Market Research and Analysis for Vegan Businesses

The assignment requires the student to conduct market research and analysis for vegan businesses, providing insights into the competitive landscape, consumer behavior, and business prospects. References from books, journals, and online sources are included to support the analysis.

Unit 27 – Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Background information about inspirational ideas of setting up new business.................1
2. Introduction to business idea..............................................................................................2
3. Analysis of competitive market, failure and success in this industry and ideas for the
growth purpose.......................................................................................................................2
4. Gap analysis, analysis of present situation of restaurant business and of objectives of
business ideas.........................................................................................................................5
5. Market researches for showing viability of business idea and identification of market
potentials.................................................................................................................................7
6. Strengths and weaknesses of the business idea along with its viability and feasibility.....8
7. Opportunities and threats of the business and recommendation for the business............11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurial opportunities can be defined as various situations in which an
entrepreneur can enhance its profits or raise efficiency level of business. This assignment
includes brief evaluation of numerous sources of entrepreneurial innovations and ideas. It also
shows use of different rational business ideas and market gap. Further it includes different
statistics to support the overvcom strategy based on gap analysis along with its interpretation to
appropriately provide them as an evidence of market potential. It describes objectives of
entrepreneurial ideas and evaluation of competitive and market evaluation along with a business
idea regarding its potential customers and targeted audience.
MAIN BODY
1. Background information about inspirational ideas of setting up new business
For setting up an entrepreneurial business, an idea to open a new restaurant on a hill
station Attleborough situated in England, has been identified. This idea of opening the restaurant
has been inspired from various factors (Richardson, 2018). These factors include conversion of
huge number of population into vegan which leads in increasing the demand of vegan restaurants
in all over the world.
Increase in demand in market
Attleborough is a beautiful hill station of UK, which attracts the tourists at the most. It
increases the demand of vegan foods in Attleborough. Further, there is also few numbers of
vegan restaurants at Attleborough, which fails to fulfil all the demands of customers. It enhances
the probability of profit generation by the restaurant.
Recent trends
Further, as per the resent trends, most of the Attleborough population has turned their
preference from non vegan to vegan foods. It is also the biggest factor to inspire the idea of
opening a vegan restaurant idea over there, as it would result in attracting local customers as
well.
Investment
Opening a new restaurant in this location needs less amount of investment and can
provide maximum profit to entrepreneur (Lehmann and Seitz, 2016). In this regard, being a start
up and entrepreneur, it is always a better idea to enter into a restaurant business.
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Self effeciency
Entrepreneurial has done Hotel management course which has enhanced the capability to
effectively manage the restaurant. In addition, it is also a primary goal of entrepreneurial to open
a restaurant at a big level. It is the key motivational factor behind the idea of opeining a
restaurant.
In addition, as at Attleborough, numerous tourists love to spend their holidays. Opening a
restaurant over there will lead in attracting them as well (Here's Why You Should Turn Your
Business Vegan In 2018, 2018). Attraction of number of visitors is a key factor inspirational
factor to open the restaurant.
Number of visitors
In addition, as at Attleborough, numerous tourists love to spend their holidays. Opening a
restaurant over there will lead in attracting them as well (Here's Why You Should Turn Your
Business Vegan In 2018, 2018). Attraction of number of visitors is a key factor inspirational
factor to open the restaurant.
In this regard, by analysing all the above inspirational factors, the entrepreneurial has
decided to open a vegan restaurant at Attleborough, as it will help in generation of huge return
from lower value of investment.
2. Introduction to business idea
Being an entrepreneur, there is an idea to enter into a restaurant business. Restaurant will
sale vegan food. Further, restaurant is going to be open in a hill station of UK namely
Attleborough with a name Springled Food Restaurant.
In recent times, vegan food is in more demand in all over the world. As per the recent
statics 80% of the total population of the world and 60% of the Attleborough population, have
changed their preference from non vegan foods to vegan foods (Wang, 2016). In this way, the
restaurant can generate huge profit. As it will attract most visitors towards its food.
Springled Food restaurant is going to include organic foods in the list of vegan foods. It
will also increase the profitability, as in recent trends, people are becoming more health
conscious.
Restaurants at Attleborough fails to provide quality of hospitality to their consumers
(Owusu-Amankwah, 2016). Springled Food restaurant will focus the hospitality of restaurant as
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well, it would help in providing more customer satisfaction to the consumers and increase the
profitability as well.
