Business plan for a casual-elegant steakhouse in Charlotte

Restaurant

The creation of a steak house restaurant in the area of Charlotte, North Carolina appears to be a good business initiative taking into consideration the conditions of the market and not only. Charlotte is an extremely well developed region from an economic point-of-view. The restaurant business is profitable and the market appears to be expanding. In addition, the local authorities support the development of businesses in the area since they believe everyone will benefit from increased profits.

The competition is pretty harsh in the area, since there is a large number of restaurants covering all types of food, from exotic to local. There are other steak houses, but the one which is to be created will position itself differently, as a casual- elegant restaurant where people can enjoy high quality meals and an exquisite atmosphere.

Additional services such as cocktails, theme parties, business lunches and dinners can be organized on demand and the menu can be adapted to the requests of the clients. The restaurant will provide home delivery for the areas surrounding it.

The company will try to get involved in the life of the community, and will promote itself in the local media in order to increase its popularity and achieve the fidelity of its clients, fighting the threat represented by the competition.

Situation analysis.

When creating a marketing plan, it is highly important to have as much data as possible regarding the business idea which one wants to focus upon. From this point-of-view, one needs to know the key aspects which characterize the market. This kind of data provides one with the possibility of a better understanding of the opportunities which might come along, as well as of the existing threats. This is how the situation is in the case of the Charlotte area in North Carolina, the area which has been chosen as a location for the building of a steak house restaurant.

Market Summary. Target markets

The first thing that one needs to decide when starting up a business is represented by its target customers. Only by knowing what your potential clients would like to buy can you develop a product/service suitable for their needs and wishes. The target market in this case is rep[resented by the inhabitants of Charlotte as well as by the people traveling in this area.

Market demographics

Geographics

Charlotte is one of the largest cities from North Carolina. It is situated in the south-central part of the state and it has a surface of 629 square kilometers. As far as the climate is concerned, Charlotte is part of the humid subtropical area, which means that people living there enjoy mild winters and high temperatures summers. Ballantyne is an upscale area, located along the border between south and north Carolina.

Demographics

According to demographic data from 2005, there are about 610,949 people living in Charlotte. The population density is shown to be 861.9/square kilometer. There are 230,434 housing units and the average density is that of 367.2 / square kilometer. Almost 60% of the population is white, about 30% is black, while the rest includes people belonging to the Asian and Hispanic races.

Behavior factors

Charlotte is known to be a financial center of big importance in the United States of America.. The banking industry has recorded a significant development in this area, which has had direct consequences upon the development of the area, also influencing the factors related to consumer behavior. An increased level of living influences the standards which people expect from the services and products which they acquire.

From this point-of-view, it is safe to say that people expect good food when it comes to restaurants, including steak houses, paying an increased attention to quality. Another consequence of the development of the banking industry in the area was the increase of immigration.

It is also important to mention that in Charlotte, business is encouraged and sustained since it is viewed as a source of income and further development for the area. From this point-of-view, it is important to underline the existing collaboration between the public and the private sectors.

Market needs

As it has been mentioned before, the local authorities encourage the development of businesses in the area because they believe they represent a means of supporting the financial development of Charlotte. The restaurant market is already highly developed in the area, with a lot of restaurant types having already been open in Charlotte and the surrounding areas.

Market Trends

The restaurant market in the area has developed together with the area, from an economic point-of-view. This meant that the desires of the customers included all types of foods and a large variety of services. One can find anything from small restaurants serving traditional foods, to all sorts of fine dining locations.

Market growth

The market seems to be developing and has not reached maturity yet. This means that the growth potential exists for the newly created businesses as well. This can be considered an opportunity for the steak house restaurant. In addition, the business can also take advantage of the fact that the local authorities support the development of businesses in the area and the are is economically developed.

SWOT Analysis

Strengths

Setting up a steak house type restaurant is a business idea which benefits from various strong points. These aspects derive from the overall situation. One of the strong points that can be underlined in the case of this restaurant is represented by the types of foods it offers. Another one is represented by its location in a region which is highly developed financially.

Weaknesses

There are however weak points regarding the creation of a steak house restaurant in this area. The main weakness is represented by the fact that the restaurant is not well-known yet.

Opportunities

One of the most important aspect which need to be taken into consideration when discussing the setting up of a business, regardless of its nature is represented by the opportunities that the market provides. From this point-of-view it can be stated that the steak house restaurants benefits from the opportunity represented by its location.

Regions which are highly developed from a financial point-of-view attract people who can afford to spend a lot of money. Food is first and foremost a necessity. Thus, a restaurant, if well managed, has a strong chance of becoming a profitable business.

