Market Analysis in the Restaurant Industry in Kenley, South Croydon

This document provides a market analysis of the restaurant industry in Kenley, South Croydon. It includes an industry analysis, market size, main competitors, market segment, and target market segment strategy.

BUSINESS PLAN

TABLE OF CONTENTS
MARKET ANALYSIS....................................................................................................................3
Industry analysis.........................................................................................................................3
Target market segment strategy..................................................................................................4
Positioning..................................................................................................................................5
Corporate social responsibility....................................................................................................5
OPERATIONAL PLAN..................................................................................................................5
FINANCIAL PLAN.........................................................................................................................6
REFERENCES..............................................................................................................................10

MARKET ANALYSIS
Market analysis is a tool which assist the company in analysing current requirement
prevailing in market and try to adapt to these requirements into their operations (Jogaratnam,
2017). Kenley is an area in south of London among the Borough of Croydon and county of
Greater London.
Industry analysis
The restaurant industry is the one which is continuously growing and developing. The
reason underlying this fact is that the consumers are much attracted towards the food and
spending leisure time. Due to this reason the business of restaurant industry in Kenley, South
Croydon has increased to a great extent. In Kenley, South Croydon there are large number of
restaurant and cafes which are operating and giving large competition to one another. In the
present modern world people are attracted towards consumption of food in the restaurant and
cafes. Due to this reason, hospitality industry and the restaurant business has increased to a great
extent. There are different types of restaurants providing various kind of services to consumer
like take away, steaks, fine dining, casual dining and many other kind of services.
Market size
The market size of the restaurant industry is very large as it comprises of different types
of restaurant and café and other place for eat out. This industry in Kenley, South Croydon
involves different type of restaurant and other related services being offered to consumers. These
restaurant and related establishment provides different food services like different types of
cuisines, pay and carry services, beverages and alcohol and other drinks. The restaurant also
involves the services like music concert, live music, dance shows and many others. Currently in
UK there are many different type of restaurant operating in the whole of country. By referring to
the data it is clear that the revenue of the food and restaurant service is being increasing event
after the impact of COVID 19. This is particularly because of the reason that when the consumer
comes to consume food at restaurant then this increase profits of companies and as a result of
this the overall income of country increases.
Industry participant
There are large number of participant within the restaurant industry and this improves the
working of industry to a great extent (Song, Yeon and Lee, 2021). The major participant in

restaurant industry involves companies like Domino’s, McDonalds, KFC, Nando’s, Subway and
many other different types of restaurant chain and other outlets.
Main competitors
The main competitors in Kenley, South Croydon involves Black Burgers, Zero Quattro
restaurant, La Scarpetta, Toby Carvery, Thai venue, Royal Tandoori Selsdon, Chez Vous, Little
Bay Croydon and many other different types of restaurant (300 restaurants near Kenley, 2021).
In Kenley, South Croydon there are large number of restaurant and due to this the competition is
very high.
Market segment
The market segment which is generally focused by restaurant in Kenley, South Croydon
is on basis of demographic and geographic segments. Along with this major focus will be laid on
residential and business community. This is particularly selected as this is the major segment
which is more attracted towards the concept of restaurant and fast food.
Target market segment strategy
Market need
Currently the need of the consumer is high towards the consumption of the fast food and
related items. This is majorly due to the fact that when the company will not be focusing on need
of consumer then this will not increase the business of restaurants (Jogaratnam, 2017).
Furthermore, when the company will not analyse the need of consumer then they will not come
and consume food there. Hence, in order to attract large number of consumer it is essential for
market to first analyse need and requirement.
Market trends
The current trend in restaurant in Kenley, South Croydon and whole of UK is towards the
healthy and organic food. This is particularly because of the reason that consumers have become
more health conscious and because of this they prefer healthy and organic food. In addition to
this another trend among consumer of UK is increasing towards consumption of locally grown
food. This is particularly increased because of improving local working conditions. Furthermore,
in addition to this with respect to COVID 19 the takeaway concept of food (Kim and Jang,
2020). This has increased as people not have to wait and eat out there only. Rather they can place
their order and as the order is prepared, consumer can take and consume it at their own place.
Market growth

Since the starting there is high growth in restaurant industry as people have become more
attracted towards the consumption of the foods in market. The restaurant industry has seen a
good increase and growth in terms of revenue and number of consumers. At initial stage
consumer of restaurant were less and as a result of this revenue was also low. With gradual
development and changes in need and preferences of consumer the trend moved towards
consumption of the food in restaurant. Hence, this resulted in increase in number of consumer
which in turn increased the revenue of restaurant and fast food chains.
Positioning
This is the most essential aspect of attracting consumer towards the consumption of the
product and services in a restaurant (Bi and et.al., 2021). The positioning is referred to as
creating an image of product or service in such a manner that consumer remember the product or
service for a longer period of time. In order to position product and services of SMOKIN’
GRILL STEAKHOUSE AND BAR the major focus will be laid over quality of product. This is
particularly because of the reason that if quality of food will be good then consumer will
remember the product and services for a longer. Along with this another motive of restaurant is
to create such an image of its product and services that if consumer is asked about quality of food
then they must remember only a single name that is SMOKIN’ GRILL STEAKHOUSE AND
BAR.
Corporate social responsibility
In current competitive world it is very essential for companies to make sure that they take
proper care of society as well at time of running business. this is majorly pertaining to the fact
that company operates in society and takes resources from it. Hence, it is the duty of company as
well to take care of society and its upliftment. For this company provided 50 % off to all the staff
of NHS at time of lockdown. In addition to this company also provide food to homeless people
with help of Sutton Nighwatch Charity. Along with this hotel is also sponsoring the local football
team in order to motivate young people to come and enjoy football. This compliance with CSR
activities assist company in creating a better image within market. This in turn assist hotel in
increasing its market share and number of consumers as well.
OPERATIONAL PLAN
Designation Number of people Roles and responsibility

