Business Case Study: Eat, Crave & Repeat Restaurant in Central London

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BUSINESS CASE STUDY FOR NEW
RESTAURANT

TABLE OF CONTENTS
Task 1...........................................................................................................................................................1
Summarise the business...........................................................................................................................1
Name of restaurant...................................................................................................................................1
Visual identity..........................................................................................................................................2
Values creation........................................................................................................................................2
Task 2...........................................................................................................................................................3
Primary research......................................................................................................................................3
Secondary research..................................................................................................................................3
Quantitative research...............................................................................................................................3
Qualitative research.................................................................................................................................3
Task 3...........................................................................................................................................................5
Ethical dilemma.......................................................................................................................................5
Task 4...........................................................................................................................................................6
Comply with equality and diversity law in selecting applicants.............................................................6
Rights of the new employees...................................................................................................................6
Task 5...........................................................................................................................................................8
Describe business assets, liabilities, expenses and gains.........................................................................8
Annual Cash flow statement Account.....................................................................................................8
References..................................................................................................................................................10

Task 1
Summarise the business
Small restaurants have several benefits over the large business establishment chains of restaurant. The
small business offer immediate ambience and coziness. The business needs less start-up capital for
maintaining the less staff, less equipments and less utilities and maintenance. Even with the small
seating place, small restaurants can still earn the appropriate profits.
Industry: Restaurant falls in food service industry or it is largest element of hospitality industry and can
take the form of high end restaurant, fast food eateries, catering and many other manifestations (Gordon
and Brezinski, 2016). The food and beverage should symbiotically function as the part of other
businesses like movie theatres or bowling alleys.
Location: The food service restaurant should be at the retail location by considering various factors such
as estimated sales volume, potential customer’s accessibility, and rent paying capacity, restrictive
ordinances, traffic density, and customer parking facility, competitors, site history, lease terms and
future development (Burns, 2016). The location selected is Central London, UK which is the innermost
part of the London.
Target customer: It is not possible to appeal all the customers, therefore the target customer for the
restaurant will be young generation born between 1980s to 2000 as they highly prefer fast food and
quick service items (How to start a Restaurant, 2019). The restaurant will also target the generation from
the born period of 1965 to 1980 as they have the strong family values and prefers to visit the restaurant
to have pleasant dinning with affordable budget.
Business model: As the appealing target customers are young, the business model chosen will be more
like pub food but there will be the separate corner where the senior generation can feel comfortable with
proper dinning model (McKeever, 2016).
Name of restaurant
The name of the restaurant decided is ‘Eat, Crave & Repeat restaurant’ serving almost all the famous
fast food of London including variety of food items starting from appetizers and salads to desserts and
dishes at the heart of London.
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Visual identity
Creating the brand identity is the superior way to offer target customers with the insight of organization
values and beliefs. The procedure of developing the brand is continuous for the lifetime of the business.
Presently, customer’s has access to all the businesses on social media website. While the useful way for
restaurant is to gain the knowledge about the target audience, it is also the easy way to get the negative
complaints as well.
An angry customer can leave various negative reviews on the internet that can place negative brand
online reputation (Promote your business inexpensively, 2019). On this concern, it will be important for
the restaurant to be honest for the situation and try to come with viable resolution that makes the
customers happy such as free meal coupon or refund policy to create the visual identity of the ‘Eat,
Crave & Repeat restaurant’. Further, to create the brand of the new restaurant, the similar strategy of the
famous brand can be adopted in creating the visual identity. Like Mc Donald visual identity is its golden
arches that show the global fast food restaurant chain.
Values creation
For promoting the small restaurant business, it is important to place down the values:-
 Carrying out the CSR activities for the society and maintaining the environment of the location
i.e. use of recycle waste
 Managing quality of the food items with reasonable pricing
 Giving equal opportunities to the employees or new hired candidates for promoting diversity at
workplace
 Use of social media to promote the business
 Loyalty programmes and coupon discounts for business promotion
 Building trust relationship with employees and with the customers
 Considering necessary regulations and laws in running the restaurant without interruptions of
government
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Task 2
Primary research
Primary research is conducted in the market for the first time in relation to food service industry. This
research gives the actual reality and idea about the sales figures of competitors, target audience,
political, social, environmental, demand and supply of the customer and legal factors. This research is
conducted through marketer by taking the survey method that includes questionnaire in which the list of
questions will be developed. To collect the information on the specified factors the questionnaire
developed will be distributed to the common public for knowing their opinions and ideas.
