Squires African Restaurant: Business Creation and Development Report

This report provides an in-depth analysis of Squires African Restaurant's business creation and development. It begins with an executive summary and an introduction outlining the company's current status as a medium-sized enterprise serving West African food in London, and its strategic goals for international expansion, specifically into Paris. The report identifies key problems such as financial constraints and market unfamiliarity with African cuisine, and sets objectives for market share and brand recognition. It then details the proposed approach, emphasizing product innovation and continuous improvement to meet evolving consumer preferences, and the current business model focusing on quality, value, and customer loyalty. A strategic audit, including SWOT and PESTLE analyses, evaluates internal strengths and weaknesses and external political, economic, social, technological, legal, and environmental factors. The report concludes with proposed strategies, a revised business model, project implementation needs, and recommendations for international expansion. The report also highlights the importance of retaining skilled employees and building a loyal customer base to ensure the sustainable growth of the business. The analysis also highlights the importance of offering healthy and fresh food options for long-term success.

Business creation and
development

EXECUTIVE SUMMARY
This report will discuss about the business current and proposed business model of
Squires African restaurant. It will also include various kind of analysis like SWOT and PESTLE.
This organisation is planning in enter in Paris and they are also seeking their sustainable growth
opportunities in London.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PROBLEMS AND OBJECTIVES..................................................................................................1
Problems .....................................................................................................................................1
Objectives....................................................................................................................................2
PROPOSED APPROACH...............................................................................................................2
CURRENT BUSINESS MODEL AND EMPLOYED STRATEGY.............................................3
Business model ...........................................................................................................................3
Employed Strategy......................................................................................................................4
STRATEGIC AUDIT......................................................................................................................5
SWOT ........................................................................................................................................5
PESTLE.......................................................................................................................................6
PROPOSED STRATEGY...............................................................................................................6
PROPOSED BUSINESS MODEL..................................................................................................8
PROJECT IMPLEMENTATION NEED........................................................................................9
RECOMMENDATIONS ON INTERNATIONAL EXPANSION...............................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDICES...............................................................................................................................13

INTRODUCTION
For every business organisation, starting period is very different because they have face
various challenges regarding scarcity of the resources. Once an enterprises get necessary
experience, attaining growth does not remain a difficult task for them (Tukker and Tischner,
2017). Squires African restaurant is a medium sized enterprise, they are known for serving best
quality West African food and they have already starting one of their restaurant in London. In
this assignment, this firm will make strategies for entering in France. The present and proposed
model of business will also become part of this assignment. This file will also cover strategic
audit along with the project execution needs. At the end of this report, some recommendation
will be made for international expansion.
PROBLEMS AND OBJECTIVES
Squires African restaurant faced different kind of challenges in the initial period of their
business. This is not a new things for a small enterprise who were and ,still, are in sound position
and fighting very hard to grab significant market share.
Problems
Below are some of the troubles face by mentioned firm:
 Finance – The first and most severe issues for this restaurant was to find the right source
of money. When they started identifying the investors for implementation of their idea,
they did not get desired amount. Most of the investment agencies and bank did not think
that their business can become profitability in short period of time so they denied them to
pay asking sum.
 New to market – African food was not very popular before ten years, most of the people
did not have any idea about it and they were not interested in spending money on it.
Convincing people to change their taste and try something is new is a serious challenge
for promoters of Squires African restaurant. They did not have deep pocket so they could
offer heavy discount in initial period of making some permanent customer and attracting
potential consumers.
 Cost of making – Offering West African food at affordable price in London is a difficult
task. The raw material that is need to make these offered dishes is expensive the process
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of cooking is also bit time consuming (Basco, 2015). If cost of business of an
organisation is high then earning profit is challenging.
Objectives
 This company wanted to increase the popularity of African food in London. Earning
profit is a common aim of every organisation, but Squires African restaurant also think
about promoting their culture, some may say that they are taking assistance of their
background but there is not wrong in it.
