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Establishing Fast Food Chain Stores - a Proposal to Hiroaki Aoki - Example

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The paper “Establishing Fast Food Chain Stores - a Proposal to Hiroaki Aoki” is a well-turned example of the business plan on management. This proposal suggests a potential venture in the Fast Food business for Benihana. The proposed project entails launching a chain of fast food stores in different regions in the United States…
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Establishing Fast Food Chain Stores A Proposal to Hiroaki Aoki Presented on [Date] Contents 1.0 Background……………………………………………………………………………….3 2.0 Overall Aim and Purpose……………………………………………………………… ...5 2.1 Aim of the project………………………………………………………………....5 2.2 Scope of the project……………………………………………………………….5 1.0 Project Objectives…………………………………………………………………………6 3.0 Project Outcomes………………………………………………………………………..6-7 3.1 Low Cost…………………………………………………………………………..6 3.2 Potential growth…………………………………………………………………...6 3.3 Diversification……………………………………………………………………..7 3.4 Promotion of Japanese Culture……………………………………………………7 3.5 Improving Access…………………………………………………………………7 4.0 Approach and Methodology…………………………………………………………...8-14 4.1 Work Breakdown Structure……………………………………………………….8 4.1.1 Phase One………………………………………………………………….8 4.1.2 Phase Two………………………………………………………………8-9 4.1.3 Phase Three………………………………………………………………9 4.1.4 WBS Table……………………………………………………………….10 4.2 The Milestones……………………………………………………………….10-11 5.2.1 The Milestone Schedule………………………………………………….11 4.3 Time Plan………………………………………………………………………..12 4.4 Project Details……………………………………………………………….13-14 4.4.1 Time……………………………………………………………………13 4.4.2 Costs……………………………………………………………………13 4.4.3 Risks Involved………………………………………………………….13 4.4.4 People Involved…………………………………………………………13 4.4.5 Responsibilities and Reporting Arrangements………………………….14 5.0 Risks Assessment...………………………………………………………..…………14-16 6.0 Recommendation and Conclusion……………………………………………………….16 Reference List………………………………………………………………………….17 1.0 Background This proposal suggests a potential venture in the Fast Food business for Benihana. The proposed project entails launching of a chain of fast foods stores in different regions in the United States. Recognizing the quick growth and development of Benihana restaurants in the US, Benihana Fast Food Stores will quickly gain acceptance and attract customer preference (See Appendix 1). Having established a quality brand under a powerful mantra: My Kitchen is Your Table, Benihana has not only been able to attract Japanese customers but customers from diverse nationalities (Bagozzi et al., 2014). This is because of the strategic study of the food behaviours of the different people living in the US. As such the restaurants, despite specializing in the Teriyaki style of Japanese cooking has grown popular in the US. The restaurant has been able to establish itself under strong management principles and philosophies to compete effectively in a highly competitive hotel industry. Benihana restaurants, popularly known as the Benihana of Tokyo trains the chefs through the Benihana Colleges, who eventually become key to the success of the restaurant. The staffs specialize in the preparation of Japanese meals in the Benihana style of cooking, hence sustaining a strategic identity. Most of the staff is comprised of Japanese natives trained in communication in English and American cultures thus fitting in into the operations. In line with this operation, this proposal suggests venturing into the Fast Foods business. Fast food stores are on the increase in the US. Counihan & Van Esterik (2013) point out that food stores and restaurant businesses will always do great since people will always need to eat. The overall success of this business ventures will however depend on the quality of service, taste-appeal of the delicacies and the suitability to the food behaviour of consumers (Angell et al., 2012). Going by this, Benihana Fast Food stores are guaranteed ready market and customer preference. This is because of the quality of service offered, wonderful tasting delicacies and the ability to adjust meal preparations according to consumer needs. Benihana Fast Food stores will be located in various towns and cities in the US. Strategically, the will be located along driveways. Driveways are potential locations for fast food restaurants due to the high population traffic of people driving and walking around (Aragwal, 2014). The stores will operate on a 24 hour basis in order to cater for the 24 hour economy of the United States. As such, Benihana Fast Food stores will be able to take care of the needs of customers who require quick service and fast foods. America is made up of busy people, always