PDH301: Feasibility Study Report on Hospitality Venue Planning

This report presents a feasibility study of two hospitality venues in Sydney, Australia: Tetsuya's Restaurant and Ivy Pool Club. It examines business details, licensing, target markets, competitive advantages, and management strategies. The analysis considers internal and external factors affecting each venue's market position, including legislative requirements, employee skills, and consumer experiences. The report concludes that Sydney's tourism and business environment makes it ideal for restaurant and hotel businesses and emphasizes the importance of employee satisfaction and flexible employment structures for optimal performance.

Running head: HOSPITALITY BUSINESS MANAGEMENT
Planning and Designing Hospitality Venues
Name of the Student
Name of the University
Author note

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Executive Summary
Hospitality industry is one of the essential part of international business industry that deals
with the travel and tourism, accommodation, food and beverage and other businesses The
report is based on the business operation and scope of two hospitality venues namely
Tetsuya's Restaurant and Ivy pool clubin the area of Sydney NSW, Australia. From the report
it has been found that Sydney is place of leisure tourism and officials, which have made it
one of the most ideal space for restaurant and hotel business in Australia.

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Table of Content
Introduction:...............................................................................................................................3
Venue 1:.....................................................................................................................................3
Business details with licensing:.............................................................................................3
Target Market and consumers:...............................................................................................4
Competitive point and management:.....................................................................................4
Venue 2:.....................................................................................................................................5
Business details with licensing:.............................................................................................5
Target Market and consumers:...............................................................................................6
Competitive point and management:.....................................................................................6
Conclusion..................................................................................................................................7
Reference:..................................................................................................................................9

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Introduction:
Hospitality industry is one of the essential part of international business industry that
deals with the travel and tourism, accommodation, food and beverage and other businesses
(ahsadvisory.com.au., 2015). The report is based on the business operation and scope of two
hospitality venues namely Tetsuya's Restaurant and Ivy pool clubin the area of Sydney NSW,
Australia. In order to examine the business pterions the report will discuss the background of
the company, target market, consumer strength, legislative requirement, employee skill and
management. The impact of all these factors on consumer experience will be analysed with
evidence under the light of appropriate theoretical concepts of strategic business
management. The purpose of this paper is to analyse and validate the current significance of
two hospitality venue planning, taking the two example venues under consideration.
Venue 1:
Business details with licensing:
Tetsuya's Restaurant is owned and operated by renowned chef Tetsuya Wakuda from
2000. The Tetsuya's Restaurant is located at the centre of Sydney at 529 Kent Street. The
restaurant is famous for its Asian and French dishes. Currently the restaurant offers 420
dishes and 280 types of beverages. Tetsuya’s Restaurant serves a degustation menu based on
the Japanese philosophy of using natural seasonal flavours, enhanced by classic French
technique. Tetsuya’s also offers one of Sydney’s most comprehensive wine lists with
combine selection matching with ordered or served dishes. Tetsuya's Restaurant has the
license permitted for restaurant and Cafe services across the Australia. Currently the
restaurant is open for 12 hours per day which is 9 am to 9 pm to welcome the maximum
amount of guests.

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Target Market and consumers:
Tetsuya's Restaurant segmented the market by the national and economic
background of the consumers. They offers special dishes as per the origin of the consumers
nationally which has significant impact on the perception of test as well as flavour in each
consumer (Tetsuyas.com., 2015). Apart from that being a 4 star restaurant, this business has
to deliver top quality products to their consumers that makes the operational cost high. This
high operational cost consequently boosts up the price margin of the product. Therefore, the
target consumers for this restaurant are from the medium to high economic background. On
an average day, the restaurant serves around 180 guests with verity of dishes as per their
choice. However, during the session of festivals or sports events this cunt increased up to 320
guests per day. The average customer spend is 400 to 600 AUD per head (McManus, 2013).
In order to maintain the workflow the restaurant always ensures their efficient workforce
count. In specific days, the restaurant also increases the operational hour up to 14 hours for
a day. Hence, it is visible that this restaurant is making considerable amount of profit from
the consumer range of Sydney.
Figure 1: Tetsuya's Restaurant Sydney

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Source: (Tetsuyas.com., 2015)
Competitive point and management:
Sydney is place of leisure tourism and officials, which have made it one of the most
ideal space for restaurant business in Australia. Therefore, there are many large, medium and
small size restaurants situated across the Sydney. However in central Sydney the major
competitors of Tetsuya's Restaurant are Restaurant Hubert, Prime Steak Restaurant, Mazzaro
Restaurant, Rockpool Bar & Grill and others. Most of these are 3 to 5 star restaurants targeted
to similar segmented of customers to generate profit. Another essential concern is the high
bargaining power of the suppliers (Li, Ye & Law, 2013). The high number of top class
restaurants are ready to pay for the supply chains and vendors, which is making the overall
bargaining power high. However the threat form new entrance are very low. Starting a large
restaurant for similar consumer segment will take complex legislative permission as well as
initial capital.
Tetsuya's Restaurant has 4 different service departments to serves their guests while
avoiding any employee count issues during the peak hours or peak sessions of the years. For
this the restaurant has large amount of casual workers who are paid as part time basis as pr
their working hours in a month. However, the full time employees are benefited by the high
incentives policies, compensations and bonuses. The matrix organisational structure of this
restaurant helps them to monitor and control the operating departments with optimum
efficiency.

