Implementing Innovation in Australian Restaurant

This assignment involves implementing innovative ideas in an Australian restaurant to boost customer satisfaction, increase profitability, and enhance online presence. The restaurant's manager is tasked with reviewing the existing menu, considering new implementations, and leveraging technology to improve table turnover rates and social media promotions. The goal is to turn existing customers into promoters by hosting events, offering happy hours, and providing online ordering options.

bSBMGT619 Identify and implement business innovations
BSBMGT619
Identify and implement business
innovations
Assessment 1 & Assessment 2
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bSBMGT619 Identify and implement business innovations
Contents
Assessment 1...............................................................................................................................................3
Written Questions...................................................................................................................................3
Assessment 2...............................................................................................................................................8
Part A: Identify Innovation Opportunities...............................................................................................8
Part B: Create a business strategy that incorporates innovations.........................................................12
Part C: Evaluate innovation...............................................................................................................15
Part D: Role-Play – consulting stakeholders on improvements to strategy and further innovation......16
Reference..................................................................................................................................................18
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bSBMGT619 Identify and implement business innovations
Assessment 1
Written Questions
Ans. 1. The external source of information is concerned with the happening out of the
boundaries of the organization and the 4 external sources of information are
 Professional journals
 Books
 Surveys
 Industry or government reports
These sources of information cover mostly documentation relating to a subject area produced as
a summary or detailed report.
Ans. 2. Competitive intelligence is an important aspect of strategic management. It helps the
decision-makers to measure their performance against rivals and make effective future strategies.
The following are the sources:
 Competitor websites
 Annual reports
 Primary research
 Social media
They offer a comprehensive view of your competitor’s activities and their financial health.
Ans. 3. The 3 internal sources of information about business process. System and efficiencies are
 Operating the business-processes which provide the main business of a company and
make the basic income stream.
 Managing the business-processes which manage functioning of a system.
 Supporting the business processes which serve the basic business.
Ans. 4. The 3 internal sources of information about business market are:
 Financial information on profits, costs, margins, cash flows, investments, etc.
 Marketing and sales information on performance, revenues, markets shares, distribution
channels, etc.
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bSBMGT619 Identify and implement business innovations
 Production and operational information on assets, quality, standards, etc.
Ans. 5.
A. This can help the RTO business develop new opportunities for Michael. This will be helpful
for him in his construction firm as he will come in contact with many new customers.
B. The organizational change can be beneficial for him as he will make new contacts with the
form but it can also bring risk to the organization as it will construct more competition in the
market for him and his firm.
C. Direct cost, fixed cost, variable cost and semi variable cost are the 4 types of costs associated
with implementing this new business idea.
D. It will improve the sales and the customer relationships and boost the market position which
will improve employee’s relationship as it will improve the products and services without losing
the customers and being more innovative with the competitors in the market.
E. The legal, security and ethical issue to be considered in this business is the employees and
how to deal with them and their rights.
F. The profitability Michael will on through this innovative business and by measuring how
much he owes and owns along with keeping in mind the cash free statement that shows his liquid
cash in the business.
Ans. 6. The 5 aspects are:
 The improved productivity & reduced costs
The innovation improvement is about reducing unit costs. This can be gained by enhancing the
capacity of production flexibility to enable it to exploit economies.
 Better quality
Better quality of products and services is more likely to meet the needs of customer.
 Building a product range
A business with a single product or that which has limited product range will always benefit
from innovation.
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bSBMGT619 Identify and implement business innovations
 To handle legal and environmental issues
Innovation might enable the business to reduce its production of waste and comply with
changing product legislation.
 More added value
Effective innovation is a good way to build a unique selling proposition for a product and
prepare the customer to pay more which helps a business to differentiate itself from competitors.
Ans. 7. This can be done by
 Never keeping the employee in the dark
Which means having a communications strategy and using a variety of communications ways so
that the orgabnisation runs smoothly.
