Start-up business ventures usher generation of revenue, employment and new products in a market. According to Morris, Neumeyer and Kuratko (2015), entrepreneurial ventures promote economic development in economies. The paper delves into the business plan Al Reetaj Restaurant and Grill, an entrepreneurial venture based in the UAE. The restaurant would serve high quality kebabs made from non-vegetarian items including mutton, beef and lamb. The restaurant would also serve vegetarian kebabs to the vegetarian customers. The study would open with an exploration of the products and services the restaurant would offer followed by an analysis of the market conditions of the United Arab Emirates. This would followed by the SWOT analysis of the restaurant based on the market analysis. This would be followed by a study of the business strategies including the marketing strategy which the management of the restaurant can adopt.
The name of the company would be Al Reetaj Restaurant and Grill and would swell high quality kebabs made from mutton, chicken, beef and paneer. The location of the firm would be the United Arab Emirates.
The mission of Al Reetaj Restaurant and Grill would be providing its customers high quality kebabs made from mutton, chicken, beef and paneer. Ramanathan, Di and Ramanathan (2016) mentions that the ambience of restaurant play a significant role in ensuring customer satisfaction. Keeping the fact in light, Al Reetaj Restaurant would have a relaxing and comfortable environment which would allow the guests to relax. There would a soothing Arabic music playing in the background which would increase the tranquillity in the restaurant. Trained staffs would serve the customers and would exhibit high degree of professional conduct. Thus, from this discussion it is clear that the mission of Al Reetaj and Grill would be ensuring customer satisfaction by creating a formidable mix of food items, service and ambience to maximize their satisfaction.
The vision of Al Reetaj is to emerge as one of the most sought after Asian restaurants selling kebabs. This vision would stand on four pillars. The first pillar is gaining maximum revenue by ensuring highest level of customer satisfaction (mission). The second pillar would be benefiting both the internal stakeholders like employees and external stakeholders like the society as a whole. The restaurant would take to achieve environmental sustainability in its stride. The third pillar rests on expansion of product offerings and foreign expansion. The restaurant would initially start its journey as a kebab selling Asian restaurant but gradually expand its offerings to include more Asian dishes like biriyani and other Central Asian dishes. The market of the restaurant would be the United Arab Emirates with Dubai as its base. The business would subsequently spreads its presence in the United Kingdom and Canada. The fourth pillar of Al Reetaj and Grill be converting into a public limited company and listing itself on the Dubai Financial Market, the stock in Dubai. This would be necessary to fuel the vast capital requirement of the restaurant to expand its business along the lines of the aforementioned vision.
Al Reetaj Restaurant and Grill would in the initial stage provide kebabs made from animals like lambs, goat, beef and chicken. The vegetarian people can opt for kebabs made from paneer. The restaurant at a later seeks to expand this food product offerings into other variants of kebabs like sea food kebabs dipped in spices to suit the local tastes. The management of the restaurant right from the initial days should consider catering to European, American customers, Asian and African customers. Hence, the food offerings should appeal to both the customer segments. The restaurant at a subsequent phase would expand its product offering to variants like sea food kebabs and other Asian delicacies. The restaurant may also serve beverages like fruit juices, crushers, tea and coffee available both in Asian and American style.
The service offerings of Al Reetaj Restaurant and Grill would also expand as the business gains on more revenue and customer base. The restaurant in the initial stage would provide a relaxing environment with appropriate lighting arrangements. Central Asian music would play in the background to make the ambience even more soothing. The restaurant would provide take away and online ordering facilities to its customers. The restaurant at a subsequent stage would acquire bigger properties and add garden and roof top dining facilities to the customers.
The above discussion clearly shows that Al Reetaj Restauarant and Grill wants to establish itself as one of the most sought after restaurant chain in the Dubai, the UAE. It would be prudent for the management of the restaurant to develop an in-depth idea about the market conditions of the country.
The following is the analysis of the market conditions of the United Arab Emirates:
The United Arab Emirates is a politically stable economy which immense bilateral connections with the countries of Asia, Europe and America. This factor of Government of the United Arab Emirates makes laws and policies for all the industries to function including the food industry. Since, the business under consideration is a food business, it must follow the guidelines issued by the government of UAE (government.ae 2018). The next political factor which should be considered would the strong bilateral ties which the UAE has with the countries of Asia, Europe and Africa. This would have serious impacts on the entire business operations right of sourcing raw materials to business expansion plans.
