Innovation and Entrepreneurship: The Wooden House Vegan Restaurant

This report discusses the concept of entrepreneurship and innovation in relation to a themed restaurant called The Wooden House Vegan Restaurant. It covers the business idea development and the business plan for the restaurant, including market analysis, operations details, and financial requirements.

Innovation and
Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Business idea development..........................................................................................................1
TASK...............................................................................................................................................2
Business plan...............................................................................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is termed as the process of establishing a new business venture or growing
an existing one. Innovation is a new idea or imagination, deliberate application of which brings
greater values. The concept of entrepreneurship and innovation are undeniably interlinked with
each other as innovation is a particular tool of entrepreneurs through which they exploit
opportunities and brings change (Etzkowitz, and Zhou, 2017). This report is based on a themed
restaurant named as "The Wooden House Vegan Restaurant”. It is a new restaurant which is
based on the theme "Tree top". This report covers description about the business idea which is
innovative and helps in gaining competitive advantage in market. Moreover, a business plan is
also developed based on the idea which includes market and industry analysis, operations detail,
SWOT analysis and financial requirements of business.
TASK 1
Business idea development
In current competitive business environment, innovation is the key for each and every
organisation to get success and growth in the market. Entrepreneurs have the ability to develop
new idea or concept and convert it unique products and services that helps business in catering
the needs of customers entertaining competitive advantage in market. Entrepreneurship and
innovation are highly interrelated with each other as innovation act as a tool for entrepreneurs to
exploit opportunities from market and gain advantage over rivals. The Hospitality industry is one
of the rapidly growing sector that provides various opportunities to entrepreneurs to bring
innovation and develop such products and services that effectively caters the need of market. The
Wooden House Vegan Restaurant is a new restaurant which will based on the concept of “Tree
top”. This restaurant will establish in central London which is one of the most crowded area of
London. Opening restaurant to this area will help restaurant in attract more number of customers
towards it (Galindo, and Méndez, 2014).
The main concept behind starting this restaurant is 'Tree top' which is a completely unique
concept in which cabin like houses are made up on the tree which are 10 meters up from the
ground. Apart from this, the lighting in the tree house creates dramatic effect in night as it glows
by wooden slats. In addition to this, the furniture made in the house and the utensils which will
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use to serve food to guests are also made from wood. This will help in providing unique
experience to customers and customers will enjoy the beauty of nature by visiting this place. Not
only this, the restaurant serves vegan food which is good for the health of people. As people are
more concerned towards their health and prefer to have healthy food, this provides an
opportunity to the restaurant to gain attention of customers by offering them with healthy food
options. The relaxed environment, attractive ambience and interior, healthy food etc. will help in
attracting not only the local people of the city, but also attract the visitors. Hence, discuss unique
concept of restaurant will provide competitive advantage in market to it and helps in
differentiating itself from other restaurants (Eesley and Miller, 2017).
TASK
Business plan
Business plan is referred as a document that includes all the details regarding the goals and
objectives of business, strategies and actions that will be taken into consideration for achieving a
particular goal. This business plan will provide direction to the management of The Wooden
House Vegan Restaurant to work in a direction to bring reliability and consistency in work
perform to accomplish set goals (Landström, Åström, and Harirchi, 2015). In relation to the
restaurant, the business plan is mentioned below:
Executive summary:
The Wooden House Vegan Restaurant is a themes restaurant which is based on the theme
'Tree top' in which the cabin like houses are made 10 meters up on the tree. The idea is based on
the nature's beauty concept where people come to have lunch or dinner and experience beauty of
the nature. the green environment all around the restaurant provide them with positive energy.
They get peaceful environment in the restaurant which provides guests with the excellent
experience having dinner with family and friends.
Mission of restaurant:
The mission statement of restaurant is "To provide customers with great experience of
having food in peaceful surroundings and experience the beauty of nature".
Vision of restaurant:
The vision of restaurant is "To attract large number of customers and be one of the
leading restaurant worldwide".
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Objectives of restaurant:
The main objectives of restaurant are mentioned below:
 To establish themed restaurant successfully in London and attract large number of
customers.
 To attain high amount of sales and revenues within one year of its establishment.
Market analysis:
Today, people seeks for such a restaurant which provides them with healthy food,
peaceful and relaxing environment, safe and hygienic place, attractive interior and ambience
which makes them feel happy. For celebrate every moment of life, people like to go and visit
such places where they feel happy and get relaxed. Eco friendly environment with natural beauty
is the most appropriate place for them to get peace of mind. The Wooden House Vegan
Restaurant provides its guests with all these. This restaurant will be able to satisfy all the needs
of customers by offering them with high quality food and services. Due to increasing health
issues, people prefer to have healthy food in their diet. The restaurant also addresses this issue
and offer people with healthy vegan diet which is good for their health. This help the company in
attaining competitive advantage and satisfy the customers to maximum extent (Sart, 2014).
In order to better understand the target market of restaurant, the management of The
Wooden House Vegan Restaurant will make use of STP (Segmentation, Targeting and
Positioning) model.
 Segmentation: In order to determine the target market, the restaurant divide its market on
the basis of demography in which age and income level of the people are the two aspects
on which the target market will select by restaurant.
 Target market: The restaurant targets people with high income level and all age group of
individuals. Both local as well as visitors of London are considered as the main target
market of the restaurant.
 Positioning: The Wooden House Vegan Restaurant positioned itself in market with the
concept of environment friendly and natural beauty place that helps it in attracting large
group of customers towards the place.
As the restaurant industry is growing very rapidly and the trend of healthy and organic food,
vegan diet is increasing, it is expected that the business will grow constantly in the upcoming
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years. Apart from this, to ensure long term sustainability in market, the restaurant will bring
constant innovation in its offerings.
