1920’s restaurant business is a restaurant service business that is located in Wynwood, in Miami Florida. The restaurant business has an entire 1920’s theme that would help in the serving of traditional American foods. The business is recognized for the preparation of fries, good burgers, and they also serve pizza, ribs, salads, and gourmet pizza among others. The traditional American foods, fries and burgers will be able to meet the needs of the customers by offering sustainable health benefits to the customers. Customers are more conscious with eating healthy foods. The restaurant business will work on improving the nutrition content of its food offerings to ensure that the customers are satisfied with the food menu offered in the organization. Families and individual customers are groups of persons that restaurants’ needs to work on providing for the right products (Bihamta, et al., 2017). The competitive advantage of 1920’s restaurant business is the ability to offer nutritional food products and the capacity to provide efficient operations in the business. Therefore, the restaurant business is committed in ensuring all product offerings meets the satisfaction of the customers.
Market Analysis The restaurant sector is one of the largest sectors in Miami and in the United States. The current growth rate of is 2% and it is expected to grow by 2.5% in the next one year. The growth of the hotel and restaurant business will give 1920’s restaurant an opportunity to market their service and foods offerings to the varied clients. The restaurant businesses accounts for 49% of the total forecasted growth in the restaurant and hotel sector. There are could be two customer market segments including individuals and families. Families accounts for a larger percentage of the dinner business with individual persons accounting for larger proportion of the lunch time business. The marketing approach of the company will target the two customer segments in maximizing its overall returns and sales.
1920’s Restaurant will operate in the traditional American foods that makes it possible to compete effectively with other rivals due to its ability prepare quality food items. The restaurant business will be targeting both families and individuals’ customer groups to make its offerings. The traditional American dishes and other foods will make it possible to attract a larger proportion of the dinner business in Miami. 1920’s restaurant business exists in the large restaurant sector. The restaurant sector has faced downturns and upswings, but the deviation is lower the economic growth (Ryu & Lee, 2017). It is because the restaurants are less affected by poor economic performance as people will need to eat. People cannot avoid eating as it shapes the proper understanding of the restaurant business. The new restaurant will face still competition from other food service companies around Miami including fast foods, sandwich shops, and grocery markets among others. The management of 1920’s restaurant should come up with competitive strategies to improve the performance of the business through ensuring that customer needs are met effectively.
The restaurant will be able to gain some market share of the restaurant business in Miami area. 5% of market share in Miami restaurant business could be achieved in 18 months. However, the business needs to invest in aggressive marketing strategy to market its offering to the various target customer groups. The target market is mainly for the family and individual’s customers who prefers traditional American meals and foods. The restaurant business will offer non-seasonal food products that helps to ensure consistent returns and earnings at all times. The current market for revenue growth in restaurant business is more than $750 billion. The revenue is forecasted to growth by 5% annually. The restaurant business will use discount-pricing approach, which helps to make its brand and reputation to the market. 10% discount is set on all food products. The target gross margin level is 40% that focusses on sustaining the future profitability and sustainability of the restaurant business.
The strengths of the restaurant business are the good convenience location and the offering quality foods to the clients. Both strengths are good in ensuring that the customers have access to food items that meets their needs. However, the restaurant business has some weaknesses such the lack of experienced personnel to match the strength of existing rival restaurants and food service units (Ryu & Lee, 2017). Reviewing the strength of the competitors including takeout and fast foods is critical in expanding the market share. Barriers that might hinder entry to the market is the lack of good location for the business. Restaurant business calls for proper location. The failure to get a strategic location could make it difficult for a new venture to enter into the market. In terms of regulatory restrictions, safety requirements for a hotel in Miami are very strict and the management is keen on ensuring a high level of cleanliness is maintained to align with the set regulatory restrictions. Tax and business license regulations also will be complied with to allow for smooth operation of the restaurant. However, the cost of regular safety checks from the local authorities is high.
Services Some of the services offered 1920’s restaurant business includes the serving of the traditional American good products. The restaurant is strongly related for offering the best fries and burgers. Good burgers would be more popular in Miami as most customer prefers to the best food items. The restaurant business also offers ribs, salads, seafoods, and gourmet pizza among others (Bihamta, et al., 2017). The management of the restaurant is committed in providing quality foods to the customers.