Royal Dawat Restaurant – A New Green Concept Restaurant In Oman

Target Market

Environment-friendly green restaurant is a new concept in Oman. This restaurant will have rooftop facility along with outside seating availability closed to nature. The restaurant will offer global cuisines like Chinese, Indian, Continental and local Oman dishes. The speciality of the restaurant lies on the rooftop facility as this restaurant will be on the roof of the 8^th storied building. In recent time, the idea of ‘green living’ is coming to trend; the restaurant will have commercial interior and exterior to the concept of ‘going back to nature’. Sustainable and very creative materials will be used to decorate the interior and exterior. The floors are expected to make with woody plants and tiles. This restaurant will have emission control system at kitchen and the waste management system so that it does not harm the nature. The venture will provide online order and ‘take away’ option. The name of the restaurant will be ‘Royal Dawat Restaurant’.

• To gain profit from the second year of operation
• To create a strong customer base in Muscat area
• To establish a 5% market share at the end of 2020
• To make a strong online presence on social networking sites

The new venture, Royal Dawat Restaurant will operate a 2.400 square foot area within a walking distance from Majan College in Muscat. The location of the restaurant is in Darsait and many young individuals from various multi-ethnic academic communities live in this place. Therefore, the location of this place will be suitable for a business to start. Darsait is a residential locality in Muscat and it is a beautiful area in Muscat. In addition, ownership of the business will be the sole proprietorship. In case of sole proprietorship, the owner will run and own the business in which there will be no difference between the legal entity of the business and the owner.

As stated by Dietrich et al. (2016), the value proposition is the clear statement that describes how the services or the products can solve the needs of the customers or to improve the situation and deliver the specific benefits. In Darsait, there are many restaurants those offer an excellent menu to the customers. The customers can expect to have the best cuisine with a rich taste. The customers will get fresh Chinese food and Indian dishes. In Oman, Chinese food and Indian dishes in rooftop restaurant are scarce; therefore, Royal Dawat Restaurant will offer a new experience to the customers. In addition, environment-friendly green restaurant concept is new in Oman market; therefore, the approach towards social-entrepreneurship will attract the customers. Moreover, the employees will be trained to provide the customer satisfaction. The guests of the restaurant can enjoy the rooftop view with scenic beauty. There will be two sections in the restaurant, one section will be rooftop with an open roof and another section will be covered with a glass ceiling. The restaurant will provide quality food and it will follow the Food Safety standard of Oman.   

Competitors Analysis

Figure 1: Logo designed for new restaurant

(Source: Self-developed)

As stated by Armstrong et al. (2015), market segmentation can be defined as the process of segregating market of potential customers into different groups based on different characteristics. There are four market segments; geographical, demographic, behavioural and psychographic. Geographic segmentation targets the customers with the region, urban and rural. In addition, demographic segmentation is about targeting the customers based on gender, age, socio-economic group and occupation. Behavioural segmentation is about targeting the customers based on the rate of usage, benefits sought, loyalty status and readiness to purchase. Psychographic segmentation is about targeting the customers’ personality, lifestyle, attitudes and class.

Primary target market: This Royal Dawat Restaurant will primarily target the demographic market segment; the young generation aged between 18 and 28. Majan College is near to the restaurant and the management is thinking to have large numbers of customers from this college. The young generation will like the scenic beauty and the ambience of the rooftop. This young generation must belong from the upper middle-class society. These target customers are aware of the advantages of healthy diets and pay more attention to nutritional facts. The young generations are the ones who care more about appearance and the pricing.

Secondary target market: Royal Dawat Restaurant will target the behavioural segment. In this segment, the organisation will attract the professionals who can do their informal meetings and client meetings in this restaurant. This restaurant will provide excellent ambience. The professionals find the place to talk in serene place; they want to have light food and Wi-Fi. This target market is ready to make a purchase from this restaurant.

Market overview

Oman is the Middle Eastern nation and this country has about more than 3 million populations. Muscat is the tourist destination for travellers and there are many hotels and restaurants in Muscat. However, expats and Omanis complaint that people do not have much restaurant choices. In 2013, McDonald’s first opened its outlet in Salah. After that, Yum and Pizza Hut came to Oman. Omanis like to eat outside as the shopping malls are not just for the marketing purposes, the people like to eat from the small restaurants and food outlets. Political condition is stable now for Oman and the people have disposable income in hands. GDP rank is 64^th and in Purchasing Power Parity (PPP); GDP rank will touch 74^th. GDP growth of Oman is 2.9% and the GDP per capita income is $43,800 (Aaronallen.com 2018). Labour force of Oman was 968,000 in 2017 (Al-Mawali et al. 2017). Therefore, the economy is getting stronger with time and Gulf Cooperation Council is expected 7.1% annual increase of restaurant industry in Oman (Hakro and Omezzine 2017). The restaurant industry in Oman is expected to reach $197 billion by the end of 2021. Food and beverage segment is characterised by the international players and they import the food through distributors. Omanis started believing in the concept of dining-out and among the young generation, the habit of using online food delivery has been increased. This rising trend is booming among the population and it will influx with exponential rise of the eating out.

