Industry Research Project: Factors Impacting Restaurant Performance

This industry research project examines the factors that impact the sales revenue and overall performance of restaurants, using Bollywood Corner as a specific case study. The research delves into both macro and micro factors contributing to restaurant failures, including economic conditions, legislation, and internal operational issues. The project employs a mixed-methods approach, incorporating both quantitative and qualitative data collection through surveys and interviews with customers and restaurant owners. The analysis includes an examination of marketing strategies, SWOT analysis, and segmentation, targeting, and positioning (STP) to identify areas for improvement and strategies for enhancing customer motivation and loyalty. The project concludes with recommendations for improving restaurant performance and increasing sales, providing actionable insights for restaurant owners and managers. It also provides tables, charts and images as part of the analysis and findings of the research.

Running head: INDUSTRY RESEARCH PROJECT
Industry Research Project
Name of the Student
Name of the university
Author Note

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Acknowledgement
This research allows me to expand my knowledge more and provide me the opportunity to
conduct a research. I would firstly like to thank my principal Mr./Mrs./Miss.
_____________________________________ for allowing me to be a part of the
_____________________________ University.
I would also thank my mentor Mr./Mrs./Miss. _____________________________________ for
guiding me throughout my research and suggest me effective ways so that I can accomplish my
research within deadline.
My friends and classmates also helped me to collected useful information for the research.
Lastly, I would like to thank my parents as they provide me continuous support and
encouragement to complete my research.
Thank you all.

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Executive Summary
The success of an organization depends on many factors. One such factor is effective selection of
resources and business approaches that can enhances the performance of the organization and
improve its sales. Business performance can be easily witnessed in restaurants as people often
visit their and it is a growing industry in any corner of the world. In this research the major focus
is on a restaurant called Bollywood Corner. The research also aims the failure factors of a
restaurant that do not allow them to attain maximum profitability. Primary research is planned in
this research to collect the data and both the quantitative and qualitative methods are used in this
research. The total number of samples is 33 among which 330 are the customer if he restaurants
and the remaining three are the different restaurateurs, who run their business nearby. These
restaurants face some problem in their business due to which they are unable to make enough
profit. Thus, the research highlights what factors can accurately impacts the sale of a restaurant.

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Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Introduction..........................................................................................................................10
1.1 Background of the study......................................................................................................10
1.2 Background of the organization...........................................................................................11
1.3 Research Aim.......................................................................................................................11
1.4 Research objectives.............................................................................................................11
1.5 Research Questions..............................................................................................................11
Chapter-2: Literature Review.......................................................................................................13
2.1 Introduction..........................................................................................................................13
2.2.1 Macro and Micro Factors of Failure for a restaurant........................................................13
2.2.1.1 Macro-factors for restaurant failures.........................................................................13
2.2.1.2 Micro factors for restaurant failures..........................................................................15
2.2.2 Failures to adopt marketing theories and concepts.......................................................16
2.2.2.1 Inappropriate SWOT Analysis..................................................................................16
2.2.2.2 Problem in marketing mix.........................................................................................18
2.2.2.3 Inefficiencies in developing proper segmentation, targeting and positioning...........20
2.4 Conceptual Framework........................................................................................................21
Chapter- 3: Research Methodology...............................................................................................23

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3.0 Introduction..........................................................................................................................23
3.1 Research Philosophy............................................................................................................23
3.1.1 Justification of the chosen research philosophy...........................................................24
3.2 Research Approach..............................................................................................................24
3.2.1 Justification of the chosen research approach..............................................................24
3.3 Research purpose.................................................................................................................24
3.3.1 Justification of the chosen research purpose................................................................25
3.4 Data collection method........................................................................................................25
3.5 Data analysis method...........................................................................................................25
3.6 Sampling technique.............................................................................................................26
3.6.1 Sample Size..................................................................................................................26
3.7 Research ethics....................................................................................................................27
3.8 Research Limitation.............................................................................................................27
3.9 Research Timeframe............................................................................................................28
Chapter-4: Findings and Analysis................................................................................................29
4.1 Quantitative Analysis...........................................................................................................29
4.2 Qualitative Analysis.............................................................................................................52
Chapter-5: Conclusion..................................................................................................................56
5.1 Conclusion...........................................................................................................................56
Reference List................................................................................................................................57

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Table of Images
Image 1: Structure of the Dissertation...........................................................................................11
Image 2: SWOT Analysis..............................................................................................................15
Image 3: Marketing Mix- 4P.........................................................................................................17
Image 4: Segmentation, Targeting and Positioning Model...........................................................19

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Table of Tables
Table 1: Research Timeframe........................................................................................................27
Table 2: Response on gender of the respondents...........................................................................28
Table 3: Response on age of the respondents................................................................................29
Table 4: Response on frequency on restaurant visit......................................................................30
Table 5: Response on taste of food................................................................................................30
Table 6: Statistical interpretation on taste of food.........................................................................31
Table 7: Response on quality of ingredients..................................................................................32
Table 8: Statistical interpretation on quality of ingredients...........................................................32
Table 9: Response on food service speed......................................................................................33
Table 10: Statistical interpretation on food service speed.............................................................34
Table 11: Response on food temperature......................................................................................35
Table 12: Statistical interpretation on food temperature...............................................................35
Table 13: Response on ambience of the restaurant.......................................................................36
Table 14: Statistical interpretation on ambience of the restaurant................................................37
Table 15: Response on quality of AC services..............................................................................37
Table 16: Statistical interpretation on quality of AC services.......................................................38
Table 17: Response on music of the restaurant.............................................................................39
Table 18: Statistical interpretation on music of the restaurant......................................................39
Table 19: Response on restaurants cleanliness..............................................................................40
Table 20: Statistical interpretation on restaurants cleanliness.......................................................41
Table 21: Response on restroom cleanliness.................................................................................41
Table 22: Statistical interpretation on restroom cleanliness..........................................................42
Table 23: Response on impact on the sale of a restaurant due to economy..................................43

