Innovation and Entrepreneurship: Hungry Restaurant Business Analysis

This report provides a comprehensive analysis of the Hungry Restaurant's business plan, focusing on key aspects of innovation, entrepreneurship, and profit generation. The report delves into various strategies employed by the restaurant, including quality improvement, innovative products and services, and the business cycle encompassing expansion, peak, contraction, and trough phases. It highlights the restaurant's points of differentiation, such as self-order kiosks and mini-libraries, and anticipates challenges like competition, recruitment, and financial constraints. Furthermore, the report explores marketing tactics, customer demographics, pricing strategies, and the importance of layout and design in attracting customers. It also includes a competitor analysis, examining the competitive landscape in London and the restaurant's sources of funding. The analysis provides a detailed understanding of the restaurant's positioning in the market and strategic approaches to ensure its success.

INNOVATION AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation :- innovation is new idea, creative thoughts, new imagination in form
of device. Innovation is a process that involves multiple activities to uncover new
ways to do things. New innovation can be realised with creativity. Innovations
create bigger opportunities and are critical for the survival, economic growth and
success of the company.
Entrepreneurship :- entrepreneurship is the process of designing, launching and
running a new business which is initially a small business. The capacity and
willingness to develop ,organise , manage a business venture along with any of its
risk in order to make a profit.
MAIN BODY
Profit generation
The Hungary restaurant will generate the profit for opening their new outlet by various
ways like
Quality improvement
The focus of this restaurant will be on the quality and thus will strive willingly to provide
the best quality services and products to the customers. This will their main strategy for
generating the revenues. By providing the world quality services like use of technology to cut the
queue line will eventually bring more and more customers to the restaurant which ultimately will
increase the revenues.
Innovation
This is the another strategy which the restaurant will use for improving its profitability
ratio (Nambisan, Wright and Feldman, 2019). The restaurant will emphasize on offering
innovative products and services to the customers which will helps them to attract customers as
well as supplier. High number of visitors and suppliers means more inflow of cash and thus
increase in the revenue.
Cycle of business
This encompasses four stages namely
Expansion

In this stage the Hungary restaurant will mainly focus on increasing the revenues by
hiring more suppliers to suppluy goods and services and attracting customers. The company will
expand initially by promoting its products in the market and thus making the customers aware of
their presence.
Peak
Once the customers are known of the restaurant in the market, then the restaurant will
integrate their business strategy and will thus provide quality services to customers. At this stage,
restaurant will make its price much higher due to name and quality and thus will generate
revenue.
Contraction
In this stage, to cope up with the slow growth of restaurant, the restaurant will inculcate
high degree of innovation that will entice the customers like self order kiosk. To overcome the
slow down of business, restaurant look for various advanced technology that will differentiate
them from competitors.
Trough
After the decline, in this stage restaurant will promote their services and products at large
level to overcome the further decline in business. They will use various promotional strategies
like email marketing to attract more and more suppliers along with customers.
Point of differentiation
The Hungary restaurant provides top class services to their customers which differentiate
them from their competitors. The restaurant provide kitchen display screen where the customers
can see the time required for order processing, Self order kiosk within which customer can make
their own meal package along with ingredients. These services make the Hungary restaurant
different from their competitors (Wagner, 2017). Besides this, the restaurant has a distinguishing
feature which is it contains a separate and isolated cubical containing the mini library where the
customers can relax and read the different books for long period of time. Besides this, it provides
quality food to their customers. The restaurants have more than 50 chefs which are highly
qualified and trained to serve the world-class meals. This quality food differentiate this restaurant
from the other competitors. One of the most distinguish feature is its price. The restaurant serves

