Embassy Restaurant Rebranding: Irish Coffee Product Development Plan

Desklib provides past papers and solved assignments. This report details Embassy Restaurant's Irish coffee launch.

Hospitality Management
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Executive Summary
The report has produced a development plan stating competitive advantages of the new
product along with developmental methods used to develop it. Feasibility of new product has
been demonstrated by using accounting and financial schedules. The report has presented
sustainability of new business by introducing its importance in hospitality industry. An
analysis of the factors limiting the development has been included in the study.
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Table of Contents
Chapter 1 – Introduction............................................................................................................4
Chapter 2 – The Development Plan...........................................................................................5
Chapter 3 – Feasibility of the New Product/Service..................................................................9
Chapter 4 – The sustainability of the new product/service......................................................12
Chapter 5 - Factors that limit development of the product/service within the hospitality
industry.....................................................................................................................................15
Chapter 6 – Conclusions..........................................................................................................17
References................................................................................................................................18
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Chapter 1 – Introduction
In the report, a development plan for the Embassy Restaurant will be discussed where a
competitive advantage has been included. In the feasibility of New Service, income
statement, cash inflow, and expenditure of enterprises are discussed. Restaurants wants to sell
juices, tea, pastry in between specific time and it also wants to modify their food menu within
specific time to maintain uniqueness in their business. Digital technology has changed the
demands and needs of people, therefore, the restaurant have to change their service that might
acts as hindrance for its business. Irish coffee is the new product that the restaurant will
launch to improve their profit margin and customer satisfaction rate. Vision statement of the
restaurant is to serve quality food to their potential customers with perfect price to improve
their identity in merchandise market. Mission statement of business is to provide nutritious,
healthy, and fresh food to customers in order to increase their profit margin and identification
in competitive market.
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Chapter 2 – The Development Plan
Overview of the Company
The Embassy restaurant is located in the Natural History Museum. It is a world cuisine
restaurant offering foods and drinks as per the preference of international consumers. Guests
visiting the museum enjoy the events organised in the restaurant. The restaurant is a
rebranding of Central Cafe. The opening hour of the restaurant is from 10.00 am to 11.00 pm.
It serves different types of snacks including tea, coffee, fresh juices, pastry and others to
guests. It allows customers to choose a specific food or drink from a diversified menu, which
is designed to satisfy the taste of each type of customer. The restaurant allows embassies to
organise formal dinner and formal parties for their special guests. Its products have succeeded
in meeting the requirements of consumers from different age categories.
It serves foods and drinks as per the immediate demands of visitors. Snacks, fruit juices and
Coffee are so compelling, as they are of good quality and variants. Some of the popular fruit
juices offered by Embassy include Grape Nectar, Virgin Punch, Cool Kiwi juice, Watermelon
Lychee Granita and others. The famous snacks available in Embassy include Banoffee Pie,
Decadent Trifle, Gingerbread cake, Nutmeg Custard Tarts and others. People coming to the
museum do not get different variants of snacks and drinks. Therefore, these products are
being served to meet the specific needs of visitors.
The problem/need/opportunity
Embassy has identified several problems and needs in the market. Firstly, the restaurant is
located between Kensington Garden and Natural History Museum. Most of the people visit
this place to enjoy the scenic beauty of Kensington Garden and gain knowledge on the
