Part A
Personal Work Priorities and Professional Development Management
Frankly, most of restaurant managers need improvements. These included: soft or people skills, leadership skills, strategic skills, international orientation, entrepreneurship, broadening beyond technical specifications, relationship-building skills across organizations, and utilization of diverse human resources. There are numerous studies and specialized literature identifiying frontline managers and supervisors as its major concern, concluding that the majority of them are not being properly prepared for the challenges they face (see for example, Griss & Lilly 1996). Following these reports, one can develop a set of competency
standards for frontline managers (FMI; frontline management initiatives) which included: manage personal work priorities and professional development; provide leadership in the workplace; establish and manage effective workplace relationships; participate in, lead and facilitate work teams; manage operations to achieve planned outcomes; manage workplace information; manage quality customer service; develop and maintain a safe workplace and environment; implement and monitor continuous improvements to systems and processes; facilitate and capitalize on change and innovation; and contribute to the development of a workplace learning environment (Griss & Lilly,1996)
Thus, some of the highly rated areas of skills and knowledge are:
leadership abilities; skills and processes in transmitting ideas; staff motivation; dealing with conflict and stress; concepts, implications and laws of industrial relations; computer applications in the health services; conflict resolution; personnel administration; and analysis of financial information.
Top professional development priorities are: leadership, negotiation, communication, financial management, problem-solving and decision-making. Although all of aforementioned qualities are highly required for, say, a bank top manager, they are perfect fit for literally any king of business, including restaurant business.
Marketing Plan
Marketing is more than just how you might advertise your restaurant (Shock et al., 2004). Marketing covers everything from the number of people who might visit your restaurant, to your competition, pricing and charitable activities. Your marketing plan will define your industry, discuss trends, outline the need you will fill, create the target customer, and examine your competition’s weak spots.
Market Analysis
A marketing analysis looks at issues such as food and health trends, competitive influences, economic conditions and population characteristics that affect your sales volume. Analysis is really a series of questions you ask and answer through research that supports your claims.
Thus, it should be outlined straight away that when you detail the food service industry, you will need to determine whether:
1. Your food offerings will be in or out (trends).
2. People will be dining out more or less (counts).
3. Health concerns will keep people away or bring them in (organic ingredients, low- carb diets or Mad Cow disease scales).
4. Competition will increase (independents or chain restaurants).
5. Populations will shift (people move in or away, age, have children or die).
6. Economic forecasts predict limited dining budgets (sales volume and check size).
7. Speed vs. service importance views shift (alters service styles).
Talk about the long-term prospects for the restaurant industry and for your type of restaurant (Shock et al., 2004). Address potential social and economic changes that will impact the food service industry. For example, the aging of America is a significant demographic change. How will this affect your menu offerings? facility? location? decor?
Your Territory
A restaurateur’s first step would be to take a local map and outline the neighborhoods surrounding your proposed (or existing) location. A restaurateur can also select commercial areas where he will draw workers from and popular commuting routes that bring hungry people past your door. Place bold dots where your competitors are located so that you can view the marketplace and how it is served.
Once the geographical territory is determined, the restaurateur can obtain demographic data that describes what people live and work in that area. Demographic data includes:
1. Affluence-discretionary income for dining out or budget-wise fast food.
2. Ages-young or elderly.
3. Marital status-single or married.
4. Family size-married with children, single-parent families.
5. Gender- male or female.
6. Ethnicity -how they affect food preferences, cultural
habits and expectations.
7. Sexual orientation- gay and lesbian singles/ couples.
8. Education levels-high school grads or advanced
degrees.
9. Local wage levels – professionals or working class.
10. Seasonal or stable population -tourist influx, volume
cycles.
11. Lifestyle preferences- where do the locals like to dine?
Customers
Without paying customers, there is simply no reason to open your doors. A powerful tool in developing your restaurant marketing concept is to create a customer(s) profile based upon geographic, demographic and economic data and personal observations.
Profiles are descriptions of your ideal customer and demonstrate that they are located within your service area. You will also need to discuss why you are selecting a specific location, whether your food and service style meet the expectations of customers and how this affects your pricing structure.
Ideal Customer
By ideal customer, I am referring to an imaginary person who would like your restaurant, appreciate your food and return frequently. Looking at the population in your community will help you define this person by average age, economic status, gender, family size, transportation method and more.
– Your target restaurant/bar customer might be a young professional, most likely male, with above-average income, driving a sports car, nice dresser who dines out three to four nights a week.
