PHD301: Planning and Designing Hospitality Venues - Blue Ocean Report

This report presents a comprehensive business case analysis for the Blue Ocean Restaurant, a proposed a la carte dining establishment located near Manly Beach. The analysis begins with an executive summary outlining the business opportunity and then delves into a detailed examination of the restaurant's strengths, weaknesses, opportunities, and threats (SWOT) and a PESTLE analysis of its competitors. The report identifies the required management and employee skill sets, discusses venue layout and design implications, and conducts a thorough feasibility study encompassing market analysis, competitor analysis, Porter's Five Forces, and supply chain management. Planning processes for sustainability, a financial analysis of the restaurant and its competitors, and an evaluation of stakeholders are also included. The report concludes with a description of the venue concept and recommendations for key changes to be implemented, along with a visual representation of the venue's design.

Blue Ocean restaurant
University
Word count

Executive summary
An opportunity has been found out next to the coastline of Stuart Street where a restaurant can be
made to cater to drinking and eating needs of the local population. Along with the local
population, tourists are attracted to the pleasant climate of surroundings due to sea effect. This
makes the venue a strategically located area which can be used for business activities related to
the hospitality industry. An a la carte based restaurant can be build up in the area due to its high
potential and less number of threats like less competition, the difficulty for newbies to enter the
market, etc. first of all an introduction is provided. Then SWOT and PESTLE analysis is done to
assess the situation of competitors in market. Then skill requirements required for management
and employees are mentioned. Venue layout and design implications have been provided to
provide an insight over the topic.
Then, the feasibility study is done from the perspective of Porter’s five forces, competitive
anlaysis, market feasibility and supply and chain management. Planning process for
sustainability is provided along with financial analysis of the mentioned restaurant as well as
competitors. After this, the stakeholders are evaluated and key changes are mentioned to be
done. Finally venue concept is described and suitable conclusion is drawn.

Contents
Introduction.................................................................................................................................. 3
SWOT analysis of Competitors....................................................................................................5
PESTEL analysis of competitors..................................................................................................5
Management/employee skill set requirements.............................................................................6
Venue layout and design implications..........................................................................................7
Feasibility study........................................................................................................................... 7
Market feasibility...................................................................................................................... 8
Competitors’ analysis...............................................................................................................8
Porter’s five forces................................................................................................................... 8
Suppliers and supply chain......................................................................................................9
Planning processes for sustainability...........................................................................................9
Financial analysis...................................................................................................................... 10
Evaluation of stakeholders (suppliers) to be contracted for implementation...............................11
Key changes to be implemented................................................................................................11
Venue concept........................................................................................................................... 12
Conclusion................................................................................................................................. 13
References................................................................................................................................... 14

Introduction
Background-
There is an opportunity to develop a restaurant next to the coastline at Stuart street Manly beach.
The restaurant already presents there is making good business. This restaurant named Blue
Ocean restaurant is considered in this paper. The restaurant serves the food and drinks on ala
carte basis. The restaurant remains open from 8 AM to 10 PM from Monday to Thursday while it
is opened from 10 AM to 12 AM on rest of days. The per-person cost for the food and drink
ranges from 35$- 65$ with seats for 100 customers. The restaurant is located near the beautiful
beach so targeted population is from a diverse background. Locals, tourists, elderly and young all
are targeted as per the policy of the restaurant. The restaurant generates revenue of $373,100 per
month.
Aim – This report aims to present a suitable venue for a business case associated with hospitality
industry that leads to inculcating best practices related to the sector.
Scope- the scope of the study is limited to venue design and considerations associated with it.
The report in no way conducts any study or review from the perspective of the hospitality
industry. The report only presents a business case analysis of an organization in the hospitality
industry (Leeflang, Verhoef, Dahlström, & Freundt, 2014).
Type of licenses required
There is needed to take permission to build infrastructure in the ecologically fragile area. Along
with this, the license needs to be taken to conduct business activities at the venue which has the

potential to harm seaborne organisms (Fierro, Arbelaez, & Gavilanez, 2017). So there is need to
have license related to building infrastructure at ecologically fragile area. Another license is to
conduct general business at beach so as to comply with all business related laws. There is needed
to take permission from beach authorities as well so as to serve the tourists visiting there. Along
with this Anti-money laundering/ counterterrorism financing (AML/CTF) laws of AUSTRAC
have to be complied with
SWOT analysis of Competitors (Bendle & Wang, 2017)
Strengths
 Knowledge in market
 Diversity management
 No controversy
Opportunities
 Expanding market
 Cultural assimilation
 Absence of major rival
Weaknesses
 Not high quality food and drink served
 Cyclical and seasonal pattern of
customers’ arrival
 Financial weaknesses
Threats
 Economic turmoil in world economy
 Ban on tourists arrival due to
environmental concerns on beach
 Political instability

