Case on Good Food

Good food: going down!

In the month of January 2017 Mr. X is worried about the future of his restaurant business while taking a cup of coffee with his partner and team. Thinking about to move from one location to another because of the huge losses -in July 2016 revenues were PKR.235000/= down to  PKR.110000/= in December 2016-, customers are not returning and loosing the customers on regular basis despite they are giving the good taste and services to the customers. Mr. x was exchanging ideas with the partner and team, concerning how to improve the restaurant service delivery process, what steps we should take to regain the customers and overcome the losses and make it success in future.  

Background

Mr. X, after graduating with a marketing degree and experience of sixteen (16) years in multinational company, and having a big family that included mother, sister, wife and 3 children. He was passionate about food and wants to open a restaurant. One day while eating in the restaurant during break time from office, Mr. X was captivated with the idea of starting his own food business as he felt he would be able to run it much better way to be a successful business.

Mr. X opens a restaurant at small scale on 5th, December of 2015. After seeing a good run in a restaurant with a limited menu, he was thinking about to expand it. But he was worried about the investment. Once his family friend Mr. Y came to his restaurant for dinner he was motivated by seeing him and his efforts that how he is doing a business, they both were talking about the business and expansion. His friend saw an opportunity to invest, he made a offer to invest for the expansion of this restaurant and work as a equal partner in this venture under some conditions that have been made with the consent of both or mutual agreement.

MR Y was working on a private project, experienced in installation and dismantling of telecom towers and also having some foreign exposure. After ending of the project, he went for the investment in the food business. Mr. X and Mr. Y then restructure and renovate the business to make it more attractive and profitable. They both invest PKR.500000/= and employed 4 peoples-waiters- from locality for service delivery. They operated this business as a project under the name of SAB enterprises-initials letters of their name-.

Trends in Sukkur and Competition:

This industry is changing day by day for more advancements in the foods due to that there is huge competition and opens the door for the new comers to compete in that business. As in Sukkur the food business had grown rapidly in the previous decade there is low concept of variety of food and fast foods, but now in every street there is food corners. Now a day’s people love to eat food outside of their homes at the restaurants and spots. According to the statistics the salaried person having 20000-25000 salary is spending average 20-25% of their income at the restaurant in the month and 25000-50000 salaried people is spending average 30% of their income at the restaurants. This gives the restaurants an edge to bring new innovations and advancement in their menus at reasonable costs.