetomarket
segmentationwewillknowcustomerdemandsanddesires.Inchevaliersrestaurantmostofthepeoplecomelikewalkers,joggers
andparentswithkids.Wewilldivideintodifferentpartslikeagevise,genderviseandyoungpeople,oldpeopleandkids.
Accordingtocustomerneedswewillsetthemenuandprices.
Forexample:weneedtoadvertiseourproductssothatcustomerscometoknowwhatwesellingandwedomarketing
programslikeweekendpartiesanddirectmailstocustomers,addinnewspaper.Thiswillbebyfarthecheapestandmost
effectiveofourmarketingprograms.Salesstrategies
Oursalesplanistoestablishandmaintainpositionwithourlocalcustomers.Thestrategyistobuildmorecustomersinorder
toincreaserevenue.Wewillfocusonmakingallcustomershappywithourfood,service
andentertainment.ourstrategyinthechevaliersrestaurantistohaveanexperiencesstaffthatknowaboutthefoodand
beveragesorliquor.Wewilltraineveryemployeesotheywillfitinchevaliersrestaurantconceptwhichisreasonablepricedfood
tocustomers.
Nocomments:
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