in the streets trying to work hard for better lives and to sustain the economy of the nation (Heyder, Theuvsen & Hollmann-Hespos, 2012). White (2015) describes the working population of Americans as busy ants always looking for the nest thing to do to make money. Krishna (2014) attributes the increase in the number of Fast Food restaurants and stores to this busy nature. However, there are no much Fast Food restaurants in the US, dealing with Japanese delicacies. This implies that there is very little fast food preference given to the Japanese population in the US. Don’t they need these services? Japanese Fast Food restaurants in Japan are numerous in number and the market is massive. Going by this, Japanese fast food stores in the US will most certainly have a ready market, not only from the Japanese but Americans and other immigrants. This proposal thus presents a project that would take advantage of this market and maximize on profits, which is the main goal for any business. 2.0 Overall aim and purpose 2.1 Aim of the project The project aims at opening a number of fast food stores in different cities and towns in the US to raise Benihana’s profit margins. This fast food stores will specialize in Japanese fast foods prepared using the Benihana style of cooking. As such, the stores will not only attract the regular customers of Benihana restaurants but open up to a wider market. The stores are expected to offer fast service and fast foods to customers who would want a quick meal or take away meal. 2.2 Scope of the project Identification of the objectives of the project Conducting a market analysis of fast food restaurants in the US Strategic formulations of the management criteria and policies Identification of towns and cities and potential locations where the fast food stores will be located Establishment of the fast food chains in the identified locations Recruitment of staff Marketing of the fast food stores The project is required to act as a supplement to the Benihana Restaurants. They will be fast food chains but are not to take over the operations of the restaurants. The project will not entail identification of financing channels for the project. This aspect of the project will be discussed and tabled by the Board of Directors of the Benihana Restaurants. In doing so, the Board should critically consider this project and the opportunities it will present to the upward mobility of Benihana and in raising the profits gained. Moreover, the project does not also include procedures that would be used to measure the workers performance. 3.0 Project Objectives 3.1 To establish Japanese fast food stores in the US The project aims at identifying potential locations, especially in major towns and cities to establish the fast food stores. These stores will be located along drive ways where there is readily available market from passers-by. 3.2 To increase on profit gains of Benihana ventures in the US The fast food stores are expected to fully take advantage of the ready market for the Japanese fast foods and capitalize on this for maximum profit gains. The chains will generate income that would supplement the overall income of the Benihana restaurants. 3.3 Marketing the Benihana restaurants/hotels The fast food chains will use the Benihana style of cooking but will not take over the operations of the Benihana restaurants. Through the fast food chains, customers will also be made aware of the diverse services offered in the hotels. The fast food chains will thus also offer a perfect marketing strategy for the Benihana hotels. 4.0 Project Outcomes The project has potential of increasing the profits of the Benihana entities in the US. It will enable Benihana penetrate markets where the Benihana hotels have not penetrated yet. Other deliverables include: 4.1 Low costs The fast food stores will rely on cheaper suppliers of ingredients and products used in the making of food. This will help cut down on expense incurred in the preparation of the foods. Reducing expenses while maximizing income is an effective strategy of increasing profits. 4.2 Potential growth The fast food stores project has the potential to expand to very many towns and cities in the US. Since the chains are expected not only to attract the Japanese consumers but general consumers in the US. It is possible that the Fast Food stores may eventually expand to the rural parts of the US too, to exploit the markets available there (See Appendix 2). 4.3 Diversification The project offers opportunity for diversification. The Fast Food restaurants will specialize in preparation of Japanese first foods. However, they still present room to diversify into other fast foods to take care of diverse nationalities. This would be able to attract customer preference due to an increased number of food choices offered. 