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The Challenges Involved in Managing a Restaurant, SWOT Analysis Example

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SWOT analysis

The regulatory issues affecting restaurant operations are the health issues where the restaurant is not able to maintain cleanliness. This will affect because of low scores after inspection and there will be a reduction of customers hence, less profit. To overcome this problem, managers must make sure that the restaurant is clean by not lacking water and keeping food in a clean place. Lack of labor in restaurants really affects the operations because the restaurant will run very slowly, which culminates to less profit. To deal with that, human resource personnel needs to employ many workers who are able to do their duties well by serving the customers properly.

Loss of restaurant license can also affect its operations because it can be closed at any time by the government. To avoid this, managers must maintain and renew the license. Food quality is another issue where the restaurant does not cook good food maybe by buying food commodities, which are not of good quality like cooking oil, which contains cholesterol. This blows off customers and hence, affects profit. Outbreak of food-borne diseases in the area location of restaurant because of lack of cleanliness or not using right commodities when cooking food is also a major challenge. This will affect the turnover of the restaurant, which affects the restaurant income. In order to overcome, restaurants need to maintain cleanliness and make sure the cooking materials are of high quality and not poisonous.

The social concerns include lack of security; when the restaurant is located in a place where there is no security. The restaurant can be robbed off money or crimes may happen around it, which will force the owner to close early. This measure affects the profits of the restaurant because many of the clients visit the premise at night. To curb this menace, owners should ensure that there is security around the area to enable the business run properly.

How employees relate with the customers also matters because if the employees are not kind and respectful to customers, the customers will not want to come back. Reception is important for hoteliers because customers want to pay for quality service. Failure to accord them this service, leads to lower profit acquisition. To avoid these managers and the human resource personnel need to give their employees high quality training on how to handle customers. Generally, workers should have etiquette and serve the customers properly.

Racial disintegration also affects since certain tribes will go to restaurants of their race because of the language barrier. To avoid this, individuals should employ workers of tribes around that region. Competitive issues that affect restaurants include the price of food, drinks and other services in restaurants. If they are high as compared to other restaurants around them, then customers will go to the cheaper ones, which affect the income of the restaurant. To avoid this hotelier must know how the other restaurants are selling their food and drinks and start selling around that price. Restaurant location can also affect its income.

Locating it in a place where there is no means of transport or bad infrastructure and insecurity, for instance, individuals will not attract many customers. One is supposed to locate it where there is security, good transport and a clean place that attract many customers (Yang, 2005). The population of that area can also affect the income of the restaurant if it is not spacious they will go to the ones which have space. The restaurant is supposed to be spacious to make customers comfortable. Demographic issues affecting restaurants include age. Where the restaurant is not able to know the tastes and preferences of a certain age, the restaurant is at risk of having a low turnover of customers. Here, research and development teams need to work hard and gather data on how to satisfy the needs of all their customers.

Not knowing the income of people around that area will also affect because they can sell meals at a high price and customers are not in a position to meet the prices. Individuals need to observe the income by knowing what types of jobs many people do and then fix the price of meals. Geographic issues that affect restaurants is the lack of energy like electricity in the area where it is located. This affects the smooth running of the business because the kitchen area needs electricity to preserve food. Additionally, drinks need to be cold because other customers prefer cold soft drinks. For such situations, managers need to install solar energy, which is cheap, eco friendly and easy to operate, manage and maintain.

Computerization on food services is beneficial because it makes work easy. It helps in accounting where one can see how the business is running, its profit, and loss and identify what is supposed to be done to improve the business. Personal management requires employees to have knowledge on the budget of the business clearly, which is fast and accurate. Recording of sales facilitates fast retrieval of information even after a long period and the data will be secure because one creates a password to that file. Transactions will be fast and secure because customers will only enter his or her details and transact money. Computerization is also beneficial in lodging operations because reservations will be made online. This is very fast by entering the details of the customer and services rendered like the room, entertainment and food. Retrieving that information will be easy compared to doing it manually. Computerization makes management of businesses easy and accurate.

Food service, lodging and meeting segments, can be interdependent because they are dependent on each other. In lodging and meeting segments there must be food services because customers can need drinks and food while staying or holding meetings in that area. Lodging places are also important because customers can hold meetings even at night, which forces them to book a room for the night.

The synergy between the three can be improved by locating them in one place and by offering good services. The segments can improve their relationship between one another because they will provide services for each other. They can combine their services if they are located in one place where the meeting segment will be provided with food and lodging services. Lodging services will also be beneficial to the food services because the customers who are accommodated there will be buying food and drinks (Geoff 2006).

Introduction of gaming entertainment will be beneficial because it will lead to economic expansion. This attracts the young people since many like watching and playing games. These ideas bring about increased profits for the business thus, employment opportunities created. Locating gaming entertainment in bars and pubs will be profitable because customers who come to take drinks in the pub will also watch games (Casino, et al., 2000).

References

Geoff, B. ( January 01, 2006). Reconstructing inventory management theory. International Journal of Operations & Production Management, 26, 9, 996-1012.

Victorian Casino and Gaming Authority., Australian Institute for Gambling Research., RMIT University. & University of Technology, Sydney. (2000). The impact of the expansion of gaming on the tourism, entertainment and leisure industries: Project report. Melbourne: Victorian Casino and Gaming Authority.

Yang, T. ( January 01, 2005). The development of an effective recovery programme after service failures: A case study of restaurants in Glasgow. Tourism and Hospitality: Planning & Development, 2(1), 39-54.

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