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The Chinese University of Hong Kong
2014 – 2015 Term 2
Competitive Analysis of Lei Garden and
Honeymoon Dessert
ELTU 3012 BIC 1: Business CommunicationII
Lecturer: Miss Chung Hui Yan
LIST OF GROUP MEMBER
Brandy WANG Yuqi (1155031779)
Mark LO Ka Fai (1155034238)
Matt SIU Chin To (1155033678)
Nana TANG Chin Man (1155034703)
Wing LAU Wing Yan (1155033838)
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Competitive Analysis of Lei Garden and
Honeymoon Dessert
Executive Summary
Currently, the restaurants in the Hong Kong International Airport ("HKIA") are proven to be
inadequate in satisfying the demand from travelers who are looking for a mid- or high-level, sit
down Hong Kong Cantonese restaurant. Lei Garden and Honeymoon Dessert, with their
representativeness in Hong Kong Cantonese cuisines, financial ability in operating in the
HKIA, and branches management skills, have been chosen as our candidates for comparison.
This report analyses the two shortlisted candidates in terms of (1) differentiation points, (2) food
and services quality, (3) reputation and (4) interior design and atmosphere. The importance of the
selection criteria will be reflected according to their presenting order.
Differentiation points
Market positioning, takeaway products, representativeness in Hong Kong style and competitors in
the HKIA are the four major assessment areas. Both restaurants are equally competitive in market
positioning and representativeness in Hong Kong. Lei Garden is a specialist in Dim Sum offering
exceptional Cantonese cuisine and seasonal packaged products to customers. In contrast,
Honeymoon Dessert represents a casual lifestyle and provides great varieties in traditional and fusion
homemade desserts. Lei Garden, however, gets a higher score by providing more takeaway choices
and being the only high-end Cantonese fine dining place in the HKIA.
Food and service quality
Food quality is assessed by the taste of food and healthiness of the food, while service quality
is evaluated by the variety of services provided and the employee services. With more awards
obtained from various sources, more personalized services provided, and better services offered
by the employee, Lei Garden is considered as more outstanding under this selection criterion.
Reputation
This part mainly focuses on their achievement in awards, coverage and news of the restaurants. Lei
Garden is slightly better in terms of the awards achievement-several restaurants of the Group have
been awarded Michelin One Star, which is proved to have a great dining experience in the
restaurant. The coverage of Lei Garden, however, much less than that of Honeymoon
Dessert. Besides, Lei Garden was accused of deducting employees’ wages illegally two months
ago. Honeymoon would thus be a more preferable restaurant under this selection criterion.
Interior design and atmosphere
It is important to provide a comfortable and private environment. The theme of interior design
and the dining experience provided by the two restaurants would be assessed. By providing a
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more spacious ambience and higher privacy protection, Lei Garden surpasses
Honeymoon Dessert without a doubt.
Lei Garden is our preferred candidate to operate in the HKIA
After balancing all the factors, Lei Garden is more suitable to operate in the HKIA. Although
Lei Garden got a lower score in reputation, it has a better results in other three areas, which
makes Lei Garden able to achieve a higher score in general. The Cantonese dim sum specialist,
with their high standard in services provided, is considered to be the right match for customers
who demand for a high-end, sit-down Hong Kong Cantonese restaurant and genuine Hong Kong
food style. With Lei Garden’s joining, we believe that it can enrich the airport’s food choices
and satisfy travelers’ need to secure the HKIA as the world’s best dining airport
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Table of Contents
1. Introduction ………………………………………………………………… P.5
2. Selection Criteria Analysis………………………………….……………… P.5
2.1 Differentiation Points………………………………………….………. P.6 - 8
2.2 Food and Services Quality………………………….………………….. P. 8 - 10
2.3 Reputation……………………………………….…………………….. P. 10 - 11
2.4 Interior Design and Atmosphere………………………………………. P. 11 - 12
3. Conclusion………………………………………….…………………………. P. 12 -13
References…………………………………..………………………………….… P.14
Appendices…………………………………………….………………………… P.15 - 16
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1. Introduction (Wing)
Hong Kong International Airport (“HKIA”) is one of the world’s busiest passenger airports with
a record of 63.3 million usage in 2014 (Airport Authority Hong Kong, 2015). To cater to our
travelers’ tastes and preferences, approximately 60 restaurants are ready to offer an excellent
dining experience to travelers. Recent traveler surveys show that people would like to have more
mid-or high-level, sit-down Hong Kong Cantonese restaurants. Currently, we have 34 sit-down
restaurants with only 6 of them featuring Hong Kong style cuisine. (Appendix 1)
Before shortlisting candidates to operate in the HKIA, we have to identify representative Hong
Kong cuisines. Hong Kong is a well-known Gourmet Paradise. The Hong Kong Tourism Board
recommends some dishes to the visitors. Examples of food listing on the must-try list include dim
sum, fusions, desserts and Dai Pai Dong (Hong Kong Tourism Board, n.d.). To be shortlisted,
therefore, the restaurants have to provide food as recommended by the board and be highly
recognized as a part of Hong Kong’s signature food.
Lei Garden and Honeymoon Dessert are two shortlisted representative Cantonese restaurants,
which are strong financially and experienced in managing branches. “Yum Cha” and “Hong Kong
style dessert” are the major categories of the Hong Kong dining culture. Both restaurants are
leaders of what they are specialized in. They are financially eligible to operate in the HKIA.
According to Mr. Chan Shu Kit, the founder, chairman and CEO of the Lei Garden Restaurant
Group, the restaurant earns 80 to 100 million every year (Yeung, 2010). Honeymoon Dessert,
though earning less than Lei Garden, still securin土 a profit of over 10 million per year (Chan &
Li, 2013). They have the knowledge in managing branches. Lei Garden has 24 branches in Hong
Kong, Macau, Mainland China and Singapore. Honeymoon Dessert has more than 380 branches
operating in similar places with Lei Garden and 97% of the branches are located in China region.
To select the most suitable restaurant to operate in the HKIA, our team will compare the two
restaurants in the following four aspects. They are differentiation points, food and services quality,
reputation as well as interior design and atmosphere.
2. Selection Criteria Analysis (Wing)
The weightings of differentiation points, food and services quality, reputation as well as interior
design and atmosphere are 40%, 30%, 20% and 10% respectively.
2.1 Differentiation Points (40%) (Brandy)
Product differentiation is a marketing strategy that businesses use to distinguish a product from
similar offerings on the market. The differentiation points must target a segment of the market and
deliver the message that the product is positively different from all other similar products
available. Differentiation points could create perceived value and brand equity among consumers
and potential customers.
Below we assessed the differentiation points of the two restaurants in four aspects which take up
40% of the total weighing: (1) Market Positioning (20%), (2) Takeaway Products (10%), (3)
Representativeness in Hong Kong Style (5%) and (4) Competitors in HKIA (5%).
2.1.1 Market Positioning (20%)
Lei Garden is a prestigious first-class Chinese restaurant chain, offering culinary delights and
unique tasting menus developed from different parts of the world. Since its establishment in
1973, Lei Garden’s exceptional standards of gourmet experience and customer services have
earned it names as “the Shaolin of Catering” and “the celebrities’ diner” (Lei Garden, n.d.). Lei
Garden put the satisfaction and well-being of customers at the top priority in their company culture.
Compared to Lei Garden, Honeymoon Dessert represents a more casual lifestyle by specializing
in handmade desserts. Branding themselves as “Handmade for Happiness” (Honeymoon Dessert,
n.d.), Honeymoon Dessert promises to use only the finest seasonal ingredients and sophisticated
cooking methods before presenting the desserts with all their heart.
Both Lei Garden and Honeymoon Dessert have their distinct differentiation points in products and
service which are well matched and cannot be overshadowed by the other. Therefore we address
18 marks to both companies in this category.
2.1.2 Takeaways Products (10%)
Besides on-site dining, Lei Garden also provides options of seasonal and packaged Chinese food
products and sauces. Catering to different seasonal occasions, it produces a wide variety of
traditional Chinese festival food products, including Chinese puddings, glutinous rice dumplings
and moon cakes. Moreover, with the upcoming inauguration of the new Tai Po factory, Lei Garden
group will aim to develop more stores and expand their sales network, with a promise of bringing
more quality products to a wider customer base. Lei Garden also has introduced to the market a
variety of sauces, snacks and preserved products. The signature XO sauce, in particular, was
originally pioneered by Lei Garden and continues to remain a favourite among their supporters
(Lei Garden, n.d.).
