Analysis of 64 Degree Restaurant Business Strategies and Trends

This report provides a comprehensive business analysis of 64 Degree Restaurant, a UK-based establishment known for its unique culinary style. The report begins by examining the trends within the UK restaurant sector, including customer expenditure, the impact of the COVID-19 pandemic, and evolving customer preferences such as healthy eating options and the use of technology. It then analyzes the market structure, identifying it as monopolistic competition, and discusses the restaurant's product and market focus, emphasizing its innovative menu and focus on the Brighton market. The report explores the basis of 64 Degree's current competitive advantage, including changing customer preferences and hygiene factors. Finally, it offers recommendations for building a sustainable competitive advantage, along with crucial implementation actions, focusing on innovation and customer satisfaction to ensure long-term success in the competitive restaurant industry.

Assignment

Contents
INTRODUCTION...............................................................................................................................3
SECTION 1..........................................................................................................................................3
Trends in the environment and market for the sector.........................................................................3
Market structure for the sector...........................................................................................................4
SECTION 2..........................................................................................................................................5
Summary of product and market focus..............................................................................................5
Basis of current competitive advantage.............................................................................................6
Strategic marketing challenges..........................................................................................................7
SECTION 3..........................................................................................................................................8
Recommendation on how to build sustainable competitive advantage in the future..........................8
Implementation actions that will be critical in building competitive advantage................................9
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
The term marketing is not confined with only promotional activities but it undertakes
many other actions such as buying and selling of products. With the evolution of latest
technologies, the process of marketing has become easier as company can connect with its
customers in quick time. Current report is based on 64 Degree is a restaurant independent
operating its business in Brighton, United Kingdom. It is known for its unique style of
preparing and presenting their food items. Restaurant has included different dishes that are
according to the tastes and preferences of customers.
SECTION 1
Trends in the environment and market for the sector
In United Kingdom, the sector of Restaurant industry has gone with a period of
change and growth. This can be evidenced through the customer expenditure on restaurants
and Cafes and this has reached to about 88 billion British pounds in the year 2017. Moreover,
the number of enterprises in the sector of restaurant industry has steadily increased and it is
playing a crucial role in contributing approximately 17.9 billion pounds in the economy of
United Kingdom. Although because of the global Covid-19 pandemic, companies who are
dealing in the restaurant industry are facing issues in increasing their revenues (De Mooij,
2018). Reason behind this is the implementation of social distancing measures by the
regulatory bodies governing in the country. Despite of this if we look at the average industry
growth between 2015-2020 it is recorded around 5.5% (Full-Service Restaurants in the UK –
Market Research Report, 2020). The performance of this industry has influenced the
customers and change in the customer’s preferences can be seen.
Customer’s demands and expectations are changing according to the changing
scenario such as they want to dine in but on their own terms and conditions. Moreover, they
are searching for “healthy eating options” like food that contains low calorie options,
vegetarian or vegan diets, gluten free foods etc., Use of technology is playing a crucial role in
the changing trends. For example: nowadays customers before going to a restaurant
considers the online reviews whether the food and services offers by the restaurant is
appropriate and valuable or not. Therefore, increase in the use of digital technology is
providing companies with both opportunities and the challenges in order to operate their
businesses. For instance: a person wants to go to a restaurant “XYZ” located in some area
thus, with the help of channel visibility like google map, therefore, with the help of this app

the person can locate the place and have the food. Unlike this, with the use of technology
customers can pre-book their orders or can make reservations according to their choices and
preferences. Moreover, it can be said that, the technology has potentially provided with an
opportunity of self-service ordering and payment options.
However, to have a better understanding of the trends in the restaurant industry some
points are mentioned below:
Food Waste: If we see at the current scenario, food waste is the prominent topic because
people and restaurant owners are becoming conscious about not wasting food. Money and
waste of resources is not the only cause but a social element has added upon to this (Keegan,
2017). However, there are applications such as “Too Good to Go” that helps in providing
food to the needy people and to do this, the organisation collaborates with restaurants and
take the extra food and serve the needy people otherwise it would go waste (2019 UK
Restaurant Trends and Predictions, 2019).
Small is Beautiful: Ambience, is playing the crucial role in changing the trends of
customers. Customers are loving the small restaurants located in places that seeks for less
crowd. Moreover, it is providing an opportunity to entrepreneurs who wants to have their
own business like opening up a restaurant.
Authentic Experience Economy: As the income of an individual is increasing so as
the trend of eating out is also increasing. For example: people are seeking out for good
restaurants either within the local area or the countryside during weekends. Thus, restaurants
are doing possible activities for fulfilling the needs and demands of customers and providing
them with authentic experiences in terms of food served.
Healthy Food: According to the current scenario, where a change in the food habits
can be seen as around 8 out of 10 millennials are indulging themselves for having healthy
food or preferring a mix and match balancing healthy diet. Due to this, most of the restaurants
are doing changes in their menus so that it can attract more and more customers. For
example: increase in the demands of gluten free or vegan options.
Market structure for the sector
There are many characteristics that determines the structure of an industry some are
controllable and some or not in the hands of the company who are operating their business.
However, considering the market structure of Food industry, it includes both horizontal: in

