RED PLATE GRILL AND RESTAURANT
SWOT ANALYSIS
Restaurant Strength
1. Excellent Location
Having a prominent location is one of the keys to grabbing the attention of
passersby. Red Plate Grill & Restaurant is located in Bauan Municipality, near the
well-known Bauan Technical Integrated High School. This restaurant benefits greatly
from its location since it attracts customers who are employees and students, which
will help it become well-known and prosper.
2. Recruit local laborers
The restaurant industry is continuously hiring and creating more jobs. It is
estimated that the sector employs as many as 11.2 million people. Thus, when
people spend money at a restaurant, it goes straight toward feeding families in the
same community. Furthermore, the restaurant sector currently creates middle-class
jobs at a rate three times higher than any other sector.
3. Most people's initial jobs
Most people often begin their first jobs in the restaurant business before
moving to other sectors or getting a college education. Thus, you can view
restaurants as enablers of the future. During these early jobs, the young people can
save enough money to pay for their education with little support needed.
4. Reasonable price
When it comes to food, the price determines whether or not a customer can
afford it. The cost should be reasonable for the consumer, particularly if the business
is new to the industry. Giving your customers a competitive pricing will help you run
your business successfully.
5. Outstanding Customer Service
Excellent customer service provides consumers with help, goes above and
beyond what they anticipate, and employs agents with strong communication skills
and in-depth product and service knowledge. Additionally, since customers are
aware of how they should be treated, offering exceptional service will aid in the
expansion of your business.
6. Online Deliveries
People are occupied with their jobs and other activities while technology advances
daily. For your business to flourish and expand online, you need to have a restaurant
website. A food ordering business's central aspect is its online ordering and delivery
system. It facilitates effective management and meal ordering for the admin and
customers.
Restaurant Weaknesses
1. New openings
New restaurants are often open within a shorter timeframe. When that
happens, existing staff may go looking for jobs there in a bid to get higher wages.
Additionally, the new restaurants take away a considerable number of customers,
making competition tougher.
2. Similar cuisine types
Some restaurants have the same cuisine, taking away their uniqueness. That
creates confusion for some customers about where to go and enjoy their meals. At
the same time, restaurants that have less marketing power may end up not attracting
many customers.
3. The space is inadequate
One of the factors that determines whether a customer will return is the place.
The restaurant's space is important because it gives customers a pleasant
environment. If the space is too tiny, customers will almost certainly stop coming
back, and their bad perception of the restaurant may be one of the reasons they
choose not to support the restaurant.
4. Lack of Advertisement
Today, advertising is really important. Running an advertising campaign is
crucial if you want to expand your business. The most important factor in getting a
customer's attention is advertising your business and your product. It's possible that
your business won't last in the industry for very long if you don't advertise your
products and business name.
5. No parking area
Since people are more inclined to use their own vehicles for transportation
than using public transportation today, parking areas are one of the most crucial
aspects of developing a business. Therefore, if your business doesn't have parking,
it's probable that customers won't return and may assume that you weren't well-
prepared when running your enterprise.
6. Cash flow
With indoor dining severely restricted, restaurant owners are struggling to
earn enough to meet operating costs. To survive the pandemic, restaurants must
look at additional ways to generate revenue independent of traditional indoor dining.
Although making this transition is completely under the restaurants’ control, it’s no
easy task.
Restaurant Opportunities
1. Food Aggregators
Food aggregators have made browsing for dishes, placing an order, and
delivering food a seamless experience. These services have opened restaurants to a
wider audience. Restaurant businesses that have embraced this opportunity are now
serving many times the number of customers they could have served traditionally.
2. Staff Turnover
The attrition rate in the restaurant business is notorious. In today's competitive
restaurant business, it is difficult to find and keep qualified restaurant employees.
The high attrition rate among restaurant employees is significantly attributed to the
desire for improved career advancement, a competitive compensation, and simple
job switching.
3. Customer Footfall
Diners today are mindful when it comes to choosing a restaurant. There are
numerous moving aspects in the restaurant industry that directly affect the
experience of the patrons, whether it be the quality of the food, the level of service,
or just the ambience of the establishment.
Low customer traffic, especially on busy days, is a big worry that keeps
restaurant managers up at night. In the current business environment, it is also quite
difficult to build consumer loyalty. One unpleasant experience or unfavorable online
review is all it takes to undermine the consumer experience and drive them away
from your brand.
4. Inventory Management
Inventory management is an enormous area of concern for restaurant owners.
A significant aspect of restaurant management is that when inventory is not handled
properly, it adds to the total food costs and ultimately hits revenue. Moreover,
internal thefts, spillage, and pilferage are practices that lead to unaccounted loss of
inventory, negatively impacting the restaurant’s bottom line.
5. Revenue Management
The costs associated with operating a restaurant add up quickly. Labor costs,
food costs, kitchen supplies, rent and utilities, and marketing spends—these are
some of the leading expenses in operating a restaurant. Sometimes, newbie
restaurateurs forget to consider the working capital needs until the restaurant
reaches the break-even point, which further adds to their concerns. Because of the
high level of competition, many restaurants operate on thin margins and barely make
any profit.
Restaurant Threats
1. Shifting Consumer Preferences and Expectations
Today’s consumers are not the same as they were five years ago.
Restaurants that fail to adapt to the more educated, demanding and busy consumer
whose choices take precedence will be devastated. In order for restaurants to
survive, they have to be more versatile. This has to start with knowing what
customers want and meeting those needs.
2. Labor Shortages
There are labor shortages in many businesses and professions. Affected
industries will alter as the economy and the labor market change over time,
depending on whether there is an increase or drop in demand for workers.
3. Increasing food costs
4. Big brands in the area
Old and well-established restaurant brands are operating their businesses in
the area. Therefore, it’s very difficult to meet expenses with the current revenue. Of
course, it’ll be a successful business one day. But it’ll be very difficult to reach that
stage under the current circumstances.
5. Rise in food prices
Price uncertainties affect everyone within the food industry from the supplier
and producer right through to the restaurant owners and ultimately the customer.
Many things affect food prices, including those of an environmental nature.
6. Operating Expenditures
Opening a restaurant is seemingly easy. But running it, maintaining the
standards, and retaining the position are by no means easy tasks. Restaurants face
several operating expenses, like building rent, staff salaries, and other maintenance
charges. Continuous expenses on such factors are definitely a threat to the revenue-
generation process
