Disadvantages: Time consuming both in collecting the data and analysing it.
The questions must be well thought or the results could be deceptive.
Interviews
This is when an interviewer interviews members of the general public.
Advantages: Questions can be explained if the interviewee does not understand the question
Detailed information can be gathered
Disadvantages: Interviews are very time consuming
The interviewee may feel pressured by the fact they are with an interviewer and not tell the truth.
Observations
There are three types of observation:
Recording - for example, monitoring how many baked bean cans you buy per week.
Watching - for example, watching how many people ride a bike, past the traffic lights.
Audits - for example, counting how much stock there is of various products
Advantages: The gathering of information is fairly inexpensive
Disadvantages: Less detailed information
Experiments
For example when a supermarket gives out free samples of a product.
Advantages: Easy to set up
You get a customers reaction quickly
Disadvantages: People may be too polite to say if they don’t like the product
You only get the opinions of a limited number of people
Secondary research (Desk Research)
This is research that has been gathered previously, and is available for anyone to use. This type of research comes in two forms external and internal.
Internal sources
This is information that has already been collected by the business/person in question and is readily available and cheap to use.
External sources
This information that has been gathered by someone who is not connected with the business/individual. There are many of these sources such as:
Trade associations
Specialist magazines
Reports
Newspapers
Governments reports
Media reports
This method of research is very cheap, but as it does have limitations and you may not always find what you are looking for.
I intend to combine both primary and secondary research to gain the most accurate data.
1) Competition
I searched the Yellow Pages and found that the following restaurants in the area offer fast food:
Vegas Fish and Chip Shop
Henlow Tandoori
The Pacific Fish & Chips + Chinese Take away
Macdonald's
WW Lincoln (Fish & Chip)
Sunshine Café (Pizza)
Bonnie's Baguettes
Millennium Fish & Chip
Millennium Chinese
New Hong Kong Fish & Chip
New Rays Chinese
Peking House
Shapla Tandoori
Charles’ Fish & Chips
Below are some details about the most local companies based in Stotfold
Macdonald’s is an established burger bar. Their main customers are younger people. Their customers like the fact that the food is quite cheap and service is quick.
The Pacific sells fish and chips and Chinese take away. Its customers like the open plan kitchen which gives them confidence in the company’s hygiene.
Henlow Tandoori sells Indian Take away. Its customers say the best thing about it is the free delivery; they say the quality of food is good but could be improved upon.
Sunshine Café is a local restaurant. They offer eat in and Take away Pizza and snacks. It is fairly cheap. Customers go there because it is very local.
Charles Fish & Chips is very local and is well established in the community
RESULTS- Analysis and Interpretation of Data
I sent out a questionnaire and here is the information I collected.
To make the data easier to interpret, I have analysed each of the columns individually. The following pages are an analysis of the information given in the table above. The data is shown and then a brief description of how this data helps me to achieve my aim (as stated on page 3) and how accurate I think the data is.
Gender
The chart below shows how many males, compared to how many females completed the questionnaire.
To present the information more clearly, I have shown it as a pie chart.
These results show a surprising large percentage of females, this suggests to me that general data from the questionnaire will be bias towards the female population. Assuming the data is an accurate representation of the population of Stotfold, this data is very useful. It tells us that female targeted advertising and promotions could attract large numbers of customers. However the sample size of the questionnaire is very small and research done on a larger basis done by the local government has shown the percentage of males compared to females far more equal at around 52% of Stotfold being female.
Age
Below is a table showing the various age groups of the people who filled in the questionnaires.
Here is the data displayed as a pie chart.
This data shows that nearly half the people that filled in our survey are 15 or under. I think that this is probably not a very accurate representation of the population of Stotfold. I think this bias has been caused by the method that was used to collect the data. I asked friends and family to fill in this questionnaire and as the majority of my friends are aged 15/16 I think this has caused the unexpected results. If I were to do the research again, I would take a stratified sample to get opinions from a balanced range of age groups etc I would then research the general public to gain information about the specific population of Stotfold.
Usage
Below is a table showing, out of the people that currently visit Fast food restaurants, who would use a new one in the area.
