7 2
8 4
9 2
10 7
Question 6: How much do you spend per visit for 1 meal or per order?
Money spent number people
£5-10 4
£11-15 3
£16-20 6
£21-25 1
£26-30 2
£31+ 0
Question 7: How many days do you come?
Number of day’s number of people
Once a week 11
Twice a week 4
Three times a week 1
Daily 0
Question 8: how convenient is the location on a scale of 1 to 10? (1 being very bad and 10 being very good)
Location rating number of people
1 0
2 0
3 1
4 0
5 1
6 0
7 0
8 2
9 5
10 7
Question 9: how good is the product range? (On a scale of 1 to 5, 1 very good and 5 poor)
Product range rating number of people
- 9
- 2
- 5
- 0
- 0
Question 10: Do you live in Small Heath or Sparkbrook or neither?
Area number of people
Small Heath 6
Sparkbrook 8
Neither 1
Secondary research
Whilst I was doing secondary research about Indian food over the Internet and market reports, I found out that it accounts for the highest share of the ethnic food markets. Retail sales rose by approximately 6% between 1996 and 1998 to reach a value of 250 million pounds. Ready meals are the biggest selling product, although these have seemed slow in growth rates since the mid 90s.
Source: AC Nielsen 2001
The graph above shows Indian food has more value than any other ethnic foods and more percentage share. This is an advantage to me because my business is an Indian takeaway, which also gives me great comfort and a source that will motivate me even more to succeed.
The Indian food market has five main flavours: tikka masala, roga josh, korma, balti and madras. Consumers are looking for flavours, which reflects what they see in takeaways. This has given structure of growth in all areas of the market.
Source: AC Nielsen 2001
The graph on the above shows that there is more value in ready meals than in cooking sauce or ingredients, takeaways are always preparing ready meals for their customers therefore, and this can be an advantage for turnover profit.
Forecast 2002 to 2006
The Ethnic food market will continue to grow strongly over the medium term. There are a variety of foods to be brought to the market and consumers’ interest in overseas recipes continues to develop.
Source: AC Nielsen 2001
Demographics
The UK population is an ageing one; child population is decreasing whereas over 45 year olds’ group is forecast to grow. This affects the ethnic food market in various ways. People are retiring earlier and are on higher incomes, these groups have more time available to spend their money on takeaways. This should influence positively on all areas of the market, which means my business the ‘Tandoori Junction’ will be having customers, aged 45 and over. The fall in the under 30 year old population may lead to a slow down in sales of ready meals.
Workingwomen are important consumers of Indian ready meals with 38% having eaten a complete ready meal at takeaways and at home in three months prior against a mean of 30%.
Source: Annual abstract of stastics 2001 (the Stationery Office)
Secondary research: Market analysis
The UK market for ethnic foods grew rapidly in the late 90s, with sales rising by 29% to £848m between 1996 and 2000. The largest sectors of the market are Indian and Chinese, with TexMex, Thai, Caribbean, Indonesian/Malaysian and other cuisines taking up smaller market shares.
The ethnic foods market has grown more rapidly than the food market as a whole, for a number of reasons. Expenditure on food increased in the late 1990s, as levels disposable income grew. Much of the rise was dedicated to trading up the more premium products and changing to more exciting options. The wide range of cooking media focusing attention on new eating trends, as well as the increased accessibility has also fuelled this. Of long haul travel.
Ready meals are a simple entry point into the various ethnic food dishes for many consumers. The chilled ready meal market in particular saw booming sales in the late 90s, with frozen options seeing greater investment on the part of suppliers more recently. They are also a convenient way to offer variety in the diet. Furthermore, accompaniments have seen a rise in sales, as consumers have demanded more authentic eating experiences.
The suppliers to the ethnic food market vary greatly in size. A number of the UK’s major food processors have a presence in various sectors of the market, but there is also room for many small brands, including those, which are sourced directly and imported for distribution.
