Are you going to write a business plan for a restaurant? here is a sample SWOT analysis for a catering business to help you shape a competitive strategy.
Economic analysis of a restaurant business plan
Statistics show that over a period of this year, from fall 2011 to fall 2012, approximately 4,500 restaurants were opened in the United States of America, despite the fact that several restaurants closed stores during that time, and about 9,000 restaurants vied for profit.
It’s also important to note that around 80% of new restaurants are at risk of going bankrupt within the first five years of operation. This is because purchasing power decreases when a downturn occurs; people often reduce their meals outside the home and choose to cook more at home.
The restaurant industry earns more than $ 709.2 billion annually in the United States, with sales growth of around 3.8% in nominal terms and industrial sales growth of 1.5% in terms real (corrected for inflation). American restaurant food and beverage sales hit record levels; $ 659.31 billion in 2013 – far more than the $ 42.8 billion recorded in 2070.
When starting a restaurant business, you just need to do the right economic analysis if you want to start a business to make a profit, grow your business, and eventually grow your business beyond just one. location elsewhere in the United States and in other cities around the world.
When doing an economic analysis for your restaurant business, all you need to do is critically examine these key factors; location, product, price and promotion. In fact, you will need to regularly review these key factors when running your restaurant business. As a restaurateur, you just need to be aware of the competitive landscape.
Restaurant owners should also know that running their own restaurant ( independent restaurant ) is different from running or managing a restaurant chain or franchise. Running or running a restaurant chain or franchise attracts additional hurdles like incentive alliance, bureaucracy, growth strategy and operational guidelines, etc.
It is important to note that the cost of food is one of the most important factors contributing to the overall value of the catering business and should be considered a major factor in your economic analysis.
Example of a SWOT analysis of a restaurant business plan
When it comes to starting a new business, one area that will help entrepreneurs position their business so that trade is interrupted even in no time is to critically conduct a SWOT analysis before starting a business.
With the help of knowledgeable business consultants, we were able to conduct our own SWOT analysis, and this is what it looks like;
Our strength lies in our ability to serve our customers by inviting them to visit our restaurant for breakfast, lunch or dinner, or by delivering their orders directly to their home, office or location of their choice. The fact that we provide outdoor dining utilities, as well as culinary training, is our advantage in the restaurant industry in the United States of America.
So far, we have been able to identify several weaknesses on our side. The fact that we can start with great success and start competing with the biggest restaurant brand in the United States of America may be a downside for us, but we ourselves are improving our plans to use our moderate resources ( finance and work ) to maximize profits.
- Capacities -:
Beyond a reasonable doubt, the possibilities at our disposal are limitless. Catering in Texas and even the United States of America is indeed a profitable business. For example; Our CEO is an active member of the African community in North Africa and she is one of the most recognized women leaders in Texas.
Another possibility that we need to explore is that our restaurant is located in a large building. an area in Houston, Texas; a place with a huge population of migrants of African descent. Finally, the fact of offering outdoor dining services and culinary training gives us the privilege of marketing our intercontinental restaurant to our target market.
The threat we may face is that we are competing with established restaurants serving intercontinental food, and there are other entrepreneurs who are likely looking to start a similar business in our commercial location. Of course, they will be competing with us for the available market.
Another threat that we are likely to face is in the area of public policy. This is especially important when it comes to importing our raw materials which cannot be found / grown in the USA from Africa, Asia and South America. Therefore, we are concerned that if the government of the United States of America imposes an embargo on imports of our essential food ingredients, it will permanently affect our business.