Challenges and Trends Facing Food and Beverage Industry Free Solution

Question: Discuss about theFood and Beverage Industry. Answer: Introduction Scope The present report deals with the opening of food and beverage industry specifically a fine-dining Pan Asian restaurant in Melbourne CBD. The prime objective behind opting for such type of business is to provide the best hospitality and food of Asian culture to the Melbourne people (Ramseook-Munhurrun, 2012, pp. 630). Despite several established and successful Asian restaurants in Melbourne, the principal mission is to provide both the essence of restaurants and bar service, under a single roof for its customers. The potential customers of this resto-bar will include not only the local but also the overseas customers, especially the Asian customers. PESTLE External Environment Scan (Hospitality Sector) Pestle analysis of any food and beverage sector helps to determine the threats or opportunities involved in the establishment of this business. Political- Australian government facilitates restaurant industry with minimum tax provision. Economical- As the GDP of Australia is 3.4%, which is profitable for the restaurant business. Social- Being an Asian resto-bar, it has the opportunity to satisfy diverse customers belonging to different demography, viz., age, income, and culture (Hing, 2013). Technological- Technological advancements would definitely help to promote the marketing of the restaurant through its mobile app or its website. Legislative- It will need permit license which includes alcohol license, food safety license, and restaurant establishment permit. Environmental- It should maintain sustainability by providing eco-friendly and disposable packaging material, and there should be proper disposal of the waste products also (Kwok, and Yu, 2013, pp. 84). Industry competition analysis The necessary analysis for industrial needs such as a threat to newer entrants, substitutes, the power of buyers, and bargaining power of suppliers that will be reflective in real time implementation and service management at Pan Asian restaurant is given below. Additionally, the analysis also includes a section of industrial rivalry that provides adequate information for strategic execution. Threat of new entrants The existence of barrier like capital cost, product differentiation, lack of brand name, profitability, and access to distribution is the challenge. Pan Asian restaurant is newer comer and is liable to face competitive challenges (Bruwer and Huang, 2012, pp. 461). Threat of substitutes A Minimal level of risk persists as there only a few restaurants in Melbourne who provide Asian cuisine to customers. Bargaining power of buyers This is a fixed price industry, and the restaurant will also have a differential advantage with reference to their food product (Johnson, Ringham and Jurd, 2013) Bargaining power of suppliers Supply cost will be genuine, and transportation as well as network supply chain is safe in Melbourne that will impact reasonable vendor price (Bruwer and Huang, 2012, pp. 461). Industrial rivalry The location contains many moderate or high rating restaurant and bars. This brings the prospect of large advertising expense, and need a high degree of transparency to attract customers (Bruwer and Huang, 2012, pp. 461). Segmentation of Market The segmentation refers to the categorization of the market into various subsets such as consumers, business type, interest, priorities, and then framing proper strategic implementation to achieve market success (Ryu, 2012, pp. 200; Tsitsiloni, 2013, pp. 249). Product line The product line will offer dining, refreshment, and bar service to the customer. Additionally, occasional services like conference, banquet, parties and family dining service will also be provided. Market segment Market segment includes an approach for customer attraction, retention, and managing services to meet their requirement. The restaurant has a high competitive environment, and thus price must be small and flexible to attract customers. Customer segment Mainly the youth, family, and single adults are a prime target of the restaurant. This indicates the product design, specification, availability, and service must be in accordance with customer age-related demand and criteria. Demographic segment Demographic consideration includes age, cultural background, gender, and economic class of people in the society. The operational measures will thus be designed according to the demand of various age groups. Marketing Concept Marketing concept requires accurate knowledge and strategic implementation of the criteria into real practice. These factors are crucial determinant because they have the opportunity to attract customers, manage nominal price, brings competitive advantage, maintain quality and uniqueness, and scope for progress (Ruhanen, Mclennan, and Moyle, 2013, pp. 220). Promotion These measures will be implemented with advertising prospect; thereby making use of flyers, television and radio ads, the banner at the roadside location, and offering discount and other attractive offers. Place- Melbourne is an area with high population density that comprises of a diverse group of people. Product The product offering includes bar service and cuisine facility that have potential to attract customers of all ages. Price Pricing strategy must be nominal such that maximum people could be able to consume the service. Additionally, the pricing strategy must be