The ethnic food market remains in a growth phase and sales will continue to rise year-on-year in the medium term. There are still many dishes and recipes, as well as cuisines, too be brought to the market – and for the time being consumers are receptive to new options.
Healthy annual sales growth has been a feature of the sector in recent years, as higher disposable incomes have enabled consumers to spend more on eating out and demands for convenience foods have grown. Store expansion by the leading fast food brands continues to be an essential driver affecting annual sales growth.
The best performing sector last year was chicken, which is often perceived as a healthy fast food option. Improvements to outlets, new larger outlets and attempts to attract more family dinners have all helped sales. The fish and chips sector- the traditional British takeaway – continues to suffer from fragmented structure, a lack of branding and continued competition from global fast food brands. Indian and Chinese takeaways form the largest sub sectors in the ‘other fast food and takeaway outlets’ sector. These outlets suffer from the same problems as the fish and chips sector.
The fast food and takeaway market is dominated by global brands, led by McDonald’s. The market is forecast to increase at approximately the same rate in 2002 as in 2001 and should experience steady annual growth up to 2006. An increasing number of workingwomen, more dual-income families with children and more single-person households will be among the factors influencing sales. Store expansion will continue and ordering via the Internet will become a feature of the market.
Source: Keynote Market Report 2001, http://www.keynote.co.uk
Source: Keynote Market Report 2001, http://www.keynote.co.uk
The graph above shows that takeaways and restaurants are doing very well than retail sales year by year.
The graph below shows that more people in C1 social group purchase takeaway food.
Future Marketing Strategies of my takeaway.
The primary products that would be offered by my takeaway the Tandoori Junction would be:
- Asian starters
- Tandoori dishes + Roti (chapatti)
- Chicken dishes
- Sag dishes
- Bryani dishes
- Curry dishes
- Malayon dishes
- Moglai dishes
- Korma dishes
- Kashmiri dishes
- Bhuna dishes
- Duplaiza dishes
- Dhansak dishes
- Pathia dishes
- Madras dishes
- Ceylon dishes
- Vindaloo
- Phai
- Sundries
- Vegetable side dishes
- Desserts
- English meals
Note: The menu will explain these dishes
Promoting the takeaway
I need to distribute leaflets and flyers door to door, which would be delivered by myself. The leaflets are a form of advertising for the takeaway, which is cheap. This I feel is the simplest way to get the message across to would be a customer. Newspaper adverts are another way I could promote my takeaway.
Also pens will be another source of advertising.
Aims and Objectives for the takeaway:
- Increase market share
- Regular increase in turnover
- To provide a high quality service
Target customers
Local people living in Small Heath and Sparkbrook, because Sparkbrook is about 10 minutes walking distance from Small Heath. Passing trade due to my business being situated on the main road in Small Heath, which is Coventry road. Small Heath is also about 5 minutes drive from the city centre and Broad street to be precise where it is busy on Friday and Saturday nights and target customers would also be late night clubbers.
Competitors
There is the ‘Tandoori Plaice’ takeaway, which I have closely looked at in the early part of this assignment. There is also an Chinese restaurant, which is also on Coventry road. Major players such as McDonalds, Little Chef and Burger King will not affect my takeaway as they already have loyal customers who are hard to steal from these major organisations. Therefore, my takeaway will be in fierce competition with Donor Kebab outlets or Kebab houses, as they like to call them, which are scattered, all around Small Heath and Sparkbrook like moths attracted to light!
Marketing Mix of the takeaway
- Product – Quality, Presentation, unique flavoured food.
- Price – Prices that are cheaper than my competitors.
- Promotion – Distribution of menu, advertising on the menu, viral marketing, 2 for one. Offers or buy discounted dishes before a certain time limit daily.
- Place – On a main road; Coventry road in Small Heath, 5 minutes drive from the
- Birmingham city centre.
