Business objectives
According to Grundy et al., (2015), analyzing the recent trend in Australian food market, it has been observed that after the economic growth in the Australian industry, demand of the food industry has increased among the people. In the updated food market in Australia, the food expenditure pattern has changed (Qiao and Peng, 2016). Analyzing the current food industry trend, it can be said that not only in the food as well as the demands of beverage has also increased in the market. McCarthy (2015) stated that due to active participation of government, farmers are getting economic opportunities, which have indirectly maintaining the uninterrupted supply chain process in the industry. In this study, the new restaurant business development initiative has been discussed. It has been identified that a business namely ‘Solar food train’ is going to be opened in Melbourne’s CBD. The purpose of this study is to describe the significance of the proposed plan so that the investors can be convinced. In this study, the entire description of the restaurant has been discussed. By analyzing both the internal and external environment of ‘Solar food train’ opportunities and challenges of the business has been analyzed.
- To be leading home-style restaurant in Melbourne CBD
- To provide good quality meals at reasonable prices
Figure: Brand Logo with cover
(Source: Created by author)
In this study, an entrepreneur is going to develop the new restaurant namely ‘Solar food train’ in Melbourne’s CBD. In case of Australian food industry, the Solar food train concept is quite modern as it aims to provide different types of food in very reasonable prices. Therefore, it can be assumed that it will attract large numbers of customers. In the restaurant dinning as well as buffet system will be provided so that it can provide the service to large numbers of customers. In order to grab the attention of large number of customers, the restaurant will provide Australian, Chinese and Italian foods. In order to maintain the safety and security of the customers as well as restaurant staffs, fire prevention tools will be provided. Not only the local customers, but also the business will target the global customers so that it can maintain its uniqueness in the market. The purpose of the restaurant is to fulfill the needs of the customers by providing standard quality of foods in reasonable prices.
It has been already discussed in this study that three types of foods will be provided in the restaurant. Depending on the popularity of foods, all types of foods will be provided in the restaurant. The food menu will be divided into different segments and depending on the type of foods the food menu will be developed. Coffee and tea stall will be separated from the main courses. There will be a list of Burgers, Pizzas, Soups and other items. In the below the menu sample has been provided. The Australian popular foods such as Pavlova, Chicken Parmigiana, Lamingtons and others will be included in the menu list. The people who prefer the Italian food, the restaurant will bring for them numbers of Italian foods such as Antipasto, pane, Pasta, Vino and others delicious foods. In the Chinese menu, Delicious Sweet & sour pork, Beef &Broccoli, Szechwan Chilli Chicken and others dishes will be provided. Not only are the foods but also there a long list of beverages. Both the alcoholic and non-alcoholic drinks will be provided in the restaurant. In order to provide the effective service, total numbers of 15 serving staffs will be recruited in every trip.
Brand cover
Figure: Menu Layout
(Source: Created by author)
Separate kitchen will be included in the back side of the restaurant. Not only for the daily purpose, but also the Solar food train will be used for the events such as Marriage, office party and other events. In order to entertain the visitors, the facilities such as dance floor and DJ events will also be introduced in every week. In the restaurant dinning as well as buffet system will be provided so that it can provide the service to large numbers of customers. In order to grab the attention of large number of customers, the restaurant will provide Australian, Chinese and Italian foods.
In case of maintaining the business operation, a management team, marketing team, human resource management team, operation team customer support team and finance team will be recruited (Ferguson et al., 2016). Increasing the motivation of the employees towards their job, proper wages structure will be developed. Only the operation team and management team will be present in the restaurant. Other teams will be appointed in the operating area which will be included in the back side of the restaurant, so that in any circumstances, the team can be present to manage the situation. Solar food train will analyze the unique selling point, research and development team will be developed.
In the market analysis, it has been identified that in the Melbourne’s CBD, SUD food and Wine, Invita Living Food and 11 Inch Pizza Melburne CBD are the popular restaurants. Depending on the customer review, it can be said that these three restaurants can bring the tough situation for Solar food train. However it is also true that the restaurant will provide three types of foods, which can be considered as the unique idea in the market. However, it is also true that it has targeted all types of customers. In case of Solar food train, it only targets the middle class and upper middle class people as it focuses of providing the services in reasonable price.
Not only the food accommodation, but also people can also experience the facilities of cabins in Solar food train. On the other hand, it is not true that a restaurant running with solar energy is totally new concept for the Australian people. In the market research, rectifying the issues of other competitors, Solar food train will be introduced with environmental friendly accommodation for 50 people in a trip. Therefore, it can be said that it will help to gain the competitive advantage in the market. In cannot be denied that due to increasing availability of the restaurants, customers have become conscious regarding the food quality. In order to manage the situation, the Solar food train will serve all the products by maintaining the food standard policy. The man USP of the restaurant will be its innovative idea. As the restaurant will run by the solar energy, therefore, the environmental friendly concept is new in the Australian market, which can be appreciated by both the customers and citizens. By bringing the restaurant concept that runs with solar energy with 50 seats capacity in the Australian restaurant industry, it can also be able to grab the attention of large number of customers.
