TM6008 Food and Beverage Management Report: Strategic Analysis

This report provides a comprehensive analysis of Enrika's Restaurant's food and beverage management strategies. It examines the restaurant's strategic structure, focusing on customer-oriented leadership and competitive strategies, including menu engineering and branding. The report applies Porter's Five Forces to assess the restaurant's competitive edge, highlighting low bargaining power of customers and suppliers, and discusses the threats of substitution and new entry. It also explores the strategic plan for expansion, alternative strategies, and the importance of menu engineering. Furthermore, the report covers technological trends, consumer behavior, and branding efforts. It concludes with recommendations for pricing, profitability, and sustainable packaging, aiming to enhance sales, profits, and market reach. The report references various academic sources to support its findings.

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Structure Management Report
Just like any business in the market, Enrika’s Restaurant also has its own strategic
structure. This restaurant’s structure is mainly aimed at addressing the various requirements and
objectives of the restaurant mainly the food and beverage innovation and creation services. The
management of Enrika’s Restaurant has put in place key aspects of strategic food and beverage
management. The other key concept in food and beverage strategic management used by the
restaurant is innovative and customer-oriented leadership competitive strategy. This strategy
entails offering unique foods and beverages whereby all these services are aimed at achieving
customer satisfaction. This strategy has been useful over the operating period of the restaurant as
it has been in a position to gain the loyalty of its customers as well as maintain a large customer
base. Besides, the restaurant has a global nature. This has been achieved by ensuring that the
restaurant offers a wide variety of recipes and beverages most of which are unique hence giving
the company a competitive advantage in the market.
Porters Five Forces Used by Enrika’s Restaurant
Application of strategic and business strategies besides other analytical tools such as
SWOT analysis, PESTEL model, and the Porter's five forces model, is advantageous and
effective at placing the organization at a competitive edge in the industry. This is because it is
through application of these tools that the primary strategic characteristics of the firm’s resources
and capabilities are identified (Domingo, 2018). Enrika’s Restaurant is viewed as one of the top
businesses in the hospitality and tourism industry. Based on the five forces analysis below, it is
evident that the restaurant has a strong competitive edge whilst the bargaining power of
customers is very low. This is one of the aspects that have resulted to increased profitability of
the restaurant. The bargaining power of its suppliers is equally low hence the restaurant is able to

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buy its products at a low price hence reducing production cost. The production cost as compared
to the selling prices of the different foods and beverages is very low hence increased
profitability. The threat of substitution and threat of new entry in the market is low to moderate.
Consequently, there is need for the management of the restaurant to ensure that they make
improvements on their key concepts of strategic food and beverage services in order to remain
strongly competitive.
However, the first five forces of the analysis show that the company needs to reduce the
potential negative effects of substitution and competition by satisfying their customers. The
strengths of the five forces that influence the business of Enrika’s Restaurant include the
competition, the bargaining from the consumers, barging of the supplies of power, threats of
substitution and the threat of new entrants. Based on the porter’s model Enrika’s Restaurant
retains its position partly due to the weaknesses of the new entrants and suppliers. Weaknesses of
these new entrants impose minimal challenges to the Enrika’s Restaurant.
Figure 1: Porters Model

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Continuing with the Strategic Plan
Based on Enrika’s Restaurant strategic plan proposal of a new division, the company
being one of the major restaurants in the area, the expansion of the business by opening of a new
section is a viable proposal since Enrika’s Restaurant will have a competitive advantage in the
market due to the already set brand of the restaurant. The proposal should also spell out
management and advanced planning which is also an essential strategy in moving forward to the
expanded division so as to make sure the policies that will govern the new division do not
conflict with the current managerial strategies. Given the fact that the recommended strategies
that the management would implement to address the issue in the organization may not be
feasible, there are a number of alternatives that would be implemented in case the main solution
was found not to be feasible. For example, the company would implement customer services that
would increase their satisfaction, increase sales, return on investments, market shares, and also
invest on the corporate vision, mission and strategy. The restaurant would open another segment
at a different location instead of at the same position. This is important as it will not affect the
operations of the current restaurant.
Menu Engineering
Menu engineering is crucial to ensure that the foods and beverages offered in the
restaurant are viable. For the recipes that other competitive restaurants are copying, there
restaurant should ensure that they add a twist to the recipe to maintain its unique nature. Besides,
the company should also reduce some of the prices of the recipes that other restaurants are
copying. In addition, in order to maintain a low production cost, the products with the least
prices should be mixed with those with high prices. It is expected that consumers have had the
need to purchase something that specifically interacts with their sense, gives them an entirely

