Royal Waffle Cafe: Market Analysis and Business Development Strategy

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Hospitality Management
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Executive Summary
At present, from the hospitality sector, huge economic development is noticed. In order to
conduct the study, a business plan has been developed for Royal Waffle Cafe. The marketing
plans and business development models will also be discussed along with this context of case
study. In time of analysing the plan, it is noticed that the venture has so many indirect
competitors in the market. Therefore, using PESTLE, the external environment has been
analysed and using SWOT, internal analysis has been conducted. At the end of the study,
appropriate plan will be recommended so that the organisation is able to hold their position in the
contemporary merchandise market.
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Table of Contents
Chapter 1 – Introduction..................................................................................................................4
Chapter 2 – The Development Plan.................................................................................................5
Chapter 3 – Feasibility of the New Product/Service.....................................................................10
Chapter 4 – The sustainability of the new product/service............................................................14
Chapter 5 - Factors that limit development of the product/service within the hospitality industry
.......................................................................................................................................................17
Chapter 6 – Conclusion.................................................................................................................19
Bibliography..................................................................................................................................20
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Chapter 1 – Introduction
In this study, the topic of hospitality management will be covered. In this context, a new start-up
business outlet will be chosen here as a case study. This new business venture will operate its
business activities in the picnic area at Natural History Museum. This report will be produced
to set a development plan for its new outlet undertaken within the hospitality industry. The
feasibility of its waffles and services will also be demonstrated in this context. Moreover, the
sustainability of both the existing and new products will help to determine the goals of this
report. The limiting conditions of this business will be identified and evaluated as limiting
factors. Some analytical portions highlighting these factors will also be assessed along with this
study. The mission and vision of this report work through this case study is to provide a fruitful
business plan of this new start up business venture so that it can operate its business smoothly in
future with a progressive approach.
The name of the waffles shop is Royal Waffles Cafe. Previously, the company was not equipped
with organic products; that is why a product development plan for the shop is essential in order
to develop its products and services.
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Chapter 2 – The Development Plan
Overview:
A waffle outlet will be going to open in the picnic area near the Natural History Museum of the
UK. The name of the company is given as “Royal Waffle Cafe”. This is a start up business
venture as stated earlier. The mission statement of this company is to attract target customers
with delicious recipes. However, the vision statement of this company is set as to become a
successful waffle maker with a wide range of variety. Moreover, the tagline or slogan of this
new company is set as “a place to be fresh with taste”.
Figure-1: Company Logo
(Source: Created by the learner)
The company will produce waffle and other equivalent products such as ice creams, cookies and
other drinks along with delivery services. Moreover, the company will focus on making a wide
range of waffle products to build a market for its potential target customers providing a range of
products and services with a range of Affordable products. The speciality of this company will
be that it will provide its customers an online booking system in the official website page of this
company (Hannah et al., 2018). Moreover, they will offer a secure internet banking method and
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additional discounts on net payment systems. This online booking system also reduces the
operating area as well as start-up costs as physical stores involve much more investments in its
making initially. Some of the special dishes that the company will offer are-
 Waffle chocolate cookies
 Waffled biscuits and gravy
 Waffled banana bread
 Waffled cheese pizza
 Waffle single and double scoop ice creams
Each of these special dishes will be available at the beginning of the business outlet. Moreover,
every item will be cooked with delicious and attractive recipes engaging trained chefs. This will
be going to be a successful business policy as a new business as it will meet the customer
satisfaction. However, the richness of the taste will surely attract the young generation foodies.
They also keep focus on the quality and composition such that a balanced nutrient elements. The
location of this outlet will firstly catch the tired visitors outside the Natural History Museum.
The slogan of this company will surely help them to meet the people going for picnic in that
area. The items will help them to chill and refresh. Every salesperson will be trained to suggest
the satisfied customers for taking more dishes to home. This can also be addressed as their
marketing strategy to meet potential customers. The children and old aged groups can also like
the variation of flavours.
Along with the age group, the company will also like to target the group of potential customers
belonging to different economic classes. This can become effective as they provide a wide range
of affordably priced products. Moreover, they will focus in categorising their items into the parts
like cookies, beverages, drinks, waffles, ice creams, snacks and others. This makes the menu
cards more attractive as well as it will definitely provide a clear demarcating idea in the official
website while booking from online. Moreover, they will also make sure the separately placed
special dishes on the menu cards will be available all the time.
The main problem that the new start-up might face is the competitive rivalry. Many other
competitors in the hospitality industry of the UK make tasty waffles and already well established
as brand names like The Malted Waffle Company, The Bournville Waffle Company,
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Wafflemeister and Madame Waffle. Now, in order to resolve this problem the company can
come up with a corporate strategy like weekend discounts. The picnic spots or the location of
the Royal Waffle Cafe will give it a scope to earn a major amount of profit in weekends,
because the picnic spots are supposed to be filled up in weekends more frequently. Hence, it can
give a huge competitive advantage as the number of visitors at the museum as well as the picnic
goers’ increase accordingly in the weekends. The revenues in the weekdays can be covered up by
the company is weekends and other vocational seasons like Christmas, New Year, Ester and all.
Benefits Table:
Features Benefits
Online Booking  Easily accessible
 Time saving
Home Delivery Home delivery services will help the company to earn extra
delivery charges along with packing charges.
Different payment
modes
Internet banking, payment through cards or cash give the customers
flexibility in payment methods so that they can purchase in from
anywhere anytime (Amin, 2016).