Concept
Figure: Internal design of the restaurant
(Source: Created by the author)
Selecting the proper target market is very important in terms of developing a new business. Depending on the demographic, psychographic and geographic segmentation, the study has described the target market of the company. It has been identified that the entrepreneur has decided to provide different ranges of products so that large number of people can abele the service. Depending on the demographic segmentation, the Solar food train restaurant has targeted all age of Clients. However, in the specific way, it can be said that the restaurant will mainly target the couples and business persons. By highlighting the income level of the people, it has been identified that restaurant will target upper class and middle class clients In case of Solar food train, it has been identified that the people, who prefer the luxury services in lower ranges, will be targeted by the restaurant. Therefore, from the psychographic segmentation, depending on the interest of the people, target market will be developed. In case of geographic segmentation, the entrepreneur has already decided to develop its business in Melbourne COD so that for its smoother accessibility, large numbers of customers can be attracted.
The new food business is going to be introduced in Melbourne’s CBD. In the words of Qiao and Peng (2016) CBD is being considered as highly economically significant area in a city. In case of Melbourne, it is true that accommodation and networking system of this city is quite advance. Due to this reason, availability of commuters in this place is increasing day by day. On the other hand, Yu, Ai and Shao (2015) said with increasing economic growth in this area, it has become one of the popular business places in Australia. Depending on the increasing opportunities in food industry and following the food trends, it can be said that, in the 21st century, Australian food industry has brought higher level of chances for the entrepreneurs, who wants to develop their business.
Figure: Increasing fast food demand in Australia
(Source: Theage.com.au, 2018)
In the above diagram, it has been mentioned that in between the year 2015 to 2018, the demands for fast food among the people have increased. The Australian food market has stated growing in the positive manner after 1988. It has been identified that within 2016 to 2017, the food production increased $65 billion to $117 billion, which is quite impressive (Theage.com.au, 2018). On the other hand, analyzing the feed demands in the Australian market, it has been identified that, in recent situation, the food habits and food expenditure pattern have been changed. In this situation, it becomes harder for the people to understand the needs and demands of the customers. In the recent report based on Australian industry, it can be said that due to changing social trends, the solid revenue growth has moved to the restaurant sector. In the busier life style and improving living standard, going to the restaurants has become common habits of the customers. In the words of Purkayastha and Sharma (2016), the Restaurants allow to the customers for combining the dining so that they can avoid spending time on food preparation.
Menu concept and sample
Figure: Restaurant business growth in Australia
(Source: Qld.gov.au, 2018)
In the above diagram, it has been identified that in between the year 2010 to 2013, demand for restaurant and catering service among the people has increased. Due to this reason the growth rate is increasing in the Australian market. On the other hand, it has been identified that in between the year 2013 to 2018, the growth in the food industry in Australia has increased 3.5% (Qld.gov.au, 2018). By analyzing the market size of the Australian restaurant industry, it has been identified that in the recent year, the business revenue of restaurant sector is $20 billion (Ibisworld.com.au, 2018). It is true that the restaurant industry has also contributed in the Australian employment rate. In the report, it has been identified that near about 288854 people are employed in this sector (Ibisworld.com.au, 2018). Therefore, depending on the industrial growth and increasing demands of the customers it can be said that in the long run the Solar food train restaurant concept will be benefited.
It is true that current food industry has brought various opportunities for entrepreneurs to develop new business (Ravindran & Jaiswal, 2016). However, it cannot be denied that with the increasing opportunities in the industry, the challenges also increases, which indirectly influence the business performances. According to Walker, Decker and McClements (2015), in the 21st century, with the changing food pattern and food spending habits of the customers, it has become tough for the entrepreneurs to develop its business. Increasing demands for both the quality and quantity of the foods, it has become tough for fulfilling the customers’ attention. In this situation, it has become tough for the gaining the competitive advantage.
The biggest strength of the Solar food train restaurant is by critically analyzing the issues and challenges of the other restaurants, the entrepreneur has decided to develop the business by erasing the chances of the issues. On the other hand, this will be the first solar energy running restaurant with the capacity of 50 people. By introducing the effective and innovative marketing strategies, the Solar food train restaurant will be able to grab large number of customers’ attention. In order to maintain the effective leadership management practices, the transformational leadership approach will be introduced in the workplace so that the service quality can be developed. In order to increase the rate of retention, different motivational initiatives such as effective wages structure, health benefits and attractive compensation policies will be developed. The entrepreneur has developed the effective management team, which can be beneficial for providing the better service to the customers. In case of developing the strong customer relationship, the customer support team can help to solve the customer quarries. The biggest strength of this business plan is its technological innovation, which can help to develop it strong brand image in the market.
