Discuss about the Business proposal on Identify the Problems and Finding Solutions to Improve Restaurant Business Efficiency.
Every business organization has own objectives and targets, which are required to achieve for measuring the level of development and success. Present study deals with the identifying the issues as well as finding solutions for the restaurant located at Bowling Club, Balmain in order to enhance business efficiency of the restaurant. In the introductory part of the study describes background of the present study, aims and objective along with rationale of the present study.
It is important for business of a restaurant to provide quality service with affordable price. In addition, it is required to have a good location that can be accessed easily (Jones et al. 2016, p.66). However, it becomes difficult to arrange all facilities for a business that can bring competitive advantage for the organization. In this aspect, the organization requires identification of the issues and develops problem solving strategies. A successful business organization needs effective planning and careful use of resources (Hsu, 2016, p.641). In the present scenario, it becomes difficult for the restaurant to attract new customers and provide services in affordable price.
The project has aims to identify the problems faced by the restaurant located at Balmain and finding effective solutions for improving the efficiency.
Conceptual framework
SWOT Analysis
According to Bull et al. (2016, p.411), SWOT analysis is useful to identify the strengths and weakness of the organization. Internal value creating factors such as skills, resources can be measured through internal evaluation and external benchmark. On the other hand, opportunities and threats will be explored through SWOT analysis.
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Strengths · Customer service · Exclusive selling proposition · Cleanliness and tidiness · Well-known market · Good reputation in the market · Good location · Efficient employees |
Weakness · Expensive price · Difficult to ease location · Limited market share · Government policies · High dependency on a selected number of people · Tendency to be reactive, instead of being proactive · Low productivity |
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Opportunities · Present and future market trends · Increased revenues · Ageing population can boost for integrated services of catering · For having trend in focusing on a selected number of people, quality assurance could add value · Change seen in gender structure; more number of women entering in labor market |
Threats · Presence of competitors · High price of raw materials · Ageing population makes difficulty in recruiting efficient staffs · Lack of innovation · Low trend of investment |
Table 1: SWOT analysis of a restaurant business
(Source: Created by Author)
In the business of a restaurant, it is required to analyze the strengths by evaluating its customer service. However, opportunities and thread can be measured by its present and future market trends. In the present analysis, it is observed that the restaurant has well decorated customer service. The staffs maintain cleanliness and tidiness in terms of providing services to the customers and pay attention to the requirements of customers individually. In addition, the restaurant has unique selling proposition that makes it different in the industry. The restaurant is located at Bowling club, Balmain. It results in well accessing point for people. In addition, there are regular based people used to come in the club that brings advantage for the restaurant. Having experience in Golf Club, the owner of restaurant can apply some actions that help to maximize profit for the restaurant. Along with these, the restaurant has good recognition in the market for having well-known branch organization in Goff Club.
On the other hand, high price in foods is one of the weaknesses considered for the restaurant. Generally, players and sports loving persons use to come in bowling club at Balmain. As a result, the restaurant has a limited number of customer bases. Having low tends of maximizing profit, the organization has limited market share. It results low scopes in maximizing profit. In addition, policies of the Government regarding maintain food quality has made an impact in profit of the organization. The organization has a tendency to be reactive. However, it is required to be proactive in terms of fulfilling corporate social responsibility. Moreover, having low number of customers, the restaurant has low productivity. It results lack of availability in many items for the customers.
In SWOT analysis, it has been found that the organization has opportunities for present as well as future market trends in the restaurant industry. Though the restaurant has not got profit according to its potentials and expectations, revenue has been increased a bit in the last month compared to previous days. In addition, ageing population boosts for achieving integrated service in the restaurant. In present days, women have become started to come to work rather than working in home. It results in increasing number of female staffs for the restaurant.
However, the restaurant needs to focus on its possible threats in order to combat with the situations. Several well-established restaurants are found in that along with possibility of new ones. In addition, high prices of raw materials affect on the good quality products and increasing profit for the restaurant. Having limited market share and low trend of investment, the organization is unable to have innovation in new items and services for the customers.