– Your target fast-food restaurant customer might be young families (single parent?) with children under the age of 12, rushing home after work, needing a fast to-go meal that can be consumed at home at value pricing.
– Your typical salad bar customer might be female, 22-45, who visits before shopping, dresses elegant casual, and looks for healthy choices but still interested in ample proportions.
– Your desired coffee shop customer might be on vacation at a nearby major resort area. Mostly weekend visits, dresses according to season (skiwear or sun wear) interested in leisurely dining featuring local specialties; a dessert is a must!
By defining your ideal customer(s), you will have a mental image on which to build your restaurant. You will know whom you should talk to in your advertising the type of decor that would attract them, and the food they would like to find in your restaurant.
Customer’s Needs
This section is an assessment of what customer needs your restaurant will be filling. For example: you are opening a coffee shop/cafe that caters to the local theater crowd because there are no late-night dining venues in the area or you are opening a fast-food restaurant next to a high school full of hungry teens.
Your products and services should be developed and presented to customers as a solution to their needs. People need to eat for survival; however, when it comes to dining out, their needs go beyond hunger pangs. Here are some needs (physical, emotional and financial) that your patrons have:
– Hunger – physical hunger.
– Cravings – an emotional need (hunger) for a specific food.
– Convenience – easy to buy, minimal hassles, come-as-you-are dining.
– Affordable – pricing that fits customers’ perceived value and/or budget.
– Stress-relief – provides relief for hunger while life easier for customers juggling multiple demands, one less thing to worry about.
– Pleasure – entertainment, great tastes, refreshing beverages, comfortable surroundings that reward people.
– Attention – a way to show off, demonstrate class or wealth, to see and be seen by others and dining out as a reward (self-attention).
– Fellowship – a place for people to meet, to share conversations over drinks and a meal, a dating destination.
– Protection – food safety, quality, nutritional value, warding off fear for self and family.
Solutions
The second half of the need/solution equation is how you will satisfy your customers’ needs. These should be posed as solutions. There are some suggestions on how you might
present yourself as the solution to your customers’ needs.
1. As a restaurant, you serve food; so you can satisfy your customers’ hunger pangs. Fill the mind with ways to fill their stomachs.
2. Cravings arise from memories of smells, tastes, sights and good times and become a need that must be satisfied. While these are personal emotions, food trends often follow these cravings such as comfort foods (meatloaf and macaroni and cheese casseroles) during stressful times.
3. Convenience can mean location, style of service, hours of operation and delivery service. Make it easy to buy with credit cards/ATM or pump up your service to reduce wait times.
4. Affordable means different things to different people. Does your food pricing fit in with the economic picture of your community? Affordable also means more than rock-bottom pricing; it means perceived value. For some people, a $9 burger with all the trimmings would be perfectly acceptable; for others they would feel that they were being robbed! Is the price appropriate for the quality of ingredients? Does your customer service add value to the meal?
5. Hungry kids, busy schedules, frustrating traffic delays are all part of modern-day stress. Dining out is now a form of stress-relief. Being convenient and very affordable can be seen by a busy parent as one less thing to do when they get home. Satisfying the needs of children is a powerful way to bring in families. McDonalds has created an empire by stimulating children’s wants, so parents will respond by dropping in.
6. Although, more people than ever eat away from home, pleasure is still a primary reason people dine out. Dining out is a way to reward yourself and others. The pleasure of dressing up for a special occasion or meeting friends for appetizers and a beer is a powerful motivator.
7. Attention (vanity) is a major influence on purchasing decisions, from shoes to homes. People need to feel good about themselves, and making them feel pampered is a great way to do just that. Another factor is the bolstering of social stature – the see-and-be-seen factor. Dining out also gives people a way to show off to others.
8. Fellowship offers patrons another reason to visit your restaurant. Social gatherings at restaurants are a great way to connect. Think about providing diners with an atmosphere that they want to gather in, celebrate special occasions and mark important life events. A friendly environment and staff gives road-weary business travelers and lonely customers a chance to connect with other human beings.
9. Fear doesn’t drive people to eat out but it does factor into their restaurant choices. Fear (and its cousin concern) manifests itself with patrons making food choices because of the health factor. Providing a solution that frees them from fear is a great way to tap into this emotional need. Whether you promote organic ingredients or low-fat menu items, you are providing them with one less thing to be fearful about.
