Consumer Perceptions of Sustainable Practices

This assignment explores consumers' beliefs and attitudes towards sustainable practices in restaurants. It asks participants to indicate their level of agreement with statements about the importance of sustainable practices, such as reducing energy usage and waste, using biodegradable or recycled products, and serving locally grown food. The assignment also delves into consumers' perceptions of dining at sustainable restaurants, vegan restaurants, and paying extra for sustainable dining experiences.

Running head: INDUSTRY RESEARCH PROJECT
Profitability and Market Feasibility of a New Vegan and Sustainable Restaurant: A Case Study
of Fresh Farm
Name of the Student:
Name of the University:
Author’s Note:

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Executive summary
The idea of including green for the restaurants is compelling. Eating in restaurants has increased
over the years that have resulted in declination of natural environment. The consumers have
moderate or less knowledge about the concept of vegan and sustainable restaurants but prefer the
use of organic food materials in restaurants. The Fresh Farm is a vegan restaurant that aims
towards using sustainable practices for serving food to the customers. The Fresh Farm is a new
restaurant that is opening in the Darlinghurst region of New South Wales. The sustainable
practice and innovation that the restaurant plans to use products that were produced from vertical
farming. The vegan concept is extremely new to the hospitality industry thereby, making the new
business venture for The Fresh Farm unpredictable. Both survey and interview methods have
been used by the researcher by using simple probability sampling technique and purposive
sampling technique. From the above chapters, it can be concluded that the market feasibility and
profitability of the vegan restaurant, The Fresh Farm is moderate. The potential gap that has been
identified for this research highlights that the concept of vegan and vertical farming is certainly
unexplored and new to the customers. It has been seen that the two restaurant of Darlinghurst
region have moderate frequency of customers aged 25-30 years, as they visit the restaurant for
dining twice a week.

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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.0 Overview...........................................................................................................................4
1.1 Background of the organization.............................................................................................4
1.2 Research problem..................................................................................................................5
1.3 Research aims........................................................................................................................6
1.4 Research questions.................................................................................................................6
1.5 Structure of the research........................................................................................................6
Chapter 2: Literature Review...........................................................................................................9
2.0 Introduction............................................................................................................................9
2.1 Sustainable Development Concepts and its practices in the Australian restaurant industry. 9
2.2 Market Research and Food trends.......................................................................................11
2.3 Vertical Farming..................................................................................................................13
2.4 Consumer Attitudes and Behaviour.....................................................................................15
2.5 Summary..............................................................................................................................17
Chapter 3: Research Methodology................................................................................................18
3.0 Research design...................................................................................................................18
3.1 Sampling..............................................................................................................................19
3.2 Data analysis........................................................................................................................20

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3.3 Ethical considerations..........................................................................................................21
Chapter 4: Findings........................................................................................................................23
4.0 Analysis...............................................................................................................................23
4.1 Marketing mix (7P’s)...........................................................................................................31
4.2 Competitor analysis.............................................................................................................33
4.3 SWOT analysis....................................................................................................................34
4.4 Financial feasibility.............................................................................................................35
4.5 Research limitations.............................................................................................................38
Chapter 5: Conclusion...................................................................................................................39
5.0 Conclusion...........................................................................................................................39
5.1 Linking with objectives.......................................................................................................39
5.2 Recommendations................................................................................................................40
References......................................................................................................................................42
Appendices....................................................................................................................................47
Appendix 1.................................................................................................................................47
Survey questionnaire.................................................................................................................47
Appendix 2.................................................................................................................................50
Interview transcription...............................................................................................................50

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Chapter 1: Introduction
1.0 Overview
The behavior and the attitudes of the customers towards environmentally sustainable
practices in restaurant are still unexplored in spite of growing green trend in the Australia.
Considering the increasing vegan lifestyle of the customers, the need for sustainable restaurants
has also increased (Hall & Gossling, 2013). The idea of including green for the restaurants is
compelling. Eating in restaurants has increased over the years that have resulted in declination of
natural environment. The consumers have moderate or less knowledge about the concept of
vegan and sustainable restaurants but prefer the use of organic food materials in restaurants. It
has been seen that people who are not even vegetarian prefer to try out food in the restaurants
that are serving food materials (Sirakaya-Turk, Baloglu & Mercado, 2014).
As mentioned by Moskwa, Higgins-Desbiolles and Gifford (2015), the use of new
technology and innovations are used for cultivating the raw materials that are used by the
restaurant that is factor is highly appreciated by the customers. However, on the contrary, limited
capital and financial resources makes it difficult for the start-up restaurants to look for profitable
investments. As a result, lack of support in terms of investment can be mitigated by having a
clear concept of the sustainable restaurant business before starting.
1.1 Background of the organization
The Fresh Farm is a vegan restaurant that aims towards using sustainable practices for
serving food to the customers. The Fresh Farm is a new restaurant that is opening in the
Darlinghurst region of New South Wales. The sustainable practice and innovation that the
restaurant plans to use products that were produced from vertical farming. The Fresh Farm will

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be a casual restaurant with a seating capacity of 30 people. The vegan concept is extremely new
to the hospitality industry thereby, making the new business venture for The Fresh Farm
unpredictable.
1.2 Research problem
Starting a new business is always a challenge because it involves potential risks in terms
of market feasibility and profitability. The risks are potentially higher if the idea of the business
venture is innovative and less popular among the target population. As mentioned by Wang et
al., (2013), new business ideas takes time to establish in the market, as it has limited acclamation
and acceptance. Even if the new business idea is beneficial for the future, it takes time establish
and flourish in the selected market. This is because economic and market stability is the main
requirement of a new start-up business. According to Lita et al., (2014), the people associated
with the new business idea encounter problems in selling their idea to others. As a result, the
business organizations face problem in gathering funding and investment for the new start-up. If
the financial institutions and the investors are not completely convinced with new business idea
gathering funds is difficult for the new start-up business. Thus, it can be said that limited amount
of capital is an issue, as the new start-up business organizations needs to look for profitable
investments and tools. This is essential for supporting investment decision for having a clear
business concept before staring the business (Iaquinto, 2014).
Another problem for The Fresh Farm is the concept the restaurant plans to incorporate for
developing the sustainable restaurant. The Fresh Farm plans to use vertical farming and vegan
concept that are new to the hospitality industry (Chen, Cheng & Hsu, 2015). Thus, recognition,
appreciation and establishment of this new sustainable idea are an issue.