 This restaurant want to register their name in top ten food outlets of London. They target
is to capture more then 10% market in foreign food segment.
PROPOSED APPROACH
This organisation has attaining success in last ten years because they focused on two
main areas, first is retaining their employees and other is second is fulfilling the need of
customers. But they have make some changes in their approach in order achieving sustainable
growth. Squires African restaurant should offer the some new products, instead of selling what
people like, they should offer new varieties to the public. Taste of public changes in regular
interval of time, most of their permanent customer think that this organisation is offering a
mundane menu so this is the correct time that they change their approach and sell the eatables
which are new to consumers.
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Illustration 1: Your business. Your creation. Your dream.

(Source: Your business. Your creation. Your dream. 2015)
This restaurant is continuously working on offering a food that is good for the heath of
people. They are using various information and a system for monitoring and identifying the
changes which are happening through corporate political activity. Squires African restaurant
should focuses on bringing continuous changes in their style of working (Keeble and Wever,
2016). Instead of executing major alteration in one short, they must concentrate of slow but
regular changes. This will help them in attaining sustainable growth and the employee will also
not face any unnecessary and extra problem. They are planning for international expansion,
instead of trying to gain too much market share in short time period, they should understand the
norms relating heath of public. If they will provide fresh and heath food to their customers by
using a effective monitoring style then they can easily achieve their long term goals.
CURRENT BUSINESS MODEL AND EMPLOYED STRATEGY
The restaurant industry in London has always seen cut throat competitions. Number of
suppliers is continuously increasing but this is not make any major impact on the operation of
many enterprise. Below is the current business model of Squires African restaurant:
Business model
This organisation focuses on power of their skilled employees, culture and loyal customers.
Their present business has three parts:
 Quality - Squires African restaurant has never compromises in therm of standards of the
food which they offer to their customers (Frow and et.al., 2015). People in London are
still not much interested in eating African food because they think that it is of inferior
quality but this organisation concentrate on changing their mindset and they deliver best
possible standard of the food without to the customers. Their taste is power of their
business model.
 Value for the money - Squires African restaurant is known for giving memorable
experience to the consumers. They do not raise prices of their products until they feel
that they may face loss in business due to increase price of raw material. Youth is their
many target and they know that young generation always like to visit a restaurant who
offer good food at affordable rate.
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 Permanent customers - Squires African restaurant does believe in attracting more
customers, their business model focuses in retaining and making loyal customers
(Lackéus and Williams Middleton, 2015). The seek consumer who visit restaurant on
regular basis and praise food and services of the organisation.
Business model of Squires African restaurant
Key partners
Raw material food
exporting agencies in
Nigeria.
Key activity
Sell quality West
African eatables at
affordable price
Value preposition
Make people aware
about variety of West
African food and serve
the healthy meal at
economic rate.
Customer
relationship
Young generation seek
low price dishes in the
restaurant and other
mainly expect high
quality of food.
Cost structure
Raw material is
expensive for making
African food but
cooking cost is not
high.
Revenue streams
If a person visit
Squires African
restaurant for one
time then they promise
to visit this restaurant
again. Some customer
pay lot of money in
terms of tip to the staff
of the organisation.
Channels
Restaurant in London
and recently started
franchise in London is
current channel for
this organisation.
Key resources
Cook and raw material
is the prime resources
for earning value in
the market.
Their current business model is profitable and it is the prime cause behind attaining continuous
success.
Employed Strategy
This organisation has a simple strategy selling good quality of food for a price which
customer are happy to pay (Veselovsky and et.al., 2015). They have wide portfolio of West
African dishes and they like to promote culture of this region. They are advertising their brand
by asking people to try something new. This restaurant understand the need of loyal customer
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and employees and they always try to make them happy. Their strategy is divided in basically
three parts:
 Promote their specialisation – This organisation know that the number of restaurant who
sell West African food in London and other part of UK is not much. They try to convince
potential customer buying trying a new taste. Preferences of people changes constantly
and their tactics depict that they want to gain popularity like Chinese food by introducing
weird by interest name of dishes with unique taste.