Executive Summary
What sets your restaurant apart can also be a strong way to capture your fair share of the market. Uniqueness is a great value to explore and include under your plan’s competition
section. Describe what makes you special. Do you have a food specialty or an entertainment factor that brings in people? Sometimes what sets you apart from your competition are mundane things like longer hours, free parking or kids-eat-free specials.
Part B
Business Plan
The value of strategic behavior, allowing a company to survive the competition in the long term, has increased dramatically in recent decades. Accelerating changes in the environment, the emergence of new demands and changing the position of consumers, increasing competition for resources, internationalization and globalization of business, the unexpected emergence of new business opportunities offered by advances in science and technology, the development of information networks that make possible the lightning spread and receive information, the general availability of modern technology and the changing role of human resources, as well as a number of other factors have led to a great increase in the value of strategic management.
However, each company is unique in its own way, and therefore, the process of developing strategies for each company is unique as it depends on a firm’s position in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of its goods or services rendered by it, the state of the economy, the cultural environment and various other factors. Thus, in order to develop a strategy for a particular firm, first thing that should be done is to conduct a strategic analysis of its internal and external environment. The issue and the subject of this reference work.
The food industry is one of the main spheres of services today. The main activity of catering is the preparation of products, implementation of food and beverage, as well as recreation and entertainment. Assortment policy is one of the most important places in the marketing business. Assortment policy affects the marketing of products, and its effectiveness depends on the financial performance of a company and a company’s image in the market.
The particular marketing plan is aimed to present the marketing plan of a restaurant.
The relevance of the subject involves a number of factors:
– Competition in the food services industry is growing;
– The need to promote and encourage continuous service;
– Requires proper planning of marketing policy of a company.
The aim of the course work is the development of measures to improve the assortment policy of a restaurant in Australia.
Performance Objectives
An excellent result is when:
1. You know the menu well and the key ingredients and are able to assist customers in making choices by making suggestions.
2. You give every customer that you serve the best smile, good eye contact, and full attention.
3. You are alert and quick without giving the appearance of being hurried.
4. You pay close attention to the appearance of the food being served to ensure it is appealing to the eye and served at the proper temperature.
5. You are helpful to others and give full cooperation to fellow workers and management.
Written performance objectives should be concise, limited to a single page, and in plain, easy-to-understand language. Tailor the most preferred objectives for almost any job with a brief statement following the words “an excellent result is when.” Of course, time and attention must be applied to the “how to” training as well, but it is the results of that training that is the ultimate objective. Clarity is of utmost importance so results are easy to observe and measure. Excellent job performance is what managers should expect from their employees, but unless there is some degree of personal interaction between management and employees on a regular basis, these objectives are hard to achieve. They should not be left to chance by handing out a few written objectives to an employee without personal coaching and expecting automatic high performance. The importance of training cannot be left to chance. Management must take the time and believe in the high standards it is trying to communicate for employees to accept these goals as their own. Unless there is some personal involvement taken by management, written performance objectives do not always produce exactly what is expected.
Key Stakeholders
According to Mendelou’s model, all interested parties can be classified according to two variables: their interests and their power. The stakeholder power determines its ability to influence the organization. The stakeholder interests are determined by the desire to influence the organization. Thus, the scheme of the stakeholders in the restaurant represents an attempt to protect the organization by using the uncertainty of receiving means for predicting effects of stabilization. They are the methods of management stakeholders as market research, the creation of special units that control the sphere of interests of important stakeholders (e.g., rule of law, control of environmental safety), efforts to achieve conciliation, advertising and communications firm with the public etc. Internal stakeholders include managers, employees, owners and the board of directors or board of directors, which represents managers and owners. One of the most significant internal stakeholders is the sole executive body. The general interaction with internal stakeholders is that their interests are often systematically contradict each other (the desire for greater autonomy of management, the need for shareholders more control, greater willingness of staff salaries, the need to reduce management costs, and so on). These contradictions can be effectively solved by linking the interests of different groups together (such as the construction of incentive system tied to the outcome of the company as a whole).
Productivity and Performance Targets
Promotion
In order to attract guests to the restaurant during the hours when the load of the hall is a minimum, the restaurant will use a marketing technique “happy hour.” At that time, for example, guests are offered a special menu with discounts on individual dishes or order one – two mugs of beer next offer for free.
Restaurants are widely used by other types of discounts.
