Start-Up Business: Analysis of EFC Restaurant for European Food and Cocktails in UK

This report provides a comprehensive analysis of the start-up business EFC Restaurant for European food and cocktails in UK, including the different types of business structures, macro and micro environment factors, and recommended strategies for attracting more customers.

START -UP BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Different types of business...........................................................................................................3
Business structure (Sole trader)...................................................................................................4
Macro environment......................................................................................................................4
Micro environment.......................................................................................................................6
Recommendation and impact of business....................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
The present report is based on new start-up with name EFC Restaurant for European food
and cocktails in UK in order to provide best and high quality services to customer. The term
start-up are helps to developing the business and technology skills in order to produce new
product or services which are highly demanded in market (Malik and Waqas, 2021). The study
also identifying internal and external factors that can be affected the organisation while starting
business in United Kingdom. Also, analysing the other framework that re help to considering all
the factors that re related to pestle analysis for consider the competition. Further, using porter
five forces so that it can identify the information such as suppliers, customer etc. Lastly, giving
the recommendation by considering all the limitation and outcomes.
MAIN BODY
Different types of business
There are different types of business organisation such as statutory bodies, sole
proprietorship, co-operative societies, Hindu undivided family, private company etc.
Partnership- In this there are two more partners who are run the business by dividing
financial & legal responsibilities equally. It must be registered for IRS purpose.
Sole trader- This kind of business is owned by one person there is no financial or legal
responsibilities on other person. The profit earned by company is totally for the owner.
Limited partnership- It is the form of partnership there are different types of method for
raising the fund from investors that are not so active for daily activities.
Corporation- There are multiple shareholder are included in this corporation which all are
independent and this business are help for establishing with the help of employees.
LLC- There are very less regulation in this business by blending with corporation and
partnership. There is very less property at risk.
Non-profit- In this non-profit organisation there is possibility of exchanging the pay
expenses. In this there are large number of donors who help the business for further growth.
Co-op- The earning is divided among all the members who are in the organisations, there
are no external stakeholder are related to the organisations. Also, only member can use the
services which are provided by company.

Business structure (Sole trader)
The present report based on the sole proprietorship which has the simplest business
structure that are involves only one individual that are responsible for all day to day operation in
the business. The EFC are also followed to the hierarchical business structure. There are 20
people will wok in the business in which 8 will waiters including 2 female, 2 chef, 1 bar tender
and 3 HR and 1 finance person who will control all the accounts and budget for the restaurant.
For marketing there will be 3 people who will manage online and offline services related to
marketing. The product will be buy from nearby suppliers of London so that the logistic expense
will less. All the services provided by the EFC are unique in order to offer high quality of food
and drink that will attract customer. Also, there is no European restaurant nearby that place so it
can be beneficial for the organisation. The major competitors are Six Portland Road, Spring etc.
The business start up is related to sole trader that are known as self-employed person who are
owning and run the business by their own as an individual. The sole trader is the one who are
only liable for all the debts and personal assets that are used in the organisation. For the
restaurant there are need of only one persona that is why it is better to start alone and latter it can
be changed according to the situation (Manomenidis, Panagopoulou and Montgomery, 2019).
There are various types of advantages of sole trader such as one boss who can keep all the profits
after paid taxes. Also there are low start-up cost with the benefit of maximum the privacy so that
it can help for operating and establishing the business at the simple level. This is also help for
easy to change the legal as well mas physical structure according to changing the circumstance.
Macro environment
It has been critically analysed that there are wide variety of product and services are
offered by EFC and it will established in UK so it is important to analyse all the factors that
might be impacted the organisation in the positive as well as negative (Darmansyah, 2018). All
the factors are related to political, economic, social, technological, legal and environmental. This
framework are help to identifying the impact in the business environment.
Political factors- There are so many factors which are identifies in this factor such as tax,
laws and political stability are affect the EFC (Febrian and Ahmad, 2021). Government are
distract the organisation in order to change the laws regarding the cocktail services and increase
the tax rates an also the trade policies are affected in order to maintain the revenue of the
company. On the other hand, There are new global trade agreement which can be opportunity for

the company because it is help for operating the business at the global level. It helps to increases
the competitive strategy with intensive growth strategies.
Economic factors- The economic factors are related to interest rates, inflation,
unemployment rates etc. When the inflation rate change for the country it may affected the
growth of economic rate. For the EFC the inflation rates are impacted positive because it helps to
increases the customer so that it can help to increases the productivity of the organisation
(Hestiningrum and Prawiraatmadja, 2021). The unemployment rates are impacted in order to
decreases the opportunity of employment. The company always aware about the changes in
policies for the taxation. It has impacted bad when importing the cocktails from outside and the
price of the products are increased in order to accessibility. The labour cost are high in UK that is
why while operating constructing the organisation it may affect by the high cost.
Social factors- This factors are related to the income, employment, education, safety,
community and social support that can be affect EFC. The income of an individual are affect the
demand of the consumer because restaurant are necessity of the people and that is why the most
of the targeted customer related to high class income. So that they can visit the restaurant
significantly also the targeted age is between 20-35 because youngsters are fond of this types of
place in order to explore more (Vintilă and Ţenea, 2017). There are different types of trends and
culture are followed by the people and it is help tos increase the number of customer every
month.
Technological factors- There are different types of technology which are include such as
information, production, logistic etc which are affect the EFC in the positive manner. These type
of technology are affected the production. Also, technology advancement are help to brought
new opportunities which are help to increase the production and that is why it helps to increase
the customer satisfaction. In the restaurant there are so many technology advancement are helps
in accounts, automatic door at the entrances. These are help to increase the customer satisfaction
and it directly attract the customer, social media also play important role in order to increase the
visibility of the firm that can impacted positive.
Legal factors- There are some of the legal factors which are need to consider while start-
up the business, health and safety, consumer right and laws, advertisement standard. These
element are need to consider because it has impact on the reputation of the company. The
consumer rights and laws should be maintained by the EFC in order to protected the brand image

