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Analysis on Entrepreneurial Effort of Establishing New Restaurant Business Assignment 3 Answer

Assignment Three: Individual Business Report

Task-3 Individual Business Report (New Restaurant Proposal)

Task Description

As an entrepreneur you plan to open and operate a new restaurant located in Melbourne & Sydney. You are in the fortunate position of having investors who may be willing to finance the operation, but first you must convince them that your proposed restaurant is a worthwhile concept. You DO NOT have to present finance estimates for the business as the investors will assess this when they do their full feasibility study. You MUST, however, convince them that the concept is one for which there is MARKET DEMAND. You will present your proposal to the investors through a written report. Student to write the report that discusses the critical factors which influence a restaurant's business performance. It should be based on research evidence rather than personal opinion. You should use relevant material from the weekly topics as well as other resources such as academic journal articles and texts to support your ideas. 

Task Length: 2000 words

Assessment Criteria 

1. Identify the size and scope of the food and beverage operation 2. Assess the feasibility of the restaurant proposal 3. Discuss facility design, layout and menu 4. Justify the marketing/advertising/public relations strategy of your food and beverage service 5. Evaluate the wide variety of processes available for food and beverage production 6. Analyse the importance of motivation, training and retention to an organisation's success 7. Describe a systematic approach to managing quality and explain its importance.

Identify the size and scope (the opportunity or possibility to do or deal with something) of the food and beverage operation

  1. Location
  2. Cuisine
  3. Size
  4. Scope- Writing the opportunities of starting Italian Restaurant. 
  5. Assess the MARKET DEMAND feasibility of the restaurant proposal.
  6. Competitors
  7. Customer Demographic
    • Age- 18 to 40
    • Race- Mixed
    • Income- Middle
    • Gender- Mixed

Discuss facility design, layout and menu

Justify the marketing/advertising/public relations strategy of your food and beverage service.

  1. Poster
  2. Facebook Account
  3. Twitter Account
  4. Instagram
  5. Uber Eats
  6. Urban Spoon
  7. Evaluate the wide variety of processes available for food and beverage production
  8. food and beverage production equipment- Bain-marie’s, Cool Room, Dry stores and Pantry. 

6.   Analyse the importance of motivation, training and retention to an organisation’s success based on industry cases

7.   Describe a systematic approach to managing quality and explain its importance1

  • Food Safety Plan
  • Reliable Suppliers
  • Quality Procedures and goods



Executive Summary 

The planned restaurant business has sufficient scopes of success in foods and beverage market in Sydney and Melbourne. Both the cities have faced a continuous rise in demand for restaurant foods and beverages for the last 5 years. For succeeding in the markets, the management has to remain focused on motivating its staffs, arranging training and applying a systematic approach of quality management and standard food production. 


A business report is introduced in this paper regarding the entrepreneurial effort of establishing new restaurant business in Sydney and Melbourne as target markets. The assignment presents brief analysis of possible demand in market and feasibility of the planned proposal there along with discussions on necessary facility design, layout, advertising/PR opportunities and importance of employee training and quality management for the business. The overall analysis is presented from the viewpoints of entrepreneur. 

Size and scope of the food and beverage operations 


  • Location: Considering from location perspective, as the capital and most populous city in Australian State of Victoria, Melbourne is regarded a main industrial region in the country. The location has its specific advantage due to its well-known changeable weather varieties and natural attractions responsible for effective tourism growth (Sarmiento & El Hanandeh, 2018). This geographical advantage of the location makes it fit for the planned restaurant business.
  • Cuisine: There is a range of cuisine available in Melbourne food and beverage market including British, Australian, Chinese, Indian and French cuisine. This will enhance the possibility of the new planned restaurant for dealing with customers from different socio-cultural and ethnic backgrounds in the market.
  • Size: Size of food and beverage market in Melbourne is of $7.9 billion along with almost over 5000 restaurants operating in the city. During 2016-2018, the opportunity for the industry has enhanced at CAGR of 4.1% per annum (, 2020). Changing consumer behaviour and trends of consuming restaurant meals due to busy lifestyle is the main factor accelerating demand of the industry.
  • Scope: With 4.6% of the total Australian population being from Italy, Melbourne has almost 28% Italians of its overall population, resulting in rising demand for Italian dishes. However, the presence of various eminent Italian restaurants as Tipo 00, Becco, Cafe Di Stasio, Sarti, Bar Idda and Grossi Florentino might pose tough competition for the planned restaurant.Ever-rising online sales of Foods and Beverages in Melbourne

Figure 1: Ever-rising online sales of Foods and Beverages in Melbourne

(Source:, 2020)


