• Successful restaurant owner plans to open new restaurant in entertainment district • He set a goal of $4M in revenue for first year of operations, which is said to be overly optimistic by his accountant. • Joshua has two choices: Should he open? And if he does what is the most appropriate marketing plan? • While there is considerable information about population, income levels, economic demographics, competition… the key here is to evaluate the likelihood of the restauranteur being accurate with his projections, validating reasonable figures using both his accountant’s approach and industry metrics. • Different scenarios based on “turns” and seating #s should be the base of the analysis… quantitative • Qualitative analysis is of merit in respect of some of his innovative ideas
• Assess the viability of launching a new restaurant in a competitive industry • Calculate and evaluate $ metrics
• Develop a marketing plan for his proposal
Questions to be answered:
• Recommend whether or not Joshua should proceed
• Assuming he does, prepare a skeleton of a marketing plan for JMs
• JM is experienced, has a solid reputation with two famous restaurants: 1. Karma: located in the heart of Toronto downtown business community. 2. Lynx: focus on French dining trend.
• Experienced with Business Clientel and their needs, imaginative menus, high level service and culinary experience • The new restaurant maybe overlapped with the Karma due to the overlapping of location and target market. • JM used his experience to set a target of $4mln in sales in yr 1(while the logic of this can be challenged we will assume that he knows what is appropriate) • He needs to convince himself (and his doubting accountant) that his estimate is indeed realistic and that with a good marketing plan he can go ahead • There is a high incidence of failure in new...