Business Viability Analysis of Taste Bud’s Eatery

Catering and food business is booming globally with technological advent and flourishing of the global tourism industry. Globalization has further enhanced taste buds of individuals, who are now open to varied tastes from different corners of the world. The scope of this project analyses business of a continental restaurant in Delhi region in India. Taste Bud’s Eatery will be a 60 situate fine-eating eatery with a 20 situate relax. It will be centred aroundDelhioffering varied cuisines from all around the world. It will be situated in the blasting, and quickly extending, precinct of Delhi.The region needs a warm and benevolent place with magnificent sustenance. Taste Bud’s Eatery will include a comfortable lounge area and a rich parlour(Solomon et al, 2014). The parlour has comfortable love seats and antique love seats with a delicately lit bar. It will be the ideal place to stop in for some food, for a drink or for an independent venture meeting. For additional solace and to satisfy an expansive gathering of individuals we will make up exceptional hors d’ oeuvre platters for clients.

Project Aims and Objectives

The project will have the following aims and objectives, which will need to be satisfied for attaining its goals.

• Project Aim 1:To understand viability of the business
• Project Aim 2:To analyse customer influx relative to the business
• Project Aim 3:To understand competitor’s forces acting on the business
• Project Aim 4:To understand macroeconomic factors playing role in the business

Project Scope

The restaurant will be established post studying and analysing its business viability. While understanding business scope for the project, a brief analysis of macro-environmental factors that will be acting on the business will be analysed. While establishing a business in India, it becomes crucial to understand macro-environmental forces that will be acting on the business(Smith, 2015). Moreover, an analysis of industry competitive factors also needs to be understood prior to establishment of the business, such that it can devise strategies according. Post understanding of the external factors, market segmentation along with customer analysis will be undertaken for the purpose of the business.  

Project Viability

The business ownershave a long time of involvement in the providing food business and comprehend what a vital customer needs and needs. With a vast Global menu for clients to choose from and the restaurant can offer full cooking administration giving everything from table settings to the sweet. It has been envision our aggregate deals distribution to be 85% eatery deals and 15% providing food deals. The consolidated cost of offers will be 33% creating a gross benefit of 67% on add up to deals. The project through its literature review will analyse several journals and materials in order to understand viability of the business. Consolidating these journals and articles a framework will be developed for collection of data and then testing it across statistical platforms. A SPSS data analysis will be conducted for data collected in order to test for business viability and its establishment in the market.  

Literature Review

Project Consultancy

The project will take guidance from internet sources, books in the library, journals and company magazines. The scholar will aim at encompassing major information sources from collecting secondary information available across various platforms. All information regarding similar restaurant establishment will be collected over a prolonged period of a month, such that varied sources can be attended. However, the project will not aim at taking any outside management consultation or aid from any other source.

A background information and framework is needed for the purpose of building any study. Search for background information is termed as literature review of relevant sources, which has been undertaken in this study as well. There are various books, journals, company reviews and other relevant materials that have been searched for the purpose of this study. The literature review section has been sub-divided into various smaller sections for the sake of simplification. According to the literature review developed data will be collected and analysed to arrive at detailed understanding regarding viability of the project of establishing restaurant in Delhi.  

Background Information of India

India is a developing country and is termed as one of the fastest growing service sector in the BRICKS summit. India with its robust population and new initiative for ‘Make in India’ is undergoing tremendous transformation. With development and rapid investment into service sector, there has been a propensity to consume food from restaurants. There are establishments of several types that are coming up in the region as fine dining restaurants, fast food joints, catering services as home deliveries and many other business models are emerging(Taylor, Bogdan&  DeVault, 2015). There are multiple Apps that have established their businesses in India as world famous Food Panda, Indian Zomato and Swiggy. Analysis of development of several restaurant models is critical to understand which model is performing best in the country and within Delhi region. Delhi being the capital of India has high population with regular influx of tourists from abroad as well as from within the country. Delhi can serve as an ideal location for the purpose of setting up a fine-dining restaurant. Journal by Updhyay and Sharma (2014) evaluates culinary preferences of foreign tourists in India (Updhyay& Sharma, 2014). This article provides useful information for highlighting the various menu preferences that exists amongst foreign individuals visiting the country. Foreign individuals comprising of ambassadors, expatriates and tourists prefer eating mostly at fine-dining restaurants that offers multi-cuisine food.

