This proposal aims to analyze current business problem in Eatsa and suggests marketing plan to achieve bigger market share and sustainable customer source.
Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
For my Managerial Accounting course, our team was charged with creating a strategy map and providing an analysis of a publicly-traded company's mission statement, business model, financials, competitive and business factors, consumer analysis, and key value drivers. We selected Chipotle.
Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
For my Managerial Accounting course, our team was charged with creating a strategy map and providing an analysis of a publicly-traded company's mission statement, business model, financials, competitive and business factors, consumer analysis, and key value drivers. We selected Chipotle.
This module explores the current market situation for Street Food. It also touches on how you as an entrepreneur can use technology to maximise your business ideas, bench-marking and gives real life case studies of Street Food businesses in action.
Marketing analysis of Chipotle's Scarecrow campaign. Analysis includes audience, brand and insight, creative analyses as well as the positioning and media strategy for the campaign
We conducted qualitative and quantitative surveys about Subway's brand image and loyalty in Pakistan and analyzed the collected data.
And then designed the Mental Association Map & Customer-Based Brand Equity (CBBE) Model to show the brand's success and customers' attitudes and devised tactical recommendations for the future.
Sample business plan assignment for students. Its is simple, yet professional, and students can use it as a guide. You can contact us for a custom business plan template for students.
This module explores the current market situation for Street Food. It also touches on how you as an entrepreneur can use technology to maximise your business ideas, bench-marking and gives real life case studies of Street Food businesses in action.
Marketing analysis of Chipotle's Scarecrow campaign. Analysis includes audience, brand and insight, creative analyses as well as the positioning and media strategy for the campaign
We conducted qualitative and quantitative surveys about Subway's brand image and loyalty in Pakistan and analyzed the collected data.
And then designed the Mental Association Map & Customer-Based Brand Equity (CBBE) Model to show the brand's success and customers' attitudes and devised tactical recommendations for the future.
Sample business plan assignment for students. Its is simple, yet professional, and students can use it as a guide. You can contact us for a custom business plan template for students.
Running head QUALITY FOODS RESTAURANT 1QUALITY FOODS RESTAURAN.docxjeanettehully
Running head: QUALITY FOODS RESTAURANT 1
QUALITY FOODS RESTAURANT 15
Quality Foods Restaurant Business Plan
Cintia Rocha Pereira
Southern States University
Dear Dr. Taylor
Quality Foods Restaurant Business Plan
Products Description
The Quality Foods Restaurant shall be opened in San Diego in partnership with a gym. The restaurant shall serve a variety of foods and protein shakes that are low in cholesterol and sugar as its primary target is to provide healthy yet delicious meals to the residents of San Diego. The starting up of the restaurant is informed by the consistent increase in the obesity cases in the city, an aspect that is attributed to the types of food that the people eat mainly in the restaurants (Steele et al., 2016). Research shows that eating healthy foods and low in calories makes a person happy. The study also indicates that 75% of Americans prefer to eat healthy foods. All the foods shall be low in calories with the aim maintaining the health of consumers (Bridges, 2019). In addition to providing a serene environment for the customers, the restaurant shall also be focused on ensuring that all the people eat the foods that help their bodies to keep fit. The foods in the restaurant shall also be of high quality and delicious. To enhance the experience of the customers and also to improve the competitive advantage of the business, a nutritionist shall be employed by the management to provide the necessary information to the customers on the healthy foods they should eat to overcome lifestyle diseases that are mainly brought about by consumption of junk foods .
At Quality Foods Restaurant, customer's experience shall be the first priority as it is a factor that shall consistently lead to an increase in the loyalty of the clients and an increase in the market base mainly due to referrals. Every activity by the workers in all departments shall be aimed towards ensuring there is the best experience on the customer (Bridges, 2019). Quality foods shall, therefore, be cooked with the application of innovative skills that are essential towards maintaining the taste of the food. Most people have a negative notion that most of the foods that are described to be healthy by nutritionists are never delicious. The production of delicious foods in the restaurant shall also aim towards adjusting the mindset of the people. The healthy foods that are mainly low in cholesterol are important towards protecting the consumers from disastrous lifestyle diseases and conditions that are associated with consistently eating foods that are high in carbohydrates. The nutritionists shall also undertake the responsibility of providing a well-outlined program to the customers on the best diet they should undertake when they need to reduce weight. To compete with other Restaurants in the location, a marketing strategy applied shall be based on positioning of the foods and services as the best in the industry.
a) Mission
The mission of the ...
