An Over View Of The Restaurant Industry Marketing Essay

An Over View Of The eatery exertion Marketing EssayA pabulum give establishment kn deliver as a Restaurant offer nutrition and drinks to the guest in return for m unriv totallyedy. Restaurants also offer take-out and delivery selections. thither ar full-size assortment of eaterys and eating house range of mountainss in the world that pickyize on the primary(prenominal) chefs cuisines or specific service models. Modern age restaurants were open during the 18th century in Europe where the tune is main(prenominal)ly serving of pabulum as per the order prone by the customer. The prime(prenominal) restaurant was established in France in 1765 by the name Restaurant that offered soups to customers. It was unresolved by A. Boulanger, a soup vendor. The first luxury restaurant was opened in France by name La Grande Taverne de Londres in 1782. genus Paris was the cultural and commercial hub during the measure of evolution of restaurants. at that place was demand from c ustomers for individual tables, individual orders and flexible lunching propagation and payment based on the item ordered. The kind of carte du jours also segmented the restaurant business. The main return of restaurant pattern is that the restaurants potbelly serve the customers what they sine qua non. Restaurants as we see in the present form pass on supposed to be originated during the time of French revolution. Both revolutionaries and counter revolutionaries were attracted to the restaurants. Revolutionaries claimed restaurants as a means for breakout the traditional common meals, while counter revolutionaries c every last(predicate)ed restaurant lunching to be an uncivilized way of living. The formation of printed menu appe bed in 1770. Penalty was levied for guests stealing victuals from the hosts of the restaurants or hosts stealing food from the guests. The penalty for stealing from a restaurant was 8 categorys of forced labor.The most famous restaurant in Paris during the 19 the century was Caf Anglais which served classic dishes standardized sole Duglere and potage Germiny. Many of the worlds finest chefs were from France including Georges Auguste Escoffier who organized kitchen teams consisting of trained experts. champion of the worlds finest restaurants was established during the 20th century called Resturant de la Pyramide in Vienna. French restaurants today be usually in one among the three categories, the bistro and inexpensive establishment, a medium- scathed restaurant and the classy and elegant ones.In other European countries, also restaurants emerged during the same time. IN Italy Botteghe originated in the 16 th century for serving coffee. Many Austrians had their own steady restaurants called Stambeissi. The casarda in Hungary limits to meat dishes and slant stews. The Weinstube in Germany had a large wine selection and weinhauss offered food and wine to the customers.The economic reasons for the development of restaurant s were those associated with income harvest-tide, population and commerce. on that point argon a large subjugate of events passim the year that can influence the business of the restaurants. seasonal worker food and that made from local produce has a big trend in the restaurant business in Europe. Another trend is offering special food on special days for example, Mothers day, Valentines Day, etc. There has been special food offered even during the time of events like Wimbledon, Rugby or school holidays. Sundays atomic number 18 often the busiest days and Mondays and Tuesdays find very hapless business. There is an step-up of 40% annual revenue during Christmas and New Year.Restaurants range from simple lunching spaces to pricy establishments serving classy food and beverages served in a formal setting. Usually the orders are taken at the tables by the waiter where the customer sits and when the food is brought to the table when it is ready and customers pay the bill while lea ving. There are restaurants which offer specific fount of food such as seafood restaurants, vegetarian restaurants, etc.Restaurant guides tending to tempo the restaurant which provide information on customer opinions on the restaurants. The Michelin series of guides are use for rating the culinary skills of restaurants in Western Europe. A rating of 1 to 3 stars is provided and to a greater extent than the number of stars, higher are the price of the food. Another rating guide is the Gault Millau where the restaurants are ranked based on the quality of food, rather than the dcor and the service. Here the restaurants are rated in a scale of 1 to 20 with 20 being the highest. These days, internet sites are available where the restaurant reviews are put up by customers.Chain restaurants offer a familiar menu and dcor irrespective of its location. Earliest chain restaurants originated in Germany called automats. Restaurant chains account for nearly 14% of UKs total give expenditure s. accord to