of the firm. It is important to consider the laws regarding the safety of employees because it can
be affect the organisation legally (Michaud, Meshekow and Gerard, 2021). When the business
not follow the laws that are given by the government it can be faced the penalties which may
impacted bad on the reputation of the business.
Environmental factors- In UK it is important to consider all the environment factors
that are need to consider in order to maintain the sustainability of the environment. This activities
are help the society which are encourage others in order to discard the use of plastic bags. All the
items used by the company will be important to used in the recycled manner so that it can
increases the productivity (Kasahun, 2020). There are so many initiative that are need to taken by
the company such as non-plastic items which are not affect the environment and inspire people
buy making the infrastructure as evergreen nature that can also help the organisation in order to
atrtract the customer.
Micro environment
Porter five forces
This framework are help to identifies the competitive forces that are help to shape the
industry's strength and weakness. It helps to measure the competition intensity, profitability and
attractiveness. The are forces that are follows:
Competition in industry (low)- There are large number of competition seen in UK for
the restaurant and to make it different EFC will only serve European food an wide variety of
cocktails so that it can help to increases the customer base. Customer always look for the better
services which are important to follow because there are some of factors that are need to consider
such as provide discount to customer and also provide them coupons at the time inauguration so
that they can visit again with the excitement that are increase the brand image of the restaurant in
order to differentiate from others (Rengel, Eyerkaufer and Schnorrenberger, 2019).
Threat of new entrants (high)- There are large number of people who are willing to
owing business and after the pandemic people are getting more opportunities for start-up that is
why it is the threat for the company. Moreover, it is possibility of copying the idea by other in
order to negotiate better terms. Any company can choose to opt and become competitor so it is
necessary to hire those employees who have the speciality of doing the work.
Power of suppliers (medium)- The power of supplier are affected because there are
large number of suppliers in UK who are making the key inputs services and goods. They are

able to charge high amount because to import the product from same industry can get the benefit
from it. When the company depend on the same suppliers it can increases the input cost which
are impacted negatively.
Power of buyer (medium)- The power of customer/ buyer are impact at average level
because it is only depend on the brand image of the company and how it can attract the customer.
When the organisation has independent customer it can help to increases the customer base more
easily and it why it will not going to impact the firm (Glasgow, Harden and Estabrooks, 2019).
Threats of substitutes (low)- There are large number of restaurant are there in UK and
that is why it can be impacted the organisation by providing substitutes products. It can affect the
organisation by increase the price of the product and services an also competitors can copy the
idea which are impacted on the reputation of the organisations.
External and internal factor
There are so many factors that are need to identify while starting a business which are
influence all the operation of business that are related to negative as well as positive. Some of the
internal factors are staffing, corporate culture, technology and finance (Kim, Lee and Sohn,
2020). Corporate culture can be defined as all the factors that are related to beliefs, norms and
values that are evident and visible for all the employees, there are some of the examples such as
staff uniforms, the corporate logo and colour scheme, policies, reward and incentives for staff,
team building for employees etc (Dmitrijeva and Baines, 2020). For the restaurants all the factors
are influence the EFC in order to make different from others are it is help to increase the brand
value of the organisation. Staffing is another factor that are important for the business
organisation because it can be affected by quality of people who are working in the organisation
such as managers, employees etc. So, that for the cited firm there are experienced employees are
required who have perfect knowledge about the cocktail and European food so that they can help
to take the decision making of the company.
The external factors are related to the competitors, weather, economy and customer that
are make the huge impact for the organisation performance and success. It affect the profitability
and stability of the entity (Sarwar, Ramachandran and Hosseinian-Far, 2017). Competition is
one of the major threat for the organisation because there are large number of restaurant are there
in UK. So, this factor can be affected in order to attracting the customer. That is why EFC will

offered high quality of product and services so this can help to attract the customer as well as it is
also help for building the brand image in the competitive market.
Recommendation and impact of business
It has been recommended that there are different types of strategies used by the company
such as using social media in order to increases the customer base and share the day to day
pictures of all the activities which are happened to increases the consumer base. Also, EFC can
provide discount to customer in order to attract them and on the festive season like new year
Christmas it can offer the party on the fixed rate so nit can attract the customer at the large
number (Nasim, 2018). There are different types of free cocktail will be offered in order to
attract the customer and it increase the build image of the company.
CONCLUSION
It has been concluded that there are large number of restaurants in UK but cited firm will
offer only European food and wide range of cocktail in order to target large number of
youngsters. Further, used the pestle framework in context to organisation's factors that affected
the restaurant. Moreover, identifies factors with the help of porter five forces in which all the
threats are considered and lastly recommended the social media strategy for increasing the
customer base. The report discussed about the sole trader that are used by company in order to
bear all profit and loss by their own. Also, analysed the internal and external factors that are
important to consider while starting the business.
REFERENCES
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