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1.3 Research aims
The research objectives are:
 To investigate the market feasibility and profitability of opening a sustainable vegan
restaurant, The Fresh Farm, in Darlinghurst region.
 To explore vegan and vertical faming knowledge and acceptance (interview focus group)
 To measure the importance of sustainable practices, social, environmental and economic,
in casual restaurants from consumers’ perspective. (Survey part 1)
 To access and describe consumer attitudes and behaviors towards sustainable concepts in
restaurant to access market feasibility. (Survey part 2)
1.4 Research questions
The research questions are:
 RQ1: What is the market feasibility and profitability of opening The Fresh Farm, a vegan
sustainable restaurant in Darlinghurst region?
 RQ2: What is the importance of sustainable practices for consumers of restaurants in
Darlinghurst?
 RQ3: What are consumer attitudes and behaviors towards sustainable concept in
restaurants?
1.5 Structure of the research
This research report is divided into five different chapters. Introduction, literature review,
research methodology, findings and conclusion comprises of the five chapters of the research
report.
Chapter 1: Introduction

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This chapter lays the overall foundation of the research report, as the chapter provides a
brief overview of the background of the research report along with the background of the
organization. Based on the brief overview and the research problem, the research aim and
questions are formulated in the chapter.
Chapter 2: Literature review
In this chapter, the researcher discusses the independent and dependent variables of the
research report. The researcher mentions the various factors in detail along with critically
analyzing the factors and the concepts. Through this chapter, the researcher provides in-depth
knowledge and understanding about the topic to the readers.
Chapter 3: Methodology
Different methodological tools are used for commencing with the research work. This
chapter consists of the different methodological tools that can be used along with their definition.
Additionally, the researcher selects particular methodological tools for this research and justifies
the selection.
Chapter 4: Data analysis
This chapter analyzes the data that is collected by the researcher to fulfill the research
aim and objectives. The data is analyzed by using specific tools in accordance with the data
collection methods.
Chapter 5: Conclusion

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The last chapter deduces the conclusion of the entire research report by identifying the
gap, reason for the gap from the view of the respondents and providing suitable solutions to the
gap.

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Chapter 2: Literature Review
2.0 Introduction
Literature review is the collection of previous scholarly information regarding a
particular topic under consideration. This literature review will be dealing with the vegan food
business and business scope of sustainable restaurants in Australian market. Moreover, the
literature review will assess the sustainable development concepts and its practice in Australian
restaurant industry. The literature review will also highlight on the market research and major
food trends of Australian people. Apart from that, the concept and importance of vertical farming
will also be explained in this literature review. The literature review will also be associated with
the consumer attitude and behaviour of the customers in Australia for organic foods.
2.1 Sustainable Development Concepts and its practices in the Australian restaurant
industry
Sustainable restaurants give extreme focus to ensure that there is minimal waste
production and preparation of healthy organic foods. Such restaurants also practice greenery
initiatives through the ways of green lighting, energy conservation, architectural design and
many more. According to Chen and Barrows (2015), sustainable restaurants are aimed at
increasing water saving and energy efficiency and decreasing food wastes through the process of
recycling. The organizations are also engaged in offering unshaped foods and vegetables. On the
other hand, Ahn and Seo (2015) opined that most of the menus of sustainable restaurants are
mostly consisted of local and seasonal foods that help in minimizing the transportation cost and
emission of carbon dioxide. The menus are mostly usually served in small dishes for
counteracting with the food wastes. The workforces of sustainable restaurants are mainly

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employed from the local region and the workforces get fair treatment. Sustainable practice of
restaurant also involves the practice of sourcing food ingredients from the local suppliers and
giving them fair payment.
With the concept of sustainable practice, the green restaurants are high focused on
reducing the threats that can harm the environment. Dhanasekaran et al. (2017) opined that
sustainable restaurants are highly involved in responsible usage water through the possible ways
of reusing the grey water. It actually helps in saving the limited water of the environment.
Furthermore, Namkung and Jang (2017) stated that the utilization of renewable energy has
become the central aspect sustainable restaurant concept. Utilization of such energy sources is
actually intended towards reducing the rate of energy sources. Moreover, the usage of renewable
energy source also contributes in reducing carbon emission rate significantly. In this way,
sustainable restaurants are not only concerned with their economic benefits but also concerned
with social desirable foods and restaurant service. The motto of these restaurants is to offer
vegan and organic foods for the health wellbeing and healthy life of the people.
Vegetarian dining has become one of the strongest trends in Australian green restaurants
in the past few years. There is an increasing trend of sustainable practice among the restaurants
of Australia. The country has become highly focused on vertical farming, where new farming
method with growing foodstuff in layers having vertically stacked. In vertical farming, the
production of corps may or not may not use soils having the alternative form of hydroponics.
Papargyropoulou et al. (2016) opined that vertical farming in Australia is mostly done in areas,
where arable land is not sufficient or the cities are highly populated. It has become the advantage
for the green restaurants of Australia to source safe and organic food ingredients. The green
restaurants of Australia can easily embrace vertical farming for cutting cost on buying vegan