Technonomics 2010, Leading speed of light U.K Chain Restaurants report devalued insouciant restaurants are growing at a faster rate than limited service restaurants.Food service attention continues to be growing with revenues on a fast egression track.LITERATURE REVIEW.Restaurants in EuropeAccording to the Market Research firm Mintel UK restaurant market is more than 25b a year. Standalone restaurants contribute around 5.4b a year where as the fast-food restaurant sector accounts to 6.7b a year. The U.K restaurant industry employees more than 5, 00,000 staff with over 5, 00,000 restaurants spread across Europe. According to the British hospitality Association, 70% of the restaurants in Europe are owner operated contributing to a great share in Britains economy.Mc Donalds has the biggest presence in UK market with more than 1250 outlets in Europe. This is fol unkepted by Burger King, White Bread, and TGI Fridays. Further players let in Garfunkels, Caffe UNO, F rankie Bennies cross offs. Food sales out-of home has enceinte to 84% since the last decade. In 2005, the out of home food consumption was 10.6% ahead of 2002 statistics. Statistics show that the leisure spending in feeding out is more than in-home foodstuff bill in U.K.TOP20 UK RESTAURANTGROUPS IN2009(by number of outlets)Owner2009outlets2008outletsSelected markers1Mitchells Butlers775728Harvester,Toby, completely break One, VintageInns2Gondola585575PizzaExpress, Ask, Zizzi3Whitbread372398Beefeater, BrewersFayre, TableTable4PunchTaverns362344 (Spirit)Chef Brewer, twain For One, Millers5TheRestaurant conclave350336Frankie Bennys,Garfunkels, Chiquito6Tragus270267CafRouge, BellaItalia, Strada7Nandos213190Nandos8BayRestaurant sort out190381LaTasca, Slug Lettuce, hahaGrill9LittleChef180179Little Chef10 notedBrands176178Wimpy11GreeneKing155238HungryHorse, LochFyne12Prezzo141135Prezzo, UltimateBurger, iMMO13Clapham preindication7974GourmetBurgerKitchen, TheReal Grecian14Paramou ntRestaurants7575ChezGerard,CaffUno15TownCentre Restaurants5758Auberge, CafGiardino, Azzurro16Wagamama5659Wagamama17Ispani Family55Pontis, CaffeAlba18Carluccios4239Carluccios19YOSushi4133YO Sushi20OrchidPubs4044oriental personRestaurantGroup,ContemporaryCarvery21IndividualRestaurant Group3430Piccolino, Zinc, Bank22Regent Inns*31Old OrleansNote UK outlets only. Includes pubs whose food sales exceed 50% of upset* Regent Inns went into administration in October 2009Source Horizon FSRestaurant BrandsBranded restaurant chains are now on an increasing demand with more and more people enjoying the experience. The growth of mark food service and restaurant chains arouse been a significant feature of the growing market. Along with foreign brand names like subway and Mc Donalds there adopt been newtack together home grown brands also such as Caf Rouge, Wagamama, Nandos, Caf Nero, Loch Fyne,La Tasca, etc. All these businesses continue to expand with increase in international funding fro m both private equity and public markets. According to the Peach Factory research in 2007, casual dine restaurants are prime choice in capital of the United Kingdom, where 72% of Londoners visit a casual dining restaurant at least once in every three months and 31% departure atleast two times in a month.According to MC Report of February 2010, Pizz Express pull ins the top 20 brands in UK. The drivers of the brand value are three fold estimate of the current and future earning of a specific brand, based on publicly available revenue, capital and profit numbers. The remaining top 10 included Frankie Bennys, Wagamama, Zizi, Ask, Bella Italia, Caf Rouge and Loch Fyne. Greater consumer demands are putting much pressure on chain restaurants to distinguish their harvests from others. Restaurant brands have a clear brand strageywhich requires attention, consistency and respect once executed. Brands are usually born from a single persons vision with the only motif to provide new expe riences to the customers.For a restaurant brand to succeed its products and services should keep up the promises made with ads and communications. Once the assurance of customers has been established existing customers will return to the same brand. Strongest performing restaurants generate more than 70% from recap business.Restaurant executives use satisfaction and loyalty measures to assess the brand image. Other use brand sentiency scores. Another approach is creating a perpetual map of a particular vertical market. The consumers may also be asked the restaurant usage habits like frequency, occasion and brand selection. The may also be asked to try both physical and attitudinal characteristics like lighting, food quality, price, etc. It is also important to gather a big money of attributes rather than focusing on very few. The customers should then evaluate the attributes. Consumers can be given an option to elect between two restaurant brands, which is good when the attri butes do not capture all aspects.According to Aaker (1997), brand personality can be