Challenges Faced by an Entrepreneur on Opening a New Indian Restaurant in UK

CHALLENGES FACED BY AN
ENTREPRENEUR ON OPENING A NEW
INDIAN RESTAURANTS IN UK – A CASE
STUDY OF BUSINESS
PLAN AND MARKETING CHALLENGING

Acknowledgement
On the very outset of this dissertation, I would like to extend my sincere and heartfelt obligation
towards all the personage who have helped me in this endeavour. Without their active guidance,
help and cooperation, I would not have made headway in this project.
I would like to express my special thanks to my Principal who give me a golden opportunity to
do this wonderful project and then I would like to thank my teacher for their guidance and
encouragement to accomplish the dissertation in well manner.
I am extremely thankful and pay my gratitude to my mentor for their valuable guidance and
support for completion of this project. Lastly, I also acknowledge with a deep sense of reverence,
my gratitude towards my parents and members of my family, who has always supported me
morally as well as economically.
At last but not least, gratitude goes to all of my friends who directly and indirectly helped me to
complete this project.
Thanking you.

Executive summary
Tourism industry is one of the most fastest growing industry in UK and by introducing
new restaurant with innovative concept is also helpful for the business to attract wide range of
tourist towards it. In the same way, current report also highlights the new concept of restaurant
which helps the draw attention of many customers towards it. Such that the entire report is based
upon to introduce new Indian restaurant in UK and describe the key challenges faced by an
entrepreneur while implementing the same. Therefore, the current dissertation describe the
impact of elevation in labour cost and shortage of labour skills on profit in restaurant business
and impact that consciousness of customers has on profit of Indian restaurants. Further, study
also investigate impact of economic factors on Indian restaurants in UK. Moreover, this is
supported by using appropriate research methodologies and for this research, researcher uses
quantitative research methods that will help to determine the exact results so that it will assist to
attain the defined aim and objectives. Lastly, researcher provide effective ways through which an
entrepreneur may easily overcome the challenges faced while implementing the new Indian
restaurant in UK market.

TABLE OF CONTENTS
Acknowledgement...........................................................................................................................2
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................1
Background of research ..............................................................................................................1
Aim and objective.......................................................................................................................2
Rationale of study.......................................................................................................................2
Significances of research ............................................................................................................3
Structure of research ..................................................................................................................3
CHAPTER 2: Literature review.......................................................................................................5
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................13
CHAPTER 3: FINDINGS............................................................................................................24
CHAPTER 4: DISCUSSION.........................................................................................................48
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................50
REFERENCE.................................................................................................................................54

