Youesh Ltd Restaurant Business Plan

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2.2. Customer profile

YOUESHLTD. will offer healthy fast food items for a mid-to high-end price due to its efforts in using naturally imperfect produces and high quality ingredients for its products. Therefore, its main target group of customers are men and women between the ages of 30 to 55. People older than 55 years tend to avoid fast food items, while younger people care less of their health and environmental issues. The income of this target group is on average the highest and for that reason it is most likely that these people are willing to pay a higher price for a food item. In addition, people of this age segment are aware of what foods they are consuming and usually prefer to eat healthy. This especially applies for women of this age segment who are willing to pay much money for a healthier alternative. Moreover, YOUESHLTD. will offer more traditional American fast food items like burgers, fries and salads which targets not all cultures in the multicultural area of Vancouver. In this particular case, the healthy and traditional American fast food is targeting the “western” culture, which means people born and raised in North America, Europe and Australia. People from Asia, Africa and South America tend to prefer their own traditional foods. All in all, almost 40% of the population in the Vancouver area are North American, tallying 1 Million people between the ages of 30 and 55 with ca. 49% men and 51% women[6].

2.3. Market Trends

One of the most significant trends in the fast food market is healthy fast food[7]. Companies who offer this kind of food have the largest growth rate in sales value while traditional fast food chain only grow with about 1% per year which is really low[8]. Due to the medial attention to fast food and its many negative consequences for the society, more and more people are starting to take care of what they are eating. They wish to eat healthy and buy food that is locally grown. Furthermore, there are many restaurants founded during the last years which are specialized on vegetarian or anti-allergically fast food. This shows that customers are expecting a more specific offering of fast food for their needs and wants. This development is also an indicator that fast food still works for many people. In addition, it is expected that the market for fast food will grow within the next few decades as many people of an older age category who have avoided it will pass away, and the market will be ran by a younger generation. The modern lifestyle, which is often stressful, supports this industry as people of this age segment value convenience greatly.

2.4 The Competition

There are many competitors in this market. Some are very well known and occupy much of the market such as; Tim Horton’s, Mc Donald’s, Subway, as well as smaller, lesser known chains. There are approximately 5000 restaurants in the greater Vancouver area and many of them offer fast food. Tim Horton’s is by far the biggest fast food chain with 26% of the market sales value followed by McDonalds and Subway with 11% and 7%[9]. Large competition is advantageous in this case for two reasons; first, it shows that the basic idea of selling fast food items work, and secondly, it could offer the possibility of an exit after some years.

In contradictory to that, there are no huge chains which are specialized in offering healthy fast food. Nevertheless, many single fast food restaurants like “SMAK” or “Tractor foods” and smaller chains like “CHOPPEDLEAF”, show that the idea of it also works in Vancouver. “CHOPPEDLEAF” indicates how successful healthy fast food can be because the company has a growth rate of 50% and has opened 10 new stores in 2015, while the first store was opened in 2009.

Competitors Strengths & Weaknesses. Different competitors have varying strengths and weaknesses. Huge fast food chains like Tim Horton’s and Mc Donald’s are strong brands with many locations that operate in nearly every area of Vancouver. They are strong in building relationships with customers. It is much easier for them to offer a cheaper price as they have a much higher negotiation power than single restaurants. However, one of their weakness’ is that they are not, or almost not offering, any healthy alternative fast food items. Another weakness is the low flexibility of these huge companies to new market conditions or trends. In contrast to that, smaller chains like “CHOPPEDLEAF”, are much more flexible, enabling them to be able to react fast to changing market conditions. These chains also have weaknesses such as a vast product range which could confuse its customers, and not perceive transparency through the production process of their purchased meal. Single restaurants are much more flexible to its customers and can adapt to ever-changing market conditions. Some smaller restaurants are strong at building relationships with their customers. There will only be a few single restaurants will truly be in direct competition with YOUESHLTD. Most of them are offering other products, and target a different market segment. Many restaurants aren’t able to grow due to their owner’s lifestyle. Overall, each restaurant has their own strengths and weaknesses that will be different than their competitor’s.

2.5. Competitive Advantage of YOUESHLTD.

YOUESH´s competitive advantage consists of several aspects. First, the use of imperfect produce. This give YOUESH greater value in the minds of our targeted market. Imperfect produce of locally grown food products are usually transported to a waste disposal unit. There is likely to be people who are willing to purchase from a restaurant who uses such produce, to decrease the amount of waste. Another important part is the transparency of the company’s operations. We will eliminate the boundaries between our customers and the food production process, enabling each customer to witness their food being prepared. Now, the most important value proposition that YOUESH will offer is the promise that all foods will be sourced through local farmers. Products will be free of steroids, pesticides, hormones, and non GMO when possible. Most competitors who are specialized on healthy fast food offer cold snacks, like salads, sandwiches, or seafood. YOUESHLTD. will also focus on simplicity for creating a competitive advantage. This will be described in further detail as apart of, “3. The Sales and Marketing Plan”. For all these reasons, YOUESHLTD. will have a competitive advantage over other fast food restaurants in the market of healthy fast food.

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The Sales