– Buying one dish, the second restaurant visitor gets free, “two for the price of one;
– A free meal at a certain order, for example, cup of coffee with dessert or salad to the main course;
– Discounts on a certain order value (when the percentage of discount depends on the order amount).
Product promotion is advertising, personal sales presentations, sales promotion of products with the help of restaurant coupons, prizes, raffles, special events and discounts, “club special events,” gift certificates. Personal advancement is aimed to provide dining sales presentations to potential clients, conducted in the following sequence:
– opening presentation;
– involvement of the client in its process;
– direct-presentation;
– closing presentation.
For these purposes, advertising messages as a means of personal promotion: restaurant manager sends letters to businessmen and newlyweds with an offer to attend the institution. A popular form of service restaurant promotion are coupons, a method of discount offers views of the new dishes on the menu, as well as increased marketing of a particular dish. Using coupons carries some negative consequences as coupons involve regular discounts on the same dishes, visitors psychologically begin to perceive the discount price as a regular and therefore, refuse to buy a dish at its old price. Prevent the occurrence of such sentiments helps the system of constraints: each coupon specify an expiration date stamped his actions or the warning “does not work on weekends.”
The main promotional strategy the restaurant is that the waiters and head waiters are always in direct contact with visitors should be well informed about the other form of the successful promotion of restaurant services, based on the receipt of prizes for guests to purchase the complex: one souvenir of the visit.
Porter’s Analysis
Power of Buyers
A study was conducted on the basis of the structure of consumers’ demographic factors, which revealed the following picture: the data on the gender and age structure shows that most of the restaurant patrons will be men (71%) in the age group of 29 to 35 years. On average, the total number of respondents is 65% and higher than the number of women by 54%. It is due to the fact that people of this age are usually already successful businessmen, hence people with good wages. The age structure of the study sample is shown in Figure 1.
Figure 1. The age structure of the consumers
Thus, the potential customer of the restaurant is a male between the ages of 29 and 45. The study showed that most visitors use the services of the restaurant because it is convenient (27%). In addition, many (25%) like the quality of the services provided. However, the power of buyers is very strong because there are many factors due to which customers (the target audience) may have no costs when changing the restaurant. The power of buyers is manifested in a significant impact on the company, for example, by changing the sensitivity of buyers to price changes, respectively, to reduce the demand for the company’s products or even abandon it, or vice versa – increase loyalty to the company’s products.
Power of Substitution
The power of substitution is usually high because, despite the economic crisis, many people decide to open new restaurants, so that the competition with the opening of each new project becomes tougher. Availability of substitute products is a serious threat to the company as it may increase the propensity of consumers due to changes in prices, and therefore, delay some of the demand.
Power of Suppliers
The power of suppliers is low because there is a wide choice of providers (partners). Power of suppliers is that they can significantly affect the activities of the company, for example, by changing the price of the necessary resources, services, etc. The increasingly widespread practice of establishing long-term relationships between manufacturers and suppliers allows to introduce a system of supply “just in time”, which reduces storage and operating costs, accelerate the development of new models of components, to improve the quality of components and reduce the level of marriage, reduce the cost of the supplier and the purchase prices, respectively. All this increases a competitive advantage of the companies in the industry that effectively inter-exist with key suppliers. The suppliers are organizations engaged in wholesale trade, which meets the organization in terms of:
1. the cost of goods delivered;
2. guarantee the quality of the delivered goods;
3. delivery schedule of the goods;
4. punctuality and the obligation to fulfill the terms of delivery of goods.
Power of Competitors
The power of competitors is high because there are many factors for which consumers (the target audience) may not have any cost by changing the restaurant. For example, many restaurants are located near each other in the center; by changing the restaurant, people will not spend more/less time on something that would get to it, will not be spending more/less money on transport. According to Porter, the analysis of the existing competition is very important and is a decisive factor allowing to determine the current state of the industry. The author also claims that the competition more difficult, the more competition there is and the closer the ratio of forces. The emergence of new players in the market leads to higher levels of competition and thus lower profitability. Obviously, in order to prevent a decrease in profit, it is necessary to take measures for the difficulty and the creation of barriers to entry for new competitors. Competitive pressure from consumers also can range from significant to weak.
