Part 1: The Business Model
In a post pandemic world, “where virus first emerged, countries are at last starting to see some improvements with infection numbers and deaths down and restaurant have slowly started to reopen” (Nielsen, 2020, para.5). For example, in China, restaurants are practicing social distance and addition health& safety measures such as wearing mask a s a must, monitoring customers’ temperatures while entering the door and so on. This is all for helping businesses back to the track as soon as possible under a safe environment. It is predictable that when vaccination has helped governments fully controlled the virus in a worldwide, the rebound of world tourism and universities welcoming students back to campus will bring an explosive growth to the demand of restaurant. Same thing to here in Victoria, British Columbia.
For this project, I’m going to introduce the idea of launching a new restaurant in Victoria, BC with a detailed plan and market research
Product and services
Selling delicious food and offering delightful customer service are what integrated a good restaurant. The purposed restaurant will serve Tianjin Cuisine as known as Jin cuisine, the native cooking styles of Tianjin. “The development of Tianjin Cuisine had a lot to do with the advantageous geographical condition of Tianjin” (Cchatty, n.d., para.3) in the past 300 hundred years. Tianjin, as the largest port city in Northern China, 19 major rivers running through Tianjin in total, boatmen brought business opportunities as well as cross-cultural Chinese dishes. So, Tianjin cuisine is not only categorized by its strong flavor but also its integration of many other cuisine styles in China which endows Jin cuisine an inclusive recipe and wide range diners.
The proposed restaurant will also serve snack food and cake from a famous Tianjin native pastry shop named Daqiaodao in form of agency to shape the restaurant’s competitiveness in local market as well as a marketing strategy to build up the restaurant’s popularity locally and generate extra income other than staple food.
For service sector, this will be a full-service restaurant with a mix of selling Tianjin native snack food. Customers have both dine in and take out options to enjoy out food. The purposed operation time will cover breakfast, lunch and dinner. In addition, we decide to serve alcohol as well, but it is only for dinner time.
The international student here in Great Victoria area is the main customer of the purposed restaurant. A 2017 study by Rosyn Kunin& Associates has indicated that, “there is significant positive value associated with international students studying in Canada” (as cited in Smith, 2020, para.10) and it is not contributing to education system but all related sectors such housing, transportation and of course, restaurant. “As the local newspaper TimeColonist indicated that “about 8,400 international students, mostly high school and post-secondary, attend school in Greater Victoria” (Watts, 2017, para.7). As long as the pandemic has ended, international students will continuously bring in economy benefit to Victoria and the purposed restaurant will of course enjoy the benefit as well because for this group of people, they have a strong need of dine out due the reasons of don’t know how to cook and busy in school works, their firm needs is also a firm guarantee to our customer resource. By the way, as mentioned before, the trait of Tianjin cuisine is its inclusive recipe which means our food will not only flavored by Chinese by people all over the world.
Other than international students, local residents are also our purposed customers. The early operation hour allows us serve breakfast on site which aims to attract seniors and office workers who have the need to dine out at morning time. In the meantime, snacks and cakes from Daqiaodao will also help us open the customer channel. Its varies flavors and soft taste have catered the need of a well range age group.
The purposed restaurant will be owned individually to avoid complication on management. When the business has a firm position and reputation in local market, we will consider expanding the business through franchising.
The legal organization
Part 2: Feasibility Analysis
The purposed restaurant aims to be operated at Coldwood, Victoria, BC. Specifically, along the Sooke Rd which is the mainstream that connects Langford, Metchosin, Colwood and Westshore community. In the meantime, it is also the mainstream that connects Colwood area to downtown other than the No.1 Highway. In every rush hour, it brings considerable traffic from nearby communities to downtown area which will give our purposed restaurant great visibility.
There are three options for site. The first one is closed to the main entrance of Royal Roads University, beside the Royal Roads Café (not our campus’s cafeteria). There are a plenty of space for building a new small size restaurant and areas for free parking. Also, we have noticed the owners of Royal Roads Café are approaching retirement age, so we would like to negotiate with them to see if they would like to sell their restaurant, therefore it would be a big saving to our expenses rather than build a new one as our second option. The third option is to rent one of the base business locations at the newly built Colwood Corners just beside the Colwood London Drug.
The purposed restaurant will be a 1000 sqft, full-service restaurant. The entire construction cost might be higher than the market’s average due to the consideration of some professional inventories in food production sector needs to be imported from China.
For option A, if we choose to build a new restaurant, based on the research to how much does it cost to build a startup level restaurant at a non-commercial area, a not very busy area, it will cost approximately 420 – 485k CAD which refers to 195-225 per sqf. We will need 470k CAD in this case due to the small size but many imported inventories.
For option B, buying the Royal Roads Café, we assume the final cost (buying the existed restaurant + renovation) will be around 430k CAD. We prefer this option because it will save more land space for parking in designed area.
For option C, rent a base business location at Colwood corner. Based on the brochure they provided (15 cad psf estimiated) , we need to pay around 15k rental fee monthly, but as the initial investment to all those inventories, we think an extra 200k is needed.
For all three options, the purposed restaurant will have a considerable exposure to traffics on Sook Rd, natives and international students in local community. These residents within the Great Victoria area is the firm guarantee to our resource of customer. Besides, with the growth of business, it is possible we will expand our business to UVIC area or even Richmond in Vancouver.
There are three popular restaurants in Langford area that also offered Asian flavor food and mainly served natives and international students, they are Green Leaf Vietnamese Bistro, Asian Noodle House and May Gold Village. They all have firm reputation and competitive product and service but considering their parking issues on sites and non-enough capacity for large amount customers in peak time, the great advantage of Jin cuisine and Daqiaodao food, our purposed restaurant will survive in this intense competition.
Protecting the Business
Part 3: Marketing
Service/ Product Mix
Cchatty. (n.d.). Tianjin Cuisine. https://www.cchatty.com/Tianjin-Cuisine-g-100114?hl=en
Colwood Corners. (n.d.). Grocery-anchored retail opportunities. https://www.onni.com/wp-content/uploads/2017/07/20200812-1905-1913-Sooke-Road-Colwood-Corners.pdf
Entrepreneur. Here is how much it costs to build a restaurant (Infographic). https://www.entrepreneur.com/article/331977
Nielsen, T. (2020, May). Foodservice in a post-pandemic world. https://www.ktchnrebel.com/foodservice-post-pandemic-world-coronavirus/
Smith, C. (2020, Jun 13). Decline in international students is having significant impact on B.C. economy. https://www.straight.com/education/decline-in-international-students-is-having-significant-impact-on-bc-economy
Watts, R. (2017, Dec 18). Partnership seeks to boost international student numbers. Time Colonist. https://www.timescolonist.com/news/local/partnership-seeks-to-boost-international-student-numbers-1.23126075
Part 1: The Business Model