Strategies for Increasing Sales and Profitability of Little Chef Restaurant

The assignment content discusses the strategies for increasing sales and profitability of Little Chef restaurant through its new food concept. The firm conducted market research to identify customer needs and wants, which helped in developing an effective brand image. The dessert product was selected due to high demand and benefits for customers. The report highlights the importance of skilled chefs, sufficient finance, equipment, and machinery in producing a new product. Market research plays a crucial role in identifying actual demand and market situation. Social media marketing is also significant in providing information about the new product to customers. Finally, it concludes that effective promotional strategies and market penetration are essential for attracting large numbers of customers.

MENU PLANNING AND
PRODUCT
DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
1.2 An assessment of components that influence menu planning decisions ..............................1
2.1 Description of the stages of the planning of menu product development.............................3
2.2 An Evaluation of the influence on the development process................................................5
TASK C...........................................................................................................................................7
4.1,4.2& 4.3 Create and assess a new food concept including justification of company choice,
customer requirement and recommendation to launch the new concept....................................7
4.4 Review own performance in relation to developing and implementing new food concept,
suggesting improvements..........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
In the present era, food industry is one of the sectors whose demand is continuously
increasing in the world. The good food and innovative offering is welcomed and accepted
throughout the planet. Food business assists national income because it is one of the sector
which never end. The key source of profitability and success for every restaurant and food chain
is menu. The menu is a list of food dishes which offered by resurgent to guest (Wood, ed., 2010).
The following report provides a deep understanding and knowledge about food, recipe
development, and service system and so on. The major objective of this report is to understand
the process and system of food industry and the criteria through which it can gain success in the
competitive market. Furthermore, this report describes the factor which affects the decision
regarding planning menu. Moreover, the menu and product development assist restaurant in
gaining success has been also addressed in this report. In addition to this, stages of planning of
menu product development have been also emphasized with respect of Little Chef restaurant
chain which was established in 1958 in UK.
TASK A
1.2 An assessment of components that influence menu planning decisions
A menu is a list of food which is offered by the restaurant. It plays a very crucial role in
food and recipe development. Menu planning is the process of organising meals and food for
customer. With help of effective menu planning, firm can easily develop positive brand image in
the market and increase its profitability. At the time of developing menu it must consider
nutrition and ingredient that are available in the restaurant. Little Chef restaurant is the roadside
food chain of UK and it was established in 1958.The major objective of this organisation is to
deliver high quality food products to their customer. In the recent time, its revenue and image has
subsequently declined due to intense pressure of competition in the market. In order to increase
its profitability and brand image, the company is going to develop new effective menu. ( Wood,
ed., 2010) There are various types of menu such as A' la Carte, fixed price, carte du Jour, Table
d' Hote, dessert menu, beverage menu etc. Little Chef restaurant is going to develop dessert
menu. This is one of the most effective menus because guest prefers sweets or dessert after
taking food. While restaurant takes the decision about menu, then various kinds of components
may influence it. These factors are as follows-

 Competition- This is one of the major factors which affects the decision of menu
planning. While Little Chef restaurant takes the decision about menu so as it have to
analyse the market condition. Rivals in the market can largely affect the decision of menu
planning. With help of this analysis of competition, the prices and quality can decide of
the menu within the organisation. Customer taste and preferences- This is another essential component which can largely
affect decision of menu planning. Cited firm have to analyse the current taste,
preferences, life style, culture and region of the customer in the country in which
corporation operates business (Stiles, Altıok and Bell, 2011). Space and equipment in the kitchen- The availability of equipment and resources can
influence the decision of menu planning. If the required equipment and instrument of
cooking are not available within the kitchen then chef will not be able to produce
particular food. On the other hand, sufficient space within kitchen is also very important
aspect when chef cooks the food (Tsai and Lu, 2012) Thus, it can be said that space and
availability of equipment can impact the decision of menu planning. Availability of staff member- In the absence of sufficient quantity of staff, restaurant
cannot produce food for the guest. It is major component which influence the decision of
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menu planning. Highly skilled and talented staff can develop positive brand image of
restaurant in front of guest and dinners.