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foods. Kim, Yoon and Choi (2016) stated that more than 52% restaurants in Australia have
started to practice sustainable practice for long term business sustainability. 42% casual dining
restaurants have expected choice of organic foods to increase in future. The top most sustainable
restaurants in Australia are like Mondo Organics, Saffron, Billy Kwong, Yong Green Food and
others. Most of the green restaurants are concentrated mostly in Sydney city of Australia (Tatàno
et al. 2017).
The consumers of vegan food products have to be highly careful in checking credibility
of the organic foods during purchasing any organic food dishes. The start-up sustainable
restaurants must have to go through several verification processes for ensuring their credibility to
the consumers. One of the most important verification processes for the sustainable restaurants is
verification through green hotels. Moreover, Gao, Mattila and Lee (2016) opined that the
verification is usually done through being registered with the union of green hotels established in
Darlinghurst region. The certification from the union of green hotels facilitates significantly in
notifying the consumers regarding the authenticity of the food products. Moreover, the certificate
from the union of green hotels acts as the credibility for the food products of the sustainable
restaurants. It can be quite challenging for the sustainable restaurants to source the food supplies
before the restaurants can initiate harvesting from their vertical farms.
2.2 Market Research and Food trends
Over the years, several market researchers have conducted extensive market researches
on the food trends of Australians for assessing the viability of sustainable restaurants. Anzman-
Frasca et al. (2015) pointed out that modern food trend reports are demonstrating a promising
future for the sustainable restaurants in Australia. More than 85% of Australians are highly
inclined towards purchasing and consuming healthy foods. This report has also highlighted that

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the Australians are even willing to spend $4515 for following healthy and special diets (Minkoff-
Zern 2017). The exposure of information regarding healthy diets through social media has
changed the food preferences of the people. Moreover, Line, Hanks and Zhang (2016) stated that
most of the Australian spend $89 their home deliveries and $377 for purchasing groceries in each
month. Such trend is demonstrating the scope of booming market for the sustainable restaurants
in Australia.
Sustainable restaurants are likely to get success in the restaurant industry with the
increasing trends of the customers towards consuming healthy and organic foods. DeMicco et al.
(2014) pointed out that increasing cancer rate has acted as a persuasive factor for encouraging
people to consume organic foods for maintaining a healthy life. Furthermore, the consumers of
organic foods are not much price sensitive as compared with the cheaply processed foods. The
customers can gain holistic health benefits that lead to their healthy bodies. The organic foods
are even good to taste having high level of food security as compared with other processed foods
containing chemical harmful for human bodies. The credibility of the organic food is
increasingly attracting more customers each day. Such trends ensure robust growth of increasing
numbers of sustainable restaurants in Australia (Iurkevych et al. 2014). Sustainable restaurants
are being highly focused on selling organic foods that are actually produced through vertical
farming. Vertical farming also contributes in the sustainable development of the restaurants
through supplying huge amount of organic food ingredients.
Vertical farming is a unique and new process of harvesting and growing organic foods in
vertical stacked. This method is usually applicable in the places, where arable lands are quite
insufficient to produce corps (Newson et al. 2015). The farming method can also be application
in such situation, where the owners of the farms do not want to be involved in the tedious

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process of corps product with traditional farming process. Moskwa, Higgins-Desbiolles and
Gifford (2015) mentioned that traditional food production system has always been highly costly
and labour intensive. Furthermore, the use of environment-polluting machineries and harmful
chemicals of traditional farming method have always worsened the environment. The volume of
production can also be hampered with the factors like prevailing water availability and water
availability. In this context, vertical farming is the complete revolution of farming method, which
is aimed at utilizing no land other than aerial space in densely populated areas. As per market
research, growth in population is actually leading to shrinking arable lands.
According to Tibon (2015), increasing demands for the consumption of unprocessed bulk
products have led to innovation of vertical farming. The environmental conservation campaigns
have resulted in sustainability restaurants aiming at transforming the food production. As per the
triple bottom line of sustainable practices, the sustainable restaurants are using environmental
friendly product equipments. Such restaurants are actually aimed at cutting cost and preserving
the environment. In this way, these types of restaurants have built a larger part of eco-system
through preventing the emission of poisonous substances into the environment. They established
a larger transformation of food production, conservation of resources and utilization of the local
resources.
2.3 Vertical Farming
Vertical farming is the unique and new farming method that involves growing foodstuff
in the layers having vertically stacked. Having alternative process of hydroponics, this farming
method may or may not use soil for farming corps. Such farming method is mostly applicable in
such areas, where the arable lands are not quite sufficient and the lands are highly polluted
preventing effective farming of corps. Vertical farming is actually aimed at producing safe

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organic foods in the cities of Australia. The sustainable can also source sustainable and organic
vegan foods at low cost through the vertical farming method. In this way, the restaurants can also
be self-reliant in source organic foods for offering organic food items to the customers. Pinard et
al. (2014) pointed out that the new vertical farming method can save up to 70% water as
compared with tradition farming method in producing corps. It reduces the amount of farmland
needed, decreases deforestation and facilitates the urban areas to be self-sufficient in producing
organic food corps. On the other hand, Hu et al. (2014) stated that vertical farming helps the
sustainable restaurants to source the sustainable food ingredients at lowest price from the local
sources.
The consumers for vegan foods are growing rapidly in Australia. Such growing
consumers have become the brilliant opportunity for the sustainable restaurants to get high level
of business growth in Australia. As per the market research, the consumers for organic food
products are increasing rapidly leading to high level of business boom and wide opportunity for
business investment. According to Wang (2016), consumers of vegan foods are quite aware of
the cheap price of the vegan dishes. Hence, the sustainable restaurants can easily sell their
organic foods to the customers without any resistance. Such restaurants are having a segment of
niche loyal customers. On the other hand, Sahakian and Wilhite (2014) stated that sustainable
restaurants always use cheap prices for available organic food products for attracting the
customers. The organizations can produce their food corps with vertical farming without the
needs of lands and machineries. Hence, these restaurants can easily source their required organic
food ingredients for producing organic food dishes. Hence, the restaurants can easily source
organic food ingredients at cheaper prices.

