Report on Business Model Innovation for Surya Restaurant's Growth

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This report examines the business model and innovation strategy for Surya Restaurant, an Indian restaurant based in Spain. The restaurant aims to expand globally by introducing herbal cocktails, catering to health-conscious consumers. The report provides an overview of the company, proposes the innovative idea of herbal cocktails, and outlines a Business Model Canvas, including key partners, activities, value proposition, customer relationships, segments, resources, channels, cost structure, and revenue streams. It also details the minimum viable product (MVP) testing methods such as customer interviews, landing pages, A/B tests, and ad campaigns to validate the concept. The report concludes by acknowledging the competitive landscape, including major players like Coca-Cola and PepsiCo, and emphasizes Surya's unique offering of herbal cocktails. The report highlights the potential for Surya Restaurant to capitalize on the growing health beverage market and successfully expand its brand internationally.
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Running Head: BUSINESS MODEL AND INNOVATION
Business Model and Innovation
Name of the Student
Name of the University
Author Note
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1BUSINESS MODEL AND INNOVATION
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Overview of the company........................................................................................................3
Innovative Idea........................................................................................................................3
Surya Tomorrow (Business Model Canvas)............................................................................4
The minimum viable product test............................................................................................5
The Others...............................................................................................................................7
Conclusion.......................................................................................................................................8
Reference...............................................................................................................................10
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2BUSINESS MODEL AND INNOVATION
Introduction
The business industries especially the restaurant industry needs to try out innovation in
their products and services in order to stay on the competitive edge giving tough competition to
the market rivals and at the same time catering to the changing preferences of the customers. For
example, the co –owners of the restaurant named Jump in Toronto incorporated the state-of –the
–art studio in their eatery and experienced million –dollar upgrade in their business. It is with the
installation of the audio visual equipment that they became successful in meeting the needs of
the customers especially the business people. It is stated that the restaurants should either
innovate or be eaten because it is a strong industry and there are already market goliaths existing.
In order to innovate, the restaurant management at first needs to identify which innovations will
have the greatest bottom line impact.
The next step is to establish the budget to implement that idea having designed realistic
timeframe. This report will aim at forming an idea for the innovation of Surya restaurant which
is an Indian restaurant located in Spain. The restaurant is famous for its flavors of Indian street
food and extensive range of cocktails. The restaurant wants to innovate and expand to become
scalable. The restaurant needs a model that can be replicated in many countries if it is to open
outlets at 100 different locations. The report will start by giving an overview of the company and
proposing an introduction of an innovative idea. The report will further proceed with outlining
the Business Model Canvas based on the idea along with the customer relationship campaign.
The report will conclude by describing how to prototype the idea as well as the potential
competitors in the industry.
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3BUSINESS MODEL AND INNOVATION
Discussion
Overview of the company
The Surya restaurant is aimed at bringing the taste of India especially the street food
flavors of Mumbai to Spain. The Chefs of the restaurant are said to have travelled every corner
of India to present an exquisite list of appetizers. The Hindu cuisines are known for their magical
blend of spices and herbs and the exotic flavors are brought about by the restaurant to the
Spanish people as well as the Indians who stay there. The Surya restaurant enables the food
lovers a chance to explore new sensations that every Indian feels travelling on the streets of
Delhi to Mumbai starting with Pani Puri to Vada Pau. It is restaurant that is highly acknowledged
for its fabulous diversity which caters to the tastes of all kinds of customers. The restaurant has
their special ‘tandoor’ because they ensure the home made and artisan flavor in their baked
naans. In order to bring the core Indian flavors, the restaurant is highly promised to the
authenticity of Indian tastes. They prepare all their sauces by home-made process to retain the
spicy, tangy texture of Indian sauces.
Innovative Idea
Since the restaurant is mainly focused on spreading the Indian flavors worldwide s that
people at every corner of the world get to know about the magical mystery behind the taste of
Indian foods, it must be kept intact. The restaurant is also known for its extensive range of
cocktails and as an innovative attempt that would help it to expand successfully too, they can
introduce herbs in their cocktails. When people hear about cocktails, it is likely that the thought
of boozing and sprits/ alcohol comes into minds. The Surya restaurant can change this idea
completely by presenting a new segment of drinks which would neither be solely health drinks
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4BUSINESS MODEL AND INNOVATION
nor be entirely cocktail with alcohol. The restaurant can change the definition of cocktails by
revolutionizing it with the application of health- friendly herbs like mint, rosemary. cilantro,
basil, tarragon and many others. These lillet, lavender, thyme, raspberry, blackberry, lemonade,
hibiki-shiso would serve as winning combinations. Since the government of all countries are
regulating banns on alcohol consumption and that people are themselves becoming extremely
health conscious, this new introduction can function as a market penetrator. Among the
abundance alcohol based cocktails, people of all ages are likely to get driven by the new
combination and the restaurant will subsequently experience success in full-fathom.
Surya Tomorrow (Business Model Canvas)
Key Partners
First of all, the
restaurant must
associate with a
beverage
consultation
services of that
country in which
it wants to enter.
A beverage
consultation
serves by
helping the
creation and
implementation
of beverage
programs so that
consistency and
high quality is
ensured. They
form the base
for the
introduction of
new beverage
products in the
market along
with suggesting
fundamental
Key Activities
The first activity
is to generate
demand in a
country by
promoting the
herbal cocktail
through free trial
attempts. Next,
the sales will be
developed by
knowing the
customer needs
via online
survey methods.
The production
and delivery of
products will be
promoted by
focusing on the
supply chain.
