Fast Food Restaurant Business Plan, Essay Example

Introduction

Bundled products rake in more profits for merchants as nowadays more and more people prefer purchasing these products more than products sold individually (Matkovich 1). This new phenomenon arose out of the necessity of consumers to save time trying to locate various products at different times in stores as this would most often help them get done with chores as quickly as possible (Matkovich 2). This situation is clearly evident when consumers who do numerous household cleaning tasks benefit from the fruits of labor “bundling” brings about (Matkovich 2). Bundling is a task of the distributors packaging one type of product together in numbers catering to customers from a single industry (Matkovich 2). As more and more people favor purchasing bundling products due to convenience, merchants who profit from selling those products also increase tremendously. Therefore, these products become the major savior of any profit losses of retailers.

Parking garage prices change radically even when they are short distances apart because the prices of parking fees mainly depend on the lease fee the entrepreneur pays for operating such parking garages. In turn, the lease fee most usually depends upon the age of the place that is being leased. The longer the place has been in existence, the cheaper is the lease fee and vice versa. The reason of these radical changes of parking garage prices is also the similar reason why some products are sold at different prices in different outlets of the same chain of drug stores.

Manufacturers are able to practice segmented pricing for the same products by being able to interpret and understand the situations of people based on ages, socioeconomic status , health and other social conditions.  Segmented pricing is also known as price fencing (“SPG Insights” 2). Price fencing allows retailers to adjust prices based on the specific situations customers which avail them are in (“SPG Insights” 2). For example, children and elderly people are given discounts for their purchases (“SPG Insights” 2). People who are also suffering from economic hardships are given low prices when purchasing products and services provided they are able to provide documentary proofs of economical hardships (“SPG Insights” 2).

Body

Take for example the hotel I know which has been operating for four years. The entrepreneur who bought the place where the hotel is operating has just bought it during the time that the hotel started operating. Because of this, the room rates and other services the hotel offer are way higher than the prices of those services offered by a hotel about two blocks away which has been in existence for ten years.

Seasonings that are put on foods when cooking are also packed in bundles as retailers of supermarket outlets understand that consumers usually do not want to make numerous trips to the store when buying seasonings as these trips usually pose hassles to them. Instead of being able to get an early start of preparing and cooking meals, these consumers waste time on making these trips should retailers do not make bundled cooking products available. I observed my mother doing this too.

Another example of segmented price benefits people get is when elderly people are able to obtain extra benefits than any other people of any age groups. This is particularly true for the elderly people in a country in Southeast Asia called, the Philippines, I found out through doing research work. The elderly people residents and citizens of this country are able to avail of services and products at reduced prices which include medicines, health care benefits and discounts on certain purchases at stores. Legislators in this country realize the importance of giving special or extraordinary value to elderly people as they are recognized as people who have left tremendous wisdom and knowledge in society. They are the people who are recognized as valuable who are not prone to live for much longer in our society. Therefore, the majority of this country’s population feel the elderly deserve all the special treatment they can receive.

Another example of a situation in which a retailer tries to maximize its profits is when a retailer tries to eliminate its overhead expenses while still adhering to the goal of maximizing profits. Through doing online research work, I found out this incident has clearly been adapted by Nudlez, a Washington based fast food corporate company (“Fast Food Restaurant Business Plan” 1). This fast food restaurant was able to cut down overhead expenses by using mobile vending equipments instead of using stores which are made of bricks and mortars (“Fast Food Restaurant Business Plan” 1). Clearly, the usage of the mobile vending units was able to cut down the electricity bills of the restaurant, and in turn, maximizes its profits. As a result of this new initiative, numerous people are being lured to dining in this restaurant instead of dining in restaurants in urban areas (“Fast Food Restaurant Business Plan” 1).

Background details about Nudlez

Nudlez is a fast food restaurant which serves quick Asian style foods (“Fast Food Restaurant Business Plan” 2). The specialties they serve are noodles (“Fast Food Restaurant Business Plan” 2). The foods served are fresh and right off from the oven while keeping its spontaneous and rapid service at all times to make sure to not disappoint any customers (“Fast Food Restaurant Business Plan” 2).  Meals being served in this restaurant that are noodle-based are served through the Noodle Vending Units (“Fast Food Restaurant Business Plan” 2).These units are mobile based units which help eliminate overhead expenses within the company.  These units utilize technologically advanced equipments and also strictly adhere to health regulations imposed by the city and the state of Washington (“Fast Food Restaurant Business Plan” 2). The first time these units were used for success trial was in July 2000 in Seattle, Washington (“Fast Food Restaurant Business Plan” 2).  These units received recommendable reactions from the consumers who were able to sample products yielded by the mobile units (“Fast Food Restaurant Business Plan” 2).   Because of this reason, the management team members decided these units would definitely be good in maximizing their profits (“Fast Food Restaurant Business Plan” 2).