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There is lack of existing success story for the large scale vertical farming. This has led to
numerous negative criticisms for the competing vertical farms. The competitor technology of
vertical farming method has claimed that the vertical farming process may not be highly efficient
in the situation, where demand of foods is quite high but the production of foods is quite low.
Vertical farming has a very long history of investing in investing in quite expensive
agricultural products. Hence, such process is feasible only for some rich persons, who have the
ability to afford such expensive price for organic foods. In this way, vertical farming can be
associated with both opportunities and risks, which can ultimately hamper the success level of
the sustainable restaurant industry (Minkoff-Zern 2017). Moreover, the opportunities associated
with the vertical farming can lead to business growth of the sustainable restaurants, but the risk
associated with vertical farming can lead to business risk for such restaurants.
2.4 Consumer Attitudes and Behaviour
With the rise of lifestyle diseases and manufactured foods, the people are being highly
inclined towards avoiding those issues. Most of the people are being inclined to avoid those
issues through having healthy and holistic habits through feeding organic foods and vegan foods.
Vegan feeding has proved to be the top three nutritious trends in Australia. Australians are
mostly inclined towards ditching processed foods and adopting healthy habits like began feeding.
American consumers display higher involvement in socially and environmentally
sustainable practices. On the other hand, Namkung and Jang (2017) opined that Indian customers
are highly inclined and involved in health related sustainable practices. There are contradictory
opinions of the scholars regarding the willingness of the customers to pay premium prices for the
organic food products. As per the study report, American customers are more willing to pay for

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the organic foods as compared with the Indian customers. On the other hand, Kim, Yoon and
Choi (2016) pointed out that Australian customers are not even price sensitive for purchasing the
organic foods. Moreover, such customers are even willing to pay high price for the organic foods
as compared with the processed foods. Australia are being true green gradually, who purchase
green foods on regular basis. However, the most committed customers always do not purchase
green products. Such situation arises with lack of organic foods to cover all categories of
purchasing needs of the customers. 70% Australian are more likely to purchase a food product
labelled as organic as compared with the regularly labelled products.
Feeding vegan foods is not just a lifestyle, but rather this practice highly contributes in
the healthy living habit of the people. As per the research conducted by Line, Hanks and Zhang
(2016), the people having healthy habit of living are more likely to purchase vegan or organic
foods. Such people are highly willing to purchase organic foods for living a healthy and happy
lifestyle. The values of such people associated with their healthy living will encourage them to
purchase organic foods on regular basis. Hence, the vegan or organic food producing companies
will get ample opportunities in Australian market for establishing their organic food business and
get high level of business growth. For such reasons, most of the start-up organic foods producing
companies do not outlook the business venturing of organic foods just as the market opportunity,
but they view it as a major issue in the society to be resolved through the production and offering
of organic foods (Ahn and Seo 2015). Moreover, the issue of vegan diet of the Australian people
must be resolved through the production of organic and vegan foods. The consumers having high
value for organic or vegan foods are also willing to pay premium prices for having such foods.

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2.5 Summary
While concluding the study, it can be said that Australian consumers are being highly
inclined towards purchasing organic foods. Moreover, increasing health consciousness and
healthy lifestyle of the people are encouraging them towards purchasing organic foods. On the
other hand, vegetarian dining has become one of the strongest trends of Australian dining. 52%
restaurants have actually started to practice sustainable restaurant service for having long term
business sustainability. However, the sustainable business restaurants have to go through strict
verification process for proving the credibility of the organic foods to the customers. The new
vertical farming facilitates in producing organic foods, which makes the organic food supply of
sustainable restaurants easy and cost effective. In this way, the start-up sustainable restaurants
can get huge business opportunities through offering organic foods to the customers.

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Chapter 3: Research Methodology
3.0 Research design
The use of appropriate research design is crucial, as this determines the success of the
overall industry research project. As commented by Neuman (2013), mixed method consists of
the characteristics of both qualitative and quantitative properties. The use of mixed of mixed
method allows the researchers to develop an in-depth and detailed knowledge regarding the
topic. However, as argued by Taylor, Bogdan, DeVault (2015), due to the dual characteristics of
mixed method, it data analysis is generally complex and difficult to interpret.
The industry research project highlights investigating the market feasibility and
profitability of opening a sustainable vegan restaurant, The Fresh Farm in Darlinghurst, New
South Wales. Thus, the use of mixed method has provided an opportunity for the researcher to
explore and describe the behavior and attitudes of the consumers towards sustainable restaurant
practices in Darlinghurst region.
The use of mixed method highlights the use of both survey and focus group interview. In
the case of survey, the researcher has used cross-sectional quantitative research method that
contained option in the form of Likert scale. The survey developed for the industry research
project had three parts that had different points to emphasize on for obtaining better and
appropriate results. The first part of the survey contained demographic questions and questions
related to the dinning frequency of the diners. The second part of the questionnaire emphasized
on asking the consumers the significance of sustainable practices. An additional two questions
has been developed in this section of the survey that highlighted the scope of sustainable
development in the hospitality industry. The third part of the survey explored the belief and

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attitude of the customers towards sustainable restaurants. The researcher has included three
questions in terms of the beliefs of the consumer towards sustainable restaurants and one
question about the attitude of the consumers in respect to the environmental protection practices
by the restaurants.
After the survey, the industry research project conducts qualitative focus group interview.
5 potential customers of the survey was selected as the sample of the qualitative focus group
interview that help in answering the research question 1, that is, exploring vegan and vertical
farming knowledge and acceptance. The third phase highlights the use of secondary resources for
gathering relevant data and information in terms of costs of sustainable restaurants in assisting to
answer the profitability questions.
3.1 Sampling
The different types of sampling technique are random probability and non-probability
sampling techniques. The random probability sampling technique is further divided in to five
categories that include simple random sampling, stratified sampling, cluster sampling and
systematic sampling.
As mentioned by Acharya et al., (2013), the concept of simple random probability
sampling highlights the equal chances or probability of each member in a particular population to
be selected. In this case, the researcher selects a large population and selects particular number of
the samples at the end thereby, providing equal chances or probabilities for each members to be
selected. On the other hand, the name stratified sampling itself highlights layers and strata while
sampling. In the case of stratified sampling, the researcher divides the entire population in
different strata or sub groups. After dividing, the researcher selects the samples randomly but