The economic factors which would affect the restaurant business would be availability of resources like raw materials and capital. The first requirement which would affect the business would availability of easy finance in the UAE. The Government of the United Arab Emirates provides loans to start-up businesses which generally do not qualify for bank loans due to limited financial capability (gulfnews.com 2018). The firm can also opt for venture capital financing and incubation assistance to start its journey in the Arabian economy. The American economy also provides a rich network of banks and other institutions which would provide the business with funds. The main cities in the United Arab Emirates have a rich network of multinational banks like ADCB which has its headquarters in the UAE (adcb.com 2018). This would allow the firm to may payments to acquire raw materials from Asia and manage its online transactions. As far as human resources are concerned, the United Arab Emirates provides skilled labour owing to its high literacy rate. As far as food firms are concerned, presence of a large number of hospitality management institutes would provide them with chefs having expertise in a variety of dishes from diverse countries.
The social factors prevailing in the UAE are very conductive to growth and expansion of new business organisations. The graph below shows the population of the United Arab Emirates at present and in the future years till 2022. The figure shows increase in the population which is a good sign for the start-ups in the food industry. This is because increase in population would means more customers for the food businesses to cater to which would in turn mean more revenue sourced by serving this base.
Secondly, as shown in the graph below (figure 2), the population trend of the UAE would see rise in population of people of Asian origin. This means that the Asian food sellers in country would get opportunity to serve this rising Asian population. The third social factor which would impact the start-up food businesses in the UAE is rising use of internet among the people backed by the spread of internet access to almost the entire country. The customers today display remarkable awareness about technology and prefer ordering food online (Botelho, Araujo & Pineli, 2018). Food businesses like Al Reetaj Restauarant and Grill would enable customers view and order food products online which would enable them to obtain more orders for their products. The restaurants should establish both online and offline service facilities to customers right from its initial operational stage.
The figure above compares between Australia, China and the UAE. The graph shows that China and the UAE are culturally more identical while Australia is not. For example, as far as power distance is concerned, the UAE scores 90 while China scores 80 and Australia is at 36. This means that in China and the UAE power distance is stronger than the other two countries. This comparison would hold great significance to the food businesses since they belong to the service industry and would require to interact with the customers directly while serving them. The servers should be careful to exhibit appropriate gestures while serving food to the customers. For example, elderly Chinese perceive bowing as a sign of respect while an Australian perceive handshakes as polite. Thus, the staff of restaurants should have knowledge about these cultural differences while greeting and treating customers originating from different cultures. These social knowledge would play important role creating positive customer experiences owing to the rising Asian population in the UAE. This would mean that service providing organisations like restaurants should be able to satisfy customers across cultures (Alshaibani and Bakir 2017).
Technological would hold great importance for Al Reetaj Restaurant and Grill since manufacturing of food and providing a conductive ambience would depend on technology to a great extent. The food items like kebabs are expected to have certain characteristics smell and flavour. This is traditionally obtained from roasting chunks of meat over burnt wood or coal. Coal and wood as fuel would be expensive and would cause pollution. The restaurant would use modern oven which simulate the traditional taste and flavour into the kebabs. Similarly, the use of lighting and music would also involve use of technology (Law, R., Buhalis and Cobanoglu 2014).
The use of technology would also take into account the climatic conditions of the United Arab Emirates. The restaurant should be air conditioned in suitable manner to keep dust and heat out during day and during sand storms which are common during the summer season (khaleejtimes.com 2018). The restaurant would have facilities like music room, reading room and games room to engage the guests during harsh weather conditions (hoteliermiddleeast.com 2018). The restaurant at a later stage would also accommodate facilities like spa and swimming pool, all of which are dependent on use of technology. The construction of the restaurant would involve using panels to keep the extreme heat out. Moreover, the entry and the exits would have shielded against dust and heat by use of trees and other methods.
The restaurant would technology in serving guests both online and offline. The restaurant would maintain a data base of all the customers visiting its premises. The premises should be wifi enabled which would allow them to use tablets and notebooks. The restaurant in order to ensure that it orders appropriate quantity of stock of raw materials like raw meat and spices would use economic order quantity (Anzman?Frasca et al. 2015). The official website of the restaurant would allow visitors to view the details of the food products as well as order online. This would enable the restaurant to earn immense revenue by serving guests both in in premises as well as processing orders placed online.
The following is the SWOT analysis of Al Reetaj Restaurant and Grill which would be based in the flourishing market of the United Arab Emirates. The following are the strengths, weaknesses, opportunities and threats which the restaurant would likely face in the course of its operations in the United Arab Emirates:
Al Reetaj Restaurant and Grill would be able to take the advantage of the maturing hospitality market of the United Arab Emirates. The country is seeing increase in the tourist visits and has already evolved into an important commercial destination. These factors would lead to large number of visitors at the restaurant (gulfnews.com 2018). The country has population of people from other Asian countries like India would enable the restaurant obtain a large customer base to whom it would be able to sell its kebabs and other Central Asian dishes (khaleejtimes.com 2018). Al Reetaj Restaurant and Grill would be able to earn huge revenue by serving this immense customer base.
