Food and Beverage marketingFeasibility study

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Recap of the previous session

• How does nutrition facts labeling aid the food service business.

• How do food service managers use the nutrition pyramid.

• What steps would be appropriate to preserve nutrition during purchase of raw material.

• What measures should be taken during making a cholesterol and sodium limited diet.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Objective of the session

• Explain marketing in terms of delivering guest pleasing service.

• Describe steps involved in developing a feasibility study and list three types of market research.

• Describe elements of a marketing plan and explain roles of sales, traditional and electronic advertizing.

• Describe marketing tactics that a non commercial food service operation may use.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Scope

• Feasibility study.• Identifying market area characteristics.• Evaluating the proposed site.• In-depth analysis of the competition.• Estimating demand.• Projecting operating results

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Marketing with a focus on guest service

• Seeing the business from the perspective of a guest.

• Need for commitment by all employees.• Plan strategies.• Implement the planning.• Talk about it on a continuous basis.• Emphasize on staff training on a continuous

basis.• Measure service to make results available to

employees.Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage

MarketingSlide 5 / 16

Feasibility study

• A study that is conducted before a proposed food service operation is constructed or on an existing facility prior to its purchase or lease.

• Potential investors decide whether to finance the project based upon the results of he feasibility study.

• The study guides the planners, architects of the project and assist managers as they develop marketing plans and prepare initial operating budgets.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Scope of a feasibility study

• Although the scope of a feasibility study varies from project to project a few features stay constant.

• Identifying market area characteristics.• Evaluating the proposed site.• Analyzing the competition.• Estimating demand.• Projecting operating results.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Identifying market area characteristics

• Demographic Information.

• Age • Gender• Level of education.• Marital status.• Number of children.• Family income.

• Type of employment.• Location of residence.• Volume of sales in

other related businesses.

• Economic situation of the area.

• Property rate movements.

• CommunitiesWednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage

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Evaluating the proposed site

• One of the most important variables in determining the success of the venture.

• A up market restaurant with an inviting ambience and good food quality will eventually fail

• Involves researching on population.

• Surroundings and metropolitan area.

• Walking distance from the community.

• Driving distance.• Proximity from the

highway or business district

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Evaluating the proposed site

• Distance from the nearest parking.

• Exits, Boulevards, turnpikes.

• Shopping malls.• Distances from

theatres and amusement parks.

• Walking population and driving population.

• Location analysis in general.

• Generating a comparative with the logistic difference comparison with other restaurants.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Analyzing the competition

• An inventory of all food and beverage facilities in the area.

• The data also includes commercial and non commercial establishments in the vicinity.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Analyzing the competition

• The data is then further broken down to:

• Location and proximity.

• Type.• Source and volume of

business.• Day and hours of

operation

• Menu Prices.• Guest Check average.• Type of service.• Number of seats.• Availability of alcoholic

beverages.• Entertainment.• Promotional efforts.• Chain affiliation.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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In-depth analysis of the competition

• How long has the competitor running his operation.

• Business volume at various meal periods in the week.

• What is the response from the current guests.

• Type and volume of demand for F & B services

• The adequacy with which the competition satisfies the demand.

• SWOT analysis.• Points of difference

between the proposed facility and the competition.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Estimating demand

• Extremely difficult and challenging.• Analysis of the areas Food and beverage

sales.• Establish dining trends.• Conducting personal survey’s.• Interviewing potential customers.• Sending in dummy customers at various

meal periods.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Projecting operating results

• Pro forma operating results which in this part of the world is known as Projected financial results.

• Usually done for 3 years in case of partnership and 5 years in case of project reports.

• Potential investors base their decision on this information.

• Investors are interested in the revenue first and expenses after that.

Wednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage Marketing

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Questions

CommentsWednesday, April 12, 2023 BAC-4131 Food and Beverage Management Cost Control: Food and Beverage

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