Secondary research
The secondary research is generally the referred work of others done by someone else earlier. The
marketer will conduct the secondary research to have in-detail understanding on the hospitality and fast
food industry. It includes the theoretical framework of the subject with giving proper concepts and
approaches in relation to food service industry as it is wider (Sekaran and Bougie, 2016). The research
will be done through books, journals, libraries and web articles to bring simplicity in the work as this
research takes less time and cost.
Quantitative research
Quantitative research is done through primary data collection from questionnaire. In this research, the
information collected has to be analyzed through placing the responses of the sample size respondents
on the graphs and tables. The graph is prepared through the use of MS-Excel that gives the percentage
responses of the selected respondents. Quantitative research is conducted to give fresh information in
proper format and presentation to draw concluding evidence of starting up the business or not of
restaurant.
Qualitative research
This research is carried out through secondary data collection of information through books and journals
and web articles. For collecting the information, the thematic analysis is done by the marketer to draw
the conclusive evidence on the study of food service industry analysis (Merriam and Grenier, 2019).
This research saves the time of the marketer if the resources are constraint and gives true information if
marketer relies on the information of prior researcher.
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Moreover, the restaurant businesses generally carry out the market research through primary quantitative
data collection especially when they are opening the new branch or new product. For example: Mc
Donald’s conduct the market survey every year to know the demand and perspective of the audience for
their products and competitors products also.
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Task 3
Ethical dilemma
Dilemma means both the situation is correct but one of it is more appropriate than the other through
giving strong justification (Palmer et.al. 2018). In the present case study, the first situation is promoting
the restaurant business through the popular website in order to large audience traffic towards the
business. While the second situation is not to take the opportunity of the website due to report giving
issues of employees related to bullying, discrimination and harassment.
From the analysis, it can be said that the second situation is the major dilemma and according to it the
decision of not taking the opportunity for promoting the new restaurant business. This decision is taken
to avoid the heavy risk that the new business can face in the high competition market. Further, if the
employees are not safe and secure in the management they will not offer good customer service that
ultimately not at all improve the brand and sales of the business. The situation can even arise that the
new business can come soon to the end i.e. shutdown of the business at very early stage. In addition, the
business can themselves enter into the social website platform to promote their business and increase the
target audience. They can also develop the own website portal or can find other opportunity to tie up
with the popular website but not this one who accuse their employees badly.
The dilemma is justified through the most famous case of BBC where the employee’s were bullied and
managers were too loud and opinionated. In this case also the judgment given was to create the good
working culture and terminate the managers who practice these types of activities in the business
operations (Banks, 2018). In the same case of new restaurant also, there is risk of damage brand value
and resulting staff de-motivation because of discrimination, bullying and harassment. Hence, dilemma
second shall be opted as human resource is important assets to business.
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Task 4
Comply with equality and diversity law in selecting applicants
A positive approach to diversity enables the restaurant owner to select the best candidate even they are
zero based contract. Employer should free from the bias on the factors such as gender, race, age,
disability that are irrelevant for determining the ability of the individual. Restaurant owner should place
this approach that is likely to be fair, progressive place and positive at the workplace by the diverse
society that they are included (Nickson, 2018). This philosophy shows the University’s Equality and
Diversity Policy.
The legal angle shall be considered seriously as there has seen increases number of particular
discrimination areas covered through legislation. The Equality Act 2010 saves the individual in
employment from harassment, discrimination due to several characteristics such as marriage, disability,
pregnancy, maternity, belief, religion, age, sexual orientation. The legislation also includes direct and
indirect discrimination and burden of proofing is on the employer that they have not practiced any type
of discrimination.
Further, Equality and Human Commission was created in October 2007 for encouraging and monitoring
the best practice and legal complying in every area of equal opportunities and diversity. It is the new
commission deploying the former Equality opportunities Commission, the Disability Rights
Commission and Commission for Racial Equality (Equality and diversity in recruitment and selection,
2019). The commission has given the codes of Practice and it is duty of the employer or restaurant
owner to comply the codes given by tribunals in deciding the case outcomes.
