Restaurant Business Success Factors

This assignment analyzes the factors contributing to successful restaurant businesses in Sydney. It examines the importance of providing valuable products, implementing innovative ideas, managing costs effectively, and offering high-quality food and services to attract and retain customers. The analysis considers the competitive landscape and economic conditions influencing the industry.

LITERATURE REVIEW
(“To analyse the market condition and competitors of food and beverage
sector to successfully setup a new restaurant in Sydney: A study on
Jembo restaurant & Cafe” )

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
AIM..................................................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Market condition of food and beverage sector in Sydney......................................................1
Market leaders and main competitors.....................................................................................2
Factors needed to be considered by new restaurant...............................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Current study will review literatures of other authors in order to identify market condition
and competitors in the food industry of Sydney so that new entity can successfully establish its
business in Sydney. Study will critically evaluate the different articles on this topic.
AIM
“To analyse the market condition and competitors of food and beverage sector to successfully
setup a new restaurant in Sydney: A study on Jembo restaurant & Cafe”
Objectives
 To investigate market condition of Food and beverage sector in Sydney
 To identify market leaders and main competitors in food and beverage industry of
Sydney
 To determine factors needed to be considered by new restaurant to successfully enter into
the market
 To find ways through which new Jembo restaurant & Cafe can successfully establish its
business in Sydney
LITERATURE REVIEW
Main concepts
Miglietta, Battisti and Campanella, (2017) study explains that innovation and value
maximization supports new restaurant business to enter into the new market and establish their
business successfully. The study pays attention on innovation practices that are used by other
competitors can support entities in entering into the new market. Rrestaurant business has long-
term success history. Over a period of time, food and beverage industry has grown well. This
sector highly contributes in the development of nation to a great extent. Though this industry is
experiencing high competition in the market, now, it is providing quality services to consumers
that help firms in enhancing satisfaction level of consumers and retaining them in organization
for longer duration. Food and beverage industry highly depends upon the tourism business. This
has given new growth to the firms. Market analysis of industry helps in identifying
attractiveness of market. This reflects evolving opportunities and threats for the new business.
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This is way through which new entity can understand market and make strategies to successfully
establish its business into market.
Food and beverage industry of the Sydney is highly profitable and contributing well in
the economic development of country. Statistical records show that 125.9 billion revenues have
been generated by food industry in the year 2016. Every year, more than 100 billion sales are
generated by this industry and thus, it is considered as the major contributor of economic
development of country. Improving life style of people and developing GDP rate support entities
in earning more revenues and providing high quality services to consumers. Private label growth
and greater health consciousness have supported this industry to grow well. Food and beverage
companies which are running their business in this sector are able to provide delicious and
hygiene food to consumers that make people loyal towards these brands.
Duarte Alonso and Krajsic, (2014) is the article that describes that small business or the
new firm needs to have good knowledge about cost management. In the absence of this they can
not be able to sustain in the market for longer duration. Cost management helps business owners
in conducting operation in new location effectively and generating more revenues.. Political
condition of Sydney is stable and government is providing full support to food business so that
they can grow and contribute well in the development of nation. Government is continuously
making effective legislation, reducing tax rates on some specific food items, improving export
laws, etc. That helps firms in running their business smoothly in the nation. Tax policies and
employment laws are favourable that assist the existing food business to perform well in market.
Economic condition of the Sydney is good as people have lots of job opportunities.
Population like to have some hygienic food now and they are more focused towards their
health. Increasing death rate and diseases have changed minds of consumers and they now prefer
to eat food from restaurant that can provide them high quality hygienic substance so that their
health will remain maintained. Level of education is high in the nation and people are living with
good lifestyle. It reflects new business opportunities for restaurant firm in market. Sydney
licensing related regulations are very strict that create issue for new business to enter into this
nation and establish their firm successfully. In the year 2011-2012, food business has grown by
4.5%. It is 2.1% more as compared to 2010. Increased food demand, improving income sources
and value to high quality products are the recent trends of this industry.
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Lee, Hallak and Sardeshmukh, (2016) study pays attention on factors that help the new
restaurants in gaining success. Human capital factor, competition, experience, demographical
