Strategic Plan Part 2 SWOTT

Topics: Strategic management, Food, Restaurant Pages: 9 (1575 words) Published: January 24, 2015

Strategic Plan Part II: SWOTT Analysis for The Salad Bar
November 17, 2014

Strategic Plan Part II: SWOTT Analysis for The Salad Bar

Any new business owner should know that success is not guaranteed, even for the best concepts. The restaurant business is no exception with most new restaurants failing within the first year. After that, 70% fail in the next 3-5 years and out of those that make it past that, 90% make it no more than 10 years (Gemberling, 2012). External forces are some of the greatest factors in the success or failure of a new business. This paper will identify strengths, weaknesses, opportunities, threats and trends for some of those external factors such as economic and legal and regulatory forces and trends and how The Salad Bar will adapt to overcome them. The analysis will also cover supply chain as well as other issues and opportunities.

Economic, Legal and Regulatory Forces and Trends

Economic factors concern the nature and direction of the economy in which a firm operates (Pearce II, 2013). Prices play a large part in consumer choice when it comes to food. During economic downturns, restaurants with lower price points typically fare better so great consideration should be given to meal pricing. However, the differentiation of The Salad Bar’s offering can be considered a strength there as customers are often willing to pay a little more for high quality, healthier foods. Given America’s recent trends in health consciousness, especially when it comes to food, The Salad bar should have some extra flexibility when it comes to pricing regardless of the economic climate. Legal and regulatory factors will have a significant impact. Due to the recent problems with food safety, the FDA and USDA have implemented several new regulations to ensure public safety. The Salad Bar will need to ensure that it is constantly aware of existing regulations, exceeding expectations, and passing all inspections. A single black mark in this area could be disastrous given the promise of fresh and healthy food. Again, there has been a significant shift in eating habits and trends with many activists exposing the unhealthy nature of some foods, their additives and the environmental impact with documentaries such as [Super-Size Me], [Food Inc.] and [Fed Up]. The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment (Pearce II, 2013). Socially, raw foods, also called whole foods are becoming more attractive options for the young and old who are embracing this back to basics food trend. People like the experience of eating out but often associate it with high prices, long waits, lack of family atmosphere and a lack of healthy choices. Few restaurants have truly embraced this trend however. Consider that some restaurant salads (without breadsticks and salad dressing) have as many calories as a burger and cost as much if not more. Competitively, some restaurants are seeing success in this area such as Subway and Pita Jungle. Others are still struggling for market share as they fail to innovate and introduce truly healthy options. While they wait, new entrants are starting to pop up slowly and are gaining popularity. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry (Pearce II, 2013). External technological factors could include on-line reviews of the restaurant from customers and critics. With sites such as Yelp and Urbanspoon gaining popularity it will be important to monitor these sites for feedback and opportunities to resolve issues. In terms of advertising, online advertising is probably a more attractive option because residents of all ages are more likely to read information online or through social media than in physical print (Pearce II, 2013).

Supply Chain

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