Industry analysis:
Before starting a new business and entering into a new market, it is very necessary for the
management of The Wooden House Vegan Restaurant to analyses the industry in an appropriate
way so as to determine the opportunities and threats in the market available in the market analyze
the competitive position in the industry (Sahut, and Peris-Ortiz, 2014). Proper analysis of
industry will help the restaurant in formulating appropriate strategies that leads it towards
growth. Porter's 5 force model can help the restaurant in analyzing the industry.
 Bargaining power of buyer: In London, there are large number of themed restaurants
development on unique themes which give more power to customers to switch to other
restaurant. The bargaining power of customers is high in the market.
 Bargaining power of supplier: There is availability of large number of suppliers of raw
material in the restaurant industry which makes the bargaining power of suppliers’ low
for the restaurant.
 Rivalry in the industry: Rivalry in the restaurant industry is high as there are large
number of competitors available in the market which gives tough competition to The
Wooden House Vegan Restaurant.
 Threat of Substitute products: Online food ordering is the substitute of restaurant. But,
the people who came to visit different attractions of London prefer to visit the restaurant,
so the threat of substitute is moderate for the restaurant (Zhou, 2015).
 Threat to new entrants: In London, there are many restaurants available in the market
which makes it difficult for new restaurant to gain sustainability easily. So, the threat of
new entrants high. However, as the restaurant is set up with a unique theme, it attracts
more number of customers which help the restaurant in overcoming the threat.
Operations details:
The Wooden House Vegan Restaurant will be located near The Victoria and Albert
Museum, Cromwell Road, Knightsbridge, London. As the museum is visited by large number of
people, it is the appropriate location to set up the restaurant. As the museum is situated in the
centre of London, large number of people visit the place. So, there is proper availability of
transportation in that area which makes easy for the people to reach to the restaurant easily and
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get excellent experience of beauty of nature and eco-friendly environment of restaurant. As the
Victoria and Albert museum includes science museum and natural history museum that contains
around 145 galleries spanning 5000 years of related artefacts, it is very prominent place among
visitors to visit.
Apart from this, Friday late program is also held on last Friday of month around the
Victoria and Albert museum which is very popular among the people of London for its food and
drink experiences as well as late-night exhibition openings. In addition to this, the museum also
owns largest collection of post classical sculpture in the world (González-Pernía, Jung, and Peña,
2015). All these features of the attraction attract more number of visitors towards it which
provides an opportunity to restaurant to attract large number of customers and generate high
sales and revenues by offering them with high quality services and unique experience. Central
London is the most crowded place so, the availability of transportation is adequate in the area
and allow people to easily visit the restaurant. The environment surrounding the restaurant is also
good which helps in providing the positive and peaceful environment to guests.
SWOT analysis:
In order to analyse the strengths, weaknesses, opportunities and threat, SWOT analysis
framework can be utilizing by management of The Wooden House Vegan Restaurant.
Strengths Weaknesses
 The main strength of restaurant is its
unique theme, 'Tree top' which enable
to attract large number of customers.
 Providing customers with environment
friendly environment and vegan food
helps restaurant in stand out from
competition.
 High price of restaurant may reduce
customer base.
 Not having online food delivery
services.
Opportunities Threat
 Unique theme of restaurant provides it
with the opportunity to attract people
more.
 Bringing constant innovation in its
 High competition in market creates a
threat for restaurant.
 Frequently changing needs and
preferences of customers is a threat for
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product and services also provide
opportunity to restaurant.
restaurant.
Financial requirements:
For setting up a business, high amount of funds is required. The Wooden House Vegan
Restaurant will invest 60000 pounds in opening up the restaurant. The cost breakdown is
mentioned below:
Particulars Amount (In pounds)
Initial capital 30000
Cost of equipment 10000
Cost of furniture 7000
Premises cost 9000
Opening stock 4000
Total 60000
CONCLUSION
As per the above mentioned report, it has been concluded that for an entrepreneur,
innovation is the key tool to attain growth and success in the market for long term. It is very
necessary for an entrepreneur to set up business with unique idea that helps in catering needs of
customers effectively. There is huge competition in the market, in order to deal with it in an
appropriate manner, preparing an appropriate business plan will help in running the operations of
business smoothly in new market.
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REFERENCES
Books and Journals
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Galindo, M.Á. and Méndez, M.T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of business research, 67(5), pp.825-829.
Eesley, C.E. and Miller, W.F., 2017. Impact: Stanford university's economic impact via
innovation and entrepreneurship. Available at SSRN 2227460.
González-Pernía, J.L., Jung, A. and Peña, I., 2015. Innovation-driven entrepreneurship in
developing economies. Entrepreneurship & Regional Development, 27(9-10), pp.555-
573.
Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M., Quesada-Pineda, H. and
Amara, N., 2015. Disentangling competences: Interrelationships on creativity,
innovation and entrepreneurship. Thinking Skills and Creativity, 16, pp.27-39.
Landström, H., Åström, F. and Harirchi, G., 2015. Innovation and entrepreneurship studies: one
or two fields of research?. International Entrepreneurship and Management
Journal, 11(3), pp.493-509.
Sart, G., 2014. The new leadership model of university management for innovation and
entrepreneurship. Eurasian Journal of Educational Research, 57, pp.73-90.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics, 42(4), pp.663-668.
Zhou, J., 2015. The Oxford handbook of creativity, innovation, and entrepreneurship. Oxford
University Press.
Schmitz, A., Urbano, D., Dandolini, G.A., de Souza, J.A. and Guerrero, M., 2017. Innovation
and entrepreneurship in the academic setting: a systematic literature
review. International Entrepreneurship and Management Journal, 13(2), pp.369-395.
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