Food and Beverages Management The Australias Economy

Question: Discuss about the Food and Beverages Management for The Australias Economy. Answer: Introduction: As mentioned by Mok et al. (2013), the Australias economy and the social life are very much dominated and consists of a numbers of restaurants, fine dining restaurants, cafes and different other hospitality service providers. A major and critical part of the visitor economy mainly consists of the hospitality services and it contributes about $134 billion to the Australian economy each year (Buhalis, and Crotts 2013). The restaurant industry of Australia mainly runs on a scale of small business except for a few fine dining restaurants and big hotels (Brotherton 2012). In a survey recently it was revealed that in Australia there are even more than 33,000 hospitality organizations, out of which about 76% are small business, that contribute over $21.1 billion to the Australian economy annually and provide about 666,300 out of the total job in the country (McManus, 2013). However, the interest and the opening of new restaurants by the restaurant operators for business transactions are being protected by the Australian competition policy. As most of these restaurant businesses are on small scale therefore, the level of competition in this business sector is very high (Yen and Teng 2013). Figure 1: Total food and beverages industry of Australia. (Source: Thornton 2016) Scope of the business: Name and the objectives of the business: The business concept of the hospitality service industry that has been chosen to be set up is a fine dining restaurant with the name of The Global Fantasy Restaurant. The main objective of any restaurant is however, profit generation (Han 2016). Apart from this the other main objectives of this business sector are: Profitability: For almost all the organization the generation of profit is the first most objective. Therefore, for the sector of restaurant and services also the main aim is to earn profit. As stated by Su et al. (2013) the more costing that incur in the restaurant are due to the food and the labour cost. The aim of any business is to keep the incurring costs as low as possible that too without making any compromise with the quality of the foods and service provided (Menp and Brandt 2016). The less would be the incurred cost, the more would be the profit level for the restaurant. This would therefore, help the company in the process of profit maximization (Wellton et al. 2016). Food: As stated by Chen and Elston (2013), after the maximization of the profit, according to Ko (2013), the next objective that requires fulfilment is the providing the customers with the best and the high quality level of food that would be served. The variety of foods that the restaurant would serve depends on the type of its joint (DiPietro and Gregory 2012). As this is a fine dining restaurant of high quality services, therefore, the menu of the food and the food quality requires being the best. However, the restaurant must create dishes and organise its price according what the customers are ready to pay in return (Namkung and Jang 2014). Dining experience: As mentioned by Gehrels (2013), the dining experience accounts for the total experience of the customers that he gains within the time that he spend in the restaurants. People do not only go to restaurant just for food, the ambience and other reasons such as relaxation, convenience and luxury is also a few things that are considered. This being a fine dining restaurant needs to fulfil the objective of providing its customers a complete high level dining experience (Frost et al. 2014). Longevity: With all the other objectives, also comes the objective of longevity. If the restaurant achieves all the other goals mentioned above, it will obviously achieve this objective. If a restaurant provides good food, make its customer happy with its services, earn profit and builds reputation then it will survive better and longer in the market (Jeong 2014). Mission statement of the business: The main mission for The Global Fantasy Restaurant is To sell appetizing and remarkable food and drinks to its customers. To provide an utmost professional and gracious service and dining experience to its customers. To use the food quality of highest standard quality, seasonality and the freshness. To create a unique technique of cooking that would combine both the modern and the traditional art of cooking. To have customers loyalty. To provide all the co- workers and all who are associated with the restaurant with a friendly and rewarding environment that would encourage longevity and growth employment of the restaurant. To maintain a clean, hygienic and a well maintained environment within and also around the restaurant. To ensure good quality food served to the customers at a fair price. To treat all the staffs of the restaurant and the customers with respect and dignity and also to thank each and every guest for the given opportunity to serve them. The constructed menu: Drinks: Top Cocktails of the House $50-$150 Iced Tea- Scarlet Rose Flavoured Bitter Orange Negroni Spritz The black Cherry The Trail mix