FreshFast Food Restaurant
Ahotel business can be a profitable venture if set in a suitablelocation and offers quality services to the customers. The businessattracts people from the different walks of life from heavy to lightspenders. Before putting a hotel, it is imperative to consider thelocality in which the restaurant is likely to operate. The idea willhelp in profiling the existing population and look at theirdemographics and economic characteristics. These will be important ininforming the management about the services that may be desirable toa given population and also for the producing strategy. Restaurantsare either, upscale, casual, cafes, super clubs among other forms.Investors choose the type that is likely to bring good returns to thebusiness in terms of the number of people visiting the premises andthe spending patterns (Parpal, 2015).
Thereare various factors I will have to consider since I have a cleanslate. The target people are a very significant factor because theyare the ones who will keep the business moving with the money theyspend. Their demographic characteristics will also serve as a sourceof information because it will describe their spending patternsconcerning their economic condition. The location of my premise willalso inform on the best form of restaurant that fit the specificplace (Walker, 2013).
Thetype of restaurant that fits the premises as well as thecharacteristics of the target population is a fresh casualrestaurant. This kind of restaurant offers services to customers inan informal setting since they do not stay long in the restaurant.The decision to set a fast casual is as the result of the mobilenature of the population in the surrounding and their middle-levelfinancial status. They would be willing to spend in the restaurantsince the foods will have a moderate price that is favorable to themajority of them (Parpal, 2015).
Thetype of restaurant will offer an array of services to the clientele. The menu of this restaurant will be chef-driven. That is, the chef orthe culinary team will decide on what to put on the menu. The teamwill come up with different profile dishes and flavors. The kitchenstaff will handle executing the task. The approach will provide theclients with an array of foods to choose from according to theirtastes and preferences.Secondly, this type of restaurant will bedifferent from a fast casual restaurant since it will involve theaspect of adding value to the services given to the clients. Clientswill be ordering the food from the counter, but they will receivetable service from the members of staff. The restaurant will alsohave the value of good fittings and furniture to create a relaxingatmosphere. The food provided will be none-frozen, and I will be ofhigh quality to reflect the needs of the clientele (Parpal, 2015).
Thefoods indicated on the menu should have a price that reflects themarket trend. Most of the food prepared by the chefs will be thecommon foods in the community that is also available in otherrestaurants. It will be imperative to provide these foods to gain asignificant number of customers before introducing another type offood. Since restaurants spring up in almost every corner, it will bea sound decision to set the price of the food at the same level withother close competitors. However, we will at the same time increasethe portion of food. Market researchers refer to this as valuepricing. In this strategy, the goal is to win the loyalty ofcustomers. They will opt to come to the restaurant where they canenjoy a larger portion of food than in other restaurants (Ingenbleeket al., 2013).
Therestaurant has not been operational for a long period. For thisreason, it does not have any ready customers, and every action thatwould lead to acquiring a significant share of the market will benecessary. The rationale for having this time of approach in settingthe price of the food is to increase the restaurant’s profits andthe same time satisfy the customers (Ingenbleek et al., 2013). Thedecision to set up a fresh casual restaurant integrated introducinghigh-quality furniture to give customers a distinct level of comfortas they enjoy their food. It also brings in the idea of table servicewhere clients do not need to get the food physically from thecounter. They can just order and find their seat waiting for thewaiters to deliver their food. These methods would not be fullyadvantageous without a favorable price for the food. Coupling thecomfort and good service with value for the paid food will win a bignumber of customers.
Theother rationale for choosing this strategy is that the restaurant hasto be in line with the prevailing market conditions. Since it will beoffering products that are no new in the market, the consumers willonly be looking for another value in the services that is not presentin other restaurants. Setting the price higher than other restaurantsmay result in a very little markets share while setting the prices ata lower value may appear as if the restaurant is of low quality. Itis worth noting that the clientele already have established eatingjoints. It would be less profitable to reduce the price of the foodsto beat the competition. The only way to make them consider coming tothe joint for food is the quality of services given by the staffmembers. Besides this, a restaurant is not an exotic establishment,and it does not call for penetration prices to gain a name in themarket (Ingenbleek et al., 2013).