Distribution strategy
Customers can come to collect their meals or meals can be delivered to them provided that the meal costs over £8. However, delivering the meals in a takeaway is not good because it can cause all sorts of problems like delivery vehicle costs and not enough staff for deliveries.
Pricing strategy
The data on prices in the primary research needs to be used as a benchmark for prices.
As a short-term pricing strategy just to enter the market, I will use is ‘Promotional pricing’ this means that I will charge special low prices for a short period of time this price I feel it would attract more customers and it certainly get my business off the ground in the growth phase.
S.W.O.T ANALYSIS
STRENGTHS: Tandoori Junction will be located on a main road in Small Heath. The
Population around the area is about 5000 approximately and is principally close to the city centre.
There is less competition because there are only 2 takeaways close by. Which are:
- Tandoori Plaice (Sparkbrook)
- Chinese takeaway on Coventry road
The Chinese takeaway is located on the same road that my takeaway will be located on, it seems that the Chinese takeaway is coping very well even with all the fierce competition with the Kebab houses and fast food outlets in the vicinity. So I believe that starting up an Indian takeaway, will not affect the Chinese takeaway and vice versa.
WEAKNESSES: Most people come out when the weather is good, this can be a problem. In spring and summer people come out, therefore, takeaways are busy that time but in winter the businesses’ sales level decrease.
Takeaways are subject to often-stringent legislation as with most other sectors of the food industry.
OPPORTUNITIES: Tandoori Junction has a very unique selling point USP that is an open kitchen. A majority of Indian takeaways do not have the facilities to show customers how their food is being prepared and the enjoyment and sheer exhilaration of watching food being cooked is second to none.
My staff would be given the artistic licence of preparing some new dishes if the sales figures reach a certain target each week.
THREATS: My competitors are a major threat because they have the capabilities and the know how of getting customers because they have been around longer than my takeaway has so there is no doubt that they’ll hay a few tricks up their sleeves to maintain their share of the market.
P.E.S.T. ANALYSIS
POLITICAL: Foot and mouth disease would affect transport of livestock, which would in turn would affect the supply of meat and dairy products (which are a key part most Indian dishes) due to new laws being introduced.
Public spending – taxation would also be an political factor for takeaways.
ECONOMIC: If employment falls then my business could face problems, because as a result people would not have enough money to spend on takeaways, however, the opposite may occur if employment goes up. If more jobs and wages were promising then there will be more disposable income and then more people would purchase takeaways.
Prices – would increase because lack of supply due to foot and mouth.
If there were a boom in the economy there would generally be more demand, however this could take place via a recession.
Foot and mouth will not only affect the food industry but other industries in the long-term. For example foundries make components which are used in the manufacturing of food, however if the industry was unable to produce that particular food they wouldn’t need to make the components causing the foundries to lose profits due to loss of business.
SOCIAL: Social Trends: Takeaways would be considered leisure facilities for people to spend their disposable income on.
Lifestyles and diverse tastes of consumers.
Demographic issues: The population is getting older which could affect the demand for the takeaways.
TECHNOLOGICAL: For takeaways, new things attract a lot of customers such as new product development, I would therefore, have new products such as new flavourings and also my equipment would need to be durable.
Better cooking equipment would also be used.
Production process (H.R.M) of a takeaway.
Kitchen porter – cutting onions, potatoes, prepare vegetables, clean dishes, and help the 2 chefs
Chef – cook the base (gravy/sauce), cut the chicken, lamb etc, and cook the curry including side dishes, stock control
Tandoori chef – make the Nan bread, rice, starter dishes, and dried dishes made in the oven for example Chicken Tikka.
2 Waiters – answer phone calls, serve customers, operate cash tills, close lids on containers, serve rice into containers, help the 2 chefs, stock control with the chef.
Organisational structure of the takeaway
Boss
When the boss is away, one of the waiters who has been there for a long time and knows the way around the takeaway takes the responsibility of giving orders. When the Chef and Tandoori chef are busy, and need some assistance they can ask the waitress for support.