natural history of London. When people visit this area, they search for restaurants and cafes
to have some food and spend quality time. Numerous restaurants have been developed around
these tourist attractions. Visitors are not satisfied with the service offered by these
restaurants. Some popular restaurants located near the museum are Raison D’etre, The Trex
Grill, Brompton food market and others. Some visitors are conscious about their health for
which they demand quality beverages.
It is an opportunity for Embassy to provide great customer experience through unique
product offerings. Millions of visitors visit the museum every year. The restaurant can have
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high earnings by focusing on the needs of domestic and international visitors. It is the right
time for coming up with a solution, as the number of negative reviews about the nearby
coffee shops and restaurants have increased in recent months. This may reduce the number of
tourists visiting museum and Natural Park. This can have adverse impact on the local
economy. Therefore, it is the suitable time to attract more national and international visitors
by introducing a noticeable product. One scenario can be cited here, where the owner comes
across the needs of visitors. Once, a group of visitors do not find their desired coffee. Their
reviews on the nearby cafes are negative. This encourages the owner to come with a quality
coffee drink.
The solution
In order to match the consumer needs, Embassy is going to introduce Irish coffee. The
beverage will be one of the finest drinks that aim to exceed consumer expectations.
Figure 1: Irish coffee
(Source: Created by the learner)
The beverage consisted of sugar, Irish whiskey, hot coffee and topped with cream (Machado
et al., 2018). The coffee can be Caffe Americano or a type of filter coffee prepared using a
coffee capsule. The barriers entry created by the new product is its quality ingredients that
other firms may not use due to the involvement of more cost. The beverage works well by
giving relaxation to visitors in the summer season. It has some health benefits such as
reduced risk of heart disease, diabetes, stroke and others (Santos et al., 2016).
Benefit table
Features Benefits
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Numerous variants Consumers can get coffee as per their mood
and preference. They will show a willingness
to try different variants that shall increase the
popularity of Irish Coffee.
Cost saving Guests with all income groups can avail this
due to its cost-effectiveness.
Quality ingredients It provides guests with an authentic
experience.
Attractive look As the coffee is topped with cream, it can
attract numerous consumers.
Table 1: Benefits of Irish coffee
(Source: Created by the learner)
The combination of sugar, black coffee, Irish whiskey, and whipped cream gives a good
texture to the beverage. The proven smooth testing drink can give a unique experience to
tourists.
Competitive advantage
The cream added on the drink produces the consistency of the drink. Health conscious people
can have this without sugar. If consumers do not want the sugar to be added, the restaurant
can serve by settling cream in the bottom of the drink instead of floating on top.
Product Advantages Disadvantages
Cappuccino It consists of steamed,
coffee and chocolate
powders that taste sweeter.
Its price is too high as
compared to other variants.
Espresso It contains the purest and
finest coffee.
Finding espresso in all
seasons is difficult.
Long Black It contains more cream as
compared to cappuccino.
It does not taste good if
preserved for long hours.
Embassy’s Irish Coffee Health conscious consumers
can have this coffee due to
less sugar content and
quality ingredients.
It takes a long time for
preparation.
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Table 2: Competitive advantage
(Source: Created by the learner)
Sales projection (per day) of each product category is demonstrated through the following
graph.
Cappuccino Espresso Long Black Embassy’s Irish
Coffee
34
27
15
41
Projected sales value
Figure 2: Projected sales value
Analysis: The charts depict that the Embassy’s Irish coffee shall provide maximum revenue
to the company per day. The new coffee has numerous competitive advantages such as
variants, cost effectiveness, quality ingredients and attractive look. The combination of nice
ingredients gives an attractive look to the beverage. Therefore, customers shall purchase Irish
coffee over the competitors’ products.
Competitive landscape
Product Numerous
variants
Cost saving Quality
ingredients
Attractive
look
Embassy’s Irish
Coffee