Thesustainability of the fast food depends on the willingness of thecustomers to continue coming back for the quality food and services.To achieve it, we will have to communicate the value that customersget when they visit the restaurant. Value communication involvesgiving credible information in particularly in monetary terms thathelp to differentiate the products of one venture from the others.The goal of the strategy is to give the customers a clear picture ofwhat they save or enjoy as discounts whenever they visit a particularstore. Once we identify the economic value of our foods, it will bepossible to promote the restaurant capitalizing on the key areas thatthat differentiate the restaurant from other ventures.
Thecommunications strategy for the restaurant will incline towards thequality service that clients get whenever they visit. Unlike casualfast foods, the fresh, fast food establishment offers table servicesto customers whereby they just order food and wait its delivery. Theextra service does not increase the price of the products. Clientswould opt to visit the restaurant to take advantage of this servicesince they would buy the food at the same price from another fastfood shop that does not offer table services. The price of the foodwould appear lower than in other restaurants, and this will give therestaurant a better edge. Since it is making a comeback in themarket, it will need to develop an early approach to loyal clientswho will in turn attract others by their frequent comebacks.
Therestaurant wants to introduce a unique food in the menu and attractnew customers to adopt it. As mentioned earlier, it will be theresponsibility of the chef to come up with a menu that reflects theneeds of the clients. The introduction of a new food requires awell-though strategy in terms of pricing and the encouraging a fastadoption by the clientele. For a new type of food, there is noassurance that the clientele will like it. It might take a long timebefore they opt to have it the diet because they are always skepticalabout something that they have never tried. On the other hand, thequality of the product and the level of its price might attract agood number of early adopters who will spread the word about it andconsequently have a wide market.
Thebest strategy for this unique type of food will be setting it lowerthan that of other foods. In the industry, professionals refer tothis as the penetration price. Penetration price involves setting alow initial price of a product to have a rapid market growth. Itworks on the idea that customers will quickly switch to the newproduct because of its price. There are several rationales ofsetting the price lower than that of other foods. First, I can resultin a quick diffusion and adoption of the unique type of food. Manyclients would be willing to try it out and enjoy the cheap cost.Secondly, the price will create a good will among the clientele whoadopt it early, and they will bring in others through their word ofmouth. Another important factor is that it will discourage otherrestaurants from providing the same product due to low cost. It is abarrier to new entrants, and this will give the restaurant an earlymonopoly of the unique product. Finally, the price will be veryefficient in controlling the cost and overcoming the pressure toreduce the cost in future. However, we will have to put in somemeasures to deal with the long-term price expectation. Any slightchange should not have adverse effects on the sales or the image othe company (Hinterhuber & Liozu, 2012).
Inconclusion, the future of the restaurant and its position in theindustry has a probable success. The choice of a fresh, fast foodrestaurant is in line with the emerging trends in the industry wherecustomers enjoy extra services at no cost. The pricing strategyrecommends setting a price that reflects the prevailing levels ofother competitors. The services rendered to the customers will givethem a reason to come back many times and give the restaurant a bigshare in the market.
Hinterhuber,A., & Liozu, S. (2012). Is it time to rethink your pricingstrategy. MITSloan Management Review,53(4),69-77.
Ingenbleek,P. T., & van der Lans, I. A. (2013). Relating price strategiesand price-setting practices. EuropeanJournal of Marketing,47(1/2),27-48.
Parpal,M. (2015). An Overview of Different Restaurant Types. Food ServiceWarehouse. Retrieved fromhttp://www.foodservicewarehouse.com/education/restaurant-management-and-operations/an-overview-of-different-restaurant-types/c27994.aspx
Walker,J. R. (2013). Therestaurant: from concept to operation.Wiley Global Education: New York.