Research Case Study Report: Small Bar and Kitchen Expansion Plan

This report presents a comprehensive case study on the Small Bar and Kitchen (SBK) restaurant, focusing on its planned expansion into Singapore. The report begins with an overview of SBK, its mission, values, and expansion objectives. It then delves into a detailed market analysis of the Singaporean market, including buyer behavior, micro and macro environmental factors, and a Porter Five Forces analysis. A significant portion of the report is dedicated to competitor analysis, examining two key competitors, The Cliff and Verde Kitchen. The report concludes with a summary of findings and strategic recommendations for SBK's successful entry and growth in the Singapore market. The report emphasizes the importance of understanding the target market, adapting to local consumer preferences, and effectively addressing competitive pressures within the Singaporean restaurant industry. The report also highlights the importance of marketing mix elements for successful market entry and expansion.

RUNNING HEAD: Research Case Study Report 0
Small kitchen and bar
Research Case Study Report
(Student Name)
10/1/2018

Research Case Study Report 1
Table of Contents
Introduction......................................................................................................................................2
Overview of company......................................................................................................................2
Mission.........................................................................................................................................2
Values of SBK.............................................................................................................................3
Expansion........................................................................................................................................3
Objective and Goals of Expansion...............................................................................................3
Analysis of Market..........................................................................................................................3
Buyer Behavior............................................................................................................................4
Micro environment Analysis........................................................................................................4
Porter Five Forces Analysis.....................................................................................................4
Competitor Analysis....................................................................................................................5
Overview of First Competitor......................................................................................................5
Overview of Second Competitor..................................................................................................6
Macro environmental Analysis....................................................................................................7
Society influence on Chocolate products.................................................................................7

Research Case Study Report 2
PETL Analysis.............................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Research Case Study Report 3
Introduction
The aim of this report is to generate emphasis on the day to day activities of the small
business. The business of the restaurants is increasing in the market at a higher rate. One of the
restaurants in Australia which is Small Bar and Kitchen is planning to expand their business at
international level. SBK is a small restaurant with innovative concept located in Sydney of
Australia. They created a loyal customer base with the high quality of items at a competitive
price. The customers of SBK belong from medium to higher income group, local population, and
tourists (Storey, 2016).
In the following context, there will be detailed discussion on the SBK and the way to
expand their business in the new market which is Singapore.
Overview of the company
Small Bar and Kitchen (SBK) is a small restaurant in Sydney of Australia. It is a high-
quality restaurant. It is established in the year 2014. The restaurant is known for their quick
service and they have a concept of doing the big things with the small steps. The whole
restaurant is managed by the Kirribilli who is the co-founder of the SBK restaurant. SBK is
based on the concept of western culture by presenting a small bar and kitchen. They cater
delicious drinks with different varieties, fantastic food with amazing service. Space is warm and
inviting and serves eclectic tapas-style dishes, perfect for sharing. It is a high-quality restaurant
with the quality meal which presents mouthwatering and tasty food with a wide range of
varieties. The SBK is famous for two reasons: one represents the person who is interested in
good or quality drink or food and another way are with the way the food is being presented

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especially in a quality way or inartful manner. The company also specializes in making different
varieties of chocolates (SBK, 2018).
(Source: Dimmi, 2018)
Mission
 The main mission of the restaurant is satisfying customers by catering great meal with
fun atmosphere provided by SBK. They are doing unique things which set apart them
from their competitors. They want the experience of dining to be as good as the foods
which are serving on their palate.
 The major focus of SBK will be to serve good quality food at a great value for money.
For customers there would be a wide range fresh prepared food which will be full view of
their guest; they want to be the restaurant of choice for everyone such as singles and
families, young and old, male or female.
 The restaurant also has a mission towards employee welfare. A happy employee makes a
happy guest. They combine a variety of menu, ambiance, atmosphere and friendly staff to
create a sense of place in order to achieve their goal of overall value in the entertainment
experience.