Full time chef 3 Major role of full time chef is
study recipes ad set up menu.
To prepare dishes as per order
of consumer.
Another responsibility is to
delegate task to kitchen staff.
Supervising other cook and
staff is also responsibility of
chef.
Part time chef 3 The major role of part time
chef is to be available at time
of requirement to prepare
dishes.
Ensuring the presentation of
plates and serving of dish in
presentable manner is
responsibility of chef.
Full time waiters 3 These people are responsible
for taking order of consumer
and serving them with their
orders.
Another responsibility is to
greet consumer and provide
them with menu cards.
Part time waiters 3 Role of part time waiter is to
available at time of
requirement for taking orders
and providing consumer with
their orders.
Arranging tables and keeping
it cleaned is also responsibility

of waiter.
FINANCIAL PLAN
Start-up cost
The start-up cost is defined as the expenses which is being incurred at time of creating
and developing a new business venture. For the starting up of SMOKIN’ GRILL
STEAKHOUSE AND BAR the start- up cost is £120000. This amount of money will be used in
the management and starting up of business. if the business will not be managed in this amount
then more funds will be borrowed from other sources.
Business forecast
Sales forecast (amount in 000)
Product range 2021 2022 2023
Starter 16 25 30
Main course 40 45 57
Dessert 20 35 43
Total sales 76 105 130
Particulars 2021 2022 2023
(amount in 000)
Cash inflows
Opening cash inflow 85 135 220
Sales revenue 76 105 130
Other income 48 53 59
Total cash inflows 209 293 409
Cash outflows
Material 20 23 22
Labour 16 15 19
Other expenses 22 25 30
Administration expenses 16 10 14
Total cash outflows 74 73 85
Cash deficit / surplus or
closing cash balance 135 220 324

Business forecast is a tool or technique with help of which company is able to predict some
aspect of business. This involves factors like sales, expenses and other related factors. The above
forecast is related with sales and this outlines the estimated sales which SMOKIN’ GRILL
STEAKHOUSE AND BAR can have with their services of starters, main course and dessert.
Further the estimated income and expenses are listed and cash balance is also calculated.
Break-even point
BEP
Particulars Formula Amount
selling price per unit 200
less: VC per unit 150
Contribution Selling price- VC 50
FC 60000
BEP (units) Fixed cost/ contribution 1200
BEP (rupees) 240000
From the above calculation it is clear that SMOKIN’ GRILL STEAKHOUSE AND BAR will be
in position to be at no profit no loss situation when they produce 1200 units. This is particularly
because of the reason that when the company will increase its production over 1200 units then it
will start earning profit. This will assist company in earning more of the profits and will improve
market share of company.
Profit and loss analysis
Particulars 2021 2022
Revenue
Sales Revenue 48500 55000
Service Revenue 30000 35750
Interest Revenue 10000 20000
Gain on Sales of Assets 59650 68150
Total Revenue & Gains 148,150.00 178,900.00
Expenses
Advertising 25000 19200
Delivery/Freight Expense 6000 7560

Depreciation 3850 4500
Insurance 3250 4340
Interest 4500 5000
Office Supplies 9250 8500
Rent/Lease 18550 22000
Maintenance and Repairs 7500 7000
Travel 14260 20000
Wages 9500 10000
Utilities/Telephone Expenses 5000 4000
Other Expenses 5250 6000
Total Expenses 111,910.00 118,100.00
Net Profit (Loss) 36,240.00 60,800.00
From the above projected profit and loss, the company will earn the profit of 36,240.00 in the
year 2021. On the other side in 2022 the company will be earning the profit of 60,800.00. The
major reason for this is that from 2021 to 2022 the total income has increased. On the other side
the expenses have also increased but this increase was not that high as compared to the increase
in income. Hence, it can be evaluated that the if business is going to manage its expenses and
income then this will increase profitability of company to a great extent.

REFERENCES
Books and Journals
Bi, Y., and et.al., 2021. Stress on Frontline Employees from Customer Aggression in the
Restaurant Industry: The Moderating Effect of Empowerment. Sustainability, 13(3),
p.1433.
Jogaratnam, G., 2017. How organizational culture influences market orientation and business
performance in the restaurant industry. Journal of Hospitality and Tourism Management,
31, pp.211-219.
Jogaratnam, G., 2017. The effect of market orientation, entrepreneurial orientation and human
capital on positional advantage: Evidence from the restaurant industry. International
Journal of Hospitality Management, 60(1), pp.104-113.
Kim, H.S. and Jang, S.S., 2020. The effect of increasing employee compensation on firm
performance: Evidence from the restaurant industry. International Journal of Hospitality
Management, 88, p.102513.
Song, H.J., Yeon, J. and Lee, S., 2021. Impact of the COVID-19 pandemic: Evidence from the
US restaurant industry. International Journal of Hospitality Management, 92, p.102702.
Online
300 restaurants near Kenley. 2021. [Online]. Available through: <
https://www.squaremeal.co.uk/restaurants/kenley/local-restaurants >