the high class services and food at much reasonable price and even the middle class group can
enjoy the ambiance of this restaurant.
Anticipated challenges for hungry restaurant in London
Competition :- competition is the biggest challenge for opening any business as competition is
increasing day by day. There is heavy competition in London . It is a big challenge for hungry
restaurant to survive in this competitive market. It is challenge for hungry restaurant to attract
customers towards their restaurant (McLuskie, 2017). There are already many well known
restaurants in London so it is difficult to make image among those restaurants.
Recruitment and staff training :- Employees or team play important role in success of the
businesses. Hiring right employees is a challenge. There is a need of experienced staff to run a
hungry restaurant. In order to success of the hungry restaurant there is requirement of qualified
and experienced staff. Well trained staff will lead venture towards success.
Financial :- hungry restaurant needs large sums of capital to hiring a staff, leasing a building,
stocking the kitchen, buying furniture and decorations. There is requirement of huge capital for
running a new restaurant. New venture has to spend a lot money on expenses. New restaurant do
not turn a good profit for several months or years after opening. To start a new venture there
should be enough capital.
Finding the right suppliers :- For the hungry restaurant it can difficult to develop and nurture
quality supplier partnership. It can take time to properly evaluate suppliers reliability,
flexibility and cost effectiveness. Maintain good relationship with suppliers is also a challenge
for the new venture. If suppliers are not cost effective then it will be tough to earn profit.
Restaurant marketing tactics :- it is challenge for hungry restaurant choosing the right
marketing tactic. Defining brand image, increasing brand awareness, creating loyalty are
essential to restaurant growth and success. Marketing tactics should be unique and attractive to
create customers. Marketing tactics plays important role in awareness and attract customers.
Marketing tactics should be different from competitors.
Ideal and prospective customers for hungry restaurant
location :- where restaurant is located is one of the most significant factor in determining what
type of customers will attract. A casual restaurant in a suburban mall or sopping center will
attract family, teen, and older couples. What type of customers will attract it depends on location
of the hungry restaurant. before starting a new venture right location should be selected because

location will affect customers. Customers are king of the market therefore before taking any
decision customers should be consider (Landström, Åström and Harirchi, 2015).
Marketing and demographics:- marketing strategies help in attract customers. So what type
of customers will attract it depends on how marketing strategies are conducted. Post buy -one get
- one free coupons on social networking sites to attract teens and adults customers. Kids-eat-
free nights are great way to attract young families to hungry restaurant. There are many other
ways of marketing like social media (Matthews and Brueggemann, 2015). If marketing is done
through social media then it will attract teens and adults and social media will also help in
awareness of the hungry restaurant.
Prices and menu options:- prices and menu options play important role in attract customers. If
prices are low then will attract families to hungry restaurant. If hungry restaurant provides all
types of food then it will attract adults and families too. If objective is to establish a successful
sports bar, for example select décor, menu items, prices appeal to the home town sports crowd.
High priced foreign wines or small portion of food are not going to attract the standard sports bar
customers. While deciding the menu and prices, competitors should be keep in mind. High prices
will reduce customers (Muñoz-Bullón, 2016).
Layout and design :- layout and design also play important role in attract customers. If hungry
restaurant has unique and latest design then it will attract adult customers. Layout and design of
the restaurant should be attractive that will bring customers.
Positioning in the London market and 4p's
Price positioning:- a different position and different pricing result in the targeting of a different
customer segment. Price positioning is the best way to target customers.
Price positioning will help in differenciate from competitors. Price positioning will create
image in mind of customers about the hungry restaurant. Price is the best option in restaurant to
attract customers (González-Pernía, Jung and Peña, 2015). There are many competitors in the
market, it is tough to create different image in the market therefore price positioning can help in
create different image in the mind of customers about restaurant.
Price :- hungry restaurant need to price the menu correctly. Price should be contingent upon
what is costs to produce, market and cover expenses. It is also necessary to consider what market
will bear. How much customers can spend it should be consider while deciding price. Price

should also include profit. Competitors price should be consider while taking decision about
price.
Product :- menu can become a dumping ground for ideas. Some ideas work within the brand
and some fight with it. When putting items on hungry restaurant menu there is need to think of it
as a well composed symphony instead of a mixtape of different genres. Menu is not the place to
show off variety of menu items poorly executed. Hungry restaurant should focus on quality of
the items rather than numbers of items. Quality plays vital role in create loyal and long term
customers. Quality helps in make good relationship with customers. Quality will help in sustain
in this highly competitive market.
Place :- place affects demand of customers. Place will help in attract different types of
customers such as children, adults and families. Place is important for success and growth of the
hungry restaurant. Place and delivery of products on the right time affect customers.
Promotion :- hungry restaurant can build an amazing menu with the right product, the right
pricing and menu engineer that menu for maximum potential. Developing a training plan for
team not only ensure that customers are happy, but also ensures that team stays happy. Many
restaurants have to struggle to attract and retain qualified staff.
Competitor Analysis
The competitor analysis is necessary when new startup is done so that in terms of
marketing and strategic management the analysis of weaknesses and the strengths of the
competitors in market is analyzed. It helps to know the real situation of market and find out the
scope in the industry (Piperopoulos, 2016). So the present restaurants in London, UK has hold in
market, customers likes their food, their tastes and their prices which are set to be reasonable.
The Hungry Restaurant have to compete with their competitors like Leon, A Wong, Bao, 40
Maltby street, The Barbary, Bentley's, Bob Bob Ricard, The Clove Club, etc. there is huge
range of the restaurants available in London. So The Hungry Restaurant has to take efficient
steps to start the restaurant. It is essential for them to analyze the menus, recipes, costs of the
food to put in their restaurant. For example, A Wong restaurant provides the best Chinese food in
London, The Leon restaurant provides the fast food at reasonable price, Core By Clare Smith
restaurant provides the luxurious feel to their customers while dine.
As a new restaurant launched in the market, people try the new restaurant at least once, so
that they can make a review about the food, their interiors, their services (Edwards-Schachter and

