A Comprehensive Report on the Effectiveness of Restaurant Business

This report provides a comprehensive analysis of the restaurant business, exploring its nature, advantages, and disadvantages. It delves into the application of PESTLE analysis for strategic planning, the impact of globalization, and the role of technology in improving operations. The report identifies key customer demographics and strategies for attracting and retaining them, including the importance of ethical business practices and treating staff ethically. It concludes that running a successful restaurant business requires careful consideration of various factors, including ethical behavior and understanding the specific nature of the business. The report uses various sources to support its arguments.

EFFECTIVENESS OF
BUSINESS WORLD

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a. Nature of Business..................................................................................................................1
b. Advantages and disadvantages of owning a business.............................................................1
c. Advantage of PESTLE in planning new start-up....................................................................2
TASK 2............................................................................................................................................2
a. Impact of globalisation on restaurant business........................................................................2
b. Technology that can be used to improve business operations................................................3
TASK 3............................................................................................................................................3
a. Most likely customers of business..........................................................................................3
b. Ways to attract more customers..............................................................................................4
TASK 4............................................................................................................................................4
a. Importance and role of ethical business..................................................................................4
b. How to treat staff Ethically.....................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Doing a business is not an easy task as it is been assumed. Environment of a business
have a significant impact on the growth and performance of a business. The most growing
business nowadays is restaurant business and so the present report is focused on the nature of
restaurant business and how one can improve its business using technology and other factors.
Report also provides advantages and disadvantages of owning a business.
TASK 1
a. Nature of Business
Restaurant business is a service providing business that have to adhere to various laws
like food and safety etc. It is a business where products as well as intangible services like
cooking is sold to the customers. Income of restaurant business is raised from the food services
that is provided to customers. Basically it is an industry of food service. Objective of the
business would be providing best and healthy food to the customers with the mission of growing
fast in the food service industry by providing the best quality food with the best quality services.
The most two important factors in the restaurant business is availability of raw material along
with the skills of cooking (Sekaran, U. and Bougie, R., 2016.). Business would be unsuccessful if
there would be lack of any of the factor.
b. Advantages and disadvantages of owning a business
Following are the advantages of owning a business:
 Owner has a total control on the activities of his business and is responsible to take final
management decisions.
 Growth or setback of business, both are in the hands of owner as it depends upon the
capability of owner.
 Working hours can be managed as per the convenience.
 Owning a business gives opportunity to do what you enjoy. Working for passion helps in
batter handling a business (Advantages and disadvantages of owning a business, 2017).
Following are the disadvantages of owning a business:
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 High amount of investment is required in order to start a business.
 The biggest disadvantage of owning a business is a person is wholly liable for all the
associated financial and business risks.
 It is hard to trust junior employees and so all the activities of a business has to be
managed by own that is more time consuming.
c. Advantage of PESTLE in planning new start-up
Pestle analysis helps in strategic planning of a business. Conducting a Pestle analysis
before starting a business provides with the answer to the following questions:
 How political factors can affect the smooth running of business? Like in restaurant
business, what kind of government decisions can affect the functions of business.
 If business is started by taking a loan, how changes in interest rate can impact functions
of business (Sekaran and Bougie, 2016).
 Social factors has a great impact on restaurant business. Business must not sacrifice
quality of food in order to provide cheaper rates to attract customers.
Thus, there are many other factors, impact of which can be identified by using PESTLE
analysis before starting a business.
TASK 2
a. Impact of globalisation on restaurant business
Globalisation is directly related to the economy and agricultural sector and has provided a
wider scope for every industry and thus it has also provided array of choices to restaurant
business. Many ingredients are required that may not be available in domestic country, through
globalisation, such ingredients can be obtained from other countries in a couple of days. Along
with many advantages, some threats have also occurred to the restaurant business. Following are
the impacts of globalisation on restaurant business:
 It has facilitated with more options of ingredients.
 Increased the cost of storing of such ingredients for longer time.
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 Quality of ingredients that is coming from other countries cannot be controlled and hence
can cause negatively on the health of customers is used.
