Authentic Indian Restaurants in Sudbury: Business Research Project

This business research project explores the setup of authentic Indian restaurants in Sudbury. It analyzes the internal and external environment, collects data sets, and analyzes the market before setting up the business. The project includes a problem definition, SWOT analysis, data collection and analysis, and market analysis.

INDIAN RESTAURANTS IN SUDBURY
Authentic Indian restaurants in Sudbury
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INDIAN RESTAURANTS IN SUDBURY
Executive Summary
In this business research project, the setup of Indian restaurants in Sudbury will be discussed
in details. For that, the problems related to the business should be properly explored and the
internal and the external environment should be properly analysed before setting up the
business. This will include the strengths, weaknesses, opportunities and threats of the
business. Also data sets will be collected and the market will be properly analyzed before
setting the business.
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INDIAN RESTAURANTS IN SUDBURY
Table of Contents
Executive Summary...................................................................................................................2
Section 1- The Problem Definition............................................................................................4
Section 2- SWOT analysis.........................................................................................................4
Section 3 – Collection of Data Sets............................................................................................6
Data analysis..........................................................................................................................6
Analysis the market................................................................................................................8
Reference List..........................................................................................................................10
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INDIAN RESTAURANTS IN SUDBURY
Section 1- The Problem Definition
In this business research project, the opening of a new Indian restaurant business in Sudbury
will be explored and the problems involving this business will be explored. The problem is
due to the fast changing eating and ordering food habits of the customers as the businesses
are going online. As the online market is gradually increasing, the customers get their
requirements from a large variety of options and so they normally choose to buy online rather
than going to the restaurants. Thus, the problems involving the business should be properly
explored before opening the business in the market of Sudbury. For that the business should
make new innovations such as providing the facilities of delivery option and delivering the
order to the customers in minimum amount of time. The main purpose of this research project
is to open a new Indian restaurants in the market of Sudbury by attracting the customers so
that it can provide the necessary requirements of the customers in less amount of time as the
customer nowadays want fast services.
Section 2- SWOT analysis
Strengths of convenience stores
1. Availability of essential raw material- Raw material i.e. raw food products for making
Indian food are available easily in the market of Sudbury. This makes the cost of
transportation very lower as raw material is not required to be imported.
2. Long term benefits- As stated by Mathers et al., (2018) the investments in the restaurant
business can be considered beneficial as the working class people and families visits
restaurants frequently and they don’t prefer the online services for that.
3. High profitability-The gross margins made by the Restaurants are higher and the costs
required for opening a restaurant is comparatively low in nature.
4. Low investment- Usually, the investments that is required for opening a restaurant is $
50,000 to $ 100,000. The barriers to entry in case of restaurants are comparatively moderate
in nature.
5. Location of the store- The owner should set up the restaurant in a location that is highly
visible and accessible by the targeted customers.
Weaknesses of convenience stores –
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INDIAN RESTAURANTS IN SUDBURY
1. Competition from online businesses- In the current scenario, the Indian restaurants in
Sudbury are facing issues related to competition from other Indian restaurants and mainly
from the online services that is grasping the customers.
2. Cost of daily operation-As stated by Donovan et al., (2016), the costs of operation of
restaurants are comparatively high and issues with spoilage are the main weak points of this
business.
3. Limited number of customers- Target customers for this Indian restaurant would be limited
as Indians can be made regular customers in this scenario. Other people can also be targeted
but they may or may not visit the restaurant on regular basis.
4. Rental cost- Popular location would require higher rental cost for business.
5. Development of brand name- Development of brand name will require some time and
business might run out of money due to indirect costs.
Opportunities of convenience stores –
1. Large target customers- number of Indians living in Sudbury is sufficient to make a
substantial target market.
2. Better quality will result in better results- In Sudbury, the restaurants can make
improvements in revenue by increasing the quality of items for their customers.
