Golden Union Restaurant: Business Model Canvas and Peer Reflection

This report details the business concept for the Golden Union Restaurant in the UK, utilizing the Business Model Canvas to outline key elements such as key partners, activities, value propositions, customer relationships, segments, channels, resources, cost structures, and revenue streams. The report includes an analysis of the restaurant's objectives, including cost management, service quality, and expansion strategies. It also presents peer group reflections, gathering insights from online discussions and local restaurant owners to identify potential challenges related to location, capital investment, infrastructure, pricing, and cuisine. The report concludes with a reiteration of concept improvements based on the feedback received.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
Management...............................................................................................................................0
Name of the Student...................................................................................................................0
Name of the University..............................................................................................................0
Author note.................................................................................................................................0
Introduction..............................................................................................................................2
1. Original Business Concept..................................................................................................2
Business Model Canvas............................................................................................................3
2. Peer group reflection............................................................................................................5
3. Concept Improvement Reiteration.....................................................................................7
Updated Business Model Canvas:..............................................................................................9
Appendix:.................................................................................................................................11

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Introduction
The report helps in understanding the innovative ideas about opening a restaurant in
United Kingdom. The report will help in proper identification of a new venture proposal
about a new restaurant named Golden Union Restaurant with the help of Business Model
Canvas. The concept of business has to be discussed properly with the help of core elements
of the Business Model Canvas.
The main aim and purpose of the report is to generate a proper visualization of the
concept of a new restaurant with the help of BMC elements. Secondly, a peer reflection
report has to be analyzed as well as this will help in understanding the different issues that
can be faced and proper implementation of strategies has to be discussed as well. Lastly,
proper improvement reiteration has to be discussed as well as this will help in analyzing the
potential improvement strategies.
1. Original Business Concept
The concept of the business is relating to opening a new restaurant in United
Kingdom and the name of the restaurant is Golden Union Restaurant. It is basically a fine
dining restaurant and there are few objectives of the respective restaurant that are as follows:
Keeping the cost of food below revenue of 35%
Keeping the labor cost of employees between 20-25% of revenue(Spieth,
Schneckenbergand Ricart 2014)
Stay as a restaurant with outstanding quality of food and service (Benn, Dunphyand
Griffiths 2014)
Expand our advertising and marketing in other states and countries as well
Averaging sales between 1,500,000 to 2,000,000(Cummings and Worley 2014)

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Business Model Canvas
Key partners
1. Bank
2. Food and
health
departme
nt
3. Butchery
4. Waste
managem
ent
organizati
on
5. Takeaway
container
manufact
urer
Key activities
1. Generatin
g
awareness
2. Effective
consumer
care
3. Better
cleaning
and food
generation
4. Training
and
motivation
5. Proper
accounting
and stock
control
6. Raw
material
sourcing
7. Research
and
developme
nt
Key Resources
1. Proper startup
funding
2. Proper
employed
personnel
3. Proper
equipment storage
and serving
Value
proposition
1. Superior
and
proper
quality
solution
s for
offering
services
to all
consume
rs by
low cost
along
with
high
value
process
along
with
distinct
cuisines
which
offers
effective
guarante
e
regardin
g
healthy
eating.
Customer
Relationships
1. Consumer
service
2. Social
media
3. Feedback
practice
4. Personal
contact
5. Training
section
for staff
Channels
1. Printing
flyers
2. Printing
posters
3. Social
media
4. Word of
mouth
5. Over the
counter
purchase
Revenue streams
1. Booking
of events
2. Revenue
generated
from
drinks
Customer
segments
1. Traders
2. Employee
s
3. Business
individual
s
4. Passerby
5. Students

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4. Raw materials
5. Proper
information
technology with
hardware and
software
Business Cost
structure
1. Equipment
with
serving
and
storage
food =
6000
2. Salaries,
labor and
wages =
110,000
3. Raw
materials=
112,000
4. Gas =
1500
5. Printing
posters
and
flyers=
11500
6. Bank loan
= 3500
7. Electricity
= 1500
and salads
3. Over the
counter
meal
purchase
From the above Business Model Canvas, it can be analyzed that the key partners of
Golden Union Hotel in Edinburgh are basically the banks as well as other financial
institutions that are providing proper funding for the startup restaurant. The Business Model
Canvas is utilized for understanding the unique selling factors as this will help in
understanding the value propositions as well(Schaltegger, Hansenand Lüdeke-Freund 2016).
The value proposition is essential in Golden Union Hotel business as this helps in analyzing
the offerings of the hotel to their customers. The key activities that are performed by the