To serve the needs of different customers, Lei Garden Restaurant Group is now focusing
specifically on packaged food products, one example of which is their renowned double-boiled
soups. The Group is actively researching new products including packaged dim sum, bread and
soups, and would commence production once the Tai Po Factory is in operation (Lei Garden, n.d.).
Similar to Lei Garden, Honeymoon also provides take-away dishes but it would focus on
improving on-flight dining experience. Noted the source of income of an airport mainly relies on
airline companies, which is the major customers for airport business (Jimenez, 2015), improving
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travelers’ on-flight experience is predicted to increase the satisfaction rate towards the airline
companies, therefore benefit to our competitiveness among other airports in airline business share.
We may draw from the comparison that Lei Garden provides wide variety of takeaway choices
and has more developing potential with the upcoming inauguration of the new Tai Po factory,
therefore Lei Garden gets 9 out of 10 marks and Honeymoon Dessert gets 7 in this category.
2.1.3 Representativeness in Hong Kong Style (5%)
Lei Garden differentiates with typical Hong Kong style Dim Sum, which is delicious and
nutritious, with carefully-selected ingredients and special Chinese cooking methods. Among many
online platforms of tourist sharing, suggestions and ratings, for example Virtual Tourist, Dim Sum
is among the most popular dishes in the Hong Kong must-try list (Hong Kong Tourism Board,
n.d.), especially in English websites and guidebooks for foreign tourists.
Honeymoon’s exclusive chain of dessert stores offers more than 160 styles of hot and old dessert
from traditional Guangdong sweet soups to modern fusion treats. (Honeymoon Dessert, n.d.) It is
a mixed style of both tradition and modern, as well as Chinese and Western, which appeals to the
destination image or branding of Hong Kong as “Asia’s World City” by the Hong Kong Tourism
Board (Hong Kong Tourism Board, n.d.). Therefore, Honeymoon Dessert exceeds Lei Garden by
its wide variety and in the representativeness of Hong Kong style.
Both Lei Garden and Honeymoon Dessert are in typical Hong Kong style. Either one that selected
could fulfill our criteria of the representing Hong Kong style. Therefore we address 5 marks to
both companies in this category.
2.1.4 Competitors in the HKIA (5%)
A product differentiation strategy that focuses on the quality and design of the product may create
the perception that there's no substitute available on the market. Although competitors may have
a similar product, the differentiation strategy focuses on the quality or design differences that other
products don't have. In HKIA there currently exists no direct competitor for Lei Garden in the
upper class Chinese fining dining, while Honeymoon Dessert has the Hui Lau Shan Healthy
Dessert as its direct competitor serving mango-based dessert (Hong Kong International Airport,
n.d.). In this category Lei Garden gets 5 marks while Honeymoon Dessert gets 2.
2.1.5 Lei Garden Differentiates Better than Honeymoon Dessert (37 VS 32 out of 40)
In the above analysis and comparison we found that both Lei Garden and Honeymoon Dessert
have their distinct differentiation points in products and service; both of them well represent Hong
Kong, which are well matched and cannot be overshadowed by the other.
While Lei Garden differentiates better than Honeymoon Dessert in the variety of takeaway choices
and developing potential, as well as competitiveness with no direct competitor in HKIA.
Out of 40 marks, Lei Garden and Honeymoon Dessert has a total mark of 37 and 32 respectively.
Therefore, Lei Garden differentiates better than Honeymoon Dessert.
2.2 Food and Services Quality Analysis (30%) (Matt)
Service quality is just as important as food quality for a restaurant targeting middle to high-end
customers (Kim & Chung, 2010). Thus, both aspects should be put into consideration and take up
equal marks (i.e. 15% each).
2.2,1 Food quality (15%)
Food quality consists of various factors, of which the taste of the food and the healthiness of the
food are the two most important ones (Kim & Chung, 2010; Tinne, 2012). According to a survey,
customers ranks the taste of the food as their primary consideration when evaluating food quality,
followed by the healthiness of the food. Therefore, 10% out of 15% would be allocated to the taste
of the food aspect and the remaining 5% to the healthiness of the food.
2.2.1.1 Taste of the food (10%)
Lei Garden has been awarded with various prices both internationally and locally recognizing its
fabulous taste of food, including the "Best of the Best 2013" Chinese Restaurant Award by Hong
Kong Capital Magazine (Lei Garden, 2015). It was also recommended by the famous TV cooking
programme host, Susie Wong and by several restaurants guide books. Moreover, Lei Garden was
said to be one of the best twelves Chinese restaurants in Hong Kong (Ladyironchef, 2015). Photos
of food provided by Lei Garden can be found in Appendix 2.
Honeymoon Dessert despite being recommended by several restaurants guide books, has neither
won any internationally recognized awards, nor being recommended by any food critics. Photos
of food provided by Honeymoon Dessert can be found in Appendix 3.
With the above factors put into consideration, Lei Garden scores an 8 out of 10. On the contrary,
recommended only by restaurants guide books, Honeymoon Dessert scores 6 out of 10.
2.2.1.2 Healthiness of the food (5%)
Lei Garden has set up its own farm, namely “farmorrow”, to supply itself with organic and
chemical free produce and meat. The total area of the farm is 300 acres and has an annual output
of 10,000 high-quality pigs, 100,000 premium broilers and 300,000 eggs. The use of bio-chemicals
including fertilizers or antibiotics are minimized in the farm so as to eliminate chemical
components affecting the taste (Lei Garden, 2015).
In research and development, Lei Garden Restaurant Group collaborates with top universities and
agricultural experts to investigate into the source techniques of planting and breeding. The research
focuses on how to maximize the nutritional quality and the genuine taste of the food (Lei Garden,
2015).
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Honeymoon has a 10 thousand square feet kitchen and fruit room to keep its ingredients fresh. All
the products are checked for freshness, quality, cleanliness and authenticity by the Quality Control
staff before being delivered to the restaurant (Honeymoon Dessert, 2015)
It is convinced that both restaurants are dedicated to providing customers with the freshest and the
most nutritious ingredients. Lei Garden however has done further than that by investing into
research and development, which is believed to yield positive and long-term outcomes in the
future. Therefore, Lei Garden scores a 4.5 out of 5 while Honeymoon Dessert scores a 3.5.
2.2.2 Service quality (15%)
Two factors determine a restaurant’s service quality. They are variety of services provided and
employee services (Tinne, 2012). Customers consider variety of services provided as slightly more
important than the employee services, which they engage after they decided to dine in (Schaefer
& Kent, 1999).
2.2.2.1 Variety of Services Provided (8%)
Apart from the basic services that every restaurant ought to provide, Lei Garden provides some
other exceptional services. Every Lei Garden restaurant has at least one washroom for each gender
of its customers, Lei Garden also allows customers to reserve tables through calls (Lei Garden,
2015). As customers in the international airport are mainly tourists or flight passengers who tend
to have a fixed schedule and limited time, the reservation service can be vital (Brown, 2007).
Moreover, customers are able to customize their dishes in Lei Garden by adding, replacing or
removing certain ingredients in a dish. For example, a person who does not eat beef, can have the
restaurant replace that with pork or chicken in a beef fried rice. This flexibility can attract tourists
and customers with different religious and custom background.
Honeymoon Dessert provides all the basic services. Honeymoon Dessert also provides delivery
services that customers can order desserts online or via its hotline. While none of Honeymoon
Dessert restaurant has any washrooms, customers need to search for toilets near the restaurant.
The various services that Lei Garden provides deserves a high score. Therefore, Lei Garden scored
7.5 out of 8 in this aspect. On the contrary, Honeymoon Dessert providing only basic services, as
well as a delivery service which is not necessarily useful in the HKIA, has done fair in this aspect.
Thus, a 5 out of 8 marks is given to Honeymoon Dessert.
2.2.2.2 Employee Services (7%)
According to the popular online dining guide, Open Rice, Lei Garden attained an average of 3.5
marks out of 5 marks in services. Another website TripAdvisor gives the same result. In Lei
Garden, one staff is approximately be responsible for only 5 tables, so that customers are can enjoy
superior employees services. Furthermore, Lei Garden has strict control of employees’
manner. When found to be rude or impolite, an employee faces up to $100 fine. A services
evaluation form is placed on each table for the customers to give feedbacks. Even the famous
newspaper in overseas, CNN, has stated that ‘… Lei Garden also stands out for warm service. It
is rumored the wait staff are trained more vigorously and compensated more handsomely than at
any other Cantonese restaurant chain in town’ (Li, 2011).