 Leadership skills
It’s important to strengthen managers’ abilities to manage the changes and to develop their
leadership skills so they can take accountability through the process.
Ans. 8. The 3 types of risks to a business from implementing changes are:
 Disruption
Operational disruptions are the type of risk. There are strategies to limit the financial impact of
disruptions include scheduling the change implementation in phases, making hardware and
software changes only during evenings and weekends, and training employees in using the new
systems and processes
 Resistance
Resistance to change is a common risk factor. People are usually set in their ways and are
reluctant to accept new procedures. One way to overcome resistance is to scale down ambitions,
meaning not try to implement everything at once.
 Leadership
Organizational change management requires leadership. Management must maintain focus
through the inevitable schedule slippages and unanticipated events during the implementation
process.
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bSBMGT619 Identify and implement business innovations
Ans. 9. There are 5 keys steps mainly in the risk management process:
Step 1: Identifying the Risk.
Step 2: Analyzing the Risk.
Step 3: Evaluating or Ranking the Risk.
Step 4: Treating the Risk.
Step 5: Monitoring and Reviewing the Risk.
Ans. 10. The 4 factors are as:
1. Passion and Persistence
2. The Market Size.
3. Management Skillsets.
4. Ability to Manage Cash Flow.
Ans. 11. The 4 human resource factors are categorized as the social and cultural, technological,
economic, political and legal environments. All 4 of these are external influencers so they are
often outside the control of HRM, they often require action from HRM to address their effects on
the organization and its goals.
Ans. 12. The Five Steps to Implementing Innovation are:
1. Spotting the opportunities for innovation.
2. Learning from the innovation efforts
3. Prioritizing the opportunities.
4. Testing the potential innovations.
5. Building support for the innovations.
Ans. 13. The 3 ways are:
 Leading from the front: Innovation starts with the leadership qualities of the founder or
CEO.
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bSBMGT619 Identify and implement business innovations
 Creating a culture of innovation: People perform best when they are driven by
inspiration and encouraged to push their boundaries and think outside the box.
 Building effective teams: The best performing team should become the holy grail of the
business world so that it goes towards the positive growth.
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bSBMGT619 Identify and implement business innovations
Assessment 2
Part A: Identify Innovation Opportunities
Products offering
The Pesto restaurant has a very vibrant vibe in it. It is the place to have great food and wine in
this social environment. The menu of the restaurant features a very different range and variety of
ethnic ingredients and also provide recipes to the customers who have diverse taste experience.
The dining experience in the restaurant reminds us that dinner there about a provincial lifestyle
as it sells organic meat and dairy. though it sells meat and dairy it also has vegetarian options on
the menu for the dinners. The cuisine of the restaurant cells needs and ingredients that are
available in the local market.
The Pesto restaurant Moseley offers traditional and Tuscan recipes that are not what available in
any of the Italian restaurant menus. The restaurant provides the patrons which are excellent in
quality along with its unique cultural experience. along with this the restaurant also uses two
organic ingredients that are sourced from Italy.
Culture
The Pesto restaurant our first traditional and Tuscan recipes in their menu. The restaurant sells
vegetarian and poultry items in it man u you but it should also add plant-based foods to the menu
you which means using those ingredients that are high in proteins and also are gluten-free.
Though the restaurant is unique with its menu still consumers don't want to eat familiar foods all
the time. Along with the Tuscan and Italian cuisines, it should also add Asian, Latin, and
Mediterranean menu. Giving customers what they want when it comes to the flavors globally it
becomes a priority for the restaurant to add highlighted global items in it such as sources made
from ingredients that are authentic to the cultural cuisines.
Though the head chef and CEO in the restaurant, Rose Rossi have a very good experience in her
skills but still the competition in the market with other restaurants is very high for Pesto.