Paniagua and Sapena (2015), mention that availability of venture finance in a certain market boosts entrepreneurial ventures. A review of entrepreneurship (chapter 8) shows that entrepreneurs in the maturing markets like the United Arab Emirates are likely to take more risk due to the availability of an established banking system. Banks like the National Bank of Abu Dhabi provide easy capital to the start-ups which attribute to their financial strengths (nbad.com 2018).
The following are the weaknesses which Al Reetaj is likely to encounter while operating in the market of Abu Dhabi:
The Al Reetaj Restaurant and Grill would require to incur high initial costs before it starts operating profitably. The discussion above shows that the restaurant requires to investment in construction of facilities like games room to keep the customers engaged during harsh weather conditions in the UAE which is quite common (hoteliermiddleeast.com 2018). Moreover, the restaurant has to make its products available online which would add to the initial start-up cost further. All these factors would lead to high initial costs of the setting up the restaurant.
Walter and Block (2016) mention that newly formed entrepreneurial ventures suffer from the problem of limited human resources owing to the limited financial resources, at least in the initial stage. Brewster, Chung and Sparrow (2016) further point out that this limited availability of human resources are of more significance to the manufacturing industries. The Al Reetaj Restaurant and Grill being a new start-up entrepreneurial venture in the UAE would face financial hardships in the initial stage. The high initial cost of production in the initial phase would also have bearing on the net profit. These factors would limit the restaurant’s capability of acquiring and retaining highly experienced employees. This factor would in turn impact its power to serve the guests and ensure their customer satisfaction.
The Al Reetaj at the initial stage face difficulty in inventory management due to its limited knowledge and market experience. The principal raw materials like meat and spices are subject to degeneration. The restaurant in its initial days require to obtain in depth knowledge about the inventory like the amount of meat it requires to maintain each day to ensure that it does not end up having excess stock beyond a limit. The restaurant would be facing some loss of its stock of raw materials owing to its limited knowledge which would further add to its expenditure (Kimes and Wirtz 2016).
The following are the opportunities which would be available to the Al Reetaj Restaurant and Grill being a new entrepreneurial venture:
Burns (2016) mentions that new entrepreneurial ventures can take exploit the new market opportunities. Being new in the market, the Al Reetaj Restaurant and Grill can promote itself in the market of the UAE to attract customers. The customers would naturally be attracted to it driven by curiosity. The restaurant should use this opportunity to cater to these customer base and capture its own niche in the tremendously competitive market of the UAE. This factor would at a later stage enable the restaurant to grow and expand in the market.
The Al Reetaj Restaurant and Grill should offer an extensive product line right at its initial stage. The restaurant instead of solely offering kebabs should also offer other food items like Chinese food items and coffee. This would enable the firm to derive certain advantages. First, by offering both tandoori and Chinese, the restaurant would be able to cater to larger group of customers. This would also include the health conscious niche market customers who avoid kebabs due to its high oil and spice content (Yang and Gabrielsson 2017). They would instead opt for healthy Chinese dishes. Thus, this would enable the firm to diversify its expenses over tandoori and Chinese dishes, thus making the business financially more sustainable.
Leonidou, Samiee and Geldres (2015) mentions that entrepreneurial ventures can take the advantage of market by promoting their products aggressively. The Al Reetaj Restaurant and Grill should promote its products on the social media platforms aggressively to create awareness about its high quality products. The restaurant should promote its products in a way to attract Asian, American and the European population living in the country. The promotion should be sophisticated and informative to attract upper class customers including the tourists visiting the country. The restaurant in order to attract customers across different cultures, should celebrate festivals belong to them in form offers (Piperopoulos and Dimov 2015). For example, the restaurant can give offers on Christmas and the Chinese New Year. This would help the customers across nations to relate to the restaurant and allow it attract a large number of customers. The restaurant as a result would be able to generate immense revenue.
The following are the threats which the Al Reetaj Restaurant and Grill is likely to face while operating in the extremely competitive market of the United Arab Emirates:
The Al Reetaj Restaurant and Grill would face strong competition from the established restaurants and hotels in the United Arab Emirates. Cox Pahnke et al. (2015) points out that established restaurant chains already have their own customer bases in the competitive market of the United Arab Emirates. These restaurants are financially stronger and thus have more talented and capable human resources. They, by the virtue of greater knowledge about the market conditions of the United Arab Emirates, are able to control their inventory more efficiently, thereby reducing their expenses. These established restaurants as a result are able to earn higher profits. These factors make it more challenging for the new entrepreneurial venture restaurants to carve out a niche for themselves in the market of the United Arab Emirates (Drucker 2014).
The restaurants have to continuously adapt their product offering according to the customer preferences which keep on changing. Bohari, Hin and Fuad (2017) mention that established restaurants have the financial strength to invest in new innovative food offerings. However, new restaurant ventures like the Al Reetaj Restaurant and Grill would find it difficult to change their food offering which eventually push them towards endangerment.
