CASE IN REALITY
Case: Samouel’s Greek Cuisine (From Hair et al. 2016)
Samouel’s Greek Cuisine restaurant is located in New York City. Phillip Samouel, owner
of the restaurant, is a successful manager and businessman. He came to New York
about fifteen years ago and has owned several other businesses but is relatively new to
the restaurant industry. He and his brother opened the restaurant about four years ago.
The decor and menu are similar to those of a restaurant they remember from their early
days in Greece. The concept of the restaurant was to feature traditional dishes with the
freshest ingredients, an informal and festive atmosphere, and a friendly and
knowledgeable staff. In making the initial decision to open the restaurant, Phil and his
brother talked with several friends but did not conduct a formal feasibility study. Also,
they chose the location based on the fact that a restaurant had previously been in
operation there and the cost of renovation would therefore be much less than if they had
selected a location of another type of business.
About two blocks from Samouel’s location is an Italian restaurant owned and managed
by Gino. Gino’s Italian Ristorante has been open at its current location for about ten
years and has a southern Italian menu. Gino and his family emigrated from Sicily and
started the restaurant. His mother runs the kitchen using family recipes gathered over
the years and makes sure the food is properly prepared.
When Phil and his family were starting their restaurant, their background research
suggested that many restaurants collect information on the characteristics of their
customers, such as that listed below:
• Age
• Income
• Where customers live and work
• Ethnic background
• Gender
• How often they eat out, for lunch, for dinner
• How much they typically spend when they eat out
• Kinds of food they eat most often when dining out
• The kind of atmosphere that is most appealing
They have been so busy since starting the restaurant that there has been no time to
collect any of these data.
Last week when Phil Samouel was passing by Gino’s, he noticed a crowd of customers
waiting to be seated. He believes Gino’s is his major competitor because both
restaurants cater to the same lunch and dinner clientele. This started him thinking about
the competitive positioning of his restaurant relative to Gino’s. Phil’s opinion is that
Gino’s has the advantage of being located in a higher traffic area with greater visibility,
and that the length of time Gino’s has been in business has resulted in a larger, more
loyal customer base. In addition, Phil and his brother believe that Gino’s is able to
charge higher prices without sacrificing business. Phil’s informal research has shown
that the entrées at Gino’s are all $14 to $15, whereas his entrées are $10 to $11.
Satisfied customers may be willing to reward the restaurant by paying higher prices and
are likely to be more frequent patrons.
1. Is a research project needed? If yes, what kind of project?
2. What areas should the research focus on?