which in order to increase the capacity of the firm they purchase other competing companies
(Kotabe and Helsen, 2020). The other structure is vertical structure: in which a company
tends to build relationship with the suppliers, manufacturers, financing etc., Moreover, to be
very precise about the structure of Food industry it has “Monopolistic Competition” which
means there are numerous companies who are operating their businesses in this industry, each
one of them have similar or slightly different products but runs with the same purpose i.e. to
generate more and more revenues by increasing their sales and profitability. For example:
restaurants, serving their foods by using various ingredients in different location however, the
production cost may differ.
On the other aspect, talking about the geographical spread of the product of “64 Degree
Restaurant”, currently they are active in Brighton, London, United Kingdom. Along with this,
they serve food to the nearby areas of Brighton. 64 Degree Restaurant is famous for
presenting food items using fresh and local produce. Moreover, talking about the ambience
they have an industrial-style space with an open kitchen (Lee and Griffith, 2019). With
respect to this, they have won many awards from “Bib Gourmand” by Michelin and also
placed at number one position in the year 2016 and 2017. Further considering the customer
segmentation Restaurant prefers “demographic” segmentation because it enable them in
categorising the customers based on age, income, occupation, family size etc., Therefore, in
their menu, on a regular basis they make changes so that they can standout to the expectations
of every individual who are coming to their restaurant for having best served food.
With the change in course of time, a rise in small, medium and large restaurants have
been seen in United Kingdom in the year 2019. There are around 26,265 restaurants in United
Kingdom who are operating their business. As a result, it is increasing the competition level
and in order to sustain in the market for a longer period of time small restaurants like “64
Degree” it is important to do some other the other thing for grabbing the attention of
maximum number of people. Reason being there are many well established restaurants like
The Bella Italia, which is well established runs in around 90 different locations.
SECTION 2
Summary of product and market focus
In a competitive market, every company are focuses on conducting their activities in
such a way that indicates the implementation of new technology which help them in offering
innovative products. This is the reason that company can easily capture customers attention

towards its offerings. In this regard, innovation in products and services is crucial for
company that assist them in improving the possibilities of attaining competitive advantage
from its competitors and at the same time also contributes in capturing larger market share
(De Mooij, 2019). In organizational context, 64 Degrees is a restaurant that operate their
activities in UK with the hope of generating more and more profitability so that they can
easily sustain in market for longer period of time. The main focus of this restaurant is to offer
new and innovative menu to its customers with the aim of keeping them satisfied. In relation
to 64 Degree Restaurant, it is an independent venture and has a unique style of preparing the
food like customers can have a conversation with the chefs. Another plus point is their menu
feature, in their menu they have incorporated dishes that are innovative and modern which
provides with a wide range of flavours. Restaurant has a variety of food items amongst which
“smoked eel toastie” is the famous product. People use to come to this restaurant to have this
delicious food in the town (Samiee and Chirapanda, 2019). Currently the restaurant is
operating in United Kingdom so their market focus is UK and mainly Brighton. So, their
market focus is limited to this place only but they are trying to expand their business in other
locations of London and the gradually in other parts of the world. This will provide them a
brand recognition and will help them in presenting their own unique style of preparing and
serving food to its customers. The reason behind its success is their ambience which is
modern and has the ability to attract more and more people. Moreover, providing an
opportunity to customers to have a conversation with the chef about how the food is being
prepared. This means customers and literally see how the food is made so the chance of
having a doubt about the hygiene is left over. However, they use fresh ingredients and food
materials in order to prepare their dishes for example: for making smoked eel toastie, they use
the traditional way of giving smoke to the dish.
Basis of current competitive advantage
A contains the values which enables a business to perform better as compare to its
competitors. It also enables the organization to achieve higher profitability compared to other
competitors and strategic management for the company and shareholders. competitive
advantages create higher benefit for a company and its stakeholders due to such attributes or
circumstances. The more durable the value proposition is, the further challenging it is for
rivals to eliminate the edge. The restaurants industry is extremely large. If you don't have a
star chef or a novel kitchen, chances are you'll have problems walking out from the throng of
people. Achieving a competitive advantage requires a detailed analysis of the demographic