Same as Lei Garden, Honeymoon Dessert also attained an average of 3.5 marks out of 5 marks in
both Open Rice and Trip Advisor. A staff in Honeymoon Dessert, however, has to handle up to
10 tables. Also, there is no strict policy to manage employees’ attitude and behaviors.
Although both of them have the same mark in the two abovementioned websites, Lei Garden’s
staff is believed to be taking better care of the customers with its lower staff-table ratio and stricter
policies. Lei Garden thus obtained a score of 6 out of 7 with Honeymoon Dessert scoring a 5 out
of 7.
2.2.3 Lei Garden Prevails
Out of 30 marks, Lei Garden and Honeymoon Dessert has a total mark of 26 and 19.5 respectively.
Therefore, Lei Garden would be more preferable in operating in the HKIA as long as food and
services quality is concerned.
2.3 Reputation (20%) (Nana)
The reputation of a company can be defined as the influence of its decisions on various
stakeholders and the perception of the public (Harrison, 2013). The excess demand of customers
in the HKIA are looking for mid- to high- level restaurants, they would attach great importance on
the ethical standard and reputation of the organization in addition to the standards of food and
services.
The HKIA has been recognized as the best dining airport in the world for five years with reference
to the Skytrax survey. The reputation factor of the restaurant selected is therefore should not be
underestimated in contributing to the final decision. The prestige of the restaurant located in the
airport would contribute to the overall credibility. Consequently, the image of the airport would
be affected accordingly.
To assess the reputation of the two restaurants, we could investigate it in three aspects: (1) awards
and recognition (10%) and (2) coverage (5%) and (3) news and media (5%).
2.3.1 Awards and recognition (10%)
Lei Garden has won the The MICHELIN Guide Hong Kong Macau 2015 One Star for its
consecutive seventh year in its six different branches, including its branches located in North Point,
Mong Kok, Kowloon Bay, Shatin, Wan Chai, and IFC. In addition to the restaurant reference guide
recommendation, Lei Garden has been awarded ‘Best of the best Chinese
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restaurant 2014’ by Hong Kong U-magazine and ‘My Best Restaurant Award’ by the Hong
Kong Capital Magazine in 2014 (Lei Garden, n.d.).
For Honeymoon Dessert, it is being highly recommended in many travel books and foreign
websites like the Travel tips and Travel advisors (2014), Honeymoon Dessert’s reputation is
established and accumulated. The online awards obtained from Hong Kong Openrice (2015) has
also further proved the quality of the restaurant. Honeymoon Dessert is a preferred restaurant in
the public’s perception.
Hence, Lei Garden earned ten scores and Honeymoon Dessert gained seven scores out of ten due
to the acceptability and familiarity of the awards in the public.
2.3.2 Coverage (5%)
In total, there are twenty stores of Lei Garden scatter in the map of Asian area. The distribution of
its branches are ten branches in Hong Kong, eight branches in Mainland China, one store in
Singapore and one store in Macau.
For Honeymoon Dessert, the coverage rate is higher when compared to Lei Garden. Honeymoon
Dessert owns more than 300 branches in the Asia region including the ones in Hong Kong,
Indonesia, Singapore, Beijing and Macau (Honeymoon Dessert, n.d.). The accessibility of the
stores is higher so people in other countries would have confidence in the brand and customers
have fundamental knowledge of the shop.
Honeymoon Dessert is being recognized as a credible brand in serving traditional and fusion
desserts of a wide variety, its stable performance help it to gain the confidence and popularity from
the public. Lei Garden operates in a greater scale and the location covering is similar with a smaller
number, it contributes to the result that Lei Garden gained four marks and Honeymoon Dessert is
given five marks out of five.
2.3.3 News and media (5%)
The reputation of Lei Garden has been negatively affected due to the outbreak of news revealing
that the managers in Lei Garden had issued a harsh fining system to the front line workers in
February of 2015. For instance, if the staff stretched or played around, they would be fined up to
$100. This was considered as an illegal deduction of wages and a breach of Employment
Ordinance, so the public has raised doubt over the practice of its social corporate responsibility
towards the workers.
The small scale of Honeymoon Dessert did not assist it to win international prizes, but with
creativity in menu and seasonal fruit themes in dessert, newspapers and magazines published the
introduction of the choice of fusion and traditional desserts in the special topics page in the Central
News Agency webpage (2015).
The reputation of Lei Garden has been negatively affected by the inequality issue in its branches
while Honeymoon Dessert is being positively reported and interviewed. As a result, Lei Garden
gained three marks out of five while Honeymoon Dessert earned 4 marks.
2.3.4 The overall performance of Lei Garden outperforms Honeymoon Dessert
After investigating into the three aspects concerning reputation, coverage rate and the media
coverage, Lei Garden scored 17 out of 20 and Honeymoon Dessert scored 16 out of 20.
The performances of both restaurants are satisfying while the internationally-recognized Lei
Garden is slightly better than Honeymoon Dessert.
Though it has won awards from various publications and been recognized by the international
MICHELIN Guide. We have to investigate the influence after the court decision and observe
whether the actions and reputation management of Lei Garden would settle the case and maintain
its credibility.
2.4 Interior Designand Atmosphere (10%) (Mark)
2.4.1 Theme (5%)
For Honeymoon Dessert, bright yellow is the united color tone of all of its branches. The wall and
the utensils are decorated with the five mascots of the brand, “Dessert Monsters”, which represent
the main raw materials of the dessert, mango, kiwi fruit, red bean, durian and pineapple. Together
with the wooden like furniture and dark brown sofa and seats, all these elements create a young
and modern feeling for the customers to dine in. For Lei Garden, the interior is well designed to
combine the element of traditional Chinese restaurant with natural color tone. Not only could the
customers see the bright white lighting throughout the inner area, but also the wooden wall and
plant-like decorations placing on different walls or tables. It is a classy and magnificent atmosphere
the restaurant creates. Both restaurants score 5/5 in this category because of their brands’ unique
theme.
Dining Experience (5%)
The small and packed seat as well as the high turnover rate of every table in Honeymoon Dessert
could only leave a bad impression, if not destroy it, for the customer. It is more like rushing for
dining instead of enjoying leisure time with friends. Besides, sharing table with others mean that
customers cannot rest assured of privacy, while privacy is one of the greatest issues customers
concerned with. In contrast, the high ceiling of Lei Garden creates a spacious ambience, where
you would feel comfortable with. Cozy booth could also be provided for separating the customers
from the crowd. The on-site experience Lei Garden gives their customers is without compare. In
this aspect, Honeymoon Dessert scores 1/5 and Lei Garden scores 4/5.
2.4.3 Lei Garden prevails
For a restaurant locating in the HKIA, the prime concern of our management team would be
whether it can cater for different customers all over the world. For the interior design, Lei
Garden prevails in terms of sense of space, while Honeymoon Dessert’s crowded inner design
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could not be everyone’s favorite. Alongside with this, privacy is another critical factor for a
customer to choose a dining place. In this aspect, Lei Garden, which provides separated table and
booth seat could ensure private conversation in every table of customers to a great extent. To
conclude, Lei Garden would be more preferable to be invited in terms of interior design and
atmosphere as the total score of Lei Garden is 9/10 while Honeymoon Dessert has 6/10.
3. Conclusion (Wing)
Lei Garden and Honeymoon Dessert represent two distinctive culinary experience under the
vibrant Hong Kong food culture. One is a typical high level dim sum restaurant representing the
“Yum Cha” culture while the other one is a modern mid-level dessert shop offering desserts varied
from traditional Canto-desserts to Hong Kong fusions. Through the comparison in differentiation
points, food and services quality, reputation as well as interior design and atmosphere, Lei Garden
has surpassed Honeymoon Dessert in the above selection criteria analysis except for the unsettled
reputation scandal making its score in reputation lower than Honeymoon Dessert. Lei Garden has
gained 89 out of 100 of the weighting, which is 15.5 marks more than Honeymoon Dessert, we
conclude that Lei Garden is more suitable to operate in the
HKIA. We believe that Lei Garden could satisfy our travelers’ demand by providing an exclusive
“Yum Cha” experience and be financially strong enough to operate in the HKIA in the long run.
