In the restaurant industry, knowing how to strategize is something a successful business must have. Part of that strategy is recognizing the best location to begin your restaurant based on a few variables. Throughout many North Florida, many towns and cities are home to southern barbeque restaurants, as they are a staple in southern culture. In Melrose, a decently populated town that exists on a major highway, a barbeque restaurant is absent. This lack of a barbeque styled restaurant may be costing Sonny’s BBQ potential profit. We believe by opening a Sonny’s franchise in Melrose, Florida, Sonny’s may be able to significantly benefit from the void of the BBQ industry in this area. This idea may seem like an obvious must, but before making …show more content…
After determining the option that will best meet our needs, two potential locations have appeared that pass our standards. Both of these properties happen to be located across the street from each other, which is close to the middle of town, so both locations will receive the same amount of traffic and view. The first option, a former coffee shop (854 SR 21), is a small 995 square foot building that is made to best suit bars (Blake, 2013). The second option, an operating pizza shop (319 Wynnwood Ave), is an established restaurant location up for sell (Blake, 2013). This 4444 square foot, two story building already containing a kitchen that meets health regulations, including a walk-in cooler. For the purposes of opening a Sonny’s BBQ, the larger of the two will be needed to operate at maximum capacity. Though the coffee shop costs 250,000 dollars compared to the 400,000 pizza shop, the extra area and already established kitchen will advance abilities to make a profit …show more content…
The demographics of Melrose represent an ideal spot for a Sonny’s BBQ. Melrose is made up of rural people that BBQ is the stereotypical target of. This is even better for our company because typically you see that rural people appreciate quality southern BBQ more than urban people do. The closest big city to Melrose would be Gainesville, FL which is only 20-minute drive away. According to City-Data.com, In Gainesville, there are close to 128,000 people with an average income of about 31,000 dollars a year (Gainesville, Florida, 2008). While zipcode.org reports that only about 6,000 people live in Melrose, the average income per household is approximately $37,000(City of Melrose, FL Zip Codes, n.d.). The website also states that a large portion of the population of Melrose consists of people in their late 40’s and early 50’s. People in this age range are usually seen to be the largest partakers of southern BBQ, establishing an initial consumer base. The numbers look promising enough for the potential restaurant, it is possible that the majority of customers will come from close towns or from travelers, since it will be right off a state road. Though the population of Melrose will not be where the majority of this restaurants traffic will come from, compared to Gainesville the income average appears stable. One potential threat to our restaurant could come from crime as bestplaces.net shows (Crime,
Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.
In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.
Castle’s Family Restaurant has eight restaurants in the northern California area with approximately 300–340 employees. Most of the employees are part time, with approximately 40% of them full time. The operations manager, Jay Morgan, also acts as the HR manager and travels to each location each week to take care of scheduling, recruiting, hiring, and answering questions for the employees as needed. He also takes
Chick-fil-A is one of the most successful fast food restaurant establishments in the country. With over 1,300 locations in 37 states in the Southern U.S., they continue to grow the brand by expanding to new territories (Chick-fil-A Company, 2009, para 1). In 2008 Chick-fil-A has seen a 12.17 percent sales increase over the chain’s 2007 performance and a same store sale increase of 4.59 percent (Chick-fil-A Company, 2009, para1). Throughout the years Chick-fil-A has come up with many innovative ideas to continue expanding business and satisfying their loyal customers. One of the ideas was to offer different types of restaurant set-ups to cater to customer’s needs. The different restaurant set-ups include mall/in
Typically, consumers go out to eat not only for good food, but we also expect good services, fresh ingredients, proximity, and an atmosphere to match. My client is The Varsity Club Tavern in Morgantown, WV. Usually just referred to as The Varsity Club, but the tavern part gives a little hint to the overall feel of the restaurant. As you may know, taverns are places that sell beer and other beverages and some of the time food. The Varsity Club offers an extensive beer selection and
How may I serve you? This is the greeting everyone gets when they dine at a Chick-fil-A restaurant. The company's relentless pursuit to build relationships with its customers goes beyond chicken sales. As a leader or manager, scanning your organizations external environment for opportunities and threats will assist in keeping employees motivated and the customers loyal during turbulent times. This paper will evaluate the external environment of Chick-fil-A, determining the extent to which opportunities exceed threats, or threats exceed opportunities.