In this regard, restaurant will gain a profit of €90 million in first year of the business and
will continuously grow definitely in the future.
3. Analysis of competitive market, failure and success in this industry and ideas for the growth
purpose.
Competitor analysis
Before starting any new business, entrepreneurial need to analyse the strategies and
business of competitors of the market (ALTAŞ, 2017). Competitors directly affect the
profitability of any firm. The Mulberry Tree restaurant is the highest competitor of the Springled
Food restaurant. Its competitive analysis can be done as under:
Basis The Mulberry Tree Springled Food restaurant
Target audience The Mulberry Tree targets all
the vegetarian tourists.
It can target all the tourists by
including vegetarian and non
vegetarian vegan foods in the
menu.
Potential consumers Visitors of Attleborough. Visitors along with the local
customers of Attleborough.
Pricing strategies It offers foods with the
cheapest price.
Springled Food restaurant can
provide some extra discount to
its customers along with the
cheapest price which could
substitute the customers of
Mulberry towards it.
Design of Menu card Menu card has been designed
to give the message of eating
healthy foods to the customers
Menu of Springled Food
restaurant can be designed by
using tradition of
Attleborough. It could catch
the attraction of the customers.
key strategy Restaurant has fast serving Restaurant will give a coupon
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facility (Goethals, 2018).
Which helps it in providing
satisfaction to customers.
to each customer. It will lead
in maintaining patience of
customers and also to give
them a higher amount of
satisfaction.
Key Marketing strategy Mulberry tree advertise itself
by placing hoardings at
different places.
It will also advertise itself by
posting adds on social media
platform along with placing
hoardings everywhere. It will
help in attracting more number
of customers towards it.
Availability of Social media
integration
There is lack of social media
integration by Mulberry Tree
restaurant.
Springled Food restaurant cam
enhance the social media
integration to keep in touch
with its customers via
messages, mails, etc. in would
lead in sustaining the
customers for long time.
Ameance of restaurant It has a great interior including
beautiful colour of walls which
gives message of healthiness
to the customers.
Springled Food restaurant will
place some quotes on the all
the walls of restaurant which
could attract the attention of
customers and make them feel
happy in the restaurant.
Annual sales Approx €200 million Its estimated annual sales is
€90 millions.
Locations of competitors Station road Near white house
Failure and success in the industry
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In recent time, at Attleborough, people have started preferring vegan foods which leads to
continuously increasing the demand of vegan food is. It increases the probability of success of
the industry (Macharia, 2016). At Attleborough, chances of success of the Springled Food
Restaurants are much higher, because, approx 60% of population at Attleborough have changed
their preference from non vegetarian to vegetarian foods.
Cost of organic foods is quite higher in the Attleborough due to lack of harvesting of
organics. (The Problems with the UK's New 'Big Vegan' Industry, 2019). it increases the cost of
preparing organic dish by the restaurant. It may cause the reduction in profit by the Springled
Food restaurant.
High low risk analysis
From the above analysis, it can be said that vegan restaurant industry is at low risk as
cost of dish can be reduced by the restaurant by purchasing a farm and harvest all the raw
ingredients there. It can result in huge reduction in operating cost of business. Apart from the
high level of operating cost, there are numerous opportunities which can be absorbed by the
Springled Food Restaurant and gain maximum profit from the business.
4. Gap analysis, analysis of present situation of restaurant business and of objectives of business
ideas
Gap analysis
Gap analysis is the process of management in they can be analyse and compare the
current performance with the desired performance of the business (Cattani, 2018). It could help
managers in bridging gap between the current status and set performance of the company.
As the Springled Food restaurant has not established yet, managers of it can perform gap
analysis to compare the latest market trends and demands and compare them with the range of
supply which can be provided by it by using its current resources.
Basis Current
position
Standards Gaps Overcome
strategy
Location Near white
house
Customer prefers to go
their nearby
restaurants.
Not each visitor wants
to visit white house
Can open a new
branch near
more popular
place of visitor.
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Variety of
foods
Vegan foods Some people also like
dairy food products.
Menu of restaurant do
not include dairy
foods.
Entrepreneur can
add some dishes
including dairy
foods to provide
more
satisfaction.
