J.M.'s Signature Restaurant - Case Study
Identification of critical issues:
- Lots of competition in his district (with also the same atmosphere and targeted customers)
- A lot of money needs to be spent on the decor of the latest fashion trends
- Plans on having 71 staff, which is a lot (salary expenses is going to be very high)
- Having the recipes emailed to the clients may cause a loss of revenue (clients may chose to just cook the recipes at home)
- Wants to provide only 96 seats in a 5800 square footage space (he can fit more seats with this much space)
- Plans on spending a budget above average on marketing
Analysis of key issues:
Joshua Matthew is putting himself in a very highly competitive segment. He really likes the downtown location; however this area is heavily populated with restaurants. There are over a 100 restaurants in this district, were 71 shares a similar price range and were 12 of these restaurants have the same European or French atmosphere. Matthew focuses on attracting the business clientele, and his main competitor in the financial district, Reds, also attracts the young downtown business crowd and is ultra-cool with the latest fashion and trend styles.
Joshua Matthew found a great lease rate across from the Cedarcroft Center; on the other hand it is known by critics that the theater district is a terrible location to run a restaurant. Most people would think that dining in this area would only be an afterthought and not the main event of their night. Those who plan on going to the theater during their evening wouldn’t necessarily think of going to dine before.
Joshua wants to incorporate an open spaced decor in his restaurant to fit the atmosphere. He plans on using a 5800 square foot restaurant having only 96 seats, excluding the 40 seats at the bar, using more than 60 square feet per seat. This is more than double of an average square footage per seat of a full service restaurant in Canada. This can be disadvantageous since he isn’t planning on using the
- Lots of competition in his district (with also the same atmosphere and targeted customers)
- A lot of money needs to be spent on the decor of the latest fashion trends
- Plans on having 71 staff, which is a lot (salary expenses is going to be very high)
- Having the recipes emailed to the clients may cause a loss of revenue (clients may chose to just cook the recipes at home)
- Wants to provide only 96 seats in a 5800 square footage space (he can fit more seats with this much space)
- Plans on spending a budget above average on marketing
Analysis of key issues:
Joshua Matthew is putting himself in a very highly competitive segment. He really likes the downtown location; however this area is heavily populated with restaurants. There are over a 100 restaurants in this district, were 71 shares a similar price range and were 12 of these restaurants have the same European or French atmosphere. Matthew focuses on attracting the business clientele, and his main competitor in the financial district, Reds, also attracts the young downtown business crowd and is ultra-cool with the latest fashion and trend styles.
Joshua Matthew found a great lease rate across from the Cedarcroft Center; on the other hand it is known by critics that the theater district is a terrible location to run a restaurant. Most people would think that dining in this area would only be an afterthought and not the main event of their night. Those who plan on going to the theater during their evening wouldn’t necessarily think of going to dine before.
Joshua wants to incorporate an open spaced decor in his restaurant to fit the atmosphere. He plans on using a 5800 square foot restaurant having only 96 seats, excluding the 40 seats at the bar, using more than 60 square feet per seat. This is more than double of an average square footage per seat of a full service restaurant in Canada. This can be disadvantageous since he isn’t planning on using the