Here is a pie chart showing the data above.
These results suggest that a new fast food business would be profitable. Assuming the sample is a correct representative of the population of Stotfold then I would say this is a very positive set of results. They indicate that the current population are not happy with current fast food restaurants in the area and a vast majority would use a new restaurant. However, even if this data is correct you cannot rely on 86% of Stotfold using a new restaurant because of: -
- The 86% that would use a new restaurant, all want different types of take away restaurants. It will not be possible to satisfy all of them with the building of one new restaurant
- People may say in theory that they would use a new restaurant but in practice not get round to it in the first crucial few months for a business.
Visit Frequency
Below is a table showing how often people visit fast food restaurants.
Here is that information on a pie chart.
This tells me that the majority of people visit fast food restaurants between two and four times per month. This shows me that people in Stotfold can afford to eat at fast food restaurants quite regularly although they are not seen as an everyday alternative to eating in.
Preference
This table shows which types of fast food people prefer.
Here is the information on a pie chart.
This shows Chinese as being the most popular type of food in Stotfold. However there is already a well-liked, established Chinese restaurant in Stotfold, along with several successful Fish & Chip shops. There is a McDonalds on the outskirts of Stotfold and I think that the successful McDonalds Franchise would be too much competition for a new burger bar. Based on these results I would recommend a new Kebab restaurant. There are none in the immediate surrounding area. Kebab is the third most popular fast food and yet it is not catered for in Stotfold. The nearest kebab shop in the area (according to takeawayreview.co.uk) is in Shefford, about 15 minutes drive away.
Transport
Here are the results of how people are most likely to travel to a new fast food restaurant.
Here are the results shown on a pie chart
The majority of people are likely to arrive by car so for any business car parking/drive through facilities are essential. A location with cycle tracks/good pedestrian access would be a bonus.
Most Important Feature
The chart below shows what people consider to be the most important feature in a fast food restaurant to be.
Here is the information presented on a pie chart.
This tells me that people consider the most important feature to be Hygiene; good ways of restaurants reassuring their customers about good hygiene are open plan kitchens and clean on site facilities such as toilets. Nobody in our service said cost was more important than hygiene so if clean facilities meant putting prices a little higher then I would recommend doing that. Quick service is also important which means employing the right number of staff to do the jobs and training them.
Cost
Below is a table showing how much people would expect to pay for a fast food meal for one.
Here is the above information displayed as a pie chart
The majority of people expect to pay between £3-5 but as fewer people are prepared to pay more than £3-5 than would prefer to pay below I would suggest that this is the top price band. This tells me the most popular price band is £3-4 but product pricing should reflect the quality of and demand for the product.
Combining results
I now intend to combine my results to find out more useful information from the data. Although more information could be gathered by investigating the effect age has on preference, transport etc. I am going to focus on gender.
How does Gender affect the results
Here are the results of all the people that visit fast food restaurants.
For each category I analyse I will show the male and female results in comparison then summarise what I interpret from the results below. Due to the fact that there are more females in Stotfold than there are males. The females’ preferences will have a larger bearing on any possible fast food restaurant to be developed. As there are unequal results from both genders I have converted my results to percentages before showing them on the graph.
Visit Frequency
Below is a bar chart comparing the visit frequency of male and female. I have shown the data on a bar chart because it is easier to compare.
Male and female do not differ significantly as far as visit frequency is concerned. Most customers visit a fast food restaurant every two weeks, which, if there are enough customers, is sufficient to keep a fast food business afloat.
Most Important Feature
The bar chart below shows what both male and female consider to be the most important feature of a fast food restaurant.
This just confirms what the general analysis stated: - that if a business is to succeed its customers must have confidence in its hygiene.
Preference
The bar chart below shows a comparison between male and female fast food type preferences.
The females’ main preferences are already well catered for in Stotfold. Kebab shops are, however , hard to find in this area and are highly popular among males. If a Kebab restaurant opened in Stotfold it could target male customers, although I have noticed that it is not just younger males that enjoy kebabs as one might have expected.