According to Lin (2016, p.24), lean supply chain reflects the respect for people involved in the business of restaurant business. In addition, stability as well as standardization in the business service can be analyzed through less thinking. Crane and Matten (2016, p.112) commented that systems theory is applicable for marketing and analysis the business that includes customers and intermediaries along with channels of marketing. Lean thinking is applied for manufacturing the lean techniques as well as focusing on the process in order to enhance the supply chain (Martínez-Jurado and Moyano-Fuentes, 2014, p.135). Application of lean supply chain would be useful to enhance kitchen operating system in consistent manner. Lean initiatives are useful to focus on particular logistic procedure. It can embrace whole supply chains. In addition, application of lean supply chain would be helpful to minimize the costs at the time of improving performance in kitchen operating system.
Rahmana et al. (2014, p.514) stated that service quality is one of the major approaches for managing the process of business in order to satisfy the customers. With the help of SERVQUAL framework, reliability, competence and tangibles can be found that are useful to measure the gaps between expectations of the customers and experience. Five dimensions of the framework such as responsiveness, assurance, tangibles, empathy and reliability are included in that (Alamin, 2013, p.2).
Responsiveness would assist to measure willingness for helping customer and providing prompt service. Knowledge as well as courtesy of staffs of the restaurant can be measured by assurance. In addition, tangibles measures appearance of the physical facilities provided by the restaurant; whereas reliability helps in measuring ability for performing the promised service accurately. After analyzing by SERVQUAL model, it has been found that the restaurant has some gaps in terms of promising services and catering as well as individual attention. Hence, it is needed to improve services on the gaps that have been found in the model.
After analyzing the business of the restaurants by SWOT analysis, it is required to identify the resources and develop proper supply chain management (Teller and Kock, 2013, p.314). The restaurant is situated in Bowling Club. Therefore, management of the restaurant requires planning according to the customers of that area. It has been found that the restaurant has lot of issues that become barriers for maximizing its profit. In order to over the issues, the restaurant and its authority need to strengthen more on its core values.
The organization requires providing offers on foods seasonally. It assists to attract more number of customers in the restaurant. In addition, facilities such as home delivery system would gain competitive advantages in the market (Dues et al. 2013, p.99). The restaurant requires keeping track in present and future market trends and developing life style of the customers. Moreover, management of the restaurant needs to select its target customers and provide services according to that. In hospitality, feed of the customers has an immense value in maximizing its profit. Hence, it is required to get customers’ feedback regularly and provide service according to their demands.
It is vital to identify the target customers in order to understand specific demand and provide facilities according to that (Mir and Pinnington, 2014, p.55). Identification of target customers can be achieved through geographic, demographic as well as psychographic. In the present case, the restaurant needs to identify the customers based on the area. Selection of demographic market would assist to provide menus according to preferences. Several restaurants are present in Bowling Club, Balmain. Hence, it is vital to consider price for middle-class people along with reserving some menus in high prices. In addition, the restaurant needs to approach to the customers and meet them on daily basis. It would be helpful to understand the demand of the customers and help the organization to reach to the targeted customers.
References
Alamin, T.H.M., 2013. Measuring the Performance of Human Services Providers using SERVQUAL Model: Study on governmental hospitals services at Ministry of Health–Khartoum state 2012. Journal of Science and Technology, 14(2).
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17(10), pp.99-111.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford: Oxford University Press.
Dues, C.M., Tan, K.H. and Lim, M., 2013. Green as the new Lean: how to use Lean practices as a catalyst to greening your supply chain. Journal of cleaner production, 40, pp.93-100.
Hsu, S.K., 2016. The Case Analysis of Management and Strategy of Restaurant Industry’s Business Model and Service Innovation.
Jones, P., Jones, P., Hillier, D., Hillier, D., Comfort, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Karnowski, V. and Kümpel, A.S., 2016. Diffusion of Innovations. In Schlüsselwerke der Medienwirkungsforschung, 5(11),pp. 97-107.
Lin, X., 2016. Strategy Analysis of a Boutique and Lifestyle Hotel: A SWOT Analysis (Doctoral dissertation, California State Polytechnic University, Pomona).
Martínez-Jurado, P.J. and Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, pp.134-150.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International Journal of Project Management, 32(2), pp.202-217.
Rahmana, A., Kamil, M., Soemantri, E. and Olim, A., 2014. Integration of SERVQUAL and Kano model into QFD to improve quality of simulationbased training on project management. International Journal of Basic and Applied Science, 2(3), pp.59-72.
Teller, J. and Kock, A., 2013. An empirical investigation on how portfolio risk management influences project portfolio success. International Journal of Project Management, 31(6), pp.817-829.
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