Challenge 1: The Menu
It was challenging for us to come up with a balanced menu, specifically, the menu had too many items, and most of them were not priced appropriately. Moreover, the menu was not creative. The long menu led to long ticket times, and this implied that it would take long to each and every customer (Jones, Hillier & Comfort, 2016).
This challenge was solved by modifying the size of the menu. We decided to reduce the number of dishes, and we aligned the menu with the restaurant's unique proposition. We concentrated on the menu’s layout by grouping the profitable dishes together and eliminated the dollar signs from it. We hired a copyrighter to design a compelling menu of the restaurant. Besides, we put the menu on the restaurant’s website and made sure that the customers can access it easily from their mobile phones. Finally, the prices for all the dishes were adjusted to an affordable level.
Challenge 2: Customer Service
We did not have clear strategies for creating good impressions on the customers. Specifically, our ambiance was not delightful, and this was assign of poor customer service.
We solved the challenge of customer service by outlining customer dedication strategies. A training program on customer service was launched to enlighten the restaurant staff.
Challenge 3: Unique selling point
There was great difficulty in coming to a unique selling point for the restaurant because we focused more on the provision of great food. The lack of a unique selling point hinders a restaurant from having an emotional connection with the customers.
The challenge of a unique selling point was solved by establishing our competitive advantages. Specifically, original ideas were included when designing the business plan of the restaurant. The authenticity and originality of the restaurant’s idea increased its competitiveness of the restaurant in the market. Specifically, the restaurant focused of offerings that were completely Italian, and this helped in attracting the Italians and other clients that like the offerings. We resolved that integrity with the food would be the unique selling position of the restaurants. Through integrity, the restaurant will meet and exceed the expectations of the customers.
Challenge 4: Management
We overlooked the issue of management thus we did not analyze how the restaurant would operate profitably. We did not include the details of running the restaurant on a daily basis, and this led to organization issues. Furthermore, the management duties were not defined clearly, and this contributed to the overlapping of responsibilities.
We solved the issue of management breaking down the number of customers we are likely to feed every day depending on the meal times. We outlined the steps of tracking the menu items ordered by the customers. Additionally, we pointed out the profitable items in the menu and computed the cost of preparing each dish on the menu. We designed a budget for casual and permanent labor and will stick with it to improve the efficiency of operations at the restaurant. Moreover, we came up with the sales goals forecasted the profit and loss for every month. It is imperative to note that a good location and theme was selected for the restaurant. The location and theme helped the restaurant to stand out from the other restaurants. Further, the organizational hierarchy was designed, and the duties of the staff were outlined clearly.
Challenge 5: the Hiring and Training Employees
The issue of hiring and training the restaurant workers was challenging because it is not easy to get the right employees (Hoque, 2013). Most of the initial applicants lacked a formal training thus they were incompetent.
The challenge was solved by making extra efforts to find the right and qualified workers. We came up with a plan to train and inspire all the new employees. We strived to maintain a management structure that is solid, and this is instrumental because it ensures all the staff executes their responsibilities in a way that is appropriate. The management team resolved to be motivational, exemplary, adept and committed towards running the restaurant.
Challenge 6: Marketing
The marketing of the restaurant was not adequate because the budget that was allocated to it was insufficient. The restaurant lacked sufficient presence in the online world, and this was disadvantageous because most of the Italian restaurants have invested significantly in the online market.
Nevertheless, we started working on the problem in time and this help to remedy the situation. Specifically, we embarked on the formalization of the restaurant's brands, and this included its graphics, mission statement, position, and competitive advantages and vision. We designed a six-month marketing plan that revolved around the restaurant's products, prices, promotion, and location. In addition to that, the restaurant's website was upgraded, and this improved its appearance on the mobile phone, desktop, and tablet. Also, digital marketing and social media were included in the promotional program. A database of the customers' email was set up for purposes of making follow-ups on the satisfaction levels of customers and maintaining contact with the customers. In the same way, a customer loyalty program was designed to reward the loyal customers. Creativity was upheld when designing the marketing program. Also, inexpensive ways of marketing the program were selected because of limited funds.
Challenge 7: Capital
There was insufficient capital to start the operations of the restaurant. There were inadequate financial resources to meet the unexpected costs. The start-up finances for the restaurant were underestimated, and this hindered the restaurant from including all the prominent Italian dishes on the menu.
The issue of capital was solved by looking for investors that invested in the business. The investors were issued 15% of the stake in the restaurant. Moreover, the operational expenses were minimized to limit the total expenditures.
Challenge 8: Poor Management of Inventory
The food costs are the leading sources of expenses in restaurants (Benavides-Velasco, Quintana-García & Marchante-Lara, 2014). The restaurant lacked the capacity to manage the cost of foods because of improper storage, waste, inconsistent sizes of portions, the high cost of monitoring and the failure to assess the quality and accuracy of deliveries.
The challenge was solved by monitoring the costs of foods and determining proper pricing schemes. The wastage of food was predicted accurately, and the reorder levels were computed to avoid under both stocking and overstocking.
Challenge 9: Competition
The restaurants faced stiff competition from the already established Italian restaurants in the area. Furthermore, the management lacked sufficient knowledge concerning the competitors in the industry.
The challenge was countered by focusing on an aggressive marketing campaign and by differentiating its offers from those offered by other restaurants. The customer service strategies were designed to develop loyal customers. The management strived to develop the customer base for the restaurant. Finally, a marketing research was conducted to determine the pricing, promotion and product strategies of the competitors.
References
Benavides-Velasco, C. A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality management, corporate social responsibility and performance in the hotel industry. International Journal of Hospitality Management, 41, 77-87.
Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation, and performance. London: Routledge.
Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the Hospitality industry: some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management,28(1).