Food and Menu Preferences of Customers

Pantelidis(2010) offers useful insights into food and menu preferences amongst diners who prefer eating out(Pantelidis, 2010). The journal incorporates a comprehensive understanding related to varied food choices that are offered across restaurants in Delhi and some of the most preferred choices. Though traditional road side “Dhabas” serving local cuisines have recorded maximum amounts of sales yet multi-cuisine restaurants have recorded steady amount of sales in the last fiscal years. Gaining insight into the menu, it has been decided that it will be propelled from various nations’ claims to fame and advance to a different customer base. Customers can get Swedish fortes like herring, gravlax and meatballs, or can order somewhat more Global and pick a red curry chicken with basmati rice, or an Asian flame broiled shrimp with spinach, tofu and dark bean sauce. There will likewise have an extraordinary pasta dish course each day in addition to the ‘all American supper, for example, grill meat ribs and prepared beans. Including quality will be a fascinating business lunch menu with claims to fame consistently. The menu will change each 3-4 months however keep the top picks. Costs will be aggressive with other upscale eateries in the zone. Be that as it may, it is the technique of Taste Bud’s Eatery to give a view of higher incentive than its rivals, through its sustenance, administration and stimulation.

Namkung and Jang (2008) identified the several quality related factors that are integral to maintain customers influx. Due to high population in Delhi region, there will be continuous influx of customers but for repeated purchase there needs to certain quality maintained. The Food Safety and Authority of India provide certain standards related to serving of food that is binding upon restaurants to follow. Ryu, Lee and Gon Kim (2012) incorporate factors other than quality of food that are integral for restaurants to maintain (Ryu, Lee &Gon Kim, 2012). The article examines quality of the physical environment, food, and service on restaurant image that impacts customer perceived value, customer satisfaction, and behavioural intentions. The eatery will be open seven days seven days. It will offer exceptional topic evenings to pull in new clients to Taste Buds. The eatery will be fine eating in a comfortable climate. Warm hues, new blooms, delicate music, candles and astounding work of art from a portion of the territories will decorate the place by most striking new specialists. This will add to a feeling of group and allow new specialists to demonstrate their work for an assorted customer base. Amid the bustling summer months one can likewise sit outside on our porch and we will offer a unique summer menu, including lighter passage, fascinating beverages, and in addition non-alcoholic offerings. The yard and garden setting will be a fun and easy-going climate for the late spring swarm.

Quality-related Factors

Ali and Nath(2013)analyses factors that affect consumers’ eating-out choices in India, having implications for the restaurant industry (Ali &Nath, 2013). From this article it has been analysed that factors apart from good and high quality food greatly impacts customer choices for deciding on a restaurant. For the current restaurant it has been decided that the administration will be casual, amicable and rectify. The management will enlist the best individuals accessible, preparing, spurring and support them, and consequently holding the friendliest most productive staff conceivable. Our administration group will include people, whose foundations comprise of 50 years involvement in nourishment, eatery and lodging, providing food, administration, back, advertising, craftsmanship and films.

External Market Analysis: SLEPT Analysis

India, known as the Republic of India, is the seventh biggest nation by region, and the second most crowded on the planet with in excess of 1.2 billion individuals. Accomplishing autonomy in 1947, the South Asian nation is known for its social assorted variety and is likewise among the world’s driving vote based nations. For as far back as decade or thereabouts, India has been encountering a steady development in its Gross domestic product, alongside a constant development of advancement from 1991 till date. The nation has likewise been opening its ways to draw in speculators and remote organizations to additionally advance development. In order to demonstrate signs of improvement comprehension of the business condition in India, a SLEPT examination of India is conducted. SLEPT is an abbreviated form for social, legal, economic, political and technological factors.

