Individual Project: Restaurant Business Plan

The Company & The Industry

Background

The restaurants company The Melting Pot Inc. was established in 1975. The first Melting Pot restaurant was opened by Bruce Knoechel and Roy Nelson in Mathland, FL, which is close to Orlando. In the mid-1980s the Melting Pot Company was fully taken over by Johnson Brothers and started to expand on a basis of franchise cooperation (“The Melting Pot Restaurants, Inc. Company Profile”). Since then, the company expanded nationwide and underwent some major restaurant concepts improvements and menu refinements. However, the Melting Pot restaurants are still famous for following the Swiss traditions of fondue cooking style. Nowadays, The Melting Pot Inc. is a privately-owned company that is based in Tampa, Florida.

Current Status

Currently, the Melting Pot Inc. features the largest chain of fondue restaurants in the USA. To be precise, there are 135 locations of fondue restaurants, only three of which are company-owned while others are operated on the basis of franchise. In fact, 128 venues are located in the USA; one restaurant operates in Canada and three others are run by international franchise partners (“Melting Pot Restaurants Inc., The Franchise Information”). Therefore, the company managed to expand not only nationwide on the territory of the USA, but also started taking a niche on the international market.

Future Plan

In the nearest three years the main goal is to provide successful presentation of the new restaurant and to ensure its successful operation on the new location. Therefore, after an appropriate location for a restaurant is approved and all necessary renovation and decoration works are done, the personnel will be hired and trained according to the standards of the company. Besides, the required training regarding operational aspects, software and hardware will be provided. The main focus will be made on the marketing plan for restaurant promotion. It can be done by means of cooperation with tour operators and promoting the venues via local and national websites and tourists guidebooks. Additionally, the menu and specials will be adjusted in accordance to the preferences tendencies of the target audience, and seasonal promotions will be launched regarding local events. Therefore, in three years the restaurant is expected to be a successful business and take a niche in the local restaurant business.

Chief Characteristics and Trends

Overall, the restaurant industry is growing nowadays at a blistering pace. The great demand caused more vivid segmentation in the restaurant business. The venues offering food services may be distinguished on the basis of cuisines, type of service and price range. Therefore, regarding service provided by the restaurants, the venues can be described as the fast-food, limited-service and full-service restaurants. The restaurants also may serve great variety of cuisines such as American, New American, European, Continental etc. At the same time, the great abundance of dining venues provoked high competition on the restaurant market. Therefore, in order to gain loyalty of customers and anticipate the trends, the restaurant companies tend to pay more attention to the customer preferences (“Boomers and Beyond – Targeting Consumers Driving Restaurant Demand”).

Research

Research Plan

In order to examine the viability of the restaurant business idea, the considerable research was conducted. Research plan included the following steps: studying the market of restaurant business and investigating the current tendencies in the restaurant industry in the USA; investigating the company offering franchise cooperation and its requirements; finding the appropriate location for a restaurant regarding local competition, potential demand and target audience. Firstly, studying the market of restaurant business gives a deep insight into the industry and strong understanding of the main tendencies in the business. The main goal of this part is to find the potential niche in the restaurant business. When the niche is identified, the companies operating in this sector of industry should be studied. It is done in order to identify the main competitors, but also potential cooperation partners. After the company who can act as a potential franchise partner is found, the requirements for the franchise cooperation are examined. Finally, the best location for a business idea realization should be found. Regarding the place, the following factors should be taken into account: geographical location, population demographics and local economy. The following research conducted properly is supposed to provide essential data and information useful for the development of business idea.

Marketing Research Conducted

In order to pursue the goals set in the Research Plan, the following steps were taken and the following means were used. Firstly, by means of the reliable Internet resources the main tendencies in the restaurant business in the USA were examined. The popularity of different types of restaurants and cafes regarding the cuisine, price range and type of service were taken into account. It gave an opportunity to outline the sectors of restaurant business which are characterized with high competition and sectors that can potentially be developed. In particular, the market niches that can be potentially taken were examined. Next, by means of Internet resources and official website, the information about the Melting Pot Inc. was studied. In particular, the requirements for franchise cooperation and the potential locations for a restaurant were investigated. As the final step, the potential location for the business idea realization was closely examined. It included the following essential information: population demographics of Daytona Beach, Fl, its geographical location and the main industries. Additionally, the local attractions and events hosted by the town were studied in order to understand how it affects potential customers.

Research Findings

Firstly, during the research it was investigated that restaurant business is an industry characterized with high competition. However, there are still some niches that can potentially be taken. To be precise, fondue restaurants are not numerous in the USA. The Melting Pot Inc. is a leading restaurant chain offering fondue cooking style. In fact, the company has numerous locations nationwide and some restaurants abroad. Besides, the company offers good conditions for franchise cooperation. As a potential location for a restaurant the town of Daytona Beach was suggested. According to the research, the population of Daytona Beach is approximately 62,000 people. The ratio of female and male citizens is almost equal with slight domination of women population, and the median age in Daytona Beach is 39,8 years (“Daytona Beach, Florida (FL) Profile”). The research has provided essential data needed for the successful business idea realization.

Market Analysis

Target Markets and Their Characteristics

In order to transform the business idea into a profitable venture and ensure the effective operation of a restaurant the target markets were identified. Firstly, primary market of the restaurant is the local population of the town Daytona Beach. Therefore, it is essential to establish a good reputation in the local community and built up the audience of returning customers. Secondary market for the restaurant targets tourists coming to Daytona Beach for special events or holidays. The tertiary market will include corporate clients and business meetings participants. With this purpose the restaurant will offer an option of group dining and corporate meeting. The market characteristics include the following factors influencing the business plan: demographic characteristics, geographic characteristics, psychographic characteristics and consumer characteristics. In fact, the demographic characteristics define the target audience for the restaurant. In the following case they mostly refer to the age and gender of the potential customers. However, their employment status and income source are to be considered. Geographical characteristics define the specific features of the potential location for a restaurant and how attractive it is for visitors. Consumer characteristics refer to the preferences of the potential customers and weather the restaurant will attract enough consumers.

Demographic Information

Regarding population demographics, Daytona Beach is a successful potential location for the business idea realization. Firstly, the population of Daytona Beach, estimated as approximately 62,000 people, is enough to ensure sufficient demand on the market. The median age in Daytona Beach is 39,8 years. Besides, the vast majority of citizens is employed and gets their income from salaried employment. These facts are beneficial if the target audience for a restaurant is taken into account, It includes adults from 21 years old who are employed and have the income source. Besides, Daytona Beach is visited by thousands of tourists every year, which provides additional flow of customers to the restaurant. Therefore, it can be included that the town of Daytona Beach has a great potential for the business idea development as long as it is able to provide the sufficient amount of customers.

Trends and Growth Potential

It should be noted that restaurant business is one of the key industries in the town of Daytona Beach. The great variety of dining venues offers different options for customers. However, the fondue restaurant Melting Pot has no analogues in Daytona Beach which means there is a great opportunity for developing business idea. Moreover, a fine-dining restaurant is a promising venture in Daytona Beach as it is a popular holiday destination. Therefore, the fine-dining restaurant of fondue cooking has all chances to gain loyalty of local customers as well as attract tourist visitors. Finally, the franchise cooperation with the reliable partner Melting Pot Company will give undeniable benefits.

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