Another opportunity that the restaurant has, is to promote itself intensively enough to become popular among the locals. A further opportunity that it could grab is represented by the various offers it could offer to customers, in terms of dishes and special recipes. A final opportunity is represented by the support that the local authorities are willing to offer for the development of the business. A further advantage could be represented by the prolonged schedule that the restaurant could have. In this way, it could attract customers who are travelling at night or wish to have a late night snack.

Threats

The main threats are represented by the competition. There are numerous restaurants in the area offering a large variety of products and services. There are more than ten restaurants included in the fine dining category, such as Carpe Diem or Noble. There are several restaurants aiming to offer services for the entire family (children included), while others offer Japanese food. There are also numerous restaurants offering typical cuisine.

Competition

The competition is represented by the numerous restaurant which already exist in the area. They can be divided into two categories. On the one hand, there are the restaurants offering typical cuisine. On the other hand, there are those restaurants where one can eat a variety of foods, from Japanese, to seafood or all sorts of fine dishes. The direct competition comes from the restaurants offering typical dishes. However here are ways through which the new restaurant can impose itself on the market.

Product offering

The restaurant offers will include mainly dishes based on steaks. People will also be able to enjoy various types of appetizers, as well as salads, entrees, vegetables cooked after special recipes and also deserts. People will be able to make reservations there, by phone and also by using the internet.

The restaurant will have a private room where people can have business lunches and dinners, in an environment providing them with a bit of extra privacy. Parties can also be organized in the restaurant, at people's request. A karaoke night could also be organized if it proves to be attractive for the customers. Special nights with stand up comedy or various events could also be organized, so that the restaurant will get involved in the life of the community. For example, the restaurant could mark various events which are important for the community by organizing a special night dedicated to it.

Key to success

There are several factors which are important for the successful functioning of the restaurant. The first one is represented by the quality of the products and the services. There are numerous restaurants, many of them steak houses. One of the things that will make a difference for the customers is represented by the quality of the food, which needs to be fresh, first and foremost, and tasty.

The good quality of the food also refers to how tasty the dishes are.. From this point-of-view, it is highly important for the restaurant to have a skilled chef. The recipes that the restaurant offers can represent an important opportunity. Steaks are more or less the same in all the restaurants, but the manner in which they are cooked as well as the side dishes can really make a difference.

A third factor that can contribute to the successful functioning of the restaurant. This factor is represented by the quality of the services. One may come to a restaurant to enjoy the good food there, but he or she will surely not come back if they have to wait an hour to be served. The attitude of the restaurant staff as well as the atmosphere which they manage to create are key elements for the successful functioning of the restaurant. From this point-of-view, it is safe to say that the restaurant needs to have an efficient Human Resources policy, being able to motivate its employees properly.

A further factor that can contribute to the success of the business represented by the steak house restaurant can be found in its physical appearance. People choose a restaurant or another not only depending on the quality of the food that they can find there, but also depending on the atmosphere which they can enjoy. A cosy, relaxing atmosphere created in an elegant environment can be appealing for family dinners as well as for business lunches.

6. Critical issues

There are a few issues that the restaurant needs to take into consideration in order to make sure that it will function efficiently. First and foremost, the restaurant management needs to deal with the aspects represented by the human resources and the suppliers. Good personnel needs to be hired, but this is not enough. The staff needs to be trained and motivated properly so that the services will correspond to the identity that the restaurant promotes for itself.

The other issue, represented by the suppliers has an extremely big importance. The quality of the products that the restaurant provides depends on the companies which supply them, and their professionalism. Professional suppliers need to be found in the area and then good relationships must be established and maintained as far as they are concerned.

A third critical issue is represented by the competition. The restaurant management must take into consideration what and how the competition does in order to attract clients. From this point-of-view, the restaurant managers should act proactively in order to make sure that the business will function efficiently on a long-term basis.

3. Marketing strategy

The marketing strategy is an essential factor when it comes to the setting up and the development of any business. It helps to plan the exact phases which are required in order to reach the goals which have been established initially. It also helps establish the manner in which the phases of the plan can be controlled as well as to provide solutions for the cases in which something might go wrong.

3.1. Mission statement

The mission of the restaurant is to provide top quality services at affordable prices.

3.2. Marketing Objectives

The marketing objectives that the steak house restaurant has is to acquire a significant market share, constantly increasing the number of its clients. Another objective would be to increase the level of awareness regarding the company among the clients and the potential clients.