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uniformly from the different strata that has been formed (Brewer & Hanif, 2013). However, the
only difference in the case of cluster sampling is that the researcher divides the population in
clusters or separate groups instead of layers (Levy & Lemeshow, 2013). Thus, the researcher
conducts the analysis on data that is gathered from clusters. The concept of systematic sampling
highlights the selection of the samples from a larger population. In the case of systematic
sampling technique the starting point is random but has a fixed periodic interval that is defined as
sampling interval (Chen, Wen & Cheng, 2013).
The non-probability sampling technique is defined as the method of sampling that do not
provide equal chances or probabilities for all the members of the entire population to be selected
or being a part of the data collection process (Uprichard, 2013). Purposive sampling is a type of
non-probability sampling technique that highlights the selection of the samples based on the
characteristics of a population along with considering the objective of the study or the research.
Thus, purposive sampling is known to be selective, subjective and judgmental (Etikan, Musa &
Alkassim, 2016).
For this industry research report, purposive non-probability sampling technique has been
used for both the phases by the researcher. During phase 1, a number of restaurants were asked
to participate in the data collection process out of which only two restaurants agreed to
participate. The reason for selecting this type of restaurant is because the restaurant is visited by
diverse range of customers.
3.2 Data analysis
The researcher has used primary data collection method for which both quantitative and
qualitative data analysis techniques has been used. Primary quantitative data analysis is used by

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the researcher for answering research question 1 that highlights analyzing the data in terms of the
beliefs and attitudes of the consumers towards sustainable restaurants that will be summarized in
a table using percentages, and graphs charts (Silverman, 2018). Research question 2 aim towards
identifying the various sustainable practices that is significant for the customers in the casual
restaurant. The survey results will be summarized in a table using percentages, and graphs charts.
The third question aim towards investigating the significant differences in attitudes and beliefs of
the customers towards sustainable restaurants. The results will be summarized in a table using
percentages, and graphs charts (Gelman et al., 2013).
In the data analysis, SWOT analysis will be conducted that helped in analyzing the
strength, weakness, opportunity and threat of The Fresh Farm along with conducting a
competitor analysis. Competitor analysis will help in analyzing the existing competition in the
Darlinghurst region for the new start-up business (Bazeley & Jackson, 2013).
3.3 Ethical considerations
According to the data collection methods that have been used for this industry research
project, the ethical considerations are furnished below.
 Data confidentiality is one of the main ethics while researching. The researcher needs to
be careful and ensure that the data collected and the identity of the participants are kept
confidential and are not disclosed without their consent.
 Forcing the participants to be a part of the data collection process is also prohibited.
Signing the consent form before the data collection process highlights willing
participation.

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 The data has to be collected from authentic sources and present in the same way.
Manipulating the data is also against the ethical considerations that need to be followed
without failure.

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Chapter 4: Findings
4.0 Analysis
Yes
0
10
20
30
40
50
60
50
Sydney
18-24 25-34 35-44 45-64 65 and above
0
2
4
6
8
10
12
14
16
18
4
16
11
17
2
Age

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AU$ 20 000 -
39 000 AU$ 40 000 -
59 000 AU$ 60 000 -
79 000 Over AU$ 80
000 Up to AU$
20,000
0
2
4
6
8
10
12
14
16
12
15
12
5 6
Income
High School (18-19 years old)
Secondary School (16 years old)
University Masters University PhD
University Postgraduate
University Undergraduate
0
5
10
15
20
25
10
4 4
23
9
Education
Divorced/
widowed/
Separated
Married N/A Never Married
0
5
10
15
20
25
30
8
16
1
25
Marital Status

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The respondents who took part in the survey are all residents of the Sydney area and
mostly belong to the age group of 45-64 years having an income of AU$ 40000-59000. Most of
the respondents have an education level of postgraduate from distinguished universities and are
not married. This has allowed the researcher in narrowing down the viewpoints of the customers
to a particular level so that the research that will be conducted can be done in a proper manner.
It has also allowed the researcher in taking the points in to consideration that has been provided
by the customers belonging to this demographic factors.
A D N SA SD
0
5
10
15
20
25
30
9
12
1
4
24
Energy and waste
Most of the respondents have stated that they strongly disagree with the fact that the use
of energy and waste products need to be reduced. This is due to the fact that the use of energy in
a proper manner will help in reducing the amount of waste in the restaurant. The use of the
automation process and recycling theories will result in keeping the wastes down in the
restaurants. The advanced technologies that are available in the market also needs to be used in a
proper way so that it can help in reducing the amount of wastes in the restaurant to a great extent.

26INDUSTRY RESEARCH PROJECT
A D N SA SD
0
2
4
6
8
10
12
14
16
18
20
14
19
2
8 7
Biodegradable
The respondents have stated that they disagree with the fact that the use of recycled or
biodegradable products needs to be increased in the restaurant business. This is due to the fact
that most of the customers would prefer new things on their tables rather than the ones that has
been already been used by others.
A D N SA SD
0
5
10
15
20
25 22
11
5 5
7
Organic
The respondents have also stated that they agree to the fact that there needs to be an
increase in the use of organic products within the business, as it will help them in staying fit. The
organic products will not carry any harmful substances that will help the customers in remaining
fit and lead a healthy life.

27INDUSTRY RESEARCH PROJECT
A D N SA SD
0
5
10
15
20
25 22
11
3
8
6
Local food
The customers have also stated that the use of local foods in the business needs to be
encouraged so that it can help in keeping the cost of the finished products to a lower level. This
will help the business in increasing its level of competition in the market.
A D N SA SD
0
5
10
15
20
25
20
10
3
9 8
Environmental project
The customers are also of the view point that the restaurant needs to contribute heavily
towards the environmental project so that it can help in preserving the society and the
surrounding environment. This will also lead in increasing their Corporate Social Responsibility
in the market for which the consumers will be attracted towards the business.

