Description of Business Idea

Company Description

XYZ restaurant is my proposed first food restaurant that will be located in Illinois. Its specialization will be a special menu that puts emphasis on health issues and changed life styles. It will offer a variety of Chinese foods including dishes such as Cantonese, Szechuan, Hunan Cuisines and vegetarian that offers a basis for a healthy body: an objective for many. It will stand above other similar service provider through its exclusive healthful Chinese menu with seasonings and exquisite being perfected to provide attractive and flavorful dishes. The cooks will possess skills to enable establishment of an exceptional eating centre providing Chinese cuisine in Illinois.

Industry

The size of the first food industry in the state of Illinois is growing at a substantially high rate. A report in “Restaurant and Institution” indicated that the rise of the first food industry began in the early 1990s. In 1994, for example, the total sales of the leading 400 restaurants were $167 billion having risen by 6.8% because of the first food services (Scarborough & Zimmerer, 1995). The health consciousness that people have developed over time has made them use vegetables which are fundamental in Chinese meals. Chinese cuisine food units are for this reason growing at a higher rate than any other first-foods.

The Chinese cuisines are mostly provided in big cities and especially those along the coast where the first immigrants from Asia settled in the 1970s and 1980s. However, Chinese family restaurants are currently being operated in many parts of U.S. The demand tends to be constant throughout the year with exceptional of holidays and other days such as Valentine’s Day, birthdays and Mother’s Days (Broom & Longenecker, 1975). Illinois attracts thousands of shoppers on daily basis who always take meals while there. This provides a strong support for any food business operating in the city and creates a going concern perception to any promoters in the food industry.  

Target Customers

XYZ will provide a wide range of products to appeal to different segments in the market. It will observe the diversity that exists in the market based on gender, culture and age that affects the consumers’ perception and taste. More specifically, the Chinese cuisine will be prepared to suite different lifestyles and economic aspects of the consumers. The customer needs will be met by ensuring nutritious food with low fat content for health purposes. Given the urgency due to the tight schedules of different segments of the market, friendly and quick services will be offered. XYZ will be operated from 11.30 A.M. to 10.30 P.M. on daily basis. Customers will also enjoy such benefits as adequate parking and clean environment so as to attract new customers and create loyal and evangelical ones.

On the basis of ages, young people (18-35) are believed to be tightly held in their working places and have a higher affinity for leisure. They are likely to form a major market segment that XYZ will have to give a special focus. To avoid taking much of their precious time, the takeaway meals will be always available and served in white biodegradable bags. These services will be extended to single families too. XYZ will also appreciate the influence that children and youth have on what a family consumes. The elderly people (35 and above) are believed to have a high demand for parking areas which will be provided adequately (Pride et al., 1999).

Professions in the market will also form a basis of market segmentation. There will be conference rooms to cater for meetings that may be organized while enjoying the Chinese cuisines. This will especially be facilitated by the current trends in organizations to organize team building activities to encourage team works. Such services will be extended to students who study in different institutions in Illinois. Other segments will be based on income. Chinese cuisines are cheap and, therefore, there is an expectation of affordability by everyone. However, there are those who may require special attentions due to their social and economic status. They will be attended to promptly.

Competitors Analysis

There are more than 3000 thousands restaurants in different parts of Illinois. A substantial proportion of these offers fast food services. Stiff competition is expected from firms such as McDonalds, Good Times Chinese restaurant and Subway that offer a closer marketing mix as anticipated by the XYZ. However, XYZ potentially possesses a competitive edge as indicated in the competitive matrix indicated below:

Production and Offering Plan

Fast food Chinese preparation is quite an innovative field in the restaurant industry. XYZ will make use of highly experienced cooks with experience of more than four years. There major dishes provided will include Szechuan, Hunan cuisines and Cantonese with greater specialization on Chinese cuisines. Meat will be bought while frozen or fresh, maintained and will be cooked to save time upon request. Excess vegetables will be refrigerated to avoid going bad.