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respective hotel includes proper portioning as well as costing of the food and other services
that are provided by the hotel(Casadesus‐Masanelland Zhu 2013). Proper marketing is
included in the key activities of the hotel as this will help in gaining competitive
advantage(Boonsand Lüdeke-Freund 2013). The value proposition of the respective hotel is
to provide the clients proper and healthy food. This will help them in attracting clients and
providing the clients with premium services as well(Huang et al. 2013).
The customer relationship is maintained by the hotel by keeping personal contact
with them along with social media contacts as this will helps them in maintaining proper
relationships as well. The monthly budget of the hotel will be around US$100. The channels
that are used by the hotel is purchase over the counter wherein only payment through cash
and this is for the customers who wants quality products as well as healthy products within an
affordable range as well. The key resources that are used by the hotel is relating to the proper
equipment that is required for the storing and serving food in the hotel (Schneiderand Spieth
2013). The customer segments are the passersby, formal employees, college students and the
business persons (Baden-Fullerand Haefliger 2013). Cost structure refers to the variable and
fixed costs that the organization incurs. The business cost structure includes the different
costs related to the equipment that are required for cooking and serving the food as well
(Aversa et al. 2015). The operational costs include proper electricity, labor and gas that are
required in the hotel as this will help in gaining proper competitive advantage in the
competitive market. The total operational expense of the hotel is $265,727, which has
increased due to the increase in cash flows from operating activities.
The revenue streams of the Golden Union Restaurant are increasing in the third year
with $146,985 Net Profit in the third year and a Sales Revenue of $666,672. This includes
sale of meal, sale of packs of fruit salads as well as other meals as well (Saebiand Foss 2015).
Proper revenue stream is required in the hotel as this will help the business to flourish

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properly in the near future as well (Maglio and Spohrer 2013). Sales forecast is a crucial part
of the business that involves the estimation of business sales in future. The Gross profit of the
restaurant is also increasing at a rapid pace with $ 451,579 of gross profit at the end of third
year.
Therefore, these are the nine core business model canvas elements that are required in
the hotel business as this will help in analyzing the different resources, segments as well as
channels that are required for success of the business. The customer segments and
requirements are essential to be known as this will help in analyzing the issues that are faced
by the startup hotel and rectify such issues as well. For each and every start up business it is
essential to have a business canvas model as this will help in understanding the cost and
revenue streams that is required for the business.
2. Peer group reflection
a) (E-WP) ON-LINE DISCUSSION GROUP: I have conducted a proper survey with the (e-WP)
on-line discussion group who are related to the pros and cons of my start-up hotel named
Golden Union Hotel in Edinburgh. I gathered different views of the different individuals on
the online discussion group. There were few members who commented that the location of
the hotel was not central and this can cause loss to the entire business.
They felt that the location of the hotel is far away from the main city and this may not
attract customers like the other competitor hotels in the city. The other problem that has been
highlighted in the collection of views of the peer group was relating to the capital that has
been invested was too high and this can be a great loss for the company as well. The new
venture of the start-up hotel was a good idea but there were issues relating to the
infrastructure of my start-up hotel as the other hotels that were situated in that particular area
were all 4 or 5 start hotels and the services provided by them were more luxurious in nature.

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The trends are sensitive in nature as the new trends that are used by the respective hotel is
risky in nature and this can create huge issues for my new start-up as well.
The other issues that I have learnt from the online discussion group is relating to the
web designing and the online coverage of my hotel business. My hotel has no such media
presence and this can create huge issues in the hotel industry business that has been started up
by me. After receiving the different reviews about the issues that can lead to my start-up
hotel, I felt that I have to take necessary steps in order to reduce such issues with proper
implementation of strategies.
b) Group of restaurant owners in that particular area
From the views of the group of restaurant owners who are conducting their hotel
business in that particular area, I tried to figure out that different issues are cropping up in my
start up business. The first issue that I came across after taking the reviews from the other
restaurant owners is relating to the number of suppliers in that particular area. The number of
suppliers in that particular area is less than other areas and this is a big challenge for the other
hotels who have recently established their business. I feel the start-up business should have
been in such a place wherein proper production of the raw materials along with proper
availability of the suppliers is necessary and this would have helped me in flourishing in that
area as well. The second problem that I came to be aware about was regarding the pricing of
the different foods and services in my start-up hotel. The other owners of the restaurant felt
that it was too high and the customers will never be attracted to such high pricing as well.
This was because as there were less hotels in that area and already there were 2-3 hotels that
were performing pretty well and the customers preferred visiting such hotels as well.
According to the other hotel owners, I felt that I should lessen the prices of the different