28INDUSTRY RESEARCH PROJECT
A D N SA SD
0
5
10
15
20
25
21
13
5 6 5
Ecological footprint
The customers have stated that the restaurants need to pay a small amount of fees so that
it can help in reducing the ecological footprints. It will also allow the restaurant in understanding
the importance of the fact and may not get involved in to these things in the future for which they
have to pay a price. It will also act as a warning sign for the restaurants.
A D N SA SD
0
5
10
15
20
25
20
17
3
5 5
Protection
The customers have stated that dining in sustainable restaurants will help in protecting
the environment, as they use the recyclable methods that will help the waste materials in being

29INDUSTRY RESEARCH PROJECT
reused for commercial purposes. This will allow in lowering the level of pollution within the
society so that the environment can be protected.
A D N SA SD
0
5
10
15
20
25
30
26
13
3
7
1
Expensive
The customers have stated that dining at sustainable restaurants will be expensive, as they
will install new levels of technologies that will allow in recycling the waste materials. These
technologies have to be purchased for which the customers need to pay a heavy price as well for
the meals.
A D N SA SD
0
5
10
15
20
25
30 27
10
3 4 6
Healthy

30INDUSTRY RESEARCH PROJECT
The respondents are of the view that the meals that will be served in the sustainable
restaurants will be healthier, as they will be using the organic products, which will help the
customers in leading a healthy and active life.
A D N SA SD
0
5
10
15
20
25
30
35
29
11
4 5
1
Environment Protection
The customers have stated that they agree with the fact that the restaurants need to protect
the environment as most of the raw materials are grown in local farms. If the environment is not
protected, it may result in destroying the crops for which the business may be hampered as well.
A D N SA SD
0
5
10
15
20
25 23
14
2
8
3
Vegan

31INDUSTRY RESEARCH PROJECT
The customers are of the view that the vegan restaurants will be healthier for them, as the
products will not be using any food that are high in protein content and are sourced from the
animals. This will help the customers in leading a proper life with the chance of lessening their
chronic diseases.
0.10.85 10 15 20 30 33 45 49 50 55 60 65 66 69 70 72 75 76 78 80 85 90 92 100
0
1
2
3
4
5
6
1 1
2
1 1
2
1
4
1
2
3
2
3
2
1
5
1
3
1 1
3
2
3
1
3
Extra payment
It can be seen that almost 7- percent of the customers have stated that they are ready to
pay a higher amount in the vegan restaurants for the food products, as it will be organic in nature
and will not harm the bodies of the customers. It will also result in decreasing the intake of
protein content, which may lead to unhealthy lifestyles.
4.1 Marketing mix (7P’s)
Product
The products that will be supplied by the company will be organic in nature and will offer
different types of products. The main ingredients that will be used by the restaurant will be

32INDUSTRY RESEARCH PROJECT
different kinds of vegetables and cheese that are free of dairy products. This will ensure that the
products do not use any parts of the animal.
Promotion
The restaurant will be suing the online and print media both where the online media will
be used for promoting the restaurant in the social media platforms. The company will extensively
use these platforms, as many customers use the sites that will help them in increasing the
popularity of the company. The company will also promote the dishes through newspapers and
magazines so that it can attract those customers as well.
Place
The restaurant will be opened in the Darlinghurst region that is located in Sydney where
there are other vegan restaurants as well. This will help the company in understanding the needs
and preferences of the customers so that they can serve the customers in a proper manner. The
company will also be taking online orders so that it can be delivered to the household of the
customers.
Price
The price of the dishes will be set in a competitive manner so that it can help them in
attracting the customers. The use of the right pricing strategy will result in increasing the loyalty
of the brand among the customers. The company will be following the strategy of competitive
pricing so that it can offer the products at a lower price than the other restaurants that are
operating in the area.
People

33INDUSTRY RESEARCH PROJECT
The people who will be attracted towards the restaurant will be the ones who are
conscious about their health. Most of the customers in the modern times are leading a healthy
lifestyle by staying fit and eating food that are less in calories. This will result in increasing the
attractiveness of the company in the market.
Process
The restaurant will divide the process in three parts where the process before the sales
will involve the communication with the suppliers so that the goods can be delivered in a proper
manner. It will also ensure that the goods are available in the restaurant at the right time. The
process that will be followed during the sales period will be that the orders will be taken in a
polite manner and the monetary transactions will be done in a secured manner. The after sales
process will be taking the feedback from the customers regarding the quality of food and services
that are offered within the restaurant.
Physical evidence
This marketing mix will allow the customers in recording their judgments regarding the
service and the quality of food that is being provided to them by the restaurant. It will help the
customers to be loyal towards the restaurant with respect to the food that is being supplied by
them.
4.2 Competitor analysis
There are many vegan restaurants that are operating in the Darlinghurst region of Sydney
and one of the noted restaurant is Kindness Café, which specializes in preparing meat-free
curries in a Thai manner along with salads and stir fries. The dishes are packed with flavors and

34INDUSTRY RESEARCH PROJECT
are made with fresh vegetables and fruits. The restaurant does not use any kind of meat or animal
products and most of the dishes are free from gluten.
Another major competitor for the restaurant will be Gigi Pizzeria who specializes in
making wood-fired pizza with different types of vegetables. The pizzas are flavourful, as the
company uses different cheese products as well. Most of the cheeses that are provided by the
restaurant are free of dairy products and uses pumpkin cream in making the cheese. Oriental
Healthy is yet another competitor in the market that provides vegan products to the customers in
a Thai style. The company uses potato, mushrooms, peanuts and broccoli to satisfy the taste of
the customers.
4.3 SWOT analysis
Strengths
The restaurant will be catering to the customers who are conscious about their health and
will be providing a diverse list of menus so that it can increase the level of satisfaction among the
customers. They will also provide an online facility to the customers so that the products can be
delivered to their place. The major strength of the company will be that there are not many
similar restaurants in the market that serves vegan products.
Weaknesses
The weakness of the company would be that the company will be present in a particular
location, which may not result in attracting more number of customers. The diversified menu
will not be providing meat products, which may not attract the other customers.
Opportunities