 Globalisation has also offered numerous of opportunities to sell services around the
globe.
 It has provided an opportunity to expand business across the boundaries.
b. Technology that can be used to improve business operations
Technology plays an important role in the growth of any organisation. Likewise, in the
field of restaurant business technology can help in attracting more customers and can increase
the performance of restaurant industry. Following two technologies can be used by the owner to
improve his business:
Online table booking services: A trend has shown that there is an increased traffic in
restaurant. This has made difficult for customers to get a table in case of rush. Therefore, an
online service can be started that will allow customer to book their desire table even before
stepping into the restaurant. This will increase the brand image of restaurant as well. Along with
table booking service, service to pre order food can also be provided to the customers. This will
help in saving the time of waiting.
Mobile Payment: Cash less technology is the best technology that also helps in
improving economy. Most of the people have a habit to not carry much cash in hand, and mobile
wallets has also facilitated their this habit. Thus, providing a service where customers can pay
their bill amount though mobile phone or by electronic transfer will add to the value of
restaurant.
TASK 3
a. Most likely customers of business
Restaurant is a business where every age group of people like to visit. Key customers of
restaurant are people from age group of 16 to 50. However, following factors helps in
determining the potential customers of a restaurant:
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Demographic and location: Location of restaurant is the major factor that helps is determining
the potential customers of restaurant. Location of the restaurant must be considered by
identifying potential customers in the early stages of planning.
Prices and menu: Prices and the options available in menu also determines key customers of
restaurant. For example mid range prices can be afforded by all class of people but high range
prices can only be afforded by high class people (Kim, Lim and Brymer, 2015). Therefore, if the
prices are, middle class people would hardly like to prefer the restaurant and so high class people
would be the key customers. Same is with the options available in menu, taste of the menu will
attract the people who prefer that taste for example, a person who is fond of Italian food would
hardly like to visit a chinese restaurant.
b. Ways to attract more customers
Customers only make a business successful. Therefore, primary focus of business should
be on attracting more and more customers. Following ideas can be used to attract more
customers:
 Offer free Wi-Fi
 Scheduling live music in the restaurant
 Serving the best quality of food with the best quality services
 By hosting holiday parties
 By providing welcome drinks and snacks
 Providing soothing ambience
TASK 4
a. Importance and role of ethical business
Ethics is important in all the types of business whether from any industry. It is concerned
with moral behaviour of and judgement of individual about what is wrong and what is right.
Decisions that are taken in a business will significantly influence the culture of business.
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Corporate social responsibility and ethical behaviour within an entity can provide various
benefits to the business:
 More customers can be attracted that will ultimately boost the sales and market share.
 More recognition of business in the market and community.
 Will help in retention of employees which in turn will increase the productivity (Oriade
and Robinson, 2017).
 High profit and growth in the market share will attract more investors to the business.
For example, a restaurant if states that their raw material have been hand picked or if it
has its own farm where they grow veggies by using the best seeds, will improve its operations
and also more customer will be attracted to the restaurant.
b. How to treat staff Ethically
Employees are the pillars of any business. Therefore, employees must be treated
ethically. It covers the following:
 Payment made to the staff should be fair.
 Best working conditions should be provided that does not negatively impact on their
physical or mental health.
 Rewards should be given if business has earned extra profits then average profits.
 Proper motivation should be provided to increase their efficiency.
 Suggestions to improve workplace should be taken rather than preaching them.
 Even the junior staff should be communicated effectively.
Using inhuman and unethical practices at business will not only portray bad reputation
but it will also harm business (Ethical principles in the workplace, 2017). It is the responsibility
of employees also to behave ethically with their employer. They should also provide their high
quality work to the employer.
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CONCLUSION
From the above report it has been concluded that running a business and starting a new
business is not an easy task. A person need to take care about many things like using ethical
behaviour with employees. The foremost thing while starting a business is the choice of nature of
business. The above report is based on the restaurant business and all the discussions have been
made in regarding to same.
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REFERENCES
Books and journal
Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
Kim, W. G., Lim, H. and Brymer, R. A., 2015. The effectiveness of managing social media on
hotel performance. International Journal of Hospitality Management. 44. pp.165-171.
Oriade, A. and Robinson, P., 2017. Challenges and strategies for rural business operations in
developed and developing economies. Rural Tourism and Enterprise: Management,
Marketing and Sustainability, pp.158.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Online
Advantages and disadvantages of owning a business, 2017. [Online] Available
through :<smallbusiness.chron.com/advantages-disadvantages-owning-own-company-
21125.html>.
Ethical principles in the workplace, 2017. [Online] Available through
:<http://smallbusiness.chron.com/ethical-principles-workplace-11116.html>.
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