Soupman, Inc.
Business Plan
Marketing Plan
Team 2: Brandi Seich, Mark Seich, Jonathan Downes, Jessica Gonzalez, Yiren Jiang, Jiachen Li
2-27-2017
Market Analysis Summary
Soupman, Inc. focuses on reaching three primary segments under the name “Original Soupman”:
1.1. The Convenience, Quality Shopper. Someone interested in purchasing a consistently tasteful quality, fresh product for themselves and/or their family, which can be prepared with ease and convenience.
1.2. The Business Folk. Local business workers within the tri-state area of NY, NJ and CT in search of a local dining experience for lunch or a quick dinner.
1.3. The Educational Consumer. Buyers within the educational market of high schools and colleges looking to provide vegetarian, quality products to students and faculty.
Market Segmentation
Soupman, Inc. under the name Original Soupman will continue to focus on three key market segments: convenience, quality shoppers; business folk; and educational consumers. There are multiple delivery systems to service these three markets including: grocery locations, food services – brick-and-mortar and mobile; and educational.
The convenience, quality shopper would be those individuals shopping at a grocery or soon to come convenience store location looking for a quality, convenient product they feel confident in for their own consumption or their families. Their needs are met through the Original Soupman soups which are available in 17 ounce Tetra Pak cartons delivered through the grocery segment in 6,500 grocery stores. The soups have prime positioning beside market leaders such as Campbell’s and Progresso. Some of the prestigious retailers within the grocery segment include Kroger, Costco, Safeway, Albertson’s, Publix, Wegman’s, HEB, Shoprite, Acme, Shaw’s and Winn Dixie among other regional chains as well.
The business folk are those within the NY, NJ, and CT area who are looking for a quick, convenient, but consistently tasteful dining experience for lunch, dinner or anything in between. In addition to soups, sandwiches and salads are also available. These consumers are served in one of our eight franchised and licensed brick-and-mortar locations. They can also be served by our mobile location, which provides a daily calendar for consumer convenience. This mobile market is served through using heat ‘n service pouches to ensure consistent flavoring no matter the location of choice.
The educational consumer is served in a number of schools and colleges in the NY area. This segment is serviced through the use of bulk flash-frozen soups and other products (e.g., Mexicali Beans, Stewed Pinto Beans and Curried Chick Peas with Tomatillos).
Soupman has identified substantial distribution opportunities in national restaurant chains, college campuses, stadiums as well as other food service venues. Early testing has begun within a national restaurant chain and has been quite successful.
Significant opportunities reside within the grocery se.
OuterBrand, LLC has developed a brand identity for 500Cal. This is the brand style guide that was created for 500Cal franchise. The style guide talks about the brand development in various stages of development. The guide is broken down into 3 different sections, Research, Development and Implementation.
500Cal is a fast food franchise that OuterBrand, LLC had an opportunity to brand. During the branding process we focused on brand positioning, brand engagement and the brand voice.
Please view the 500Cal brand guide.
(iCHEFTeam A) (DeVry Inc. MGMT 600 November.docxjoyjonna282
(
iCHEF
Team A
) (
DeVry
Inc.
|
MGMT 600
|
November 24, 2015
)
Industry Review
iCHEF is a convenient service presented to our customer through a mobile APP. We offer an array of Appetizers, Entrees and Desserts. The industry we are embarking on is the Food Service and Catering industry.Examining the food service/ catering industry, we’ve learned that this industry is on the rise. It is an industry that is expected to expand over the next five years. This industry will continue to grow and define its niche by being innovative, offering international cuisines and beverages, and using sustainable locally sourced produce. The industry has received a boost from an improving economy, as consumer spending is expected to rise at an annualized rate of 2.6% during the five years to 2020. Households, which account for over 50.0% of industry demand, are expected to bolster their demand for catering services as consumer conditions improve. Unemployment is forecast to decline over the next five years, while disposable income is expected to moderately grow. As consumer conditions improve, time-poor consumers are also expected to prefer to use catering services, rather than attempt to do it themselves.
Over the next five years, consumers will continue to demand higher-quality food, better food presentation and a wider menu selection with healthier alternatives. Many customers will also begin to seek out caterers that use organic and locally sourced foods. Menus will need to more thoroughly describe items, by methods such as listing ingredients, where they came from and how they were prepared. These new demands may force some operators to increase their purchase expenses, or choose to vertically integrate by owning and operating their own farms. Consumers will also demand more value-added services, such as decorations, floral arrangements and entertainment. Overall, the number of industry enterprises is anticipated to increase 1.2% per year on average to 11,320 households and businesses.