  • Location: In Sydney, the size and scope of its restaurant industry are ever-growing due to increased tourism rates mainly. Being an important tourist location, restaurant and beverage services turnover in the city stood 48.2% of the overall economy of Sydney.
  • Cuisine: Opportunity is there for the new planned restaurant for operating in Sydney with Burmese, Afghan, British, French, Colombian, Italian, Iraqi and many other cuisines.
  • Size: With 5.25million population, its market size of foods and beverage is $12 billion with rate of growth of 1.4% per annum in the last 5 years (, 2020).
  • Scope: Higher popularity of Italian cuisine and dishes in Sydney enhances success scope for starting Italian restaurant there because of the presence of 173,332 people of Italian ancestry in the city (Sarmiento & El Hanandeh, 2018)Rising Turnover of the Food and Beverage Industry in Italy

Figure 2: Rising Turnover of the Food and Beverage Industry in Italy

(Source: da Silva Monty, 2018)

Feasibility of Restaurant Proposal


  • Competitors: The planned Italian restaurant business in the city might face significant rivalry from the potential rivals like Chin Chin, Rockpool Bar & Grill, Rice Paper Scissors, Lake House, Cumulus Inc and Flower Drum Restaurant. 
  • Customer Demographics: The planned Italian restaurant can have sufficient scopes of success based on the particular consumer demographics of age (18-40 years), mixed-race people belonging to middle-income status and from mixed gender. The beverage and food market in the city is expected to be USD 13 billion within 2024-2025 with a CAGR of over 5% in the period (, 2020).


  • Competitors: The proposed Italian restaurant can face hard ribalry from market leaders like Tetsuya’s Restaurant, Restaurant Hubert, Platform 818, Sixpenny, Jack & Knife, Alberto’s Lounge and Automata. All these are offering a range of British, Australian, Indian, Afghan, Iraqi, Italian and French cuisines.
  • Customer Demographics: During 2015-2018, there was a 28% increase in the number of people preferring restaurant foods due to a busy lifestyle and rising interest in specialty niche foods. Thus, the planned Italian restaurant has a huge growth opportunity in the city.

Facility Design, Menu and Layout 

Facility design for Italian Restaurant includes the followings.

Human Comforts: As opined by Lee et al., (2016) offering adequate comfort to customers by ensuing sufficient personal space is integral part of restaurant business, requiring managerial focus on ventilation, humidity control and temperature.  

Thermal Comfort and Indoor Air Quality: The entrepreneurial approach will ensure a proper standard of HVAC system for ensuring proper indoor functional facility of the proposed restaurant.

Acoustics: This restaurant will have sufficient adequate soft furnishing, carpet floor, and tablecloth & curtain facilities along with sound-absorbing qualities.

Lighting: Lee et al., (2015) suggest that proper visual conditions are necessary for holistic human comfort in restaurant and café operations. Thus, the presence of mood and ambient lighting facilities is necessary.

Seating, Smooth Circulation benefits: Effective designing of attractive seating space will be an integral part of the facility design.

Restaurant Layout:

The Entrance
The entrance will be subtle way, as Greek-Style concept with articulated gateway. 
Dining Room 
  • Seating area:4-4.5 ft area between all dining table for resisting chaos 
  • Waiting area: Sufficient space for customers

This will be as per views of Kitchen Consultant, Head Architect and Head Chef. Necessary equipment includes an oven,  dish machines, broilers, fryers, triple sinks and shelf space (Lee et al., 2016)
Sufficient inventory area, cold storage, pantry area and washing
Restrooms and toilets for males and ladies
Electric Services
As per location, professional care will be taken for fixing lighting, wiring, cabling and termination (Omar et al., 2015)

 Restaurant Layout

Figure 3: Restaurant Layout

(Source:, 2020)

Service Style: High-end restaurant service (Waiter service) will be implemented.


The menu of the planned restaurant will be,

  • Steak Picado (Choice sirloin strips with tomatoes, onions, chillies, spices)
  • Carne Asada (marginated New York Stripe)
  • Chile Verde (pork cooked with chillies, onions, tomatoes)
  • Beverages (Coke light, Sprite light, Ked tea, Schweppes tonic, Fresh Orange, Ripe Mango, iced tea, Scheweppes soda) (Filimonau & Krivcova, 2017)

Types of Clientele: Price, Value-based, Relationship and Poker-player clienteles 

The likely market situation the planned restaurant faces:

Strength: Multi-cuisine, innovative products and skilled service
Weakness: Limited cuisine, weak layout and designing (Lee et al., 2015)
Opportunity: Online operations in Melbourne and Sydney restaurant markets
Threat: Tough rivalry from existing market players, restaurants and cafe

Justifying Advertising/Marketing/Public Relations strategy 

For proper communication and public relation operators in the beverage and food markets in Sydney and Melbourne, the planned restaurant will focus on applying following promotional channels and means.