With the introduction of Lei Garden, food choices in the HKIA can be enriched and thus securing
the name of “Best dining Airport”.
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Appendix 1: All sit-down restaurants in the HKIA
(Hong Kong Style restaurants are highlighted in bold)
Types Name of restaurant
Chen Fu Ji
Misocool
ITACHO SUSHI
Pak Loh Chiu Chow Restaurant
Asian Restaurants
SORABOL
Itamae Sushi
Thai Chiu
Viet's Choice
Pak Loh Chiu Chow Restaurant
Tsui Wah Eatery
Chao Inn
Chinese Kitchen
Crystal Jade La Mian Xiao Long Bao
Chinese Restaurants/ Hong Kong Style Coffee shops Jade Garden
Taiwan Beef Noodle
Window Cafe
Hung's Delicacies (Michelin Star Award)
HONG KONG DELIGHTS
MACAO HARBOUR RESTAURANT
Dessert Shops Hui Lau Shan
Delifrance
Fast food, Food Courts Mcdonald's
Super Super Congee and Noodles
ITACHO SUSHI
Café Deco
Western Restaurants, Bars, Coffee & Cafes
The Spaghetti house
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The Peak Lookout
Grappa's
Caviar House & Prunier Seafood Bar
Le Grand Pokka Café
Moon Bar
Pacific Coffee Company
PizzaExpress
(Source: HKIA Website)
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Appendix 2: Photos of food provided by Lei Garden
Steamed buns
Steamed buns
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6
Rice noodle roll
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7
Cust
omi
zed
frie
d
noo
dles
with
pork
(ori
gina
lly
with
beef
)
Appendix 2: Photos of food provided by Honeymoon Dessert
(from: www.jiafajiafa.com)
(Source: www.ipeen.com.tw)
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R
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K
o
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g
.
(
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.
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.
)
.
O
u
r
B
u
s
i
ness. Retrieved April 4, 2015, from
http://www.hongkongairport.com/eng/business/about-the-airport/welcome.html
Chan,Y. & Li, M. (2013, May 27).Chinese CEO Founder of Honeymoon Dessert: Doing
business is like dating “You can get married if there is one man love you”. Ming
Pao Finance. Retrieved from
http://www.mpfinance.com/htm/finance/20130527/columnist/ekz_ekza1.htm
Kim, H. (2015). Why a good corporate reputation is important to your organization.
(n.d.). Retrieved April 6, 2015, from
http://www.cuttingedgepr.com/articles/corprep_important.asp
Honeymoon Dessert (n.d.). Home. Retrieved April 22, 2015, from http://www.honeymoon-
dessert.com/en/
Hong Kong International Airport (n.d.). Shopping, Dining and Entertainment. Retrieved April 22,
2015, from http://www.hongkongairport.com/eng/shopping/dining/all/dining.html
Hong Kong Tourism Board (n.d.). What to Eat. Retrieved April 4, 2015, from
http://www.discoverhongkong.com/us/dine-drink/what-to-eat/index.jsp
Jimenez, E. (2015) Airport Competition: Where Do We Stand? Research from Aviation Platform.
Retrieved from http://www.aviationplatform.com/index.php/research/93-airport-
competition-where-do-we-stand
Kim, S., & Chung, J. (2011). Restaurant Selection Criteria: Understanding the Roles of
Restaurant Type and Customers’ Sociodemographic Characteristics. 16th
Graduate Students Research Conference.
Ladyironchef (2015, Feb 15). HONG KONG’S TOP 12 DIM SUM RESTAURANTS THAT
OFFER THE QUINTESSENTIAL DIM SUM EXPERIENCE. Retrieved from
http://www.ladyironchef.com/2015/02/hong-kong-best-dim-sum-restaurants/
Lei Garden. (n.d.). Lei Garden. Retrieved April 6, 2015, from http://www.leigarden.hk/en/
Li, Z. (2011, October 3). The best Hong Kong dim sum. Retrieved April 22, 2015, from
http://travel.cnn.com/hong-kong/eat/best-hong-kong-dim-sum-restaurants-674709
Schaefer, A., Crafts, D., & Kent, J. (1999). Relative Importance of Distributor Selection Criteria
to Independent Restaurant Operators. Journal of Restaurant & Foodservice Marketing,
5-18.
Brown, D. (2007). The restaurant manager's handbook: How to set up, operate, and manage a
financially successful food service operation (4th rev. ed.). Ocala, FL: Atlantic Pub.
Group.
Tinne, W. (2012). Factors Affecting Selection of Upscale Restaurants in Dhaka City.
ASA University Review, 6(1), 127-138.
Yeung, H. Y. (2010). Food Mad Man Chan Shu Kit proudly presents the Michelin Star restaurant.
CAPITAL Entrepreneur. Retrieved from
http://www.capitalentrepreneur.com/common_emag/view_content.php?issue_no=064&
pub_id=23&top_id=153&art_id=102459
CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate]
20
Submission Details
Student Name LAU, Wing Yan (1155033838)
Year and Term 2014-2015 Term 2
Course ELTU-3012-BIC1 Business CommunicationII
Assignment Marker MISS CHUNG Hiu Yui
Submitted File Name 3012BI_LAU Wing Yan_Wing(1).doc
Submission Type Group
Assignment Number 1 Due Date (provided by student) 2015-04-22
Submission Reference Number 1253575 Submission Time 2015-04 -22 23:17:3 0
Agreementand Declaration on Student's Work Submitted to VeriGuide
VeriGuideis intended to help the University to assure that works submittedby students as part of course requirement are ori ginal,and thatstudents receive the proper
recognition and grades for doingso. The student,in submitting his/her work ("this Work") to VeriGuide, warrants that he/sheis the lawful owner of the copyrightof this
Work. The student hereby grants a worldwide irrevocable non-exclusive perpetual licencein respect of the copyright in this Work to the University. The Universi ty will
use this Work for the followingpurposes.
(a) Checking that this Work is original
The University needs to establish with reasonable confidence that this Work is original, before this Work can be marked or graded. For this purpose, VeriGuide will
produce comparison reports showing any apparent similarities betweenthis Work and other works, in order to providedatafor teachers to decide, in the context of the
particular subjects, course and assignment. However, any such reports that show the author’s identity will only be made available to teachers, administrators and
relevant committees in the University with alegitimateresponsibility for marking,grading, examining, degreeandother awards,quality assurance,andwhere necessary,
for student discipline.
(b) Anonymous archive for referencein checkingthat future works submittedby other students of theUniversity are original
The University will store this Work anonymously in an archive, to serve as one of the bases for comparison with future works submitted by other students of the
University, in order to establish that thelatter are original. For this purpose, every effort will bemade to ensure this Wo rk will be storedina manner that wouldnot reveal
the author’s identity, and thatin exhibitingany comparisonwith other work, only relevant sentences/ parts of this Work with apparent similarities will be cited. In order
to help the University to achieve anonymity, this Work submitted shouldnot contain any reference to the student’s name or identity except in designated places on the
front page of this Work (which will allow this informationto be removed before archival).
(c) Research and statistical reports
The University will also use thematerial for research on themethodology of textual comparisons and evaluations, on teaching and learning, and for the compilation
of statistical reports. For this purpose, only the anonymously archived material will be used, so that student identity is no t revealed.
I confirm that the above submissiondetails are correct. I am submittingthe assignment for:
[ X ] a group project on behalf of all members of the group. It is hereby confirmed thatthe submission is authorized by all members of the group, and all members
of the group are required to signthis declaration.
We have read the above andin submittingthis Work fully agree to all theterms. We declare that: (i) the assignment here sub mitted is original except for source
material explicitly acknowledged; (ii) the piece of work, or a part of the piece of work has not been submittedfor more thanone purpose (e.g. to satisfy the requirements
in two different courses) without declaration; and (iii) the submitted soft copy with details listed inthe <SubmissionDetai ls> is identical to the hard copy(ies), ifany,
which has(have) been / is(are) going to be submitted. We also acknowledge thatwe are aware of University policy and regulations onhonesty in academic work, and of
the disciplinary guidelines andprocedures applicableto breaches of such policy andregulations, as containedin theUniversity website
http://www.cuhk.edu.hk/policy/academichonesty/. We are aware that each student is responsible and liableto disciplinary acti ons shouldthere be any plagiarized
contents/undeclaredmultiplesubmissionin thegroup project,irrespectiveof whether he/she has signed the declarationand whether he/she has contributed d irectly or
indirectly to the problematic contents.