Employment- all permanent jobs
- The Chef would be full time: 56 hours per week
- The Tandoori Chef would be full time: 56 hours per week
- The Kitchen Porter would be part time: 24 hours per week
- The 2 Waiters would be full and part time each week: one 24 hours and the other 56 per week
Performance related bonus.
All employees will have weekly fixed pay, they would get 10% bonus at Christmas:
Chef Tandoori Chef Kitchen Porter Waiter
£240 basic wage £200 basic wage £100 basic wage £150 basic wage
£24 bonus £20 bonus £10 bonus £15
£264 bonus wage £220 bonus wage £110 bonus wage £165 bonus wage
Quality Assurance plan
This can be defined as ‘meeting customers needs’ or ‘what it takes to satisfy the customer’ or ‘fitness for purpose’.
Consumers’ perception of the quality of a product is the most important factor in determining its success.
Quality is more important than price in determining demand for most goods and services. Customers will be prepared to pay for the best value. Value is added by creating those quality standards required by customers.
Anyway, for my Indian takeaway quality will be based on Quality control and Quality assurance. Inspectors carry out quality control. Inspection and testing are the most common methods of carrying out quality control. For takeaways:
- Food is tested before made e.g. raw products mixed with spices
- Food is tested when made e.g. from the spoon, tasting the food.
- I have to make sure the food is looks good and is ‘garnished’ with specific toppings and flavours e.g. coriander on all spice foods and coconut shreds with single cream on all sweet dishes.
Quality Assurance – this is concerned with trying to stop faults from happening in the first place, it is also to make sure products are produced to predetermined standards.
All the food in my takeaway produced will be of the highest standard, because I will purchase the best supplies and raw products around for cooking.
As this is a small business I don’t think it will fall into the category benchmarking e.t.c.
LEGAL CONSIDERATIONS
To run an establishment that involves food, certain standards in my takeaway need to be met. I need to contact the environmental health officer (EHO) through my local council. The EHO will, at the early stage of my takeaway business, ensure that the operation conforms statutory regulations, thereby avoiding costly refits for me. They will also investigate accidents at work involving staff and general public, health and safety complaints and provide information to business and members of the public to increase general awareness of health and safety.
In addition, there are certain regulations my takeaway must abide by. These include food premises (in order to register my Indian takeaway with the local authority), food safety, hygiene and temperature, financial laws such as requirements on food VAT charges as well as a licence if I decide to serve alcohol. I will also be restricted to alcohol being served only with a substantial meal.
Job description
Head chef required
- Chef required for Indian Takeaway
- Accommodation provided
- Minimum 3 years experience
- Health and hygiene certificate required
- Salary Negotiable
Chefs required
- Large Indian bar and restaurant
- Must be self-motivated and possess leadership qualities
- Minimum 3 years experience
- Health and hygiene certificate required
- Salary Negotiable
Waiters required
- Good communication and numercy skills (level 2 and 3).
- Organisation skills
- Very motivated and devoted to hard work
- Salary negotiable
Equipment
Item Cost Location
Refrigerator £800 Catering warehouse
Freezer £350 Bargain pages
Hot plates £600 Catering warehouse/auction
Cooker £1000 Warehouses
Pots and Pans £500 Warehouses
Grinder £700 Wholesalers
Sink and Shelves £600 Warehouse
Tandoori Oven £700 Catering warehouse
Microwaves (2) £500 Curry’s
Fryer £350 Auction
Signage £1000 Factory (made to fit)
Canopy £1000 Factory (made to fit)
Cash tills £50 bargain pages
Total £8150
Cash flow forecast – Assumption made:
- VAT rate remains at 17.5%. All figures included VAT.
- All equipment will be purchased in good working condition.
Stock bought for one week.
