Business Expansion Plan: The Spice Room Restaurant Analysis

This report examines the expansion strategy for The Spice Room restaurant, focusing on increasing its customer base and profitability. The literature review explores the challenges of expansion in a competitive market, emphasizing the importance of a unique identity and organizational structure. The Ansoff Matrix is applied to analyze market penetration, product development (including non-spicy options), market development through online sales, and diversification strategies. The report highlights the need for market research, customer feedback, and adapting to digitalization to achieve expansion goals. It concludes that a well-planned expansion, supported by market research and innovation, is crucial for success. The report acknowledges a research gap regarding global market surveys.

Running head: INTEGRATED BUSINESS MANAGEMENT PROJECT
Integrated Business Management Project
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Table of Contents
Introduction:....................................................................................................................................2
Literature review:.............................................................................................................................2
Ansoff matrix:..................................................................................................................................2
Market penetration:......................................................................................................................3
Product development:..................................................................................................................3
Market development:...................................................................................................................4
Diversification:............................................................................................................................4
Research gap:...................................................................................................................................5
Conclusion:......................................................................................................................................5
References:......................................................................................................................................6

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Introduction:
This literature review will discuss about the Spice Room restaurant that wants to expand
their business as they are seen to be having a high demand of their services. Their sales are
always at a hike as their business is very much famous already. This is why they have thought of
having expansion so that they can be able to reach to the customers more than before. To
increase the number of customers and to have the proper increase in their profit, they want to
expand their business (Dedeke, 2015).
Literature review:
The Expansion of the restaurant will be hard goal to achieve due to the major number of
Indian restaurants in Sydney this particular restaurant can plan their expansion by maintaining
the Indian attire that they have which will mark the restaurant with a individual identity between
the other similar restaurants (Dedeke, 2015). The expansion will help in identifying the different
elements of business to fit together in one place and form a proper business (Palmer & Grace,
2014). The expansion of the restaurant must have an objective and show the customers what the
benefit the customers will get from the expansion. Before the expansion the restaurant, have to
decide the organisational structure and implement policies for maintaining the organisational
culture. When a business is seen to expand or grow, it achieves an edge of rivalry from its
competitors. This restaurant has to find a way to continue with their services without flaws
(Palmer & Grace, 2014).

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Ansoff matrix:
The expansion the restaurant can be justified using the ansoff matrix model, which will help
them get the idea on which process to focus. The model is discussed below:
(Source: Boella, 2017)
Market penetration:
The restaurant has already gained their popularity and bringing up something innovative
will increase their sales as well as their customer attraction. The innovation can be in renovating
the restaurant and giving it a new look, though it cannot be surely said that the customers will be
happy with the look but innovation and change is good and as the restaurant has already kept the
same decorations, new decorations will attract the new customers (Boella, 2017).
Product development:
Many customers have the thought of having health problems in trying dishes that are
spicy hence the restaurant needs to update their menu with dishes that everyone will love and

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appreciate. The restaurant can for this problem prepare dishes that are non-spicy along with
dishes that are spicy. Hence, the process of expansion includes asking for customer feedback
about the expansion (Boella, 2017). For attracting more customers, the service of the restaurant
has to be more welcoming.
Market development:
Developing the market is very important thing to be considered by the restaurant. before
expansion. In this present world of digitalization, the restaurant needs to increase the online sales
and this will automatically expand their fame globally (Grace & Palmer, 2015). They can try to
focus on their opening online food application that will help the customers to order according to
their preference and get the delivery until a scheduled place within a span of time. Digitalization
is an effective platform that will provide expansion to the restaurant within a short span of time.
The restaurant has to estimate the amount of sales that they want to increase and plan
accordingly so that there is an analysis regarding the amount of profit the restaurant wants to
achieve (Schrobback, 2015).
Diversification:
The part of Sydney where ‘The Spice Room’ is located already has many Indian
restaurants. Hence, this particular restaurant has to consider the fact that what will make this
restaurant favourite among the customers. It is known that the Restaurants are always important
and they have become more important with the changing time and world, and the process of
expansion contributes to better business opportunity, both practically and economically (Grace &
Palmer, 2015). For expanding their business and increasing their profit, The Spice Room needs
to evolve their current services and have direct interaction with their customers. They can also
have an option of feedback form for the customers, they will fill while leaving the restaurant and

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this will help the restaurant to know what are the customers thought about the expansion and
what are the necessity of the customers from the restaurant that needs to be implied (O’Neill &
James, 2014). By using the above mentioned ansoff matrix model it can be said that the
restaurant is already famous one. However, after the expansion, the restaurant has to note about
which place and what decorations will be convenient for the customers, which will help in
increasing the numbers of customers in the restaurant and sidewise increase the sales of the
restaurant (Khan, 2014).
Research gap:
The study has taken into context a large aspect of business expansion but there are still
aspects that the study was unable to cover. Business expansion fully depends on the market
survey and it was not possible to research the market on a global basis.
Conclusion:
Thus, it can be concluded that, expanding a business needs the innovative idea that will
be commenced through the expansion, the planning of the expansion, the implementing of the
idea and the regulatory framework and lastly, the contacts. Trying to expand the restaurant
business will turn risky when there is no research done about the market. That is why there must
be a perfect market research performed to have the required knowledge.

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References:
Boella, M. J. (2017). Human resource management in the hotel and catering industry. Taylor &
Francis.
Dedeke, A. A. (2015). Wagamama: creation of a fast casual restaurant. Journal of Ethics &
Entrepreneurship, 5(2), 39.
Grace, A. R., & Palmer, J. E. (2015). The Homogeneity of Society: The Role of Franchising in
the Health and Food Sectors. Sociology and Anthropology, 3(12), 661-664
Khan, M. A. (2014). Restaurant franchising: Concepts, regulations and practices. CRC Press.
O’Neill, P., & James, S. (2014). Feeding Sydney: assessing the importance of the city’s peri-
urban farms. In The Security of Water, Food, Energy and Liveability of Cities (pp. 243-
256). Springer Netherlands.
Palmer, J. E., & Grace, A. R. (2014, July). The Homogeneity of Society: The Role of
Franchising. In Proceedings of the International Association for Business and
Society (Vol. 25, pp. 14-19).
Schrobback, P. (2015). Economic analyses of Australia's Sydney rock oyster industry (Doctoral
dissertation, Queensland University of Technology).