Cost of dish
to restaurant
€20-40 per
dish
€15-35 per dish €30-50 per dish It can develop
more strategies
for having better
control over
cost.
Marketing
plans
Advertises
itself by
posting adds
on social
media.
Advertisement by
using the latest
technology.
Can't reach to more
consumers.
It can develop
better
advertising
strategy by
inventing more
funds for this
purpose.
As per the latest market trend analysis, customers prefer to go to those restaurants in
which they can get each type of food under a single roof. Recently Springled Food restaurant is
providing only vegan foods (Schmutz, 2018). Managers can develop a plan to increase the list of
menu and include all kind of foods in it along with vegan foods. It would help it in grabbing
more market share.
Further, currently roof top restaurants are more trending. Its managers should plan to
locate the restaurant at a place where they can open it with roof top facility with beautiful view
all around to attract more customers.
In addition, as per the latest market research, competitors of Springled Food restaurant
are more cost efficient which help them in serving the best quality of food at cheap price
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(Goethals, 2018). On the other hand cost involved in dishes served by Springled Food restaurant
is quite high. In this regard, it managers need to develop strategies like harvesting ingredients at
their own farms, to make it more cost efficient. It would help them in efficiently competing in
the market and enhance its profitability as well.
Business objective
The restaurant is going to be opened with some major objectives like Building restaurant
brand, achieving financial goals, business expansion, development of customer loyalty and
providing excellent food service. All these objectives can be achieved by Springled Food
restaurant by developing the best strategies for it. Making the best usage of its current sources to
develop it with more efficiency.
By comparing the market situations with the current business resource, managers can
determine the need of resources in the firm in order to achieve all the set objectives of it (Fuller,
2016). It can purchase a new farm to reduce its operating cost.
Further, including dairy products in the menu, it can increase the satisfaction level of the
customers. Springled Food restaurant more cost efficient and also increasing its quality of food
to achieve its objective of providing excellent food service to the customers and enhance the
customer loyalty of firm.
5. Market researches for showing viability of business idea and identification of market
potentials
Identification of market potentials
Mainly there are two sources to identify the market potentials for the business i.e.
primary and secondary sources.
Market researches from primary sources
Q.1 What cuisine do you prefer to eat?
1. vegan
2. non vegetarian food
3. Italian food
4. Chinese food
Q.2 What type of food do you prefer?
1. Organic foods
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2. fast and junk foods
Q.3 What Ameance you like in a restaurant?
1. modern
2. traditional
Q. 4 how much amount you want to pay for a vegan meal?
1. €50-70
2. € 30-40
3. € 70-100
4. any cost
Interpretation
The primary research has been done by asking the above questions to 450 people at
Attleborough including visitors. From which, entrepreneur got that people 75% of people prefers
vegan foods and 60% like a peaceful environment in the restaurant. Further, 53% prefers
traditional design in a restaurant and 86% can pay around €50-70 for a vegan meal.
In this regard, entrepreneur has decided to open a vegan restaurant which would cost
approx €50-90 per meal to a consumer.
Market researches from secondary sources
As per the secondary sources, restaurant businesses are highly profitable business in a
tourist place (Wright, 2018). Most of the people love to eat foods while travelling to enhance
their experiences. It results in increase in probability of success of the restaurant businesses
there.
The sales of vegan food restaurants has been increased by 10.3% in UK comparing to
recent past statistics. It increases the probability of huge sales of the vegan restaurant business.
Further, as per the research, at Attleborough, 40 restaurants was opened in last 4 years from
which 30 have achieved enough growth in the market.
As per the current market research, people nowadays likes to eat vegan foods over other
foods (Marketing research for restaurant and food service companies, 2018). On the other hand,
at Attleborough, there are not sufficient number of vegan restaurants to fulfil the demand of
food.
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There is also a huge increment in the success rate of vegan restaurants. Along with it
there is also approximately 13% increase in the number of restaurants which have added vegan
foods in their menu. It has lead in increasing the competition in the market.
Viability of business idea
In this way, a vegan restaurant will provide a sufficient amount of profit. There is also
chances of increase in number of sales by the business due to lack of supply of the food in the
market. Further, the success rate of restaurants at Attleborough is also high. All these enhances
the probability of success of Springled Food restaurant and viability of the business idea as well.