It is also understood that assignments withouta properly signed declaration by the studentconcerned andby all members of the groupconcerned,will not begraded
by the teacher(s).
______________________________ ______________________________
Signature (LAU, Wing Yan, 1155033838) Date
Other Group Membe rs (if any):
Name(s) Student ID(s) Signature(s)
Instruction for Submitting Hard Copy / Soft Copy of the Assignment
This signed declarationstatement should be attachedto the hard copy assignment or submissionto the course teacher, according to the instructions as stipulated by
the course teacher. If you are required to submit your assignmentin soft copy only, pleaseprintout a copy ofthis signedd eclaration statementandhandit in separately
to your course teacher.
Page: 1

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ELTU3012 HK International Airport New Restaurant Choice

  • 1. The Chinese University of Hong Kong 2014 – 2015 Term 2 Competitive Analysis of Lei Garden and Honeymoon Dessert ELTU 3012 BIC 1: Business CommunicationII Lecturer: Miss Chung Hui Yan LIST OF GROUP MEMBER Brandy WANG Yuqi (1155031779) Mark LO Ka Fai (1155034238) Matt SIU Chin To (1155033678) Nana TANG Chin Man (1155034703) Wing LAU Wing Yan (1155033838)
  • 3. Executive Summary Currently, the restaurants in the Hong Kong International Airport ("HKIA") are proven to be inadequate in satisfying the demand from travelers who are looking for a mid- or high-level, sit down Hong Kong Cantonese restaurant. Lei Garden and Honeymoon Dessert, with their representativeness in Hong Kong Cantonese cuisines, financial ability in operating in the HKIA, and branches management skills, have been chosen as our candidates for comparison. This report analyses the two shortlisted candidates in terms of (1) differentiation points, (2) food and services quality, (3) reputation and (4) interior design and atmosphere. The importance of the selection criteria will be reflected according to their presenting order. Differentiation points Market positioning, takeaway products, representativeness in Hong Kong style and competitors in the HKIA are the four major assessment areas. Both restaurants are equally competitive in market positioning and representativeness in Hong Kong. Lei Garden is a specialist in Dim Sum offering exceptional Cantonese cuisine and seasonal packaged products to customers. In contrast, Honeymoon Dessert represents a casual lifestyle and provides great varieties in traditional and fusion homemade desserts. Lei Garden, however, gets a higher score by providing more takeaway choices and being the only high-end Cantonese fine dining place in the HKIA. Food and service quality Food quality is assessed by the taste of food and healthiness of the food, while service quality is evaluated by the variety of services provided and the employee services. With more awards obtained from various sources, more personalized services provided, and better services offered by the employee, Lei Garden is considered as more outstanding under this selection criterion. Reputation This part mainly focuses on their achievement in awards, coverage and news of the restaurants. Lei Garden is slightly better in terms of the awards achievement-several restaurants of the Group have been awarded Michelin One Star, which is proved to have a great dining experience in the restaurant. The coverage of Lei Garden, however, much less than that of Honeymoon Dessert. Besides, Lei Garden was accused of deducting employees’ wages illegally two months ago. Honeymoon would thus be a more preferable restaurant under this selection criterion. Interior design and atmosphere It is important to provide a comfortable and private environment. The theme of interior design and the dining experience provided by the two restaurants would be assessed. By providing a CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 2
  • 4. more spacious ambience and higher privacy protection, Lei Garden surpasses Honeymoon Dessert without a doubt. Lei Garden is our preferred candidate to operate in the HKIA After balancing all the factors, Lei Garden is more suitable to operate in the HKIA. Although Lei Garden got a lower score in reputation, it has a better results in other three areas, which makes Lei Garden able to achieve a higher score in general. The Cantonese dim sum specialist, with their high standard in services provided, is considered to be the right match for customers who demand for a high-end, sit-down Hong Kong Cantonese restaurant and genuine Hong Kong food style. With Lei Garden’s joining, we believe that it can enrich the airport’s food choices and satisfy travelers’ need to secure the HKIA as the world’s best dining airport CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 3
  • 5. Table of Contents 1. Introduction ………………………………………………………………… P.5 2. Selection Criteria Analysis………………………………….……………… P.5 2.1 Differentiation Points………………………………………….………. P.6 - 8 2.2 Food and Services Quality………………………….………………….. P. 8 - 10 2.3 Reputation……………………………………….…………………….. P. 10 - 11 2.4 Interior Design and Atmosphere………………………………………. P. 11 - 12 3. Conclusion………………………………………….…………………………. P. 12 -13 References…………………………………..………………………………….… P.14 Appendices…………………………………………….………………………… P.15 - 16 CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 4
  • 6. CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 5 1. Introduction (Wing) Hong Kong International Airport (“HKIA”) is one of the world’s busiest passenger airports with a record of 63.3 million usage in 2014 (Airport Authority Hong Kong, 2015). To cater to our travelers’ tastes and preferences, approximately 60 restaurants are ready to offer an excellent dining experience to travelers. Recent traveler surveys show that people would like to have more mid-or high-level, sit-down Hong Kong Cantonese restaurants. Currently, we have 34 sit-down restaurants with only 6 of them featuring Hong Kong style cuisine. (Appendix 1) Before shortlisting candidates to operate in the HKIA, we have to identify representative Hong Kong cuisines. Hong Kong is a well-known Gourmet Paradise. The Hong Kong Tourism Board recommends some dishes to the visitors. Examples of food listing on the must-try list include dim sum, fusions, desserts and Dai Pai Dong (Hong Kong Tourism Board, n.d.). To be shortlisted, therefore, the restaurants have to provide food as recommended by the board and be highly recognized as a part of Hong Kong’s signature food. Lei Garden and Honeymoon Dessert are two shortlisted representative Cantonese restaurants, which are strong financially and experienced in managing branches. “Yum Cha” and “Hong Kong style dessert” are the major categories of the Hong Kong dining culture. Both restaurants are leaders of what they are specialized in. They are financially eligible to operate in the HKIA. According to Mr. Chan Shu Kit, the founder, chairman and CEO of the Lei Garden Restaurant Group, the restaurant earns 80 to 100 million every year (Yeung, 2010). Honeymoon Dessert, though earning less than Lei Garden, still securin土 a profit of over 10 million per year (Chan & Li, 2013). They have the knowledge in managing branches. Lei Garden has 24 branches in Hong Kong, Macau, Mainland China and Singapore. Honeymoon Dessert has more than 380 branches operating in similar places with Lei Garden and 97% of the branches are located in China region. To select the most suitable restaurant to operate in the HKIA, our team will compare the two restaurants in the following four aspects. They are differentiation points, food and services quality, reputation as well as interior design and atmosphere. 2. Selection Criteria Analysis (Wing) The weightings of differentiation points, food and services quality, reputation as well as interior design and atmosphere are 40%, 30%, 20% and 10% respectively. 2.1 Differentiation Points (40%) (Brandy) Product differentiation is a marketing strategy that businesses use to distinguish a product from similar offerings on the market. The differentiation points must target a segment of the market and deliver the message that the product is positively different from all other similar products
