Strategic Analysis and Management Report: Far and East Restaurant

This report provides a comprehensive strategic management analysis of the Far and East restaurant located in the Four Seasons Hotel Bengaluru. It begins with an introduction to the restaurant, classifying it as a casual dining Asian brasserie and highlighting its unique offerings and ambiance. The report then delves into market segmentation, examining demographic, geographic, psychographic, and behavioral factors to understand the target customer base. It differentiates between organized and unorganized markets within the food and beverage industry, positioning Far and East within the organized market. A detailed customer profile is presented, focusing on Millennials and Generation X. The influence of the current business environment, particularly the impact of COVID-19, is thoroughly discussed, including revenue initiatives implemented during the pandemic. Finally, the report concludes with recommendations for digital domination, market expansion, and focusing on key market segments to enhance the restaurant's performance and future prospects.

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1. INTRODUCTION
Far and East is a mystical space of oriental magic on level 21 of the Four
Seasons Hotel Bengaluru. It provides exceptional access to a fantastic world
of culinary delights. Far & East is indeed an innovative and design-led place
known for authentic Japanese, Thai, and Chinese flavours delivered with a
creative twist. The far east is a geographical term that mainly refers to east
Asia. It generates a sense of mystery while also being appealing and exotic.
The far east is designed to be a unique and exotic destination. It features a
total of 128 seats, and alfresco and private dining rooms are available.
Moreover, Far and East is one of the best Asian Brassiere in Bangalore.
(Appendix 1)
Brasseries operate throughout the whole day, often until very late at night,
and have an extensive range of menus, typically with very traditional French
cuisine. On the other hand, Far and East is an Asian brasserie that serves
exceptionally authentic Asian food. The Brasseries can be exorbitant, and
despite being favoured among business people, they are on the more casual
side. Thus Far and East is classified as casual dining
Casual dining delivers reasonable pricing and cuisine in a relaxed
atmosphere. Casual dining offers both buffet and sit-down dining options. As
per Hospitality Net (2019), casual dining often has a bar, including a limited
wine choice and comprises fast food as well as fine dining dishes. A casual
dining restaurant's typical characteristics include that diner are served by a
waiter and that the general dining ambience is relaxed and comfortable. The
dishes are reasonably priced, and alcohol is often served. Most importantly,
it is well-liked by families and the younger generation, with a substantial
recurring customer base (Toast, 2022).

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This report is based on extensive research using both internal and external
sources. The research entails examining a checklist (Appendix 2-Appendix5)
that includes menu evaluation, food and beverage, dining, and human
resources aspects. In addition, the primary analysis includes restaurant
visits, meetings with the food and beverage manager, and personal
experiences obtained mostly during restaurant visits. The majority of
secondary research, on the other hand, is based on a wide range of scholarly
sources, including journals, publications, essays, websites, e-books, and
magazine articles.
MARKET SEGMENTATION
Market segmentation is a practise in the restaurant industry specifically
targeting a customer base to maximise sales, even though it means losing
other potential consumers. Since aiming for a narrower slice of the market
by delivering a reward that appeals to only one group typically results in
consumer loyalty and having to spend more (Steve,2019). Demographic,
geographic, psychographic, and behavioural segmentation are the four main
types of market segmentation. For the organisation to achieve long-term
success, it is critical to comprehend these four segments (Appendix 6)
1.1 DEMOGRAPHIC:
Demographic factors are regarded as key elements influencing consumers'
restaurant and cuisine selection. These include indicators such as age,
gender, education level, marital status, religious convictions, and so on (Cho
et al., 2017; Kim, Lee, & Klenosky, 2013). Demographic considerations
influence food consumption and company selection (Duncan, Josiam, Kim &
Kalldin, 2015). The demographic market of the Far and East is mainly

