Managing a Restaurant: Business Model

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Customer Segments

Among the key target customers, middle class families, office workers and students can be identified.

Early Adopters

The ideal customer for the company to work with can be characterized as the person concerned with healthy eating and the one, who attempts at reducing the possibility of developing diseases due to bad habits.

Problem

An overview of the existing fast food companies has shown that most of the food provided within the industry is highly saturated in fats and other nutrients, which have a deleterious impact on people’s health. Among the key ones, the following issues deserve to be mentioned:

Threat of obesity due to the low nutritional value, as well as increased high fat and cholesterol rates;
Threat of a cardiovascular disease due to high fat saturation (Mytton et al. 2).

Though not numerous, the specified factors still make the use of fast food rather questionable in terms of the consequences for the health of the person consuming it.

Existing Alternatives

Though the amount of companies, which serve home cooked meals, is quite limited, they

Unique Value Proposition

Home cooked food, in its turn, does not contain the elements mentioned above. Therefore, it is assumed that the existing niche for home cooked food can be filled successfully.

High-Level Concept

The organization in question, therefore, will represent the McDonald’s, the KFC or the Burger King for those, who are willing to eat not only cheap, but also healthy food.

Solution

A closer look at the subject matter will show that the harm, which is caused by fast food, occurs due to the methods of cooking adopted in the industry. As a result, the fast food encourages for an increase in the calorie intake. The innovative approach adopted by the company in question concerns refraining from using trans-fats, as well as incorporating reasonable amounts of salt into the dishes cooked. Specifically, butter, olive oil and coconut oil deserve to be mentioned as the key ingredients of the food served by the company.

Channels

The food produced by the company will be distributed to retailers in the local shops, which are going to be a part of the company’s restaurant chain. The principle, according to which the food will be supplied to the end customer, will be similar to that one used by the aforementioned rival companies (e.g., McDonalds, Burger King, KFC, etc.).

It is also suggested that the food produced by the organization should be available in the local shops; therefore, the approach involving the introduction of retailers into the channel list should be viewed as an opportunity.

Revenue Streams

Among the key sources of revenue, the profit obtained from selling the fast food products to the customers should be listed.

Cost Structure

The fixed costs include the rent for the premises and equipment, as well as the utility bills, property taxes, insurance and the staff’s salaries. Among the key variable costs, direct materials, commissions and freight out costs deserve to be mentioned.

Key Metrics

In order to evaluate the efficacy of the business, one will have to keep an eye on the sales revenue; it is expected to reach the mark of $2,000,000 within the first year of the company’s operations. In addition, the customer retention rates and the gross margin size should be incorporated into the company’s analysis (Stahl et al. 47).

Unfair Advantage

The lean business model, which will serve as the basis for the business to evolve, can be considered the company’s unfair advantage.

Works Cited

Mytton, Oliver, Dushy Clarke, and Mike Rayner. “Taxing Unhealthy Food and Drinks to Improve Health.”BMJ 344.e2931 (2012):1–7. Print.

Stahl, Florian, Mark Heitmann, Donald R. Lehmann, & Scott A. Neslin. “The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin.” Journal of Marketing 76.1 (2012), 44–63. Print.

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