Business Structure

Muscat is burgeoning the dining scene and Muscat’s restaurant industry is one of fastest growing sectors in Oman. In Muscat, the recent trend is themed dining. This new venture will be opening at Darsait.

Table 1: Competitors analysis

(Source: Self-developed)

Daily operations

This new business venture will open for 7 days in week for lunch and dinner.

Monday-Friday (From 11 am to 11 pm)

Saturday and Sunday (From 10 am to 12 am)

The new business venture will be maintained by the entrepreneurs. The owner of the business will be on the top and there will be two senior managers of the restaurant. One of the senior managers will control the staffs, security guard and waiters and another senior manager will control the kitchen staffs and inventory as well as supply chain management. The business structure will follow the horizontal type in which the communication flow will be from top to bottom. Horizontal business structure gives the benefits of fewer levels of management between the employees, executives and managers (Anderson and He 2015).

Figure 2: Proposed business structure

(Source: Self-developed)

The managers of the restaurant will manage the team within the organisation. There will be total 15 staffs at the initial stages and 3 kitchen staffs. In addition, the restaurant will have the provision of 45 seating capabilities in which 30 seats will be kept at rooftop area and 15 seats will be kept inside of the restaurant. The managers will provide training to the waiters and staffs of the restaurant so that they can work perfectly and the guests will have the best satisfaction in terms of behaviour and the taste of cuisine. The staffs will have left on roaster basis and the senior manager will make the weekly roaster. In one shift, there will be 10 staffs to serve the customers.

Royal Dawat Restaurant will take the supply of raw materials from the local suppliers. The suppliers will deliver the raw materials in every second day and the raw materials will be managed through inventory. Royal Dawat Restaurant will take the supply of flour from Oman Flour Mills and vegetables will be taken from the local vegetable market. The equipment of new restaurant will be purchased from the Middle East and South Asian countries.

Core marketing strategy

Product: This new restaurant will provide rooftop facility and there will be a touch of green on every side of the restaurant. Moreover, the globally acclaimed chefs will cook the food of the restaurant. Mainly, Indian, Chinese, Continental and local Oman dishes will be available in the restaurant. The restaurant will provide food dishes in low light ambience during evening and ice-cream will also be available for the guests. The rough menu of the restaurant will be like:

• Beef egg roll
• Vegetarian egg roll
• Special Green Chinese Roll
• Shrimp salad roll
• Shrimp toast
• Fried jumbo shrimp
• Chicken Rangoon
• Fried chicken wings
• Barbecue ribs
• Crispy fried noodles
• Fried shrimp balls

• Crispy shredded beef in chilli sauce
• Beef with green peppers
• Sweet and sour prawns
• King prawn fried rice
• Beef in oyster sauce
• Chicken chilli with garlic
• Beef with broccoli
• Chow Mein and Crispy Skin Duck
• Tsao Chicken
• Fried rice
• Kung Pao Chicken

• Shuwa
• Dates
• Kahwa
• Meshkak
• Halwa
• Harees
• Mashuai
• Omani kebab

Menu

Price: The restaurant will take the low pricing strategy as this will be a completely new venture for them.  At first, the management will keep the price low so that the target customers can avail the food. Low prices strategy will provide a competitive advantage to the organisation and the target customers will be attracted towards the organisation. The price of the restaurant will provide higher profitability as competitive pricing will help to sell more products. The low price will help to increase market share as lower prices will draw more customers. Low pricing strategy will bring word-of-mouth publicity and the organisation will have capital growth.

Place: Royal Dawat Restaurant will start its journey in Darsait, in Muscat. The place will be appropriate for the new restaurant as Majan College will give sufficient young customers. The young generation will be attracted towards the rooftop feature and the lower price will give extra value. Royal Dawat Restaurant will also provide service of online order and the delivery persons will be available for the organisation. In addition, this new restaurant will take the supply from the simple distribution channel. Fewer vehicles will be used in the supply of the raw materials so that the atmosphere gets less emission.

Promotion: The restaurant will provide an amazing menu to the customers with right pricing. In order to increase brand awareness; the management of the organisation will start with Out-of-home advertising. The hoarding and billboards will be used as part of the promotional campaign. In addition, the organisation will use the promotional campaign in front of Majan College so that the students get to know about the new venture. In addition, Royal Dawat Restaurant will also start the social media campaign and they have to open the official social media pages on Facebook, Twitter and Instagram. The management can offer discounts for the early birds. The new restaurant can offer the ‘happy hours’ on weekends and the customers will visit the stores often.  

The owner will calculate the sales forecast for first three months.

Table 2: Sales Forecast of first three months

(Source: Self-developed)

Entry strategy of the organisation will be product development as product development will provide a framework for making new products or develop the performance, quality of the existing products and the cost of the products. The new venture will get the help of achieving the business objective through the selling of the more to existing customers. This entry strategy will help the organisation to win the business over the competitors. Royal Dawat Restaurant will take the market product development strategy initially. The new restaurant will offer Indian, Chinese, Continental and local Omani dishes. The global cuisine is rare in Oman and the customers will get attracted through this. The product development strategy will be helpful for the organisation as it makes the food dishes different from other restaurants.

