Feasibility of Cactus club cafe in Japan

2. Presented by Team Hortons
Cactus Club Cafe
in
日本

4. Five potential countries' overview
United States of
America
Chile Germany
India Japan

5. United States of America
• Labor Saving Technology
• Redesigned restauraunt layouts
• Longer working hours
• Restauraunts spending exceeded
groceries spending in 2015
• Incomes Increased
• Unemployment declined
• Consumer confidence Improved
• Greater spending on sit down
meals
• Baby Boomers more income
• 18-30yr olds delaying marriage
• FSR’s draw sales from high
income households
Demographics Economics
Technologica
l
Culture

6. Germany
•Demographics:
• -Most populous country in European Union
•- Wealthy country with high-quality of life
•- Median age 46-48 years
•- Ageing population
•Economics:
•Unemployment decreased
•Incomes increased
•Consumer prices increasing

7. Germany
Technological:
World leader in technology
Cultural:
Strong beer culture
Open to new culinary trends
Values: Punctuality, structure, privacy, thriftiness, hard work

8. -Economic Analysis
- Considered as a “high-income economy” according to the
World Bank.
- One of the most stable nations in Latin America
- Economy has grown on average 5.5% each year since
1985.
Cultural Analysis
· Chileans do not spend too much money eating out
· Chilean cuisine consist of seafood
· Wine culture.
Chile

9. Demographic
- Population 17.62 million
- Median age is 32 - 35 years old..
- Chile has a high income inequality
- Most restaurants are located in shopping mall
Technological
- Transport infrastructure and modern connectivity integrated
to the world.
- Most innovative country in South America.
Chile

10. India
◆Demographic:
◆Big scale of age: “25-54”
◆Income distribution uneven: 10%, 370 times
◆Culture:
◆Garlic, wheat, rice
◆ Strength:
◆ Economic: grow fast → PPP → higher education, higher
income
◆ History: British colony → English speaking country →
welcome to western food culture
◆Weakness:
◆Indian domestic economy: "the poverty pitfall”
◆High power distance

11. Region : Asia
Population : 126,919,656 (as of
2015)
Capital : Tokyo
Why we chose Japan?
•Slow but recovering economy.
•Strong consuming power.
•Scored 9.5 marks of foreign investment Index (viability)
•Scored 9 marks of Political Stability Index

12. Environmental:
Japan has the third-largest economy in the world.
Aging population.
Social (sociocultural):
Japanese cultural difference between Western culture.
Unspoken rules.
Sensitive when comes to foreign companies.
Legal:
Earthquake/Tsunami protocols
Limits on Terminating Agreements
PESTEL Analysis

13. Factor endowment
1.Basic endowment：openness of their dinning culture in major cities
2.Advanced endowment：great location with nearest talents
Demand conditions
Firm strategy, structure, and rivalry: being unique.
Related and supporting industries
1.entertainment
2.Food suppliers
3.Accounting/legal support
Governments
Chance
Competitive Advantages

14. Target Market - Japan
• - Single person/working class households (18-30)
• Older populations who demand healthy/ organic
food
• Business people in local area

15. North American FSR’s in Japan
• Tony Romas – 8 Locations (8 different cities). $45 for 8oz steak in Tokyo.
World famous ribs
• Outback Steakhouse – 10 Japanese locations (6 in tokyo). $48 angus ribeye.
Specializes in steak
• Red Lobster – 26 locations (7 in Tokyo). All seafood menu
• TGI Fridays – 17 locations (10 in Tokyo). Gourmet Burgers
• Hooters – 6 locations. Waitresses

16. Product
- Unique and Healthy Menu
- Certified Angus Alberta Beef, free run
chickens, lingcod
- Ocean Wise fish
- Rob Feenie Specialties
- Wide Variety of Cocktails, Wine, and Beer
- Best cooks in the Industry
- High perceived quality Rest. Design
Place
- 22 stores in BC, 4 in Alberta, 1 in Sask., 1 in
Ontario
- High foot traffic locations
- Expensive store design
- Transparent Design
- Each store uniquely different
- Selling an experience
Pricing
- Steaks $25-37
- Main Entrees $20-25
- Salads $9-18
- Burgers & Fries $16-18
- Rice Bowls and Tacos $13-18
- Cocktails $8-12
- Wine (6 oz) $8-13
- Beer $6-9
Promotion
- Website
- Linked Facebook, Twitter, & Instagram
- Snapchat
- Newsletter
- Youtube Videos
Current Marketing Plan: 4Ps

17. Product
• Keep all current recipes
• Focus on the quality experience when marketing
• Add more seafood recipes
• Add Japanese food & drink
• More pictures and color in Menu

18. Japanese Additions to Menu
Udon Yakitor
i
Okonomiyaki
Nohonshu Shochu Awamori Umesha

19. Seafood Recipes

21. Place
• Roppongi Tokyo
• Minato, Tokyo.
• High population density
• Particularly for young people
• Major nightlife area
• Embassies located in that area

22. Interior Design

23. Price
• Income level high
• Living costs among the highest in the world
• Average restaurant dinners 25-50 CAD (2000-4000
Yen)
• Increasing the prices by 10 %

24. Promotion:
Social media:
Website blog, Facebook, Twitter,Instagram, Youtube, Snapchat,
Website.
Email exclusive offers/menu/gift card
for Restaurant:
Grand Opening (share link, free gift)
Special deal change every week**

26. Promotion:
Social media:
Website blog, Facebook, Twitter,Instagram, Youtube, Snapchat,
Website.
Email exclusive offers/menu/gift card
for Restaurant:
Grand Opening (share link, free gift)
Special deal change every week**

27. Entry Strategy
• Franchising
• Rapid market expansion
• Repeatable business model
• Brand recognition
• Unique business model

28. HR in Cactus Club
• Strong team culture
• People competitive advantage
• Hires and retains the best employees in the industry who are positive, driven, results-
orientated people that love a good challenge
• Continuous improvement, learning and development critical to success

29. Global Human Resource Management
• Staffing policy
• First step, an ethnocentric staffing policy
• Helps to maintain a unified corporate culture
• Second step, a polycentric staffing policy
• Less likely to make mistakes arising from cultural misunderstandings

30. Compensation
-Paying the Japanese employees according to the prevailing
standards of the country
-The expatriate manager`s salary will be paid in the same range
as the base salary for a similar position in the home country
Global Human Resource Management

31. Time Table
• Initial Conversation: October 5, 2016
• Brand discussions: December 4, 2016
• Agreement Signing: January 2, 2017
• Building renovation: January 10, 2017
• Recruitment: January 11, 2017
• Training: February 15, 2017
• Marketing campaign: May 18, 2017
• Grand Opening: June 27, 2017
Time Line

32. Video time!