Cosmos Restaurant – An Innovative Business Idea Offering Asian And Italian Cuisine

Mission Statement of Cosmos Restaurant

In order to make the business idea unique and innovative, major product offering of Cosmos Restaurant will be Asian cuisine and Italian cuisine along with the famous dishes of UK. Asian cuisine has been added to the menu of Cosmos Restaurant with reviewing the demand of Asian food in western countries. Taste of Asian food is quite impressive as well as unique from other food items. Apart from this, it is a bit spicier from other food items, thus, it is included in the menu range of Cosmos Restaurant. This restaurant will provide relished experience to the target audience.

Initially, it will be launched as a private company as legal compliances for private companies are less in comparison to the private companies. Apart from this, a separate R&D team has been created which will focus on customer relationship, customer experience and their satisfaction level. To gain a competitive advantage in UK’s market, Cosmos restaurant has also adopted the online platform to distribute their food items. This will help the organization to cover a large part of the market along with this; it will increase customer base and reliability over target audience (Finch, 2016).

Cosmos Restaurant is a new and innovative business idea and in order make this idea effective in the physical market, experienced, knowledgeable and talented candidates will be appointed from the same industry. As budget of the organization is sufficient enough, hence, compromise will not be made in relation to the recruitment and selection of key candidates. Operational capabilities of Cosmos Restaurant will be huge due to the appointment of talented candidates as well as a due huge investment made in order to set up the restaurant in UK market.

The mission statement for Cosmos Restaurant will be “Creating an Aura of enriched and delightful experience for the customer by serving high-quality dishes handpicked from some of the best chefs of the world” (Finch, 2016).

The vision of Cosmos Restaurant is to grab the leading position in the restaurant industry in UK market within coming 5 years. To acquire this position, the organization has focused over fulfilment of large customer segment’s demand and for the same; varieties of dishes from all over the globe will be served in the restaurant (Boshyk, 2016).

Short terms of goals for the Cosmos Restaurant will be the development of the effective image in the target market along with spreading awareness amongst the target audience. Initial stage i.e. introduction stage for every organization or for a product is quite important. If at this stage, appropriate marketing and promotion will be done regarding the business, chances for sustainable development and growth increases. Thus, in the introduction stage of the restaurant, appropriate and advanced measures will be adopted to promote the restaurant in the target market. This will help to spread awareness amongst the target audience in relevance along with increasing the chances of approaching to them.

Vision of Cosmos Restaurant – Leading Position in UK’s Restaurant Industry within 5 years

For corporate social responsibility and fulfilment of business ethics, expertise agencies will be outsourced in order to reduce the cost of production as well as to gain expected outcomes in an effective manner (Conway, 2013).

Size of market

The restaurant industry in the United Kingdom is has grown at a rapid rate in recent years. This has increased the opportunities for new entrants in this industry to set up their distinctive image as well as to earn higher profits. In 2015, consumer expenditure on restaurants and cafes has reached over £77 billion and along with this, a number of enterprises have also been increased with a contribution to the non-financial business economy over £17.6 billion. These stats showcase that the opportunities for Cosmos Restaurant in UK market is high and with a £2 million investment, the organization will be able to set up an effective place in the target market (Finch, B. 2016).

Micro Analysis

The government of UK has imposes several laws such as employment laws in relation to ensure safety and right of employees, and environmental laws so that organizations could follow environmental policies while performing their operations. Political factors have a high impact on the restaurant industry and in order to ensure the cleanliness and hygiene in restaurants, regular checks are conducted by UK government. Considering all these factors, Cosmos Restaurant needs to develop its strategies to ensure smooth functioning in the competitive business environment (Conway, 2013).

Fiscal policies by UK government could affect Cosmos’ operations such as the imposition of taxes over consumer items which will lead the organization to enhance the prices of their food items which will be served in the restaurant. Apart from this, inflation rate also plays a crucial role in the performance of the restaurant. Increasing the food items prices will affect the demand while bearing the cost of taxes will decrease profit margins of the restaurant. Thus, to ensure an appropriate profit margin along with high demand, an effective pricing strategy needs to be adopted by Cosmos restaurant such as cost leadership; value-based pricing technique (Goi, 2015).

Social factors play a crucial role in the restaurant industry because consumers are the end users of the restaurant industry. The demand of consumers, the latest trend, product offering by competitors, the interior of the restaurant, the location of the restaurant, etc. are certain crucial measures which could affect the performance of newly established restaurant in the target market.

Short-term Goals for Cosmos Restaurant

Technological measures in the restaurant industry are used for promotion, marketing as well as for entertaining its customers. Website promotion, email marketing and online presence of restaurant are certain measures through which consumers could take appropriate information about the restaurant. Thus, technological factors play a crucial role in spreading awareness regarding amongst the target audience (Johnston, and Bate, 2013).

A number of agencies have been set up by the government of UK in order to go for random check in the restaurant regarding food quality served to the customers. A number of regulations have been imposed by the government in order to control the supply of food products in the restaurant market. In order to perform in an effective manner, Cosmos Restaurant will be required to adopt these rules and regulations to create a lawful atmosphere (Mohd, Idris, and Momani, 2013).