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Venue 2:
Business details with licensing:
Ivy pool club is a bar central pool and leisure club situated at the heart of Sydney
where the potential count of visitors and guests can be highest among the other part of
Sydney. The location of this hotel is 229 Georges Street, Sydney NSW (merivale.com.,
2016). The club is famous for its luxury and comfort to the customer due to their quality of
service they offer. Currently the club has 240 loyal customers or members because of their
luxury and quality services. Ivy pool club serves various leisure services and facilities based
on the subscription of the guests that is segmented as standard, premium and executive. Ivy
pool club has a unique design especially on corridors and also individual guest room and
open air swimming pool. The club has a huge dance floor and deejay deck which gives
premise for celebrating and dancing, these attracts most people to party at the club. Ivy pool
club also offers one of Sydney’s most comprehensive food and beverage facilities. Ivy pool
club has the license permitted for their guest’s accommodation, luxury services, event
management, food and alcoholic (liquor license) as well as non alcoholic beverage services.
The new law, which was implemented in Sydney stating that club should be locked out by
1.30am and the last drink should be sold at 3.00am has greatly affected the smooth run of Ivy
pool club. They are currently operating in the Sydney and planning for farther expansion. The
club runs from 8am to 3.am in the evening and can hold at list 1500 guest (Lee, Hallak &
Sardeshmukh, 2016).

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Figure 2: Ivy pool club
Source: (merivale.com., 2016)
Target Market and consumers:
Ivy pool club segmented the market by the economic background of the consumers.
Being a 4 star leisure venue this business has to deliver top quality accommodation services
to their guests that makes the operational cost high. However they have segmented the
operational process into several parts there each part is targeted to a particular segment of
consumer. This high operational flexibility allows the large amount of consumers to take the
facilities from this company. Therefore, the target consumers are from the medium to high
economic background. On an average day, the hotel serves around 250 guests with verity of
facilities as per their choice and initial subscriptions (Boella & Goss-Turner, 2013). However,
during the session of festivals or sports events this cunt increased up to 540 guests per day.
The average customer spend is 1200 to 5000 AUD. In order to maintain the workflow the
Hotel always ensures their productivity and staff count. To attract the consumers the

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restaurant provides specific facilities like free wifi, pool, bar, attached parking spots, huge
dance floor and deejay deck for 20 hours.
Competitive point and management:
Many large, medium and small size national and international level hotels,
restaurants, bars are situated across the Georges Street. Georges Street Sydney is place of
leisure tourism and officials, which have made it one of the most ideal space for restaurant
business in Australia. However in the heart of Sydney the major competitors of Ivy pool are
The Scary Canary bar, Chinese Laundry club, Retro Nightclub, Marquee Sydney and others.
Most of these have combined bar with restaurant facilities and dance floor targeted to similar
segments of customers to generate high amount of profit (hotelmanagement.net., 2018). This
situation is causing high bargaining power of the suppliers. However, government policies
and licensing operation makes the threat form new entrance are high.
Ivy pool club has different operational departments who serves for both external
factors as well as internal factors. To keep the 20 hours of operation up to the mark the
management of this club arranges a flexible and comprehensive work schedule for their front
desk employees. The aim of the management system is making their employees happy while
avoiding any employee count issues during the peak hours or peak sessions of the years.
For this, the restaurant has large amount of casual workers who are paid as part time basis as
pr their working hours in a month (ferrierhodgson.com., 2016). At the same time, the
permanent staffs are also benefited by the high incentives, compensations policies, occasional
bonuses and increment in remuneration. The vertical or hierarchical based organisational
structure of this leisure club helps them to closely monitor and control the all the
departments while making them efficient enough to serve for their guests.

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Conclusion
From the above discussion, it can be said that Hospitality industry is one of the
essential part of international business industry that deals with the travel and tourism,
accommodation, food and beverage and other businesses. From the above context it can be
concluded that Sydney is place of leisure tourism and officials, which have made it one of the
most ideal space for restaurant and hotel business in Australia. In both of these cases, the aim
of the management system is making their employees happy while avoiding any employee
count issues during the peak hours or peak sessions of the years. The employment structure of
both organisations are flexible however strict in terms of performance.

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Reference:
ahsadvisory.com.au. (2015). Overview of the Australian Hospitality Sector. Retrieved from
http://www.ahsadvisory.com.au/articles/australia-hospitality-sector-overview/
Boella, M., & Goss-Turner, S. (2013). Human resource management in the hospitality
industry: A guide to best practice. Routledge.
ferrierhodgson.com. (2016). hospitality insight Ferrier Hodgson Retrieved from
https://www.ferrierhodgson.com/au/-/media/ferrier/files/documents/publications/
hospitality/ferrier-hodgson-hospitality-insights-2017.pdf
hotelmanagement.net. (2018). Why Australia's hospitality industry is booming | Hotel
Management. Retrieved from https://www.hotelmanagement.net/transactions/why-
australia-s-hospitality-industry-booming
merivale.com. (2016). Ivy pool bar club about us. Retrieved from
https://merivale.com/venues/poolclub
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and
restaurant performance: A higher-order structural model. Tourism Management, 53,
215-228.
Li, H., Ye, Q., & Law, R. (2013). Determinants of customer satisfaction in the hotel industry:
An application of online review analysis. Asia Pacific Journal of Tourism
Research, 18(7), 784-802.
McManus, L. (2013). Customer accounting and marketing performance measures in the hotel
industry: Evidence from Australia. International Journal of Hospitality
Management, 33, 140-152.

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Tetsuyas.com. (2015). About - Tetsuya's Restaurant Sydney, Australia | Tetsuya's. Retrieved
from http://tetsuyas.com/about/