Some of the key reasons for the dismal profits are primarily due to lack of control, and inexperience from both Julie and Mary, the co-owners and managers of Café Bijoux. The reasoning behind this claim is that a business that is not seen profitable is usually not. In addition, a real restaurant sign is not up and visible. A sign is a major gateway to success in a busy congested market which sees more than eleven businesses surrounding a one km radius. However, Julie and Mary have been awaiting the funds to put up a sign, which has seen negative results due to lack of
...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16
While this region’s high population offers a great deal of potential for Firehouse subs, it will also be difficult to penetrate the market. This is because with a heavily populated area, such as one of the numerous cities in this region, has been saturated with restaurants. Many would think of direct competition from Subway or Quiznos, but there are other forms of competition within the restaurant industry. To gain a foothold in this region, the company will have to differentiate itself from the competition. The most relevant piece of information
Demo’s BBQ is a small family- owned business which sells premium brisket and pulled pork sandwiches accompanied by a wide variety of slaws to top your sandwich. Demo’s BBQ currently runs with 8 employees, these employees face a variety of scheduling challenges as most of them are soldiers working second jobs, add to this that at times some of these employees are in the filed or even deployed overseas. The intent of this plan is to focus on ways the company can grow not only in regards to the business itself, but also in regards to customer relationships as well as with developing and implementing new products and opening new store locations.
Bruce Melhuish has finished his first year as a franchisee of Sunset Grill and has had some difficulties. He is staying focused on differentiating his restaurant due to his clientele. Bruce’s Business-to-customer experiences create added value by engaging and connecting with the customer in a personal and memorable way. (Fitzsimmons, Fitzsimmons, & Bordoloi 2014). He has done this by deviating from the franchise model by adding personal touches to the restaurant such as a unique set of salt and pepper shakers, serving a small
The cost factor is one of the major concerns for Benihana’s growth. Each new unit costs $300,000. In order to reduce the startup cost, Benihana must find revisit its operating model and re-evaluate what is the most important to the customers. Looking back at exhibit 4, majority of respondents valued quality and taste of the food, service and preparation of food. These are the qualities that truly separate Benihana from other restaurants. Changing Benihana’s staffing model, including training, and the use of materials and labor from Japan, will most certainly minimize new unit cost.
The strengths of the business would be having knowledgeable, trained, educated, and experienced staff. Lavish décor and great food and prices will add to those strengths. Location that is easily accessible and close to home for most of the guest. The restaurant would offer discounts to the college students and the travelers that are passing through, having a good reputation will be a strength and help build clientele. According to the data there is no other restaurant in the area with the same concept. The weaknesses of the business would be targeting multiple segments and trying to satisfy all of their wants and needs. Another weakness would be trying to keep the restaurant as trendy as possible but would be difficult with the changes in trends, what’s hot today may not be the next. The area is not completely in need of the type of restaurant and lounge in mind, therefore getting people to be open to and supportive of the idea is a concern. Poor reputation among customers by not giving a good first impression or not meeting their expectations would be a weakness for the company. Other weaknesses may include high costs, lack of access to key natural resources and distributors. The opportunity is that because of the current recession it would be the optimum time to open a business that would create jobs. Restaurant space can be negotiable and very
For this Business Strategy Report, I have selected a restaurant chain named Nando’s. It was established in 1987 by two friends, Fernando Duarte and Robert Brozin (Nando’s.com, 2017). Although being a South African brand it has Portuguese influence and the restaurant chain depicts these designs. Nando’s specialty is flame-grilled chicken spiced with their unique selection of marinade sauces and spices ranging from mild to extra hot and for those individuals not into the hot stuff, there’s a lemon and herb option. It also has other selected food options to choose from in their attractive menu. Its niche market is working middle class male and female customers who enjoy spicy food and casual dining. It also caters for kids and families.
Great food, high-traffic location, and super decor -- all are important to the restaurant business. If you take a close look at what