Developing a Restaurant Business in Lahore, Pakistan

The assignment provides an overview of starting a fast food restaurant business in Lahore, Pakistan. It highlights the importance of market analysis, segmentation, targeting, and positioning (STP) techniques to identify the most suitable target customer group. The assignment also discusses the vision and mission of AA & Z's Restaurant, including providing good food at an affordable price and excellent service.

Introduction to
Entrepreneurship

 Entrepreneurship can be defined as the activity of
taking up a creative idea, developing and
designing a business around the idea, managing
the business activities as well as accepting the
risk associated with the success of the business
(Burns, 2016).
 This start up guide will focus on developing a
restaurant business in Lahore, Pakistan.
 It is a widely accepted fact that food business can
be identified as that kind of business which can
yield substantial revenue irrespective of the
economic condition.
Introduction

 Mr. Abbas Ali, Mr. Adeeb Hasan and Mr.
Zunaid Ali are working together for
materializing the idea of opening the fast
food restaurant business.
 However, this specific idea is the brain child
of Mr. Abbas Ali who proposed the idea and
elaborated the benefits and prospects of
this business before Mr. Adeeb Hasan and
Mr. Zunaid Ali and they also agreed to
invest in this business.
Founders and Vision

 The trio agreed on naming the restaurant as
“AA & Z’s Restaurant”. They have planned
to start the business with the vision of
selling delicious and high quality food as per
the customer’s need and also providing the
customers with commendable service
through the demonstration of efficiency,
warmth and graciousness.
Founders and Vision
(Continued...)

 The relevant information regarding the marketplace
that can affect the business activities of AA & Z’s
Restaurant will be collected and analysed.
 As opined by Henrekson and Sanandaji, (2014), it is
quintessential to perform an appropriate market
analysis before starting a business because this helps
the business to get an insight of the marketplace
where it is planning to operate.
 In this context it can be stated that the entrepreneurs
should analyse the recent market trends, demographic
features of the location so as to design their products
in accordance with the choice and preference of the
target customers (Lee et al., 2016).
Market Analysis

In order to identify the most suitable target
customer group the business organisations
mainly use the STP tool. AA & Z’s
Restaurant will use the STP or
segmentation, targeting and positioning
technique for identifying the customers who
are needed to be targeted and thereby
designing the strategies through which it
will be able to cater the needs of the
customers (Storey, 2016).
Target Customers

The entire
population
of Lahore
can be
divided in
to several
age
groups,
such as
people
below 20,
20-40, 40-
60, 60 and
above.
This
demograph
ic
classificati
on of the
population
clearly
depicts the
fact that a
majority of
the
population
falls in the
age group
of 20-40
and 40-60.
Therefore, it
would be
appropriate
for the
organisation
to target the
people falling
in this age
group. The
customers of
this age group
generally
demand high
quality foods
at an
affordable
price with the
least delivery
time (Zahra et
al., 2016).
Segmentation

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Targeting

 AA & Z’s restaurant will
place it on the low price,
high quality segment.
This is because mainly
the organisation is
addressing or catering
the needs of the middle
class consumers and
students as per their
affordability placing the
business in this segment
will help the
organisation to attract a
huge customer base.
Positioning
Price
Quality
High
Price,
High
Quality
Low
Price,
Low
Quality
High
Price,
Low
Quality
Low
Price,
High
Quality

 AA & Z’s Restaurant will try to address the
customer pains as efficiently as possible. It
effectively implies that effective staffing and
market research will help the organisation to
determine the needs of the customers.
 The employees of the organisation will focus on
serving the customers dedicatedly and politely
(Walker, 2016).
 Foods will be prepared using fresh and high quality
ingredients. This will allow the organisation to
provide good foods at an affordable price.
Market Opportunities

 Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
 Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences, 111(5),
pp.1760-1765.
 Lee, C., Hallak, R. and Sardeshmukh, S.R., 2016. Innovation, entrepreneurship,
and restaurant performance: A higher-order structural model. Tourism
Management, 53, pp.215-228.
 Storey, D.J., 2016. Understanding the small business sector. Routledge.
 Spence, L.J., Frynas, J.G., Muthuri, J.N. and Navare, J. eds., 2018. Research
Handbook on Small Business Social Responsibility: Global Perspectives. Edward
Elgar Publishing.
 Zahra, K., Zafar, T. and Khalid, M., 2016. Marginality, social exclusion, labour force
participation and urban poverty: a case study of Lahore, Pakistan. Pakistan
Development Review, 55(4), pp.521-541.
 Mathe, K., Scott-Halsell, S., Kim, S. and Krawczyk, M., 2017. Psychological capital
in the quick service restaurant industry: a study of unit-level performance. Journal
of Hospitality & Tourism Research, 41(7), pp.823-845.
 Walker, J.R., 2016. Introduction to hospitality. Pearson Higher Ed.
Reference List