Industry profitability is expected to strengthen and stable over the next five years in line with rising demands of the consumers. However, profit growth will be limited by strong internal and external competition and forecast rising purchasing costs. As competition rises, it will become even more important for operators to define their niche and find a way to differentiate themselves from competitors, whether through services offered or quality of service. Food costs are forecast to increase due to strong emerging market demand and volatile weather conditions. The trend towards serving more innovative, exotic food and using locally sourced and sustainable produce will also increase purchasing costs for caterers. Wage costs are also expected to increase by 2.0% per year on average over the next five years to reach $3.0 billion, as higher-paid chefs and consultants are brought on to provide more complex fare.
Looking ahead the food service/caterers industry is in the mat ...
Running head: BUSINESS DECISION 1
BUSINESS DECISION 2
Business Decision; Buy or Build
Student’s Name
Affiliation
Craft a brief strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail.
After years of eating at B-CHAMPS fast foods, an outlet in central Boston, subconscious knowledge and interest in the restaurant business has been acquired by the Mr./MRs XXX(insert student’s Name)XX. Since the late 90’s, concerns over obesity ensured public protests against poor eating habits (Schlosser, 2012). Such protest directly attacked the fast food industry and its supply chains. This was intensified by educational curriculums that broke down the effect of excess fats and unnecessary calories contained in most fast food industry products. Furthermore, a general concern for a healthy workforce also introduced an era where employers started investing in health programs for their employees (Schlosser, 2012). These included physical exercise programs, free healthcare consultation on dieting and other well being plans. Therefore, fast food joints were forced to provide healthy food options for the enlightened consumers or close business. Additionally, a healthy foods competition arose that promised consumers salads, plain fruits, vegetables and juices among other products rarely served at fast food joints. The situation was worse in Boston based on its thriving sports tourism industry (Sgan, 2009). Regular local, national and international events raised the healthy eating awareness of the residents thus ensuring declining sales in the fast food industry. Only large fast-food chains managed to cushion the original impacts. Small chains such as B-CHAMPS were hit hard by the change in consumer preference that is destined to be permanent.
The majority of fast food customers are children and young adults. Based on the minimum visits of the aged clients and adults, the projected consumer base is under-exploited. The purchasing power is majorly possessed by the adults and aged consumers. In order to attract more children and young adults, the healthy foods option is mandatory. The adults/ aged consumers will increase their visits in terms of volumes and frequency. This guarantees additional children and young adults company. Providing the healthy food option takes care of adults/ aged consumers impatience based on the lengthy food preparation in the mainstream restaurants and hotels.
The Umbrella Health Fast Center relies on engaging as many suppliers of vegetable and fruits to service the healthy foods counter. The customers will determine their preferred needs through questionnaires and feedback applications on the internet or mobile phones. Healthy f ...
The food service industry has changed irrevocably this year. Between a global pandemic forcing so many restaurants to close forever and Generation Z entering adulthood in quarantine, the market has adapted to the new normal and businesses need to pivot accordingly to stay relevant in consumers’ minds.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
1. MKTG 3552 MARKETING STRATEGIES AND DECISIONS
Winter 2016
Xiaochen Song
Cynthia Poon
Irene Liu
Isaac Lee
Tom Chien
2. Table of Contents
Background and Market overview 1
Customer Analysis and Segmentation 1
Competitors and Company analysis 2
Business Problems 4
Decision Alternatives 5
Recommendations 6
Product 7
Promotion 8
Price 9
Place 9
Financial Projection 10
Exhibits
I. Geography of Financial District
II. Customer Segmentation Scheme
III. Market Size Calculation Flow chart
IV. Competitive Analysis
V. 2016-2018 Financial Projection
VI. Calculation on Projected Profit
VII.Survey Questions and Results
References
3.
4. Background
People call Easta “food for future” and “robot restaurants”, its first location
opened in 2015 in the financial district in San Francisco.[1] With a second location that
just opened in Los Angeles early 2016, Eatsa is innovating the way fast casual dining is
experienced.