 Food labelling regulation 1999- As per this regulation, all food production units are
supposed to label of dishes with efficient food item in order to imply the clear idea about
quality and ingredients.
2.1 Description of the stages of the planning of menu product development
As per the above discussion, it has been ascertained that there are various kinds of components
which can affect decision of planning of menu. While Little Chef restaurant will develop the new
dessert menu to expand business profitability and growth then it has to considered several stages
of menu product development. These stages are as follows- Market understanding- It is the first and important stage under which firm have to
understand the actual market condition and analyse trend of market. In this stage,
company have to evaluate the availability of competitors in the market and their position Customer trends- After analysing the market trends and availability of competitors, in the
next stage organization is required to understand the actual need and wants of the
customer regarding the particular menu. In this stage, firm can analyse customer culture,
life style, region, choice, preferences etc. (Tian and Wang, 2010) Idea generation- After analysing the customer and market trend, restaurant generates the
idea about the menu. In this stage, the enterprise has an option to choose the best within
the market trend. Firm can generate innovative and creative idea about dessert menu after
analysing the entire trend of business. Idea screening-In this stage, company screens the idea about menu planning. This step is
crucial to ensure that which is less suitable ideas and which is the best idea for the
organisation. It is helpful stage to have a checklist that can be used to rate each idea based
on the factors required for successfully launching the menu in the market.
 Concept development- An attractive idea has to be developed into a product
development. In this stage, company develop the concept of product by help of attractive
and creative idea. This is different again from a product image, which is the customer's
perception of an actual or potential product.
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 Business analysis- After develop the concept of new product development, in next stage,
firm can take consideration about the internal and external business environment. In this
stage , company analyse the external components like political, economical social,
technological and legal component which affect the business at large manner. In addition
to this, company can also analyse its internal environment like skilled personnels,
finance, equipment, required resources, customer, suppliers etc. Marketing strategy development- After analysing the entire external and internal
business environment of company, in next stage firm will develop effective and attractive
marketing strategy.
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Illustration 1: New product development
Source:Sebastiani, Montagnini and Dalli, 2013.

 Product development and marketing mix- This is the stage of final product development
under which firm finally develops new menu in order to increase its profitability and
sales in the market (Sebastiani, Montagnini and Dalli, 2013). This step is called large
investment because the management finally invest the capital in order to produce the final
product in the company. In addition to this , the decision related to marketing mix has
also taken in this stage under which price, promotion , place and product related decision
has to be considered. Cited firm will develop final new food concept under this stage that
is dessert menu. Under this dessert menu, all kinds of dessert will include cakes, cookies,
biscuits, gelatins, pastries, ice cream, pies, pubbling, candies and so on. Market testing- Test marketing is very useful stage under which company test its new
product into the small segment and small group of customer. This stage assists firm in
identifying the customer review and feedback about the new product. By suing this stage,
company can easily determine the benefits of product. Furthermore, firm can also assess
the area of improvement within the new product (Stiles, Altıok and Bell, 2011)
 Commercialisation- This is the final step in the new product development under which
firm will face high cost for advertising and promotion. In this stage, product finally
placed in the market by use of various promotional and advertisement activities.
