Innovation and Entrepreneurship in the Restaurant Industry

This document discusses the importance of innovation and entrepreneurship in the restaurant industry, focusing on Indian Tadka restaurant in London. It covers market analysis, industry analysis, and operational details of the restaurant.

Innovation and
entrepreneurship
Table of Contents

INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Business Details .........................................................................................................................3
Overview of macro environment................................................................................................4
Analysis of market....................................................................................................................5
Industry Analysis: .....................................................................................................................6
Details related to operations .......................................................................................................7
SWOT Analysis..........................................................................................................................7
Financial requirements ...............................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
It is very important for business organisation to perform the operational activity through
implementing innovative ideas so that business become capable to survive in the competitive
environment. As there are existence of large number of substitutes and well recognised
competitor so it is necessary for restaurant to take some initiative steps s. Innovation and
Uniqueness capturing attention of audience and tends to increase competitive brand image.
Market analysis must be perform by entrepreneur along with staff members through formulating
smart strategies (Almeida, 2020).Because than only it become possible for company to grasp
opportunities . With the help of these strategies Overcome with the challenges which they are
facing at the time of dealing with business operation. The business plan that was developed in
this report is to create a new dish with fusion of Indian & Italian in the already exist Indian
restaurant. Indian Tadka that previous serves pure vegetarian Indian food only offer the
customers new Italian dishes also. The area where restaurant make more focus are study of
market, operational area, industry analysis, external and internal environment analysis, financials
needs and requirements etc.
TASK
Business Details
Restaurant develop a new business plan to offer Pizza with combination of Indian
flavours by using different types of Indian dishes which can also be modified as per the demand
of consumers. Like Doing innovation of bhaji Pizza as it is mixture of Italian and Indian food
(BROUDE, 2020). It captures customers attentions towards their innovative food items which
leads to increase sales and revenues that helps restaurant in business growth and survival. People
try the latest version of Italian & Indian who love to eat both as it gives taste of both in one dish.
The reason behind that to select this business plan is that large number of Indian families
are live in London who are pure vegetarian and who also shown their interest in Italian food item
so enterprenuer decide to introduce something new so that their brand image is tends to be
increase in market.

Indian Tadka is an Indian restaurant in London that serves the fusion meal which is a
combination of both, English and Indian dishes. It is located in prime locations of London. Huge
varieties of Indian dishes are served by it with an English fusion. By this Indian Tadka will
attract more customers by serving exclusive fusions of the dishes. It serves large varieties of food
item as per the demand of customers and the industry try to add some new items in the list of
their menu cards (SBROUDE, 2020). managers of the restaurant observe that In London so
many Indian families live and also many other people show their interest in Indian food so they
want to expand their business through offering various new special items. In this way they
provide competitive advantage.
Overview of macro environment
STP model
It make emphasis on the core areas such as segmentation, targeting, positioning. It is a
framework which helps the organisation to simplifies market segmentation process. If market are
segmented into group as well as position the product & services towards these groups than
marketing become more successful.
Segmentation- The initial stage of this process is to segment the market. On the basis of
following factors market is to be segmented.
 Geographic- In this market is sort in context to state, country, city, neighbourhood etc.
 Demographic- Market is to be divide on the basis of income, age, marital status, gender,
ethnicity, occupation, educational level etc.
 Psycho graphic- with regards to people activities, religious views, entertainment choices,
attitudes, personality traits, political affiliation, hobbies, lifestyle etc. people
segmentation is done (Chatterji, 2018)
 Behaviour – Through analysing how customers use the product, how it become possible
for them to finance the purchase, in what context they behave towards consumption level,
brand loyalty, etc.
Targeting- In this decision making is done regarding effective segmentations that are
most beneficial and tends to attract large part of the audience towards their brand/ product/
services. For that following elements is to be considers for examples-
 Profitability- Deep study is also done to analyse segment pay most to organisation
product and what is customers lifetime value it is also be consider.