Current business relations
The Pesto restaurant is open 7 days a week that is it is open on weekend days also for the dinner
from 5:00 p.m. to 10:00 p.m. the way to start and the kitchen staff along with the restaurant
manager works from 3:00 p.m. to 11:00 p.m. the restaurants' layout which includes the dining
room the serving line and the kitchen has been designed with efficiency and flexibility to
accommodate with the customer traffic and meal periods. All the orders are done by the head
chef of the restaurant along with receiving and stocking of the products is also done by the head
chef. The suppliers of the pastels restaurant which includes fresh products, dairy, and meat along
with the local organic products are supplied from the local organic suppliers. It has a well-
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bSBMGT619 Identify and implement business innovations
developed relationship with its suppliers so that it can receive the products with high quality at
its best rate.
Though it has a unique menu that features ethnic Italian food but still the cost of the food they
serve is very high.
The other restaurants in the metro like that of Cha Cha Char- Eagle St. Pier has a high quality of
food and services along with it has a river view for its customers and diners that has established
its reputation in a very good way in the market. There is also another restaurant Otto Ristorante
which is also high in its quality of Southern Italian cuisines which is a very inviting atmosphere
for its diners as it has a high price point as that of pesto but still, the quality of the food and the
service provided there is very high and it has a very interesting decor which has made its
reputation good in the market. The other restaurant in the metro of Australia is the George
Paragon seafood restaurant which sells very good quality of seafood and it also has a river view
for its diners. These restaurants have something common with that of the pesto restaurant. But
still, pesto can compete with them by developing the social media marketing channel to attract
more and more clients that will help its business grow. The target in the market for pesto is good
quality and health-conscious diners but still, it needs to push its quality over quantity and value
high-quality services for its customers.
Do pesto also serve cuisines that are traditional and health-conscious but still it also has its goals
that are maintaining the profitability of the restaurant and the quality of the food and services that
are provided to its customers. it also needs to maintain customer satisfaction to 100% by
providing the health-conscious and good service to them. For building up the customer base it
should proceed with the marketing system on an online basis so that the customers and others
can know more about it.
Innovative practices
The Pesto restaurant can upgrade its waitlist management by introducing a waitlist management
application that will serve its customer online with the menu so that the customer finds it easy to
order their services instead of standing in line and waiting for their orders. This will prevent
unsightly crowding inside the reception area and will allow customers to room for real without
having to remain on the premises.
It can also be innovative with the idea of customer-facing tabletop tablets and kiosks. As it
allows the diners to browse the menu and send the orders directly to the kitchen. This is also
helpful in paying the bills without the need of a live server. It will be beneficial for the restaurant
because the faster the orders the faster the service providers, the happier the diners, the bigger the
tips, the faster the turnaround and which can result in greater sales in the restaurant. This will
help the weight staff to pay attention to the tables and guests who are empowered to order the
drinks and dishes at their leisure.
Though the restaurant opens for dinner timings only that is between 3:00 p.m. to 11:00 p.m. it
should also turn towards the online and mobile ordering that will be beneficial not only for the
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bSBMGT619 Identify and implement business innovations
restaurant but also for the staff. By effectively executing this plan it will be easy for its customers
to see the menu and buildings online which will be helpful for the business to get great
experience with the competition outside. It will cause less pressure on the wastage of food along
with eliminating the incorrect orders made over the phone. Making this happen can make
additional items being ordered online leading to higher sales.
Cost Benefit Analysis
Opportunity Assumptions Approx. Costs
(include breakdown
with descriptions,
values and sum of
costs)
Potential Returns
and Benefits
Feasibility
(Yes/ No/
Maybe)
Customer
facing tablets
The more the
advertisement of
this thing the
more customers
will come to know
about it
It is always
beneficiary
Yes
Online orders
and billing
The services to be
used in a proper
way and for good
sales of the
restaurant
It depends on the
customers and the
services provided by
them
Maybe
Managing
business risks
in terms of
waitlist
management
The staff to be
given good
training
This come under the
risks that are
unwanted or those
occurring without
cause
Maybe
Compatibility
The direct cost in the restaurant is the price which is directly related to the production of the
goods and services provided by the staff and the ingredients that are compulsory in the
restaurant. The direct cost is traced by the cost object, which can either of them that is it can be
any kind of service, or product, or department. Direct and indirect costs are the two major types
of expenses or costs that companies have to incur.