  • 7. available. Differentiation points could create perceived value and brand equity among consumers and potential customers. Below we assessed the differentiation points of the two restaurants in four aspects which take up 40% of the total weighing: (1) Market Positioning (20%), (2) Takeaway Products (10%), (3) Representativeness in Hong Kong Style (5%) and (4) Competitors in HKIA (5%). 2.1.1 Market Positioning (20%) Lei Garden is a prestigious first-class Chinese restaurant chain, offering culinary delights and unique tasting menus developed from different parts of the world. Since its establishment in 1973, Lei Garden’s exceptional standards of gourmet experience and customer services have earned it names as “the Shaolin of Catering” and “the celebrities’ diner” (Lei Garden, n.d.). Lei Garden put the satisfaction and well-being of customers at the top priority in their company culture. Compared to Lei Garden, Honeymoon Dessert represents a more casual lifestyle by specializing in handmade desserts. Branding themselves as “Handmade for Happiness” (Honeymoon Dessert, n.d.), Honeymoon Dessert promises to use only the finest seasonal ingredients and sophisticated cooking methods before presenting the desserts with all their heart. Both Lei Garden and Honeymoon Dessert have their distinct differentiation points in products and service which are well matched and cannot be overshadowed by the other. Therefore we address 18 marks to both companies in this category. 2.1.2 Takeaways Products (10%) Besides on-site dining, Lei Garden also provides options of seasonal and packaged Chinese food products and sauces. Catering to different seasonal occasions, it produces a wide variety of traditional Chinese festival food products, including Chinese puddings, glutinous rice dumplings and moon cakes. Moreover, with the upcoming inauguration of the new Tai Po factory, Lei Garden group will aim to develop more stores and expand their sales network, with a promise of bringing more quality products to a wider customer base. Lei Garden also has introduced to the market a variety of sauces, snacks and preserved products. The signature XO sauce, in particular, was originally pioneered by Lei Garden and continues to remain a favourite among their supporters (Lei Garden, n.d.). To serve the needs of different customers, Lei Garden Restaurant Group is now focusing specifically on packaged food products, one example of which is their renowned double-boiled soups. The Group is actively researching new products including packaged dim sum, bread and soups, and would commence production once the Tai Po Factory is in operation (Lei Garden, n.d.). Similar to Lei Garden, Honeymoon also provides take-away dishes but it would focus on improving on-flight dining experience. Noted the source of income of an airport mainly relies on airline companies, which is the major customers for airport business (Jimenez, 2015), improving CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 6
  • 8. CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 7 travelers’ on-flight experience is predicted to increase the satisfaction rate towards the airline companies, therefore benefit to our competitiveness among other airports in airline business share. We may draw from the comparison that Lei Garden provides wide variety of takeaway choices and has more developing potential with the upcoming inauguration of the new Tai Po factory, therefore Lei Garden gets 9 out of 10 marks and Honeymoon Dessert gets 7 in this category. 2.1.3 Representativeness in Hong Kong Style (5%) Lei Garden differentiates with typical Hong Kong style Dim Sum, which is delicious and nutritious, with carefully-selected ingredients and special Chinese cooking methods. Among many online platforms of tourist sharing, suggestions and ratings, for example Virtual Tourist, Dim Sum is among the most popular dishes in the Hong Kong must-try list (Hong Kong Tourism Board, n.d.), especially in English websites and guidebooks for foreign tourists. Honeymoon’s exclusive chain of dessert stores offers more than 160 styles of hot and old dessert from traditional Guangdong sweet soups to modern fusion treats. (Honeymoon Dessert, n.d.) It is a mixed style of both tradition and modern, as well as Chinese and Western, which appeals to the destination image or branding of Hong Kong as “Asia’s World City” by the Hong Kong Tourism Board (Hong Kong Tourism Board, n.d.). Therefore, Honeymoon Dessert exceeds Lei Garden by its wide variety and in the representativeness of Hong Kong style. Both Lei Garden and Honeymoon Dessert are in typical Hong Kong style. Either one that selected could fulfill our criteria of the representing Hong Kong style. Therefore we address 5 marks to both companies in this category. 2.1.4 Competitors in the HKIA (5%) A product differentiation strategy that focuses on the quality and design of the product may create the perception that there's no substitute available on the market. Although competitors may have a similar product, the differentiation strategy focuses on the quality or design differences that other products don't have. In HKIA there currently exists no direct competitor for Lei Garden in the upper class Chinese fining dining, while Honeymoon Dessert has the Hui Lau Shan Healthy Dessert as its direct competitor serving mango-based dessert (Hong Kong International Airport, n.d.). In this category Lei Garden gets 5 marks while Honeymoon Dessert gets 2. 2.1.5 Lei Garden Differentiates Better than Honeymoon Dessert (37 VS 32 out of 40) In the above analysis and comparison we found that both Lei Garden and Honeymoon Dessert have their distinct differentiation points in products and service; both of them well represent Hong Kong, which are well matched and cannot be overshadowed by the other. While Lei Garden differentiates better than Honeymoon Dessert in the variety of takeaway choices and developing potential, as well as competitiveness with no direct competitor in HKIA.
  • 9. Out of 40 marks, Lei Garden and Honeymoon Dessert has a total mark of 37 and 32 respectively. Therefore, Lei Garden differentiates better than Honeymoon Dessert. 2.2 Food and Services Quality Analysis (30%) (Matt) Service quality is just as important as food quality for a restaurant targeting middle to high-end customers (Kim & Chung, 2010). Thus, both aspects should be put into consideration and take up equal marks (i.e. 15% each). 2.2,1 Food quality (15%) Food quality consists of various factors, of which the taste of the food and the healthiness of the food are the two most important ones (Kim & Chung, 2010; Tinne, 2012). According to a survey, customers ranks the taste of the food as their primary consideration when evaluating food quality, followed by the healthiness of the food. Therefore, 10% out of 15% would be allocated to the taste of the food aspect and the remaining 5% to the healthiness of the food. 2.2.1.1 Taste of the food (10%) Lei Garden has been awarded with various prices both internationally and locally recognizing its fabulous taste of food, including the "Best of the Best 2013" Chinese Restaurant Award by Hong Kong Capital Magazine (Lei Garden, 2015). It was also recommended by the famous TV cooking programme host, Susie Wong and by several restaurants guide books. Moreover, Lei Garden was said to be one of the best twelves Chinese restaurants in Hong Kong (Ladyironchef, 2015). Photos of food provided by Lei Garden can be found in Appendix 2. Honeymoon Dessert despite being recommended by several restaurants guide books, has neither won any internationally recognized awards, nor being recommended by any food critics. Photos of food provided by Honeymoon Dessert can be found in Appendix 3. With the above factors put into consideration, Lei Garden scores an 8 out of 10. On the contrary, recommended only by restaurants guide books, Honeymoon Dessert scores 6 out of 10. 2.2.1.2 Healthiness of the food (5%) Lei Garden has set up its own farm, namely “farmorrow”, to supply itself with organic and chemical free produce and meat. The total area of the farm is 300 acres and has an annual output of 10,000 high-quality pigs, 100,000 premium broilers and 300,000 eggs. The use of bio-chemicals including fertilizers or antibiotics are minimized in the farm so as to eliminate chemical components affecting the taste (Lei Garden, 2015). In research and development, Lei Garden Restaurant Group collaborates with top universities and agricultural experts to investigate into the source techniques of planting and breeding. The research focuses on how to maximize the nutritional quality and the genuine taste of the food (Lei Garden, 2015). CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 8
  • 10. CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 9 Honeymoon has a 10 thousand square feet kitchen and fruit room to keep its ingredients fresh. All the products are checked for freshness, quality, cleanliness and authenticity by the Quality Control staff before being delivered to the restaurant (Honeymoon Dessert, 2015) It is convinced that both restaurants are dedicated to providing customers with the freshest and the most nutritious ingredients. Lei Garden however has done further than that by investing into research and development, which is believed to yield positive and long-term outcomes in the future. Therefore, Lei Garden scores a 4.5 out of 5 while Honeymoon Dessert scores a 3.5. 2.2.2 Service quality (15%) Two factors determine a restaurant’s service quality. They are variety of services provided and employee services (Tinne, 2012). Customers consider variety of services provided as slightly more important than the employee services, which they engage after they decided to dine in (Schaefer & Kent, 1999). 2.2.2.1 Variety of Services Provided (8%) Apart from the basic services that every restaurant ought to provide, Lei Garden provides some other exceptional services. Every Lei Garden restaurant has at least one washroom for each gender of its customers, Lei Garden also allows customers to reserve tables through calls (Lei Garden, 2015). As customers in the international airport are mainly tourists or flight passengers who tend to have a fixed schedule and limited time, the reservation service can be vital (Brown, 2007). Moreover, customers are able to customize their dishes in Lei Garden by adding, replacing or removing certain ingredients in a dish. For example, a person who does not eat beef, can have the restaurant replace that with pork or chicken in a beef fried rice. This flexibility can attract tourists and customers with different religious and custom background. Honeymoon Dessert provides all the basic services. Honeymoon Dessert also provides delivery services that customers can order desserts online or via its hotline. While none of Honeymoon Dessert restaurant has any washrooms, customers need to search for toilets near the restaurant. The various services that Lei Garden provides deserves a high score. Therefore, Lei Garden scored 7.5 out of 8 in this aspect. On the contrary, Honeymoon Dessert providing only basic services, as well as a delivery service which is not necessarily useful in the HKIA, has done fair in this aspect. Thus, a 5 out of 8 marks is given to Honeymoon Dessert. 2.2.2.2 Employee Services (7%) According to the popular online dining guide, Open Rice, Lei Garden attained an average of 3.5 marks out of 5 marks in services. Another website TripAdvisor gives the same result. In Lei Garden, one staff is approximately be responsible for only 5 tables, so that customers are can enjoy superior employees services. Furthermore, Lei Garden has strict control of employees’