However, from the above study of law it can be said that new restaurant owner should comply the law in
hiring the candidate even on zero hour contract. There are many organizations who necessarily work on
the following mentioned law. Tesco, hotel Hilton, British Airways are the common and popular
organizations who strongly uses good HR practices with their employees by including diversity and
equality law at priority.
Rights of the new employees
There are several rights that the restaurant has to offer to the zero hour’s contract employee:-
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 Statutory maternity or paternity leave and payment
 Statutory leave for being sick
 Statutory redundancy payment
 Time off for emergencies including dependants
 The right to ask for flexible working hours
 A minimum period of notice if the employment is coming to end
 Protection for unfair dismissal
 National minimum wage (Rights on employee on Zero hour contracts, 2019)
 Protection for illegal deductions and unfavorable treatment
 Statutory minimum wage amount of paid leave
 Statutory minimum duration of rest breaks
 Right to ask for only 48 hours working in week
 Save against any type of whistle blowing
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Task 5
Describe business assets, liabilities, expenses and gains
Assets: In restaurant assets are of two types that are short term assets which include cash, inventory,
short term investments, prepaid expenses (advance rent payment), accounts receivables. Cash means
money in bank or in hand and inventory means food, beverages, ingredients and things offered for sale
(Brink, 2018). Account receivable shows that the money that the restaurant owe from customer or credit
card providers.
The second type of assets is long term assets that the restaurant has to acquire for longer years. It
includes kitchen equipments, booths, buildings and cash registers, patents (non physical asset), long
term stock or bond investment also that the restaurant can have.
Liabilities: Liabilities of the restaurant is of two types i.e. current and long term liabilities. Current
liabilities stand for the outstanding money that the restaurant owes from its suppliers (account payable),
lease or rent, utilities, income tax, sales tax, payroll and employee medical insurance (Williams, 2018).
Long term liabilities are long term loans and other long term.
Expenses: It is expenses that the restaurant has to incur every year that includes rent, service on debts,
payrolls, taxes and fees, utilities, food costs and other expenses.
Gains: It is the income or sales that the restaurant receives every year from food, beverage, catering,
events, delivery charges and other income if any (Narayanaswamy, 2017).
Annual Cash flow statement Account
Cash beginning balance: 20,000
Operating cash flows
Income from operational activities 6000
Depreciation 500
Gain or loss from asset sold -
Total 5500
Investing cash flows
Leasehold improvements 3000
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Equipments cash payments 5000
Proceed from asset sales -
Total 8000
Financing cash flows
Service on debts (600)
Total (600)
Cash ending balance 6900
Net cash change (13100)
The cash has been reduced as it was the initial year of beginning the restaurant and the organization has
still maintained is cash balance which shows organization in the initial year can meet all the problems.
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References
Books and Journals
 Banks, C., 2018. Criminal justice ethics: Theory and practice. Sage Publications.
 Brink, K.D., 2018. The Friendly Ogre: A Business Plan(Doctoral dissertation, The College of St.
Scholastica).
 Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
 Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
 Gordon, R.T. and Brezinski, M.H., 2016. The complete restaurant management guide.
Routledge.
 McKeever, M., 2016. How to write a business plan. Nolo.
 Merriam, S.B. and Grenier, R.S. eds., 2019. Qualitative research in practice: Examples for
discussion and analysis. Jossey-Bass.
 Narayanaswamy, R., 2017. Financial accounting: a managerial perspective. PHI Learning Pvt.
Ltd.
 Nickson, D., 2018. 5. The importance of how you look for getting in and getting on in the
workplace. Research Handbook of Diversity and Careers, p.91.
 Palmer, N.F., Luthans, K.W. and Olson, J.S., 2018. The job search dilemma: good vs right. The
CASE Journal, 14(4), pp.477-495.
 Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
 Williams, D., 2018. Indicators of Restaurant Success. Marriott Student Review, 2(1), p.9.
Online
 Equality and diversity in recruitment and selection, 2019 (Online) [Accessed Through] <
http://www.bristol.ac.uk/hr/resourcing/additionalguidance/equality/#3> [Accessed on 28th
March, 2019]
 How to start a Restaurant, 2019 (Online) [Accessed Through] <
https://www.entrepreneur.com/article/73384> [Accessed on 28th March, 2019]
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