INTRODUCTION
Background of research
Tourism is the one of the fastest growing industry in UK and with increase in its growth
rate other industry also grow like hospitality and restaurant business. In past couple of years
restaurants number increase at fast rate in UK specially in London. Interesting fact is that in
London multiple nations people live that have different taste. Hence, there are multiple cuisine
medium and small size restaurants in capital of the UK. Chinese, Indian and Mexican cuisine are
common in the UK. In the present research work an attempt is made to find out factors that
create problem for an individual to open and operate Indian cuisine restaurant in the UK. Apart
from this, attempt is made to investigate factors that make marketing of restaurant very
challenging in the UK (Jogaratnam, 2017). It is observed that UK import most of vegetables. In
other words, it can be said that mentioned nation produce less quantity of vegetables and import
more to fulfil its needs. Thus, currency exchange rate heavily affects import of vegetables.
However, UK import most of vegetables from EU nations but there are few one that it imports
from other countries of the world. Important point to note is that in upcoming time period UK
will exit from EU and in that case import cost of vegetable will increase. Thus, maintaining cost
of purchase is one of big challenge for restaurant owner. Other main challenge is to retain
customers because now a day’s customers become more sensitive and aware and rationally make
decisions. They read reviews, on basis of past experience take decisions and heavily visit varied
FB pages and view advertisements (Ramanathan, Di and Ramanathan, 2016).
As per the secondary research, it is analysed that the Indian restaurant industry is worth
Rs 75000 crores and it is further growing at the rate of 7% annually. Further, introducing Indian
restaurant in UK will help the customers to understand each other tradition. Therefore, it is
clearly analysed that there is a rapidly increase in the restaurant industry at 16 percent which
further helps to increase the economy of the country as well. Moreover, the concept of
developing new Indian restaurant is quite good because the industry is growing and that is why,
investing in this will help to generate better income source for an entrepreneur as well.
Therefore, in order to invest in to opening a new restaurant will help the business to raise its
brand image and though there are different challenges which will be faced by an entrepreneur but
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offering good quality of food and services will help the business to attract wide range of
customers.
All these things heavily affect customers decisions and such kind of thing make
marketing very tough task for a restaurant owner. Present study aims to identify impact of these
factors on business. Apart from all these factors availability of skilled labour and its acquisition
cost is also high. As less number of people have speciality in Indian cuisine and cost charged by
them is also high. Thus, these factors overall have huge impact on restaurant profitability on
initial days of inception.
Aim and objective
Aim: To identify challenges associated with opening of Indian restaurant in UK.
Objectives
 To identify impact of elevation in labour cost and shortage of labour skills on profit in
restaurant business.
 To find out impact that consciousness of customers has on profit of Indian restaurants.
 To investigate impact of economic factors on Indian restaurants in UK. To recommend strategies which can be adopted to troubleshoot problem.
Research question
 What is the impact of elevation in labour cost and labour skills on profit in restaurant
business?
 What is the impact that consciousness of customers has on profit of Indian restaurants?
 What is the impact of economic factors on Indian restaurants in UK?
Rationale of study
While conducting any research study it is very important to ensure that it is addressing any
specific problem of the general public. It was necessary to conduct research work on restaurant
business because now a day’s number of restaurants are increasing in UK at rapid rate especially
Indian restaurants. Opening of restaurant require huge capital and efforts to establish its name
among people. To ensure that business will operate smoothly in its initial days it is necessary to
have information about factors that impede growth of Indian restaurants in the UK. After
identification of factors strategies can be formulated to solve the problem. In the present study
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same thing will be done so that people may find it easy to some extent to operate their restaurant
business in its initial days. Thus, present research study will assist people to solve problems that
faced while operating restaurant business. It can be said that existence of problems makes it
inevitable to conduct present research study.
Significances of research
There is huge significance of the present research study. As it is one of the well-known fact
that while opening and operating restaurant business one face a number of problems. It become
hard for one to fight with multiple problems in single time period. In the present research study
focus is on multiple factors that have impact on the restaurant business. On basis of analysis of
these factors at granular level recommendations will be prepared which can be used by those
operating restaurant businesses. This make current research study relevant for the audience and
lead to huge significance of research study for them.
In addition to this, through the research, researcher also determine different factor which
affect the system when developing new business in the Indian Market such that shortage of
labour, price fluctuation, economic factor, legal factor etc. therefore, there is a need to have a
proper planning while developing new restaurant so that it will not affect the overall system in
negative way.
Structure of research Introduction: In this section brief introduction of the present research work is given. This
section is divided in multiple sub sections like background, aims and objectives, research
questions, significance of research and rationale of study. Thus, it can be said that on
viewing this section one can easily estimate direction in which research work will be
gone. Literature review: In this section varied authors literature will be reviewed and whatever
they state will be discussed in detail. In respect to particular issue comments that are
made by the authors in support and against will be discussed in detail. Further, in this
section critically analysis is also done which helps to determine the views of different
authors so that the aim and objectives are attain in specific manner. In this way entire
section will be done.
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 Research methodology: It is another important section of the research study and under
this way in which research will be carried out is determined. There are number of areas
that will be covered in the report like research design and for that researcher opt
descriptive research design, research type i.e. quantitative and research philosophy in
which researcher opt Interpretivism research philosophy. Based on all these factors final
outline of research study is determining which need to be followed to conduct entire
research. In the research methodology section sources from which data will be gathered is
also specified in detail. Basically, in dissertation both primary and secondary research is
conducted and due to this reason both names are specified under data collection section in
dissertation research methodology section . Lastly, thematic data analysis is done in
which researcher presents graphs, pie charts to look its more presentable and
understandable. Results: In this section of the report entire results that are generated are arranged in a
systematic way. In case SPSS is used for data analysis purpose then in that case its output
is placed in the results section and if thematic analysis is done then in that case response
given by the respondents on Likert scale is shown in table or chart form. After placing
charts their interpretation is also done to find out current trends in respect to the research
area. Discussion: In this section of the report obtained results are discussed in detail. In this
part of the report results obtained through SPSS or thematic analysis are discussed along
with literature review results. Thus, it can be said that overall current results obtained are
compared with past literature to obtain overall overview of the research subject. Conclusion: In this section of the report overall conclusion is prepared based on entire
discussion of results obtained and literature review details. Thus, it can be said that it is
very important part of the research study because it indicates overall direction of the
research subject.
 Recommendation: Finally, on basis of conclusion and discussion section
recommendation section is prepared and under this on basis of identification of areas
where work need to be done solutions are proposed by following which problem can be
solved.
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