2. Market Survey
• A market survey provides a detailed analysis of the
customer, the community and the physical location
of the foodservice operations
3. Preliminary Steps
• Two basic steps
1. To establish the style & type of foodservice operation
or concept
2. To determine the community's need for such a
business establishment.
4. • Issues to address
– Style of menu
– Type of clientele
– Type of cuisine
– Style of atmosphere
– Style of interior design
– Expense of food, labor and overhead
– Desired profit
– Amount of capital to be invested
– Regulations for operating on a daily basis
– Architect
– Lawyer
– Accountant
– Chef
– Staff
6. A. Customer
• Most important elements. Known as market also.
• Key factors to consider:
i. Desired market
ii. Market classification
iii. Gender
iv. Age
v. Disposable income
vi. Food preferences
vii. Social habits
viii. Education
ix. Religious orientation
x. Ethnicity
xi. Occupation
xii. Arrival patterns
xiii. Preferred days for dining out
7. i. Desired market
• Owner must decide on the desired market that the
foodservice concept is to attract.
• Goal of marketing plan – to provide an excellent dining
experience that satisfies the customer.
• Satisfies customer are key to a longer & more profitable
existence.
8. ii. Market classsification
• 1946 – 1964 : baby boomers
• 1965 – 1978 : Gen X
• 1979 – 1994 : Gen Y
• Have similar opinions and points of view due to having
lived during the same period of time and having similar
experiences.
9. iii. Gender
• Gender influences:
– Type of layout for foodservice operation
– The size of the chairs
– The interior design color scheme
– The type of cuisine
– Portion size of food item to be served.
10. iv. Age
• Age of target market helps determine several.
– Type of cuisine and food selection
– Price
– Portion size
– Nutrition & nutritional requirements
– Style of atmosphere
– Lighting level in the dining room, rest rooms
– Texture of the functional and decorative materials used
– Style of entertainment
– Accessibility of the operation and movement within it
– Type and intensity of background music
– Size of lettering on the menu
– Service style
– Layout and design of the foodservice operation
11. v. Disposable Income
• Is a the amount of income that remains after taxes and
personal bills have been paid.
• Also called entertainment, fun or luxury money.
• Information on disposable income is helpful in forecasting
the annual sales for the financial statements of a business
plan.
12. vi. Food Preferences
• Knowing the foods and/ or cuisines that a target market
prefers is also imperative in achieving success.
• By collecting menus from several foodservice operations
that have similar concepts and looking for items listed on
the majority of these menus, it is possible to deduce that
these items listed
13. vii. Social Habits
• An understanding of how the market socializes helps to
determine the type and style of entertainment that should
be offered.
14. viii. Education
• People with higher education level tend to be more
receptive to news ideas and trying something news.
• More money and have a higher level of disposable income
to dine out more often.
• Allows to use more appropriate language in designing the
descriptive copy of items on the menu.
15. viiii. Religious Orientation
• Some religious cultures have laws that restrict the
consumption of particular food items and the method of
preparation of others.
• Knowing customers religious backgrounds can help to
build sales.
16. x. Ethnicity
• Recognizing a market’s ethnicity background and offering
some favorite authentic national dishes.
17. Occupation
• Type of employment of a target market can assist in a
planning menu and portion size.
18. Arrival Pattern
• Hours at which groups of customers dine out.
• Allow for appropriate and adequate dining room set up
• Timely turnover time that allow for increased covers and
greater sales.
• Families – 4.30 pm to 7.00 pm
• Large adult group – 8.00 pm to 9.00 pm
• Couple – 8.00pm to 11.00 pm
19. Preferred Days for Dining Out
• Knowing which business day are popular and which are
slower helps to establish the need for merchandising and
marketing programs.
• Customers expect an enjoyable experience when they dine
at a restaurant.
• Owner should go one step further and provide them a
great dining experience.
20. B. The Community
• The geographic region, district, city, or town from which
the majority of the foodservice operation’s customers
come called community.
• Elements to study include:
i. Growth rate
ii. Availability of liqour licenses
iii. Existence of competition
iv. Public services provided
v. Requirements of the state Board of Health
vi. Number of Families
vii.Potential for Advertising
21. i. Growth Rate
• If community has a declining population, it is wise to
discover the reason for the decline and o think twice
about building or operating and establishment there.
• E.g., it would be a mistake to build in a location where the
unemployment rate is high.
22. Availability of Liquor Licenses
• Alcoholic beverages are one of the most profitable
commodities that the foodservice industry has to sell.
• Obtaining a liquor licenses is expensive and difficult task.
23. Existence of Competition
• Type of competition
– Direct Competition
• Includes foodservice operations that are directly
related (similar) to an operation.
• Offer similar cuisine, décor, check average, capacity
and turnover rate.
– Indirect Competition
• Consists of foodservice operations that are not similar
to that of the investor but who are competing for the
same customers.
• Location near indirect competition can be beneficial.
24. Public Services Provided
• To help calculate overhead expenses, the investor needs to
know which public services are covered by tax and which
services will cost additional monies.
25. Requirements of the state board of health
• To protect the public from circumstances that may place
the public’s health in danger
– Food contamination
– Premises sanitation
26. Number of families
• Usually indicates whether the community has a stable and
/or growing population.
• School system can be a good source for an effective
merchandising program.
27. Potential for advertising
• Key elements to a successful advertising program is
communication on the customer’s level
• Planning ahead for advertising can allow for promotions
throughout the year.
28. C. The Location
• The needs of a foodservice operator who wants to establish a
chain of operations differ from those of an individual.
• Helping eliminates much wasted time and frustration.
• Need to analyze the population of the state, city and suburban
community.
• Population trends may shif drastically in a city if it is dependent
on particular industry.
• Foodservice operator that depends on these customers could
also be closing its doors.
29. Other things to consider
• Zoning
• Area characteristics
• Physical characteristics
– A percolation test – to estimate the time it takes for
water to be absorbed into the soil for proper drainage.
– Also indicates the type of soil, rock and clay
• Size, shape and cost
• Streets and traffic information
• Sales generator
• Visibility
• Parking
• Snow and trash removal