Lamb £300 a week
Vegetables £25
Chicken £80
Total £405 a week (Cost of stock every week plus giro which is £200. so final cost is £605 a week, this is paid instalment every week).
Suppliers
Giro foods Ltd Birmingham
Meadway Grocers Birmingham
These are local family groceries, they deliver all over Birmingham and they are also cheap.
Premises
Making a decision to open a business, especially food outlets you have to take a lot into consideration when searching for a property.
I have chosen 3 areas in consideration in Birmingham, which are, Alum Rock, Bordesley green and Small Heath.
We were considering doing a business in Alum Rock and have noticed that there is a vast majority of food outlets. There are 7 Indian restaurants, which include takeaways as well, 3 chip shops, kebab houses and one pizza place. So we believe setting up a business here will not be suitable for profit or might not work out or we will fall into bankruptcy. All Alum Rock businesses have their local loyal customers and they might try out food from a new outlet and after that customers prefer to eat at usual outlets.
Small Heath has many more outlets, as it is a bigger area. It has nine Indian restaurants, five Indian takeaways, four chip shops, kebab houses, three pizza houses and five bakery shops.
Looking at this it shows me it has a huge demand in food. Either to do with snacks or main meals. It shows that it is not a good place to set up a business seeing as though it is over populated with food outlets. There might be a chance to do so but it seems that there would be no point and if everyone else does situate there, they might fall into a problem where they might not have any trade due to other food outlets.
The last place I have chosen is Bordesley Green. This area has only four takeaways, one Chinese restaurant, two chip shops and one pizza house. I believe if we situate the Indian restaurant here it will be successful. This shows me that every one is making money without falling into any financial trouble and situating a Tandoori takeaway here would not be a problem. Also I was brought up in this area so I know how the other shops are doing.
I have found out that we would be making a profit over sales, and have a steady turnover if we are situated here because there is not a major share of food outlets here.
Legal Aspects
Consumer Protection
This is an important area to start a business, which will sell goods directly to consumers, it also regulates trade between businesses, Acts under takeaway:
Trade description Acts – Makes it an offence to apply a false or misleading description to your goods or services and a false or misleading indication of the price.
Sales of goods act – Require that your goods are described that is, they comply with the description given to them. They must be fit for the purpose for the use described to the customers when making the purchase. They must be of satisfactory quality, this allows consumers to return goods for relatively minor defects, which may not necessarily have comprised their fitness for purpose.
All food outlets will have a problem at one time or another to do with food, e.g. lack of flavour, different product packed into the bag, which was not ordered by the customer. Our policy would be that if there were any minor problems with the food we would either return the dishes stated or give them a refund. The only major problem we can see with the food would be food poisoning and this will involve a complaint, to avoid this, we will be very hygienic to not prevent this happening anyway. If this happens we will offer the customer a full refund or a free meal next time they come. Also we will have a full investigation into why this happened.
Sales of Goods and Services Act 1982 – Requires that companies and trades people must use reasonable care and skill in providing services.
Consumer Safety Act 1978 – Allows the government to introduce or update regulations concerning the safety of goods to reduce the risk of personal labelling, container, materials, parts etc and the way it operates meet the relevant safety regulations. Consumers for any damages connected with your product being defective can sue you.
Food and Drink Acts – Concerns catering business as well food and drink producers. These cover food hygiene, food ingredients and the labelling of ingredients, artificial colorants and preservatives.
Food Safety Act 1990 – Control of all aspects of food safety and hygiene throughout the food distribution chain, including locations where food is manufactured, prepared and sold.
Environment
Environmental protection act 1990 – has applicant for the way in which you produce good and services. It seems to prevent pollution of air, water and land from emissions resulting from the product process. It controls waste disposal methods, litter, odours, vibration, noise and other side effects of business that may damage the environment, create a public nuisance.
Employing Labour
Employment protection act 1978 – deals with the fundamental rights of your employees, including their right to receive written particulars of the terms of employment.