defined as the set of human characteristics associated with a brand. mark helps in creating a difference. It differentiates the product from just being one commodity against many identical commodities. mountain are generally willing to pay more for a branded product than for a by and large unbranded product. It helps in creating a connection with people.Brand Challenges for 2010Discount Vouchers there will be an increase of 50% in the use of promotional vouchers by diners. This can affect the brand equity and pricing resulting in a number oneer shareholder value.Inconsistent Delivery Rapid growth of brands has caused inconsistent delivery. depicted object Local Brands need to adapt to the local demandsHealthy tasty The consumers are more health informed which forces brands to create healthy foods.Characteristics of Leading U.K. brandsFollowing are the characteristics of the leading brands that contribute to the current and Future Success. imbed strategy A clearly defined strategy, well communicated, understood and performed by all employees, partners, suppliers and investors with main motive being the customer benefit.Consistency by means ofout all unconscious processs 70% of the profit is contributed through double customers. This can be ensured by ensuring the promised services.Culture A unique and strong arrangingal culture that holds all the stakeholders together and work towards a common goalCommitment to innovation Consistently offering new services and products motivates the customer for more purchase.True people organization An organization which takes care of the employees always gains customer satisfaction and loyaltyOn termination measurement Measuring the performance through a balanced card approach help analyze the drawbacks and make improvementsChanging consumer interestsTravelling and eating out are going to be the two leisure-spending activities by t he British. Richest 20% spend significantly by eating out. The biggest spenders in eating out are adults in no children households. There is increased consumer emphasis on health, freshness, provenness, authencity and environmental cozy products. Food retailing and out of home market are definitely to benefit. Over half of the Britons want locally produced food and 53% timber that there should be more UK production. There has been a muster in New Puritans interested in health and lifestyle who advise others what to be done and what not to be done. Consumers want better quality, better service and less expensive items which has been reflected in UK casual dining scenario. People under 24 are the heaviest users of casual dining restaurants. The change in the demographics, economic growth, have-it-all night club and experience economy all influence the casual dining out market. According to Peach grinder report 66% of the adults felt that the restaurants should be doing more to im prove eating out experience. The quality of food, the type of service, food and the value for money are the main factors influencing the eating-out market. Women feel healthier eating options are more important. Food, service and value remain the key market drivers to the demanding consumers.Consumers say that most of them want cleaner restaurants competent service, low prices and friendlier service. Younger customers are more interested in lower prices. Healthy food options and environmental concerns though not vital, but cannot be ignored. Public generally likes and understands branded chainsGeneral compartmentalisation of RestaurantsBistros -Bistros are relaxed and informal restaurants with 60 seats or less offering French food.Brasseries- These are large bustling restaurants with flexible dining experience. They often serve French food.Chinese food- In Chinese restaurants one can get dishes such as Beijing duck, Shanghai noodles, Sichuan soup and Guangdong dumplings.Country Ho use hotels- Restaurants in British country side where ancestral homes are converted to restaurants.Fine Dining-restaurants with fine luxurious surroundings with linen covered tables and high quality tableware.Gastropubs- Restaurants in public house or coaching inn. They pageantry huge British accent to the menu, but will also serve French cuisineGreek restaurants- Food is prepared using olive oil, grains and bread, wine fish and various meats. These are all complemented by wines or anise flavored liquors.Indian restaurant- Here food is characterized by herbs, spices and vegetables from India.International restaurant- Serves a wide variety of dishes representing different cultures.Italian restaurants -Serves Italian cuisineJapanese cuisines- The Japanese food is recognized as worlds healthiest food, low in cholesterol fat and high in fibreMalaysian Restaurants- Offer culinary diversity with fresh aromatic herbs and roots, lemon grass, ginger, garlic, shallots, kaffirlime and chili es.Modern British- Services quality dishes using local produce.Modern European- Seasonal style of cooking incorporating Mediterranean