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Small business development of Fair Fast food restaurant.

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Introduction

Title: Small business development of Fair Fast food restaurant Executive summary This report covers the content that analysis of the Fair fast food restaurant is how to successfully operate and survive in the cutthroat market as a small business starter. Fast food and organized catering is nothing new to Hong Kong. Through SWOT analysis, we may easily find that Fair fast food had 12 years history in Hong Kong fast food industry and it is well-known as serving mainly Chinese food and its menu is frequently changed with seasonal favorites; secondly, it sufficiently concentrates on employees' development in order to improve their work performance. Furthermore, the cost of raw materials and shipping can also be reduced through economies of scale; lastly, its' menu design is outstanding and designed around four time segments to cater for different needs of customers. However, Fair fast food always gives the customers the images that it is a copycat, always copy the food recipe either from caf´┐Ż de carol; further more, it suffered food quality control and financial instability. Upon the aspects of external environment analysis, the Fair fast food has positive condition like increasing "Not cooking" young couples, economic downturn period, food preference of younger and teenagers, its' ascendant location in Kowloon, and Hong Kong is an attractive traveling city will make more opportunities for Fair fast food to develop. However, some external impediments as natural disaster and keen competition in catering industry will threateningly cumber its development. The part of enlightening from interview and analysis can easily obtain that the Fair fast food restaurant has been successfully developing from one outlet to 11 outlets today due to their management philosophy that always follows the basic rules like automation, fast, and Utilization of proper resources. Additionally, its management Concentrates on maintaining quality and safety of the food product, accelerating store openings in hard economic times, and frequently making advertisement through effective medias. ...read more.

Middle

Insufficient food quality control There is negative news published by Hong Kong Sing Tao Daily on 24th July 2002, a customer found a razor blade in rice when she is having lunch in the Fair fast food restaurant. After the even, the woman complained for compensations from Consumer Council of Hong Kong. During that period, Fair fast food has suffered sales pelting and given a deep negative impression to the customers. Suffering from financial instability For the six months ended 30 September 2002, the Fair fast food recorded a turnover of HK$776000 a decrease of 9% from the turnover of HK$847000 recorded in the last corresponding period (Refer to appendix). According to the answers of interview question, the net loss of Fair fast food restaurants has been keeping pelting from 7.9 million losses in March 1996, until 7 million losses in March 2002; the average rate of negative growth is 28%. (Refer to appendix) Opportunities( Increased "Not cooking" young couples Hong Kong is a thriving, prosperous, and busy seaport; therefore, most of the hongkongness have their special lifestyle as usually the young couples seldom cook at home after work or overtime job due to weariness or time. According to the figures provided by Hong Kong statistic department, the number of households in 1997 is 1 .941 million, 2.115 million in 2001, and 2.170 million in 2002, the growth rate of households is 2.6% in the following years. Therefore, this implicates when the higher the growth rate of households, the more opportunities for Fair fast food to manage and compete with other rivals in the future. Economic downturn Refers to appendix table A, Hong Kong's GNP in the third quarter of 2003 was estimated at $324.1 billion at current market prices, down by 1.9% from a year earlier. Total factor income inflow into Hong Kong, estimated at $80.9 billion in the third quarter of 2003 and equivalent to 25.4% of GDP in that quarter, and decreased by 12.7% from a year earlier. ...read more.

Conclusion

In order to capture the market shares, the Fair fast food restaurant firstly concentrates on maintaining quality and safety of food product and gives a good image to the customers. It accelerated store openings in hard economic times( The economic downturn of 1997 and 1998 adversely affected most sectors of the Hong Kong economy as consumers encountered inflation, job insecurity, and unemployment, often for the first time in a generation. However, many of these reversionary conditions have turned out to be to the benefit of the fast food and organized restaurant chains with retail rents falling, consumers seeking value for money and cheaper establishments as opposed to independent restaurants. The fast-food chains are actually expanding. During this period, the Fair fast food expanded rapidly and since then growing from 5 restaurants to 11 in 1998, while serving over 10,000 customers daily. It is heaviest advertiser( At the beginning of the Fair fast food established, it has recognized the importance and immense influence of adverting. They frequently made advertisement through different Medias so that it captures the different interests of different segments in the market. Refers to the answers of the interview questions, Fair fast food has spent almost 1 million on advertising during the first 5 years. Conclusion In conclusion, the reasons why the Fair fast food restaurant may develop from a small industry till today's sweeping industry are, the business owner of the Fair fast food restaurant understands the difference between the features of his business and the benefits it provides. For instance, the customer will be able to conveniently choose their outstanding food menus that are designed around four time segments, and also are priced differently taking into account the eating and spending habits of its customers. Secondly, Mr. Lee determines the target market to increasing "Not cooking" young couples and teenagers and launches the right product at the right timing. Besides that, the management philosophy of Fair fast food restaurant is main reason to access and survive in such a cutthroat market environment. ...read more.

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