Pricing

 The growth strategy of the organisation will be cost leadership as new venture will give food dishes at low cost. Low-cost leadership will help the organisation to have a large customer base. The new business wants to have a large number of customers and large market share of the business. The growth of the business can be gained through the low-cost leadership as the business can gain higher profit margin. The organisation can have increased market share as the demand of the customers will increase through this. In addition, the management has already decided to take the strategy of diversification of the business when they offer social responsibility. The whole business concept is environment-friendly and it will not harm the society. The new business can gain sustainability through low-cost leadership and during the tough economic condition and rough business position; the organisation can gain the provide price potential through low pricing strategy. A new business can get the major benefit of more capital resources through fund growth or further investment.

Profit Projection

Identification of resources

Tangible resources:

Physical resources will be identified as good location and building of the restaurant. This restaurant will be on the rooftop of the building. The building of must be designed through the layout of the plan and building design make the property accessible. Financial resources will come from a bank loan and the personal savings of the owner of the business.    

Intangible resources:

Technological resources like software to maintain the database of the organisation, the equipment to make food and the equipment to prepare the foods are needed. Food services providers are available online and Royal Dawat Restaurant can get service from the online platform. The owner will need the human resources in order to run the restaurant. The owner will recruit 15 staffs, 3 kitchen staffs, 2 assistant managers and 2 senior managers. In addition, the reputation of the restaurant can be promoted through advertisement on out-of-home, social media campaign and through using online platform.

The total budget requirement of the business is OR 4, 02,700. The owner will take bank loan from National Bank of Oman. In National Bank of Oman, there is a personal loan section; from where the owner can take the loan. The owner needs to opt high loan amounts to take a large amount of loans from other sources as well. The banks do not easily agree to provide loan to restaurant businesses have a high failure rate. The owner can try to get the loan from the Small Business Association (SBA). The owner has some personal savings and the friends and family will also provide monetary help to open the restaurant. 

Location

Risk 1: Technological disruption: In the restaurant, the equipment may face the issue of a sudden disruption. In addition, any kind of financial software may get crashed and all the financial data may get lost. In this scenario, the restaurant will lose all the data that are stored in the system. In this scenario, the organisation will lose the data and the process of preparing will get hampered. Royal Dawat Restaurant, therefore can install a security camera and they can take back up of the source.      

Risk 2: Health and Safety codes: Royal Dawat Restaurant needs to do a routine check of the equipment and maintain all the safety codes. The organisation should check all the local health and safety measures in order to avoid any food spoilage. The problem of sudden accident from health and safety will create a brand hazard.

Risk 3: Property Loss: Royal Dawat Restaurant can face the issue where they have to relocate the business or the rented property may get lost. The business needs protection from the unexpected loss. Business owners’ policy must be known by the organisation.

Risk 4: Liability: New business can face the risks of Lawsuit for any accidental case or any patent-related case. The business owner needs to carefully develop the business practice in order to mitigate the issue. Professional liability policies also offer the coverage for the business it is exposed to.

References

Aaronallen.com. 2018). A Brief Overview of the Hospitality Industry in Oman. [online] Available at: https://aaronallen.com/blog/hospitality-industry-in-oman [Accessed 10 May 2018].

Al-Mawali, N., Hasim, H.M. and Al-Busaidi, K., 2017. Modelling the impact of the oil sector on the economy of Sultanate of Oman. International Journal of Energy Economics and Policy, 6(1), pp.23-34.

Anderson, P.M. and He, X., 2015. Consumer behaviour in East/West cultures: Implications for marketing a consumer durable. In Proceedings of the 1996 Multicultural Marketing Conference, pp. 3-8.

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Bernstein, S. and Sheen, A., 2016. The operational consequences of private equity buyouts: Evidence from the restaurant industry. The Review of Financial Studies, 29(9), pp.2387-2418.

Dietrich, T., Rundle-Thiele, S. and Kubacki, K., 2016. Segmentation in Social Marketing. Springer Singapore:.

Foodandhospitalityoman.com. 2018 Food & Hospitality Oman. [online] Available at: https://www.foodandhospitalityoman.com/ [Accessed 10 May 2018].

Hakro, A.N. and Omezzine, A.M., 2017. Oil Price Effects on Exchange Rate, Output and Consumer Price: A Case Study of Small Open Economy of Oman. Journal of Economic Cooperation & Development, 37(3), pp.12-23.

Newspaper, M. 2018. Oman Restaurant Awards 2015: Big night for Oman’s hospitality sector – Oman. [online] Muscat Daily News. Available at: https://www.muscatdaily.com//Archive/Oman/Oman-Restaurant-Awards-2015-Big-night-for-Oman-s-hospitality-sector-4mvl [Accessed 10 May 2018].

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