Style of service
The biggest weakness of the business plan is it has mainly targeted the middle class-class and upper-middle class people. In this case it will be harder to develop the large customer base. Training is required for the serving staffs, those who will provide services in the Restaurant. As it is a small project, therefore, minimum 60% seats needed to be filled up for every time for managing the cost. Due to these criteria, most of the cases the restaurant will face the loss, as middle class or lower class people will not be able to visit the restaurant frequent. Due to lack of customers in the initial stage, there is higher level of chances to face the financial crisis. On the other hand, there are others five star restaurants in Melbourne which provides same types of facilities in lower range. Therefore, it can arouse the question regarding the pricing policies of the business plan.
The external opportunities of a business plan can be analyzed depending on the political, economic, Social, technological, Legal and environmental factors. In the words of Cameron and McAllister (2016), Australia is being considered as one of the peaceful countries in the world. By supporting this Pietsch and McAllister (2016) stated that with the stable political situation in Australia, it can be easier for the entrepreneurs to develop their business in Australia. On the other hand, if the GDP growth rate in Australia is being analyzed, it will be identified that from the year 1970 to 2016, the GDP rate has reached 4562.55 crores USD to 1.2 lakh crores USD (Mols & Jetten, 2016). Therefore, it can be said that with the increasing economic growth, the business plan will be benefited. It cannot be denied that economic development 0in a country reflects through the social status of the people. However, Vidgen et al., (2017) argued that it is true that availability of middle class people is higher than the other classes. By analyzing the conspicuous consumption rate of this country, it can be said that there are still large number of people who are fond of reasonable service and products (Zhang, 2017). On this case, it will be beneficial for the organization to grab the attention of those people. In case of technology, Australia is growing in the fastest rate, which can bring the opportunities for the business organizations. In the words of Prakash, Jain and Chauhan (2015) Australian government has always appreciated the business initiatives in this country. It is true that customer service as well as food and beverage industry regulations are also very strict in this country (Vidgen et al., 2017). Therefore, for developing the restaurant opening plan, protocols of food standard and food safety are needed to be maintained. Waste management policies are strong in Australia and strictly being maintained (Reilly et al., 2018). As the Solar food train will be the totally new initiative taken by the entrepreneur, therefore, it can be assumed that this imitative will be appreciated by the government as well as citizens in Australia.
Management team
Increasing competitors in the market has created challenging situations for the entrepreneur. On the other hand, food safety related strict regulations introduced by the Australian government are hard to be followed. Getting the skilled labors for the business is also very challenging.
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In the words of Baker (2014), effective marketing strategy can play a significant role in terms of grabbing the attention of large numbers of customers. In the current scenario, due to availability of the products and services in the market, the customers have become highly demanding (Davcik & Sharma, 2016). In this situation developing a strong brand image has become important for the new business (Taoketao et al., 2018) In order to grab the attention of the customers and developing the public relationship strategy, the small marketing campaign will be introduced in most of the popular places in Melbourne. On the other hand, through Facebook, Twitter and Instagram, the restaurant will be introduced in the market. In case of direct advertising, the printing advertisement practices can be introduced. In order to maintain the position in competitive marker, 10% discount will be provided in the first day to opening. On the other hand, for bringing the attractive Look of the restaurant, its interior design will be based on the Australian tourism attraction places. It can be assumed that with this initiative, it will represent Australian culture in better manner to the global visitors.
It has been identified that the business will follow Sole proprietorship business strategy as it is very simple to operate. With the flexible management practices it will be easier for the organization to deal with the challenges in the market.
Conclusion
In the study, it can be concluded that the concept Solar food train restaurant is very impressive and environmental friendly initiatives taken by the entrepreneur. Analyzing the current food market, it can be said that the initiative of the entrepreneur can be benefited due to increasing market size. On the other hand, as the Solar food train restaurant is environment friendly initiative taken by the entrepreneur, therefore, it can be said that it will be able to grab the attention of government and customers. The business plan has targeted the middle class and upper middle class people in the reasonab; industry. Before developing the business plan, the entrepreneur has done research on the market, where it has been identified that Solar food train is not new concept for the Australian people. However, identifying the loopholes of the other organizations, the entrepreneur has decided to introduce the 50 seats capacity of the restaurant. Analyzing the challenges of the business it has been identified that due to its reasonable facilities and increasing competitors in the market, the business initiative can face tough challenge.
Reference and bibliography
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