The indirect costs in the cost benefit analysis is bases on the rent of the restaurant. The rent of the
restaurant is high and as it can affect the cost flow and can lead to economic fluctuations.
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bSBMGT619 Identify and implement business innovations
Risk management matrix
Object
ive
Contex
t
Risk
source
Risk description Control
measure
Effectiv
eness of
measure
Risk rating
Cause Event Impact L C R
Mainta
in
profit
margin
Based
on the
previo
us year
it is
assume
d sales
will
increas
e
Organisati
onal risk
based on
the
customers
The
price
rates
of the
restaur
ant
The
cash
flow of
the
restaur
ant
Customer
performa
nces will
be
affected
Looking
for better
opportuni
ties in the
market
for
attaining
the
attention
of
customer
s
High Hig
hly
like
ly
1
H
ig
h
3 3
Excee
d gross
profit
Food
and
bevera
ges
cost
are
calcula
te from
50% of
the
sales
The
competitio
n in the
market
Cash
flow
affect
the
cost of
food
The
food
served
in the
restaur
ant
Economic
fluctuatio
n
Go for
best
products
at low
rates so
that cash
flow may
be
controlle
d
Medium Lik
ely
3
M
ed
iu
m
2 6
Viability and sustainability
Viability is related to the cash flow of the project with the financial resources so that it continues
for the long-term. The measuring of sustainability with the right skills and attitude towards the
achieving of goals in the market in future. The impact of environment is associated with
developing and operating the asset are within the carrying capacity of the restaurant, so that it
can play its part in ensuring a healthy environment into the future both for the staff and for the
customer.
It is easy to overlook or ignore viability and sustainability issues in the rush to secure the growth
of the restaurant but to improve or develop it both resources and time are needed in making the
challenges to become secure as there is always assumption that things will pan out OK or it can
be dealt with when the time comes but still going through it carefully is must.
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bSBMGT619 Identify and implement business innovations
Part B: Create a business strategy that incorporates innovations
Innovation strategy
Without an innovation strategy, innovation improvement efforts can easily become a grab bag of
much-touted best practices. There is nothing wrong with any of those practices per se. A
company without an innovation strategy won’t be able to make trade-off decisions and choose all
the elements of the innovation system.
As mentioned in part a, the Pesto restaurant can upgrade its waitlist management by introducing
a waitlist management application that will serve its customer online with the menu so that the
customer finds it easy to order their services instead of standing in line and waiting for their
orders. This will prevent unsightly crowding inside the reception area and will allow customers
to room for real without having to remain on the premises.
It can also be innovative with the idea of customer-facing tabletop tablets and kiosks. As it
allows the diners to browse the menu and send the orders directly to the kitchen. This is also
helpful in paying the bills without the need of a live server. It will be beneficial for the restaurant
because the faster the orders the faster the service providers, the happier the diners, the bigger the
tips, the faster the turnaround and which can result in greater sales in the restaurant. This will
help the weight staff to pay attention to the tables and guests who are empowered to order the
drinks and dishes at their leisure.
Though the restaurant opens for dinner timings only that is between 3:00 p.m. to 11:00 p.m. it
should also turn towards the online and mobile ordering that will be beneficial not only for the
restaurant but also for the staff. By effectively executing this plan it will be easy for its customers
to see the menu and buildings online which will be helpful for the business to get great
experience with the competition outside. It will cause less pressure on the wastage of food along
with eliminating the incorrect orders made over the phone. Making this happen can make
additional items being ordered online leading to higher sales.
Problems Pesto is facing
The problem it is facing is the cash flow of the finances. As it restaurant sells vegetarian and
poultry items in it man u you but it should also add plant-based foods to the menu you which
means using those ingredients that are high in proteins and also are gluten-free. Though the
restaurant is unique with its menu still consumers don't want to eat familiar foods all the time.