Social Factors: The social variables allude to any adjustments in patterns which would affect a business situation. For example, the ascent in India’s maturing populace is bringing about a significant ascent in annuity expenses and increment in the work of more established specialists. India has a populace of in excess of 1.2 billion individuals with around 70% between the ages of 15 and 65. Consequently, there are structures with rates as indicated by age. These structures contain changing adaptability, in instruction, work demeanours, wage appropriation, et cetera.

Legal and Environmental Factors: In the current past, various legitimate changes have been executed in India, for example, reusing, the lowest pay permitted by law increment and handicap segregation, which has straightforwardly influenced organizations there. Be that as it may, with regards to condition, the nature of air in India has been unfavourably influenced by industrialization and urbanization, likewise bringing about medical issues. Subsequently, there have been foundations of ecological weight gatherings, commotion controls, and directions on squander control and transfer.

SLEPT Analysis of India

Economic Factors:

Bawa et al. (2010) examined the economy of India has been fundamentally steady, since the presentation of the industrial change approaches in 1991 (Bawa et al., 2010).Agrawal and Khan (2011) analysed that according to the strategy, decreases in mechanical permitting, advancement of remote capital, development of FIBP et cetera, has brought about a steady change of India’s financial condition(Agrawal & Khan, 2011). The nation enrolled a Gross domestic product of INR 296.74 trillion out of 2013 after a further enhanced Gross domestic product development rate of 5% out of 2014 when contrasted with 4.35% out of 2013. Currently with the initiative of “Make in India’ several new establishments are coming up. With increasing number of service class further propensity to spend amongst the young democratic age is increasing significantly, which make restaurant business a viable and feasible operation to be set up.   

Political Factors:

Bayley (2015)proposed that being one of the biggest vote based systems on the planet, India keeps running on an elected type of government Bayley (2015). The political condition is significantly impacted by variables, for example, government’s strategies, lawmaker’s interests, and the belief systems of a few political gatherings.

Clapp and Dauvergne (2011) examined the business condition in India is influenced by multivariate political elements (Clapp & Dauvergne, 2011). The tax collection framework is all around created and a few charges, for example, wage assess, administrations duty and deals charge are forced by the Association Government. Different duties, for example, octroi and utilities, are dealt with by neighbourhood bodies. Privatization is likewise affected and the legislature supports free business through an assortment of projects.

Technological Factors:

Innovation fundamentally impacts item advancement and furthermore presents new cost-cutting procedures. India is presented with both 3G and 4G innovation which has encouraged a few of their mechanical undertakings. Besides, the nation additionally has one of the most grounded IT segments on the planet, advancing steady IT improvement, programming redesigns and other mechanical progressions. As of late, India has likewise endeavoured to dispatch their satellites into space.

Internal Market Analysis: Porter’s Five Force Analysis

A model for industry examination is best undertaken by means of Porter’s five forces analysis as suggested by Michael Porter (Porter, 2008). The model examines market from five types of relevant forces as industry rivalry, bargaining power of buyers, threat from new entrants, bargaining power of suppliers, and threat from substitute products. These relevant forces examination can reveal the various challenges that the new eatery will face in the Delhi market in India.  

Bargaining power of suppliers: Porter (2011) examined bargaining power of suppliers being an integral factor that might pose threat to any type of business (Porter,2011). In Delhi restaurant industry requires a number of suppliers as meat suppliers, water, spices, and other raw materials necessary for processing raw materials into finished materials. With considerable number of restaurants present in the area suppliers have significant amount of businesses. Moreover, the raw materials needed by the business will be considered in the niche segment that has high prices. Hence, the restaurant will have select few suppliers who will be capable of catering to raw materials to the restaurant. The current business will face significant challenges from its suppliers and will not be able to reduce cost of products. Bargaining power of suppliers will be considerably high in this market.   

Bargaining power of buyers: In Delhi, India there are a large number of restaurants present that offers versatile number of cuisine choices. Buyers have large number of restaurants to select from.  They have cuisines present from various Indian cuisines which offer buyers large number of choices. There are number of choices in prices as well varying from lower prices to higher prices menu. Thus, there is significant amount of bargaining power that is exerted by consumers in the market. Therefore, the restaurant is bound to face significant bargaining powers from consumers.