Quinoa, a high protein grain, is the main ingredient in Eatsa. Customers can cus-
tomize their own meal by adding different toppings and sauces or choose from the eight
prepared bowls in Eatsa’s menu. Eatsa is differentiated than most restaurants in that
their customers use iPads to view the menu, place an order and pay with the swipe of a
credit or debit card. The screen will then guide them to a wall of glass cubbies. In min-
utes, customers’ name appear on the screen of one of the cubbies, and by tapping the
screen twice, the glass door lifts and food appears in front of the customer.[2]
Fast casual restaurants have been expanding rapidly and sales reached $23 bil-
lion in 2010, a 30% increase since 2006. In 2009 there were 600 fast casual concepts in
the $580 billion restaurant industry. Growth in the fast casual segment led the industry
by a wide margin in 2008 when the extremely popular fast casual franchises Chipotle
and Wingstop grew 20.7% and 17.8%, respectively.[8]
Customer Segmentation
Eatsa is the first automated restaurant in San Francisco, it’s customers have
segmented by their willingness to try new ideas. Segmentation refers to diffusion of in-
novation[4] among potential customers population. There are five categories which are
1
5. innovators, early adopters, early majority, late majority and laggards. This has been out-
lined in the segmentation scheme (see Exhibit 2).
According to The Consumer Behavior and Travel Choices report[5], the average
walking distances that people are willing to travel is 0.7 miles. On average combined for
biking, driving, walking, and transit, consumers are willing to travel 3.0 miles to pur-
chase food. The map to display relative distance to Eatsa can be found in Exhibit 1.
Competitive Analysis
Within the fast-casual food industry, Easta is competing with many similar restau-
rants in various sizes from fast food restaurant chains to local fast-casual diners. The
chain restaurants have instant brand recognition and trust of their customers. Moreover,
they have established a menu choice and operation line. The local diners win cus-
tomers’ through home made food, hospitality and homey decor. In this case, based on
the geography factor, we will take Chipotle, McDonald’s and local diners like Freshroll
Vietnamese Rolls & Bowls as the main competitors (see Exhibit 4).
Chipotle is a Mexican Grill restaurant chain. It owns more than 1,900 fast-casual
restaurants. Customers can build their own meal from a lineup that includes chicken,
steak, barbecue or free-range pork. They offer options such as beans, rice, guacamole
and various other vegetables and salsas. It opened more than 200 new restaurants in
the past five years.Chipotle also differentiated itself from others through what they
called “food with integrity” , meaning using naturally grown ingredients and classic cook-
ing techniques. We consider Chipotle to be in the Early Majority segment because they
2
6. have been established as a fast casual restaurant for many years. They offer a unique
menu where every burrito or bowl is customized to the customer's preference.
The reason we include McDonald in our competitive landscape due to its fast
service speed and its low price. 70% of McDonald’s revenue comes from its drive
through. This service provides convenience for customers on the go and this is not
something provided by Eatsa. McDonald has put more focus on making nutritious food
and balance diet by serving more menu items that includes fruits, vegetables, low-fat
dairy and whole grains. Moreover, McDonald is adding self-service kiosk inside the
restaurant hoping to increase sales by allowing its customers to customize their meals.
It shows the fast casual industry is incorporating more technology in order to funnel cus-
tomers to their product. McDonald’s is considered to be in the Late Majority segment
due to its long history and good reputation. One of their core competencies is consis-
tency, their product has the same taste and quality to them in every McDonald’s restau-
rant around the world. McDonald’s also offers a large dining area for customers to sit
down with friends and families to enjoy their meal.
Other than the chain restaurants, Eatsa is also competing with local diners in its
area. Most of the diners features certain unique cuisines that is differentiated from
restaurant chains. We choose Freshroll as an example because it has similar concept in
menu design, ingredients, price range and location with Eatsa. Freshroll is a vietnamese
restaurant and it claims to use authentic vietnamese family receipt for their meat and
sauces. They cook their pho broth from scratch and prepare homemade taro chips daily.
Customer orders through a 4-step process: picking main dish, protein, vegetables and
sauces. In Freshroll, you can find ingredients that are avoided by other vietnamese
3
7. restaurants due to high expense such as pineapple. Its dedication is not only reflected
through better tasting food but also providing convenience for busy workers by online
order option. In the financial district, there are more than 20 local restaurants like this.
Freshroll would be in the Laggard segment, they cater to ore traditional type of con-
sumer who is looking for a “home cooked” meal. These consumers are not likely to
change and are not willing to try new things.