Seeds of spring berry The Mock tails: Alcohol free love $30-$35 Minty melon Wild green Lime Apple Passionate passion fruit Plum love Ruby heart Starters: $25-$30 3 ways of the coffin oysters in guacamole sauce of Bay Roasted Quail Breast and egg with mushroom Rosti Smoked mackerel with bchamel sauce Pork and chicken sausages with caramelised Onion rings in oyster Seasonal vegetables with Heirloom potatoes and your choice of mushroom Main Course: $36-$45 Raw smoked Blackmore wagyu with soured cream Organic green rice in stone pot with tofu, mushroom and spinach Somme lad bred chicken with morel and asparagus Double baked beef fillet with oxtail bourguignon and pudding Pork neck shitake with roasted prawn and kohlrabi fondant Dessert: $30-$40 Mandarin and grapefruit brulee Roasted fig and goat cheese souffl with sweetened whipped cream Nine textured chocolate pancake with chocolate sauce and whitened cream Cheese of customers choice with lavash cracks/ flat bread/ soft pita breads Buffet menu: $200 per person The buffet menu includes a cocktail, two starters from the above starter menu, two of the above main courses and any of the above deserts. Special Buffet menus are available on special occasions. The scope of the business: PESTEL definition: The analysis of all the different factors of the external macro- environment which has an effect on the activities of the firm is known as PESTLE analysis. These external factors are beyond the controlling capabilities of the firm and generally act as a threat to the sales of the firm (Team 2013). Effects of the business: Political 1. Opening and closing hours of the restaurant. 2. Taxation policy of the country. 3. The wage amount of the staffs. 4. Political stability. 5. Liquors serving permission from government. Economic 1. The economic growth rate of the country. 2. The income and the living standard of the countrymen. 3. The rate of inflation. 4. The price variation in the food markets of the nation. Social 1. The population Growth of the restaurant area. 2. Health consciousness and hygiene maintenance. 3. Location of the restaurant- distance from the main Town Centre. 4. Preference of people to dine out. Technical 1. The special equipment available to make work easy and faster. 2. If live concerts and music is available then equipments required for them. 3. Requirement of general kitchen machines like fridge, oven, microwave, automated gas chimney and others. Environment 1. Cleanliness of the restaurant and the area around the restaurant. 2. Recycling 3. Usage of environmental friendly packaging materials. 4. Home delivery transportation costs. Legal 1. The laws related to consumer services. 2. Food and beverage laws of the nation. 3. Minimum age group for serving of the wine and drinks Table 1: PESTEL analysis to show the effects of the business (Source: As created by the author) Industry competitors Analysis: Porters 5 forces diagram: Threats of suppliers 1. The Restaurant requires maintaining good Relationship with its suppliers. 2. The suppliers allow the restaurant management to buy Bulk quantity of goods at lower price because of the quantity purchase. 3. The suppliers give the management of the restaurant higher purchasing power. Competition Rivalry 1. It is a small scale business industry. 2. Being a small scale industry, the entry in the market is easy and therefore there is high level of competition. 3. This particular restaurant, as it is new in the market, it may face problems in start up and it may also find it difficult to survive in the market. Threats of new Entrants 1. It is a small scale business and entrance is not difficult therefore, high competition. 2. Good and comfort level high requirement. 3. No restrictions new entrants. Threats of customers 1. Customers have high mobility chances 2. Customers purchasing power. 3. Satisfaction of customer is important Threats of substitute 1. No such threats of substitutes. Table 2: Porters 5 forces diagram to show the Industry competitors Analysis (Source: As created by the author) Segmentation of the market: Market segments: The market segmentation for The Global Fantasy Restaurant is as follows: Business people Business people often stay out for work and therefore, need some good restaurant to eat at. The restaurant needs to use proper marketing strategy to attract more business people. Couples The couples make the more percentage of customers at any restaurant. Therefore, they form an important part of the segmentation. Family A restaurant is a place the families come for a happy meal. Therefore, satisfying the family customers are utmost important. Youngsters The school and college going people are found everywhere in the restaurant but as this is a fine dining restaurant, the amount of students percentage here is less. Single customers The single customers, as are without a companion, are more attracted to a restaurant that is well decorated to enjoy themself. Tourists A city is always has a tourists and tourists are generally attracted towards a restaurant that provides a variety of regional and other cuisines. Table 3: Market segmentation for The Global Fantasy Restaurant (Source: As created