Industry Rivalry:Porter and Heppelmann (2014) analyzed industry rivalry being an integral factor by which a company is able to conduct its business in the market. Due to presence of large number of competitors in the market, industry rivalry can be considered to be very high. There is presence of large number of traditional cuisine restaurants, well-branded restaurants, road sided shops and a number of other types of restaurants competing with each other impacting significant amounts of rivalry. Therefore, it can be understood that industry rivalry that will be impacted on the restaurant will be high. Hence, the restaurant will take comparative amount of time to build their brand name in the market.   

Threat from new entrants: Setting up restaurants in Delhi that offers dining facility is requires considerable amounts of investments. A company needs to obtain trade license and other necessary documentation for the purpose of getting the restaurant in functioning condition. Though establishing a small eatery is considerably low, setting dining multi-cuisine restaurant has a large number of factors that need consideration. Therefore, it can be said that threat from new entrants is significantly low.  

Threat from Substitute products: Substitute product in the market includes home delivery options, packaged food products or home cooking. Due to the vast population spread in the city and rapid expansion of city limits, this threat can be considered to be significantly low. Though there exists threats from substitute products but consumer making such choices are varied compared to those who prefer dining facilities.  

Market Segmentation

In order to cater to any market, it becomes critical to understand market segment that one is catering to. Appropriate market segmentation will allow the company understand their target customer group in a better manner and hence cater to them accordingly(Aaker, Kumar & Day, 2008). Market segmentation can be understood in a number of ways through segmentation of geography, psychographic, behavioural and democratic manner as analysed below;

Geographic Segmentation: The restaurant offering dining facility in Delhi area will cater to that market only. Geographic based segmentation for food business allows catering to greater areas by encompassing deliveries as well. However, the restaurant being set up newly will aim at catering to limited areas only to avoid taking longer times for delivery or to reduce food quality that need to be catered to it.

Psychographic Segmentation: Psychographic based segmentation allows catering to a particular mind-set of customers, who prefer dining out (Baker & Hart, 2008). There are versatile food outlets in the city, based on consumer choices only. Consumers that prefer taking food deliveries are separate, compared to consumers who prefer dining outside, there are other types of customers, who prefers like to take packaged food back home and those who likes eating on the go. The restaurant need to target those consumers specifically who likes to dine outside.

Behavioural Segmentation: Behaviour based segmentation allows understanding decision based criteria which consumer’s undertake while selecting restaurants. For multi-cuisine types of restaurant customers, who prefers eating varied types of food will be mainly targeted(Armstrong et al, 2015). Customer data analysis will reveal percentage consumers that have food preference in oriental and multi-cuisine food, they will specifically be targeted.     

Demographic Segmentation: Demographic based segmentation allows analysis according to age, gender and income status of consumers. Consumers who are young to middle aged, between 25 years to 54 years of age will specifically be targeted for the restaurant. Both genders male and female will be targeted for catering to food of this restaurant. Moreover, income status from middle to high level income will be targeted at for this restaurant.      

More Indians are gradually warming up to eating in eateries, and not only for uncommon events. Because of developing wages, urbanization and innovation’s impact on utilization propensities, foodservice deals in this nation of USD 1.3 billion are developing at around 10% yearly (making it one of the quickest developing on the planet). This development is twofold the rate expected for the substantially more develop U.S. eatery industry, and with a populace fourfold the size(Jobber& Ellis-Chadwick, 2012.). On the whole, in the vicinity of 2013 and 2021, the Indian eatery showcase is anticipated to twofold.

For private value firms and worldwide eatery brands, India speaks to tremendous upside potential, particularly as significant Centre East markets, which are experiencing quick development now, approach immersion levels in the years to come. As the opposition in India warms up, home-developed Indian administrators should raise their amusement in the event that they need to remain in the race.

Numerous different powers are grinding away in making tremendous potential for eateries in India. Its economy is among the quickest developing in the creating scene; the Global Fiscal Reserve extends the nation’s yearly Gross domestic product will increment by 7.4% through 2017 and 2018 — more than twofold the world normal.

India is additionally one of the biggest customer advertises all around, and one of the most youthful with over 45% of the populace under 25 years of age. For adolescents and youthful grown-ups, eating out is a prevalent type of mingling, adding to the development of different sections inside the extending market.