Cost
The chart below shows what male and females expect to pay for a fast food meal for one.
This chart shows that more men are prepared to pay more for their meal than women. I think this can be shown more clearly so here is another chart showing the same information but with different price categories.
This shows that the majority of males expect to pay over £4 whereas females expect to pay below. This shows the male market is more profitable providing production and retail costs are kept to a minimum,
4) Place
Information about Stotfold
Stotfold is a growing town. The development of new houses in the area means that by 2004 the population will have risen by nearly 25%. The population of Stotfold in 2000 was 6680. In 2004 it is estimated that it will rise to 8180.
There are also plans to develop a leisure centre in Stotfold, which may attract even more people to the area.
Stotfold is on the border between Bedfordshire and Hertfordshire; there are many fast food restaurants in Hertfordshire, including large franchises, which would pose a threat to small companies opening up in the area. In my research I have collected information from Bedfordshire but the well-established businesses in Hertfordshire should be taken into account when deciding to start a new company in the area.
There is an area of land on the outskirts of Stotfold by the old doctors surgery. It has planning permission and there is a possibility of a Sports facility being put up there. It is on a main road so has good access and a cycle path leading past the area. It would be extremely expensive to develop this land but if a new Sports facility were to be opened there it may be possible to incorporate a new restaurant on the complex.
Below is a map showing the location I referred to. The area is within the shaded rectangle.
Cost & Legislation (6 & 7)
“Under the National Minimum Wage Act and Regulations from 1st October 2000, there is a general minimum wage of £3.70 an hour, a youth rate minimum of £3.20 from 1 June 2000 an hour (18-21 year olds) and a six month minimum "development rate" of £3.20 an hour for workers over 22 who are accredited training.” www.is4profit.com
If the fast food business is to have employees then they need to follow the payment guidelines above otherwise they may risk prosecution.
The land I have chosen for a possible fast food restaurant has planning permission to build on and if one was to rent space inside a new building there then it is the responsibility of the developers to ensure that the building there is legal.
Evaluation and Recommendation
Evaluation
I think that a larger sample size would have produced more accurate and reliable results, ideally about 50 people. My sample came from a combined class sample, I originally thought this would mean I would get a larger amount of data but actually meant there were fewer results form my local area than I would have collected myself and the results didn’t include all the questions I included on my questionnaire. Knowing the jobs of the people that filled in the questionnaire would have helped me to know the income in the local area e.g. Budget fast food may not be very popular in extremely well off areas. If I were to do this again I would try to get a more representative group of Stotfold by including opinions from every age group etc
Stotfold is growing fast. The number of fast food restaurants in the area isn’t increasing with the population. With two new housing estates planned, there is likely to be about two thousand more potential customers in the area and local businesses are bound to cash in. The houses will be of a similar standard to those that already exist in Stotfold so as the prices would be the same I would expect the same class of people to move there and therefore have similar expectations and preferences as those I have collected information from.
Recommendation
Considering all the information that I have gathered I have come to the conclusion that it would be a sound business proposition to open a new fast food restaurant in Stotfold.
The following information has lead me to this conclusion; the large number of citizens in Stotfold who would use a new fast food restaurant in Stotfold (86%), the fact that Stotfold is a fast growing town and with more people there will become a need for more facilities, i.e. restaurants and finally the fact that although there are many fast food restaurants in Stotfold they do not provide the selection that the townspeople would like.
If people want a new fast food restaurant when there are so many already that means that the current restaurants aren’t meeting their customers needs and demands, therefore there is room for competition. However the current restaurants are managing to survive so a new business needs to be competitive with the other restaurants in the area.
Chinese and Fish & Chips, the most popular fast food types, are well catered for in Stotfold. I would not advise opening another of these restaurants. However, kebabs are popular among the population of Stotfold (18% Favourite ) and for a growing town with so many fast food restaurants it is surprising that there are none of these types of restaurants nearby. I think kebab is an undiscovered niche in the local fast food market and would be prove popular among the population of Stotfold.
I would recomen
I would recommend a fast food restaurant in Stotfold if my recommendations were followed and sufficient market research for advertising etc was carried out.