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Table 24: Statistical interpretation on restroom cleanliness..........................................................43
Table 25: Response on impact on the sale of a restaurant due to change in legislation................44
Table 26: Statistical interpretation on restroom cleanliness..........................................................45
Table 27: Response on impact on the sale of a restaurant due to climate adversity......................45
Table 28: Statistical interpretation on restroom cleanliness..........................................................46
Table 29: Response on impact on the sale of a restaurant due to new competition......................47
Table 30: Statistical interpretation on restroom cleanliness..........................................................47
Table 31: Response on impact on the sale of a restaurant due to effective leadership..................48
Table 32: Statistical interpretation on restroom cleanliness..........................................................49
Table 33: Response on recommending the restaurant to family and friends.................................50

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Table of Charts
Chart 1: Response on gender of the respondents...........................................................................28
Chart 2: Response on age of the respondents................................................................................29
Chart 3: Response on taste of food................................................................................................31
Chart 4: Response on quality of ingredients..................................................................................32
Chart 5: Response on food service speed......................................................................................34
Chart 6: Response on food temperature.........................................................................................35
Chart 7: Response on ambience of the restaurant..........................................................................36
Chart 8: Response on quality of AC services................................................................................38
Chart 10: Response on restaurants cleanliness..............................................................................40
Chart 11: Response on restroom cleanliness.................................................................................42
Chart 12: Response on impact on the sale of a restaurant due to economy...................................43
Chart 13: Response on impact on the sale of a restaurant due to change in legislation................45
Chart 14: Response on impact on the sale of a restaurant due to climate adversity......................46
Chart 15: Response on impact on the sale of a restaurant due to new competition......................47
Chart 16: Response on impact on the sale of a restaurant due to effective leadership..................49
Chart 17: Response on recommending the restaurant to family and friends.................................50
Chart 18: Response on Pricing of dishes of three hotels in comparison with Bollywood Corner 52
Chart 19: Response on comparison of three hotels with Bollywood Corner................................53

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Chapter 1: Introduction
1.0 Introduction
In hospitality industry and especially in restaurant industry, innovation is an obligatory
aspect to get success. Jasra et al. (2012) depicts that this innovation can be in terms of restaurant
ambiances or in terms of exotic food menus. Businesspeople believe that in order to motivate the
customers to visit a restaurant this innovation plays a crucial role. The ambience of the restaurant
should be comfortable so that the customers can opt for the organization compared to others.
However, Ryu et al. (2012) argued that sometimes restaurant owners failed to research on public
demands and the approaches adopted by other competitors. This approach results in poor
profitability of the concerned restaurant that may also affect the brand reputation. This research
also highlights a study of a bollywood restaurant that is disturbed with its present condition.
Moreover, the brand image of the restaurant is at stake because of those problems. Thus, the
reason of the problem, respondent’s response, findings and recommendations based on the same
will be illustrated in this research. However, in this chapter, the background of the study and
organization will be discussed followed byte research aim, objectives and questions. The
structure of the research is also given in order to provide an illustration of the research process.
1.1 Background of the study
Popovic et al. (2012) stated that restaurant owner should be careful about identifying the
exact innovation that can create the greatest bottom-line impact. Zeng et al. (2012) furthermore
affirms that, it is also important to identify the difference between the approaches that will be
nice to the restaurant and necessary innovation that helps in attracting customers and make them
happy. In this research the problem faced by a restaurant due to lack of innovation
implementation will be illustrated. In recent times, fast food industry are growing in such a fast

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rate that restaurants should comply the changes. Thus, restaurant should be equally competitive
in food that they offer ambience that they created and services that they put forward for
customers. The restaurant that is taken into consideration is Bollywood Corner. The restaurant is
facing some issues regarding their services results t which they lack in proper profitability and
brand reputation.
1.2 Background of the organization
Bollywood Corner is an Indian Restaurant located at New South Wales, Harringtom
(Bollywood Corner 2017). The prime aim of this restaurant is to offer Indian cuisine to the
people of Australia so that they can experience a new taste. The restaurant is established in late
90s and serves exotic food items. However, in recent times, the problem faced by some nearby
restaurants has been increased and customers are attracted towards restaurant that is both good in
food as well as presentation. Thus this research will highlight all the necessary aspect through
which a restaurant can maintain their brand reputation.
1.3 Research Aim
The primary aim of this research is to identify the cause due to which the sales revenue of
a restaurant can fall. The research furthermore aims to present some effective strategies through
which customer’s motivation can be attained so that they can visit to a restaurant regularly.
1.4 Research objectives
 To identify the reason for which a restaurant may experience sale revenue declination
 To investigate the measure for attaining customer motivation to visit a restaurant
 To recommend strategies through which these factors can be successfully implemented
1.5 Research Questions