Discretionary cash flow is on the ascent; the informed white collar class is developing; and as the nation develops more industrialized and bonds its notoriety for being an IT centrepoint, per capita pay stands to develop also. As per information from the financial analyst Knowledge Unit, individual extra cash ought to become around 10.5% every year through 2020.

Literature Gap

Evaluating all literatures and relevant materials from several journals reflects a literature gap existing. None of the literatures could indicate the exact area in which the restaurant needs to be established. Therefore, a data search needs to be conducted in order to understand exact area in which restaurant need to be set such that it will be able to establish its business in an easy manner. Moreover, promotional techniques are not analysed that can cater to specific market segments.    

Chapter Introduction

One of the most decisive aspects related to any study is research methodology and thereby requires special attention. Here, a detailed explanation of the research methodology that has been adopted by the scholar to complete the study and meet all objectives has been expounded(Flick, 2015). It first defines research methodology’s various aspects and then moves on to provide a reliable justification for adopting appropriate methods to complete this study.

Research Philosophy 

A research philosophy is one that aids in determining the comprehensive structure of the study easily by laying out its u underpinned aspects. The scholar has the freedom to choose from any of the four given research philosophies including ontology, epistemology, axiology and rhetoric research philosophy (Baker& Hart,2008). The ontology research philosophy is adopted in studies where the researcher’s primary objective is to duplicate individual apprehension regarding the truthful state of affairs and of realism. Epistemology research philosophy however can be chosen by a scholar wherein the primary objective is to break down disposition and the sequence of specific present on the correct area. Axiology research philosophy is used wherein ethics and aesthetics is used by the researcher as the most important aspects for study. Rhetoric research philosophy is adopted with the primary aim of thorough inspection of the problems and the exploration of all the aspects that are correlated with it for understanding of results and to form judgments. The scholar has adopted rhetoric research philosophy for the purpose of conducting this study.  

Approach to the Research

The intellectual needs to make a decision regarding the adoption of inductive or deductive approach and /or qualitative and quantitative approach, which forms a major part of the research approach.

Deductive or Inductive research approach

The research approach that is based on deductive approach is where the application of theories is used so as to derive results (Bergman, 2008). However, in an inductive study, observations are first pursued, studied and then results are obtained that lead to the formation of theories.

Qualitative and Quantitative Approach

Research approach that is based on quantitative techniques usually resorts to the utilization of numbers that are then analyzed using mathematical or statistical tools. However, qualitative research approach is where a subjective approach is used to undertake a reminiscent examination so as to obtain explanations for the study. For the purpose of this study inductive approach with quantitative approach of data collection and analysis has been adopted.

Research Design

One of the most important aspects associated to research methodology is the research design as that is what determines the functionality and efficiency of methodology. This thereby establishes the operational process of research (Gomm, 2008).

Types of Research Design

There are four types of research design that an intellectual can choose from including descriptive, exploratory, predictive and explanatory designs. The descriptive research design is used in studies wherein detailed explanation of certain occurrences is required. The exploratory design can be used by the intellectual in studies where there is deficiency of information and thereby the same needs to be explored from varied sources to form concrete solutions. Explanatory design is adopted where the primary objective is to settle down on the fundamental associations that are shared by the variables under examination (Lewis, 2015). Predictive research can be used where the explanatory research’s results are expounded to foresee forthcoming occurrences.

Research Method

The tools that are used by an intellectual so as to gather data from primary sources with the main aim of assisting research design and accomplishing the objectives of a research is referred to as research methods. The numerous research methods which a researcher can adopt have been explained below.

Research Tools

Interviews: The two types of personal interviews that a scholar can adopt are structured and semi-structured interviews. When it comes to structured interviews, the interviewee would behave as per the predefined codes that are determined by the interviewer (Neuman, 2013). This thereby limits the flexibility of the interviewee. Semi-structured interviews on the other hand are flexible interviews where the conversation between the interviewee and the interviewer is directed by sets of predefined behavior that isn’t controlled in any way.