PETS-Analysis
Political and Legal Environment
Political factors are quite unpredictable and always pose a threat to the industry. The position of the organization can be complicated due to the new regulations on the sale of alcohol and tobacco products. Therefore, each large enough organization taking strategic decisions tends to have a clear idea about the programs and objectives of the various political parties, lobbying groups in the government, the attitude of the government towards certain sectors and regions of the country, the means of carrying out the policy of the government. It is extremely important to figure out how stable the government is and, as far as it is able to implement their policies, what the extent of public discontent is.
Table 1. Political Factors: Evaluation of Possibilities and Threats
Factors Threats and Possibilities
Changes in legislation;
Changes in laws and regulations, requirements for premises, etc. Threat
Changes associated with the changes in the development of small and medium businesses. Possibility
The threat from the regulatory authorities and administrations. Threat
Economic Environment
The sharp wage dynamics in the field of sales is characterized by the growth of the markets in general: there is a strong consumer demand for goods and services. In addition, the economy has changed over time making a significant contribution to the uncertainty of the environment. That restaurant will succeed which faster and more accurately predicts the change in the trend towards increasing or declining and showing the flexibility tends to adapt to the new economic situation. The state of the economic environment involves the analysis of the dynamics of key macroeconomic indicators, growth rate of gross domestic product, inflation, unemployment, real income, refinancing rate, rate of the national currency, and many others. The restaurant’s top menu dish is lunch boxes maid out of chicken or beef. Therefore, any changes in prices for meat will influence the price policy of the whole restaurant. Objectives and methods of the economic management of the country can influence the policies of the restaurant.
Table 2. Technological Factors: Evaluation of Possibilities and Threats
Factors Threats and Opportunities
The development of technological innovations greatly simplify the activities of the company Opportunity
Social and Cultural Environment
The social factor has a direct effect on organizational operations; statistics shows decrease of potential customers, which negatively affects the activity of the restaurant.
Table 3. Social Factors: Evaluation of Possibilities and Threats
Factors Threats and Opportunities
Migration:
According to statistics, the number of people immigrating to Australia was 32.9 million people in 2007, which positively affected the restaurant business in the region Opportunity
The increase in the pace of life Opportunity
The presence of the working population (potential customers)
Working-age population is 64.8% of the total, under working is 15.6%, and older than the working age is 19.6%. Opportunity
Within a given society people hold many beliefs and values. For the basic beliefs and values characterized by a high degree of stability. Thus, people who are used to a certain type of cuisine (Georgian, Chinese, Indian, Italian and Russian, for example, or maybe he/she a vegetarian) will visit the restaurants, bars and cafes, offering a menu of the food to which he/she is accustomed. The mentioned restaurant is presented in more Arabian cuisine, but if the customer looks for some other dishes, he/she is sure to find something to he or she likes.
To conclude, the analysis of the global macro environment the industry has shown that there are more opportunities than threats.
Financial Indicators
Pricing policy is an important element of the control system. It involves not only the determination of the price for the products, goods, services and works, but also the management of prices in different market situations. The pricing system of an organization should be designed in order to determine the most efficient way of setting a price the buyer is willing to pay, and also to investigate the possibility of the sale of products at a price that includes a profit. Pricing tactics of a particular restaurant provides the optimal response as an established and promising group of consumers is competitive enough. When determining the price, analysts are based on the evidence-based selling price structure. It also uses a multi-stage approach of forming the selling price. It allows achieving optimal results for the segmentation of the market and the range of market planning services. When developing a method of pricing in a restaurant, the following key factors are included:
Table 4. Pricing Factors
Micro factors Macro factors
Sales prices The degree of competition and its effect on prices
The cost structure of direct and indirect The state of demand for the products
General and specific objectives of the organization Dependence on suppliers of raw materials and semi-finished products
Experience pricing Demand structure and its dependence on the price
Degree of scrutiny of market State policy
Reaction of the sales workers
The following key points in determining the price policy of a restaurant should be taken into account:
1. The price policy is based on the estimated cost of the minimum possible price of the product, which corresponds to the lowest cost of production.
2. The price policy is based on the analysis of competitors’ prices determined by the average level of prices on food, drinks.
3. The maximum possible price is set for the dishes of high quality and unique advantages.
4. The prices, determined by demand and market conditions of the product, may fluctuate throughout the range from minimum to maximum prices. These prices change in different periods of the life cycle of the product.
5. Important from the point of view of marketing is to develop leadership in the pricing policy.
6. Targeted pricing is as follows: it is necessary to install on their services, such as prices and change them depending on the situation in the market to acquire a certain share of the market, to get the desired amount of profit.