3.3. Financial Objectives

As far as the financial objectives of the business are concerned, they are to increase the customer sales in a continuous rhythm in the first year of functioning. Further increases are desired for the following periods as well.

3.4. Target markets

The target market that the steak house restaurant business has in mind is represented by the adult population living in the Charlotte area, as well as the people travelling in the area. The target customer is an adult with medium to superior studies, single or married, with or without children who enjoys meat and likes to eat out. The target customer has medium to upper incomes, is sociable and enjoys spending at least one of the week nights out, together with the family or the group of friends.

3.5. Positioning

The restaurant, despite being a steak house is to position itself as a high quality one. The prices that people will have to pay in order to enjoy the products and services of this particular steak house will be a bit higher than the prices found in other steak house restaurants, but the atmosphere and the quality of the services here will make them feel it is worth paying extra. The restaurant is to position itself as casually elegant one.

6. Strategies

The communication strategies play a fundamental role for the efficacious functioning of any company regardless of its area of work. Communication is essential not just for the need to transmit factual information regarding the products and services that the company offers, but also for the purpose of establishing and maintaining relationships with the main stake holders (such as the media which can promote the company) and the present and potential clients.

This is why the restaurant will have to make sure it obtains media coverage. The local printed press and the local radio are important communication means. Nevertheless, the company will also use the internet as a means of self-promotion. The site of the restaurant will provide all the necessary information about it, allowing people to make online reservations and be updated with all the events taking place there.

7. Marketing Mix

Price

The prices that the customers of the steak house restaurant will have to pay are moderately high. The restaurant decided to make people pay prices which are higher than the ones encountered in other steak houses in the area, but the price is also meant to reflect the increased quality of the provided services, as well as the distinguished atmosphere which the entire staff tries to offer to the restaurant customers.

Place

As far as the distribution is concerned, the restaurant will provide its customers with the possibility of ordering in. The delivery will be made in the shortest time possible, by the restaurant employees. The distribution will take place in the areas closer to the restaurant. The transportation will be made on scooters, allowing the carriers to arrive faster at the desired location.

Promotion

Promotion is a highly important aspect when it comes to the development of the steak house restaurant. Its importance derives from the fact that there is an intense competition and that the company needs to create a name for itself. Promotion strategies will help it increase awareness among customers. Consequently it will help increase sales and contribute to the increase of the profits on both short- and long-term periods.

The restaurant will use printed advertising and radio advertising at local level. Articles and advertorials should appear in the local papers and magazines on a periodical basis. PR strategies will also be used in order to make the restaurant more popular among the people living in Charlotte and the tourists coming here. The restaurant could get involved in the life of the community by making small financial contributions to charitable vents or organize them. In addition, it could mark events which are special for the community by organizing special nights dedicated to them.

8. Marketing research

No business can be started without a prior analysis of the market. Marketing research is essential since it provides information regarding the opportunities that the market presents, if these exist. Before investing in a steak house restaurant located in Charlotte, North Carolina, one should know if such a business is likely to bring profits. Market studies in this particular field could be acquired from research companies, saving the investors time and money which would otherwise be required.

Controls

One of the key elements in the creation of a marketing plan is represented by the control methods. It is important to establish each and every phase of the marketing plan one wishes to implement, but each phase must be supervised in order to make sure that everything goes according to plan. The company must be able to monitor the stages of the marketing plan it has conceived in order to be able to see if everything is going accordingly or is there something more that should be done. From this point-of-view it is recommended for each phase to be divided into sub-phases. It would then be easier to control all the details which contribute to the efficacious functioning of the business. Written reports of the development of each of the marketing stages are also recommended.

Implementation

After the marketing plan has been written and means have been found in order to fulfil each of the goals which have been set, the implementation process starts. Each of the big phases is to be divides into smaller ones so that it will be easier to check if anything goes wrong and to solve the problem.

Marketing organization

The investors must be very well organized when it comes to the implementation of the marketing plan. They should expect things to take another course than the one which was established initially and be able to bring it back on track. A proactive thinking pattern is required from this point-of-view. In addition, a back up plan must exist so that anything goes wrong, the situation stands a good change of being solved and does not face the risk of complete failure.

Contingency planning

It is important for the investors and the members of the management team to be have a contingency plan in case something should happen not allowing them to carry the marketing plan to an end. The competition might become harsher, making it more difficult for the company to maintain its profits at the desired levels. The positioning of the company does not allow it to lower its prices, since it creates its entire image based on the importance paid to high quality products and services. The only alternative in this case is represented by the improvement of the services or by the investment in further PR actions which would increase company awareness and create fidelity among the already existing clients.