Observation: There are two kinds of observation: participative and structured. Participative observation is generally used in quantitative studies where the researcher is a part of a real set up along with the other participants and then based on personal experiences, obtains information. Structured observations are generally adopted in qualitative studies where the researcher’s observations are recorded analytically on the basis of segments that are predefined.

Focus Groups: Here, the researcher generally forms a group consisting of a specified number of people with the main aim of conductions discussions on a certain topic. At times of such discussions, the intellectual would take notes of the outlook of each member and thereby interpret results.

Questionnaires: Depending on the aim of the research and the type of study, the researcher can opt for open-ended or close-ended questionnaires. Open-ended questionnaires are ones where the respondents have the liberty to provide their own viewpoints without any restrictions. On the other hand, close-ended questionnaire is one which lists down the questions with pre-defined choices(Silverman, 2016). These are provided to sample respondents who can then make a choice. In order to conduct this study data has been collected by providing questionnaire by interview method. Each participant had been provided with a questionnaire then they were asked to fill out the same along with certain questions being asked to them. Participants were briefed regarding the aims of the research, which was to collect data and analyse them for understanding their views of the food industry in Delhi.

Sampling and Related Techniques

The process of selection of the sample that is regarded as an ideal depiction of the entire population is referred to as sampling. Usually, a sample size is chosen for carrying out a research. This is because taking the opinions of all is a practically impossible task. The derived results are extrapolated thereby obtaining a resemblance with the opinion of the population. A researcher does have the liberty to choose between probability sampling and non-probability sampling procedures. Data for the purpose of this study had been collected from 100 participants from varied types of locations in and around Delhi. First participants were briefed regarding the tests aims and then they were handed over the questionnaire to provide answers relevant to the same.

Methods of Data Collection

The primary and secondary sources are generally the two methods of collecting data. Primary data is virgin data that is collected for meeting certain requirement of the research. However, secondary data is one that has already been published and has been gathered from sources like articles, journals, magazines, books, government periodicals, newsletters, internet publications, and newspapers and so on. Though for the purpose of development, literature sources of several secondary data and information had been used. However, those data merely provided a brief outline for the study. But for the purpose of conducting the study, primary level data was collected and analyzed such as to arrive at comprehensive results related to the same.

Data Analysis Methods 

For the analysis of data collected from questionnaires, frequency analysis as well as mathematical and statistical tools has been utilized. Recording and analysing the data has been done with SPSS data analysis software. Qualitative data procured through interview schedules have been analyzed descriptively.

Ethical considerations

• It has been ensured that absolute no manhandling of the data has been initiated in any form.
• Respondents are provided with the security of data provided through assurance of secrecy and inscrutability.
• The purpose and aim of the research of the study was explained duly so as to ensure lucidity of communication.
• Respondents participated through free consent and weren’t forced in any form.
• No biasness was practiced by the scholar in any form.

Limitations

This study is only limited by the fact that the size of the sample was small as compared to the size of the population. This is why the sample can’t be regarded as a due representative of the whole population. The study has been undertaken in India and offers opinions of people of different origins. This is why there is difficulty in ensuring the universal applicability of the results.

Normality of the factors

The factors were tested for normality using SPSS package environment and Shapiro-Wilk test was exercised for the purpose. The results of the test have been provided in Appendix E. All the independent factors were normally distributed with p value of zero. Hence the collected answers were significantly normal in nature. The normal plots have been provided in Appendix F. The Q-Q plots were scrutinized and the factors were found to be Gaussian in nature. The descriptive values have been provided in Appendix D. It was noted that the variables or factors were ordinal/ nominal in nature, hence mean or standard deviation were just reflection of trend of the data.

Validity of the collected data

The scores of the questionnaire were collected and a total score for each of the respondents was calculated. The total score excluded nationality, age and gender of the subjects. Validity of the entire data was checked using SPSS package and inter-item correlation has been given in table of appendix. The correlation coefficients of total score with different items of the data were observed. It was evident that factors such as, monthly outside eating frequency, visit the restaurant with whom, type of food preferred, approximate money spent for eating outside in a month, location of food places, ambience of the restaurant had significant positive correlation (correlation coefficient >0.3) with the total score of the data. These factors were used to test the reliability factor for the study.

