This is Dissertation Research Managing Restaurant study about managed complete restaurant business plan, It is the final part of Dissertation Proposal – Opening a Spanish Restaurant in Dubai.
The aim of this Research is to develop a full-fledged and completely integrated business plan that can guide in the opening of a new Spanish restaurant, called Tapeo in Dubai.
3.1 Research objectives
The main objective of carrying out all the research and doing a complete literature review is to establish a business plan for opening a new Spanish restaurant in Dubai. The business plan that would be generated here on the basis of all the research and literature review is not only for opening of the restaurant but would also help in finding investors for the plan. Opening of a new restaurant is an expensive business and would require capital sources from different investors and venture capitalists and hence the business plan should be sound enough to attract these investors. Another aim of the business plan is to gain capital for funding the capital. The restaurant is being opened not only as a profit making business to make money out of it but in addition to the profit making aim, another major objective of the business plan is to develop a restaurant that would help in enriching the lifestyle of the citizens of the city, Dubai so that they get an entertainment and dine out option and hence can have a better style of living.
The business plan is currently for opening a single restaurant in Dubai but the long-term objective of all the research and planning is to establish a platform that would help in facilitating the opening of a group of restaurants. The plan does not end with the opening of one restaurant but would lead to a beginning of an entire chain of restaurants that would be opened at different locations in the city or probably different countries at a later stage. Thus, we see that the objectives of the research being conducted are not just short-term but actually include a long-term vision that can help in shaping the business plan keeping the long-term goal in mind.
3.2 Research methodology
Research is an integral part of carrying out any activity because it helps in gathering information that can then be translated into action for achieving the set objectives, goals and targets. In this dissertation report, a business plan is being formulated for the start of a new Spanish restaurant in Dubai and hence it is important to carry out a complete research to understand the market and to determine the feasibility of the business plan in the existing environmental and business conditions.
The objectives of the research have already been defined and hence it is important to define a format and a methodology for carrying out the required research so that we get all the required information for meeting the objectives defined above. Research methodology is nothing but a defined set of rules that can be helpful in gathering, disseminating and processing information to meet the set objectives. Here, we would use a mix of both primary, as well as secondary research formats for making the research much more comprehensive and yielding.
Secondary research is the mode of research that is carried out to study and analyze the research that has already been carried out by other researchers and academicians. There are lot of information available today and can be accessed via using different tools such as internet, journals, newspapers, magazines etc. Secondary data can be gathered from internal and external sources. We use secondary research because they consume less time and are more cost effective and hence allocating a good share of the research methodology design to secondary research is a good practice.
For the business plan of opening a new restaurant, secondary research can be used for determining the existing rates, cost of capital, cost of leasing, competitors, market size and market share and other information related to the market or the industry. One can even examine and analyze the case studies of existing or already opened restaurants to learn from their mistakes and their operational advantages.
Due to the timeliness issue of secondary research, researchers often combine several primary research techniques with the secondary research techniques to get an in-depth study of the data. Primary research helps in gathering real-time data obtained from analyzing and studying people and their views, expressions and thoughts. There are several primary research tools that can be used such as surveys, experiments, questionnaire etc.
In the present case, primary research can be conducted to gain more insights into the needs of the customers so that the strategies can be built accordingly. Understanding what the consumers want and what the residents of Dubai are looking for in a new restaurant that would help in creating better experience and value addition for them and hence this can be extremely helpful in collecting data to relate the restaurant’s attributes that can enhance consumers’ experiences.
Quantitative & qualitative research
The research being carried out for establishing a business plan for opening a new Spanish restaurant in Dubai should have a mix of quantitative and qualitative research. While qualitative research is used for the purpose of determining the attributes and qualities that would attract better social interactions and interpretations, quantitative research is more about testing the hypotheses on the basis of specified numbers and figures. The qualitative research is based on tools and techniques that use more of personal interaction with the consumers such as questionnaires, surveys etc. whereas quantitative research involves statistical tools and techniques.
The qualitative data here would include a research on the hotel industry and the existence of competitors, which can be done by secondary analysis. It would also require understanding the consumers’ needs via surveys, questionnaires, focus groups etc. Whereas quantitative data would be more number focused and can help in the financial and operational planning for the restaurant. Determining the costing, budgets, forecasting the cash flows etc. are some of the crucial quantitative data that are required for the plan.
4. Data collection
The objectives and the methodology of the research have been defined but in order to gather and accumulate data from these different research methodologies, it is important to adopt a planned and defined approach. It is important that all the required data is collected from the appropriate sources and by using the correct methodologies and tools for developing a sound business plan. We would thus look at the different sources and tools of collecting qualitative and quantitative data.
4.1 Qualitative data
Qualitative data can be either gathered from the general information available on different sources for collecting secondary information or by carrying out different primary research methodology.
- Secondary research of newspapers, magazines etc.: There are several sources, online and offline that would give qualitative information for the research. In the present scenario of opening a restaurant, it is important to gather these qualitative data from the already existing sources so that they can be combined with new findings.
- Interviews and Questionnaires: Special interviews can be conducted with a sample of the target audience, at least a number of 500 people, to understand their psychology and their needs and wants when it comes to a restaurant. Specially designed questionnaire that gives their preferences in terms of attributes can also be helpful.