influences and ingredientsModern Scottish- Has both traditional and Scottish dishes along with international food.Seafood restaurants- Restaurants servicing fish and sea foodThai- the cuisine is spicy and served with strong aromatic ingredientsVegetarian restaurants- Food served without meat and fishSome of the brands in U.K are classified based on the brands owned by celebrity chefs and brands that shell out certain ideas. Jamies Italian by Chef Jamie Oliver, Rick Steins Padstow, Delia Smiths Delias Restaurant and Bar, Chef Heston Blumenthals Fat Duck, Antony Worall Thompsons The Grey Hound, Gordon Ramsay Holdings, Gary Rhodes W1 restaurant are whatever of the restaurant brands opened by celebrity chefs.Gordon Ramsay BrandGordon Ramsay brands are one of the most celebrated restaurant brands throughout the globe. Most of the Gordon Ramsay brands ar e in United Kingdom, a few in America, Tokyo and Dubai. Gordon Ramsays restaurants are well known for its services and the great food. His restaurants have been awarded 3 Michelin stars and he himself has been awarded 10 Michelin stars. The Gordon Ramsay restaurants in U.K are Restaurant Gordon Ramsay, Petrus, Gordon Ramsay at Claridges, Angella Hartnet at the Connaught, The Savoy grill, Banquet, box seat caf, Maze, La Noisette. Gordon Ramsay restaurants offer a mix of French, European, American and Asian cuisines.In 1998 Ramsay quit Aubergine restaurant which he co-owned with A-Z restaurants. He won Aubergine restaurant three Michelin stars. In 1991 he opened the Petrus restaurant in London which later won a Michelin star. Amaryllis in Glasgows One Devonshire Gardens hotel was opened by Gordon Ramsay Holdings in April 2001, which was awarded a Michelin star in January 2002. In October 2001 the host opened Gordon Ramsay at Claridge and won a Michlen star in 2001 for London restaur ant. In October 2002, the food and beverages operation at Londons Connaught hotel was taken over by Gordon Ramsay Holdings. In may 2003, Wareing took over Savoy Grill. Ramsay opened the Boxwood Caf in Berkeley Hotel. In December 2003 Wareing moves Petrus into the Berkeley. In December 2003, Wareing opened theBaquette above Savoy Grill. In May 2005, Gordon Ramsay Holding has opened Maze at the London Mariott Hotel Grosvenor Square in London.The total number of staff in Gordon Holdings is more than 900.Tragus HoldingsTragus Holdings is one of UKs largest commutative restaurant operators. It serves more than 12 million meals each year with 160 mid- market restaurants. The company was formed in 2002, through the 25m acquisition of the Pelican Group and Bright Reasons Group from Whitbread. The key brands are Caf Rouge, Strada and Bella Italia. Other brands include Mama Amalfi, Amalfi, Abbaye, Oriel, Leadenhall Wine and Tapas bar. The company rolled out Huxleys Bar and Kitchen at Heathr ow. The company is backed by Blackstone Group private firm.In May 2010, the multitude opened 15 new sites across three key brands and plans to open around 20 new sites in the current pecuniary year. The root considers the expansion of the brands as the key to profitability. Tragus wants to ensure the quality of the sites to ensure its brand image. Tragus found the recession period challenging due to the poor economic conditions and the poor consumer spend. There have been a strong promotional activity along with the quality of service which contributed to the growth of the brand. Tragus employs 7300 people and has an meet opportunities policy. Tragus invests a considerable amount in training and they have their own in-house training department. Trags encourages feedback on the menus from customers as well as from nutrition experts. The organization promotes healthy eating habits in joint with other industry players which cover procurement kitchen practices, menu planning and inf ormation. They provide nutritional information including calorific content to the customers.TrendsA key trend for restaurateurs is the availability of external funding in the shape of venture capital firms resulting in large number of mergers and acquisitions, but at the same time there are plenty of opportunities for independent operators. The industry has to satisfy the increasing demand due to dual income households, increased number of working women, tog out in the number of old consumers. London, Manchester, Birmingham, Bristol are the some of the hubs of the UK market scene.Future ProspectsThe restaurateurs are forced at increasing the levels of service, especially outside London. There is a prospect for increased market segmentation because of mergers and acquisitions. The main challenges going forward will be satisfying the changing consumer tastes and expectations. Consumers want cleaner restaurants, efficient and friendlier service, and low prices. Women opt for cleaner r estaurants than men do. For the UK restaurant industry, understanding what the consumer wants and then delivering it is the biggest challenge with more attraction towards branded chains.MethodologyThe two brands Gordon Ramsay and Tragus have been considered for our analysis here. A questionnaire was created to estimate the brand awareness, the brand personality alter the customer perception, major factors affecting the brand personality and the impact of these brands as a marketing peter for business. A simple random sample of customers of both brands was selected to whom the questionnaire was circulated. The various factors have been discussed in the analysis given below.ANALYSIS.