Because of such success, the restaurant’s franchise stores continued to grow rapidly nationwide (“Fast Food Restaurant Business Plan” 2).  Nudlez is now known as “a globally transportable business (“Fast Food Restaurant Business Plan” 2).  The market situation in the economy of America by fast foods amount to $105 billion in 2000 and adapts the segmented price scheme in earning its overall profits nationwide (“Fast Food Restaurant Business Plan” 3). Asian style fast foods like Nudlez rank one out of the top three reputable Asian fast foods in Seattle or 35 percent of the market (“Fast Food Restaurant Business Plan” 3). Nudlez schemed to prioritize customers getting their lunches in the middle of work days as the restaurant managers know they are able to lure customers who seek foods that are served as quickly as possible in compatible with their hectic schedules. Next, the Asian fast food restaurants concentrate their expansion on shopping malls, university campuses, weekend market events, and domestic business locales (“Fast Food Restaurant Business Plan” 3).Events catering and grocery convenience food services are the new industries Nudlez next targeted to expand (“Fast Food Restaurant Business Plan” 3).

Nudlez’s Business Strategies

Nudlez strategize to implement the most reasonable prices for their products, while at the same time, maximizing their profits by initially establishing and expanding their business establishments in large urban areas (“Fast Food Restaurant Business Plan” 4). Once the establishment has made a name in these areas, catering services are then marketed to its maximum up to the point that the products are sold extensively in supermarkets (“Fast Food Restaurant Business Plan” 4). The franchise opportunities that the restaurant offers also added considerable steady stream of income to the company’s profits (“Fast Food Restaurant Business Plan” 4).

The owners of this fast food restaurant also have had tremendous experiences in managing several companies in the following industries: the hospitality industry, advertising, and business management (“Fast Food Restaurant Business Plan” 5). The founding entrepreneur of this fast food restaurant has had tremendous experience in owning profitable Thai restaurants in Seattle (“Fast Food Restaurant Business Plan” 5). However, at this time he decided it is about the time he expands his entrepreneurial skills by establishing the most successful Asian fast food in Washington (“Fast Food Restaurant Business Plan” 5).

Because of the creative strategic plan of Nudlez, their profits and cash flow are continuously positive (“Fast Food Restaurant Business Plan” 6). Revenues in the company continue to expand until it reached $58,000,000 in the fifth year of its existence profits and cash flow are continuously positive (“Fast Food Restaurant Business Plan” 6). The entrepreneurial plan of the restaurant is to raise as much as $1,500,000 from an individual who decides to join the company as an investor (“Fast Food Restaurant Business Plan” 6). The entrepreneur of the company is looking at a target of 32 percent compound interest annually (“Fast Food Restaurant Business Plan” 6). Other individuals who equally owned the restaurant and have made great contributions to its marketing success are Mr. Dan Billings and Mr. Bill Cook (“Fast Food Restaurant Business Plan” 6). These two entrepreneurs have already spent $75,000 in funding the testing and development of products and services (“Fast Food Restaurant Business Plan” 6). Both of these owners hold dual decision making rights in the board (“Fast Food Restaurant Business Plan” 6). The NVU operator cooks the meals in front of the customer and prepares the food rapidly while not neglecting to maintain the highest quality foods he could ever produce (“Fast Food Restaurant Business Plan” 6).

Nudlez’s Competitor

On the other hand, a company based in Oregon called” Work In A Box” intends to edge in competition with Nudlez in the Washington state by opening branches in the latter state in 2000 (“Fast Food Restaurant Business Plan” 15).  They plan to do so by opening numerous franchise stores in the latter state starting in 2000 (“Fast Food Restaurant Business Plan” 15).

Conclusion

Numerous entrepreneurs would really be able to learn numerous lessons from these entrepreneurs who were creative and strategic enough to maximize their profits. These entrepreneurs just go to show profits and customer satisfaction come hand in hand in our industry.

Works Cited

“Fast Food Restaurant Business Plan.” Morebusiness.com, In Khera Communications Inc.,n.d. Web. 20 Apr. 2010.

Matkovich, Nick. Cleanlink.com, The Press Media Group, Inc., n.d. Web. 20 Apr. 2010.

“SPG Insights: Segmented Pricing.” Imakenews.com, Imakenews, n.d. Web. 20 Apr. 2010.