Along with the Tuscan and Italian cuisines, it should also add Asian, Latin, and Mediterranean
menu. Giving customers what they want when it comes to the flavours globally it becomes a
priority for the restaurant to add highlighted global items in it such as sources made from
ingredients that are authentic to the cultural cuisines.
Though the head chef and CEO in the restaurant, Rose Rossi have a very good experience in her
skills but still the competition in the market with other restaurants is very high for Pesto. The
rental cost is also very high of the restaurant as they are not facing good financial condition due
to their high costs of food they serve, they only have few and particular customers who come to
the restaurant for quality once in a week.
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bSBMGT619 Identify and implement business innovations
Strategies to implement
Corning’s approach to innovation makes perfect sense. The business strategy of the restaurant
only focuses on selling keystone components that significantly improve the performance of
customers’ complex system products. Executing this strategy requires Corning to be at the
leading the edge of glass and materials so that it is able to solve exceptionally challenging
problems for the customers and the restaurant and discover new applications for its technologies.
That requires heavy investments in long-term research with patience and innovations.
Unless innovation induces potential customers to pay more, saves them money, by providing
them with some larger societal benefit like saving time and money both for the customers and
beneficial for the restaurant as it will reduce the wastage of food and increase the sales online.
Because innovation can create value in many ways. It might make a product perform better or
make it easier or more convenient to use, more reliable, more durable, cheaper, and so on.
Choosing what kind of value your innovation will create and then sticking to that is critical,
because the capabilities required for each are quite different and take time to accumulate.
Understanding the behavior of the consumer is a major competitive factor of food industry and
also restaurant industry and the impact of food on health, and well-being, because it draws the
focus placed on consumers’ perception and attitudes towards food, by understanding the societal
trends, and most importantly identification of food they mainly make choice of the determinants
and consumer access to food. In restaurants business, innovation has been defined as an approach
new or novel to the business, to product, process or service changes in the business.
Legal and ethical guidelines
Innovations can help restaurateurs to reduce food, materials and energy waste, and also to help
others and become recognizable for green practice and social care. The statutory framework to
ensure the trading is fair for both the customer and restaurants is administered and enforced by
the Australian Competition and Consumer Commission. A fair trading office in each state or
territory provides advice on the business obligations and rights. The Australian Consumer Law
also provides the regulations on unfair contract terms, product safety laws, consumer rights
guarantee, lay-by agreements and penalties unsolicited consumer agreements, and other areas.
The Australian Government, state and territory governments, and local governments jointly
administer environmental protection. State and territory government fair trading offices are also
involved in the enforcement of product safety rules. The role of state and territory offices is
primarily to assist consumers.
Action plan
Making a solid restaurant marketing plan is always a good idea. The restaurant brand should
understand for the branding purpose the action plan is must. Along with marketing updating the
tools kit is also compulsory. In todays’ life the staff of the restaurant also wants to work for those
restaurants who treat their employees fairly, by offering career growth opportunities, is
beneficial, promoting work life and balancing it, and trying to make a positive impact on their
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bSBMGT619 Identify and implement business innovations
community and the world at large. As the Pesto Restaurant has the culture which is an organic
and living thing. This is so because they have their traditional cuisine that absorbs the energy
from the people who feed on the food served in the restaurant and attracts them but still only few
are there for quality. So the restaurant has planned to introduce plant based menus and wants to
implement them with their traditional menus on the table for their customers and consumers.
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bSBMGT619 Identify and implement business innovations
Part C: Evaluate innovation
Usefulness of the changes
After the implementation of plant-based menus there is improvement in the cash flow of the
restaurant. The majority of the customers after the survey verse satisfied with the increased level
of customer service and improved and the varied offerings that were offered to them. They also
responded that they would visit the restaurant again and will also recommend the restaurant to
others for their service and the food they have in their menu. Among the hundred people who
were in the conducted survey 60% of the respondents were the repeat customers and among them
40% of the respondents were those who were attracted by The innovation and the changes that
were involved such as the vegetarian menus and the commitment of the restaurant I want to
sustainability as it was seen in their local procurement practices and their support they for the
local Australian business.