Business Problem
Eatsa stands out for its high-quality, vegetarian ingredients and fast service. We
realize that more and more fast-casual restaurants are adopting high-tech methods to
improve customer experience and service speed. Although the vegetarian ingredients
help Easta differentiate itself from other fast-casual restaurants but also could be a hin-
der to attract diverse customers in the long run.
Large chains like McDonald’s is introducing touch pad ordering to speed up the
process and attract more customers. Chipotle and Wingstop are also offering online or-
dering to attract more fast casual customers by offering the ability to order online and
pick up at the store. This can be an issue for Eatsa because their business is based on
the ability to order and receive food quickly at the store without offering online ordering.
Decision Alternatives
In order to efficiently penetrate the marketing, Eatsa needs to target the most
valuable customer segments. Based on our customer segmentation scheme, we will not
4
8. consider Late Majority and Laggards. The reason is that the restaurant concept of Eatsa
is new and non-traditional. The willingness of Late Majority and Laggards to try new
things are low. Thus, we will focus on Innovators, Early Adopters and Early Majority.
Decision Alternative 1 (Innovators):
The Innovator likes the new ideas and new concepts. They are the first to try new
products, Eatsa’s automated restaurant concept can attract them to try the new tech-
nology. Their willingness to try a new restaurant is very high and they are willing to take
risks. Because of this, the cost to attract these customers are very low. Eatsa has a digi-
tal wall which show customer's name when they pick up the food. The digital wall is a
creative idea which can attract the innovator. However, the innovator market is very lim-
ited, only 2.5% of our market size, which is only around 36,740 people within 3 miles of
Eatsa.
Decision Alternative 2 (Early Adopters):
Although Early Adopters might not be the first ones to try a new idea, they are
more influential as opinion leaders. According to the research, Early Adopters tend to
have a high awareness towards new ideas and they are very willing to accept them. Ac-
cording to our survey, 50% of Eatsa’s customers showed that they would try a restau-
rant after they heard recommendations from friends. We categorized this group of peo-
ple as “Early Adopters”. Based on our segmentation, the early adopters are in high edu-
cational level, they own bachelor or Master’s degree. This type of people are not only
sensitive to the healthy factors towards their food but also like to be educated on food
quality. Therefore Eatsa’s premium ingredients could have a bigger impact on them.
5
9. Moreover, according to our research, there are 49,595 potential customers within 3
miles of Eatsa, more than 5 times of the Innovator group.
Decision Alternative 3 (Early Majority):
The major advantage of the Early Majority segment is their large participation in
the market. According to our research, the market size for this segment is roughly
124,000 consumers around the 3.0 mile radius of the restaurant. There are more people
in the Early Majority segment than both Innovator and Early Adopters combined. They
are more knowledgeable when it comes to trying new things. This segment is mostly at-
tracted to word-of-mouth and upcoming popular restaurants that have many positive re-
views. The basic Early Majority consumer will have no problem in deciding if Eatsa is
right for them. However, the Early Majority consumer will cost more to attract because
their willingness to try a product is only moderate when compared to the Early Adopters
and Innovators.
Recommendations
From our analysis, we recommend Eatsa pursue the Early Adopter segment. Al-
though this market segment is not as large as Early Majority, the Early Adopter con-
sumers are highly influential and more likely to try new things. On the other hand, inno-
vators like to explore new things and keep seeking new restaurants, so it is not critical
for Eatsa to target this segment, the consumers in the Innovator segment are too willing
to switch to new things. It will be too costly for Eatsa to spend resources to retain these
customers.
6
10. Marketing towards the Early Adopter segment will enable Eatsa to quickly and
easily obtain new customers. Eatsa should implement a strategy to acquire as many
customers in this segment as possible and retain them through promotional activities.
The reason we recommend the Early Adopter rather than the Early Majority is that de-
spite the Early Majority has the greatest number in the market, it takes more efforts and
cost to attract them to Eatsa because of the lower willingness to try new things. There-
fore, we decide to focus on the Early Adopters, and utilize their influence to attract oth-
ers.
Implementation
Product: According to our survey, 66.7% from survey A and 67.7% from survey B
claimed that food is the most important factor to attract them to a restaurant. In addition,
half early adopters consider taste as the most important factor and the other half think
healthy ingredients was. Currently, Eatsa describes its product as a better and faster
food. In order to increase the awareness of early adopters, Eatsa should describe its
products as healthy and green beyond better and fast by using words such as healthy,
light and vegan.