Management/employee skill set requirements
Management should have adequate leadership qualities to cater to the demands and expectations
of staff and customers. There must be a grievance redressal mechanism to address the issues
concerning staff. Diversity management strategy should cater to the needs of staff hired from
various backgrounds. Cultural values of each employee must be sacred for any other employee
or senior management (Kannan & Li, 2017).
The employees should have adequate knowledge regarding the hospitality industry with major
ideas related to food and beverages to be served to customers. The chief chef and all other
persons associated with cooking must have experience and knowledge to make different cuisines
as per the order made by the customers. Another major skill required to be present in serving
staff is plate representation with eye-catching dishes leading to watery mouth. But, it is to be
kept in mind that certain patients are allergic to particular products like patients with celiac
disease are allergic to gluten (Pradhan, Nigam, & Tiwari, 2018). So the customers must be
served based on their medical and economic needs. For example, patients with Coeliac disease
should not be served sourdough which is gluten-containing food. Similarly, the medical history
of each customer must be taken to prevent any ill-effect for the customer and legal complications
for the restaurant.
Along with these considerations, there is a need for skills to serve food and drink as per culture,
religion, and ethnicity like pork is not eaten by Muslims while beef is not eaten by Hindus. These
skills are necessary to make customers satisfied with the services along with the supply of
quality food and drinks (alcoholic and non-alcoholic beverages) (Guitart, Gonzalez, &
Stremersch, 2018).

Venue layout and design implications
Venue layout and design have major bearings on the marketing of products and services of the
restaurants (Hudson, Huang, Roth, & Madden, 2016). Adequate venue plan and design will
market the products in a better manner in comparison to projects executed without any venue
layout and design. It has been claimed by various scholars that the priority for tourists while
planning adventurous or holiday trip is the venue and design (Ramaswamy & Ozcan, 2016).
Tourists plan the location of their travel as per infrastructure and services made available by the
organization. Thus, Venue layout and design have implications on marketing leading to satisfied
customers (Guitart, Gonzalez, & Stremersch, 2018).
Feasibility study
This entails assessing the feasibility of the report to be presented in this paper. The study is
feasible as it examines one of the most common considerations of hospitality industry leading to
providing better insight over the topic (Sargent, 2016). The study caters to need of dearth of
researches conducted on venue and design aspect of the hospitality industry. The study is
feasible from the perspective of cut-throat competition in the globalized world which makes it
imperative to consider venue and design related to services to be provided to customers.
Feasibility study makes it imperative to consider venue and design from various perspectives as
per the need of the customer (Saboo, Kumar, & Ramani, 2016).

Market feasibility
The beautiful location in Sydney with sea view makes the restaurant viable from market
perspective. Expanding market is there with adequate demand due to the fact that customers are
looking for a place for dining. Along with this, the high quality food and drinks will be provided
which will attract the customers. The market belongs to diverse background with different
culture and ethnic origin. This makes the customer understanding complex but the potential of
cultural values can be harnessed to expand the market reach of the restaurant. Tourists arrival
from foreign countries makes the market wide with great potential from the perspective of
cultural values.
Tourists are from good economic background that makes the market flexible with different needs
to be met by good quality food and drinks along with the best services (Pradhan, Nigam, &
Tiwari, 2018).
Competitors’ analysis
They serve poor quality food for which charges are more than reasonable. Though they are
popular to customers, they have sketchy menu. Moreover, the food supplied is not always fresh
that is overpriced. Whitewater restaurant and the herring room are two major competitors at the
place. Both lack quality food and services which in turn affect their business.
As per SWOT analysis, the competitors have no major controversy associated with them with
sound knowledge and diversity management. Expanding market and cultural assimilation leads
to good opportunities for competitors. But they have certain weaknesses as well like poor
quality food and services with threats like political instability and uncertain economic conditions
(Kannan & Li, 2017). The uncertain world economic order has led to many speculations about
world economy which in turn is impacting tourists and business corporations. Political instability