 Size- of the segment and their potential to grow in size.
 Ease of reach- In this it is observe that how difficult or easy to reach targeted market with
the help of marketing. Is it is easy for distribution network to reach the segment. Also to
analyse that what are the acquisition cost of clients for respective segment .
As not only segment size is to be consider but each segment overall profitability should also be
consider (Cosenz, 2018).
Positioning- There are three standards where product or services are to be placed to gain
competitive advantage.
 Functional positioning- It is concerned to problem solving as well as to give advantage to
customers.
 Symbolic positioning- It relates to enhance ego, self image, belongingness desires of
audience. This factor tends to fulfil needs which is relates to ego as well as customer self
esteem.
 Experiential positioning- It tends to concentrate on those features of services or product
which tends to connect customers emotionally.
As our restaurant INDIAN TADKA use segmentation to serve the purpose of targeted market.
Because restaurant try to introduces a new dish for all age group people who love to eat Indian
and Italian food. So they target college going or office going persons as well to travellers and
those who like the fusion of Italian Indian food.
Restaurant use segmentation to develop better content that gets customer attention and
gets them to take right decision. To attract wider variety of diners, restaurant segment their menu
to appeal to different demographic characteristics. They Add list of healthy food items to bring
weight and health conscious friends. Children menu are also included so large number of kids are
also visit.
Analysis of market.
It is important for every business to do analysis of the industry so it become possible for
organisation to operate their operational activity successfully at market place as well to gain
competitive advantage from their competitors that are exist in the market. To analyse food
industry the tool porter's five forces are used by smart executives of restaurant Indian Tadka so
that business runs smoothly (de la Fuente, 2019)

 Competitive Rivalry- As there is high threat to business in context to competitive rivalry
because in London there are so many Indian restaurants who serve only pure vegetarian
food to those who don't like to eat non veg. Also because those restaurants who make
good brand image in the minds of customers so audience are not shown any interest to try
the restaurant which is new. And like to go only to the restaurant where they generally go
to eat food. In the market place competitors tends to decrease the food item prices which
results as reduction in the profitability level.
 Buyer Power- Buyers are often demanding in the market place as they try to purchase the
best available offering by paying less prices. In front of restaurant Indian Tadka it tends
to create pressure because buyers powers is high. With regards to increase customer base,
Indian Tadka requires to innovate rapidly new food items which is available to customers
at minimum cost. In this manner it tends to attract large audience at market place.
 Supplier Power- There is existence of high supplier powers. Because from various
different suppliers food industry purchase raw material to prepare dishes as it is the only
reason due to which suppliers in the industry become so powerful as well as negotiation
power are used by them to extract high process . Therefore it is necessary for Indian
Tadka to develop the supply chain which is effective through multiple suppliers due to
which profitability in the market is tends to be increased (Duening, 2020)
 Threat of new entrants- as there are large number of restaurants who operate their
business in the same industry. Because this business has very low chances to failure so
many new restaurant try to take entry in the market due to this there is high power to new
entrant. So to survive in the competitive market Indian Tadka make innovation time to
time so that they stands in monopoly situation and earn maximum profit in the food
industry.
 Substitution threat etc.- It has high intensity because there are huge variety of food items
which has their substitute and people use the substitute of product if it is not available
easily or the cost of food item is high than they move towards the items which is less
expensive. As substitute item also make impact on profitability. So it is necessary to
become service oriented rather than product oriented. So to survive in the market Indian
Tadka make emphasis on providing quality services and food items so that they can retain
their customers for long term (Herrera, 2018)