  • 11. manner. When found to be rude or impolite, an employee faces up to $100 fine. A services evaluation form is placed on each table for the customers to give feedbacks. Even the famous newspaper in overseas, CNN, has stated that ‘… Lei Garden also stands out for warm service. It is rumored the wait staff are trained more vigorously and compensated more handsomely than at any other Cantonese restaurant chain in town’ (Li, 2011). Same as Lei Garden, Honeymoon Dessert also attained an average of 3.5 marks out of 5 marks in both Open Rice and Trip Advisor. A staff in Honeymoon Dessert, however, has to handle up to 10 tables. Also, there is no strict policy to manage employees’ attitude and behaviors. Although both of them have the same mark in the two abovementioned websites, Lei Garden’s staff is believed to be taking better care of the customers with its lower staff-table ratio and stricter policies. Lei Garden thus obtained a score of 6 out of 7 with Honeymoon Dessert scoring a 5 out of 7. 2.2.3 Lei Garden Prevails Out of 30 marks, Lei Garden and Honeymoon Dessert has a total mark of 26 and 19.5 respectively. Therefore, Lei Garden would be more preferable in operating in the HKIA as long as food and services quality is concerned. 2.3 Reputation (20%) (Nana) The reputation of a company can be defined as the influence of its decisions on various stakeholders and the perception of the public (Harrison, 2013). The excess demand of customers in the HKIA are looking for mid- to high- level restaurants, they would attach great importance on the ethical standard and reputation of the organization in addition to the standards of food and services. The HKIA has been recognized as the best dining airport in the world for five years with reference to the Skytrax survey. The reputation factor of the restaurant selected is therefore should not be underestimated in contributing to the final decision. The prestige of the restaurant located in the airport would contribute to the overall credibility. Consequently, the image of the airport would be affected accordingly. To assess the reputation of the two restaurants, we could investigate it in three aspects: (1) awards and recognition (10%) and (2) coverage (5%) and (3) news and media (5%). 2.3.1 Awards and recognition (10%) Lei Garden has won the The MICHELIN Guide Hong Kong Macau 2015 One Star for its consecutive seventh year in its six different branches, including its branches located in North Point, Mong Kok, Kowloon Bay, Shatin, Wan Chai, and IFC. In addition to the restaurant reference guide recommendation, Lei Garden has been awarded ‘Best of the best Chinese CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 1
  • 12. 0
  • 13. CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 11 restaurant 2014’ by Hong Kong U-magazine and ‘My Best Restaurant Award’ by the Hong Kong Capital Magazine in 2014 (Lei Garden, n.d.). For Honeymoon Dessert, it is being highly recommended in many travel books and foreign websites like the Travel tips and Travel advisors (2014), Honeymoon Dessert’s reputation is established and accumulated. The online awards obtained from Hong Kong Openrice (2015) has also further proved the quality of the restaurant. Honeymoon Dessert is a preferred restaurant in the public’s perception. Hence, Lei Garden earned ten scores and Honeymoon Dessert gained seven scores out of ten due to the acceptability and familiarity of the awards in the public. 2.3.2 Coverage (5%) In total, there are twenty stores of Lei Garden scatter in the map of Asian area. The distribution of its branches are ten branches in Hong Kong, eight branches in Mainland China, one store in Singapore and one store in Macau. For Honeymoon Dessert, the coverage rate is higher when compared to Lei Garden. Honeymoon Dessert owns more than 300 branches in the Asia region including the ones in Hong Kong, Indonesia, Singapore, Beijing and Macau (Honeymoon Dessert, n.d.). The accessibility of the stores is higher so people in other countries would have confidence in the brand and customers have fundamental knowledge of the shop. Honeymoon Dessert is being recognized as a credible brand in serving traditional and fusion desserts of a wide variety, its stable performance help it to gain the confidence and popularity from the public. Lei Garden operates in a greater scale and the location covering is similar with a smaller number, it contributes to the result that Lei Garden gained four marks and Honeymoon Dessert is given five marks out of five. 2.3.3 News and media (5%) The reputation of Lei Garden has been negatively affected due to the outbreak of news revealing that the managers in Lei Garden had issued a harsh fining system to the front line workers in February of 2015. For instance, if the staff stretched or played around, they would be fined up to $100. This was considered as an illegal deduction of wages and a breach of Employment Ordinance, so the public has raised doubt over the practice of its social corporate responsibility towards the workers. The small scale of Honeymoon Dessert did not assist it to win international prizes, but with creativity in menu and seasonal fruit themes in dessert, newspapers and magazines published the introduction of the choice of fusion and traditional desserts in the special topics page in the Central News Agency webpage (2015).
  • 14. The reputation of Lei Garden has been negatively affected by the inequality issue in its branches while Honeymoon Dessert is being positively reported and interviewed. As a result, Lei Garden gained three marks out of five while Honeymoon Dessert earned 4 marks. 2.3.4 The overall performance of Lei Garden outperforms Honeymoon Dessert After investigating into the three aspects concerning reputation, coverage rate and the media coverage, Lei Garden scored 17 out of 20 and Honeymoon Dessert scored 16 out of 20. The performances of both restaurants are satisfying while the internationally-recognized Lei Garden is slightly better than Honeymoon Dessert. Though it has won awards from various publications and been recognized by the international MICHELIN Guide. We have to investigate the influence after the court decision and observe whether the actions and reputation management of Lei Garden would settle the case and maintain its credibility. 2.4 Interior Designand Atmosphere (10%) (Mark) 2.4.1 Theme (5%) For Honeymoon Dessert, bright yellow is the united color tone of all of its branches. The wall and the utensils are decorated with the five mascots of the brand, “Dessert Monsters”, which represent the main raw materials of the dessert, mango, kiwi fruit, red bean, durian and pineapple. Together with the wooden like furniture and dark brown sofa and seats, all these elements create a young and modern feeling for the customers to dine in. For Lei Garden, the interior is well designed to combine the element of traditional Chinese restaurant with natural color tone. Not only could the customers see the bright white lighting throughout the inner area, but also the wooden wall and plant-like decorations placing on different walls or tables. It is a classy and magnificent atmosphere the restaurant creates. Both restaurants score 5/5 in this category because of their brands’ unique theme. Dining Experience (5%) The small and packed seat as well as the high turnover rate of every table in Honeymoon Dessert could only leave a bad impression, if not destroy it, for the customer. It is more like rushing for dining instead of enjoying leisure time with friends. Besides, sharing table with others mean that customers cannot rest assured of privacy, while privacy is one of the greatest issues customers concerned with. In contrast, the high ceiling of Lei Garden creates a spacious ambience, where you would feel comfortable with. Cozy booth could also be provided for separating the customers from the crowd. The on-site experience Lei Garden gives their customers is without compare. In this aspect, Honeymoon Dessert scores 1/5 and Lei Garden scores 4/5. 2.4.3 Lei Garden prevails For a restaurant locating in the HKIA, the prime concern of our management team would be whether it can cater for different customers all over the world. For the interior design, Lei Garden prevails in terms of sense of space, while Honeymoon Dessert’s crowded inner design CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 1