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new experience of life, and also presents them with a wide range of touch points that they can be
able to play. Due to this, consumers have developed a multiplicity behavior on their experiences
and desires (Grenni et al., 2020, p 18).
In most markets, this is seen in the developments that many organizations have been
making to move away from providing only the sensory experiences to presenting the consumers
with blurring, clashing, and confusing aspect of senses through which they can enhance their
satisfaction. This is also evident in the way that consumers have moved on from been passive on-
lookers to becoming active participators in every way possible more so in the various markets. In
order to reach pout to more of prospective customers in the market, the management of the
restaurant should incorporate technological trends to advertise its products and services. Creating
awareness of its products and services online via social media platforms is one of the branding
opportunities that the restaurant can implement (Mun and Jang, 2018). This will help create
awareness of the restaurant to a larger customer base.
Characteristics and Concepts of Restaurant
Enrika’s Restaurant has performed beyond the expectations of many. The restaurant has
delivered a much higher profit than the expected one due to the increased number of sales
especially to tourists, which has led to high share sales of all times. Despite the fact of registering
the high profits, Enrika’s Restaurant has still got a lot of room to grow in terms of their revenue.
That’s the reason why the restaurant is coming up with new strategies day in day out such as
expanding its capacity. Furthermore, diversity has been a critical achievement of the Enrika’s
Restaurant. The management of the restaurant ensures there is a connection between people from
different cultures and origins and this ensures that it serves the needs of people with a more
diverse workforce.

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Branding
The management of the restaurant continually implements different strategies with a view
to gaining a competitive advantage over other competitors that offer similar foods and beverages
to prospective consumers in the market. One of the strategies that the restaurant uses to gain a
competitive advantage is building a positive brand name. The global branding network has
enabled the restaurant to raise its customer base and sales. With a view of maintaining these
competitive advantages that it has, the company has simple cooking processes that all its
employees understand hence ensuring quick production and speedy delivery (Truong et al., 2017,
p 86). Consumer behavior has become a common aspect of various organizations in almost every
industry. There are various trends that drive the aspect of global consumer behavior. One of
these current trends that have evidently driven global consumer behavior to another level is the
trend on multiplicity. This is the perspective which explains the increase in the expectations of
the consumers on what is been brought into the market.
Conclusion
From the report, it is evident that Enrika’s restaurant basically aims at offering a wide
range of authentic foods and beverages. Foods and beverages sold at Enrika’s Restaurant have
several benefits to its consumers. One of the benefits of the products is that they are readily
available and at favorable prices. The food and beverage services offered at the restaurant are
convenient. The foods at Enrika’s Restaurant also offer consumers a chance to taste different
types of ingredients through the products offered. The restaurant also offers their foods and
beverages at discounts and also has periodic promotions that are beneficial to consumers. Food
and beverages offered at the restaurant are of high quality and great taste in their contemporary

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operating segment. This is because the main aim of the restaurant is to meet the preferences and
tastes of their consumers.
Recommendations
Implementing pricing and profitability concepts is very crucial. This is because it will
ensure that the restaurant improves its sales as well as profits of the restaurant. The management
of the restaurant should set out different implementation steps to strategies to meet their
objectives such as profitability. The first step would be to create brand awareness for their
restaurant. This would help reach out to a large consumer base as well as venture into new
markets. The other implementation plan would be to acquire all necessary strategies to
implement the changes (Niehm et al., 2016). Upon completion of these two strategies, the
restaurant should plan to fund the change and embrace new forms of technologies that would
help them expand their products and services as well as increase the recipes. The results yielded
by the implementation of the recommended strategies will then be measured by ascertaining of
the objectives of the management will be achieved.
With a view to responding to the technological trend, the restaurant would also invest in
sustainable product packaging for all their beverage and food products. The restaurant would
begin packing its products in brown paper and boxes and its beverages in fountain cups since
they are recyclable and renewable. The restaurant would also unveil new types of carry-bags for
their products giving their package a new differentiated look from that of their competitors. The
launching of new packaging bags is in line with the vision of the company which is to be a
progressive and modern restaurant. The packages would feature the restaurant’s logo and colors
to give it a fancy look. The restaurant would also offer diverse, convenient and prestigious
authentic foods which they avail to their customers at their convenience since there is delivery at

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a standardized price depending on the distance of the delivery point from the joint. The
convenient nature of the restaurant will offer instant utility to its customers.

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References
Domingo, A.V., 2018. Product, pricing and promotional strategies of Restaurants in Nueva Ecija:
An Assessment. International Journal of Advanced Engineering, Management and
Science, 4(11), p.268271.
Grenni, S., Horlings, L.G. and Soini, K., 2020. Linking spatial planning and place branding
strategies through cultural narratives in places. European Planning Studies, pp.1-20.
Mun, S.G. and Jang, S.S., 2018. Restaurant operating expenses and their effects on profitability
enhancement. International Journal of Hospitality Management, 71, pp.68-76.
Niehm, L.S., Dorie, A., Jablon, S., Fiore, A.M. and Hurst, J., 2016. Innovating with underutilized
marketing strategies to enhance profitability for small retail-related firms.
Truong, Y., Klink, R.R., Simmons, G., Grinstein, A. and Palmer, M., 2017. Branding strategies
for high-technology products: The effects of consumer and product innovativeness. Journal of
Business Research, 70, pp.85-91.