Wide product range This wide range of products divided the different customer needs.
Moreover, it meets the satisfaction for all economic classes with
affordable pricing systems.
Delicious recipes Chefs are trained so that it can provide its customers different
delicious flavours such as black current, banana, corn or peach to
attract young generation waffle lovers.
Seasonal discounts The seasonal discounts especially in weekends will help the Royal
Waffle Cafe to have competitive advantage over others in the
picnic spots outside the Natural History Museum.
Table-1: Benefits of different Features
(Source: created by the learner)
Product Description:
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Product Name Advantage Disadvantage
Double scoop ice
creams
Taste of two different flavours in a
single cone (Lake, 2017)
Contains high fat contents
Cookies Variations in snacks and biscuits Baked ones are costly
Drinks Easily available anytime due to high
amount of stock
Can cause health issues over a
certain quantity of intake
Waffle items Varieties at affordable price Most of them are dry foods
Table-2: Product details for measuring competitive rivalry
(Source: created by the learner)
Graphical Explanation:
Ice cream Cookies Drinks Waffle products
0
5
10
15
20
25
30
Profit Count (%)
Figure-2: Profit counts against each product
(Source: created by the learner)
Analysis:
From the graphical representation as shown in the above graph, it is shown that, the profit count
is stagnant in case of other rival groups as they fail to provide varieties in waffled products.
Royal Waffle Cafe can make use of this as an advantage by incorporating various compositions
in waffled items.
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Competitive Landscape:
Products Cost effectiveness Healthy compositions Varieties
Ice creams - - 
Cookies  - 
Drinks -  -
Waffled products   
Table-3: Competitive landscape
(Source: created by the learner)
Analysis-
The above table shows the competitive landscape by comparing the rival products of Royal
Waffle Cafe. The analysis proves that, the waffled products of the company will going to be
effective in all measuring aspects (Withers et al., 2018).
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Pricing Models
Cost based Pricing Market Pricing Freemium PricingPortfolio Pricing
Chapter 3 – Feasibility of the New Product/Service
Marketing Plan:
Go-to-go market strategy- This is a corporate business strategy to achieve competitive advantage
over the other rival groups by utilising all the available resources from inside and outside (Russo,
2017). The T. rex Grill and Central Hall Cafe are two food outlets near the Natural History
Museum, but none of them are waffle maker. So, using all the sources, the Royal Waffle Cafe
can incorporate this marketing strategy in order to have a competitive advantage over the others
as stated.
Pricing model- A pricing model is a system determining the value of a product or service. There
can be five different pricing models, namely-
Figure-3: Different types of pricing models
(Source: created by the learner)
From the all above pricing models, Royal Waffle Cafe can use the cost based pricing model
initially so that they can make the pricing system simple based on their production or making
cost. Now, after being established by a certain time, the company can follow market pricing as
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well as portfolio pricing model as these will help them to find the ways to cope up with the
competitive challenges (Niyato et al., 2016).
Gross Margin- Gross margin is defined as the amount of revenue that one company retains after
recovering the cost charges. Hence, gross margin = net sales revenue – cost of products or
services sold (Verma et al., 2016). Even after facing loss counts at the very beginning quarter of
the year, the new venture can also make a preferable amount of profit margin nearly about 30%
(approximately £ 1200) if they can succeed their business operations.
The customer accessibility of the company can be set higher initially, because of the availability
of customers near the Natural History Museum. The commercial leaflets or handbills can be a
fruitful way of connecting with customers (Yoon, 2015). Mission and vision system, special
dishes as well as the menu charts should also be included in these leaflets so that the brand image
can be established rapidly. For the distribution of products, home delivery systems can be the
most suitable option. Royal Waffle Cafe can expect customer loyalty so that it can retain them
by providing attractive discounts. Due to the absence of any waffle outlet in the picnic area, the
waffle lovers are supposed to go for this company, as they will provide affordable range of price
initially.
Leadership Team:
Royal Waffle Cafe will have to set some criteria for selecting their employees in a leadership
team. The team will be called multi-tasking team to perform all round activities. This
requirement criteria are-
 Academic certificates of good quality
 Good communication skills
 Knowledge about internet banking and other payment methods
 Ground level knowledge on the emerging technologies and accountancy
 Minimum of one years experience in the hospitality industry
This high level of recruitment criteria can seek the attention of investors (Goldstein et al., 2017).
Directors and Advisors:
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Post Name Summary of Experience
Chief Executive
Officer (CEO)
This post is liable to report to the president or vice president of the
company on the progress of the organisation, so that it can make plans for
business (Men, 2015).
Financial Adviser This post is liable to manage the financial calculations, revenue costs,
profit margins and other economical aspects. Hence, they are suppose to
belong from the background of commerce (Cruciani, 2017).
Sales Manager The job of the sales manager is to manage the sales count of a company
annually or monthly so that the company can set economic goals in future.
Hence, the post will require an experienced person from the economics
background (Zur et al., 2016).
Table-4: detailed summary of experience for the post of directors and advisors
(Source: created by the learner)
After studying the above table, it is seen that being a new start-up business, Royal Waffle Cafe
will require a strong team of directors and advisors.
Financial Projection is a business forecast for future expenses and revenues. This projection
reflects both internal and external factors of the market (Bader 2016). For a new start-up business
like Royal Waffle Cafe, a comparatively short or mid-term financial projection will be handy.
1 2 3 4
0
5000
10000
15000
20000
25000
Revenue per month
Amount (£)
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