Market Research
Kenzie’s buffet is a newly launched fast food restaurant in the food and beverages sector, in Ontario. It was founded in May, 2015 by partners Rissy and Harold Carroll who moved to Canada from Kentucky in the US. The restaurant is in the fast food industry and this industry is very competitive. The restaurant can sit up to 300 patrons and has a separate pizza hut and a separate fun room for kids to eat in.
The menu consists of hamburgers, French fries, chicken sandwiches and a special burrito named Kenzie’s burrito. It is constructed in such a way that the backside is a drive through for the patrons who are in a hurry (Ramrayka, 2014). They have a delivery service which is restricted to pizza delivery. Since its inception it has been able to attract a stable sustainable clientele.
The target market for the restaurant is families since it caters for an adult and a kids menu. It also targets millennial, this is the group of youth born between the 80’s and the 90’s this target group is estimated to visit fast food restaurants at least 12 times in a month (Yohn, 2011).This could be attributed to the fact that this age group is either in or just out of college and they therefore rarely cook. They could also be young couples who prefer to go out instead of making traditional meals. Their consistency makes them the best target market. Another market that Kenzie’s buffet targeted was moms (Frisch, 2015). They make up a large customer base since they are the decision makers of where the family eats. They prefer fast service, healthy food and value.
The general target market is the middle class. The restaurant is run by Harold Carroll with Rissy as the head chef. The management team is divided into sections with 30 workers from cooks, to waiters, cashiers, and delivery personnel.
The fast food restaurant in the country and all over the world is very competitive (Management, 2008). There are so many restaurants and international franchise restaurants that pose the greatest competitive threat for Kenzie's buffet. It has struggled to establish itself as a brand in the country and it has needed to create a difference that will set it apart from the other competitors. This paper shows a market analysis for the company in the country. Consumer’s value innovation and efficient quality service and this is base that the company is set on.
The competitive grid analysis shows the top competitors for the company in and around Ontario in the same industry and food sector. These establishments serve a similar menu as Kenzie's buffet and they appeal to a similar target market. According to the analysis, the company is rated low on service efficiency against all other competitors. This would then require improvements in human resource that could then lead to improvement in services that are rendered.
The staff could be increased and staff morale building done by the company so as to improve efficiency of service and increase ratings from the customers. The main competitors in terms of service are subway and In-N-Out Burger. This could be because they do not handle a large client base. The quality of food is rated high and it ties with Wendy’s on the food with subway and In-N-Out Burger is rated medium. The quality of food at Kenzie’s Buffet is what has strengthened its brand in Ontario. It was rated highly affordable against its main competitors since most of them usually target the upper middle class whereas the food at Kenzie's is affordable to the lower middle class and upper middle class and anyone else with disposable income.
The fast food offered at Kenzie's is more affordable than most health food restaurants that are usually overly expensive. It will however need to improve on its hygiene as it was rated medium with subway having the highest rating. It had been noted that the trash bins were not emptied efficiently and were usually full by mid day. The overall hygiene of the food was rated high. The competitive grid analysis helps a company to rate itself against its competitors so as to determine where the company can make improvements and rise above the competition (Hollowel, 2011).
Industry / Market analysis
A market analysis gives a clear business plan into the market. It study’s how dynamic the market is (William, 2013). The food and beverages industry is very dynamic. Kenzie’s buffet focuses on maintaining its target market the lower and upper middle class who are in the millennial and moms. This target market is viable for the profits of the business because this target group has disposable income and it suits their work needs especially those who have multiple jobs and eat in between shifts lacking the time to cook (Talwar, 2009). The restaurant seeks to expand into other cities within Canada in the near future but is satisfied with the one establishment for the time being. Ontario is ripe for business and any expansion would be in towns around it so as to reach more customers who travel long distances to that one establishment.
According to Ibis world, the restaurant industry has been struggling because people prefer to buy the healthier (Fast Food Restaurants Market Research Report, nov 2015). Another problem facing it is the saturation of establishments that lead to prices being forced to be low and it predicts slow growth although the statistics are positive on profit margins. The bench marking of SMEs like the restaurant would help Kenzie's buffet to operate at an optimum level by evaluating how it measures up to the others in the same market (CBN, 2013). This requires tools and it predicts that the business is expected to perform well in coming years and the goal of expansion may be realized.
On line premises, drive through and fast food restaurants were approximated to generate the most revenue internationally in the food and beverage industry. Consumer spending in the fast food industry is at an all time high in Canada and it is therefore a highly promising market (Statistics and facts about the Fast Food Industry, 2014). Kenzie’s buffet is projected to do well in Ontario, the market is ready and it has managed to create a brand because of its exquisite food and special burrito that is specially prepared using a top secret recipe. The competition in the area is a small threat but it can take the opportunity for expansion. Therefore, incorporating all the competitive advantages into the company’s operations would lead to high sales turnover to the company’s products. In addition, these market segmentation premises are articulate for the present performance and projected outcomes of sales (Diviney, 2003). These interventions will see the business thrive amidst intense competition in the food industries today. With region of potential being earmarked for the Kenzie’s products, it’s apparent that the market segmentation will play to the advantage of the restaurant within its mainstream markets.
References
CBN. (2013). Benchmarking . Canada Business Network .
Diviney, M. (2003). A study of the market trends of the restaurant industry in America, paying particular attention to training, marketing and market research. London: Luncheon Vouchers Catering Education Trust.
Fast Food Restaurants Market Research Report. (Nov 2015). Ibis world .
Frisch, E. (2015). Target Marketing for Restaurants. Food service warehouse .
Hollowel, J. (2011). Moodle as a Curriculum and Information Management System. Packt Publishing Ltd.
Management, U. o. (2008). Managing Workforce Diversity Within the Fast Food Industry in New Zealand. University of Waikato,press.
Ramrayka, L. (2014). Brands continue to target fast food marketing at kids. The guardian .
Statistics and facts about the Fast Food Industry. (2014). statista .
Talwar, J. P. (2009). Fast Food, Fast Track: Immigrants, Big Business, and the American Dream. Westview Press.
William Winston, R. E. (2013). Market Analysis: Assessing Your Business Opportunities. Routledge.
Yohn, D. L. (2011). 2 Target Markets for Restaurants. QRS magazine .
