Share
Explore BrainMass

new restaurant

Service Marketing

your friend seeks your advice as he is opening up a new restaurant this year.

a)Challenges that this service industry will face and the solution that the operator should be aware

b) making use of examples, assess the extent to which a good understanding of demand patterns and capacity constraints might help service managers improve the profitability and efficiency of their organization.

Use Harvard method of referencing

Solution Preview

a)Challenges that this service industry will face and the solution that the operator should be aware

One of the major challenges faced by restaurant operators worldwide is the rising cost of inputs, ie, commodities and food products globally, which is creating major pressure on the operating margins of restaurants. Even though the commodity prices have risen manifold in the last few years, restaurant operates have been not been able to pass on rising costs to the customers to retain sales volume in an already sluggish economy and thus, facing cost related pressures. The key solution that restaurant owners should be aware of two operate successfully in these tough times is to operate as efficiently as possible by implementing best practices in procurement, supply chain and inventory and utilize advanced technological tools to improve efficiency in these operations. Further, elimination of wastages and inefficiencies via sound planning, quality procedures and strict control mechanisms will help in overcoming issues related operating efficiency.

Credit issues is another major challenge faced by restaurant owners from two perspectives. First of all, restaurant owners will find it difficult to raise capital to meeting their expansion or working capital requirements in these tough times. In addition to tight credit, identity theft and regulations related to security of consumer's data provided to restaurants that accept credit cards will result in additional costs and risks for owners for complying to regulations. Therefore, it is essential for restaurant owners to plan for such capital requirements in advance before undertaking any major expansion plans.

Another major challenges faced by restaurants is to turn towards healthy menu. As more and more people in USA and globally are becoming aware of healthy, fat free food and adopting a healthy lifestyle and ignore high fat, unhealthy food, restaurants are forced to shift to healthy menu items. Even large restaurant chains like Mcdonald's have been criticized for their unhealthy menu and have been forced to offer healthy items and thus, it is important to recognize this trend and offer products that cater to the ever increasing pool of health conscious diners. Restaurant operators should offer an interesting and unique mix of healthy, yet tasty items on their menu to survive in this extremely competitive ...

Solution Summary

Your friend seeks your advice as he is opening up a new restaurant this year.

$2.19