Each way to identify the final price at which the product is sold has its own characteristics. In this regard, the optimal price optionally is the highest in terms of maximizing the profit from the sale of a particular product or service. Given the variety of factors in a particular organization, it can be considered that the optimal price suits the strategic and operational challenges of the economic entity the best. Overall, the restaurant is focused on customers with low and middle-income. The pricing policy in the restaurant is quite flexible and combines the capabilities to meet the discerning tastes of visitors without paying attention to the cost of a cup of really good coffee, as well as to meet the needs of visitors with estimated fairly average income. Thus, the most expensive dish on the menu should be approximately $18.99. The cheapest dishes are salads, which can be bought for $3.29. Meat Entries will cost $5 on average. The most common chicken shawarma salad is $8.99, and another top popular dish in the restaurant, Combo Kebab Plate, costs $18.99. Therefore, the average person should have approximately $10 when visiting the restaurant.
Timeframe – Short Term/Long Term
As the main recommendation for the restaurant is to improve its promotion policy, we need to calculate how much in total the restaurant will spend on “sales promotion” for the first month and the year. Thus, we can divide the goals into a long term and short term. The long term is sustainable development and establishment of the restaurant. The short term is the constant increasing of the market share by 10% a year due to the effective promotional campaign.
Short Term
1. Calculate the advertising budget.
In our case, in the first month, we expect to provide 20% coverage of the target audience (assuming that the male market consists of 1 million customers). The goal is to reach 200 consumers (1000 x 20%). The best for us will be ensuring the five advertising contacts. Since the average consumer will have 5 advertising contacts, the advertiser should ensure the purchase of (200 x 5) 1,000 contacts. We need a contact-quarter impact forces (with the help of advertising on television, radio or popular newspapers and magazines). The estimated number of contacts must be purchased up (1000 x 1.5) in 1500. One blade of the magnitude will effect an average of $6, (a newspaper or magazine in full-page spreads), then the advertising budget must be equal to the average from $50 up to $28,400 monthly. To order leaflets will cost approximately $630. Thus, each leaflet will cost $0,4.
Second step involves hiring people (10 people) who are ready to hand out these flyers. Their work will cost near $6 per hour. Schedule: 5 people from 8.00 am to 11.00 am and 5 persons from 17.00 to 20.00, except Sundays.
Thus, we see that everyone is working for 3 hours a day, 6 days a week (i.e., 18 hours per week). We can say that for the entire period of work, each employee will have worked for 36 hours.
2. The creation of the website. $1500 has been spent on the creation of the website on average. Besides, it does not include monthly update that will be worth about $150.
3. Estimates for sales promotion activities. It can be developed as follows: select specific measures and shortchange their cost. There is a need to order plastic cards for regulars. On average, each card will cost $5. It is necessary to order printing posters, which have the full information about the campaign, “Regular customer.” The price of the 1st poster will be $4. We must order 50 posters. Knowing all the rates, we can make a cost estimate for the first month of the marketing activities.
№ . Name of the Activity The Cost in Dollars
1 Creating a website 1650
2 The action “Regular customer”:
1. Ordering plastic cards
2. Ordering the poster printing
1074
3 Distribution of leaflets
1. Ordering leaflets
2. The salary for the workers
12000
5 Promo in the newspapers 948
Total: 15672
We see that the minimum budget for the first month of the marketing activities should be $1576 only for promoting.
Long Term
On the creation of a new restaurant business goes from half a year to a year, not counting the time “included in the process.” The cost of design, interior design and equipment to order is $500 million – $2 million. Experience shows that for a restaurant of 4-5 stars, with an average mark-up on food in 300% good result will be a turnover of $25-40 thousand per month. Profit, in this case, not including taxes, may be around $5-15 thousand per month. In democratic restaurants threshold payback comes on revenue of $45 million with revenue of $70 million profit is there of $10 thousand.
Table 5. Marketing Activity
№ Marketing Strategies
1. Implement a modern automation system restaurants, which will accelerate not only the processes of care, but also to simplify the work with checks
2. Regularly conduct market research, including a study of the status and capabilities of its own enterprise
3. Creating a new and improved products based on the results of market research, product range optimization according to customers’ requests restaurant complex (even adhering to traditional dishes, in connection with the worn kitchen equipment, you can update the menu, modernize the ingredients)
4. To allocate resources to continuously improve the educational level of the subordinate
5. Work out a common strategic vision of the company
6. To organize the company’s corporate identity
7. Organize work in advertising and sales promotion
Implementation Process
Since the implementation of marketing plans raises a lot of surprises, the marketing department should conduct ongoing monitoring of their progress. Marketing control systems need to be sure of the effectiveness of the company. However, the marketing control concept is by no means unambiguous. We can distinguish three types of marketing control in our restaurant:
TYPE OF CONTROL Responsible for his conduct Aim of Control Methods of Control
Implementation of the annual plans Senior management.