4.4 Promotion of Japanese culture The project promotes the Japanese culture in a foreign nation. The American nationalities may appreciate the Japanese delicacies since it caters for variety of tastes. Through this, the fast food chains will gain public acceptance and not only attract the Japanese but consumers from different nationalities. 4.5 Marketing Benihana hotels This project when implemented will go a long way to sensitizing the consumer/customers of the services offered by the Benihana restaurants. As such, they will not exist as independent entities but strategic assets towards the marketing of the hotels. They will be peep-in centers for quick meals while encouraging sit-in customers to use the services of Benihana hotels (offering a similar type of cooking). 4.6 Improving access The fast food chains will improve access to the Benihana ventures. Fast food stores being relatively smaller compared to the hotels will be located at most places in the US. They will even be located in areas where the Benihana restaurants have not been established yet. Consequently, potential customers unable to get to the restaurants are able to receive an almost similar type of service through the fast food chains. Despite the fact that the service will be different, the customers are able to gain access to food prepared with the Benihana touch and Benihana style of cooking. 5.0 Approach and Methodology 5.1 Work Breakdown Structure The project will be carried out in three main phases: 5.1.1 Phase One This phase will entail setting of objectives and goals for the project and conducting research about the food behaviour in the US. This research helps understand the markets and would be a clear guide into the selection of locations for putting up the fast food stores. It is also key to understanding the needs of the consumers such that the stores may know exactly what to offer according to demand. In addition, designing of the management team and management plans will be done in this phase of the project. It should be clear from the onset the roles that will be played by the management in the project to avoid any confusion. Therefore, phase one generally entails the following as stipulated in the scope of the project: Identification of the objectives of the project Conducting a market analysis of fast food restaurants in the US Strategic formulations of the management criteria and policies 5.1.2 Phase Two Basing on the market research and analysis conducted in Phase One, Phase Two shall involve making strategic decisions on where to locate the first food restaurants. The process shall entail, identifying the towns and cities, including the specific high market locations. In this phase, a team of market consultants shall be required to identify specific venues and buildings where the fast food stores could be established. Secondly, this phase will also include the establishment of the fast food chain stores in the locations identified. The fast food stores will be established as small stores within high human traffic buildings. A team of expert designers shall be used to recommend and put up the appropriate structures for the fast foods business. Therefore, according to the project scope, this phase entails: Identification of towns and cities and potential locations where the fast food stores will be located Establishment of the fast food chains in the identified locations 5.1.3 Phase Three This phase will entail recruitment of staff. The staff recruited should be well trained and qualified for the jobs. The recruitment will be conducted by the HR team of the Benihana Restaurants and will be based on the KSAs of the applicants. The successful applicants shall be further trained in preparation of foods using the Benihana style of preparations. Finally, this phase will also take care of the marketing of the fast food restaurants. In a highly competitive sector of fast foods, the marketing team has to ensure that the services offered by the Benihana Fast Food chains are well marketed. According to the project scope, this phase involves: Recruitment of staff Marketing of the fast food stores The table below further breaks down these phases and specifies the performers of each tasks and responsibilities. 5.1.4 WBS Table BENIHANA FAST FOOD STORES PHASE ONE PHASE TWO PHASE THREE Setting of Objectives Board of Directors Identification of Location Marketing Department Recruitment of staff HR Department Market research & Analysis Marketing Department Establishment of stores. Technical team Launching the stores Management Formulation of Management Board of Directors Marketing Marketing Department 5.2 The Milestones The milestones for a project help determine whether the project is on schedule or not (Magretta, 2013). For this project, it is important to set specific milestones which would be indicators of the advancement of the projects. These milestones will also determine the onset of the next activities of the project. The table below shows the milestone schedule for the project. The project is meant to be implemented within a period of 12months. Phase One and Three will take 3 months each while Phase two will take 6 months. 