35INDUSTRY RESEARCH PROJECT
The company can use the system of advance booking facility so that the customers can
reserve their tables before they come to the restaurant. The restaurant needs to introduce combo
offers so that it can help in creating values within the customers. Another opportunity that the
company may use is that they can create a menu for the kids, which will help in attracting the
families as well.
Threats
The customers who will be fond of non-vegetarian and meat products will not be
attracted towards the restaurants, as they will not enjoy the food products. There may be an
increase in the prices of the raw materials, which may result in increasing the prices of the dishes
as well. This may affect the attractiveness of the customers, as they may switch to other
restaurants that will be offering lower prices for the food products.
4.4 Financial feasibility
Profit and Loss account
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue
$1,50,00
0 $1,53,000
$1,59,12
0 $1,68,667 $1,82,161
Cost of goods sold $22,500 $22,950 $23,868 $25,300 $27,324
Gross margin
$1,27,50
0 $1,30,050
$1,35,25
2 $1,43,367 $1,54,836
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue
$1,27,50
0 $1,30,050
$1,35,25
2 $1,43,367 $1,54,836
Operating expenses
Sales and marketing $25,000 $25,500 $26,520 $28,111 $30,360
Payroll and payroll taxes $0 $0 $0 $0 $0
Depreciation $19,000 $19,380 $19,760 $20,140 $20,520
Maintenance, repair, and overhaul $0 $0 $0 $0 $0
Total operating expenses $44,000 $44,880 $46,280 $48,251 $50,880

36INDUSTRY RESEARCH PROJECT
Operating income $83,500 $85,170 $88,972 $95,116 $1,03,956
Interest expense on long-term
debt $5,398 $4,290 $3,138 $1,940 $694
Operating income before other items $78,102 $80,880 $85,834 $93,176 $1,03,263
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes $78,102 $80,880 $85,834 $93,176 $1,03,263
Taxes on income
30
% $23,431 $24,264 $25,750 $27,953 $30,979
Net income (loss) $54,672 $56,616 $60,084 $65,223 $72,284
Cumulative income $54,672 $1,11,288
$1,71,37
2 $2,36,595 $3,08,879
Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $54,672 $56,616 $60,084 $65,223 $72,284 $3,08,879
Depreciation $19,000 $19,380 $19,760 $20,140 $20,520 $98,800
Accounts receivable $0 $0 $0 $0 $0 $0
Inventories ($450) ($918) ($1,432) ($2,024) $0 ($4,824)
Accounts payable $0 $0 $0 $0 $0 $0
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash flow
items 0 0 $0 $0 $0 $0
Total operating activities $73,222 $75,078 $78,412 $83,339 $92,804 $4,02,855
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets
($23,431
)
($24,264
)
($25,750
)
($27,953
)
($30,979
) ($1,32,377)
Other investing cash flow
items 0 0 0 0 0 $0
Total investing activities
($23,431
)
($24,264
)
($25,750
)
($27,953
)
($30,979
) ($1,32,377)
Financing activities
Long-term debt/financing ($27,694 ($28,802 ($29,954 ($31,152 ($32,398 ($1,50,000)

37INDUSTRY RESEARCH PROJECT
) ) ) ) )
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash flow
items 0 0 0 0 0 0
Total financing activities
($27,694
)
($28,802
)
($29,954
)
($31,152
)
($32,398
) ($1,50,000)
Cumulative cash flow $22,097 $22,012 $22,708 $24,234 $29,427 $1,20,478
Beginning cash balance $25,000 $47,097 $69,109 $91,817
$1,16,05
1
Ending cash balance $47,097 $69,109 $91,817
$1,16,05
1
$1,45,47
8
Balance Sheet
Assets
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments $25,000 $47,097 $69,109 $91,817 $1,16,051 $1,45,478
Accounts receivable $0 $0 $0 $0 $0 $0
Total inventory $22,500.00
$22,950.0
0
$23,868.0
0
$25,300.0
8
$27,324.0
9 $27,324
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $47,500 $70,047 $92,977 $1,17,117 $1,43,375 $1,72,802
Buildings $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Land 0 0 0 0 0 0
Capital improvements
$
20,000 20,000 20,000 20,000 20,000 20,000
Machinery and
equipment
$
60,000 60,000 60,000 60,000 60,000 60,000
Less: Accumulated
depreciation expense 0 19,000 38,380 58,140 78,280 98,800
Net
property/equipment $95,000 $76,000 $56,620 $36,860 $16,720 ($3,800)
Goodwill $17,500 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $1,60,000 $1,46,047 $1,49,597 $1,53,977 $1,60,095 $1,69,002

38INDUSTRY RESEARCH PROJECT
Liabilities
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $0 $0 $0 $0 $0 $0
Accrued expenses 0 0 0 0 0 0
Notes payable/short-
term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities 13,741 46,093 80,427 1,17,697 1,59,002
Total current liabilities $0 $13,741 $46,093 $80,427 $1,17,697 $1,59,002
Long-term debt from
loan payment
calculator 1,50,000 $1,22,306 $93,504 $63,550 $32,398 ($0)
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $1,50,000 $1,36,047 $1,39,597 $1,43,977 $1,50,095 $1,59,002
Other liabilities 0 0 0 0 0 0
Total liabilities $1,50,000 $1,36,047 $1,39,597 $1,43,977 $1,50,095 $1,59,002
Equ
ity
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity
(common)
$
10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0
Total equity $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total liabilities and
equity $1,60,000 $1,46,047 $1,49,597 $1,53,977 $1,60,095 $1,69,002
4.5 Research limitations
While conducting the research, the researcher encountered some challenges that
compromised with the research work. One of the major limitations that the researcher
encountered while commencing with the work is lack of adequate information. This is because
the concept of vegan and sustainable practices is new and certainly unexplored. Thus, few
researches have been conducted in this field previously. In addition to, as this research is

39INDUSTRY RESEARCH PROJECT
primarily focused on vegan and sustainable practices, the work cannot be used as secondary
resource for determining market feasibility and profitability.

40INDUSTRY RESEARCH PROJECT
Chapter 5: Conclusion
5.0 Conclusion
From the above chapters, it can be concluded that the market feasibility and profitability
of the vegan restaurant, The Fresh Farm is moderate. The potential gap that has been identified
for this research highlights that the concept of vegan and vertical farming is certainly unexplored
and new to the customers. It has been seen that the two restaurant of Darlinghurst region have
moderate frequency of customers aged 25-30 years, as they visit the restaurant for dining twice a
week. The sustainable practice is comparatively new that the restaurants are planning to
undertake. The Fresh Farm is a new vegan restaurant that is opening in Darlinghurst region, New
South Wales. Upon considering the viewpoints of the customers of the restaurants, it was seen
that the customers prefer began lifestyle as well. However, the concept of vertical farming is not
known to all the customers. The use of the sustainable practice of vertical farming is beneficial
for the restaurant and profitable, as The Fresh Farm is able to save cost largely. The restaurant is
able to promote vegan lifestyle among the customers thereby, ensuring profitability of the
restaurant.
5.1 Linking with objectives
Objective 1: To investigate the market feasibility and profitability of opening a sustainable
vegan restaurant, The Fresh Farm, in Darlinghurst region
This objective is linked with literature review section 2.1. Section 2.1 of the literature
review highlights the sustainable development concepts and relevant practices in the Australian
industry thereby, investigating the market feasibility and profitability of opening a sustainable
vegan restaurant in Darlinghurst region.