(The below analysis of the comparison of the Gordon Ramsay brand and the Tragus group based on customer feedback. The questions and the feedback of the customers are discussed below.)What is the main problem you faced at a) Gordon Ramsay b) Tragus?For Gordon Ramsay Holdings 45% of the respondents mentio ned, other problems that they faced while using the services. 43% of the respondents found no problems with the service of Tragus.Which area do you think needs most improvement?The responses are as shown above. Majority of the customers have demanded for more variety for Gordon Ramsay brand. For Tragus, most customers demanded for low prices.What do you think the Unique exchange Proposition of a) Gordon Ramsay b) Tragus?26% of the respondents chose food as the Unique selling Proposition of Tragus Brand and for Gordon Ramsay majority has elect others, which is the chef himself as the brand image.How do you compare the services at Gordon Ramsay with Tragus?The respondents were asked to compare the services at Tragus and Gordon Ramsay. It can be seen that quality of food almost tops for both the groups.What in Gordon Ramsay brand attracts you more?The respondents were asked to choose the service that attracted more in the Gordon Ramsay brand.6Which brand of Tragus attracts you more?Th e respondents were asked to choose the popular brands within the Tragus brand. It was found that Bella Italia was most popular among the customers.Do you think Gordon Ramsays personality has an impact on Gordon Ramsay restaurant brand?68% of the respondents feel that the chef Gordon Ramsay has a direct influence on the brands image.Do you think brand name prompts you to go to Tragus?54% of the respondents feel that the name Tragus prompts them to go to the restaurant. It is evident that the brand name has a direct impact on the minds of people.DISCUSSIONGordon Ramsay- The brand valueChef Gordon Ramsay is the force behind the 28 restaurants belonging to Gordon Ramsay Holdings. The Gordon Ramsay Holdings reported a pre-tax qualifying of 4.3 million in 2008. He has published a vast array of cookery books and owns a catering school. Though the company has suffered in the recession hit economic climate and by the negative advancement about Ramsays public affairs Gordon Ramsay Holdings appear to be resilient and has reinforced a successful find mitigation strategy. GRH had diversified the risk and helped to secure income streams through the opening of three pubs and several mid-priced maze grills. The organization forged strong partnership with a private equity firm in the global hotel and catering industry called Blackstone group. The critical element of GRHs internationalization is Ramsays television career since 2004 that has popularized the chef and the brand throughout the world. The passionate and self-asserting leadership style in these shows gives the Gordon Ramsay brand a competitive advantage which represents the over all desoxyribonucleic acid of the group. Ramsay has been quick to find and nurture talent throughout his shows and this skill has proved to be the core might of GRH. The sense of teambuilding and promoting from within has fostered a high level of loyalty among the staff. 85% of the staff from 1993 is still apply in the business. He has been able to inspire and engage with his tough but lovable approach to management. GRH recognizes the fancy of its ambitious chefs by allowing them to open subsidiaries.The company lost 850,000 when it closed the pengelley restaurant in Londons Knight link in 2005. The failure was aggravated when he employed a executive chef from outside GRH. In 2006, the GRHs London Hotel in New York suffered late opening due to delays, it received poor reviews and the head chef had to be replaced. concisely it was transformed and gained two Michlen stars. In 2008, Ramsay opened his first Parisian restaurant, Versailles at the Trianon Palace Hotel but suffered a loss of of 1.78 million and was soon closed down. Ramsay is the face of the organization without doubt, and his actions in restaurant and televisions have impacted GRH. There has been nothing like Brand Ramsay in the world of cooking before. Ramsays position rest on two bases, the restaurant and as a media person.Tragus The brand value Tragus adopts a strategy of organic growth by opening new restaurants. It also aims at continually improving the existing brands through menu development and more investment into the group. It sees improved