competitive to raise its popularity in the market. People As mentioned above, mainly youth, young adults, and family members are prime customer segment and that the service offering must be aligned to meet their corresponding demand. Discussion of Business Success SWOT analysis refers to the market analysis that brings critical information for designing strategic framework (Orlitzky, 2015, pp. 1). Strength Provide Asian based food varieties. Arrange parties, banquet, and conference along with traditional pan dining facilities. Price is nominal and is comparatively less. Weakness The restaurant in new in the market. Cost differentiation is high, including newer employees, machines, infrastructure, and other set-ups. Capability criteria are not being analyzed to build strategies as the plan include risk and lower margin of profit. Opportunity Novel change to reflect Asian cuisine as unique selling point. The power of buyers and customer is at low-level and hence there is a scope of achieving market name. Threat Rivalry companies have an existing brand name. The majority of employees are newer in the firm. Achieving market reputation and retention of the loyal customer will take time. Staffing(people) Management Team A brief overview of the management team and associated staff within the organization has been discussed below. The individual team will comprise of product management, operational activity, employee management, marketing strategies, and administrative services. the management team is mainly consisting of two section, and they have responsibility sharing with reference to account management and sales (Chen and Elston, 2013, pp. 294). Other details of the staff and administration team are reflective in below mentioned chart. The skills are thus required include managers that must have experience and adequate competencies for operational management. likewise, the executives that will be assigned the responsibility for sales analysis, research, and development to launch newer food products and bar services, and human resource management team also need to have the sufficient competency and 1 2 years of experiences. Other than this the employees such as cleaning, housekeeping, waiters, and related people can be fresher in the hospitality industry, whom the firm will pay less but will provide them adequate training to manage the standards of hospitality services (Park and Jang, 2013, pp. 51). ResourcesBeeded (Tangible and Intangible) The resource requirement which are infrastructure like table and chair, plates and cutleries, glassware, tissue paper and napkins. Other than this, consumables such as wines, beer, and another type of liquors, water (mineral) bottles. Additionally, the requirement of a restaurant like AC, lightening, fan, and interior decorative are also requisite. Regarding the operational procedure, kitchen utilities, instrument, and cookware are also included in this consideration. The clothing of employees, special purpose design and clothes are all included in this account. Likewise, computer, printers, the internet and other hardware requirement are also included (Chen and Elston, 2013, pp. 294). The intangible resources include mainly the perishable raw material and packed food items. Similarly, temporary material based on customer needs such as meat, fruits, vegetables, and other dessert items are also included in this consideration. Budget As mentioned in the previous section, the restaurant is newer and hence the corresponding budgetary requirement is high. The details of the budget are given below in tabulated format. Infrastructure (furniture, machinery, and interior decorative element. $1,20,000 Infrastructure maintenance $20,000 (per month) Level 1 employees such as managers (2 in number) $7000 (per month) Level 2 employees such as sales executive, business analyst, HRM (3 in number) $5000 (per month) Level 3 employees such as kitchen cook, data analyst, technician, marketing person, public relation officer, quality controller (10 in number) $ 3,500 (per month) Level 4 employees such as waiter, field worker, transportation employee, cleaners (10 in numbers) $2,500 Raw material every day (average budget limit) $5,000 Outsourcing price every day (average budget limit) $5,000 Total $2,39,000 Finance The financial loan will be taken from nearby hypothecated band such as Nationalised Bank within Melbourne at the nominal interest rate. The mortgage of the loan will be the restaurant assets. Other than this, the stakeholder will also contribute to the investment that mainly includes financial investment from owners and partners (Park and Jang, 2013, pp. 51). The investment will also be reflective in terms of networking with outsourcing firm, suppliers, and service providers. For example, the purchase of raw material on a daily basis, outsourcing like transportation, public relationship management, employment agencies will be paid for their service on a monthly basis (Park and Jang, 2013, pp. 51). Transaction of money will be made online between the various partners and supplier firms. Likewise, the internal employee engagement such as attendance, payment, contract relationship, and another mode of financial accounting will be processed using software system. References: Chen, S.C. and Elston, J.A., 2013. Entrepreneurial motives and characteristics: An analysis of small restaurant owners. International Journal of Hospitality Management, 35, pp.294-305. 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