3. Addition services- As stated by Sanders-Jackson et al., (2015), business can introduce
prepared lunches and breakfast for their busy customers and this can improve the sales by a
lot. The business should focus on providing the customers with freshly prepared foods which
the online services are unable to provide.
4. Easy availability of bank loans (Finance) - The finance of this business will be covered by
the banks as the revenue made by these businesses is unpredictable in nature and the asset
base is largely tangible in nature.
5. Market development- There are various other Indian restaurants in Sudbury that are
operating effectively even with high competition.
Threat of convenience stores
1. Developed and large stores- The main issue that is faced by convenience stores is
competition from other similar types of restaurants. The competitor Indian restaurants is
Sudbury are Tandoori tastes, Taj bistro and Gloria’s restaurant.
2. Storage of perishable products- The other threats can be the spoilage of food items due to
the mishandling of employees.
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INDIAN RESTAURANTS IN SUDBURY
3. Changes in taxation policies for small businesses- As stated by Shadel et al., (2015) the
other issues can be the legislative changes and this can hamper the smooth functioning of
convenience stores.
4. Online shopping trend- The other type of threat is from the online stores that are taking
over the markets.
5. Business model changes in other restaurants- Some of the other restaurants are changing
their model to include Indian menu which will be a treat to convenience stores.
Section 3 – Collection of Data Sets
Data analysis
This includes the population of Sudbury, age characteristics of the population, household
characteristics, marital status, family characteristics, education, labour force status, language,
aboriginal population, citizenship, immigrants, ethnic origin, religion and household income
of the people of Sudbury.
Statista data sets
According to this, the GDP of Sudbury improved drastically from the year of 2013 and is
expected to rise in 2021. The GDP in the year of 2013 was 8.25 billion Canadian dollars and
in 2018 the GDP of Sudbury is 8.23 Canadian dollars and it is predicted that in the year of
2012 it can reach up to 8.47 Canadian dollars.
Ibis World
As per the market size and industry statistics, Sudbury has over 3289 businesses which makes
a revenue of $ 6 billion dollars, the annual growth rate from the year 2013- 2018 is 5.0 %.
The employment is 20,523.
Regional business centre
Population
Male- 78,780
Female – 82, 290
Total – 160,770
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Household characteristics
Private dwellings – 72,736
Person by household size
1 Person – 19,195
2 persons – 24,730
3 persons – 10,765
4 persons – 9,335
5 persons – 2,795
Relevance of data- This data is considered as relevant in this scenario because the Indian
restaurant is required to be opened in Sudbury and it is essential that geographic and
economical condition of the country is evaluated before making any major investment
decision. The inflations rates and other economic factors will help in defining the investment
and expenses that will be required in future. It is essential that cost of projected expenses is
considered according to the concept of time value of money (Cuddy & Moazzami, 2017).
This data is aligning with the requirements because this data is related to the population of
Sudbury and the location selected for opening the new Indian restaurant is also Sudbury.
Therefore this data will help in identification of target population and also making strategies
to attract these target population.
The confirmation in relation to quality of data is confirmed by selecting the data from best
available sources on internet. Only reliable sources are selected while collection of the data
such as geographical data collected by government in census.
Secondary data would be the most appropriate source of data in this scenario because it
would be not be financially and operationally possible for the management of Indian
restaurant to conduct a new census for the entire population of Sudbury. It would require a lot
of time and efforts, therefore it is better that target market is selected according to the census
data collected by government.
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INDIAN RESTAURANTS IN SUDBURY
To check the completeness of this data our group has compared this data with other sources
of data so conduct a variance analysis. If same data is available in all the selected reliable
sources then only such data is selected by the group.
Analysis the market
Target market
One the basis of total data collected in the above stage can be very helpful in selecting the
total target market in establishment of authentic Indian restaurants. Total population of
Sudbury is 160770 people. It can be estimated that total number of Indian population in this
religion is 16077 people. Therefore total target market is 16077 people for the business or
authentic Indian restaurant. Management of the company should try to at least acquire around
35% of total market in the first year of operation i.e. 5626 customers.