et.al.,2015). So the Hungry restaurant should plan the menu according to the people's likes and
dislikes and on demand, they should have design their restaurant as luxurious, as soothing lights,
decorations according to the present scenario of the market, the prices of the dish should be
according to the customer segment, they should hire the employees who have knowledge in the
restaurant fields, they should be trained, they should plan to provide the services better than the
competitor restaurants. The Restaurants available in the London's market are well organized well
cultured. The hungry restaurant have to face many barriers to create their place in the customer's
heart.
Sources Of Funding
The Hungry Restaurant in new startup in restaurant and food industry, so it needs a huge
amount of the investments. As without any fund they can't raise the business, they actually need
the big amount of money to start the new restaurant. They have to find the sources of the funds,
So they can apply for the bank loan with the required documents and bank will decide according
to their policies whether they have to finance the Hungry restaurant or not. They will analyze the
investment cost, return profits, maintenance cost and after these type of such evaluation by bank,
they will raise the fund, and there is possibility they reject the proposal (Lounsbury and et.al.,
2019).
Second option for the Hungry Restaurant to get financed by the investors, some people
are interested to invest in new businesses as they get return from them. If the investors ready to
invest in their Restaurant, the might have their conditions, like the restaurant have to share the
profits with them. So investors are involved in building up the new restaurant. The proposal of
The Hungry Restaurant will be discussed with their investors, as they are funding for the
restaurant, the investors might do some changes in their proposal, the restaurant owner should
obey the investors words. For Funds to start a Hungry Restaurant they can get funds from their
friends, family, relatives etc. Maybe they would get ready to invest in the Hungry Restaurant,
this help from their known will lead to open the Hungry Restaurant. So the arrangement of funds
should be well planned by the restaurant owner, and properly execution is needed.
Intellectual Property
The intellectual property is considered as unique creation of mind, in context with
literary, artistic designs, symbols. As discussed above that the Hungry Restaurant is a start-up, so

they can't waste the money, they should try something new, unique for protection of their
business idea. The Hungry Restaurant might get a motivation from their customers, the
customers likes their food, their services, so they need to protect their identity in the market. The
Hungry Restaurant should get patent the trademark of their restaurant, and so anyone uses their
name to grow their business, they can take the appropriate stand against this. As the Trademark
is standard form for protecting the business idea, in beginning they should choose the appropriate
and unique trademark for their restaurant (Zhou, 2015).
The Hungry Restaurant posses the unique trademark should be recognized by the
customers anywhere, and they also aware of the duplicate brand of the restaurant. It helps the
restaurant to secure its identity among the customers. Its beneficial in many ways, like the
supplier also supply the raw material on behalf of the name of the brand. Trademark is effective
for the brand, the restaurant get consideration through this. This will be their identity in market.
Also the Hungry Restaurant has a signature dish in their menu, which is special and rare in
market. It should not be available in the market so that customer get the dish from the Hungry
Restaurant only (Schneider, 2019). As the customer likes the signature dish of the Hungry
restaurant will enhance the value of the restaurant in the market. More customers will come for
the visit and taste the signature dish of the restaurant. The recipe should be secure and not shared
by the chefs with other people.
CONCLUSION
As discussed the new start up of the Hungry Restaurant in London, It may get attention of
the public as newly launched. The customer will visit the restaurant at least once, so they get to
know the taste of the food in the restaurant. In general if the customer likes the taste, services,
interiors of the restaurant will share their experiences with other people. It enhances the curiosity
among the public about the restaurant. Also, the feedback of the customer is important.
As new start-up the planning should be done properly and the execution of the plan in
organized way. Analysing the market, finding the barriers in opening the restaurant, consider the
sources of the funds raise, analysing the competitors in the market and set the intellectual
property for the restaurant will help a lot and the Hungry Restaurant can take place in market.

REFERENCES
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