Long Black

Espresso


Cappuccino


Table 3: Competitive landscape
(Source: Created by the learner)
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Chapter 3 – Feasibility of the New Product/Service
Company’s overall business strategy of The Embassy is to create an innovative environment
for their customers so that they can enjoy their leisure precisely. Additionally, management
team decorates the restaurant in such a way so that it can become good place for formal
dinners and private parties. According to Tantalo and Priem (2016), digital technology allows
a restaurant to improve their communication with all their stakeholders and it allows them to
vivid idea about recommendation of customers. In case of The Embassy Restaurant,
marketing executives will sell their product through online or internet and it will
automatically enhance their promotional activities and identification in recent market. This
organisation will generate revenue after preparing effective menu and time for serving
different foods. Restaurant will serve tea, juices, and types of pastries in between 10 am to
12.00 pm. Three fixed course menu will be fixed in menu and it depends on location to attract
more users from community. Flyverbom (2019) opine that sale cycle focuses on six steps to
meet recent demands of their potential customers that are prospecting, preparation, innovative
serving approach, presentation of food, handling feedbacks and systematic modification to fix
up the issues. Sale cycle of company’s service will be depends on preparation of menu,
handling feedback and modify the menu in order to meet recent demand of community.
In go to plan strategy, management team modifies their cuisine menu where their potential
customers can eat lunch and can discover new variety of food in every month. It has been
seen that pricing model allows restaurant to select appropriate price after conducting research
of economical condition of users and competitors’ strategy. Gross margin of food cost of the
restaurant will be in between £15 - £25. Potential customers who eat in every month will get
20% discount from their final bill and it will enhance their users’ satisfaction level. Office
workers, students, and homemakers are the main customers that the restaurant will be
focusing to increase their identity in merchandise community. Commitment of the rebranding
restaurant is their customers will face outstanding experience and it will create a positive
impact on their identity. Loyalty can be improved through forced commitments and it will
automatically highlight their service in an outstanding manner (Coibion et al. 2015). It has
been seen that zoning location is essential to decrease the chance of regulatory issues and it
guides an enterprise to properly handle additional expenses and other issues precisely.
Customers demand will be fulfilled by restaurant by modifying their products and services in
order to meet gap in between their service and customers demand.
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Menu of the restaurant will be changed monthly and three main course menus will be added
depend on local people to improve their recognition in current competitive market.
Company’s leadership team are mentioned are as follows:
Name Position Experience (years)
Joan Collis Manager 3
Tim Crook Captain 5
Jenifer Elba Marketing head 4
Tom Smith Financial head 5
Table 3: Company’s leadership team
(Source: learner)
Name Summary of experience
John Brown 13 years
Anderson 20 years
Table 4: Company directors’ and advisors
(Source: learner)
1-year financial projection
1 2 3 4
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Options
Cash balance
Net income
Revenue rate
Figure 3: Financial projection
(Source: learner)
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Income statement: in this statement, company’s administrative expenses, gross profit,
selling cost and other expenses will be added to understand net profit of the restaurant in
logical manner.
Cash flow statement: Cash flow operations deal with investing, operating, and financial
activities of business to tackle financial issues systematically.
Balance sheet: in this sheet, liabilities, assets, and capital of business are calculated in order
to calculate the restaurant expenditure and income rate.
Loan schedule: Restaurants loan payments, amount of interest are added in this schedule to
understand debts of restaurant at present.
Depreciation schedule: it breaks down the organisation’s long-term assets depreciation and
calculates depreciation expenses over the useful cost.
Funding: In case of funding, restaurant shareholders’ gives funds, increasing profit for
developing business capital and other stakeholders contribution to improve revenue rate of
restaurant.
The company made profit $500 after selling food, in advertisement and promotional activity
or in contract, the restaurant made $450 profit. Therefore, it can be concluded that while
rebranding the restaurant, higher team should focus on food quality and event management to
improve their recognition and revenue rate. The restaurant will be financed through bank,
shareholders contract, and debt.
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Chapter 4 – The sustainability of the new product/service
This individual study focuses on the rebranding process of The Embassy. This study will
focus on how it will present Irish coffee, into the market to draw in new consumers. This
world cuisine restaurant provides various drinks, snacks and other food items. The enterprise
will try to implement new marketing techniques through which the visibility of the company
will be raised and higher revenue will be brought in (Ginn, 2018).
Market size
The estimated market size of coffee drinkers in United Kingdom is estimated to be around
50,000 consumers and the market is valued at over 2.2 billion.
Growth rate
The current growth rate of this industry is estimated to be around 37% as per 2011 collected
and is expected to rise about 10.4% (Blanchflower and Machin, 2016).
Trends
Current there is a trend in the market for various types of coffee that consumer’s desire. Some
of the types of coffee that are most renowned include Brazilian coffee, Mexican coffee, Irish
coffee and others. In this study, Irish coffee has been chosen (El-Sohemy, 2019).
Maturity
This market has not yet maturity, as there is a large base of consumer that is untapped
through which business cafes can earn revenue
Market challenges
Some of the challenges, which can be seen in the market include:
 Ineffectiveness of marketing techniques
 The restaurant not being able to find the right balance between taste and preferences
 Inability for the business to raise funds from the financial market
Segments served
The Embassy serves the young and working class segment in the market, as they are more
inclined towards drinking coffee in restaurants.
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