From the scenarios, Lena explained to Chris and Erica that they need to determine how the surrounding restaurants in their selected location can impact their business. Suggest key steps they should take to make this determination, and recommend at least three strategies they can use to differentiate their business from the other restaurants.
From the case study, discuss two (2) major factors that contributed to the failure of the Borders chain, and suggest how those factors could have been avoided.
Determine how the surrounding restaurants in their selected location can impact their business.
The restaurant industry is highly competitive. Surrounding restaurants can offer competiton in the following areas :
1. Hostess service
2. Guest experience
3. Cleanliness of restrooms
6. Variety of cuisine
7. Quality of food and temperature
8. Cleanliness and Hygiene
9. Speed of service
10. Quality of service - efficiency in order taking, friendliness, appearance of staff, visibility and interaction
11. Promotional offers.
12. Unique themes
13. Parking facilities - valet parking, large parking area
14. Locational advantage - Near a major shopping hub, railway station, enroute to major destinations
In other words, if surrounding restaurants deliver a higher value to the consumer, footfalls to the restaurant will suffer, impacting revenues.
Suggest key steps they should take to make this determination :
Competitors are hungry for your customers. The restaurant must devote the time and energy to keep tabs on the competition. This will help them to know their strategy and anticipate their future moves. This way you can plan your own strategy so that you keep your customers, without losing them to competition. Here are some ways by which information can be gathered on competition :
1. Customers as researchers - You can train some employees to be market researchers. They can visit the rival restaurants and collect as much information as possible on the parameters mentioned above. They can also observe the restaurant from outside to see the kind of customers, the customer traffic intensity , the peak traffic timings, the locational advantage or other wise, and so on.
2. Visit ...
The article looks at strategies to research competitors in the restaurant business. The article also looks at the reasons for the downfall of the Borders chain of book stores.