2.2 An Evaluation of the influence on the development process
As per the above discussion it has been ascertained that there are several stages of new
product development through which Little chef restaurant can able to develop new menu product
in order to gain effective success and profitability in the market (Ryu and Han, 2010) While,
company develops the new product then the development process may influence by various
factors. These components are as follows- Resources- The development process of product can affected by the resources such as
human , financial, physical and material. In order to producing the new unit of menu,
company have to consider the available resources. In the absence of human resources,
company can not proceed its business activities and function. A well skilled and talented
employees can boost development process by their effective skill and knowledge
(Heydarnoori and Czarnecki, 2007) On the other hand financial resources is also plays a
very crucial role in the development process because in every activities of business
required sufficient quantity of fund. In addition to this availability of equipment and
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machinery is also important for the production and manufacturing process of product. In
the absence of machinery and equipment, chef can not produce the new menu product in
the Little chef restaurant. Profitability- The profit margin is determined by the deducting the cost of production and
sales from the revenue generated. The falling margin or efficient profitability factor
influences the development process. Market testing- With the help of test marketing, company can able to know the customer
response and their review about the new product (Pantelidis, 2010). By this, firm can
make necessary changes in the new product so it can be said that test marketing can help
the corporation in determining the development process. Cost- Cost is the major factor which affect the development process. It is very important
for company to determine that how expensive is the development process. The cost
incurred in the development largely influence the product development. New product pricing- It is very important decision of the company to select pricing
strategy. It is directly relates to organisation success and profitability. Thus, pricing
strategy can also affect product development process (NS Robinson and Getz, 2014).
 PESTEL Analysis- The component of business environment such as political,
economical, social, technological, legal and environmental can largely affect the process
of development. Political is related to the country's government rules and regulations
which firm have to follow while it produce new product. Economical factor is related to
the economical condition of country like inflation, recession etc (Palmer, 2010). With
help of technology, firm can market effective operation, production and manufacturing so
technological factor can also consider in the development process. Social and cultural
factor is related to customer taste, preferences, culture, region so while company produce
the new product then it has to consider customer culture, their taste, life style and so on.
Environmental concern is also affected development process which includes weather,
climate, natural resources.
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TASK C
4.1,4.2& 4.3 Create and assess a new food concept including justification of company choice,
customer requirement and recommendation to launch the new concept
The Little chef restaurant is the very famous food chain in the UK which have 440
restaurants in the world. In order to provide effective and frequent food experience to customer,
it has situated on the road sides and commercial area in the UK. The major objective of this
restaurant is to provide high quality of food product and gain effective profitability. Due to the
high level of competition, company is facing the issue related to low sales and law profitability.
Thus, in order to get back its effective profitability and revenue, company is going to produce a
new food concept that is dessert menu (Ghodrati, Benjevic and Jardine, 2012) Under this dessert
menu, all kinds of dessert will include cakes, cookies, biscuits, gelatins, pastries, ice cream, pies,
pubbling, candies and so on. These all dishes will healthy under which not any kind of fat
ingredient. These all will sugar free and less fat dishes. These dessert will serve for all age of
customer in the market like old age, children and adults. The major feature of these desserts is
that they will healthy dessert which will provides several benefits to customer like adds extra
vitamins and Fibers , boost immunity, reduce blood pressure, balance hormones in the body and
so on. The major reason behind to select this dessert menu is that the tradition of eating a dessert
after having a meal is being followed by many cultures across the globe. This delectable dish
served at the end of the dinner signifies completion of the meal and creates a sense of goodness
with guest (Harris and Giuffre, 2010). Apart from the cultural importance and the feel good
factor, a dessert can also offer a variety of health benefits. In this manner, it is very important
for Little chef restaurant to identify the customer requirement about the new dessert product. In
order to identify the customer requirement of new dessert product, firm have to conduct market
research under which company analyse customer choice , preferences, taste, life style. With help
of customer survey, cited firm can able to identify the customer requirement about the dessert
menu. In this manner, firm has prepared the questionnaire and conduct survey under which
following question has been asked from customers-
1. How frequently you buy the food from the Little chain restaurant?
 Within one month
 Between 3 to 5 months
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 One year
2. Which one of the factor of food product affects your satisfaction level?
 Service quality
 price
 Good brand image
3. Do you health concious about the dessert menu?
 Yes
 No
 Neutral
4 Which factor in the dessert menu attract you mostly?
 Quality
 Taste
 Price
 Design
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On the basis of market research about customer requirement, it has been founded that
customer often demand for the quality product. They wanted to high quality of dessert in the
different fruit flavour. With the help of market research, customer taste, preferences and life style
has been also determined under which founded that customer required different dessert dishes in
different flavour in the law price. It must be in adequate quantity to meet the prices that customer
are paying (Gatchell and Helbing, 2013) It has also ascertained from the research that every
customer have very high value of money so that they desire such dessert menu which is available
within the reasonable prices. They are requires the food product that are value of money and
which gives full satisfaction to them in a reasonable price. In addition to this, it has been also
ascertained from the market research that customer are very concern about the market trend. The
design, quality, attractiveness, feasibility is also very important consideration for the customers.