Also, 43% people in our survey complained Eatsa’s products do not contain
meat. However, we do not recommend the addition of meat products in their bowls, be-
cause Eatsa is a vegetarian restaurant that utilizes nutritional energy production from
quinoa rather than animals. Thus, we want to keep it as one of their characteristics . In-
stead of adding meat, we plan to add the vegetarian meat which has similar taste and
texture as meat, but is derived from soy beans. It would give more variety to customers,
7
11. so they can choose to add the extra vegetarian meat option on their quinoa bowl. In our
survey, less than 1% people choose Chili con quinoa and Perfect pearing salad bowls.
Eatsa can modify their ingredients composition in order to increase the sale of these two
bowls.
Promotion:
Early adopters can be easily attracted by mass promotions and recommenda-
tions from friends. They can have an easier time attracting customers in the Early
Adopter segment who are willing to try new things. One method of promotion Eatsa can
utilize to acquire more customers, is to offer a reward program that tracks number of
bowls purchased. After a certain number of bowls customers can receive a free meal.
This will help customers familiarize with Eatsa and build a habit of a healthier lifestyle.
Also, spending more resources to develop their online ordering system will enable Eat-
sa to track product trends and customer habits better. They will have more data avail-
able to better serve their segment and have a higher rate of retaining customers.
Eatsa can also utilize their electronic system so people can refer their friends or
family to try Eatsa. Both parties, the person who gave the referral and the person who
received the referral, can receive points or other free items like drinks, sides, etc. Eatsa
is a new restaurant with a unique spin on how customers order and receive food, they
would want to spend a lot of resources promoting their restaurant and acquiring as
many customers as possible.
Another promotional strategy Eatsa can implement is the idea of a contest to
create a new bowl. This can be created as part of their online system, customers can
8
12. login to create a bowl. Popular bowls are then chosen to vote on, customers will be able
to participate and the bowl with the most votes can be published on the menu.
Price:
When consumers become more discerning with their discretionary dollars, they
sought to spend them on healthier but still relatively inexpensive restaurant options.
Sales at these franchises are strongest at lunch and have nearly the same share of
lunch customers as casual dining.[3] Consumers are seeking fast, healthy options, and
often cannot find it in our fast food nation. According to our survey, 46% of people(15
from survey A, 14 from survey B) are not willing to spend more than $10 for lunch which
puts Eatsa on a good pricing position at $6.95. Giving customers the opportunity of
adding vegetarian meat can yield to more cost for certain customers. In order to keep
the average price low, we suggest on introducing vegetarian meat as a customization.
This will help retain almost half of our customers (47%) by giving them more choices
without impacting our standardized product line.
Place:
Base on the survey result and our own observation, the line at Eatsa was very
long(more than 20 people) during the peak hour (11:30-1:00). Even though Eatsa
promised less than 8 minutes waiting time, the line still could be intimidating and drove
potential customers away. Moreover, Eatsa was not located on a striking point, it took us
a while to find the restaurant. According to survey B, 90.3% people living and working
nearby Eatsa claimed that they have never heard about or been to Eatsa. Therefore,
Eatsa should focus its attention on attracting more customers.
9
13. We recommend Eatsa to expend more restaurants in order to increase the ac-
cessibility, to decrease the waiting time and to raise customer awareness. We will show
our calculation and logic flow below (Exhibit 6). We have calculated Eatsa’s current
market share within Financial district, which is only 2.15%. Base on our competitor
study, we found that one of our competitor Chipotle has three stores in financial district
which proves that there is customer demand in restaurants like Eatsa. This data sug-
gests that Eatsa could expand two more stores, one in 2017 and one in 2018, which will
provide better accessibility and decrease the waiting time even further. According to the
unit growth of the fast casual restaurant sector in 2014, fast casual restaurant market
has a growth rate of 14.3%.[9] After expanding the branch store in Financial District in
2017 and 2018 respectively, we could estimate that within the samearea, Easta could
have a market share of 4.41% and 6.95% in 2017 and 2018 respectively. What we want
to highlight is that Eatsa develops a more efficient working process which gives them an
advantage in having a higher market penetration.