elements etc. are several components are the driving actors of success for the new restaurant.
There are various components that put direct impact on establishment of firm in market
successfully. It is essential for new restaurant to select appropriate location for their store. As
new firms do not have much financial resources so, they cannot spend much amount in
decoration and make it attractive as compared to other restaurant. Thus, it is essential to select an
appropriate location where it can be visible to a large audience. It could be near any mall or in
high street areas. Selection of places put direct impact on the overall success of business unit. If
entity is located at place where it is inconvenient for consumers to go then it affects overall
revenues of firm to a great extent.
Menu designing plays a significant role in the success of new business. It is
essential for the new firm to concentrate more on needs of customers and accordingly, design
menu. If menu is attractive and it is able to meet requirements of consumers then it supports the
new firm to set up their business successfully. Licensing and permitting are most difficult tasks
because before giving licence to new firm, authorities cross check quality of their raw material as
well as existing capability of owner. It is essential for entities to consider all state and federal
requirements and then request for license.
Strength and weakness
Lee, Hallak and Sardeshmukh, (2016) article has concentrated on value maximization
and open innovation. This is the major area of strength that helps the researcher in meeting with
the objective. Scholar has applied multi method design. Individual has involved qualitative and
quantitative both approaches. This has supported in gathering in-depth information about subject
matter. This is the main strong point of the study. In the current study scholar has involved data
of dividend champions firms of US that has supported in identifying their strong points that has
made them successful in the market. In the qualitative approach researcher has adopted open
innovation technique. But involvement of both approaches some time create issue in the
investigation and creates confusion as well. Involvement of big firms into the investigation is the
weakness of the study because it is difficult to identify technique for new restaurants to enter into
the new market. Because these firms are already successful so there is no data about their issues.
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Author has underlined 20 companies and has analysed their data or divided paid strategies. This
was the strong point of article.
Duarte Alonso and Krajsic, (2014) study has strength of involvement of strategies and
content. This has used qualitative analyses tool that was easy to understand. But the major
weakness of this article is ignorance of statistical facts about market condition of food and
beverage industry.
Lee, Hallak and Sardeshmukh, (2016) is the article in which researcher has applied
explore research design. This is the strength of the article because it has supported in exploring
different ideas about the topic in effective manner. But involvement of 198 business for analyses
is too large sample size. That creates confusion in data analyses.
Main findings
Miglietta, Battisti and Campanella, (2017) article found that if new restaurants are able to
provide valuable products to consumers and implement innovative ideas then they can
successfully enter into the new market and can gain profit. Open innovation models helps in
gaining competitive advantage and creates value for the firm.
Duarte Alonso and Krajsic, (2014) found that balancing cost and revenues is important
part for the new restaurant business. If they are able to manage their cost well then they can get
opportunity to enter into the new market. On other hand Lee, Hallak and Sardeshmukh, (2016)
.article found that self efficacy and innovation activities are the leading factors of success. That
can assist the entities to successfully enter into new market and establish their business. It is
found that place does not matter a lot if restaurant is able to provide high quality food and drinks
to its consumers. If company is offering variety of dishes and attractive services to people at
affordable cost then it gains attention of people and make them loyal towards the brand. Quality
of products and services matter a lot (10 factors to consider before entering the restaurant
business, 2015).
CONCLUSION
From the above study it can be concluded that there are huge opportunities for the new
restaurant business to set up their business in Sydney successfully. Though there is high
competition and there are many big firms which are increasing competition in the market,
economic conditions and social preferences are the forces that help the new firm to successfully
enter in food and beverage industry and establish their business.
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REFERENCES
Books and Journals
Miglietta, N., Battisti, E. and Campanella, F., 2017. Value maximization and open innovation in
food and beverage industry: evidence from US market. British Food Journal. 119(11). pp.2477-
2492.
Duarte Alonso, A. and Krajsic, V., 2014. Small restaurant businesses and the importance of
knowledge of cost management: an exploratory study. International Journal of Leisure and
Tourism Marketing. 4(1). pp.31-49.
Lee, C., Hallak, R. and Sardeshmukh, S. R., 2016. Drivers of success in independent restaurants:
A study of the Australian restaurant sector. Journal of Hospitality and Tourism
Management. 29. pp.99-111.
Online
10 factors to consider before entering the restaurant business. 2015. [Online]. Available through
<http://gulfnews.com/guides/life/career/10-factors-to-consider-before-entering-the-
restaurant-business-1.1462019>
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