is leading to major dent over image of the country with prospects on national economy that
impacts business.
Porter’s five forces
1. The bargaining power of customer can be a potent risk for which the food charged at
reasonable amount will be provided to customers by providing alternate dishes. The
quality food is not provided by the customers which makes Blue Ocean feasible option.
Providing alternate food dishes may reduce the intensity of bargaining from customers
(Fierro, Arbelaez, & Gavilanez, 2017).
2. There is no major threat of substitution as there are few grocery stores in area. The best
possible answer to this solution will be implementation of VIP customer services.
Because of less number of stores related to this sector, the threat of substitution is less.
Because of expanding market, there is place to accommodate one more business
organization related to hospitality industry (Buchanan, Kelly, & Yeatman, 2017).
3. The threat related to newbies is not high as it is difficult to enter this market. The solution
for the problem posed by new entrants is serving the quality food leading to building of
reputation and image. Quality services, which make the customers happy, will promote
organizational branding as well along with brand positioning (O’Reilly, 2018).
4. Bargaining power of suppliers is also not a major threat. The restaurant can make
arrangements whereby a contract will be signed with suppliers. Suppliers are not in
advantageous position due to less number of grocery stores in the area. The terms and
conditions can be made in favor of restaurant which will keep the restaurant
economically and socially viable.

5. From the perspective of rivalry, there are few restaurants in the area which do not pose
any major threat. To curb the associated problem, the restaurant will do seasonal
promotions. Along with this, there will be organizational branding and brand positioning
among local customers to propagate the mission and vision of the restaurant among all
customers (Skiera, Bayer, & Schöler, 2017). Because of absence of rivalry, the idea of
blue Ocean restaurant is feasible with sound management.
Positive environment impact
The solar technology has to be used with minimum use of food leading to less wastage.
This will reduce the carbon footprint of restaurant that will in turn provide support from
environment conservationists. This will generate goodwill for the restaurant along with better
diversity management. This will lead to increase in the number of customers from diverse
background generating brand image (Sargent, 2016).
The environmental problems have started gaining attention in international community,
especially after Paris agreement. Though, the USA has moved out of it, major powers of
pollution are mandated to reduce their carbon emissions as per agreement of Paris deal
(Fulgoni & Lella, 2014).
Positive Social impact
Socially, the impact will be good among local population and tourists due to friendly
behaviour. This will lead to cultural assimilation and diversity management. The
environment-friendly products and services will lead to good social impact as environment-
friendly products have been gaining ground due to increased awareness. The extreme

climates and associated changes have led to generation of concern among international
community, especially low lying countries which are more vulnerable to disasters associated
with climate change (Yasmin, Tasneem, & Fatema, 2015). The vulnerable populations of
third world countries are socially against the businesses which generate more waste and have
greater carbon footprint. Cooking through solar system will also save natural resources
leading to smart preparation of food. This will increase productivity leading to less employee
turnover with employee satisfaction leading to good social impact.
Suppliers and supply chain
 Victor Churchill for Beef and Lamb
 Meatsmith for chicken, pork and others
 Claudio’s and Sydney fresh seafood
 Nisbets catering equipment for table cloth and napkin
 Harris farm market
Planning processes for sustainability
Planning is needed for the sustainability of the business in the competing world. Without
planning, the organization cannot strive to work as per the vision and mission of the organization
(Fulgoni & Lella, 2014). The goals cannot be achieved without a preplanned approach as there
will be no indicators to measure the performance without the presence of a suitable plan. Aims
and objectives of an organization are intricately related to the planning of major operations
related to the organization (Stephen, 2015). Planning ensures synergy and coordination among
employees with better leadership management skills among senior management. Planning
ensures praise and rewards to be given for the concerned individual for his or her exemplary
performance. Without planning, there cannot be any assessment of performances of employees

leading to employee turnover especially when employee attraction and retention have become
major issues of concern in every major sector of the economy (Yasmin, Tasneem, & Fatema,
2015).
Financial analysis
As per the financial analysis, the restaurant has sound fiscal health prospects with an average
daily sale of revenue equal to $1750. This computes the monthly income at 49000$. Thus the
restaurant is in a financial position to implement the change associated with venue and design.
The fiscal health of the restaurant makes it competitively ahead of its rivals (Edmiston, 2015).
Therefore, there is no major rival of the restaurant as it is operating as a sole entity in the town.
The quality of foods and drinks supplied by the restaurant are very high which rivals cannot
compete easily. This leads to better prospects for growth and better chances to earn a large
amount of profit in the future (Saboo, Kumar, & Ramani, 2016).
But the USA-China trade war decreasing the bright chances of growth leading to major
percussions on global economy, as mentioned above. This may lead to economic crisis in every
superpower leading to grim chances to solve the problem in near future. Moreover, the USA has
moved out of Paris agreement which has placed onus on other superpowers to consider the issue
of climate change from a new perspective (Stephen, 2015). The Paris agreement has placed
limitations for greenhouse gases to be released by each country, which has implications for
business sector also.