  • Poster: The entrepreneurial effort for introducing the new Italian restaurant in the concerned markets would adopt the strategy of using poster for promotional operations. This will involve use of effective photography of offered food items and beverages that will make viewers come to the restaurant. The restaurant will apply creative graphics and illustrations for attracting the views of the target audiences in Melbourne and Sydney and thus, the posters would display the new products offered, its competitive price and associated discounts and offers.
  • Facebook Account: using Facebook Account by the planned restaurant will be a highly effective strategy for developing its public relations through digital communication based marketing operations. In the thoughts of Hanaysha, (2016) making application of personal Facebook Account for the businesses can be an effective means of conducting direct marketing. Considering high competitive market environment in Sydney and Melbourne, the restaurant can use this particular social media platform.
  • Twitter Account: This can be an easy-to-use source of ads for the planned restaurant for communicating and engaging new audiences to the brand by posting appealing photographs of the foods, the facilities, promoting deals and spreading news (Fox & Longart, 2016).
  • Instagram: Just like Facebook and Twitter, using Instagram will help the planned restaurant in development of its communications with public through social media-based direct marketing efforts (Grizane & Jurgelane, 2017).
  • Uber Eats: This delivery app would help it in reaching wider audience and thereby succeeding in PR development through helping its audiences and new customers in socially connecting with the new business (da Silva Monty, 2018).
  • Urban Spoon: The planned restaurant can use this information and recommendation app in its advertisement operations and this will help it in to be listed by the viewers in downloaded photographs along with its featured dishes, logo and facilities offered (Dastidar, 2017). 

Evaluating wide variety of processes for beverage and food production 

Restaurants generally apply various processes for producing foods and beverages that involves methods of Bain-Marie process, Dry Stores and Pantry and Cool Room.

For the planned restaurant business in two concerned markets in Australia, using the Bain-Marie process would be quite effective as this is one of the most widely applied processes for melting ingredients for cooking as well as keeping the foods warm for considerable period (Dastidar, 2017). Application of Bain-Marie process or Double Boiler process would be of higher benefits for the planned restaurant in case of melting chocolates, baking cheese, producing thick and condensed food ingredients and others. The process of Dry stores is used by the restaurants for food preservation and drying (dehydration/desiccated) that inhibits growth of yeast, bacteria or molds in foods. According to Chen, (2016) maintaining the food production process of using cool containers and pantries is an effective means of storage of produced foods for longer duration helping the restaurants in offering ready and fresh foods to customers without delay for production. 

Analysing importance of training, motivation and retention for success 

In this globalised and technology-based complex business scenario, skilled and competent employees are the key to organizational success and without applying proper HR strategies for motivating them, engaging and retaining the staffs is not possible. Excessive work-pressure, longer working hours, lower wages is specifically the issues hampering workplace motivation and engagement of employees (Tracey et al., 2015). Therefore, employee empowerment through effective training and development programs is necessary for making them realise their importance and values to the companies. For instance, eminent USA-based fast food company McDonald’s applies Ray Kroc’s training philosophy for its employees, as per which, they keep focus on developing employee skills in maintaining quality standards, values and cleanliness in operations (Grekova et al., 2016). This assisted McDonald’s in achieving higher employee satisfaction and reduced staff turnover rate. On other hand, another USA-based market leader KFC uses advanced IT-based video training for its staffs for improving their operational skills and standards. 

Systematic approach for managing quality and explaining its importance 

Quality management is vital for prevention of occurrences of decreased standards of service quality and food preparation standards that is also necessary for ensuring positive impacts of the foods offered on consumer health and hygiene (Laškarin Ažić, 2017). For the planned restaurant business also, applying the systematic approach of quality managing will be necessary for avoiding degradation of foods, decreased service quality and deteriorated consumer satisfaction thereby. The restaurant can follow the systematic approaches below,

  • Food Safety Plan: Development of a particular plan for Food Safety will enable the business in doing analysis of effective risks and hazards for identifying and managing potential hazards that might pose risks to quality standard of foods and service operations (Chen, 2016).
  • Reliable Suppliers: Managing supplier quality might be a highly desired approach of quality management for the planned business considering growing consciousness of Australian consumers to food and service quality (Hanaysha, 2016). 
  • Quality Procedures and Goods: Implementation of the processes of quality planning, quality control and quality improvement of goods will be necessary for the business.


Higher opportunity of scope of success of the planned restaurant business is apparent in selected markets of Sydney and Melbourne. Implementation of the above-discussed layout, resign and menu will help the planned business in attracting potential customers in the markets. However, in case fo applying the advertising/PR strategies and the processes of quality management and food production, the planned restaurant has to be very specific for dealing with tough competition in the markets.

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