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Values of SBK
 Respect and reward the contribution of each individual at SBK.
 Be honest, open and direct in dealing with one another.
 For having a competitive advantage over competitors new & innovative ideas are
encouraged which is a key for successful growth.
 Commitment to maintaining the highest standard to the personal and professional
integrity at all time.
 Dedication towards the growth in the sale, profit and size of the organization
 Work as a team.
Expansion
SBK has a planning to expand their business in the new market at international level. The
targeted country is Singapore because it includes three national which is India, Malaysia, and
Chinese and the country has a huge hub of tourist. Therefore, it is significant to expand business
in Singapore. The main targeted area in Singapore is Sentosa because at his place most of the
tourist will come during their tour surely. Therefore, it is in a pipeline to select are in Sentosa to
target maximum customer. It will take around a thousand square meters and totally designed to
reflect and describe the specialty of their culture and specialty in food and drinks (Barringer &
Greening, 2008).
Objective and Goals of Expansion
 To cover maximum customers and slowly gain market share from another restaurant

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 To be well known in the world. It means when people talk about a restaurant in
Singapore, they will think about SBK immediately (Henrekson & Sanandaji, 2014).
Analysis of Market
Before entering in a new market, SBK will analyze the marketing environment of
Singapore which cover microenvironment and macro environment. It is necessary to analyze
both environments before entering a new market to achieve the desired goal efficiently and
effectively. The analysis of the microenvironment helps SBK to have knowledge about the taste
of buyer, supplies, and competition in the area of Singapore. The analysis of macro environment
helps the SBK to know about the impact of external factors such as political, social, legal,
technology and many more on the restaurant which helps the restaurant to cope up from such
challenges (Henderson, 2016).
Buyer Behavior
Eating and traveling out are going two leisure-spending activities by the customers of
Singapore. Approximately twenty percent of the people spend significantly by eating out. Most
of the spenders in eating out are adult in no children households. In recent, the customer
emphasis on freshness, health, provenness, authenticity and environmentally friendly products.
One-half of the local Singapore individuals produced food. Retailing of food and out of the home
market is definitely to benefit (Chung, Song & Lee).
There has been a rise in new puritans interested in health and lifestyle. They advice other
that what to be done and what not to be done. Customers getting more conscious about the

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quality food and better service with less expensive items which have been reflected casual in the
area of Singapore.
The people under the age of twenty-four are the maximum user of a casual dining
restaurant. The casual dining in the market is greatly influenced by the demographic, economic
growth, have-it-all society and experience economy. Women think and feel that a healthier
eating option is more important. Sixty-six percent of population emphasis on the quality of food,
food, and value for the money, type of services which influence the eating out market. Therefore,
food, service, and value remain the important market driver to the demanding customers
(Najeemudeen & Panchanatham, 2016).
Most of the customers prefer a cleaner restaurant with efficient service, low price of
items and friendlier service. The customer of the young generation is more interested in lower
price items. the option of healthy food and concern towards the environment though not vital for
them but cannot be fully ignored. The public generally prefers and understand branded chain
(Fernandes & Panda, 2018).
Microenvironment Analysis
The microenvironment analysis consists of all forces that are close to SBK and on which
SBK has a great impact. These forces directly affect the ability of SBK to serve their customers.
There are five forces which influence the microenvironment of SBK. As it will cover in the
analysis of Porter Five Forces:

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Porter Five Forces Analysis
(Source: Visual Paradigm, 2018)
The threat of New Entry
In the current market of Singapore, it is not very difficult for any restaurant to enter in the
food market. However, it would be quite difficult to take over the market share from the business
which are already running restaurant dominancy in Singapore or even can make a significant
amount of profit. Therefore, it put pressure on the restaurant to prepare a proper strategy of lower
pricing, cost reduction and also provide a new value proposition to the customers. SBK has to
build an effective strategy to protect the competitive advantage (Hargreaves, 2015).
Buyer Bargaining Power
The customer always wants quality items at a lower price. In Singapore, most of the
customers are a tourist. The restaurant cannot set high price unless the restaurant is offering
something innovative and extraordinary because the buyer has knowledge of the market and can
switch to another restaurant it can push the profit margin downward of the SBK.

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Supplier Bargaining Power
The suppliers have little bargaining power. The restaurant has not much bargaining
power when dealing with suppliers of a fringe product such as truffles, wild porcini mushroom,
and organic watercress because of lack of competition in the market of the supplier. It is also
challenging for the restaurant to deal with the large producer of a simple ingredient such as
potatoes which is supplying to the huge number of restaurants.
Substitute products
The restaurant can face the challenge from substitute products and services. The
supermarket and Grocery chain are the major substitutes to the SBK, especially in economically
hard time. There are other competitors also in the market and the substitute products, in this case,
would be vegetarian foods, drinks such as mojito and so on. Their primary products differ greatly
from each other. Therefore, SBK can set up store which is located near a popular tourist
attraction to maximize the customer.
Rivalry
SBK has a little rivalry with similar food chain because the core products are different
from another restaurant as they cater to a different kind of cuisine with different taste and style.
But the restaurant has to take care of the customer more efficiently because one bad experience
for a customer means they may not return.