 Take advantage of low cooking cost – This organisation is taking benefit of low making
cost of various dishes. They are using best quality of raw material which is a burden on
their financial position but because of low salary to cook and less investment in cooking
equipment they are saving lot of money (Gerow, Thatcher and Grover, 2015). This is
helping them in earning high revenue.
STRATEGIC AUDIT
Strategic audit is analyses of business plan along with organisational strategy. This audit
is basically done for identifying the strength and weaknesses of a company so the organisation
can attaining their goals by assuring optimum utilisation of available resources. Below is SWOT
(Internal) and PESTLE (External) analysis of Squires African restaurant:
SWOT
Strength – This organisation has sound business model. Number of their permanent
customer is high, if this sector face any problem then cited restaurant do not have to cope up with
any major trouble regarding profit because their loyal customers provide stability to them in their
business. This restaurant is known for West African food, this unique image give them some
extra edge over their competitors. The financial position is getting strong in ever year, this result
can be verified by checking their strategy of starting franchises in London (Antero, 2015). Food
quality of Squires African restaurant is their USP, they promoted West African food across
whole London and now they are considered as the first choice when someone want to eat
something different.
Weaknesses – This organisation do not get decent level of popularity compared to the
other restaurant who started 10 years ago. They are only serving West African food but customer
also demand of something regular or normal along with their speciality. Expansion of their
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business is slow and this may make a negative impact on their business in long run because the
number of restaurant who are offering West African meals is regularly increasing.
Opportunities - Squires African restaurant can open more outlets in UK through
franchisee. They should offer heavy discount on non-weekends days, this is will be an effective
strategy for of advertising and increasing the footfall of customer on normal days. France should
be the place for international expansion for them. This country is completely unaware about
West African food and they like to try new eatables. If they capture high market share in France
then expanding their business operation in other European country would be difficult for them.
Threats – The enhancing number of African restaurant in London and other part of the
world may hamper the growth of this organisation. Continuously increasing price of raw material
, which are used for cooking food, will also put extra pressure on the profit of the firm (Storey,
2016). Squires African restaurant is using franchise approach for expansion of market, if they fail
to get good franchisee then it may earn them lot of negative publicity.
PESTLE
Political – The impact on political incident like Brexit made a negative impact on the
growth of this restaurant. People are utilising their money on eating regular food instead of trying
to do experiment by spending money on African food.
Economical – Squires African restaurant is running their business in London, economic
growth of European continent is which and most of the medium sizes enterprise like Squires
African restaurant are gaining to expand their market and attain growth in aggressive way
(Wright and Marlow, 2012). Low economic growth is a crucial factor in slow growth of the
business.
Social – Cited restaurant is play the card of diversity in culture in London. They are
specifying that they serve West African food. This is making a positive impact on their revenue
because people in London are visiting their restaurant in order to experience different culture.
Technological – Mentioned restaurant is using latest and different technology for making
African meals. The techniques and equipments which they are using is not very expensive and
they are not putting any burden on profit of the organisation. This is making a favourable impact
on the business of cited firm.
Legal – Regulations relating to healthy food are getting strict in most of the part of this
world. People are becoming heath conscious and want to eat sometime which does not make any
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negative impact on their body (Mendenhall, 2012). Strict rule have created unnecessary pressure
on Squires African restaurant its overall affect is unfavourable.
Environmental – The methods of cooking, which mentioned restaurant is using, does not
commit any pollution. They like to provide complete knowledge about their cooking procedures
and when people know that they are not doing any harm to the environment, the image of
restaurant improve. This is positive for their business.