The following section would deal with the strategies and their implementation in case of the Al Reetaj Restaurant and Grill:
The unique selling proposition of the Al Reetaj Restaurant and Grill would be offering high quality food products at affordable prices. The restaurant would offer high quality kebabs made from beef, lamb and mutton at affordable prices. The second unique selling proposition of the Al Reetaj Restaurant and Grill would be its ambience which enable the customers to relax. The premises of the restaurant would be a games room and reading room which would enable the visitors keep indulge into various entertainment, especially during harsh weather conditions which are common in the country. The restaurant at a later stage would acquire a bigger property with more facilities like indoor garden and swimming pool which would maximise the satisfaction level of the customers (Morris et al. 2016).
The competitive advantage of the Al Reetaj Restaurant and Grill would be attributed by its high quality food offering and its sophisticated ambience. The restaurant would be located in a strategic location which is well visited by tourists and upper class people. This advantage which the restaurant would earn due to its position would enable it to attract both tourists and upper class residents in the country (Jayawarna et al. 2014).
The marketing strategy of the Al Reetaj Restaurant and Grill would consist of both offline and online modes. The marketing strategy of restaurant should aim to arm it to counteract the threats and challenges it would face in its initial phase. The restaurant should advertise its high class facilities in industrial and fashion magazines which are subscribed by the commercial establishments like five star hotels. This strategy would enable the restaurant to create awareness among the tourists and the upper class people. The next marketing strategy would consist of promotion of the facilities at food festivals, trade fairs and tourism fairs. The restaurant can celebrate festivals belonging to diverse cultures like India, China and the US which would enable it to project itself a multi-cultured restaurant. This would act as a powerful tool in attracting visitors from different countries (Martin and Javalgi 2016c).
The Al Reetaj should promote itself on the digital platform using its official website as a powerful tool. The website of the restaurant should enable visitors to view the food offerings and facilities. The website should also enable them to gain full information about the facilities like the charges. The website should also enable these visitors to book facilities like conference hall and tables. The website should also enable the visitors to order food products online which would enable the restaurant to generate immense revenue by serving these online received orders. The Al Reetaj Restaurant and Grill should communicate with its customers on social media websites like Facebook and Instagram. It can also post videos like how it prepares kebabs to attract more customers. Thus, the marketing strategy combining both online and offline promotions would enable the new restaurant, the Al Reetaj Restaurant and Grill attract large number of customers and generate immense revenue by serving them (Eesley and Miller 2018).
The sales strategy of the Al Reetaj as pointed out, would consists of both processing of orders received online and selling to walk-in customers. The sales strategy of orders received online would consist of giving discount offers to the customers to encourage bigger order sizes. As far as walk-in customers are concerned, the restaurant should first segregate them into two groups, the customers who have already booked tables and the walk-in customers without any booking. The waiters should lead to the customers with bookings to their tables. The walk-in customers without any prior booking must first approach the reception which would check the availability of tables. If the tables are available, the visitors would be escorted by the waiters. If the tables are not available at that point of time, the visitors would be guided to the other facilities like the poolside garden where they can relax. The waiter should escort the visitors from the garden to the dining area once the tables are available. The waiters would then serve the guests as per their requirements (Spigel 2017).
The Al Reetaj Restaurant and Grill in the first year aim to gain a profit of 5 percent. Then it would seek to earn higher profits as it expands in the market of the UAE.
The Al Reetaj Restaurant and Grill should aim to serve a thousand guests along and earn its forecast figure of 5 percent profit. It would gradually extend these milestones at it gains strength in the market of the UAE.
The restaurant would initially start as a sole proprietary business. Then it would seek to gain a status of a company so that it is able to source capital from the market.
Conclusion and recommendations:
It can be concluded that Al Reetaj Restaurant and Grill should enter the market of the United Arab Emirates and exploit its profitability. The restaurant should promote itself aggressively to establish itself strong in the market. The following are the recommended strategies which the management can consider in addition to the strategies discussed above:
The Al Reetaj Restaurant and Grill should obtain listing on the stock exchanges at a large stage as it gains financial strength. This would enable the firm to source capital from the market to fuel its expanding business requirements. The discussion clearly points out that firm needs to expand its food offerings and facilities. It is necessitated that the firm needs to market its products aggressively both in the offline market and online market. This means it is required to source immense capital which would not be feasible under sole proprietorship format. Thus, the firm is required to list itself to be able to generate capital from the market.
The Al Reetaj Restaurant and Grill should expand its business and enter the hotel business. The discussion clearly points out that the restaurant business would require immense capital and revenue base to expand. Expanding into hotel business would enable the Al Reetaj to serve both diners and accommodating customers. This would increase its revenue generation capacity.
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