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composed of Millenials, and Gen Xers aged 20 to 50. The sector is segmented
by wealth and targets the middle and upper classes.
1.2 GEOGRAPHIC:
Geographic segmentation divides customers into several target consumer
groups based on their location. Since potential customers' demands,
preferences, and interests fluctuate based on their geography.Choosing a
densely urbanised location like Bangalore to launch an Asian brassiere was
among the four seasons' best investments. Bangalore has a population of over
9.5 million people. 70% of them are under the age of 55 and have an average
age of 24. (Gottschling, M., 2016). An Asian Brassiere in Bangalore was the
Ideal potential market. Furthermore, a transient market such as Bangalore
has always preferred unique as well as Asian cuisine.
1.3 PSYCHOLOGICAL AND BEHAVIOURAL
Psychographic segmentation evaluates the psychological components of
customer behaviour by categorising markets based on customers' lifestyles,
personal characteristics, beliefs, opinions, and interests. Behavioural
segmentation, on the other hand, divides markets based on behaviours and
judgement patterns such as purchasing, consumption, and usage. Far and
East's behavioural and psychological segmentation is centred on consumers
seeking a one-of-a-kind experience and millennials who perceive and
comprehend art. Far and East attempts to appeal to consumers who are not
excessively concerned about price.

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1.4 ORGANIZED MARKET AND UNORGANIZED
MARKETS
In the food and beverage industry, there are primarily two types of markets
to consider for market segmentation. (Appendix 7)
2.4.1 Organized Market:
An organised market is a sector in which employment contracts are defined
and consistent, and employees are guaranteed jobs. The government
regulates and taxes this sector. (Surbhi, 2017). In general, it consists mainly
of standalone restaurants featuring varying sizes of outlets. They include the
GST number and a computerised invoice with the bill. From 2016 to 2021,
the organised market's market share expanded by 20%. Furthermore, by
2022, the company's growth will have reached 30% (foodzania,2017)
2.4.2 Unorganized Market:
An unorganised market refers to any enterprise that is not listed with the
authorities and whose working conditions are not established and
predictable. There are no government rules or regulations in this sector. It is
rather simple to enter such a sector. It comprises roadside restaurants and
Dhaba’s, which are the most common meal options. Typically, the average
cost per cover of food ranges between 10 and 100 INR. They do not give the
required food bill.
Which suggest that Far, and East comes under Organized Market. As of the
financial year 2019, the casual dining restaurant market constituted
approximately 52.1 per cent of the organised market of Indian restaurants
and other food service industries (statista,2019).

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3. CUSTOMER PROFILE AND TARGET AUDIENCE
OF FAR AND EAST
According to Scarborough Research, which examines consumer purchasing
habits and consumption patterns, the majority of casual dining customers are
married or unmarried and have no children, a group colloquially known as
DINKs (Dual Income, No Kids). This market desires versatile, healthy, and
unique cuisine, as well as a restaurant where they can meet other DINKs
(Nielsen,2019).
The same pattern can be observed in the Far and East. The target market of
the Far and East comprises people from various generations, such as Baby
Boomers, Generation X, Millennials, and Generation Z, with a primary focus
on Millenials and Generation X. (Businesswire.com, 2016). According to
Chapman (2019), 42 per cent of casual dining customers are Millennials,
whereas young diners account for 30 per cent of all restaurant customers.
A positioning strategy is a succinct statement that defines how a company
wants to be viewed, with a particular target market in mind. Every business
plan must include a strategy for positioning the company (Escoffier, 2020).
The menus of casual dining restaurants must be enticing to their target
group. At a higher price point, the menu must go above and beyond the basic
expectation of exceptional taste. Customers expect outstanding service and
aesthetics, as well as delicious food when dining in a casual setting.
Far & East positions itself as a specialist in Asian cuisine to distinguish itself
among other casual restaurants in the neighbourhood. Even though they do
provide a few choices apart from Asian cuisine to appeal to a broader
audience, the majority of the restaurant's products include the freshest, finest