5.2.1 The Milestone Schedule CALENDAR MONTHS (2016) 1 2 3 4 5 6 7 8 9 10 11 12 Phase One Setting of project objectives Market research/Analysis Formulation of Management Phase Two Identification of location Establishment of stores Phase Three Recruitment of staff Launching the stores Marketing 5.3 Time plan The Gantt chart illustration below shows the time plan for implementation of the project. Working days exclude all weekends and all public holidays. Research report CALENDAR MONTHS (2016) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Dates 2-31 1-30 1-31 1-30 1-31 1-30 1-31 1-31 1-30 1-31 1-30 1-31 Phase one Setting of project objectives 100% Market research/Analysis 100% Formulation of Management 100% Phase Two Identification of location 100% Establishment of stores 100% Phase Three Recruitment of staff 100% Marketing 100% 5.4 Project Details 5.4.1 Time The project would take a time period of 12 months to be established after which it will commence functioning and be able to generate desirable profits for Benihana. 5.4.2 Costs The project will mainly incur the following costs: Transport costs for research and location identification. Construction costs for designing and setting up the stores 5.4.3 Risks involved Identifying strategic locations for the fast food stores could be challenging and may present a great risk in making the right choice in some places. The marketing team is expected to conduct thorough research about locations before making their proposals on suitable venues. The best target locations however are driveways in major cities and towns. 5.4.4 People involved The project will require engaging the following experts for its success: Marketers to strategically study the market and give necessary recommendations about the food behaviour of the residents. They will also offer advice on marketing strategies for the fast food chains and effective advertising channels. The marketers shall also be responsible for studying different markets and compiling a report about the demands and expectations. This will help in the decision of location of the stores. Secondly, the project will require a team of professional designers and constructors, who will be responsible for designing and putting up the required structures in the fast food stores A HR team will be required to conduct the interviews and recruitment process for the employees for the fast food chains. Finally, a management team to oversee the project is crucial for the success of the project. 5.4.5 Responsibilities and reporting arrangement The following diagram illustrates the organizational structure that shall govern the implementation of the project and control the reporting procedures. 6.0 Risk Assesment Medical research from the early 20th century has revealed that most human illnesses and health related issues are as a result of human lifestyle (Schlosser, 2012). This implies; general human hygiene, human activity and the foods and drinks consumed. The American Heart Association conducted a research which reveals that increased consumption of hamburgers, hotdogs, French fries and pizza are is increasing the risks of deaths caused by coronary heart disease and type 2 diabetes (Richardson et al., 2011). These are a few examples of fast foods and a sample research implication that these foods may have on human health (See Appendix 3). Following this statistics, Solomon, Russel-Bennet & Previte (2012) argue that there has been a drastic decline in the number of people using fast foods in the United States. This poses as a potential threat to the fast food restaurants business. Consequently, it poses a major risk to the Benihana Fast Food stores. If the implications are as serious as described then it means, in the next 10 years fast food restaurants will be history in the US. However, Yavas & Vardiabasis (2015) posit that most Americans are ignorant to health issues and more so those related to the food they eat. Therefore venturing into the fast food business seems a 50-50 affair. Taking a 50% chance is too risky for any business and thus risky for Benihana fast food chain stores. Eventually, the stores may lose customers conscious of their health leading to unexpected losses. If the situation gets worse, then there may be a probability of closing down, which will prove a wasteful and disastrous course for Benihana. What, therefore, are the measures put