- Observations: the behavior of consumers can also be monitored to assess their behavior under different circumstances and to analyze what they prefer. In this case, the customers dining in other restaurants can be observed to examine their reactions to different attributes of the restaurant to strategize the new restaurant.
- Focus Groups: The data collection should include focus group discussions so that their opinions and views towards opening of a new restaurant in city can be determined. This can be used for assessing what they need in terms of pricing, quality, ambience, location etc.
4.2 Quantitative data
Quantitative Data is everything that involves numbers and figures that are then used for making decision. There are several tools like regression analysis, hypothesis testing and Likert Scales. Quantitative data is better than qualitative data because it presents a proof in terms of numbers that can help in quantifying the results and observations. We can use some of the below mentioned data collection methods for gathering quantitative data:
Internet and Mail Surveys: Quantitative data to measure and quantify the preferences of the consumers can be collected via internet and mail surveys. The respondents can fill in their responses in form of rankings or Likert scales that can then be quantified and appropriate conclusions can be drawn out of the same.
Experiments: experiments are also a very popular way of gathering and collecting quantitative data, as they give the number of chances and probabilities under which an occurrence holds true and hence a hypothesis can be easily proven with respect to this.
The data that is obtained from the quantitative analysis is much easier to analyze and interpret as compared to the qualitative data and hence before opening the restaurant, it is crucial to assess the qualitative as well as quantitative results for better understanding of the consumer.
5. Method of analysis
Since, the research and analysis requires the collection of qualitative, as well as quantitative information, it is important to develop questionnaires and surveys. Two forms of taking surveys and questionnaire filling can be used, one offline on paper and another one online by using the tools provided by the Survey monkey website. This will help in expanding the reach of the survey and the data can be collected from more number of people. Since the data we are collecting from the consumers would be qualitative, as well as quantitative, we would require different tools for analyzing the same for getting accurate results.
The methodologies and tools that are used for analyzing the qualitative data mostly consist of logical analysis of the responses that we get from the respondents. There are also special tools that have been developed for coding purposes that can be used effectively for examining the characteristics of the qualitative data received from the observations and surveys. Interpretations need to be made on the basis of context and meaning and then they are accumulated and put together to draw conclusions out of them.
When it comes to the analysis of the quantitative data, the use of SPSS Software makes maximum sense because it is one of the best tools that can be used for the purpose of data mining, data mining and data interpretation. It is a full-featured data analysis program that follows special syntax rules for carrying out different operations. Some of the common operations carried out by the SPSS software are data definition, file interfaces, data analysis and data modification. Because of its ability to modify data, changes can be made to the input data and then results can be drawn out of the same. The software can even assist for additional operations such as descriptive analysis, correlation analysis and regression analysis.
The data analysis thus done in this step can be represented in various different easy to read and easy to understand modes. The findings and results should be presented in the form of graphs, tables, charts etc. so that it becomes easier to understand the results in a clearer fashion. The spending patterns of the customers and the things they value the most in a restaurant needs to be presented in clear graphs and tables so that it becomes clearer for a third person reading the same.
In order to develop a business plan that can appeal to the investors, it is crucial that a complete thorough analysis and research is carried out. The research should not only include the study of the industry but also needs to include an analysis of the competitors and the firm’s ability to match its expertise with the needs and requirements of the customers. The research methodology, techniques for gathering the data and even methodologies for analyzing the data have all been discussed. But it is not as simple as it sounds and the research would come across numerous limitations and challenges, which are described as below:
- Biased responses: the research is highly based on the inputs or responses received from the consumers because the restaurant industry is a complete consumer driven industry, their inputs are the most important. But the entire research would become redundant if the consumers’ responses get biased in any way. Biasness can creep in because of any reason and hence this is the biggest challenge that can hinder the development of the plan and the results in a smooth manner.
- Sampling the Population: population sampling for conducting the research can impose another big problem in the research. This is because there are some surveys that would be done online and hence sampling the population and asking only specific people to take the survey is a very daunting task and hence can limit the accuracy of the findings of the survey.
- Change in Results validity with Time: there will be a time gap between the conduction of the research and the actual implementation of the same and hence the results of the research become redundant or invalid with the changes taking place in the external and internal environment with time.
- Problems due to Invalid or Unclear Questions: in order to receive accurate and timely data, it is important that the questions for the survey and the questionnaires are framed accurately. And the presence of any inconsistency or doubt in the same can lead to unwanted variations in the results, thus giving false or misleading results.
The main aim of the entire study is to develop a business plan that can help in the opening of a new Spanish restaurant in Dubai. A thorough literature analysis is carried out for examining the significance of the business plan and the various elements that are a must to be included in the plan. A business plan serves several purposes, the most common among them being the development of a structured approach to initiate the business, getting people to invest in it and assess the feasibility of the plan.
Some elements of the business planning that are extremely crucial include industry analysis, marketing plan, operations management and financial planning. Each of the elements has their own significance and importance and hence it is crucial and hence we examined the various tools and strategies that need to be applied for the same. Complete assessment of the existing literature is carried out to understand the activities that are crucial for the business plan.
We also assessed the different types of researches that need to be carried out in order to develop and implement the business plan in a structured and appropriate manner. It was realized that a mix of primary, secondary, qualitative and quantitative data and research methodologies and data that need to be gathered with the help of different techniques and methodologies such as focus group, surveys, interviews etc. that can then be analyzed qualitatively and quantitatively to reaching the desired conclusions.
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