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    The Restaurant Business

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    Factors in Business

    From the scenarios, Chris stated that there are many factors to consider related to starting a business. Discuss the key factors for consideration, and explain why you believe these considerations are important for Chris and Erica's vision for their restaurant business.

    From the case study, identify three (3) factors that contributed to the failure of Hostess Brands, Inc. and discuss what management could have done to address these issues

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    Solution Preview

    The key considerations in the restaurant business :

    1. Ambiance : A successful restaurant will have an ambiance that matches the segment that it is targeting. For example if you wish to attract children, then color ,fun and bubbling excitement should be the signature. An upscale restaurant on the other hand should have good lighting, soft music and high quality furniture, with good upholstery.

    2. Food : Food is very important , in a restaurant. Apart from the taste, variety, etc, again , the food should be in keeping with the image that it wishes to convey. For example a fast food type of restaurant need not have exotic food, but the food should be hygienic, tasty and fresh. Food should be exactly as described in the menu and cold, burnt, unappetizing food is a clear warning of failure .

    3. Staff and customer service :Friendly and efficient staff, who are in sync with the image of the restaurant are important. In today's fast lifestyle, quick service is always at a premium. Concern for grievances of the customers and a quick handling of the complaint , in a gracious manner is important. This could mean replacing a bad dish or offering a free dish instead. ...

    Solution Summary

    The article mentions the key considerations in the restaurant business. It shows how factors such as ambiance, cost, staff and food are key success factors in this business. The article also discusses the reasons for the failure of Hostess foods and how the liquidation could have been prevented by the company.