Reliability of the valid factors

A reliability test was performed in the SPSS environment for the valid factors (table in appendix). The standardized value of Cronbach’s alpha was 0.302 for the six chosen factors. It was observed that the valid factors which were chosen to affect the decision of the proposed venture had low level of reliability. Hence collection of data for a larger and heterogeneous sample of the population was the prescription.  

Reporting of data

1. The frequency distribution illustrated that out of 100 participants of the survey, 68 were Indian and 32 were non-Indian. The population was heterogeneous in nature, where mostly Indians of different creed were present. The decision to open a new restaurant depended on choice of food and preference of the diversified people. Variety in choice of food of the population was an encouraging aspect for the new project.

Table 1: Nationality of the respondents

1. The gender ratio of the respondents revealed that the nature of the population was based on the backdrop of Indian culture. The almost equal distribution of gender was a healthy sign for the new project. The urban female section of the society was expected to be a major factor in taking decisions on choice of food and places of eating.

Table 2: Gender distribution of the respondents

1. The age of the respondents were analyzed using SPSS package, the average age was 47.21 years (S.D 17.81 years). Average age of the subjects revealed the overall structure of the population. The age group division has been provided in table 4. Accumulation of individual age near 45 indicated that the presence of demand for outside food.

Table 3: Participant age descriptive

Table 4: Percentage division of respondents based on their age

The purchasing power and family involvement for the average age group were two major reasons for outside food, especially for fine dining. Hence age data was highly encouraging.

1. The frequency of outside eating in a month was recorded in table 5. The trend was encouraging, it was observed that frequent outside eating was a prevalent solution to home cooking for most of the interviewed subjects.

Table 5: Monthly outside eating frequency

It was noted that, average age of the respondents and frequency for outside eating validated each other. This association was an indication about population characteristics.

The average monthly outside eating was 2.84 times and the standard deviation was approximately 1. Hence it was evident that people go out for food at least once to almost 4 times in a month. Increased frequency of outside eating was an essential requirement for the new business.

Table 6: Average monthly frequency of eating outside

1. The respondents were asked about their preferred choice of timing for outside dining. Answers were mixed in nature and have been put in table 7. The data though revealed that total 55% people are going out for lunch and dinner. The 55% figure was significant as it was expected that people visit the restaurant for two major meals.

Table 7: Preference of outside eating timing

1. It was very important that people visited restaurant with other members, especially with their friends and relatives. The respondent data reflected the desired fact and 56% people were found to visit eating places with siblings and relatives. Average age was probably the major reason for this trend. Young generation was noted to be with their friends during outside eating.

Table 8: Percentage wise outside eating companion preferences

It was discovered that only 25% people eat alone. Cake Shops; take way food counters were probably the main reasons for this. High percentage of people liked to eat with near and dear ones.  This analysis helped in deciding the space of new project.

1. The next question focused on the food choices and some interesting results were observed. A particular quarter of people were going to cake shops and fast food joints. This result was in line with earlier expectations. But the fact that 57% of the respondents preferred casual or fine dining as a choice of eating was indeed very promising for the proposed business.

Table 9: Preferred food choice of respondents

1. People were asked about their choice of particular food. Previous answer for casual and fine dining required choice of specific cuisine for complete validity. Responses were mixed in nature but affinity towards cakes, breads and other types of related items was evident due to young group.

Table 10: Percentage-wise distribution of type of food preferred

 
Choice of Moglai cuisine and local delicacies was obvious for mid aged persons. Continental food and Chinese recipes were also popular with 20% people preferring them. The set of information obtained was essential for choice of food menu.

1. It was very important to know the approximate allocated budget for outside eating. The question was placed with proper care and response was not very far from expectation. The percentage division was in accordance with the population characteristics.

Table 11: Money spent for eating outside in a month

Monthly expenditure for restaurant eating was more than expected. The percentage of people spending nearly INR 10k or more consisted of 65% of the outside eating people. Spending capacity and disposable money were considered as the main reason for the spending trend.

1. It was also important to know the average expenditure in restaurant for each visit. This question was related to the previous information and answers regarding it, was also collected with proper care. Respondents were explained about the necessity of their proper answers. The percentage one time eating expenditure has been given in table 12.

