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Restaurant Business

Today, restaurant business opens large opportunities for successful business development but often the potential of good restaurants remain undiscovered by their owners. In this regard, it is possible to refer to the case of the restaurant PH Chinese in Providence RI, which apparently has a great potential but the owner of the restaurant fails to realize the full potential of this restaurant. The restaurant is located in downtown and can attract a large number of customers. The restaurant operates on the daily basis and focuses on loyal customers mainly. The location of the restaurant is good for its promotion and attraction of customers because people can dine regularly in the restaurant during their lunch time at work.

The history of establishment is relatively short because the restaurant was open just five years ago but still five years is a long period to gain its niche of the market. In actuality, the restaurant PH Chinese in Providence RI has gained its niche of the market but it seems as if the restaurant still can gain a larger share of the market. At any rate, its competitors still hold a strong position in the local market, while the clientele of the restaurant consists of loyal customers, who like the cuisine, dishes and ambiance of the restaurant but the restaurant apparently needs certain improvements to attract more customers. The restaurant progressed fast in the course of the first year after its opening but the following years were characterized by a slow growth, which indicates to substantial problems in business development of the restaurant.

The ownership and management play an extremely important part in the business development of the restaurant. In fact, the restaurant is owned by two partners, who own equal shares of the restaurant. The owners of the restaurants perform functions of its managers as well. They manage their business but often they have conflicts and contradictions in terms of the further business development. For instance, the restaurant’s owners attempted to start restyling as they bought some new equipment and furniture as well as some elements of decorations, which were new. On the other hand, they preserved a considerable part of decorations and furniture unchanged. Therefore, it is unclear, whether the owners of the restaurant attempt to change the style of the restaurant or to preserve its original style as it used to be since the beginning. The restaurant employs a professional chef of Chinese origin and three assistants. In addition, the restaurant employs ten waiters, who serve two shifts. Waiters and assistants of the chef are Americans of different ethnic background. In such a situation, the cultural environment of the restaurant is quite diverse. At this point, managers of the restaurant face certain problems with the effective management because employees have different traditions and preferences and managers should apply different management styles to employees with different ethnic background. In such a way, managers underestimated the significance of the cultural diversity of their employees and failed to develop effective management style. Instead, they implemented authoritarian management style that deteriorated organizational culture and provoked conflicts within the restaurant between employees and managers. This is probably why the restaurant suffered from frequent personnel turnover.

The type of operation conducted by the restaurant PH Chinese in Providence RI is typical for the restaurant. The restaurant provides dining services and delivery of products to consumers. In this regard, the restaurant conducts the basic set of operations, which are typical for all restaurants. The restaurant PH Chinese in Providence RI fails to take a unique niche and differentiate itself from rivals. In such a way, the restaurant conducts regular operations and looks for options to enhance its competitive position.

The concept and theme of restaurant are Chinese. The restaurant offers its customers Chinese cuisine along with some dishes of traditional American cuisine and some dishes of different Asian cuisines but Chinese cuisine is dominant. In addition, the decoration of the restaurant is traditionally Chinese. At any rate, the owners of the restaurant attempted to create the traditional Chinese ambiance but elements of decorations are old and new that makes it unclear, whether the restaurant is changing its decorations or not and what to expect from the restaurant in the future. In actuality, the restaurant exploits the traditional Chinese cuisine and atmosphere but still the restaurant fails to stress how useful many traditional Chinese dishes are for consumers’ health.

Type of services and amenities currently offered are limited to serving dishes and delivery dishes to customers. The restaurant does not have any special offers or services being offered to its loyal customers or new customers. In such a way, the restaurant just provides its customers with its traditional services. On the other hand, managers of the restaurant pay a lot of attention to the quality of dishes served in the restaurant and it is really high.

In this regard, the observation of the dining experience has proved the high quality of dishes cooked in the restaurant PH Chinese in Providence RI. However, there was a little problem that an average customer has to wait for over thirty or even forty minutes till the dish is ready. Obviously, it is too much even for a dish of the high quality. In fact, long waiting proves the low effectiveness of the management of internal business processes. There is probably some problems in the kitchen or poor communication between waiters and the chef. Anyway, managers of the restaurant have to pay more attention to the quality of services for waiters should bring ordered dishes faster. Otherwise, customers grow nervous and dissatisfied with the quality of services, even though dishes they order are good and tasty.

The current food menu consists of appetizers, main dishes, soups, and drinks. Dishes served in the restaurant are dishes of the traditional Chinese cuisine, although there are some dishes of Japanese and European cuisine as well as American one, although Chinese dishes prevail.

The restaurant’s area demographics is potentially large but the restaurant is currently focused on local customers, of 40 and above, who prefer Chinese cuisine. Potentially, the restaurant can attract diverse customer groups, but the restaurant focuses on customers of Chinese origin as well as those customers, who enjoy Chinese cuisine. The restaurant attempts to create the traditional Chinese ambiance to make its customers to feel good. However, as the restaurant is located in downtown, it can attract much more customers. The restaurant needs to expand its target customer group and make special offers for people working in the downtown, for instance, the restaurant can offer business lunch for loyal customers working nearby.

The market analysis of the position and performance of the restaurant PH Chinese in Providence RI reveals the fact that the position of the restaurant is stable but still the restaurant has larger potential, which it fails to realize. What is meant here is the fact that the restaurant holds its niche of the market but owners of the restaurant narrows the target customer group of the restaurant to customers of forty and above, who adore Chinese cuisine and traditions. In fact, the restaurant can take a better position in the market and expand its market share on the condition of effective promotional policy and aggressive competitive policy.
At this point, it is important to dwell upon the competitive analysis. In actuality, the competition in the market is high because the restaurant is located in downtown, where the number of restaurants is high. The restaurant PH Chinese in Providence RI does not compete with fast food restaurant but more expensive restaurants push on the restaurant PH Chinese in Providence RI and their pressure is significant because they conduct more aggressive policy in relation to their rivals. In fact, the restaurant fails to maintain the competitive struggle because it fails to expand its market share. In this regard, its only advantage is its orientation on Chinese cuisine and ambiance because PH Chinese in Providence RI is the only Chinese restaurant in the area.

In such a context, it is possible to suggest several recommendations that could improve the position of the restaurant in the market. First of all, the restaurant should move online. In such a way, the restaurant can attract more customers and offer delivery services to a large number of customers. In addition, customers will be able to make orders online that is more convenient than making orders in the conventional way. In addition, moving online would enhance the competitive position of the restaurant and attracted younger customers. Second, the restaurant should develop effective management style that matches multicultural environment, where the restaurant operates. Managers should respect cultural norms and traditions of their employees and refuse from the authoritarian management style. Third, the restaurant should create more comfortable and authentic ambiance. The restaurant should make new decorations or, to put it more precisely, to complete its restyling. Third, the restaurant should decrease the high personnel turnover rate but the restaurant can reach this goal only if managers change their management style. Finally, the restaurant should conduct active promotional campaign to attract more customers and offer discount program to loyal customers. In this regard, the use of internet may be very helpful.

Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the restaurant PH Chinese in Providence RI holds a stable position in the market. In actuality, the restaurant performs well but it still has considerable potential, which remains unrevealed by its owners. The restaurant faces a strong competition but manages to maintain its competitive position due to the focus on Chinese cuisine, which makes it different from other restaurants in the area. However, the restaurant should implement new technologies in its business development and expand its target customer group to enhance its position in the market and to outpace its major rivals. The management style should become more liberal and democratic to create a healthy organizational culture.