Certain ecological compliances are implied over consumers of the restaurant which are being referred as the ecological issues. The government has taken various steps to control the food quality and health safety of the consumers and in order to consider environmental factors; a certain amount of earnings should be invested in the development of an effective environmental around the restaurant. Apart from this, climate change is a major issue for restaurant industry (Rashid, and Ghose, 2015.).

It is an effective tool for a marketing plan. It evaluates strengths and weaknesses of the primary competitors and with the help of this, appropriate measures could be adopted to differentiate newly established restaurant unique from existing ones. Primary and direct competitors for Cosmos Restaurant in UK market will be Gaylord Restaurant, Yuu Kitchen and Zaibatsu. All these three are famous for serving Italian and Asian cuisine and in recent years, demand for Asian cuisine has grown rapidly.

Major questions which occurred in the competitive analysis are who are the primary competitors, their speciality, their key strengths, their weaknesses, market share acquired by them, their past strategies,  their current strategies, marketing strategies used by them, etc. In relevance to these questions, it has been evaluated that all these three restaurants have acquired almost 55% share of the Asian cuisine restaurant industry (Schmidt, Spann, and Zeithammer, 2014).

Primary strengths of these organizations are:

• Gained experience in the UK restaurant industry
• Knows the taste and preferences of the target audience
• Consumer insight

Weaknesses of these organizations are:

• Lack of focus on other food dishes
• Irregular marketing and promotional strategies
• Lack of measures to develop PR and customer relationships.

ACRON consumer segmentation is a geodemographic UK consumer classification system. Under this method, the population is being classified on the basis of their location. ACRON segmentation technique helps to Cosmos Restaurant to determine the areas in the UK in which population of Asians are high. This is because organization’s major focus is on Asia cuisine and it will be majorly preferred by Asians. This method does not rely on census data; it has its own methods to determine the density of population. There is six categories, 18 groups and 62 types under ACRON consumer classification approach. With the help of this approach, the organization will be able to determine the most appropriate area to target for getting desired outcomes. With the help of Acron segmentation approach, smarter target market could be determined along with understanding the customers. It will help the Cosmos Restaurant to set up an effective image in the target market along with gaining competitive advantage (Siguaw, and Simpson, 2015).

Marketing Plan 

Strengths of Cosmos Restaurant

Marketing plan comprises set of effective strategies to promote the new business or new product in the target market. It helps to spread the awareness amongst the target audience relevance with the new business establishment. It is made for a certain time period and the objectives in relation to the marketing plan should be attained in that particular time period in order to fulfil the expectations of management. A major part of the marketing plan is marketing mix technique. This helps the organization to communicate its target audience in relevance with determining the perfect place of distribution, showcasing features of the product and appropriate promotional and advertisement strategies. Following is comprehensive marketing mix technique in relation to the promotion of Cosmos Restaurant in the target market (Wei, Samiee, and Lee, 2014).

• Product: Asian, Italian and other famous cuisines across the globe will be served under the roof of Cosmos Restaurant. Primary key features of their menu range are that they will provide a wide range of food dishes to its target audience.
• Price: In the initial stages, the organization will focus on fair pricing strategy; value-based pricing strategy as well as over cost leadership strategy. These pricing techniques have the potential to increase the market share of the organization along with gaining competitive advantage in the target market.
• Place:Place of distribution plays a key role in terms of setting up an effective position in the competitive business environment. UK’s restaurant industry is quite complex and intense and in order to gain competitive advantage along with developing a separate position in the target market, it is essential to set up the outlet at the centralised location which could be easily approachable for the target audience (Solomon, 2014).
• Promotion: In terms of promotion, the organization will focus on trending digital strategies such as Facebook, Twitter, Instagram, etc. traditional marketing techniques like television, radio, newspaper advertising, etc. Apart from this, the organization could also use email marketing, event marketing and other several sources to promote Cosmos Restaurant in the target market.
• People: Key employees play a crucial role in the success and growth of the organization. Cosmos Restaurant is about to set up their outlet in UK’s restaurant industry, thus, it is necessary for them to hire crucial and talented employees who could help the organization to attain its desired goals and objectives in an appropriate manner.
• Processes: It should be focused that consumer should get the equivalent value as per their spending. Until and unless, consumers will not feel worthy of values as per their spending, their satisfaction level will not enhance. Thus, it is necessary to make sure that the services could enhance customer satisfaction level.
• Physical evidence: There is some physical appearance always exists for intangible services. For example insurance company also provides documents in which all terms and conditions are mentioned. Thus, in order to provide some physical appearance in relevance to the services offered to the customers, Cosmos Restaurant needs to provide some physical evidence such as an invoice to its target audiences.

Note- For more information, please look at the attached Excel file.      

It is evaluated that the breakeven point is the point at which Cosmos will have no profit any loss from selling its products and service in the UK.

The below graph reflects that only in the initial year company will have a loss and after that, it will continue having profited from its business

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