Table 12: Money spent for eating outside at a time

The fact that 57% people were spending nearly INR 5k or more signified and re-established the fact of existence disposable money. This answer was in well support of the previous data. The proposed project necessitated this phenomenon, as it increased the probability of outside eating and dine in.

1. The location of the new restaurant was an important issue and transportability of the people of the city was an essential condition.  Respondents revealed that 37% of them were pleased to eat at nearby food places, but 63% of the answers disclosed that they were ready to visit distant restaurants for good food. Choice of place was a concern and the pattern of answers was significant.

Table 13: Importance of location of the food place

1. Price of food was a major concern and people were interviewed for the same. Answers disclosed a surprising but a welcome fact, people of the city were ready to spend on good food up to some extent. Only 24% people were reserved about their expenditure, but rest of the answers were quite encouraging. Quality food is always a trade mark for a restaurant, and premium price, sometimes takes the sales down. Results of survey were positive regarding to that perspective.

Table 14: Preference for good food with premium price

1. Buffet system and proper dine-in restaurants were favorites among the people and affinity of good food with proper service was well noted in the answers.

Table 15: Type of restaurants preferred by respondents

1. The ambience of the eating place is always appreciated by customers. The survey revealed that 53% people preferred good ambience with food. The proposal for decorative ambience was evident from the result.

Table 16: Liking for ambience of the restaurant

1. The survey revealed that customers were also interested in discount food coupons or combo meals. Some opted for free home delivery for their food. Hence introductory offers on selected food items and combo option in lunch hours for office goers was a clever choice. The free home delivery option for the evening snacks and dinner up to 5 kilometers was essential to establish the business.

Table 17: Different attractive policies for new restaurant

1. There were lots of existing food hubs and restaurants. The feasibility of the new project was always a matter of concern. The survey confirmed the fact that the there is scope of a new restaurant in the city. The choice of place was very important considering the fact that some of the parts of the city were well covered by highly renowned restaurants.

Table 18: Customer opinion on necessity of a new restaurant

1. The decision for a dine-in restaurant was well supported in the survey, and the direct answers for the choice of new food place made it clear. Almost 56% customers were in favor of a new casual or dine-in place.

Table 19: Type of new restaurant as preferred by customers

Section 5: Conclusion And Recommendations

Analysis of SPPS data pertaining to Indian population related to restaurant set up several factors was realized. It was understood that the restaurant can be set up easily in Delhi area. However, there are certain recommendations that need to be considered by the restaurant as given below.

• Deal with Competitive Pressures:The Company needs to deal with competitive pressures such that it is able to generate a stable market share in Delhi area. The restaurant need to offer its own niche and market it accordingly such that it does not experiences tremendous market pressures from rivals. With presence of a number of multi-cuisine restaurants in the city, the Company will face tremendous amounts of difficulty in building its brand name and set-up brand identity.
• Make tie-up with Online food portals: The restaurant needs to make tie-ups with online food delivery portals such that it can easily cater to increasing number of customers. Making tie-up with such portals will offer significant amounts of advantages to the restaurant.   
• Obtain funds at cost effective rates:In order to set up the restaurant, significant amounts of funds has to be obtained. Such funds need to be arranged at cost effective rates from the back or angel investors to allow the restaurant to make significant amounts of profits.
• Set up restaurant in Delhi suburb:Data analysis reveals that a multi-cuisine restaurant that delivers quality food can easily attract customers. Therefore, if the current restaurant establishes its business in Delhi suburb area also it will be able to attract large number of potential customers. But the décor of the place needs to be good and ambience needs to offer high quality for catering to customer needs.   
• Incorporate home-delivery services:The restaurant need to initiate customer delivery services so as to increase its market area that it caters to. Including in delivery services will allow the restaurant initially to maintain business viability and feasibility by generating constant revenues from the same.
• Promotional Technique:Initially the restaurant has to incorporate a number of promotional techniques in order to create customer awareness. Moreover, it has to adopt traditional as well as contemporary marketing promotional techniques. Online advertisement and social media marketing will allow the restaurant to attract large number of customers and also create brand identity in the market.  

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