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quality ingredients cooked to perfection. Moreover, going to the Far East is
much more like watching a show than going out to dine, it is a sort of
entertainment. They position themselves as perpetual innovators.
4. THE INFLUENCE OF CURRENT BUSSINESS
ENVIRONMENT
COVID-19 has been not only a catastrophic public safety issue but also the
restaurant industry's worst hurdle to date. Never before have several
restaurants had to close their doors. The economic impact of COVID-19 on
the restaurant business has not been properly uniformly distributed
(Stacey,2020). According to Forbes, casual and fine-dining restaurant sales
have dropped by up to 85%. Revenues for several fine-dining restaurants
have even fallen to null, Being an Asian brassier, the impact was even greater
for Far and East.
There is a striking resemblance between what happened in the restaurant
industry during coronavirus eradication attempts and what transpired in
the retail industry following the Great Recession of 2008–09. In the case of
restaurants, the adoption of innovative computerised ordering, delivery, and
drive-thru innovations has surged and will most certainly continue after the
pandemic (Hottovy, 2020). Consumers increasingly want to have their food
or beverages brought to their door to avoid being infected by viruses. This
paradigm shift has led consumers to spend more money on a nutritious diet
to stay fit and enhance their immunity. it also had a severe impact on the Far
and East (Appendix 8)

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On the contrary, the transition from an unorganised to an organised market
is paving the way for a bright future for the Far and East. Due to the sheer
growth in demand for hygiene and safety products, the organised market's
share has grown drastically. In 2020, the share of the organised market is
41% higher than it was in 2010. It is predicted to outgrow unorganised food
services' share of the market by 2050. Customer perception of restaurant
cleanliness and safety standards has altered as a result of COVID
(Technopak,2020). Consumers now desire a location with a clean kitchen
and seating space, as well as all safety measures being followed. The
organised market possesses the capability for a clean and sanitary
environment, whereas the unorganised sector does not. As a result, the
organised market will benefit greatly. (Appendix 9)
4.1 REVENUE INITIATIVES EMPLOYED DURING
COVID
4.1.1 THE HEALTH CENTRE OF INTEREST
According to Manish Mehrotra, the influence of COVID-19 demonstrates a
favourable effect on the customer for their healthy diet, which boosts their
immune system and protects them from ailments. Consumers' appetite for
nutritious cuisine has increased. Far and East has made the necessary efforts
to provide sanitary meals and has added new innovative and healthy dishes
to their menu.
4.1.2 EMPHASISING FOOD DELIVERY
Prior to the pandemic, customers preferred to dine in restaurants due to the
general atmosphere; to feel refreshed, they preferred to go out. Customers
stayed at home as a result of the impact of COVID—19, and every segment of

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the hospitality sector incurred a loss. One of the reasons for the quick growth
of fast-food franchises is their dedication to service delivery. Unfortunately,
their prominence has fostered the notion that this concept is exclusively
appropriate for chains. The concept behind this theory is that it will become
much more relevant in the future. The fundamental design needs of service
delivery are being investigated. This contemporary climate fosters fresh
ideas and innovation while also improving the mechanics underlying some
of the most modern foodservice distribution strategies.
5. RECOMMENDATIONS
5.1 Digital Domination
Far and East should improve in social media marketing, as social media
is the future of marketing and a constant source of new customers.
Optimizing and securing social networks has the potential to
significantly improve business.
5.2 Market Expansion
Far and East could broaden its business in different locations by
launching franchises within four-season hotels or independently to
enhance revenue and draw a large number of guests.
5.3 Focusing on Market
The Far East could focus more on generation Z and millennials, assisting
businesses in attracting and acquiring a larger number of customers.
Furthermore, considering Bangalore is recognised as India's Silicon
Valley, there are a plethora of young IT workers aged 28–47 looking for
one-of-a-kind adventures. Thus, focusing on the gen z and millennial
markets of Bangalore could be beneficial to the far east.