  • 15. 2
  • 16. could not be everyone’s favorite. Alongside with this, privacy is another critical factor for a customer to choose a dining place. In this aspect, Lei Garden, which provides separated table and booth seat could ensure private conversation in every table of customers to a great extent. To conclude, Lei Garden would be more preferable to be invited in terms of interior design and atmosphere as the total score of Lei Garden is 9/10 while Honeymoon Dessert has 6/10. 3. Conclusion (Wing) Lei Garden and Honeymoon Dessert represent two distinctive culinary experience under the vibrant Hong Kong food culture. One is a typical high level dim sum restaurant representing the “Yum Cha” culture while the other one is a modern mid-level dessert shop offering desserts varied from traditional Canto-desserts to Hong Kong fusions. Through the comparison in differentiation points, food and services quality, reputation as well as interior design and atmosphere, Lei Garden has surpassed Honeymoon Dessert in the above selection criteria analysis except for the unsettled reputation scandal making its score in reputation lower than Honeymoon Dessert. Lei Garden has gained 89 out of 100 of the weighting, which is 15.5 marks more than Honeymoon Dessert, we conclude that Lei Garden is more suitable to operate in the HKIA. We believe that Lei Garden could satisfy our travelers’ demand by providing an exclusive “Yum Cha” experience and be financially strong enough to operate in the HKIA in the long run. With the introduction of Lei Garden, food choices in the HKIA can be enriched and thus securing the name of “Best dining Airport”. CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 13
  • 17. Appendix 1: All sit-down restaurants in the HKIA (Hong Kong Style restaurants are highlighted in bold) Types Name of restaurant Chen Fu Ji Misocool ITACHO SUSHI Pak Loh Chiu Chow Restaurant Asian Restaurants SORABOL Itamae Sushi Thai Chiu Viet's Choice Pak Loh Chiu Chow Restaurant Tsui Wah Eatery Chao Inn Chinese Kitchen Crystal Jade La Mian Xiao Long Bao Chinese Restaurants/ Hong Kong Style Coffee shops Jade Garden Taiwan Beef Noodle Window Cafe Hung's Delicacies (Michelin Star Award) HONG KONG DELIGHTS MACAO HARBOUR RESTAURANT Dessert Shops Hui Lau Shan Delifrance Fast food, Food Courts Mcdonald's Super Super Congee and Noodles ITACHO SUSHI Café Deco Western Restaurants, Bars, Coffee & Cafes The Spaghetti house CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 1
  • 18. 4
  • 19. The Peak Lookout Grappa's Caviar House & Prunier Seafood Bar Le Grand Pokka Café Moon Bar Pacific Coffee Company PizzaExpress (Source: HKIA Website) CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 15
  • 20. Appendix 2: Photos of food provided by Lei Garden Steamed buns Steamed buns CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 1
  • 21. 6
  • 24. Appendix 2: Photos of food provided by Honeymoon Dessert (from: www.jiafajiafa.com) (Source: www.ipeen.com.tw) CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 1
  • 25. 8
  • 27. R e f e r e n c e s A i r p o r t A u t h o r i t y H o n g K o n g . ( n . d . ) . O u r B u s i ness. Retrieved April 4, 2015, from http://www.hongkongairport.com/eng/business/about-the-airport/welcome.html Chan,Y. & Li, M. (2013, May 27).Chinese CEO Founder of Honeymoon Dessert: Doing business is like dating “You can get married if there is one man love you”. Ming Pao Finance. Retrieved from http://www.mpfinance.com/htm/finance/20130527/columnist/ekz_ekza1.htm Kim, H. (2015). Why a good corporate reputation is important to your organization. (n.d.). Retrieved April 6, 2015, from http://www.cuttingedgepr.com/articles/corprep_important.asp Honeymoon Dessert (n.d.). Home. Retrieved April 22, 2015, from http://www.honeymoon- dessert.com/en/ Hong Kong International Airport (n.d.). Shopping, Dining and Entertainment. Retrieved April 22, 2015, from http://www.hongkongairport.com/eng/shopping/dining/all/dining.html Hong Kong Tourism Board (n.d.). What to Eat. Retrieved April 4, 2015, from http://www.discoverhongkong.com/us/dine-drink/what-to-eat/index.jsp Jimenez, E. (2015) Airport Competition: Where Do We Stand? Research from Aviation Platform. Retrieved from http://www.aviationplatform.com/index.php/research/93-airport- competition-where-do-we-stand Kim, S., & Chung, J. (2011). Restaurant Selection Criteria: Understanding the Roles of Restaurant Type and Customers’ Sociodemographic Characteristics. 16th Graduate Students Research Conference. Ladyironchef (2015, Feb 15). HONG KONG’S TOP 12 DIM SUM RESTAURANTS THAT OFFER THE QUINTESSENTIAL DIM SUM EXPERIENCE. Retrieved from http://www.ladyironchef.com/2015/02/hong-kong-best-dim-sum-restaurants/ Lei Garden. (n.d.). Lei Garden. Retrieved April 6, 2015, from http://www.leigarden.hk/en/ Li, Z. (2011, October 3). The best Hong Kong dim sum. Retrieved April 22, 2015, from http://travel.cnn.com/hong-kong/eat/best-hong-kong-dim-sum-restaurants-674709
  • 28. Schaefer, A., Crafts, D., & Kent, J. (1999). Relative Importance of Distributor Selection Criteria to Independent Restaurant Operators. Journal of Restaurant & Foodservice Marketing, 5-18. Brown, D. (2007). The restaurant manager's handbook: How to set up, operate, and manage a financially successful food service operation (4th rev. ed.). Ocala, FL: Atlantic Pub. Group. Tinne, W. (2012). Factors Affecting Selection of Upscale Restaurants in Dhaka City. ASA University Review, 6(1), 127-138. Yeung, H. Y. (2010). Food Mad Man Chan Shu Kit proudly presents the Michelin Star restaurant. CAPITAL Entrepreneur. Retrieved from http://www.capitalentrepreneur.com/common_emag/view_content.php?issue_no=064& pub_id=23&top_id=153&art_id=102459 CompetitiveAnalysisofLeiGardenandHoneymoonDessert|[Pickthedate] 20
  • 29. Submission Details Student Name LAU, Wing Yan (1155033838) Year and Term 2014-2015 Term 2 Course ELTU-3012-BIC1 Business CommunicationII Assignment Marker MISS CHUNG Hiu Yui Submitted File Name 3012BI_LAU Wing Yan_Wing(1).doc Submission Type Group Assignment Number 1 Due Date (provided by student) 2015-04-22 Submission Reference Number 1253575 Submission Time 2015-04 -22 23:17:3 0 Agreementand Declaration on Student's Work Submitted to VeriGuide VeriGuideis intended to help the University to assure that works submittedby students as part of course requirement are ori ginal,and thatstudents receive the proper recognition and grades for doingso. The student,in submitting his/her work ("this Work") to VeriGuide, warrants that he/sheis the lawful owner of the copyrightof this Work. The student hereby grants a worldwide irrevocable non-exclusive perpetual licencein respect of the copyright in this Work to the University. The Universi ty will use this Work for the followingpurposes. 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(c) Research and statistical reports The University will also use thematerial for research on themethodology of textual comparisons and evaluations, on teaching and learning, and for the compilation of statistical reports. For this purpose, only the anonymously archived material will be used, so that student identity is no t revealed. I confirm that the above submissiondetails are correct. I am submittingthe assignment for: [ X ] a group project on behalf of all members of the group. It is hereby confirmed thatthe submission is authorized by all members of the group, and all members of the group are required to signthis declaration. We have read the above andin submittingthis Work fully agree to all theterms. We declare that: (i) the assignment here sub mitted is original except for source material explicitly acknowledged; (ii) the piece of work, or a part of the piece of work has not been submittedfor more thanone purpose (e.g. to satisfy the requirements in two different courses) without declaration; and (iii) the submitted soft copy with details listed inthe <SubmissionDetai ls> is identical to the hard copy(ies), ifany, which has(have) been / is(are) going to be submitted. We also acknowledge thatwe are aware of University policy and regulations onhonesty in academic work, and of the disciplinary guidelines andprocedures applicableto breaches of such policy andregulations, as containedin theUniversity website http://www.cuhk.edu.hk/policy/academichonesty/. We are aware that each student is responsible and liableto disciplinary acti ons shouldthere be any plagiarized contents/undeclaredmultiplesubmissionin thegroup project,irrespectiveof whether he/she has signed the declarationand whether he/she has contributed d irectly or indirectly to the problematic contents. It is also understood that assignments withouta properly signed declaration by the studentconcerned andby all members of the groupconcerned,will not begraded by the teacher(s). ______________________________ ______________________________ Signature (LAU, Wing Yan, 1155033838) Date Other Group Membe rs (if any): Name(s) Student ID(s) Signature(s) Instruction for Submitting Hard Copy / Soft Copy of the Assignment This signed declarationstatement should be attachedto the hard copy assignment or submissionto the course teacher, according to the instructions as stipulated by the course teacher. 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