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Research Proposal Example on The Current Economy and Its Impact On Restaurant Industry.


The restaurant business is not a stable industry. From external factors like snowstorms to some internal factors like just one piece of broken equipment can affect the amount of business you do on any given day. These are just some of the many restaurant problems many managers face. According to National Restaurant Association twenty-five percent of restaurant operators said the economy is the number-one challenge facing their business, followed by food costs (22%), building-and-maintaining sales volume (16%) and recruiting-and-retaining employees (14%).

 Restaurant Background Priya Indian restaurant is a franchise restaurant and has four chain stores one in Hokitika, Frans Joseph and Greymouth and Westport. The owner and manager of the Westport branch, Mr Ramesh Alla has identified a few issues that restaurant is currently faced with. To investigate the issues to become Mission Statement, the restaurant promise is "Using only the finest quality ingredients to create classical and contemporary Indian cuisine with traditional methods.

Through primary research and an interview with owner, Mr. Ramesh Alla the following problems were identified. That the restaurant was not performing as  what is expected to proper hiring and training new employees. Advertising is of poor quality hence there is connection to maintain the loyalty of the employees.   The poor advertising factor is also related to the need to make an interactive website, because the current website of the company is old hence giving an impression that the company is not progressive.

To provide some solution to the problem the manager has conducted a study. The SWOT analysis has identified the businesses strengths, weaknesses. Strengths and weaknesses are those what happen internally within the restaurant. Some of the strengths are attributed to the front house service of the company.  The weaknesses are those that the restaurant still follows a traditional and old fashioned in catering services to the consumers.

On the other hand, opportunities and threat are those linked to external matters that have an impact to the organization. It was found out that the opportunity is the capacity of restaurants to adapt to the dictates of the restaurant industry. The threats is the losing the position in the business industry because of the emergence of newly and modern restaurants.

The hospitality industry demands special skills and qualities of its people, particularly in the area of catering services to the consumers. The restaurant must be able to incorporate the necessity of improve training and staff performance. Training must include intense motivation and the ability to make the employees to know the importance of the job and to work as a team. In addition,  the business must be well managed in order to create a sense of commitment and team spirit. Training gives managers a greater overall confidence and a better positive outlook. Profit Chain in which well-trained and engaged employees deliver outstanding service.

 Furthermore, the ways to increase customer is also vital because it could also be the way to see how customers are satisfied with the services prepared.   This can be achieved thru advertising primarily in the offer excellent friendly customer services.  Westport Newspaper Key messages in advertising: Quality,  Freshness, Affordable, Variety, Value. It is also necessary for the company to venture into another set or type of foods in order to give customers several choices because of variation. Customers enjoy the experience, become loyal customers, and positively recommend the restaurant to others, sales increase, profits increase.

 Information was gathered through research from the National Restaurant Association that publishes a monthly Restaurant Performance Index, which measures the health and outlook of the industry. Customer reviews from website: Interviews were conducted with owner, chef, and waiters of Priya Indian Restaurant.

In terms of confidentially, this document contains confidential information and it is proprietary to Priya Indian Restaurant. It is supplied subject to conditions, that it shall not, by way of trade or otherwise, be reproduced, resold, or otherwise circulated without prior written consent of the restaurant. The author will see to it that the information gathered will only be used for academic purpose.

It is the plan of the author that PESTLE will be used in order to give the study a concrete and specific details. PESTLE will help author to have the best basis for drawing a conclusion and recommendations. Furthermore, the author will also apply the SWOT Analysis, however, this analysis will be used in determining the strategy of the restaurant in dealing with problems and inevitable circumstance.


hton said…

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