Table of Contents
Proposal of cost-saving:
Growth, pricing and non-pricing proposals:
Proposals for growth applying the 6N-
Pricing and non-pricing proposals.
Proposals based on non-pricing.
The report is to investigate the restaurant Ho Jiaak, 92 Hay Street, and Haymarket suburb of Sydney. This is a restaurant that introduces authentic Malaysian dishes with their amazing culinary skills honed through generations (Baldacchino, 2016). This award-winning Malaysian restaurant was opened by Junda Khoo who is the head chef and his business partner William Xie. They were doing good business until the outbreak of the Coronavirus which put them under pressure.
The purpose of the report is to propose strategies to cope up with the crisis and improve its financial health. The proposal will be based on background research carried out on the nature of this restaurant Ho Jiak's outlet at Haymarket. The necessary data and information has been collected from the website of the restaurant and the article written on this restaurant, during the outbreak of the Coronavirus. The nature of information is related to the experience of the owner regarding the management of their business in the crisis.
The structure of the report is as follows:
Section 2 analyses how Ho Jiak restaurant can improve the condition of its investment in terms of its fixed cost. Here the strategies of operations will be discussed to manage the cost.
Section 3 will discuss how Ho Jiak can survive in this pandemic crisis and strategies will be formulated to identify the opportunity out of this threat and can have an edge over its competitors.
Section 4 addresses the scope of the business growth of Ho Jiak.
The conclusion part contains a summary of my proposal and how it adds value to the business of Ho Jiak.
To understand the scenario of business Ho Jiak during the crisis let us refer the excerpts of the interview of Junda Khoo, the co-owner of Ho Jiak restaurant, given to the Huff Post Australia, where he mentioned that during the first week the business dropped 30% in terms of sales and in the next week it was down by 40%, after that a little in the recent week but the overall the business is down by 30%. This shows that how the business of Ho Jiak has been affected.
Then they have two options either to close the restaurant temporarily and incur a loss of $ 10,000 on rental income or to continue running the show and incur a loss of 17000 dollars a week.
They have chosen to keep it open as they want to retain the loyal customer and the staff who are responsible for the growth of Ho Jiak.
So the summary of the business is as follows:
Focus on the food an item which takes less time to prepare and promote them-
Customized the timing of restaurant to save overhead cost-
Start the takeaway service and focus more on it-
Start home delivery facility and engage some staff to deliver the food-
Sharing and partial sacrifice of the wages among the employees-
Haymarket area is mainly constituted by the Asian population. The food joints and restaurants are normally run and maintained by the Chinese and Malaysian people. So the food and drinks offered are almost similar. We also have to remember that the outbreak of the Coronavirus has made it even more difficult to thrive in this market and this outbreak has become a crucial factor of competition.
In this scenario I would suggest the following methods to get competitive advantages:
Relevance of business and to increase it-
Preference of Customers-
The differentiators are Product, Services, and Relationship which is explained as follows:
Considering the pandemic situation by courtesy of the Coronavirus, the strategy for survival of the business is the main concern. In this situation reversing decreasing growth and maintaining the break-even is the main challenge (Mariani et al. 2016). However we will use several growth strategies to reverse the decreasing growth and maintain the progression steadily.
The primary focus is to reverse the degrowth and to do that I have two proposals
Introducing a new model of business by collaborating with the existing one. In this model along-with the conventional way of waiting for the customer, we will reach to the customer to deliver our service.
Hence we introduce a home delivery system which caters to the customers even when they are at home.
We also introduce a takeaway service, where the customer can take the food from the restaurant instead of dining there. This also saves the overhead of the restaurant and the customer enjoys the same item at a lower price.
2). in this proposal we focus on strengthening the relationship with the customer and employee.
We introduce a referral system where the preferred customer will refer new customers and enjoy incentives in the form of free meals or a huge discount on their bills. Now in this crisis the customer develops a good feeling about Ho Jiak. These new customers will again refer to other customer and in this way the restaurant can develop a chain of customers registered to them. This certainly enhances the customer base pretty fast leading to the increased revenue generation which reverses the decreasing growth and gradually the growth in this economic slump will be steady.
In this strategy I have identified an opportunity to strengthen the relationship with the employee. The new process decreases overhead but increase the sales. The staff that are in customer service can be engaged in-home delivery process so that their job will be secured and they can get wages as they are participating actively in the revenue generation process. On the other hand, the cooking staff is also engaged to prepare food for takeaway and home delivery service. This is how the relationship with the employee can be strengthened by saving their jobs and wages (Tussyadiah and Sigala, 2018).
In this proposal, I will discuss on the non-pricing factors promotions
I have analyzed and formulate the strategy which will improve the conditions of Ho Jiak. The strategy is customer-centric and majorly emphasizes on the acquiring and retention of the customer. The main essence of the strategy is to “Go to customers, don't wait for them to visit". That is why I have suggested the new service: Home delivery, which will strengthen the bonding with the customer of Ho Jiak and increase the revenue generation. I have also suggested a customer referral scheme which will increase the base of loyal and registered customer. Then the consumer behavior can be easily traceable.
This will help to forecast the demand conveniently which is the basis of the operation process based on Lean Methodology. I have proposed to introduce Lean Methodology for a substantial reduction of inventory cost, which in turn acts as a cost-saving factor. Then the introduction of takeaway service also reduces overheads. The proposal to increase revenue by introducing a customer referral scheme and home delivery service will certainly help to reverse the business decreasing growth. To conclude I can say that this customer-centric strategy will not only reverse the business decreasing growth but also help the restaurant to grow steadily in the long run.
Baldacchino, G., 2016. More than island tourism: Branding, marketing, and logistics in archipelago tourist destinations. In Archipelago tourism (pp. 25-42). Routledge.
Chang, P., 2017. The importance-performance analysis of Taiwan tourism mobile marketing. Journal of Tourism Management Research, 4(1), pp.12-16. Available at: http://www.conscientiabeam.com/pdf-files/bus/31/JTMR-2017-4(1)-12-16.pdf [Accessed on 16th May 2020]
Khalilzadeh, J., and Wang, Y., 2018. The economics of attitudes: A different approach to utility functions of players in tourism marketing coalitional networks. Tourism Management, 65, pp.14-28. Available at: https://www.sciencedirect.com/science/article/pii/S026151771730208X [Accessed on 16th May 2020]
Kotoua, S. and Ilkan, M., 2017. Tourism destination marketing and information technology in Ghana. Journal of destination marketing & management, 6(2), pp.127-135. Available at: https://www.sciencedirect.com/science/article/pii/S2212571X16303183 [Accessed on 16th May 2020]
Makkonen, T., 2016. Cross-border shopping and tourism destination marketing: the case of Southern Jutland, Denmark. Scandinavian journal of hospitality and tourism, 16(sup1), pp.36-50. Available at: https://www.tandfonline.com/doi/abs/10.1080/15022250.2016.1244506 [Accessed on 16th May 2020]
Mariani, M.M., Buhalis, D., Czakon, W. and Vitouladiti, O. eds., 2016. Tourism Management, Marketing, and Development: Performance, Strategies, and Sustainability. Springer.
Morrison, A.M., 2018. Marketing and managing tourism destinations. Routledge.
Tussyadiah, I.P., and Sigala, M., 2018. Shareable tourism: tourism marketing in the sharing economy. Available at: https://www.tandfonline.com/doi/full/10.1080/10548408.2018.1410938 [Accessed on 16th May 2020]
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Economics Assignment Help
Proofreading and Editing$9.00Per Page
Consultation with Expert$35.00Per Hour
Live Session 1-on-1$40.00Per 30 min.
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....