• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23

Our business idea is traditional Russian restaurant which will be situated in Baker Street.

Extracts from this document...


OVERVIEW Our business idea is traditional Russian restaurant which will be situated in Baker Street. It will represent genuine Russian cuisine and atmosphere in the uniquely decorated time-honoured surroundings and accompanied by pleasant employees. MISSION STATEMENT "To provide a place where people can enjoy the genuine Russian atmosphere, traditions and customs, while getting pleasure from traditional Russian food and entertainment in the heart of England." TRENDS DISCOVERED FROM MARKET ASSESSMENT Accordingly to the market research we found out that: theme restaurants are of a growing interest as well as ethnic restaurants. Therefore we can conclude that there is a growing demand for our type of restaurants. BUSINESS STRATEGY Revenue Streams Meals Billiard games Celebration of special occasions Bar drinks Entertainment SWOT ANALYSIS Strengths Weaknesses Geographic location Narrow service line Access to variety of customers No brand image Provided Entertainment Lack of space (e.g. parking) Quality of food and services for reasonable prices Friendly staff Opportunities Threats Target different consumer groups All substitutes Create customer loyalty All other leisure activities Expand to nightclub or karaoke Changes in economic Market growth circumstances 2004 2005 Revenue 518635 570503 Profit 59191,5 119874,8 NEW BUSINESS CONCEPT The fact that our new venture would be based in such a multicultural place as London straightaway gives us a huge opportunity to succeed. First of all because this broadens our target market, now we not only aim at English people and about 100,000 Russians living in London, but also all other nationalities who would like to expand their knowledge of Russia by staying at our little island of Russian culture called "Izba". We have this confidence in existing demand due to a lot of research we have done recently. Phrases like "I love Russia, Russians, your language and your culture!" or "I have been to Russia so many times and miss that and that so much!" is something common to hear from a British person or any foreigner. ...read more.


Respondents in the ABC1 socio-economic group are also most likely to think that better service will be found at small restaurants rather than large ones. Categories used to describe consumer behaviour include: Quality Seekers This consists of 84% of respondents who value quality of service and will, therefore, choose restaurants which they perceive as providing this. Of note is that these consumers are not restricted to branded (chain) restaurants but invariably will visit independent restaurants, viewing them to be better able to provide the quality of service that they seek. Innovators Representing 67% of respondents, these are typically consumers who are susceptible to new foods, venues and concepts when eating out. These diners are likely to be more inclined to choose restaurants providing different cuisine from British food restaurants and are also likely to visit eateries that change their menus on a regular basis. These include independent restaurants that are more able to change their menus due to their supply structure being less restricted Ambience seekers With just over 60% of respondents representing ambience seekers these are a group of consumers for whom the restaurant surround is as important as the food. Consumers in this category place a greater value on entertainment and will visit restaurants that provide some sort of theatre. Restaurants which appeal to this group include themed restaurants where memorabilia plays an important part in creating the general feel of the restaurant; and traditional restaurants providing British, French, Italian, Indian and Chinese cuisine where the ambience is captured by the music played and design of the furnishings. More recently minimalist restaurants have become popular. These typically have basic furnishings such as wooden tables and benches in a modern setting. Music played at these venues will also be contemporary. Special treat seekers This category is represented by 42% of respondents and typically includes consumers who do not eat out often, but are more likely to dine out for special occasions, events or when there is a special promotion undertaken by restaurant operators. ...read more.


Break-even = 241,000/71% of price = £339,437 This means that in order to break-even the restaurant must have sales of £339,437 in one year or £28,286 per month. £ Total revenue Total costs 339 437 241 000 Fixed costs Customers Evaluation of break-even analysis Break-even analysis is simple to conduct and understand. Also it is cheap and can be carried out quickly. It shows profit and loss at various levels of output, particularly when it is presented in the form of a chart. This may be of a particular value when a business is first established. Indeed it may be that financial institutions will require this sort of financial information before lending any money to someone aspiring to run a business. Although it is a rudimentary technique, break-even analysis can cope with changing circumstances. We have seen that the technique can allow for changing revenues and costs and gives a valuable rule-of-thumb guide to potential profitability. However, break-even does have some drawbacks. It pays little attention to the realities of the marketplace. A major flaw is that it assumes all output is sold. This may well be untrue and, if so, would result in an inaccurate break-even estimates. If a firm sells less than it produces it incurs costs without earning the corresponding revenue. This will substantially reduce profits. In times of recession, a firm may have difficulty in selling all that it produces. Although break-even can cope with changes in prices and costs, in the real world such factors change regularly making it difficult to as a forecasting technique. Changes in tastes and fashions, exchange rates and technology are all examples of factors, which could invalidate break-even forecasts. The model assumes that costs increase constantly and that firms do not benefit from economies of scale. Similarly, break-even analysis assumes the firm sells all its output at a single price. In reality firms frequently offer discount for bulk purchases. Finally, break-even analysis is only as good as the data on which it is based: poor quality data can result in inaccurate conclusions being drawn. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Finance essays

  1. Financial analysis of Wipro ltd. The ratio analysis of the company has been derived ...

    is remaining almost same Between 2005 to 2007, but it is decrease in2008 because the the company has increase share capital but profit not getting that much increase. * Company is getting same return on equity. * As a result the share holders are getting higher return every year and

  2. This group assignment of Financial Management will assess the positions financial performances for six ...

    * 100 = 25.54% 266720000 2004 180517000 * 100 = 12.08% 1494310000 61976000 * 100 = 23.37% 265190000 2005 155979000 * 100 = 10.46% 1491518000 19695000 * 100 = 7.39% 266447000 2006 201289000 * 100 = 19.91% 1010791000 12987000 * 100 = 4.92% 264169000 2007 168479000 * 100 = 16.25%

  1. Stelios founder of easy Group.

    was to pay an additional 600,000 euros per month until the option was exercised. If easyJet decided to exercise the option and desired to acquire DBA on a debt free basis, it was required to pay an additional amount between 30 million euros and 39 million euros to British Airways.

  2. Exchange rates. When international trade makes up a significant proportion of a countrys ...

    Even in countries which do not operate a fixed exchange rate regime, the rate is closely monitored and extreme movements countered by direct policy action. Monetary and fiscal policy and the exchange rate Governments can influence the exchange rate most directly through monetary policy.

  1. Gap - Analysis - McDonalds

    This means running and opening great restaurants and providing exceptional quality, service, cleanliness and value ('QSC&V'), so that we make every customer in every restaurant smile'. Usually, local management teams who know its market firsthand run product and market strategies.

  2. Information Technology and Developments in the Banking Sector Globally

    This has happened primarily by improving the availability of cash since an ATM can be thought of as a new service outlet for a bank. As a result of the expansion of the service outlet network, i.e. of the combined sum of traditional bank offices and ATMs, it is estimated

  1. Netflix was the first company to create an online DVD movie rental service. ...

    Competitors such as Blockbuster and Hollywood video were relatively slow to respond and were initially unaware of the market share Netflix would capture in the upcoming years. This has given Netflix a sustainable competitive advantage. An opportunity that Netflix could (and is currently considering)

  2. My project title is COMPARATIVE STUDY OF HOME LOANS. I selected this topic because ...

    There should be less number of legal formalities, in case this exists, then, these should be completed in less time. This will be helpful in attracting more customers. 4. Although the interest rates on specific norms, yet customers seek less interest rate which can lower their cost of house.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work