The restaurant “Indian Tadka” targets mainly to those who are students , youngsters or to
those individuals who are not so much expert on cooking . Also to those who have short time or
budget. Due to this reason Indian Tadka is set up in different location where institutions,
colleges, corporate office are situated. Through offering quality content it attracts audience so
that they show interest to visit the restaurant. In this way it has an opportunity to business
growth.
Industry Analysis :
As food industry is so complicated as farmers or animal hunters are tends to be
considered outside from the scope of modern and advanced food industry. Health related food
and their supplements is another way of rising segment in this respective industry. Due to
increment in the urbanization, country leads to provide a boost to food industry. In London, most
of the women are engaged in working as a result families have extra amount which they are
interested to spend in purchasing food items. In the country people standard of living is improved
which indirectly increased demand of restaurants. This too helped the restaurant Indian Tadka to
increase sales of their food items/ dishes . The main competitors of Indian Tadka in London are
Mumbai delight, masala Indian restaurant, Namaste Kitchen , Little India, The Mughal Indian
restaurant etc (The STP Marketing model, 2020). As these restaurant are set up in good location
so that it can capture large customer base which supports the industry to grow. Generally Indian
Tadka target consumers who like to eat fast food. Youth as well as kids are the target audience
whom they are interested to serve new fast food like bhaji pizza , pasta loaded pizza etc.
Understanding wants of consumers are also tending to be consider as effective way to attain high
level of satisfaction. For this, Indian Tadka continuously include uniqueness in the food product
line. It also helps to maintain good brand image and influencing consumers to come in their
restaurants and try new dishes (Nambisan, 2020)

As According to the above analysis it is conclude that the business of restaurant is successful in
States of United Kingdom . Therefore, the Indian Tadka Food court can easily expand the
business by offering new dish of Indian Italian combination. As large number of tourist visit
London every year , it also tends to increase the chances of business survival.
Details related to operations
The location of Indian Tadka is Regent's Park, London. There are various underground
station in this area around the perimeter of the Regents’ park as it is one of the example of royal
parks in London. Many other transport like taxi, buses, trams are also available in this location so
that people can easily go from one place to another. In central London it covers largest area with
grass for sports. London Zoo are also situated in this area, the location is so beautiful as large
number of tourist are come to this areas to do boating. Lake also make the place more attractive
as people came here to sit and overview the sight. As there are so many statues or fountains are
also present in this prime location of London. So Daily thousands of people pass through this
area so it became easy for Indian Tadka to attract or capture large customer base. Apart from the

two linked roads the park is tends to be reserved for pedestrian. On the other hand, south side of
inner circle , Regents' University London is situated, European business school , Webster
graduate school, Regent' American college are also dominated in this prime area. On the northern
side Primrose Hills are present. As Indian Tadka restaurant has beautiful crockeries as well as
they have their own conventional oven which provide pizza the authentic taste of fusion Italy and
India. However, bhaji and fresh pasta is preparing with the help of machines (Lorenzo,
2018).Through company's website audience can order dishes online and Indian Tadka delivered
the food items to customers with the help of company's delivery boy. Also the location is
connected to subways which means people come to their restaurant and order the food which
they like the most and they want to eat .
As consumers visit restaurant for the purpose to eat as fast possible. Therefore on speed,
operational plan should emphasize more and without making any compromise in food and
service also.
For this appropriate menu is set by the restaurant Indian Tadka. For that they select those
dishes which they can serve easily . For every food item evaluation is also being done regarding
cost. In this labour cost is to be determine . Restaurant also focus on food procurement process.
As money can be save and limit the waste by using similar ingredients into multiple items of
menu. After that requirements of staff is analyse and appoint sufficient number of workers for
different departments in the restaurants. So that work are perform smoothly that leads to increase
chances of customer satisfaction. Restaurant must follow efficient operating systems so that fresh
hot food are reedy whenever it is needed by customers. As operations of restaurant is established
with many cashiers so that long line can be avoid. Develop System to keep facility tidy & tidy.
Arrangement of schedule dedicated staff for wiping down tables and clearing dishes are done. As
these activities of different department help restaurant to achieve the targets on time by attracting
and satisfying customers. It indirectly make positive impact on sales also (Teixeira, 2019).
SWOT Analysis
Strength: As quality service is provided by Indian Tadka restaurant also it is situated in
the prime location of London where there is beautiful places or park available as well as many
educational institutions are also present there so it easily captures large customer base so it is
great strength to business. On the other hand, it follows competitive pricing strategy where food