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Competitor Analysis
In Singapore, the food market is highly competitive. There will be a wide number of
direct and indirect competitors for the SBK. The main competitors of SBK are The Cliff and
Verde Kitchen. The Cliff is the main competitor of SBK as they have already set their reputation
in the market of Sentosa (Baksi, Rao & Anitha, 2018).
Overview of First Competitor
The Cliff is evolved in freshly elevated casual dining and cuisine establishment that
caters authentic and comforting flavor of Italy with heartwarming ambiance. It is bidding addio
to the ilLido Group after a two-year partnership, and provide more traditional with a fun
selection of Italian classics, forgoing stuffy white table linens and strait-laced dress codes
(Sofitel, 2018).
(Source: Hotspot, 2018)
Highlighted Menu

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The dishes of Cliff have an extensive selection of homemade pasta, starters, desserts,
gourmet pizza which is baked in the wood-smoked oven with the finest selection of wines and
refreshing beverages.
Targeted customer
The main target of The Cliff is a tourist. Singapore has a rush of tourist with a different
culture. The Cliff caters homemade foods which attract maximum customers of Singapore. The
Cliff is a sophisticated restaurant; they mostly target the customers who are conscious towards
healthy food.
Overview of Second Competitor
Verde Kitchen is the famous restaurant in Singapore. This restaurant caters healthy dishes
with an ecological thrust. The concept of Verde Kitchen is based on organic foods which are free
from impure ingredients. The Vedic Kitchen cater healthy dishes which are free from thinking
gluten, dairy free, vegetarian and options of raw food, avoid plumped chicken or exotic
extravagances, organic vegetable and meat (Hilton, 2018).
(Source: Luxe Society, 2018)

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Highlighted Menu
Verde kitchen cater grilled Cyprus origin cheese tossed as well as superfoods such as
chickpea, bulgur, rocket salad, the healthy hearty mix cater with drizzled with roasted walnut
dressing. The restaurant also caters organic seafood, the MSC- certified Glacier Tooth Fish with
dressing in a green crusted coat of organic basil for a toothsome bite.
Targeted customer
The customers who believe in sustainable food and environment-friendly are the main
target of Verde Kitchen. They cover a wide range of customer which covers vegetarian and non-
vegetarian with a variety of items. All the items of Verde Kitchen are organic which attract the
customer in a huge amount.
Therefore, both restaurants are the main competitors of SBK because the prices of their
items are also not high which attract the customers most. SBK has to prepare certain strategies to
enjoy the competitive advantage.
Macroenvironmental Analysis
SBK has planning to operate in a larger force of macro environment which generate
opportunities but also involve a threat. Thus, SBK has to carefully examine the trend of macro
environment and must create a competitive response to such trends (Lee, Guan & Chan, 2017).
Society influence on Chocolate products
The society created a great impact on the demand for chocolate products. SBK is having a
planning to cater their specialist chocolates to their customers in Singapore. But SBK has to

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analyze the how much the society of Singapore has an influence on Chocolate product. These are
explained in below points (Pickles, Barrientos & Knorringa, 2016):
 The people in society are highly conscious of their health. They have a thought that
chocolate contains a high rate of calories which directly affect their health. Therefore,
most of the time consumers try to avoid chocolates which directly affect the demand and
consumption of chocolate products.
 Society always prefers to use sustainable items without harming the environment. The
production of cocoa cause global warming. Therefore, society takes certain steps against
the chocolates and resists using such products.
 In the society, most of the people are facing the issue of diabetes and the consumption of
sugar in the chocolates is very high, therefore they prefer to ignore such things.
 Most of the chocolates in Singapore are exported from other countries. It increases the
price of the product; therefore, most of the people in society avoid such expensive
chocolate which affects the demand for chocolate in the country.
PETL Analysis
Political Factor
The factor of political consists of governmental policies, regulation, and laws of a county
which directly affect the business established in the country. Singapore is a bureaucratic and also
a demographic nation, the political set up of Singapore directly affected by the decision made by
the government. Therefore, change in the decision of the government directly affects the
business of SBK (Henderson, 2016).

