Hospitality and Restaurant Management
This Feasibility Study was written to evaluate the future success of the restaurant Benn Steak, which is located at 4545 N Idaho, within the Idaho Resort. This study will cover the following functions: Gathering data, Concept development, Site analysis, Competitor analysis, Review of competitive Position and Projecting Customer Volume
1) Gathering Market Data
In order for one to comprehend the potential consumer base for Benn Steak and restaurants in North Idaho, census data was evaluated to get population totals.
The following data was obtained from http://www.city-data.com/city/Hailey-Idaho.html and pertains census data most recently updated in 2013
It is imperative to notice that though the number of inhabitants in the area is only a small percent, it is due to the zone being in a small land area. Nevertheless, some of the other areas neighboring the town holds almost a quarter of Idaho’s employment opportunities. This depicts that there will be a lot of business associates in the area. The Idaho Park will bring people to this side of town as well as the other recreational facilities that are provided by the city.
2) Concept Development
The concept of Benn Steak is that of an authentic indigenous establishment. The target market is holidaymakers who want to treat themselves to a deluxe experience. The Idaho Park in which Benn Steak is located is a stroke of genius in architecture and modelling; this creates an atmosphere that is different from the buzzing city life. The establishment will create and use local mesquite wood, famous for their flavor in Idaho, for grilling the steaks and other foods that the locals consider as indigenous in the area. Benn Steak will ensure that it hires the individuals who will promise to deliver a memorable and gratifying experience for each guest, and will integrate craft cocktails and an extensive wine list to enhance the dinner experience. To ensure quality and execution, operating hours are dinner only, 5-10 pm, with Happy Hour to draw guests in from 5-6pm. Although Benn Steak restaurant offers indigenous foods, the aim is to make the guest comfy. Consequently, Benn Steak will use candles on each table, no tablecloths, dim lighting and comfortable banquettes. The tables will be made from locally sourced materials.
3) Site Analysis
In terms of location, I believe that the restaurant is placed in an area that is best suited to achieve its objectives of success. Since the restaurant is highly rated in terms of the international rating standards of AAA 5 Diamond, its reputation all over the world will ensure that it receives guests from all over the word constantly. Additionally, the food that the restaurant prepares is in coordination with environmental sustainability due to the various eco-themed events that the hotel will be hosting. Additionally, since the restaurant is located in a park, there are many locals who come to rest in the park and are bound to offer additional market to the restaurant. Next to the restaurant, there is a stadium that provides sporting activities that are adjacent to the park. The only downside to the location of Benn Steak Restaurant is that there is minimum traffic in the area, so the possibility of walk-in guests is diminished.
4) Competitor Analysis
The availability of restaurants offering indigenous foods in the area is minimal. Most of the restaurants offer fast foods. Additionally, the fact that the restaurant offers foods in an eco-friendly environment attracts clients who want to sample the different food items that people deem sustainable in terms of how the food is prepared. However, being an establishment that offers food, there are bound to be competition. The different menu products that are served in different themed night’s means that the restaurant will attract customers from other outlets who want to have different experiences. Competition from the restaurants that are located just outside the Park will be considered as most of the guests who visit the park see the restaurants as they walk to the park. These restaurants include The Towett restaurant and the Mc Donald’s café situated on the drive in just before one enters the park.
5) Review of Competitive Position
Based on the above tables, it is evident that Benn Steak restaurant offers one of the best experience, and this increases its chances of its competitors. There are however other sections such as the number of dining rooms that have to be increased so that the restaurant can match its competitors.
6) Projecting Customer Volume
Through the marketing strategy that the hotel will use, there will be many clients especially in the months of February to May. The tourism numbers are expected to increase during the summer as most people will have time to visit the recreational areas. The hotel expects to receive over 40, 000 guests during the peak season and about 15, 000 during the low season. The hotel expects that the different marketing strategies will increase the customer numbers in all seasons.