Recommendations
And they have maintained the quality and service of the food in vegetarian menu also. So to
increase the profitability among those customers who were not sure that they will visit the
restaurant again as they have suggested that they would return if they would be any special event
of promotions in the Pesto, the restaurant can turn the existing customers into the promoters as
improving the table turnover rate and social media promotions is not enough. So the restaurant
can host events as they have mentioned that they would return if there would be any special
event. The restaurant can also provide offers and happy hours through leveraging online orders
and offerings smaller plates. Also the pesto restaurant can update the website and make it an
online marketing through the use of technology so that the customers can easily use the website
and order food whatever they like.
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bSBMGT619 Identify and implement business innovations
Part D: Role-Play – consulting stakeholders on improvements to
strategy and further innovation
CEO and head chef, Rose Rossi and Director – Operations and Finance, Lily Rossi and
manager
Manager: Good Afternoon
CEO & Director: Good afternoon
Rose: So what is this meeting for and what is the update of the innovations implemented? Is
there anything to bother about?
Manager: After the implementation of plant-based menus there is improvement in the cash flow
of the restaurant. The majority of the customers after the survey verse satisfied with the increased
level of customer service and improved and the varied offerings that were offered to them. They
also responded that they would visit the restaurant again and will also recommend the restaurant
to others for their service and the food they have in their menu. Among the hundred people who
were in the conducted survey 60% of the respondents were the repeat customers and among them
40% of the respondents were those who were attracted by The innovation and the changes that
were involved such as the vegetarian menus and the commitment of the restaurant I want to
sustainability as it was seen in their local procurement practices and their support they for the
local Australian business.
Rose: What about the other people who were in the conducted survey?
Manager: about 10% of the repeated customers were not sure about the visit again in the
restaurant. As they were not happy with the new menu implemented and have said that they
would visit the restaurant occasionally on any special events or promotions or if Pesto introduce
loyalty programs. And also there were 105 of the tourists, so they were also unsure about their
visit again in the restaurant.
Lily: Any of the update with the cash flow? Is it still the same or increased?
Manager: Yes, the new menu has boosted the income and increase of 51% is seen from the
previous recorded sales. The traditional supply channels are still used to the imported goods and
the Italian delicacies. But it has increased the sales as the restaurant now has two menus to serve
to its customers as there is now added procuring cost of the plant-based menu.
Lily: That is good to hear and a relief but still the customers who are not happy with the menu
and the new servings there should be involvement of some new implementations so that they
visit the restaurant, for that, we must do something for it.
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bSBMGT619 Identify and implement business innovations
Manager: We have maintained the quality and service of the food in vegetarian menu also. So to
increase the profitability among those customers who were not sure that they will visit the
restaurant again as they have suggested that they would return if they would be any special event
of promotions in the Pesto, the restaurant can turn the existing customers into the promoters as
improving the table turnover rate and social media promotions is not enough. So the restaurant
can host events as they have mentioned that they would return if there would be any special
event. The restaurant can also provide offers and happy hours through leveraging online orders
and offerings smaller plates. Also the pesto restaurant can update the website and make it an
online marketing through the use of technology so that the customers can easily use the website
and order food whatever they like.
Rose: That should be done as soon as possible. Make sure there occurs no delay in this
implementation as I want my customers to be satisfied with the service and products they are
being served.
Manager: Yes, Ma’am will look after it on my own so that nothing goes wrong.
Rose: So with that let us bring an end to today’s meeting. Hope this meeting is helpful with the
cons and pros.
Manager: Yes, ma’am. Thank you.
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bSBMGT619 Identify and implement business innovations
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