Different Aspects Of A Start Up Restaurant Venture

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Question :

GSM Distinctive Higher Education London

Code: EBWO3001

Learning outcomes assessed:

  • Demonstrate an understanding of the concept of the organisation and the environment in which it operates, including determining the competitive advantage for an organisation.
  • Identify and analyse organisational operations, responsibilities 
  • Discuss the needs of the consumer and people who work in a business.
  • Recognise a range of issues related to business and how they interlink.  


  1. Briefly describe the nature of business you have or might like to have in the future. 
  2. What are the advantages and disadvantages of owning your own business?
  3. In what ways could PESTEL be useful in planning your start-up business? 
  4. In what ways can ‘globalisation’ have an impact on your business? Discuss two examples.
  5. What suitable technology would your business use and how would it improve the operations of the business? 
  6. Briefly identify who your ‘customer’ is likely to be. Why is it important for a business to understand its customers?
  7. Describe TWO ways in which you might attract more customers to your business. 
  8. What is the role of ethics in business? 
  9. With examples from other businesses, describe how your business can treat its staff ethically. 

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Answer :


Starting a new business requires innovative ideas and other entrepreneurial skills that are significant for the success of the business. Along with adequate capital and other resources it is important understand the subsequent market for the business and the customers along with he possible effect of several internal and external factors over the business (Lee et al, 2016). This study aims to reflect upon the benefits of starting a new restaurant as an entrepreneurial start up venture and evaluates several aspects, which are associated with the proposed business venture.

Task 1

Nature of the proposed business

Opening up a restaurant as a start-up business can be considered as an organization that offers the customers food and beverage services. As a service organization that is an entrepreneurial venture this restaurant is going to be a private registered service organization. Hunger games is a private limited company and it has no shareholders but has future scope of including shareholders in the company. The restaurant is to be based upon a rented property and has ten employees initially. As a small start up business this restaurant does not concentrate on hiring many employees currently. Among the staffs there are two chefs, two kitchen porters, three waiters, one manager, one supervisor and advertising expert.

Our mission is to provide high quality food to the locals with certain speciality dishes keeping in mind the recent cultural influence over the people. Therefore, this restaurant aims to provide the customers with Chinese and Indian food along with the Mughlai cuisines.

Advantages and disadvantages of owning the business

Owning a restaurant has its own challenges along with several advantages. 

  • It has a huge customer base due its variety and food   services.
  • Food service is availed by   majority of the population and growing taste for Indian and Chinese food has   paved the path for possible success (Lee   et al, 2016).
  • Operational process is less   complicated than other service organization.
  • Profitable and manageable   with less number of staffs.
  • Easy to market and   advertise.
  • Easy to establish a customer base.

  • Difficult to start as a registered company.
Requires a huge capital initially.
Difficult to find shareholders because of the competition   in the market (Lee et al, 2016).
High competition in the market of restaurant business.
  • Risk of failure in the initial 3-4 years of starting the   business.

Utility of PESTEL in planning the business start-up

PESTEL analysis indicates the analysis of the external factors and its possible effects over the proposed business. It includes the political, economic, social, technological, environmental and legal factors that can affect the business. It is important to conduct a PESTEL before starting a new venture as it helps in the understanding of the possibility of success and along with that the upcoming challenges that can affect the business. It is important to analyze the political and economic factors as it directly influence the start up and the nature of the supplier and the cost of the resources depend highly over the political and economic condition of the country. For instance before and after Brexit the price of the raw materials is not the same and it is important to understand the possible fluctuation of the cost of the raw materials in order to decide the possible profit accordingly.

Analyzing the social factors help in identifying the right customer base and the inclination and service needs of the customers in order to develop an effective business strategy and in association with that the subsequent marketing and promotional strategy of the business unit.

In the era of technological advancement it is important to understand the effectiveness of the contemporary technology along with the applicability of the necessary technological equipments in the operational process of the business venture (Alonso and Krajsic, 2014). Therefore it is important to analyze several aspects of recent technological advancement in order to imply the same effectively in the business. Studying the application of technology by other similar service provides can be helpful in the technological analysis.

The environmental factors are important in the restaurant service as it is directly related to supplying food to the people. Therefore in order to understand and avail proper raw material supply services and to calculate how far this particular business can survive in such environmental factors, it is important.