6. Strengths and weaknesses of the business idea along with its viability and feasibility
The success of the Spangled Food restaurants can be estimated through analysing its
budgeted cash flows.
Estimated cash flow statement
Particula
rs
Initial
invest
ment
Janu
ary
Febru
ary
Marc
h April
Ma
y
Jun
e
Jul
y
Augus
t
Sept
emb
er
Octo
ber
Nove
mber
Decem
ber
Sales of
food
Number
of
consumers
2800
0 30800
3388
0
3726
8
409
95
450
94
496
04 54564
6002
0
6602
3 72625 79887
Average
cost 38 38 38 38 38 38 38 38 38 38 38 38
Total
revenue
from food
1065
167
11716
83
1288
852
1417
737
155
951
1
171
546
2
188
700
8
20757
08
2283
279
2511
607
27627
68
303904
5
Sale of
beverages
Number
of
consumers
3200
0 40000
4200
0
4410
0
463
05
486
20.2
5
510
51.2
625
53603.
82562
5
5628
4.01
6906
25
5909
8.217
7515
625
62053
.1286
39140
6
65155.
785071
0977
9

Average
cost 14 14 14 14 14 14 14 14 14 14 14 14
Total
revenue
from
beverages
4403
20
55040
0
5779
20
6068
16
637
157
669
015
702
465
73758
9
7744
68
8131
91
85385
1 896544
Total
revenue
(cash
inflow)
1505
487
17220
83
1866
772
2024
553
219
666
7
238
447
6
258
947
3
28132
97
3057
747
3324
799
36166
19
393558
8
Expense
Accommo
dation 15000 0 0 0 1000 0 0 0 200 0 0 700 0
Machiner
y 700 0 500 0 0 900 0 700 0 600 0 250 0
Kitchen
equipment
s 500 400 250 200 350 400 100 200 150 750 500 400 300
Salaries to
staff 2000 2000 2000 2000
200
0
200
0
200
0 2000 2000 2000 2000 2000
Supplier
commissi
on 3000 2500 2200 4500
400
0
300
0
250
0 2600 3200 3500 4000 4200
Advertise
ment 400 400 400 400 400 400 400 400 400 400 400 400
Other
expenses 1200 1400 1400 1000 800 700
120
0 1300 1400 600 700 800
Total
expenses
16200 7000 7050 6200 9250 850
0
620
0
700
0
6650 8350 7000 8450 7700
10

(cash
outflow)
Net cash
flow 16200
1498
487
17150
33
1860
572
2015
303
218
816
7
237
827
6
258
247
3
28066
47
3049
397
3317
799
36081
69
392788
8
Loan 90000
Grant 50000
Owner's
capital 10000
Opening
balance
of cash
15000
0
1662
00
16646
87
3379
720
5240
292
725
559
5
944
376
2
118
220
38
14404
511
1721
1158
2026
0556
23578
354
271865
23
Closing
balance
of cash
16620
0
1664
687
33797
20
5240
292
7255
595
944
376
2
118
220
38
144
045
11
17211
158
2026
0556
2357
8354
27186
523
311144
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Viability
From the above research and estimation of cash flows in the restaurant, it can be stated
that business idea to open a Vegan restaurant is viable and feasible as well. It is providing a huge
market share in the future. Further, by opening Springled Food, entrepreneur can earn a range of
cash inflow from its business.
Straightens Weaknesses
 Pricing structure
 Variety of food
 Location of restaurant
 High profitability in market
 Cost inefficiency
 No experience
 Less capital investment
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7. Opportunities of the business and recommendation for the business
Opportunities
 Enhancement of preference of vegan food over others.
 Increase in concern of population towards their health
 Development of strong inventory management.
Competitive analysis
By analysing the business strategies and plans, it has been identified that, restaurants of
Attleborough fails to provide a quality of hospitality services to the customers. It results in lack
of satisfaction to their customers (Ristic, 2019). Further, due to lack of resources, operating costs
of the restaurants are also quite high which reduces the profit earning capacity of the food
industry.
In this regard, to avoid these problems in Springled Food restaurant, entrepreneur will
have major focus over providing hospitality services to the customers. In addition, it will also
invest money in purchasing a farm for the harvesting of ingredient purpose, which would lead in
reduction of operating cost of the restaurant.