41INDUSTRY RESEARCH PROJECT
Objective 2: To explore vegan and vertical faming knowledge and acceptance
This objective is linked with literature review section 2.2 and 2.3. Section 2.2 and section
2.3 highlights the recent food trends in the Australian market along with analyzing the existing
knowledge and acceptance of vegan lifestyle and vertical farming in Australia.
Objective 3: To measure the importance of sustainable practices, social, environmental and
economic, in casual restaurants from consumers’ perspective
This objective is linked with literature review section 2.3 and section 2.4. Section 2.3 and
section 2.4 of the literature review highlights the the significance of the sustainable practices in
terms of the social, economic and environmental aspect and the perspectives of the customers
regarding the sustainable practice.
Objective 4: To access and describe consumer attitudes and behaviors towards sustainable
concepts in restaurant to access market feasibility
This objective is linked with literature review section 2.4. Section 2.4 of the literature
review highlights and assess the relationship between the consumer behavior and attitude
towards sustainable concepts undertaken by the restaurants by accessing the feasibility of the
market.
5.2 Recommendations
The suitable recommendations include:
 Promoting vegan lifestyle
 Spreading awareness awareness about vertical farming
 Using vertical farming for cost reduction

42INDUSTRY RESEARCH PROJECT
 Convincing the financial institutions about the concept of vegan and sustainability
practices for adequate finances.


43INDUSTRY RESEARCH PROJECT
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Appendices
Appendix 1
Survey questionnaire
Do you live in Sydney? Yes No (terminate the Survey)
Part A – Demographics
1. What gender are you? Male Female
2. What is your age range? 18-24 25-34 35-44 45-64 65 and above
3. What is your income/year? (Mark one alternative) Up to AU$ 20,000 AU$ 20 000 - 39 000 AU$ 40 000 - 59 000 AU$ 60 000 - 79 000 Over AU$ 80 000
Part B – We are interested on the importance of sustainable practices in restaurants for
consumers.

49INDUSTRY RESEARCH PROJECT
Please indicate the response for each statement using the scale (SD= Strongly Disagree, D= Disagree,
N= Neutral, A= Agree and SA= Strongly Agree)
It is important for me that restaurants
1…reduce energy usage and waste SD D N A SA
2…use biodegradable or recycled products
3…use organic products
4…serve locally grown food
5…donate to environmental projects
6…pay fees to reduce their ecological footprint
Part C – This last section explores consumers’ beliefs and attitudes towards sustainable
practices and vegan food.
Please indicate the response for each statement using the scale (SD= Strongly Disagree, D= Disagree,
N= Neutral, A= Agree and SA= Strong Agree)
1. Dining at sustainable restaurants will help to protect the
environment
SD D N A SA

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2. Dining at sustainable restaurants will be more expensive
3. Dining at sustainable restaurants will be healthier for me
4. It is good for restaurants to protect the environment
5. Dining at vegan restaurants will be healthier for me
6. What percentage, if any, would pay extra to dine at sustainable restaurants?

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Appendix 2
Interview transcription
Are you aware of vegan and vertical farming and do you accept this sustainable practice?
Customer 1: “I am aware of vegan and vegetarian lifestyle but I am not aware of vertical
farming. So, I doubt whether I accept the sustainable practice undertaken and implemented by
the restaurants. However, I support vegan and vegetarian lifestyle. I think consuming vegetables
is significant, as this provides necessary nutrients for our body. Depending completing on meat
fails to provide necessary nutrients to the body.”
Customer 2: “I am aware of vegan and vegetarian lifestyle. I myself is a vegetarian and love
consuming vegetables. My main reason for opting for vegan lifestyle is my love for animals.
When I understood the pain of sacrificing the animals for us, I made my decision instantly. I am
also aware of vertical farming. I accept the sustainable practice of vertical farming, as Australia
is highly populated that has led to increased population. Using the concept of vertical farming
will allow producing more crops in restricted place and producing pollution free crops.”
Customer 3: “Even I am aware of vegan and vegetarian lifestyle and I do accept the sustainable
practice the restaurants are undertaking considering the present environmental condition of
Darlinghurst region. I consume vegetarian and non- vegetarian foods but I prefer vegan lifestyle
more. I can say that the vibrant colors of the vegetables attract me more. I am aware of vertical
farming and I think this is a good practice that is undertaken by the restaurants. Vertical farming
allows producing crops in limited space. Considering the present environmental condition of
Australia, I support the sustainable practice of vertical farming and leading a vegan lifestyle.

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Customer 4: “I am currently working as an Environmental Officer and aware of the present
environmental condition of Australia. Increased population and urbanization has led to decrease
of free and unpolluted lands in Australia that has compromised farming space. I am aware of
vertical farming and accept this sustainable practice. This sustainable practice allows the
individuals to produce crops and vegetables in vertical lines. Farming in vertical lines requires
less space and is also less costly. The restaurants can use this technique and grow their own
vegetables rather than buying it from markets that is extremely costly.
Customer 5: “Though I am a vegetarian, I do not have much knowledge about vertical farming.
But I am sure it has something to do with farming. If I look in to the current environmental
condition of Australia, I am worried. Huge hectares of lands are being used and taken up for
urbanization and development. Also, increased development and urbanization is resulting in
pollution that is severely harmful. As I am unaware about vertical farming I cannot say about its
benefits but I do support the sustainable practice that the restaurants are taking up.