Business of Eating Out!

:Eating out at least once a week has become an accepted standard, While the city joints seem fully crowded all the time, the semi-urban areas are not far behind in emulating these. Even in the semi-urban areas, the people have come to make it a habit.
 
Shifting demographics and changing lifestyles are driving the surge in food-service businesses. Busy consumers don't have the time or leaning to cook. Consumers’ preference for eating out is not only about the taste of food it largely driven by their desire for a different experience in terms of service and the environment also.
 
India is a highly fertile land for the food industry to flourish. The country`s sizeable population spends almost 50% of its income on food. The growing middle-class, double-income families, willingness to spend, reach of television, increase in travel and the spread of internet have all led to Indians getting more plate exposure.
 
The evolution of new avenues with the increase in food courts at malls, forecourts, airport and railway lounges, and along highways is driving the growth of the organized Quick Service Restaurant and Dining segment.
 
Here the opportunity of restaurant business is increasing. Before starting a restaurant business you need to take three steps.
 
Target Markets:
Your business plan should include market research, a comprehensive look at your competitors, explain your target audience, outline marketing plans, and offer a solid budget projection.
We can target our customers in different segments, first decide which type of foods we  will deliver and who will buy the product. Today different types of foods available in the market for example Chinese, Arabian, Traditional etc… first we decide which type of food we will serve.
 
After that decide which age peoples will come to our restaurant, for example: McDonalds offers different products like Happy Meal which includes a free toy for kids. For families it has made different outlets and meals which are suitable for takeaways and drive-thru. McDonalds has made its environment which is suitable for students of school to hang out with their friends and can get their lunch at McDonalds.
 
After that decide which class of customers (High class, middle class and lower class) and which price range of customers will come to your restaurant.
 
Location:
With a restaurant, location is everything. You need a spot that draws crowds, is easily accessible, and has potential for growth. Of course, you need a location that fits within your budget too.
Whether you rent space or build from scratch, selecting a location is one of the biggest decisions you’ll make as an owner.
 
Select the location based on your targeted customers, make sure that your targeted customers have easy accessibility to your restaurant, for example: if the KFC and McDonalds open their restaurant in a non-urban area, do you think they will succeed?
 
So when you select your location make sure that it’s accessible and visible for your target segment.
 
Create a marketing plan:
You select a good location, set up an attractive restaurant, hire perfect chefs, offer attractive price and offers etc… but without a right channel of promotion there is no value for all these things. So when you do your promotional activities make sure that it will reach your target customers.
You cannot rely only on word of mouth to bring in so many customers, so you’ll need a marketing plan in place to keep new people streaming through your doors. A few non-expensive ideas:

• Participate in community events and give out food samples
• Offer discounts to new customers
• Join the local business association
• Utilize social media channels

• Conduct Food Competitions

 
Author: Jafer KK, PGDBM (Edxel-UK), works as Junior Business Analyst at Ameen Ahsan Strategy Consulting.
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