groups of the area surrounding and the existence of competing firms. The capacity of a
business to manufacture a service or product more effectively than its rivals, which
contributes to higher profit margins, provides a competitive advantage (Sanclemente-Téllez,
2017). Reasonable customers would prefer the cheaper of the two ideal substitutes offered. In
this regard, 64-degree restaurant is also offer quality food products to its customers as per
their needs and wants so that they can easily satisfied and also get loyal towards the company
and its services as well. As there are some important basis of current competitive advantage
that provide support to company in attaining higher success at market place. This basis can be
understood by following points:
 Change in trends or preferences: It is one of the important bases of current
competitive advantage as frequent change in customer demand may affect the overall
sales and profitability of the company. When company operate their business at global
level, it is crucial to analysis the customers demand as per continuous basis that help
contributes in increasing number of satisfied customers within the company.
 Hygiene factor: For attaining competitive advantage from its rivals, it is significant
for restaurant to maintain hygiene within the environment so that customer get feel
safe and secure as well (Lagat and Frankwick, 2017). In this regard, 64 Degree is also
focus on keeping their environment clean, maintain proper safety measures, use fresh
and quality fruits and vegetable within their menu. With this help of this, they can
easily improve the possibilities of attaining competitive success at market place and
also increase their customers base as well.
 Process: It define how work is going to be done in the restaurant. Without certain
methods, work might become disorganized. Comprehensive restaurant processes
produce stability and certainty inside of your organisation. Positive attitude with
attempt to attain competitive edge. Consistency and productivity accomplished
through routine systematically procedures can turn into a significant wellspring of
economical upper hand since it impacts the quality and outcome result of customers
who consume its quality products and services as per their requirements.
 Standardisation: This type of current competitive basis is also important for business
to enhance their capabilities to accomplish the higher success. It may include various
aspects such as category of menu, price of products and many more. All these are
must be manageable by the 64 Degree so that they can easily improve their customers

base and make them loyal also. This will directly contribute in attaining competitive
success at market place.
Strategic marketing challenges
Marketing is something that makes businesses sell more goods. it's more than that;
it's more about how the potential customers will see their brand and the products and services
that company is offering in market for attaining competitive success. Operating business at
global level is not an easy task for company as it includes huge challenges and issues that
faced by company at the time of implementing their operational activities (Shah, Azhar and
Bhutto, 2019). This is the reason that organization is responsible to analysis the same and
improve their overall performance as well. In context to 64 Degree restaurant, there are
various marketing issues or challenges that faced by restaurant are as follows:
 Increasing international competitions: It is one of the major issues that faced by
company at market place as 64 restaurants face high competition in market place that
may reduce the overall performance of the company. Due to high competition at
global level company may fail in inviting customers towards its services that may put
negative impact over the profitability level and its positive image as well.
 Lack of skilled workforce: To operate their business at competitive market place,
company is required a skilled workforce so that they can easily beat their competitors.
Due to lack of skilled employees, 64 Degree fail in attaining their set targets in market
place. Due to this, restaurant also fail in handling their customers and understanding
their requirements. This put adverse impact over the goodwill of the company at
market place.
 Changing nature of innovation: In market place, change in trends and advancement of
technology may affect the entire business activities in market place (Lasserre, 2017).
In this regard, 64 Degree face this issue because they fail in implementing innovation
within their activities that may reduce the overall productiveness at market place.
SECTION 3
Recommendation on how to build sustainable competitive advantage in the future
It is crucial for company to sustain in market place for longer period of time in which
they can easily enhance their productivity level at global level. The business environment and
culture are very competitive. It has become much simpler and quicker to start up a business,

specifically with solution that allows company to be conducted online and worldwide to gain
customers in international markets.
 Analyse the business and the sections of it. Look for those niche markets that are not
very well served by rivals and that it can be cost effectively approached and marketed
to them.
 Create an insight into how customers want and need maintain a marketing strategy
that captures their interest.
 Recognize their strengths and core competencies are and how can use them in creative
ways to add value to their chosen market.
All these are effective ways that needs to be implement by company so that competitive
advantage can be easily attained and at the same time also improve their profitability level.
Implementation actions that will be critical in building competitive advantage
To gain market advantage, companies must continually concentrate on defining
differentiated product strategies, developing or reshaping core competencies, gaining new
innovations, and accumulating intellectual property, all of which can be used to make a
business profitable in a highly dynamic marketplace. In this regard, 64 Degree restaurant
focus on analysing customers demand before providing them services so that they can
provide them best quality of services and keep them satisfied and loyal. In addition of this,
company is also use differentia strategy that is focus on providing Consumers with something
special, distinctive and unique from the products that their rivals may sell on the marketplace.
The key aim of designing the differentiation strategy is to improve the market advantage.
Such changes in products or services may involve the provision of excellent quality to
customers. If consumers see a service or product as different from other products, customers
are willing to pay more to start receiving these benefits.
CONCLUSION
From the above-mentioned report, it has been concluded that international marketing
is one of the important activities that provide opportunities to company in expanding their
operational activities in an effective manner. In addition of this, there are various trends like
moving towards small restaurant, more concern towards food wastage shifting towards
healthy food eating habits, increase un income leads to increase in living standard of people
and many more. All these are beneficial for company to expand their operations and at the
same time also accomplishing their competitive edge as well. Along with this, there are some

challenges that also faced by company like lack of skilled workforce, high competition in
market and so on. For this, business needs to analysis market trends, customers demand so
that they can easily improve their competitive image at market.

REFERENCES
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