Financial Projection:
Eatsa is a newly opened restaurant, unfortunately, there are no financial state-
ments that we could provide. However, we actually went to the store around 5:00 pm,
which is the time the store usually closed. The last bowl they sold was number 853, so
we assume Eatsa sold 853 bowls based on the single-purchase assumption. The price
of every favor is firm, $6.95, and we assume the cost of a bowl is $3. Hence, we roughly
estimate Eatsa at $1,541,371 as revenue, $665,340 as cost of goods sold, and
$876,031 as gross profit in 2016.
10
14. Since Eatsa is too new to the market with limited information, we decide to find
the financial statement from a similar fast casual restaurant Kababayan as reference.
This restaurant has the similar food price to Eatsa (both has one $ sign for $10 and be-
low on Yelp), and they located in the same area - Financial District. Base on
Kababayan’s common size financial statement, they spend 2.3% of sales on advertising
cost[11]. We searched Eatsa and Kababayan on Google News to find out how many
news or blogs they published, and obtain the results of 22,000 and 4,050, respectively
in a past year. Therefore, we believe that Eatsa spent 5.43 times on Kababayan’s ad-
vertising and promotion expense - 2.2% of revenue. Eatsa spent about 12% of sales in
advertising and promotion expense, which is $184,132. Because it’s in introduction
stage of product life cycle, they will need to spend mass advertisement in the first year.
In the following two years, the lower amount of advertising can switch to promotion ex-
pense such as loyalty system or referral system.
Eatsa is currently operating a loss of $1,795 for its first fiscal year. However, Eat-
sa will yield a profit of $231,596 in 2017 by the marketing penetration schedule by open-
ing a branch for the Financial District. In 2018, we anticipate Eatsa could keep doing
market penetration, open second branch in Financial District, with a profit of $526,763
within a fiscal year.
11
15. Exhibit 1. Within 0.7 miles radius (small circle) and 3 miles radius (large circle) around
Eatsa
21. Exhibit 6. Calculation on Projected Profit
• According to “Unit Growth of the Fast Casual Restaurant”[9], the market size is
growing 14% a year.
• Assume in 2017, Eatsa will have 2 stores. Market share = [(sales/day x 5
days) x 1.14(growth rate)] / (2016 market size) x 1.14(growth rate)
• The market share of 2018 follows the same calculation procedure as 2017.
• Revenue = $6.95/bowl x 853bowls/day x 260 days (2017 and 2018 is following
with 14% growth rate)
• COGS = $3/bowlx 853bowls[11]/day x 260days (Since the Burrito bowl is the
most popular favor based on our survey(Exhibit 7 - Survey A), we calculated the cost
of ingredients based on the recipe[11] and derived $3 per bowl. Because the price is
firmly at $6.95 for every favors they provided, we assume that the cost is also stan-
dardized in every favors.)
• Advertising&Promotion expense = 22000/4050(multiple of google results) x
2.2%(Advertising&Promotion expense of Kababayan’s sales) x Revenue
• All the other operating expenses are refer to “Restaurant expenses as a share
of gross margin”[8], and the total operating expense would be $877,826. Since Eatsa
has low cost in labor but high cost in utility expense, we assume that their sales,
wages and benefits cut down to half and utilities expense doubles.
23. Survey A : targets the customers who went to Eatsa (30 people)
Survey B: target the customer who did not go in to Eatsa but went by (31 people)
24. References
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Serve Quinoa. Retrieved February 10, 2016, from http://techcrunch.com/2015/08/31/eat-
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ii. Steinmetz, K. (2015, September 4). Hate People? Love Quinoa? Your Dream Restaurant
Just Opened. Retrieved February 10, 2016, from http://time.com/4022130/eatsa-san-
francisco/
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2016, from http://www.statista.com/study/21812/eating-out-behavior-in-the-us-statista-
dossier/
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nation-despite-recession-americans-eat-whopping-250-restaurant-meals-per-year-says-
livingsocial-dining-survey-129868323.html
viii. FranchiseHelp. (n.d.). Fast Casual Industry Analysis 2016 - Cost & Trends. Retrieved
February 10, 2016, from https://www.franchisehelp.com/industry-reports/fast-casual-in-
dustry-report/
ix. Statista. (2014). Unit Growth of the Fast Casual Restaurant Sector in the US. Retrieved
March 12, 2016, from http://www.statista.com.libproxy.scu.edu/statistics/420760/unit-
growth-of-fast-casual-restaurant-sector-by-category-us/
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tryId=2003
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2016, from http://www.project-sunny.com/blog/diy-healthy-burrito-bowl