Competitive landscape
There are other Authentic Indian restaurants in the area of Sudbury that will create direct
competition. These restaurant are already established in market and they are popular among
the customers especially the Indian population. Other competitors are the regular restaurants
that are also providing Indian food in their restaurants (Kramer et.al, 2018). Other authentic
restaurants that will be in direct competition with the proposed restaurant are Tandoori tastes,
Taj bistro and Gloria’s restaurant.
Competitive advantage
1. Availability of authentic Indian workers for preparing and serving of food which will give
authentic edge to the company.
2. Quality of food would be main focus of the company.
3. As proposed business is being established after other Indian restaurants then management
can learn from strengths and weaknesses from other businesses.
Product life cycle
There will be four stages of Product life cycle for this restaurant business-
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INDIAN RESTAURANTS IN SUDBURY
1. Introduction- In this stage business is introduced in market and currently proposed business
in this stage of product life cycle. Major costs that is involved in this stage is marketing and
advertisement expenses. This expense is used for the purpose of boosting the sales of the
company during initial product launch.
2. Growth- In this stage the number of customers and revenue increases rapidly and this stage
is most profitable for an organisation. The rate of growth in this stage is dependent on the
innovative products and level of competition in the market. More customers will attracted
toward product and services offered by the company if they are innovative and there is lower
competition.
3. Maturity- In this stage business reaches to its full capacity and number of customers and
revenue is constant over the period of time. This the stage in which majority of business
organisations including restaurant business operates in. the level of sales in this stage will be
constant but profits will be substantial in this stage because investment cost and marketing
cost required in this stage is minimum. To maintain business operations in this stage, business
organisation are required to change their products and services according to changes in
environment otherwise they will go toward decline stage.
4. Decline- In this stage the business goes down in terms of revenue and customers due to
lack of innovative changes in business model (Shadel et.al, 2015). Generally business
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INDIAN RESTAURANTS IN SUDBURY
organisations choose to close down business in this stage as they are incurring losses and it is
financially better to close down the business and invest resources in new business.
Total number of customers required to serve the business are as follows 5626 customers. It is
essential that this target market should increase at the rate of 20% each financial year.
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Reference List
Cuddy, J., & Moazzami, B. (2017). Northern Projections Human Capital Series-Greater
Sudbury. Northern Policy Institute.
Donovan, S., Ballesteros-Lopez, R., Root, L., Seidner, S., McCarty, C. and Snyder, E.H.,
2016. Case Studies: Urban Food Security Research with a Focus on Methodology. In Sowing
Seeds in the City (pp. 215-245). Springer, Dordrecht.
Kramer, D. M., Haynes, E., McMillan, K., Lightfoot, N., & Holness, D. L. (2018).
Dimensions of Community Change: How the Community of Sudbury Responded to
Industrial Exposures and Cleaned up its Environment. Escaping the Vines of the Ivory Tower:
Reflections of an Engaged Professor Page 9, 81.Mathers, A., Schwartz, R., O’Connor, S.,
Fung, M. and Diemert, L., 2018. Marketing IQOS in a dark market. Tobacco control,
pp.tobaccocontrol-2017.
Sanders-Jackson, A., Parikh, N.M., Schleicher, N.C., Fortmann, S.P. and Henriksen, L.,
2015. Convenience store visits by US adolescents: rationale for healthier retail
environments. Health & place, 34, pp.63-66.
Shadel, W. G., Martino, S. C., Setodji, C. M., Scharf, D. M., Kusuke, D., Sicker, A., & Gong,
M. (2015). Hiding the tobacco power wall reduces cigarette smoking risk in adolescents:
using an experimental convenience store to assess tobacco regulatory options at retail point-
of-sale. Tobacco control, tobaccocontrol-2015.
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