Legal perspective is one of the moot concerns of the entrepreneurs. This is important to understand the legal factors including proper taxation along with the proper legal documentation for starting up a new business. Along with that in order to implement the organizational policies in accordance with the legislation of the country related to business and employment it is potent to have sound knowledge of the legislation. It helps in avoiding unnecessary breaches and torts.

Task 2

Impact of globalization over the business

Globalization has a prominent impact over the restaurant industry as a whole. As a part of the restaurant industry, this restaurant has every potential of the same effect that is faced by the other restaurants of similar nature. 

Globalization has its effect over the very essence of this restaurant as this restaurant serves food, which has cultural influence from the East. Because of globalization, the customer base of the restaurant industry in UK has become versatile and it demands foods that have Asian and other flavours. Therefore, in UK Mexican, Chinese, Indian, Bengali, Thai and Mughlai restaurants are growing popularity. Globalization also indicates emergence of population that has cultural diversity and people from different cultural backgrounds, ethnicity are coming to UK and the number of migrants along with UK based foreigners have increased alarmingly. Thereby, restaurants that serve foods with oriental flavour are gaining popularity in recent years (Lee et al, 2016).

Another aspect of globalization is improved communication and technological advancement and both of the aspects have facilitated the process of customer retention of the business.

Suitable technology for the business

The restaurant service has utilized several advanced technological equipments in order to sustain the business effectively. From the very basic level restaurant business requires an effective inventory and storage system in order to avoid nuances regarding rotting of the raw materials. It has high standard refrigerating system along with that better quality utensils and high tech cooking equipments such as advanced oven system, microwave and induction cooks which are effective and safe at the same time.

Technology has its major impact over the communication and the marketing of the restaurant. I as a start up company it was necessary to establish an effective promotional and advertising strategy that is not much expensive. Building a customer base depends on the marketing largely. The business has utilized social media marketing and has used social media as advertisement platform for the marketing of the restaurant.

Task 3

Identification of the customers

As a restaurant that provides foods and beverages havingan oriental flavour, it is likely that this restaurant can attract people of Indian, Pakistani and of Chinese origin who have settled in this country. Along with that with its specialized and experimental dishes it has the ability to attract the food enthusiasts of the locality. Because of its atmosphere and its geographical location at the prime of the city, it attempts to attract the youth specifically. UK has a large number of immigrants and therefore the customer base is more likely to be the migrants who seek oriental flavour in their foods available in this country (Lee et al, 2016).

It is important to understand and target a customer base before starting a particular business because especially in the food services because of diverse variation it is not possible to satisfy all of the customer segments. In order to provide quality service to a particular customer segment it is important to identify the requirements and the needs of the customers. Therefore, the restaurant positively aims at the selected customer segment that demand oriental food in an affordable price.

Ways of attracting the customers 

In order to attract the customers and create an effective and loyal customer base the business is going to follow these two ways:

  • Effective promotion and advertising: It is important for any start up business to establish its customer base. In the restaurant industry the market competition is high and it is a challenging task to establish a customer base due to other similar restaurants (Barringer, 2012). Effective promotion and advertising helps the restaurant to get noticed by the subsequent customers. The restaurant aims to focus on the social media marketing in order to catch the eye of the customers.
  • Offers and happy hours: As the target customer base of this restaurant is culture specific the restaurant plans to provide discounts over the food items on the special occasions along with that as a start up in order to retain its customers it also plans to introduce happy hours in specific days of a week. Customers can avail the food services in a discounted prices during the happy hours.

Task 4

Role of ethics in the business

Every business has its own ethics that helps in attaining benefit from the codes that are used as guidelines for making decisions. The restaurant focuses on the following ethics:

  • Employee relations
  • Food safety
  • Supplier standards 
  • Public health issues.

This business aims at treating the employees ethically by focusing on their organizational issues and attempts to solve their problems. It focuses on employee equality and does not encourage workplace discrimination (Barringer, 2012). As far as the ethical consideration regarding the customer service is considered, it focuses on the food safety and the public health issues regarding the food standard of the restaurant.

Treatment of the employees 

Restaurants such as Lokhandwala, R an H gallery and the Oysterman treat their employees in accordance with their subsequent employee ethics and maintain an organizational code of conduct (Khan, 2014). This restaurant attempts to develop its employee policies with special regards to the employee health and safety act and the worker’s compensation act of the UK. Along with that it also proposes a code of conduct for the employees working in the restaurant and aims at encouraging equality in workplace.


In the light of the proposed start up it can be stated that it is important to have a innovative business strategy that works in accordance with the ethical consideration of entrepreneurial ventures.