Company should maintain the market trend while it develop new product for customer.
Furthermore, customer are more required and concious about the health so it is very important
for company to consider the health and safety of customer while it deliver and product the new
menu. Moreover, advertisement and promotional strategy is another major concern for the Little
chef restaurant because customer are attracted by innovative and attractive promotional
strategies. They required easy and convenient promotion through which they can easily
understand the message of company about particular product and services (Deshmukh and et.
al. ,2014). Customer has also required effective channels of distribution through which they can
easily get the product and service. In order to full fill this objective, cited firm will use the online
channel of distribution under which company will develop its own websites on the internet and
get order to dessert menu. Furthermore, company will use direct channel of distribution under
which company deliver product itself to customer. As per the above discussion it has been
ascertained that company has effectively determined the customer requirement about the new
product menu and it has founded that customer required high quality and quantity of dessert
menu in the reasonable prices.
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As per the above market research about customer requirement of dessert menu, Little
chef restaurant has been founded that it have taken the right and suitable decision regarding
selecting the dessert menu. Cited firm have analysed that in the UK market, there are very few
restaurant chain which offered different dessert menu to their customer so it can be said that in
the UK market there are very few rivals of new food concept (Dantzer and Kelley, 2007). Cited
firm is going to launch a different concept of new dessert menu through which it can gain high
profitability because according to market research it has been founded that there are very fewer
competitors in the market of dessert menu and customer have high demand toward this new
product concept. The new food concept is the significant part of menu development and food
chain success as it influences the efficient understanding of the product services and consumer
perception about the same. Following are some justification of the development of new food
product of Little chef restaurant-
 In the UK market there are very few restaurant chains which provides dessert menu to its
customer so it is very important advantage for the cited venture to launch dessert menu in
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the market. As per the research it has been also ascertained that customer have high
demand toward the dessert product because low availability of high quality dessert food
in the market. Thus, the new product concept is very suitable and profitable for cited
restaurant through which it can gain high market share and profitability.
 The dessert menu is a menu which requirement can never end in the food industry. The
tradition of eating a dessert after having a meal is being followed by many cultures across
the globe (Condrasky and et.al., 2013) This delectable dish served at the end of the
dinner signifies completion of the meal and creates a sense of goodness with guest. Apart
from the cultural importance and the feel good factor, a dessert can also offer a variety of
health benefits. So it can be said that dessert menu have various benefits for customer and
its trend will never end in the universe so that company have selected the dessert menu.
 As per the market research it has been founded that customer are more health concious
so for them dessert menu will more appropriate because it have various health related
benefits like adds extra vitamins and Fibers , boost immunity, reduce blood pressure,
balance hormones in the body and so on. Thus, dessert menu decision has taken by the
Little chef restaurant.
 In the Little chef restaurant, there is a sufficient quantity of necessary resources such as
human resources, financial resources and equipment. Thus, it has effectively produced a
dessert menu.
 The new food concept will more profitable and beneficial for the cited venture because
company have adequate quantity of skilled and trend chef which have effective
knowledge of preparing dessert dishes. Furthermore, dessert menu dose not required high
level of expensive equipment so that cited firm has effectively produced this new food
concept.
As per the above discussion it has been ascertained that there are various kinds of reason of
selecting dessert menu for cited venture like high demand , low competitors, availability of staff
and equipment, effective market trend and so on. Thus, cited firm has chosen this dessert menu
as a new food concept under which all kinds of dessert has included.
