In the current report business plan is prepared on the restaurant. There is huge competition in the relevant sector and due to this reason it is very important for the new entrants to develop some competitive advantage factor in the business so that it can compete with the rivals. Main focus will be on cost control and making efforts to attract more and more footfalls from customer’s side. In this regard only from specific suppliers raw items will be purchased regularly so that more amount of discount can be received on same. Apart from this, small monument of waterfall will be prepared so that there will be center of attraction for the customers in the restaurant and in this way more customers will be attracted towards restaurant.
Restaurant business is one that is increasing at rapid pace in the UK. In the current business plan restaurant business related discussion will be carried out. Restaurant will be established in the Greenwich area of London in order to satisfy needs of the people. Tourism is the one of the major industry in the UK and every year number of tourists comes inbound and outbound which include businessman, students and those who like visit different place. Taste of people is different and due to this reason multiple cuisine restaurant will be opened. Under this variety of products will be made available to the customers at single place and in this way needs of all sort of people will be satisfied. One of the main challenge will be to ensure that good quality of edible item is available to the customers. In this regard an attempt will be made to ensure that best chefs are available to the business firm. At same time it will be important to control cost of the business. Hence, in this regard intern students will be kept by the firm as employees and by doing so cost of employee will be kept low in the business. This is the perfect strategy that can be followed to control and curtail cost in the business. In the current time period there are number of restaurants that are operating in the UK and are offering variety of dishes. Main thing that is observed is that in the London in most of restaurants specific sort of dishes are made available to the customers. For example if the restaurant is Indian then in that case it will offer only Indian dishes. Thus, strength of the current business plan is that at same place wide variety of dishes will be provided to the customers. This will act as USP or unique selling proposition for the business firm.
Industry and Market Analysis
Before opening a branch in the new business it is very important to understand the industry nature and conditions that are currently existing in relevant domain. In this respect there are number of tools that are used by the business firms like Porter five forces analysis etc. Porter five forces analysis for Redington restaurant is given below.
In the current time period, competitive rivalry is increasing at rapid pace in the London. It can be observed that due to increase in tourism rivalry also increased at rapid pace because in order to capitalize available opportunity people are opening many new restaurants (Mc Donald five forces analysis, 2017). Due to this reason competitive rivalry is increasing at rapid pace in the nation. It can be said that for Redington restaurant it will be very difficult task to open and operate new restaurant successfully in the highly competitive environment.
Bargaining Power of Buyers or Customers
There is high bargaining power of the buyers because already number of alternatives are available to them. If they identified that high price is charged by the one restaurant then they can approach other restaurants for getting food items at affordable price. Same thing applied in case of product quality, if customer will not get products up to required quality then in that case it can shift to another restaurant (Hyun, 2010). Hence, it can be said that bargaining power of customers is very high in the industry and it will be difficult for the Redington to create and retain customers in the business.
Bargaining Power of Suppliers
Bargaining power of suppliers is weak because there are number of entities that are supplying same sort of products to the customers. Thus, in case specific supplier sold raw items at high price then in that case firm can purchase same items from the other suppliers. All these things reflects that suppliers bargaining power in respect to Redington restaurant is very low and firm can purchase raw items from them at very low price.
Threats of Substitutes
Threat from substitutes is very high in case of the business firm. This is because there are wide variety of dishes that are available in the market in respect to Chinese, Indian, Mexican and British food. Thus, customers have lots of choices and according to same they can approach any sort of restaurant to eat fast food items. There is need to control threat of substitutes from the side of the business firm because in case there are large number of substitutes of the products it become difficult to capture the market in proper manner (Ramanathan and Ramanathan, 2011). Thus, it is very important to ensure that there are less number of substitutes of the product. In this regard some innovation can be done in the food items and by doing so different tests can be created.
The Threat of New Entrants
Threat from the new entrants is very high in the relevant industry. As it can be observed that there are ample opportunity that are available in the market. With entry of new restaurants opportunity for existing firms reduced to some extent. It can be said that there is very high threat from the new entrants. It is the innovation in product line or trick to attract customers by using which this threat can be reduced to some extent by the Redington r