Recommendation
From the analysis of above business ideas, its strengths, weaknesses, various
opportunities of market following points can be recommend to the entrepreneur:
 It should increase its managerial capacity to control to cost of the restaurant. As it would
help it in reducing the price of its food and increase its quality as well.
 In addition, it should addition the number of varieties in its menu in order to provide all
kinds of food under one roof to the customers. It would help Springled Food restaurant
in enhancing its strength and profitability as well.
 It should invest a sum in purchasing a farm for harvesting purpose, it will lead in
reducing the operating cost of business and making the restaurant more cost effficient.
With the help of adopting these recommendations, Springled Food restaurant can achieve
its objectives and goals easily in the near future. It will also lead in the business expansion and
grabbing more market share in the competitive market.
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CONCLUSION
From the above study it can be concluded that, opening a restaurant in Attleborough can
provide a huge return to the entrepreneurial. The business includes lower level of risk. In this
regard being a start up company, the idea of opening restaurant can increase the amount of return
from the investment of fund. Further, from the recent market research, it has been analysed that
population is more preferring the vegan foods. Therefore, vegan restaurant will have greater
opportunity to grow in the market. Springled Food restaurant has decided to open the restaurant
in Attleborough which is the most beautiful place of UK and there are a continuos increase in
demand of the vegan and organic foods. It will result in attracting more tourists towards the
restaurant. In addition, recent market statistics has also shown that growth rate of vegan
restaurant is increasing day by day as well. If the business adopts all the recommendations in the
future, it could grow in the market and could get the expansion at the highest along with the
highest profitability.
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REFERENCES
Books and Journals
ALTAŞ, A., 2017. Vegetarianism and Veganism: Current Situation in Turkey in the Light of
Examples in the World. Journal of Tourism and Gastronomy Studies. 403. p.421.
Cattani, G. and et.al., 2018. Competitive sensemaking in value creation and capture. Strategy
Science. 3(4). pp.632-657.
Fuller, J., 2016. The cultural creation of affect amongst vegan consumers: An ethnographic
analysis of online consumption communities.
Goethals, M., 2018. BUSINESS PROSPECTS OF THE FIRST VEGAN PASTRY IN
LUXEMBOURG: Market Research, Risk Analysis & Concept Creation.
Lehmann, E. E. and Seitz, N., 2016. Creativity and Entrepreneurship: Culture, Subculture, and
New Venture Creation.
Macharia, J. and et.al., 2016, November. Connecting farmers to high value markets: a case study
of smallholder vegetable growers in Ntcheu District, Malawi. In International Symposia
on Tropical and Temperate Horticulture-ISTTH2016 .1205 .(pp. 165-178).
Owusu-Amankwah, G. and et.al., 2016. Restaurant tax feasibility: determinants of restaurant
threshold price. International Journal of Hospitality and Event Management. 1(4).
pp.333-354.
Richardson, N., 2018. Entrepreneurial insights into sustainable marketing: A case study of UK
music festivals. Strategic Change. 27(6). pp.559-570.
Ristic, R. and et.al., 2019. Wine-related aromas for different seasons and occasions: Hedonic and
emotional responses of wine consumers from Australia, UK and USA. Food Quality and
Preference. 71. pp.250-260.
Schmutz, U. and et.al., 2018. Sustainability impact assessments of different urban short food
supply chains: examples from London, UK. Renewable Agriculture and Food
Systems. 33(6). pp.518-529.
Wang, Y., 2016. Diet, Lifestyle, Ideology: Vegetarians in Modern Beijing.
Wright, L., 2018. Vegans in the Interregnum: The Cultural Moment of an Enmeshed Theory.
In Thinking Veganism in Literature and Culture (pp. 27-54). Palgrave Macmillan, Cham.
Online
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Marketing research for restaurant and food service companies. 2018. [ONLINE] Available
through <http://impactcr.com/consumer-market-research/restaurant-market-
research.php>
Here's Why You Should Turn Your Business Vegan In 2018. 2018. [ONLINE] Available through
<https://www.forbes.com/sites/katrinafox/2017/12/27/heres-why-you-should-turn-your-
business-vegan-in-2018/#298871ea2144>
The Problems with the UK's New 'Big Vegan' Industry. 2019. [ONLINE] Available through
<https://www.vice.com/en_uk/article/qvwxzv/the-problems-with-the-uks-new-big-vegan-
industry>
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