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Economic Factor
The economy of Singapore is extremely stable in nature because it considered having a
wide economic independence. It shows positive aspect to expand business in Singapore for SBK.
It will help in growing an active pace in the economy of Singapore (Ng & Karim, 2016).
Technological Factor
Singapore is a developed the country and remains updated with the latest technologies. It
is a fact that Singapore is highly developed Island in term of technologies. It will help SBK to
adopt the latest technology in term of distribution and marketing and also help to maintain
quality service with the help of updated technologies in Singapore.
Legal
Legal consist of laws that are common in the country that creates hindrance in working of
an organization. Singapore is highly strict towards the health law that affects the business of the
restaurant; a restaurant has numerous health indications, specifically on children and could also
be a reason to obesity or can occur other health issues. SBK has to maintain and adhere to the
laws of Singapore and also cater their chocolate products in keeping the mind of law for health in
Singapore.
Demographic
It has been analyzed that the consumption of food and chocolate in Singapore are higher
in young age group and the person with high-income group and middle education level group.
Meanwhile, the consumption of energy drink is also very high in the place of Singapore. It

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affects the business of SBK positively and can expand the business in the market of the high
consumption area to earn maximum profits.
Cultural and Natural
Singapore has a mixed culture of Malay, Chinese, Indian and Europeans and they believe
in sustainable items which are being natural. Therefore, the country has a variety of people with
different taste. The SBK can cater their food to particular consumers or cover the whole market
by catering to different varieties. It has a huge market of different taste. SBK can target any
among different customers.
Conclusion
From the above, it is concluded that the food is the essential thing that every people
requires. There is huge scope for a restaurant to grow in a global market with a variety of items.
The Small bar and Kitchen is the restaurant in Australia. The restaurant plan to expand their
business in the different market, thus SBK selected the area of Singapore to expand their
business. Singapore has huge opportunities for the restaurant but also include some threat which
will affect the business, therefore proper strategies should be prepared by SBK to cope up from
such threat and challenges.

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References
Baksi, B. D., Rao, V., & Anitha, C. (2018). A Survey on Local Market Analysis for a Successful
Restaurant Yield. In Emerging Technologies in Data Mining and Information Security,
15(5)249-257.
Barringer, B. R., & Greening, D. W. (2008). Small business growth through geographic
expansion: A comparative case study. Journal of Business Venturing, 13(6), 467-492.
Chung, N., Song, H. G., & Lee, H. (2017). Consumers’ impulsive buying behavior of restaurant
products in social commerce. International Journal of Contemporary Hospitality
Management, 29(2), 709-731.
Dimmi. (2018). Small Bar & Kitchen. Retrieved from:
https://www.dimmi.com.au/restaurant/small-bar-and-kitchen
Fernandes, S. F., & Panda, R. (2018). Social Reference Group Influence on Women Buying
Behaviour: A Review. Journal of Commerce and Management Thought, 9(2), 273-291.
Hargreaves, C. A. (2015). A comparative analysis of hotel ratings and reviews: an application in
Singapore. American Journal of Marketing Research, 1(3), 118-129.
Henderson, J. C. (2016). Foodservice in Singapore: Retaining a place for hawkers?. Journal of
foodservice business research, 19(3), 272-286.
Henderson, J. C. (2016). Halal food, certification and halal tourism: Insights from Malaysia and
Singapore. Tourism Management Perspectives, 19, 160-164.

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Henrekson, M., & Sanandaji, T. (2014). Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences, 111(5), 1760-1765.
Hilton. (2018). Verde Kitchen. Retrieved from:
https://www3.hilton.com/en/hotels/singapore/hilton-singapore-SINHITW/dining/verde-
kitchen.html
Hot Spot. (2018). The Clif. Retrieved from: http://hotspot.sg/425/The_Cliff
Lee, P. M., Guan, C., & Chan, C. M. (2017). Koufu: Fortune of an Entrepreneurial Singapore
Hawker. Asian Case Research Journal, 21(01), 175-205.
Luxe Society. (2018). INTERVIEW: Botanical Watercolour Artist, Lucinda Law. Retrieved from:
https://luxesocietyasia.com/living/interview-botanical-watercolour-artist-lucinda-law/
Najeemudeen, K. P., & Panchanatham, N. (2016). Buyer Behaviour towards Fast Food with
Special Reference to Chicking Restaurants. Ushus-Journal of Business
Management, 15(4), 21-36.
Ng, C. Y., & Karim, S. A. (2016). Historical and contemporary perspectives of the Nyonya food
culture in Malaysia. Journal of Ethnic Foods, 3(2), 93-106.
Pickles, J., Barrientos, S., & Knorringa, P. (2016). New end markets, supermarket expansion and
shifting social standards. Environment and Planning A, 48(7), 1284-1301.
SBK. (2018). About SBK. Retrieved from: http://sbksydney.com.au/
Sofitel. (2018). The Cliff The Restaurant. Retrieved from: https://www.sofitel-singapore-
sentosa.com/dining/the-cliff/

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Storey, D. J. (2016). Understanding the small business sector. London: Routledge.
Visual Paradigm. (2018). What is Five Forces Analysis. Retrieved from: https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-five-forces-analysis/