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6. CONCLUSION
The report above discusses the strategic management of Far and East,
Four Seasons. A restaurant that offers casual dining This research
examined casual dining restaurants as well as the operation's customer
categories and target audience. Far and East's customers are Millenials,
Generation X, Generation Y, and Generation Z. The challenges of the Far
and East are unorganised market competitors offering nearly identical
menus and cuisine at lower prices, as well as competitors' greater media
advertising. Far and East does not have a solid foundation in social media
marketing. The restaurant, on the other hand, maintains precise hygiene
and grooming standards, with the establishment regularly making
attempts to train its staff. Furthermore, the restaurant's atmosphere
gives customers the impression of a charming and exotic casual dining
experience. Far and East's décor is designed in such a manner that the
ambience complements the cuisine to a large extent.

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7. Appendix
Appendix 2-5 are several checklists based on extensive research of
the restaurants.
On a scale of very bad, bad good and Excellent.
Appendix 1
Far and East Bangalore
Appendix 2
Appendix 3

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Appendix 4
Appendix 5
Appendix 6
Market Segmentation India food service Industry

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Appendix 7
Share of Organized and Unorganized Market
Appendix 8
Impact of Pandemic
Appendix 9
Quarter-wise Impact of COVID 19 on Food Services Market in India

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8. REFERENCE LIST
Businesswire.com. (2016) Fast Casual Restaurant Market will have an
Impressive Growth Rate of 10.38% in the US Until 2020, Says Technavio.
Available at:
https://www.businesswire.com/news/home/20161101006505/en/F
ast-Casual-Restaurant-Market-Impressive-Growth-Rate (Accessed: 01
April. 2022).
Chapman, M. (2019) Fast-casual consumers: Who are they? [online]
Available at: https://www.restaurantbusinessonline.com/consumer-
trends/fast-casual-consumers-who-are-they#page=2 (Accessed: 04
April 2022).
Escoffier (2020) POSITIONING STATEMENTS FOR RESTAURANT
MARKETING. Available at: https://www.escoffier.edu/blog/food-
entrepreneurship/positioning-statements-for-restaurant-marketing/
(Accessed: 02 April 2022).
Foodzania (2017) Indian Food Services Industry: Engine for Economic
Growth & Employment. India: Available at:
https://ficci.in/spdocument/20969/foodzania-2017-report.pdf
(Accessed:03 April 2022).
Hospitalitynet.org (2019) Casual Dining vs. Quick Service [online]
Available at: https://www.hospitalitynet.org/file/152003938.pdf
(Accessed: 02 April 2022)
Josiam, Bharath. (2015). Using Factor-Cluster Analysis to Segment
Patrons of Casual Dining Establishments in the United States. British
Food Journal. Available at: 117. 10.1108/BFJ-04-2014-0142.
Milano, Steve. (2022) what is restaurant Segmentation. Available at:
https://yourbusiness.azcentral.com/restaurant-segmentation-
23228.html (Accessed: 2 April 2022).

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Nielsen. (2019) Fast Casual Customer Profile. Available at:
https://www.cafebarbera.com/fast-casual-customer-profile/
(Accessed: 04 April 2022).
Stacey, Haas. (2020) 'How Restaurants can thrive in the next
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Statista (2019) Market share of organized restaurant and food service
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organized-restaurant-and-food-service-industry-by-type/ (Accessed:
01 April 2022).
Surbhi, S. (2022) Difference between organized and unorganized sector.
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organised-and-unorganised-
sector.html#:~:text=Organised%20Sector%20is%20a%20sector,not%
20registered%20with%20the%20government . (Accessed: 01 April
2022).
Toast (2022) What is casual dining? Available at:
https://pos.toasttab.com/resources/casual-dining (Accessed: 1 April
2022).
Williams, C. (2017) The Future of Casual Dining: What to Expect [online]
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