Quantitative Methods Management Report SURREY & HAMPSHIRE RESTAURANT SECTOR

Authors Avatar

MANAGEMENT

REPORT

SURREY & HAMPSHIRE RESTAURANT SECTOR

MANAGEMENT

REPORT

SURREY & HAMPSHIRE RESTRAUNT SECTOR

EXECUTIVE SUMMARY

This report analyses the survey conducted by the Kingston University Small Business Development Unit.  The survey was carried out in Surrey and Hampshire, and looked at restaurants in the area.

The report states that large sized restaurants dominated the restaurant sector in the area of Surrey and Hampshire. The majority of these can be classified as being in the fast food sector, thus, they are company-owned franchises. This therefore indicates new small business should launch a fast food restaurant as this type of restaurant would be the most profitable market.

As the summary measures have shown the business outlook of restaurants within the Surrey and Hampshire areas is bordering unfavourable and this is a damaging environment for new business and therefore they should be wary. However even though the outlook is bleak there is a potential to earn an average gross sales of £100,000 to £140,000.

The company-owned restaurants also dominate the sector in Surrey and Hampshire, hence it may be a difficult market for small businesses to break into as company owned restaurants or franchises such as Mc Donald’s are very well established with strong brand names and consequently have brand loyalty; this form of business also has large amounts of capital invested in them.

Company-owned restaurants dominate the area therefore making it harder for a small business to operate successfully.  However, if they were to open a fast food restaurant, or increase expenditure on advertising and promotions they are a lot more likely to be successful

MANAGEMENT

REPORT

SURREY & HAMPSHIRE RESTAURANT SECTOR

CONTENTS PAGE

INTRODUCTION ………………………...………………………………………...  PAGE         4        

         RELEVENT SUMMARY MEASURES ....…………………………………….   PAGE        5

         MARKET SHARE BREAKDOWN …..……………………………………….  PAGE        6

         BUSINESS OUTLOOK VS RESTAURANT TYPE …………..……………….  PAGE       7

           

         AVERAGE AMOUNT SPENT ON ADVERTISING ……….…………………PAGE    8-9

         PERCENTAGES ……………………………………………………………….  PAGE     10

         CROSS CLASSIFICATION TABLE OF RESTAURANT SEATS ……………. PAGE          11

CONCLUSION ...…………………………………………………………………….  PAGE      12

RECOMMENDATION ……………………………………………………………… PAGE     13

APPENDIX ………………………………………………………………………….  PAGE 14-27

REFERENCES ………………………………..……………………………………...  PAGE     28

MANAGEMENT

REPORT

SURREY & HAMPSHIRE RESTAURANT SECTOR

INTRODUCTION

This report will provide Kinston University Small Business Development unit with a report that evaluates the status of the Surrey & Hampshire restaurant sector by using data which will be useful for small businesses in the planning and operating of restaurants. The main objective of the survey was to evaluate the status of the current restaurant sector and to identify particular problems. It creates a summary which is useful to small businesses, as it helps to evaluate the current condition of the sector in Surrey and Hampshire by identifying important issues.  

The report contains summary measures to the responses to each of the survey questions. This helps to generalise the survey responses, therefore creates more user friendly data; it also includes the responses from the questionnaire in the form of graphs and charts, and also provides recommendations as to the best way to assist future small businesses in the two counties.

 In order to collect the data, it was decided that a self-completion postal questionnaire would be the most practical means of obtaining the desired information from restaurants in Surrey and Hampshire.

By evaluating this data we aim to provide small businesses with the essential information that is needed to plan and operate a successful restaurant.

To: Kingston University Small Business Development Unit           

Date: 19th March 2005

From: Rana Fayed, Simanjeet Gill, Tarequl Islam, Kamran Riaz, Ali Azful

Subject: Analysis of the survey to help develop useful data for small businesses in planning and operating restaurants

RELEVENT SUMMARY MEASUERS

Rather than considering all the data collected from the survey we focused on analysing the information specific to small restaurants as it would be a lot  more beneficial to small restaurants as not only is it competitor analysis but it also will give new restaurants potentially important information in planning and operating their restaurants.

The survey brought many issues to light such as the out look of restaurants with in the area of Surry and Hampshire and after calculating the relevant summary measures for the results from the survey we establish that the outlook is bordering unfavorable as the mean, mode and median all displayed an average of “3” which is slightly unfavourable. This could have adverse consequences for potential businesses; as if the general outlook is poor then it’s a damaging environment for new businesses.

Gross profit was also identifies in the survey it is useful for all potential business as it gives them a brief indication of revenue , and what is needed to brake even and intern profit. By calculating summary measures we have established an average gross sales of £100,000 to £140,000.

Capital invested could be useful as a from of competitor analysis. The analysed data is varied as the mode shows that the majority of restaurants have no new capital invested in the restaurant in 2004 yet the mean show an average of $5230 invested in 2004.

Join now!

When starting a new business or even if it’s an established business it is important to know about the market that the business is operating in therefore it’s important to know the current market value. The mean value of the market is £127,000.

The mean cost of goods sold is £3930 this is also an essential part of revenue profit and braking even especially in the catering industry where stock is very easily perishable.

Similarly the annual wage bill is also valuable information as it gives employers a brief idea about how much expenditure is needed for staffing. The mean ...

This is a preview of the whole essay