in place to manage these risks? White (2015) explains that 76% of Japanese dishes are oil free. He explains that, for this reason, most of the Japanese foods are healthy and more nutritious compared to other foods prepared by addition of industrially made oils and fats. Benihana specializes in the preparation of meals and foods in the Japanese style, that means use of very little or no industrially processed oils and fats. Using the same techniques, the fast food stores will venture into preparation of healthy diets that are less risky to the health of the consumers. The marketing department will ensure that the stores have a precise advertising mantra that would inform and assure consumers of their safety. The major target markets for the stores are Japanese immigrants in the US, who are already aware of this safety. The rest of the population, which is also a potential market, needs to be enticed to trust the products through strategic marketing procedures. This way the stores will ensure a regular flow of customers and avoid the risk of incurring numerous losses. Besides, offering a more nutritious diet of fast foods would attract customer preference to this food stores, hence giving them competitive advantage. 7.0 Recommendation and Conclusion Benihana of Tokyo has fast grown in the hotel industry in the US. It has attracted not only the Japanese population but also the locals and immigrants in the US. This is because of the quality of service rendered. As a result, the hotel has become popular and opened various other branches in different parts of the US. Hotels are bigger compared to fast food stores; hence establishing several of them becomes costly for the investors. This has significantly limited the potential growth of Benihana. This proposal therefore suggests a reliable project through which Benihana can establish itself in several other towns and cities in the US. By establishing a number of small fast food chain stores, making food the same way as the hotels, Benihana is able to take care of a wider market. Besides, this also maximizes on profits gained by the entity while marketing the hotels. It is therefore a reliable proposal. The project considers the risks involved and offers effective contingency plans that would go along way into mitigating these risks and ensuring long term business success. It would therefore be highly recommended for the proposal to be considered and implemented by Benihana. Reference List Agarwal, T. (2014). Fast Food Marketing and the Related Ethical Issues in India. Angell, S. Y., Cobb, L. K., Curtis, C. J., Konty, K. J., & Silver, L. D. (2012). Change in trans- fatty acid content of fast-food purchases associated with New York City's restaurant regulation: A pre–post study. Annals of internal medicine, 157(2), 81-86. culture. Routledge. Bagozzi, R. P., Wong, N., Abe, S., & Bergami, M. (2014). Cultural and situational contingencies and the theory of reasoned action: Application to fast food restaurant consumption. Journal of Consumer Psychology, 9(2), 97-106. Counihan, C., & Van Esterik, P. (Eds.). (2013). Food and culture: a reader. Routledge. White, M. (2015, January). Ramen at Home and on the Road. In Japan Forum (Vol. 27, No. 1, pp. 114-120). Routledge. Heyder, M., Theuvsen, L., & Hollmann-Hespos, T. (2012). Investments in tracking and tracing systems in the food industry: A PLS analysis. Food Policy, 37(1), 102-113. Krishna, K. (2014). Analysing Competition in the Quick Service Restaurant Industry. Available at SSRN 2402180. Magretta, J. (2013). Understanding Michael Porter: the essential guide to competition and strategy. Harvard Business Press. Richardson, A. S., Boone-Heinonen, J., Popkin, B. M., & Gordon-Larsen, P. (2011). Neighborhood fast food restaurants and fast food consumption: a national study. BMC Public Health, 11(1), 543. Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. Houghton Mifflin Harcourt. Solomon, M., Russell-Bennett, R., & Previte, J. (2012). Consumer behaviour. Pearson Higher Education AU. Yavas, B. F., & Vardiabasis, D. (2015). The determinants of US international fast food franchising: An application to the pacific basin. In Proceedings of the 1987 Academy of Marketing Science (AMS) Annual Conference (pp. 161-164). Springer International Publishing. APPENDIX History of Benihana of Tokyo The Benihana Story begins with the descendent of a samurai warrior and a mini Tokyo coffee shop. Just after the war, Yunosuke Aoki decided to venture into coffee shop business with his wife, Katsu. Yunosuke Aoki rode his bike over 20 miles daily to acquire real sugar to serve the coffee with in his shop in an attempt to offer something different from what other shops offered. This attempt to do things differently different caught the eye of his son, Hiroaki, who after