Development of aF&B Concept
The Market
• Market demand
• Market research
– What is regarded locally as the most popular cuisine style
– What is regarded locally as a trendy cuisine style
– Does the area have large specific ethnic groups (i.e. Irish,
Italian, Polish, Jewish) that might impact the restaurant
concept?
– Are there any underserved cuisine/concepts in the
area/region?
– What is the eating culture – Lunch
– What is the eating culture – Dinner
– Main feeder markets for tourists
– Drinking culture
The Market
– What will be HOT in 2-3 years from now
– Will people eat in restaurants with no direct street access
– Is coffee culture / take away food popular
– What is not known in this culture - is there an opportunity to be
a market leader in a restaurant style
• Do's and Don'ts
– Any styles of cuisine to avoid
– Any service styles to avoid
– Any cultural considerations to take into account
– Do open kitchens add value
• Strengths & Weaknesses SWOTAnalysis
• Opportunity and Threats SWOT Matrix
Strengths Weaknesses
Opportunities SO - strategies WO - strategies
Threats ST - strategies WT - strategies
Competitor Analysis
Competitive Market Survey
Please complete this based on if you were to refurbish your existing offering in the next 2 years what would the competition be.
Prices
Ratings/Awards Other Information
Restaurant Style & (average prices Capacity, Additional
Opening Year (i.e. Michelin Cuisine Style Chef (Phone number,
Name Decoration of a la carte and Covers Information
stars) website, etc.)
set menu)
Other Information
Ratings/Awards Style & Capacity, Additional
Bar name Opening Year Beer Price Glass Wine Price Cocktail Price (Phone number,
Decoration Sq meters Information
website, etc.)
• Which (independent) restaurants are ‘market leaders’ in the
city/neighborhood?
• Which restaurants/bars are in a three/five block radius?
• Which restaurants/concepts have closed recently in the vicinity ofthe
hotel, why?
• Which developments are planned in the proximity of the project over
the next 3 years?
Competitor Analysis
• What are the objectives of the competitors?
• What strategies are the competitor pursuing and how
successful are these strategies?
• What are the strengths and weaknesses of the
competitor?
Legal Search
• Identify possible legal factors (city, state, federal) that
might impact the concept development
• Identify the criteria used for the application of a liquor
license
• Identify the hours during which alcohol can be served in
a restaurant/bar
Determination of concept
• Type of cuisine and style of cuisine
• Style of concept
• Marketing mix
• Operating philosophy
• Service style
• Design
• Uniqueness of this concept
• Mission statement and vision
• Name of concept
Determination of Concept
• Number of seats
– Mix of twos, fours and larger sizes
• Private dining room options – determine:
– Size
– Flexibility
– Location
• Opening hours
• Smoking or Non-smoking
• Average number of covers per meal
• Price point
Atmosphere
• Design
– Select images for design direction
– Write concept brief using words to describe
– List/describe key features/elements
• Look and feel of space
• Decor
• Colours
• Lighting
• Furniture
• Entertainment
• Music Style
Menu Development
• Creation of menu
– Size
– Variety
– Number of items
• Signature dishes (3 max)
• Set menus
• Menu highlights for lunch and dinner
• Kids menu
• Beverage list (beer, soft drinks, coffee and tea)
• Progressive Wine list
• Cocktail list
OS&E
• Chinaware
• Glassware
• Flatware
• Table top
• Linen
• Other service items
• Quantities for all items to be ordered
Policies &Procedures
• Brand standards
• SOPs
• Training
Pricing Strategy
• Pricing policy
• Average food check for starters, main courses and
desserts
ROI – Return on Investment
In order to see whether an investment for a new F&B
concept makes sense, a forecast needs to be made to
calculate the ROI by following these steps:
– Determine the number of years to pay back the
investment/development costs
– Complete a 1 year forecast using the table
– Calculate the ROI
Formula to calculate ROI:
1) New GOP – Less previous GOP = Incremental GOP
2) Investment / Incremental GOP = ROI (number of years to pay back
investment/development costs)
Staff
• Minimum number of staff of different types
• Uniforms
• Determine staffing guide per shift/number of covers
Legal issues
• Obtain (EVC) agreement on proposed name
• Conduct initial legal search on preferred name
• Obtain ownership approval for name
• Conduct full legal review for name
• Register name/trademark
Collateral
• Logo
• Menu (main menu, dessert menu, beverage menu)
• Wine list
• Website
• Business card
• Stationary
• E-mail banners
• Coasters
• Matches, etc.