items and new fusion dishes are offer at affordable prices. Their attractive menu also
differentiate them from their competitors (Urbaniec, 2018)
USP : The USP of restaurant Indian Tadka is that they make innovation in their food
items as they offer fusion of Indian and Italian in one dish. Which is totally different dish as it is
not previously serve in any Indian restaurant in London. In this way it make the food court
different from other vegetarian restaurant.
Weakness: Non availability of sufficient Indian staff is the great problem that was face
by Indian Tadka restaurant because it requires India chef to cook Indian food. Non availability of
Indian spices which is commonly used in India is also another weakness to business.
Opportunities : As most convenient location is great opportunity for food business to
expand. The Indian Tadka restaurant is situated in prime location of London , where there are
large number of office, colleges are there and the location also have beautiful sites so large
number of people are also visit there so it is great chance for business expansion.
Threat: Change in the taste of customers and introduction of new innovation in the same
dishes by their competitors are threat faced by Indian Tadka. However high competition and
political change in environment also make impact on whole restaurant activities. For example if
tax rate is increase than it tends to raise the cost of food item. Due to this it become costly for
customers so, many people try to avoid to eat food on restaurant and try to make it on home
because they do not have sufficient amount to purchase. It make negative impact on sales and
revenues of restaurant that leads to increase chance of business failure.
Financial requirements
The restaurant Indian Tadka is deal in vegetarian Indian Food but now their chef make
innovation and to develop fusion for this need they some capital, equipment’s, also for the reason
business expansion it attract large customer at a time so there is need to make arrangement of
furniture as well( Grafensteis in, M., 2018) . So various cost is to be estimated which is needed to
run business operations smoothly. As it is approximately ascertaining which are discuss as
follows -
 Cost of furniture- £ 5000equipment’s- £ 1200
 Building hired on rent=
Amount of Security Deposit=£ 500
Two months’ advance rent= £ 2500

 Estimated sale cost- As according to quantity
 food item selling pricing - £ 60
 Variable cost -£ 35 per unit
 Fixed cost-£ 2000
Financial situation:
as per analysis of cash flow statement it is concluded that total inflow of cash tends to
decline in the upcoming next two years whereas cash outflow in the 2021 is of rupees twenty
three hundred. It tend to increase in the next year with 500 rupees and it declines in the year

2023. It is fluctuates every year. The closing balance of the cash and bank is increase rapidly in
the next upcoming years. It shows that financial position of business is strong as organisation
have sufficient fund to make investment in the new project that gives high return. Also
organisation has adequate fund to make payment to their creditors.
CONCLUSION
On the basis of business development plan it has been observed that it is so necessary for
organisation to develop a clear mission as well as vision before thinks to start a new business.
As it supports to capture audience attention towards their advance services or new product line.
For that various aspects are followed to analyse various internal and external factors that make
positive or negative impact on organisation. Additionally, analysis of industry and market also
support to determine the location where it is possible to attain success. On the basis of this,
organisation can generate huge share of market and it also leads to sustain in the market place at
same time .
REFERENCES
Books and Journals
Almeida, F. and Santos, J.D., 2020. 4 Financial Plan & Viability Analysis.
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contribute article entries on a rolling basis. The knowledge and technology exist; what
remains to be developed, perhaps, is a viable business plan.
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Economy, 18(1), pp.27-51.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning. 51(1). pp.127-140.
de la Fuente, J., Kauffman, D.F. and Diaz-Orueta, U. eds., 2019. Psychology, Technological
Innovation, and Entrepreneurship. Frontiers Media SA.
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Innovation to the Marketplace. Academic Press.
Herrera, F., Guerrero, M. and Urbano, D., 2018. Entrepreneurship and innovation ecosystem’s
drivers: the role of higher education organizations. In Entrepreneurial, innovative and
sustainable ecosystems (pp. 109-128). Springer, Cham.

Lorenzo, O., Kawalek, P. and Wharton, L., 2018. Entrepreneurship, innovation and technology:
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Elgar Publishing.
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entrepreneurship, innovation, and internationalization. IGI Global.
Urbaniec, M., 2018. Sustainable entrepreneurship: Innovation-related activities in European
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