Krispy Chicken: A Report on Entrepreneurial Opportunity and Analysis

This report presents a detailed business plan for Krispy Chicken, a fast-food restaurant concept proposed for Bloomsbury, London. It begins with an introduction to entrepreneurship and the rationale behind the Krispy Chicken venture, emphasizing the target market of students and young people. The report explores various sources of entrepreneurial ideas, including personal interests and market research, and analyzes the business idea's core elements, such as the menu, location, and target audience. A comprehensive competitor analysis, including Subway, Five Guys, and Tortilla, is conducted, highlighting their strengths, weaknesses, and marketing strategies. The report further examines the success and failure factors within the fast-food industry, followed by a gap analysis to identify areas for improvement and differentiation. Business objectives, including customer satisfaction and financial targets, are outlined, supported by primary and secondary market research. The financial viability is assessed through a cash budget, demonstrating projected revenue and expenses over a 12-month period. A SWOT analysis identifies the business's strengths, weaknesses, opportunities, and threats, providing recommendations for overcoming competitive risks and achieving success. The report concludes by summarizing the key findings and emphasizing the importance of research and strategic planning for entrepreneurial ventures. The report also includes references to academic sources supporting the analysis. This report is a valuable resource for students seeking to understand business planning and entrepreneurial opportunities, and it is complemented by Desklib's repository of past papers and solved assignments.

Identifying entrepreneurial opportunities

INTRODUCTION
 Entrepreneurship can be defined as the activity of process of setting up of a new business
by undertaking financial risk for the purpose of earning of profits.
 The present project report will focus on a proposal of opening a restaurant called Krispy
Chicken in UK.
 The report will revolve around the sources that inspired this idea and motivation for
opening this restaurant.
 Information about the proposed restaurant, an analysis of competitors, gap analysis will be
covered here.

An introduction of business idea
What is it ?
 The graduate entrepreneur has developed the idea of starting a fast food restaurant named
as Krispy Chicken. The menu of the restaurant will have chicken element in each of its
servings..
Where is it ?
 The restaurant is proposed to be set up in Bloomsbury, London. This place is chosen
because of convenience of place to people, crowd of young people, high student base area.
Potential and target audience ?
 The entrepreneur wishes to open the restaurant in the student crowed area in London which
why it chose Bloomsbury. The target audience is college going students, young people

Different sources of entrepreneurial ideas and innovation
 There are different sources of generating entrepreneurial ideas. The sources behind the idea
of opening of a restaurant called Krispy Chicken in UK are as follows:
 Person's interest and hobbies.
 Conducting customer surveys
 Brainstorming
 Mass media.

To be conti…
 Peter Drucker's model for determining the sources of systematic innovation could be
utilized by the entrepreneur. The following are seven sources :
 Unexpected success or failure
 The inconsistencies between what should happen and what actually happened
 Deficiencies in process
 Changes in market structure or industry which catch unawares of everyone
 Changes in Demographics
 Changes in perception
 New knowledge

A Competitor analysis
Basis Subway in Bloomsbury Five guys Tortilla Russell Square
Products Provides wide range of
vegetarian and non
vegetarian products.
Specializes in burgers and
provide a range of burgers.
The restaurants serve tacos,
Burritos and salad.
No. of employees A franchise of subway
requires 10- 15 members. It
has around 17 staff
members. UK stores has
around 8600 employees.
Overall employees number
of Five Guys are
approximately 15000.
Has employee strength of
100 in UK.
No. of branches 33749 restaurants in world,
1700 stores in UK.
Around 1000 stores in US,
Canada and UK.
It has around 30 restaurants
in UK.

To be conti…
Organization structure It follows departmental
structure which is well
defined.
Hierarchical structure,
manager-subordinate
relationships exist.
It does not follow
hierarchical structure but
have a mixed defined
structure.
USP Fast service, ambience and
friendly staff.
Freshness in products,
avoids using of
microwave, frozen foods.
Quality and taste of
authentic Mexican food.
Marketing strategy Relies on its Global
branding and advertises it
through digital media.
Believes in word of mouth
marketing strategy and do
not aggressively promotes
business.
It aggressively markets its
products on social media,
newspaper and food
magazine.

To be conti…
Success of fast food industry:
 McDonald's, Five Guys etc. are one of the largest fast food chains in UK.
 The quick delivery, preferences of people regarding fast foods,
 location of stores,
 reasonable prices with good quantity of food, creative branding,
 marketing, hitting right chords of people
Failure of industry:
 Strict health and Safety regulations,
 shifting preferences of people from eating unhealthy food to organic and low fat food products,
 high taxes on core raw materials, high restriction on advertisement content,
 high level of competition from global industry.

What entrepreneur can do differently?
 The entrepreneur needs to serve more organic, fresh and healthy food to its customers.
 It can price its product relatively cheaper than its competitors for beating them.
 Unique marketing strategy for attracting customers such as allowing discounts, providing excellent ambience and
quality food to people.
 The Latest technology in communication system, in kitchen, in billing system would increase the speed of delivery
of services.
 Highly trained chefs would provide entrepreneur a competitive edge over others

Gap analysis
Basis Current condition Desired condition Action plan
Products Serving non vegan
products
The market has a demand
of organic and fresh food
items
Addition of organic food
offerings in menu.
Cost The product are priced low. It might become hindrance
in earning huge profits in
early years.
A well pricing strategies
could be used for setting
right prices.
Production process Frozen foods are used in
some dishes.
The customers want highly
freshen products.
Avoiding microwave and
frozen foods inputs,
purchasing fresh materials
and using them in providing
fresh dishes to customers.
Technology The business idea involve
the latest kitchen
equipment and technology
in operations.
However, business
demands For increasing
efficiency operations,
proper integrated
information system is
Installing a customized
management information
system for better
communication in
restaurant.

Business objectives of Krispy Chicken
 Customer satisfaction and gaining loyalty
 Attaining planned financial targets for a particular period
 Establishing a reputation for Krispy Chicken
 Stability and Longevity of business

Market research for supporting the viability of business
idea
Primary sources: The data collected by researcher on field is called as primary research.
 Customer survey : These surveys helps in obtaining critical information about customer
requirements, their demands, perceptions.
 Observation : The entrepreneur has undertaken observation activity for determining the
demands of students, young people in Bloomsbury.
Secondary sources : Data collected by entrepreneur by the already established and published
books, articles, internet, literature, reports are called as secondary research.