Justification of recommendation
As per the above discussion it has been ascertained that the Little chef restaurant can
easily gain the high level of profitability and market share by this new food concept in the UK
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market. In order to enhancing the new concept is been introduced in the market. For the launch
of the new concept, following recommendation are been adopted by the cited venture-
 Attractive design and packaging- This is most effective strategy to increase the
performance of new food concept[t in the market. The dessert dishes should decorate and
serve in different and attractive designs (Chapman, MacLaurin and Powell, 2011)
Attractive packaging and design in the launching of dessert product will defiantly
increase the demand of customer and enhance profitability.
 Discount and offers- This is another major strategy to enhance the sales of dessert
product in the market. Cited firm should provide attractive discount and offers with
dessert product so as it will able to attract the large number of customer toward product. Feedback from customer- This is the best way to increase the sales and profitability of
the cited firm under which company can identify customer reviews and feedback related
to new food product. In this manner, company have option to get comment of customer
related to new product (Chapman MacLaurin and Powell 2011) After gathering
information from the customer related to product, firm can make improvement in the new
product. This will assist in improving the performance of new product in the market.
 Social media marketing- In order to increase its sales and effective launching in the
market, firm should use social media marketing because it is one of the best marketing
strategy through which firm can boost its sales. In this manner, company can promote its
product on the various channels of social media like Facebook, twitter etc.
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4.4 Review own performance in relation to developing and implementing new food concept,
suggesting improvements
Creation and assessment of new food concept plays most significant role where it
requires proper skills and knowledge in development. Further, it is necessary for business to
ensure the person who has been assign responsibility must have proper capability (Boonme and
et. al., 2014). As per the above discussion it has been ascertained that there are various kinds of
strategies through which Little chef restaurant can increase its sales and profitability in the
market. In the entire process of new food concept, proper e market research and evaluation of
market trend is very important through which cited firm has able to know the actual customer
needs and wants related to new food product. With help of this entire process of new concept, the
cited firm have gain the opportunity to develop its effective brand image in the market. The
major objective of this development of new food concept is to increase existing image of
corporation in the market and gain effective profitability. Cited firm has selected the dessert
product under which all kinds of dessert has been included. The major reason for selecting this
dessert is to high demand and its benefit for customer. As per the requirement of customer and
low competitors, cited firm has been choose this dessert product as a new product. In this
manner, various kinds of decision has been taken into consideration like marketing strategy,
equipment, distribution , packaging, finance, production , manufacturing etc. In order to produce
the new food product, cited firm required a well trained and skilled chef who have sufficient
knowledge and skill to produce the effective dessert food (Brady, 2006). With assistance of well
trained chef, sufficient quantity of finance, equipment and machinery , the new dessert menu has
been launched by the organisation. I have analysed that in order to improve the business
performance and profitability in the market, company requires innovative idea and creativity. I
have assessed that market research plays a very crucial role in this entire process of new concept
because with help of market research, cited firm have able to identified the actual demand and
market situation in the UK. In addition to this, I have also assessed that high skilled and talented
staff member is also very important part of the organisation through which firm can able to
develop new idea and creativity with product and services. In this entire process of new product,
social media marketing has also played very significant role through which enterprise has able to
provide the information about dessert product to various customer by online.
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As per the entire discussion about the new product concept, I have observed that Little
chef restaurant should increase its promotional strategies and advertisement activities. With help
of high promotion, firm will able to provide the information about the new dessert menu to large
number of customer. In addition to this, firm should use market penetration strategy for this new
product. As per this strategy firm should charge very low price from customer for product at
initial level in the market. Once the product gets stability in the market, after that the prices
should increase. This is the best strategy to attract the large number of customer toward product.
CONCLUSION
From this project report it has been concluded that high skilled chef and finance play a
very crucial role in the new product development. While chef takes the decision related to menu
then it has to consider various components such as availability of staff, customer taste and
preferences, competition, current market trend, finance etc. It has also concluded from this report
that with help of effective market research, company can easily gather the information about
customer taste, choice and preferences about the food.
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REFERENCES
Books and Journals
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