Business Proposal and Sales Pitch restaurant fine dining segment Any successful business venture considers intelligent pricing as one of its core elements. The restaurant business has various pricing strategies available for them to choose although they need to carry out careful selection. A mis-step in choosing the right strategy can plunge the business into a big problem. First, the business could opt for price building. This feature allows customers to buy various items and services for one price. The restaurant could for instance offer combined meals dubbed a plate at a flat price.
It could for instance be half-size pizza, a burger, and half-a-litre of soda for a single price. The cost configuration of the restaurant will be such that offering additional service constitutes less when providing the second service independently (Cox, 1994). Another benefit derived from the same practice would be letting customers buy related services from the restaurant. The system allows clients to save on money by sticking to the restaurant when they purchase their meals. Bundling effectively raises the connections made by the restaurant with the clients. The business could consider using suggested prices from the suppliers of various products in this case considered the manufacturer’s proposed retail price.
The strategy helps the business to eliminate costs brought by pricing decisions. Other costs associated with proactive pricing decisions remain at large for the restaurant. The business should develop a winning restaurant business plan because it is an essential roadmap that drives the business into the future. In addition to offering direction, the business plan ensures that the planner puts into consideration all the opportunities and pitfalls of the prospective restaurant before it officially start operating (Gartside, 1987).
Preparing a winning restaurant business plan is the only significant ingredient in actualising the business. The greatest weakness of most restaurants is failing to make proper plans as they tend to quickly venture into markets. The restaurant requires well-trained staffs, a creative plan for marketing, and enhancing operational steps. To strengthen the business, the management will concentrate on the important strategies in the process of enhancing the degree of success. The restaurant business operates in an industry with other competing businesses.
Large economic patterns point to evaluating the stability of the entire business environment. Evaluating local trends entails patterns in the neighbourhood as well as the regional zones with immediate influence on the restaurant. The economic patterns of the target clients are also in this category. Global Economic Conditions The outcome of operations of hotel operations rely on numerous general and industry-specific characteristics, some that go beyond the control of the restaurant. Changes that influence operations of the restaurant are regional, national, as well as local economic situations. Others include customer preferences, and patterns in the spending of consumers.
There are other factors that affect ways through which consumers spend while at the same time determining the quantity of disposable income by clients. The factors include recessionary economic features, unstable economy, prolonged slowdown in the economy, high rates of unemployment, reducing wages and salaries, inflation, rising energy-products prices, and ever-increasing interest rates. Many times, these factors reduce the spending by customers. People tend to spend less when eating in hotels, which results in decreased income or earnings by the restaurant.
Increase in the price of natural gas, gasoline, credit card, electricity, and home mortgage in addition to the cost of borrowing exerts upward pressure on interest rates. In the process, the clients do not remain with bigger portion on disposable income. It explains the reasons behind reduced frequency in dining in restaurants. The Business Cycle Expansion The restaurant runs businesses in the current contemporary business environment it is therefore, faced with uncertainties. One of the features of the current restaurant business is the fluctuation of trends of economic operations in the long-run. The business cycle of the restaurant defines fluctuations that take place within the economy across many but countable years.
The management of the restaurant clearly comprehends that the life of the business will face several changes among them both economic decline and growth coming in different phases. Presently, the restaurant is in the expansion stage of the business cycle. The framework currently executed by the management keeps increasing the demand for consumer goods and more sources of capital. The entrepreneurs and the management are in the process of pumping more money into the business with the intention of utilising the opportunities that increases sales that result in enhanced profits by the business.
Some of the sources of extra capital sought by the management are from banking institutions that remain willing to grant loans at reduced interest rates because of the current status of the business. Increased interest in the goods and services offered by the restaurant has informed the management for the need to have more employees to serve the ever-increasing number of clients. Current Credit Conditions Statistics indicate that over the last four decades the restaurant industry showed three different business cycles.
The cycles came through from peak-to-peak and trough-to-trough. Nonetheless, the industry continues to enjoy high growth. The trend appears common in every five years from 1998. However, the expansions have differed in duration at a higher rate compared to the differences in the growth stages. The management of the restaurant takes into consideration the marketing environment before plunging into the process of developing new services for customers or products. Among them are tastes and trends, size of the budget, competitors in the business, and both legal and political influences.
The Sale Pitch Identifying the restaurant retailer services and products Developing brands through service and product positioning Benefits of the service to the customer Aligning the new brand in line with the image of the restaurant Deciding on the required action Highlighting market patterns that support the business case for Shelf Space Analysing both indirect and direct competition to the service or product Supportive features of the product Reasons influencing the buyer to get the service or product. Conclusion To run restaurant operations, the firm will employ people; buy equipment, and develop facilities to offer services.
The members of staff working in the restaurant have the capacity to produce more because they work in a team brought together by the restaurant. The management should provide sophisticated facilities to enhance their productivity. The restaurant should prepare training, education, and facilitate career building seminars to their employees as a way of improving their performance. The business firm should always put the customer first. Clients always remember a courteous and friendly worker as the experience of dining more than the food served to them.
It should be clear to the entrepreneurs that the hotel industry is not always gentle as such, it is essential to study competition, prepare for risks, and put in place means of running the restaurant smoothly. Comprehending the aspects of the restaurant business remains essential to a successful restaurant business. References Cox, W. (2004). Power and Profits: U.S. Policy in Central America. Lexington: University Press of Kentucky. Gartside, L. (2007). Commerce – A Guide to the Business World. London: Pitman Publishing.