Chow Restaurant Business Plan Case Solution & Answer

Chow Restaurant Business Plan Case Solution

Executive summary

The reports sets out to investigate the key areas that the company must consider to minimize the exposure to the various risks, such as: high employee turnover rate and the areas of cost containment to improve the profitability levels. Because of an increased limitations of word-of-mouth advertisement; CHOW restaurant must advertise the product offerings on most trending websites and use TV, print media and online advertisement. There must be drive-through service for the customers who would want to make orders at arrival and get their food on the go, there should also be an option for the customers to order from the website & independent delivery as a service to the customers. CHOW restaurant must beat head to head competition by being a low cost provider as it would allow the company to achieve economies of scale due to the niche product offerings. It must foster the culture of knowledge sharing and employees’ engagement, which are pivotal to the successful performance of any business.There must be seven options per food category in menu and CHOW restaurant must promote the sale of specific items with photos, invest in digital signage boards,update menu with specials&seasonal items.It must control the labor cost by lowering the employees’ turnover, automating the manual processes, analyzing the stock requirements through yielding management and tracking as well as managing the inventory, using first in first out method and utilizing the daily specials to reduce the cost. The collaborative training programs with learning skills should be introduced by CHOW restaurant in order to make the employee learn the new market tactics and provide compensation and benefits to retain them.

Insight-sand analysis (set of changes/recommendations)

Taking under consideration the information provided in the business plan, a certain changes are recommended to opt for higher profitability and long term growth in the market.

Promotion and advertisement

The word of mouth promoting strategy consumes an extensive amount of time, which limits the reach and could spread the misinformation. Furthermore, by using the word-of-mouth strategy; the CHOW restaurant would have limited control over the message. If the customer would have unpleasant or negative experience with the service;they would more likely share their experiences with others. Due to an increased limitations of word-of-mouth in growing the business; the company must advertise the product offerings on most trending websites. Also, it could use TV, print media and online advertisement. Additionally, it could build partnership with online food app as a part of the marketing plan. Partnering with an online app tends to encourage the visitors to visit the restaurant through gratification as well as other customer loyalty programs, which offers a discount or free giveaways to the visitors for visiting frequently.

It can also setup a Google+ account,because when customer would search a business within Google, business details would be provided by Google’s Knowledge Graph, hence providing a huge bonus to the CHOW restaurant. Furthermore, the company must send out email newsletter as it is serve an opportunity to celebrate the success and discuss new menu and share special discounts. By doing so, the chances of succeeding in the competitive marketplace would be increased.

Distribution strategy

Under the CHOW restaurant chain;there must be the drive-through locations primarily located inside the convenience store and the customers must be given an option of ordering from the website& offer independent delivery as a service.Digital technology such as mobile apps, online ordering, on demand service app and selling via own website would provide the advantage of maintaining a control over how the customer view the brand, further added is the influx of m-commerce, which has revolutionized the distribution.(Gutierrez, 2019)……………………………

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