Value
Proposition
The value
proposition of
the company is
to present a
glass of flavor
and health to the
customers
satisfying their
preferences and
demands. The
restaurant is also
aimed at
promoting the
health of people
of all ages by
offering a
refreshing
composition of
herbs and a
small proportion
of wine.
Customer
Relationships
The restaurant
will apply the
‘Get /keep and
grow’ customer
relationship
management
strategy.
Following the
rules of the
strategy the
customer
preferences will
be known by the
social media
campaigns. The
restaurant blog
will enable the
customers to
post their
feedbacks and
reviews. It will
help the Surya
restaurant to
grow based in
the customer
expectations and
Customer
Segments
The Surya
herbal cocktail
will first of all
target the variety
seekers, the
health focused
people, the boost
seekers and the
age of 15- 50
years of age
group. The
variety seekers
welcome what is
new and out of
the track. The
health focused
people will get
attracted
towards it
because they are
highly conscious
of the damage
alcohol does to
the heart and
liver. The
combination will
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5BUSINESS MODEL AND INNOVATION
guide to yield
standard flavors
understanding
the customer
preferences.
Investing on a
beverage
consultation
services would
allow the Surya
restaurant to
build reputation
in many
countries.
Another partner
can be
Macdonald’s
that is a global
snacks company.
People would
love to be served
both of these on
a single platter.
satisfaction. fascinate the
mentioned age
group that
includes both the
youngsters as
well as the mid –
age people.
Key Resources
The key
resources for the
preparation are
the costly and
rare herbs which
are to be used in
the cocktails.
The wine that
will be used will
be the Provencal
wine famous for
its taste and
nutritional
qualities.
Channels
The customers
will be reached
by the help of
different
restaurant
outlets around
the globe. There
will also be
online order
facility of the
new product.
The outlets will
be the most cost
–effective way
for reaching the
target customers.
Cost Structure
Among the costly resources for the
preparation of herbal cocktail are the variety
of wine to be imported from France and the
rare herbs which are not available every time
of the year. Preserving these herbs is a great
task and would cost around 2.65- 3.30 million
dollars a year.
Revenue Streams
The price of the drink will be set according to
the beverage market of the particular country
where the restaurant chooses to expand. It can
be said that whatever will be the cost of the
cocktails, the target customers would be
willing to pay for the health benefit along
with innovative taste the Surya restaurant will
provide them. 60 % of the revenues will be
invested again on the herbal cocktails.
The minimum viable product test
The MVP or the minimum viable product is purposed to check if the end users are
interested towards the innovative step and whether they are liking the new product or not. The
aim of an MVP is to provide a working product that serves the demand and preferences of a
particular group of users. It is also helpful for showcasing business potential. This strategy will
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6BUSINESS MODEL AND INNOVATION
allow the Surya restaurant to have rich learning experience regarding the positive and negative
reaction towards innovation. A deeper knowledge of the customers will enable the restaurant to
get an outline of the market it is willing to enter. It is an effective way to learn about the end
users that would prove useful for future development and success of the enterprise. It can be
tested y the following ways:
Customer Interviews
The customers will be interviewed in order to elicit information regarding the health
issues the herbal cocktail is aiming to solve. The interviews will be rather exploratory, than being
sales pitch for the product. In the interviews, the problems and queries of the customers will be
listed regarding the product by asking the customer about their opinions and perspectives
towards herbal- cocktail. The interviews will serve as gold-mines for actionable information.
Landing Pages
It is a process that will provide opportunity to explain the benefits of the product and it
will also help to test the product value against the market expectations. The landing page is the
first page that appear for the visitors of the site. This is a simple method in which an extra form
is added in between the features page and the sign up page.
A/B Tests
This is a type of test which will be implemented to test the effectiveness of the
modification in the product. It will be based on how the visitors react to the new advancement. It
provides room for comparison with the previous product and enables the customers to determine
which product is better.
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7BUSINESS MODEL AND INNOVATION
Ad Campaigns
The Ad Campaign will serve as a better way to conduct surveys on market validation.
The global platforms like Google and Facebook will allow the Surya restaurant to discover the
target market and run a test to check which flavor appeals which category the most.
The Others
Since the health concerns are all the way spreading and customer are being concerned in
choosing their health drink, various established companies have also on the verge of launching
health- friendly beverage products. Taken for example, the Coca Cola Co. has launched the
Coca- Cola lite, Diet Coke, Coca Cola Zero sugar and others. Hence, it can be said that the
competition is high on this idea. The Surya restaurant must care about the competition because,
there are so many market giants in this industry who are financially and in other ways more
competent and potential. Without concerning about them, their customer base, their strategies,
market grip, it would be difficult for the Surya restaurant to enter the desired market. The three
main competitors in the health beverage industry are Coca Cola, PepsiCo and Dr Pepper.
Notably, these are the carbonated drinks having health –drink version too and cannot provide the
flavors of herbs and wine. The Surya restaurant can make this their strength and keep on
exploring new flavor by composing the herbs in different manner.
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8BUSINESS MODEL AND INNOVATION
Image 1- comparison of Coca Cola, PepsiCo and Dr. Pepper
Source -
Image 2- comparison of Coca Cola, PepsiCo and Dr. Pepper
Source –
Conclusion
Therefore, from the above discussion it can be said that the Surya Restaurant can expand
worldwide by the help of introducing herbal beverages in the industry. The report has well
documented the business model canvas of the innovative idea. The report has also provided the
minimum viable product test that the restaurant must conduct and lastly has provided the
competitors’ analysis of the three main market giant in the beverage industry.
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9BUSINESS MODEL AND INNOVATION
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10BUSINESS MODEL AND INNOVATION
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