Business Strategy Restaurant Industry

Question: Discuss about theBusiness Strategyfor Restaurant Industry. Answer: Introduction Restaurant industry is a competitive industry and each restaurant has to be devised with an innovative business strategy to stay ahead in competitive advantage. This assignment focuses on a restaurant of Singapore namely The Summer Pavilion, and analyses its business strategies and critically evaluates its business. The mentioned restaurant is a fine-dining restaurant of Singapore of world class repute and is in competitive leadership among the contemporary restaurants. This restaurant offers mainly Chinese and Asian food and has a long term repute for customer satisfaction and customer retention. This assignment highlights the various business strategies that the restaurant adopts and critically analyses the overall business of the restaurant. Main Body The Summer Pavilion is a sophisticated Cantonese fine Dining restaurant, under the restaurant industry. The design of this restaurant is an attractive one and attracts a huge number of customers (Blackburn et al. 2013). The interior of the restaurant is decorated with selective and sophisticated furnitures and cutleries to offer an innovative and pleasant experience to its customers. Moreover, the brand image of the restaurant is such that the customers are attracted towards the restaurant. The various business strategies adopted by the restaurant to achieve the level of success which it has achieved are as follows: Attractive marketing: One of the most important business strategies adopted by Summer Pavilion is attractive marketing. According to Grant (2016), Marketing plays an essential role and is an important business stagey adopted by the restaurant. Marketing includes the use of social media, print media as well as broadcast media. Use of hoardings and placards are important marketing tools. Summer Pavilion has a strong marketing team that has given a boost to the business of the restaurant (Grant and Jordan 2015). Loyalty programs: Loyalty programs include giving attractive discounts and offers to the loyal customers. This is an effective method of boosting the business strategies. The loyalty programs are important since it helps in customer attraction as well as customer retention (Hoffman et al. 2015). The customers are also attracted towards these offers and customers are attracted towards the restaurant and as a result business receives a boost. Summer Pavilion promotes the loyalty programs and offers various discounts to the loyal and regular customers. Attractive facilities: Various attractive facilities such as valet parking, free Wi-Fi, baby sitters and wheel chair access are some of the factors that are important business strategies. Customers prefer to choose restaurants with these facilities. Hence, incorporation of these facilities in the Summer Pavilion attracts more customers and results in customer retention as well. However, some of these facilities might not be available all the time. This might result in customer defection and the customers might prefer other restaurants over Summer Pavilion. Reasonable price: Price is an essential factor for business strategy. The price of the products of the restaurants has to be reasonable such that it is affordable to the people around the locality. The popularity of the restaurant owes to the factor of reasonable price. The restaurant offers a large variety of food at an affordable price. The price has to be reasonable enough such that the local people might be able to afford the food obtained in the restaurant. The price being unaffordable is a negative publicity for a restaurant and hence has to be avoided by the restaurant. Large variety of food: Summer Pavilion offers a large range of foods and beverages for its customers. The large variety of food includes Chinese food, Asian food as well as Cantonese food. The customers are easily attracted towards this restaurant since the customers can order from a large variety of foods and beverages. The variety of the food is available everyday and hence each of the customers can access all the food items every day. Use of good quality of raw materials: The quality of food as well as the raw materials used by the restaurant is of superior quality. This assurance from the restaurant is another essential business strategy that attracts more customers as well as retains them (Henderson 2016). This is an important quality and provides competitive advantage to the restaurant Summer Pavilion. The raw materials are obtained from organic farms and hence they are fresh and of good quality. Ambience: The ambience plays a pivotal role in case of the restaurant sector. The ambience of a restaurant has to be a pleasant one and the customers need to have a pleasant experience (Sabir et al. 2014). In case of Summer Pavilion, the restaurant offers a pleasant ambience to the customers. The main dining hall of the restaurant offers both private dining as well as group dining facilities. Seats are available for intimate gathering as well as business meetings with prior reservation (Thompson et al. 2013). This private dining restaurant encompasses more than six private dining rooms that are named after plants and trees. Moreover, each of the dining rooms are equipped with imported wines and liquors. The ambience is even more boosted with LCD projectors. A tea saloon within this restaurant is an add-on and an innovative attraction for the customers. Sending out newsletters: Sending out newsletters to the customers and updating them at a regular basis is an essential business strategy. This strategy is successfully applied by the restaurant Summer Pavilion and the business gets a considerable boost using this strategy (Leonidou et al. 2015). This is an important initiative as the customers are made aware of the activities and events taking place in the restaurant. Competitive edge: The competitive edge of Summer Pavilion is the menu and its taste. The wide range of menu, along with attractive price and mouth watering taste provides a tough competition to the contemporary fine dining restaurants of Singapore (Spender 2014). Developing brand identity: Developing and maintaining the brand identity of the restaurant is an important business strategy and has to be given adequate importance by the restaurant (Verbeke 2013). The brand identity is developed in a long period of time with customer loyalty as well as good will. This has to be maintained and retrained by the restaurant such that the brand identity as well as the goodwill is successfully maintained. Conclusion Developing and maintaining an appropriate strategy for a business is an essential activity. For a reputed restaurant like Summer Pavilion, retaining its good will as well as its customers is important. The various strategies such as Attractive marketing, loyalty programs, developing brand identity, competitive edge and sending out newsletters are key business strategies that have made the restaurant a reputed one. However, it could be recommended that customers feedbacks should be collected at a regular basis and the changes that are feasible by the restaurant should be incorporated. This strategy might prove to be an effective business one and enhance the business of the restaurant. Thus, it might be concluded that by adopting the appropriate business strategies, success among the restaurant industry is achieved as seen in the case of Summer Pavilion Singapore. Thus, this assignment has successfully evaluated the business strategies of the mentioned restaurant highlighting the essen tial strategies resulting in the success of the restaurant and offering a tough competition to its competitors. References Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics.Journal of small business and enterprise development,20(1), pp.8-27. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Grant, R.M. and Jordan, J.J., 2015.Foundations of strategy. John Wiley Sons. Henderson, J.C., 2016. Halal food, certification and halal tourism: Insights from Malaysia and Singapore.Tourism Management Perspectives,19, pp.160-164. Hoffman, K.D., Kelley, S.W. and Rotalsky, H.M., 2015. Restaurant Service Failure and Recovery Analysis. InProceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference(pp. 193-193). Springer, Cham. 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