college went to the US to pursue his dream in restaurant business - One that combined the father's techniques of doing things different with food that was enjoyable and truly memorable. With his little money in place, Rocky took out a loan and used it to start America's first teppanyaki restaurant on West 56th street. He named his restaurant after his parents' Tokyo coffee shop. Benihana was launched in 1964, featuring an authentic Japanese farmhouse interior and food prepared on steel grills right in front of customers. His highly trained chefs delighted customers with intricate knife work, theatrics and delicious food. But it wasn't until legendary food critic Clementine Paddleford gave Benihana a rave review that the restaurant really took off, paying for itself in just six months. Soon after, Rocky launched a second location in New York and another in Chicago. And by 1972, there were six Benihana locations across the country, with more opening every day. Sadly, Rocky Aoki died in 2008 at the age of 69. But, his legacy lives on with more than 70 Benihana restaurants in the U.S. and across the world, and more than 100 million meals served. Fast Food Market Demand Fast foods have become common and preferred in almost all parts of the world (Larson & Mary, 2011). Jenkins et al (2014) attributes this to fast foods being the fastest option of a complete meal and the comfort they offer, such that they can also be eaten while on transit. They also come in very attractive advertisements, packages and pleasant flavours that are attractive to consumers (Vice 2014). As such fast food outlets are in booming business and one can find them located along driveways offering easy and satisfying meal solutions to the consumers (Larson & Mary, 2011). So far, Rehm & Adam (2015) point out that Mc Donald’s and KFC are the most popular fast food outlets, having outlets in almost every part of the world. However, they further explain, there are other similar outlets distributed at various places in various towns and cities in all parts of the world. It is possible to find outlets even closer to homes, sometimes discouraging people around from making meals and opting for take-away option from the fast food restaurants, unaware of the health risks involved with the regular consumption (Rivera et al 2014). Fast Foods Effects on Health Large portion sizes of fast foods From the first introduction of fast foods to present, there has been an increasing trend in the portion sizes of fast foods offered to satisfy the increasing demand for more fast foods (Jo & Taisun 2014). Portion sizes of soft drinks, pizzas, fries and burgers served in fast food outlets have all gradually increased 2-5fold in the last fifty years (Eli & Ulijaszek, 2014). As such, Rehm & Adam (2015) argue, there is an increased consumption of fast foods that arises from intake of larger portions, hence, increased negative health implications. Energy density of fast foods Jo & Taisun (2014) explain that fast foods have high energy densities that have negative effects on health. Most fast foods have high content to weight ratio (Hemsley & Melissa, 2014). Analyzing the entire menu of fast food outlets, the energy density is about 1100Kj/100g, which is 65% greater than the average British diet, which stands at 670Kj/100g (Rehm & Adam, 2015). Even worse, is that it is more than twice the recommended energy density for a healthy diet, 525Kj/100g (Lustig, 2014). Human beings are, however, not very capable of recognizing the energy densities thus unable to control the intake to blend with the appropriate energy requirements (Jenkins et al., 2014). Joseph (2015) points out, increases the health risks related to fast food consumption. IP-TFA and fat content in fast foods Jo & Taisun (2014) point out that industrially produced trans-fatty acids, commonly present in fast foods have serious implications for health. Fried meat and French fries have high amounts of industrially produced trans-fatty acids (Lustig, 2014). Jo & Taisun (2014) further explain that these acids are found in frying oils, spreads and margarine. Naturally, they are also found in dairy products and meat from ruminants but to a lesser content percentage about the industrially processed (Rehm & Adam, 2015). A worldwide study of IP-TFA content in fast foods, snacks and biscuits were found to contain 50% of these fatty acids, which typically implies an intake of 36g of IP-TFA in a single meal (Eli & Ulijaszek, 2014). Consequently, according to Joseph et al (2015), this poses a 30% Coronary Heart Disease risk. Observational studies have further postulated that IP-TFA is the most powerful cause of abnormal weight gain, and abdominal fatness compared to other fats (Pinnock, 2015). Read More
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