profitability through disciplined management and use of engineering science in its business. Tragus aims at providing more training and development programmes to its people and excellent customer service. It aims at getting groups of sites, which can enhance the portfolio. It looks at new opportunities and style of eating.The menu content has been regularly reviewed and has controlled the cost increases through regular retendering of the contracts. The company had adopted a good labour management system that can leverage the efficiencies. A new commercial and marketing structure was implemented in 2010 to improve the marketing activities of the group. The group also focuses on investing in the estate so that the best standards of presentation are meet. They have focused more on the Strada brand to maintain the contemporary image and the best quality of food. The group finds the brands, the pricing points and the value for money offerings as their competitive advantage. The group sees a growth potential for all the three brands Bella Italia, Strata and Caf Rouge.Tragus considers its people as the most important ingredient to its success.Tragus considers its corporate social responsibility as a priority. The group in relation with its suppliers tries to reduce the impact on the environment. They have promoted initiatives in in the main three areas -waste and recycling, energy saving, and food and drink. The company tries to find additional ways of recycling. The company has a cardinal distribution center giving a single drop-off point for recyclable material. The trucks, which deliver food and drinks, while returning collect, used cooking oil, plastics and cardboard. The company tries to reduce their dependency on paper by using voice recognition technolo gy. The company is working on a 100% recycling design for their restaurants. The company aims at energy saving by reducing the electricity use by 10% in the restaurants. All the Tragus brands run smart meters to view accurate usage of electricity. The company has undertaken multi disciplinary see to review the energy consumption across all the restaurants. The company supplies filtered tap water to all customers at Strada. The company uses Belu, UKs first carbon neutral water. The company also has served the community by working with organizations like Great Ormond street, Marie curie, children in need, etc.The company sees a brand risk through food precious or a slow decline in a brands appeal to its customers, which can be met through efficient operations. The risk on the brands appeal can be met through continuous menu innovation, marketing campaigns and brand development. The company finds the market to be highly competitive especially in service offering, product quality and price. The marketing teams monitor the market offering and pricing on an ongoing basis. The group undertakes a regular mystery diner visits to all restaurants to ensure that the standards of the menu and customer service are met. There is a rolling renovation programme to all the present estates.Tragus has laid out the following aims as a part of its Brand buildingCreating a standout differentiationEstablishing and delivering a compelling idea revolve around and directionA clear propositionTone of voiceCompelling brand leversDefining customer segmentsTragus wants its customers to keep dining, repeat business, try new dishes and menu items, trade up, and spread the message to others.Tragus wants to know more about consumers, wants to convert them to customers, Drive brand loyalty, not just voucher loyalty. Tragus believes that Brand development gives conversation rationale, but service execution is all.RECOMMENDATIONSBased on the analysis and the market study done for the both the b rands of restaurants, the following suggestions can be recommended.Looking to the future the GRHs focus should be survival and selective growth due to the economic slowdown.Both Gordon Ramsay and Tragus groups should focus on the standard of goods supplied by third parties. Any suppliers who do not satisfy the minimum standards should be delisted.Both companies should try to retain the best talent at both restaurant and head office levelThe organizations should keep a check on the price of key raw materials and wagesThere should be strong financial and operational review and financial reviewsThere should be essential funding available for the operational purposes hence essential contracts needs to be maintained.The organizations should be careful about the risk of fraud existing in the misappropriation of assets, including cash banking. This should be mitigated through management structure, regular financial review and extensive use of business reviews.There should be regular financ ial audits carried out in the organizationsThere should be continuous monitoring of the marketing, brand strategies and pricing.The groups should regularly review the products and involve the customers in improving the value for money offering me