by the author) Marketing Concept: The 7Ps: The 7Ps of the restaurant marketing concept are: Product Price Place Promotion Physical environment Process People Table 4: The 7Ps of the restaurant marketing concept (Source: As created by the author) Explanation: Product The type of food products and menu that the restaurant is proving has a great impact on the customers who are attracted to it. Price The price of the food of the restaurant also influences its customers. If the price of the restaurant is high then its customers would be less but if the price is reasonable then more customers would visit the restaurant. Place The location of the restaurant determines its customers. More near to the town centre, the more would be the customers visiting. Process The process of the preparation of food, the service giving process and the presentation of the food is also very important aspect fir the customers attraction. Table 5: Explanation of the 7Ps of the marketing concept (Source: As created by the author) Discussion of the business success: SWOT analysis of The Global Fantasy Restaurant: Strength 1. A profitable business organization. 2. The main strength is providing best quality foods and luxury services to its customers. 3. It is a common industry therefore; the staffs are familiar with their job profile and work. Weakness 1. As a new business there will be problem in establishing the business. 2. Being a new restaurant it is difficult for the management to forecast the customer level and accordingly do food preparation. Opportunity 1. A new restaurant has loads of scope to improve according to the customers demand. 2. It has good chances of being a competition to the existing restaurants in the market. Threats 1. The restaurants services may not be liked b y the customers. 2. The older restaurants may be a tough competition. Table 6: SWOT analysis of The Global Fantasy Restaurant (Source: As created by the author) Staff management team: Organization structure: Figure 2: Organization structure of The Global Fantasy Restaurant (Source: As created by the author) Assessment of staffs required for the business handling: 1. Restaurant manager 1 2. Headwaiter 1 3. Station Headwaiter 1 4. Reception Headwaiter 1 5. Buffet managers 2 6. Beverage manager 1 7. Bartenders 5 8. Drinks runner 10 9. Station Waiter 2 10. Assistant Station Waiter 1 11. Waiters 16 12. Apprentices 12 Total staffs requirement 53 Table 7: Assessment of staffs required (Source: As created by the author) Required resources: Tangible and Intangible resources: Tangible resources 1. Salaries and the wages of the staffs and the chefs and the bartenders. 2. The raw materials costs. 3. Culinary costs. 4. Maintenance costs. 5. Other miscellaneous costs Intangible resources These costs are the cost that arises during emergencies. There is not fixed case for such resources. Usually from the profit, a part is kept aside as general fund and is during the time of emergency. Table 8: Tangible and Intangible resources (Source: As created by the author) Budget: Budget management for the business project: The Budget costing for the start up the Global Fantasy Restaurant: Particulars Amount $ Rent: Security deposit 12000 First month rent 10000 Decorative Costs: Construction costs 312000 Tables and Furniture 50100 Table wares, cutlery, kitchen wares and kitchen equipments 85000 Food and Beverage Costs (Approx) 15000 Other Miscellaneous costs: Insurance of the Restaurant 5000 Permits and License 5000 Technologies of the restaurant 15000 Internet Telephone services 38000 Marketing cost: Menu cost 1500 Fliers and coupons 4000 Business card 100 Advertisements Restaurant opening function 16200 Customers service 5500 Total 574400 Table 9: Budget costing for the start up the Global Fantasy restaurant (Source: As created by the author) Finance: Finance for the project: The main financer of the business would be: Investors: According to Jefferds (2015), the investors are the person or any other company that may allocate their capital in some other institution or company with a view point of some expectations of financial returns in the future. The people or any organization that would invest in this restaurant would be a investor in the restaurant and is liable for a share of profit from the restaurant (Yang 2014). Borrowers: The borrowers are the person who obtains some amount of fund from an individual or a business for a specific period of time with a promise of repaying the debt (Brown 2016). Conclusion: From the above report, the different analysis of the business market analysis, assessments and the calculation of the budget that is required for the setting up of a new business, the different criteria and the costing have been realized. The above report shows the costs, limitations, chances of survival and other concepts of the opening of a new restaurant in Australia. Reference: Brotherton, B. ed., 2012.International Hospitality Industry. Routledge. Brown, K.D., 2016. Financing for Small Southern Style Restaurants. Buhalis, D. and Crotts, J., 2013.Global alliances in tourism and hospitality management. Routledge. 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