Essay: Fast food restaurant for younger generation

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  • Subject area(s): Business essays
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  • Published on: August 12, 2017
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  • Fast food restaurant for younger generation
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My business idea is to open a fast food restaurant in which it is very convenience for the younger generation. The fast food industrial is growing and more people start to accept fast food as their daily meal basis. Although fast food industry is very competitive, but it is not enough to fulfill the demands for a large majority of people, so it is a great opportunity to start a business to supply and to meet customer’s needs. In this report, I will tackle various point on how to start this business and also evaluate the cost of the business in order to make a profit.

The goal and objective

The business goal is to get into the fast food industry and also create a strong brand within the industrial. There are several factors that are very vital in making a well-known brand.

Our product: We are a fast food restaurant and our food meant to be quick and convenience to customers. Our product mainly is burgers, chips, soft drinks, salad and dessert.

Our target of customer: For any business in the world there must be a certain segment of customer that the business is targeted in, for our business we are targeting the younger generation from the age of children to grown up adult that are in working force (Age from five to fifty), but we will also supply any customer that needed our product.

Competitors: In the fast food industry there are a lot of competitors such as Macdonald, Subway, Burger King, Jack in the box etc.

Micheal Porter’s five force

Micheal Porter’s five forces play an important role in every business. In my business, I have many supply choices so therefore my supplier have less power and control from my business. Buyer power have a great impact in businesses, in my business, we target several age group and there is a lot of customers in the market; So it is not easy for the customers to drive down the price of our products. Other things we need to concern from Micheal Porter’s five forces is the competitive rivalry, in fast food industry competition is always going on, for a new coming industry to compete with the large company, we must have better service or our price must be lower than them to create strong advantages over them. The food from my restaurant will be cheaper than another restaurant, so that we would have advantages against them. When the price of our products decreases, we must ensure that we produce the enough amount to overcome money lost ( Marginal productivity theory state that, by producing one more unit it will cost less than the previous unit). There are several threats of substitution in my business. Other fast food restaurant and small cafe could be a substitute of my business so therefore I must pick the right location in which there is no other alternative choices for the customer but only my restaurant. The last thing of the Porter’s five forces is the threat of new entry. Since the fast food industry is growing, there are a lot of people trying to start the business. This is a bad news to my business because the easiest the other get into the industry, the harder I can earn a profit. However, I can attract some existed consumers from another brand to my own brand by having better service, such as 24 hours, deliver services and cheaper product.

Business Model

A business model is a description or plan in which a company generate revenue and make profit from the operation. The basic level of a business model is producers making something and selling it directly to customers to make a profit. The business model is very vital for the company to determine the way they going to make a profit, different company have different business model to maximize their revenue by using model strategy. In my fast food restaurant, I am using Chain restaurant business model. When I first start this business I am just trying to introduce my brand into the market and set up a brand foundation to the market. Later on, I will start to open more chains so that my restaurants would be over the world. A chain business model operates typically under one main brand and spread the same consistent food and service experience to different geographical audience by opening more outlets.(4 Types of restaurant business model critical for success, 11 Jul, 2014)

The value proposition of my restaurant is to serve quick and also with a constant food quality. The menu of my restaurant also provides variety of food in which the meal is provided and also after meal dessert.

SWOT

Strength:

‘Cheaper food than another brand

‘Location; near university

‘a variety of food that include after meal dessert

Weakness:

‘New brand with no one knowing the brand

‘Lag of experience

Opportunities:

‘New food promotes in menu

‘Open more chains in the future

Threats:

‘Competitors such as Macdonald and Subway etc

‘Other new entrance in the fast food industrial

Financial Statement

For a new business to compete with the large company, we need to have an income statement for our company also the cost to run our business. In the first year my estimate cost of the business is 50000 pounds which include; rent around 19000 thousand pounds, electricity and water bills around 4000 pounds, 6000 thousand pounds for machine to run the business, 14000 pound for worker salary, 2000 pounds for administration, 2000 pounds for insurance, 3000 pounds for food ingredient. Our first year of estimated revenue is trying to have 30% of profits from the money I invested on the business. The money I have to open the business mostly from my saving (60% is saving, 30000 pounds), The other part of the money is from bank loan (40% of 50000= 20000pounds bank loan)

Resonating Focus model:

Resonating focus model is basically build up of value proposition around just a few key of elements that matter most to their customers and they demonstrate the value of their offering in such a way that displays a ‘sophisticated’ knowledge and understanding of their customer’s priorities.(Fergus Macdermott, 2004). It is very important for a business to understand the behavior of customers and what they really want. During a purchase, customers develop an expectation of value and then proceed to make a purchase based on their perceiving of the product or service has to offer in terms of benefits compared to the total cost involved. Customer value is present when the total experience of the buyer is favorable when compared with their expectations and perceptions of similar products or services available from competitors. Suppliers offering will provide a range of benefits to the customers, but the chances are so will be competitors. The key question of this situation is, “How does your value offerings compare in the eyes of your customers’ with those of the next best alternative?” In my restaurant, I would provide a variety of food and it will be very convenience for the customers. My business could benefit consumers by providing them wide range choices of food and 24 hours services. Most fast food restaurant just opens in day time which means people can no longer buy fast food at night, but our restaurant could give those people the opportunities. Our fast food restaurant is a little bit different from the other restaurant, as we all know most fast food restaurant just serve the meal, but they are not thoughtful enough to consider what the consumers really want. My business is a combination of cafe and fast food, so consumers can choose what they really prefer.

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