PROPOSED STRATEGY
Changing business environment will influence this organisation in both ways i.e. positive
and negative also. If they will not have sound strategy for coping up with increasing challenges
then they will face many hurdles at the time of growing their business. For smoothly expanding
their business and achieving sustainable growth, below are the three strategies which they can
follow:
 More eatables at low price – Most of the customers are seeking more variety in West
African food, they also want this restaurant to offer some regular fast food which can be
found in any restaurants (Naudé, 2013). They should try to make necessary changes in
their menu card on continuous basis because they are highly dependent on their
permanent customers and and these consumer want to eat something new and different.
Squires African restaurant want to promote their culture along with earning huge profit.
By entering in French market, they can accomplish both tasks in single time.
 Aggressive expansion – Their present strategy for expansion is not going to work for
them (Chourabi and et.al., 2012). They have to take more risk and open more outlet in
various part of UK and France. Their focus should remain on making permanent
customer but this does not mean that they will slow then the process of expanding
business and open 4 to 5 outlets in 10 years. Their financial position is better, Squires
African restaurant has adopted franchise practice for increasing their business units and
now they should try to find appropriate franchisee who can understand their thinking and
conduct business according to restaurant strategy. Improve job satisfaction in employees – The number of problems increases when a
company try to expand their business (Danes and Jang, 2013). Currently skilled and
satisfied workers are the strength of this organisation. But in upcoming time their
workforce will increase then keeping employees happy will a crucial challenge for them.
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They should organise training and development programmes for workers and offer them
more money. Squires African restaurant can make attractive incentive scheme for their
personnels so the problem of low employee retention do not occur.
Steps for execution of strategy
If this enterprise will try to attain all goals in one time then they may end up achieving
nothing. Below are some of the steps which cited restaurant should follow at the time of
executing their strategy:
1. Do not loss current market – International expansion is important but market, first this
organisation should focus on sustainable growth in London (Jenkins, 2013). They should
offer more items in their menu card and open more restaurant in this city through
franchise practice.
2. International expansion – After capturing an important share of London, they can start
concentrating on French market, specially Paris. This place is overloaded with tourist and
they would love to prefer West African food in at a new location. The target segment in
Paris should be tourist and local consumers also. This organisation can sell their product
at affordable price, they should encash this benefit by targeting more then one segment in
one time. Franchise can be the correct practice for growth of cited firm.
3. Programmes for employees – Growth of business is incomplete without happy employees
(Tukker and Tischner, 2017). Along with domestic and international expansion, they can
also run a training and development programmes for new as well as old workers. They
have to invest money in their employees so organisation can move forward towards their
aim.
PROPOSED BUSINESS MODEL
Key partners
Different franchisee
can be their key
partners.
Key activity
Offer more variety of
food at affordable
price in London and
Paris.
Value preposition
Increasing the
popularity of Western
African Food and
serve healthy food to
the customers.
Customer
relationship
Offer more options to
the permanent and
other customer and
make good relation
with tourist in Paris.
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Cost structure
The cost of raw
material and
advertising can be
covered in this section.
Revenue streams
Customers would visit
restaurant more often
if they get more choice
in menu card, their
catering service
business can help them
in earning more
money in less time.
Tourist in Paris can
praise them for taking
a initiative for
promoting African
culture.
Channels
Opening restaurant
through franchise
practice would be
challenge for
interacting with
customer segment.
Key resources
Raw material, finding
appropriate partner for
franchise practice are
some of the key
resources needed for
execution of strategy.
Proposed business model can be divided in following parts:
Company Overview - Squires African restaurant is running their business from last 10
years in London and now they are opening more outlets through franchise practice. They are also
expanding business in Paris by targeting tourists.
Opportunities – They can start their business in other part of UK and European
countries.
Industry and market – Restaurant industry and market is London and Paris.
Strategy – Provide more options of dishes at affordable price and advertise their
speciality i.e. West African food (new taste) at economical rate.
Marketing plan – Promote the discount offers through advertising them on social media
website and take feedbacks from customer on regular basis so their needs can easily be
identified.
Financial plan – The expansion of business would cost much to Squires African
restaurant because of Franchise practice. They will get money from the franchisee for selling
West African food on their name.
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