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products and services as this will help me in attracting more customers. The last issue that has
been faced by me was relating to the cuisine as well as other equipment and facilities that
were similar to the other hotels in the particular area and this is a big challenge for me to
attract more customers in my start-up hotel.
From the different reviews from the online group individuals as well as from the other
hotel owners in the same locality, I have pointed out different issues that can be faced by my
start-up hotel relating to infrastructure, pricing, cuisine and other equipment related issues. I
feel that these are the different issues that have to be properly sorted out by me with the help
of proper implementation of strategies. I feel that since the area that has been chosen by me is
not centrally located, this will be a tough competition for my start-up hotel to survive in such
area. The marketing efforts that has been implemented by me was improper in nature and this
will increase the workload. The other issue that I have come across about my hotel is relating
to the high rate of services that is charged by my hotel as this can reduce the customer’s
attraction and shift it to other competitor hotels in that area. I have to properly implement
strategies in order to reduce such issues by properly consulting with a head counselor for my
hotel as this will help me in understanding the requirements of the hotel and this will help my
hotel to perform well in the entire competitive market.
3. Concept Improvement Reiteration
Business model canvas is a startup template and strategic management technique used
for documenting or developing the existing business model. It helps in describing the firm’s
value proposition, customers, finances and infrastructure. The key partners of the Golden
Union Restaurant are bankers, food department and labor experts. The key activities in the
updated business model include adequate sourcing and performance measurement. The
customer segments besides including traders, business individuals, employees also consists of

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customers by providing them high quality foods have home chefs. There are different
improvement strategies that can be adopted by the company as this will help in improving the
conditions of the start-up business and perform better in the hotel industry as well. Firstly,
proper check is required to be done on the cuisine as the same kind of cuisine can impact the
start-up hotel business (Adrodegari et al. 2015). Secondly, I need to properly ascertain the
number of suppliers in the particular area as this will help in understanding the requirements
of the hotel and contact with the other hotels in the industry as this will improve the condition
of the start-up hotel. Proper managing of the expectations is essential in nature as this will
help in attracting customers and this will provide best value to the customers as well. Proper
analysis has to be done and is required in order to understand the requirements of the
customers in the particular area and this will help in proper creation of availability of key
resources for the respective hotel. The key resources and channels are essential in nature as
this will help in maintaining positive attitude towards the customers. Proper staffs have to be
empowered and recruited as this will help in fulfilling the demands of the customers and take
the hotel in a different level as well. A proper as well as updated business model canvas has
to be created by the business of the start-up hotel as this will help in managing proper
channels of the business as well as analyzing the segments of customers and make it more
diversified in nature as well (Serrat 2017). The current business model cannels requires over
the counter payment through cash. Moreover, various distribution channel has been explored
by Golden Union Restaurant to attract the target customers.

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Updated Business Model Canvas:
Key partners
1. The municipality of
Edinburgh, bankers, labor
experts and food and health
department.
2. The key suppliers of
Golden Union Restaurant
are National Food as well
as Payment processing.
3. The key elements are
generated through bank
loans.
4. The main activities are
performed through the
partners, adequate licensing
and inspection of the
operational activities of
Golden Union Restaurant.
5.Proper control for food
quality, positioning and
costing along with
container manufacturers
Key activities
1. Adequate sourcing and
storage of the organizations
raw materials.
2. Food costing besides
portioning
3. Preparation of food,
Proper cleaning and
costing.
4. Research and
development and review of
product.
5. Adequate accounting,
which includes cash, stock
and sales.
6. Adequate performance
measurement of the hotel.
7. Maintaining customer
care services.
8. Motivation and proper
training.
9. Handling legal issues
and FDA along with
building trust.
Key Resources
1. Latest advancement in
technology.
2. Proper startup funding
for the organization.
3. Adequate personnel that
includes waiters, kitchen
assistant and managers.
3. Sufficient equipment is
required, which includes
serving food and storage.
4. Adequate IT including
Value proposition
Superior and proper quality
solutions for catering the
overall customers through
high value process as well
as low cost with different
cuisines, thus providing
guarantee of sufficient and
healthy eating. The hotel
can further implement
different chefs for various
cuisines for reducing the
overall cost. Furthermore,
Adequate
commercialization for
home kitchen is required
Customer Relationships
1. Adequate personal
contact
2. Adequate feedback
surveys
3. Social Media (Face
book, Whatsapp and
LinkedIn)
4. Increasing customer
engagement.
5. Providing adequate
customer services.
6. Maintaining and
retention of customers.
Trust and Safety is needed
in the hotel to build the
community.
Channels
1. Purchasing over-the
counter through cash
2. To attract the potential
customers several
distribution channel is
explored.
3. The channels can initiate
various applications such
as websites and mobiles.
Revenue streams
1. The stream revenues of
hotel includes sale of used
cooking, sale of meal and
fruit salad packs.
1. Customers are willing to
pay US$3.00.
2. Such as payment using
cash.
3. Advertising properly to
Customer segments
1. The customer
provided with high
food at a low cost.
2 Healthy food
provided that also i
home chefs.
3. The vital custom
the Golden
Restaurant are as:
College students
Proper formal emplo
Informal traders
Passerby
Business personnel

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hardware and software.
5. Creating goodwill by
raising awareness among
targeted customers.
Business Cost structure
1. The vital elements
inheriting costs are rent as
well as labor and material
costs.
2. The important key
elements that are needed
raw material and working
capital. 3. The operational
costs include raw materials,
electricity, labor and gas
besides insurance.
Proper maintenance as
well as development.
attract the potential
customers.
4. The sold meal
percentage has to be
analyzed.