Middle management Make sure to achieve the intended results Sales analysis.
Analysis of market share.
Analysis of the ratio between the cost of marketing and sales.
Monitoring the ratio of clients.
Profitability control Controller in Marketing Find out on what the company makes money, and than lose them Profitability by product, territories, market segments, sales channels, the volume of orders
Strategic control Senior management.
Inspector marketing Determine whether the company uses the best of its existing marketing opportunities, and how effectively it does Revision of marketing
Monitoring after implementation of the annual plans of the restaurant is compared with the current performance target figures of the annual plan, and if necessary, steps to remedy the situation should be taken. The purpose of control is to make sure whether the restaurant has gone beyond scheduled for the year sales figures, profits and other target parameters. We suggest the management of the restaurant to systematically work on data of companies-competitors. In practice, they can use the following methods: a survey of individuals, clippings from published sources, registration of special forms for the competition, the reduction of the information in the reports.
Performance Review Strategy
The measurement of the productive efficiency of business units is an important issue in accounting. Analysis provides benchmark data that is useful for the determination of relative performance evaluation (RPE) measures. In a hospitality setting, this topic has appeared in the hospitality literature a number of times.
Morey & Dittman (1995) used allocative data envelopment analysis (DEA) to demonstrate how a restaurant general manager’s performance can be separated from the dynamics of the restaurant’s marketplace. The model utilized three outputs, ten controllable inputs and four non-controllable (environmental) variables. A resource minimization approach was adopted. For each inefficient restaurant, an efficiency frontier is created by a linear combination of efficient restaurants which become the inefficient restaurant’s benchmark partners from whom “best practices” can be determined. By graphing efficiency scores versus restaurant profitability, they demonstrated how this technique can be used to calculate “lost profits,” the opportunity cost of inefficient operation. Hence general managers who are inefficient operators are identified, even at profitable restaurants, and the cost of their inefficiencies can be determined. Additionally, it was demonstrated how this technique can be used to identify efficiently operated restaurants in poor market areas which show little upside and might be candidates for disinvestment.
References
Griss, C., & Lilly, M. (1996). Competitive enterprises through quality managers: an innovative approach to developing frontline management. Available online
Morey, R. C., & Dittman, D. A. (1995). Evaluating a hotel GM’s performance. The Cornell Hotel and Restaurant Administration Quarterly, 36(5), 30-35.
Shock, P. J., Bowen, J. T., & Stefanelli, J. M. (2004). Restaurant marketing for owners and managers. J. Wiley & Sons. pp. 117-19
Appendix A
BSBWOR501B Manage personal work priorities and professional development
1. Why do organizations use performance measurement, and describe your experience of them?
There is no area of human endeavor so much in need of effective measurement as are organizations. Organizations are probably the most complex entities in the universe-composed of thousands, even millions, of components. In fact, nothing has more “moving parts” than a large business or government enterprise!
The challenge is to manage those parts strategically, synergistically, and with appropriate alignment and synchronicity to attain the desired results. Measurement is the connecting fiber that can make all the parts work together. Achieving this kind of coordination and alignment is impossible without exceptional performance measurement.
Of course, smaller, simpler businesses can get by with much less sophisticated measurement. But even the sole proprietor or small business owner needs some measurement, and as small organizations grow in size and complexity, the role of measurement becomes increasingly vital.
Furthermore, the intensely competitive marketplace today demands a level and quality of performance measurement unlike any that ever existed.
2. What personal behavior, self-awareness and personality traits identification processes do you use?
3. How have you developed your personal development plan?
4. What processes do you use when personal goal setting?
5. Describe your time management techniques.
6. What principles and techniques do you use when organizing management development opportunities and options for yourself?
7. How do your organization’s policies, plans and procedures affect your work? Give examples.
8. Are you aware of types of learning style? How do they relate you as an individual?
9. How do you identify the types of work methods and practices that can improve your own personal performance?
