You are interested in opening a restaurant in your town. What would you call it and what would be your specialty? Go through the steps in the strategic planning process shown in your Chapter 5 reading, Exhibit 5-7. Focus on conducting a SWOT analysis of the local restaurant market, identifying and evaluating alternatives, and selecting a target market and a retail mix for the restaurant. If you’re feeling super creative, give us a visual of your signage or menu (not required, but fun if you do).
Step 1- Define the Business Mission
My business, The German Table, is a restaurant which serves authentic, home-style German food in Pueblo, Colorado. We will also have a small kiosk at the front of the restaurant, where customers can purchase our homemade sauerkraut, bratwurst, and jams. Our mission statement is simple: “We provide an authentic family-friendly German lunch and dinner experience.”
Step 2- Conduct a SWOT analysis
Strengths: Financial resources, Great location on the Riverwalk, Unique and delicious food not offered elsewhere in Pueblo, Great partnership with German food distributor offering exclusive relationship in our area. We have the newest, most updated cooking machinery and our lease is locked in at a good price for 24 months. Great management.
Weaknesses: Name recognition isn’t established, several other restaurants on the Riverwalk with similar food prices, new type of cuisine to the area (will it be well-received?). All servers and hosts are new, still learning the menu.
Opportunities: There is no other German restaurant on the Riverwalk, and only one other in all of Pueblo, with a much higher price point. We could be the pioneer in family-friendly German cuisine. Target market (families with children) make up the largest demographic in Pueblo.
Threats: Several vacancies near us, so someone else could open up a restaurant nearby.
Step 3- Identify Strategic Opportunities
Offer our popular (in the market test) condiments such as sauerkraut, jam, and sausages for sale to dining customers and walk-in customers.
Sell lower-priced menu items.
Open second location in Pueblo West to serve additional customers.
Option to lease space next to ours, in order to expand restaurant size.
Step 4- Evaluate Strategic Opportunities
Condiments. Market Attractiveness- High, Competitive Attractiveness: High
Lower prices. Market- High, Competitive: Medium
2nd location. Market- Medium, Competitive: High
Expansion: Market- Medium, Competitive: Low
Step 5- Establish Specific Objectives and Allocate Resources
The best investment decision is to go with a single restaurant with the small addition of a small kiosk in front to sell retail food items. This will cost approximately $5,000 for the kiosk and $5.000 for additional food costs and packaging, and will increase revenues by 10% in the first month and 20% by month 3.
Step 6- Develop a Retail Mix to Implement Strategy
The 6 Ps will be used to develop my retail mix:
Price- Average cost of an entrée is $11, children’s menu items (drink, mini entrée) is $5.95.
Products- Reuben sandwiches, bratwurst entrée and bratwurst sandwiches, German chasse soup, and roulade.
Promotion efforts- Advertisement in local newspaper, radio advertisement
Personnel- Family-owned and operated, 5 servers with knowledge of background in German restaurants/food
Presentation-Traditional German décor, focus on German soccer throughout the restaurant.
Place- Located in Pueblo, Colorado on the Riverwalk.
Step 7- Evaluate Performance and Make Adjustments
First evaluation will be done at the end of month 1, adjustments to menu prices and items will be made according to evaluation.