Students : Ngo Van Tam
Phạm Thuỳ Dương
Tutorial : 2_BA 06
Tutor : Ms.
Subject : Entrepreneurship
LaCh CaCh LaCh CaCh
Restaurant
1. General information
2. Describe products & services
3. Rationale
4. Mission
5. Start-up expense
6. Macro economic
7. Micro economic
8. Competitive Strategy
9. Action plan
OVER VIEW:
Name: “LachCach-LachCach”
Description : Hotpot Conveyor Restaurant
Location : Pham Ngoc Thach street
- Dong Da district – Ha Noi
Contact:
Phone: 0983090710
Fax:
Web: http://laulach-cach.com
1.GENERAL INFORMATION
2. DESCRIBE PRODUCTS & SERVICES
Next few years: Cored products: hot pot conveyor dishes. Additional: Wines, Beer, Soft Drinks.
In long-term: expanded-conveyor dishes: Sushi, fried dishes, others.
3. RATIONALE
New delivery meals ways in Vietnam: try and explore.
“Conveyor restaurant”: Potential trend in restaurant industry.
6.5 mil ppl in HN(2009): high demand, easy to adapt with new things
4. MISSION OF STAMENT
“LachCach - LachCach” offers fine meals of hotpot conveyor taste, excellent services and great atmosphere. Our goal is to provide our customers with an entire dinning experience that exceeds their expectations on every visit. young and old, male and female in Hanoi and Vietnam market.We provide the great work environment and value the people who work for us. LC-LC wants to be the restaurant of the first choice of the mature and adult crowd, couples and singles, etc.
5. STARTUP-EXPENSE
(In thousand VND)
6.1. INDUSTRY ECONOMIC FEATURES
Marketing innovation:
restaurants invest more to advertise their images
Changing lifestyles higher income + busier customers eating
out more frequently Growing buyers’ preferences for
differentiated products & professionalism in services customers demand higher
6.2. DEMOGRAPHICS
Hanoi Population: 6,448,837 people
Population density: high but not equally distributed
Average density: 1,979/km2
Dong Da ward: highest density, 35,341/ km² Average income per capital:
2,600,000 vnd/month
favorable condition for
service businesses
6.3. S.T.E.P FACTORS
Politics: Starting a business: takes 50days (2 days longer than
in the world)
Obtaining a business license: easy
Types of taxes:
• A license tax
• Value- added tax (VAT)
• Personal Income tax ( since 2009)
6.3. S.T.E.P FACTORS (CONT.)
Economy:
Steady economic development 2009
boosted cosumer foodservice.
Howerver
• In first two months 2010, CPI increased
3.15%
• Mar 2010, SBV pass through Agreed
Interest rate policy => higher i/r = 18%
• Prices of petrol, electricity& water:
increases
=> business incurs higher costs
Social Culture:
Dual working parents
• higher income
• busier
Þ eating out more often
Technology Advanced management softwares
Eg: eBizRes, OC Pro, POS software.
6.3. S.T.E.P FACTORS (CONT.)
6.4. FIVE FORCES ANALYSIS
Rivalry:
Competition is fierce
4 conveyor hotpot restaurants in Hanoi
• namely Kichi Kichi, F1, Genki and Hoa Binh Osaka
• financially intensively invested
• have already advantaged as the first movers to the market
Substitutes:
Substitutes: individual hotpot, buffet hotpots
Prices : relatively competitive too.
Customers’ perceived level of product differentiation: medium
threat is high
6.4. FIVE FORCES ANALYSIS (CONT.)
New Entrants: low entry-barrier: high (require large fund, expertise& management
Bargaining power of customers high substitutes are widely available buyers’ switching cost: low customers: price sensitive
Bargaining power of suppliers medium degree of differentiation of inputs: high many suppliers: VISSAN, Dong Phuong Food Com, King Ngu, VIKOTRA.
7.1. KEY SUCCESS FACTORS
high quality service enjoyable atmosphere with reasonable price at a convenient location
7.2. S.W.O.T ANALYSISHelpful
to achieving the objectiveHarmful
to achieving the objective
Internal
originattributes of the environ
ment
Strengths: Weaknesses: catch market trend-> excited to
customers prices: 10% lower than competitor restaurant exterior: stylish & elegant items: variable ( over 30 items) Professional staff
New brand
Lack experiences
Financial sources: limited
External
originattributes of the environ
ment
Opportunities: Threats:
located in the crowdest ward in Hanoi (Dong Da ward)
A new road nearby ( Xa Dan)=> sources of customers: huge
Higher inflation, higher prices of petrol, water,
electricity families cut down spending Diseases& food scandals: mad cow disease,
foot and mouth disease, H1N1, food poisoning,etc.
Operating costs: increase as the business is at early stage of development
7.3. COMPETITIVE ADVANTAGE ASSESSMENT
KichiKichi HoaBinh Osaka LachCachLachCach Location Convenient Convenient Convenient
Parking area Yes Yes Yes
Decoration Nice Scenic Stylish, elegant
Staff quality Nice & friendly but in peak time, they usually omit
customers
Unorganized, in peak time, they work in a mess
Unprofessional: talkative, curious,
irresponsive Nice, polite, responsive, friendly,
creative, well- organized
Food Normal Delicious Very delicious
Price 11 Expensive
Lunch: 190,000 VND
Dinner: 210,000 VND
Reasonable
100,000 VND
Waiting place No No Yes. Customers served w/ free fruit &
drinks when waiting
Official website No Yes Yes
Marketing strategy Yes Yes, but not much Yes
Others Poor conditioners: some customers are hot Good F
Internet & Wifi No No Free Wifi
KICHIKICHI & HOA BINH OSAKA
8. COMPETITIVE STRATEGYBest cost provider
Conveyor is implemented to cut costs. replace number of waiters/waitress
Þ lower HR expenses including salary, compensation and
management
Þ lower prices
Þ price offered 100,000 VND/person, free drinks
Þ In holidays and weekends, discounted.
8. COMPETITIVE STRATEGY(CONT.)
Best cost provider
High quality service
Staffs are well educated, friendly, responsive
Customers will be provided with a clear instruction how to
have meals
Those who have to wait also can seat at comfortable chairs
and are served with free drinks and food
Free WIFI
Use management softwares to control revenue, expense,
inventory, customer information and our HR
=> utilizing the capacity.
Sep 2010:
Form the business group
Raise funds: apply papers to banks
Nov 2010: Submit business start up registration
Jan 2011: Find location
Mar 2011 ( beg):Recruit process
Mar 2011 ( end): marketing campaign
Aprl 2011:
Sign lease contract
Decoration & build equipment
Train staff
Recruit process
30th Aprl 2011: Opening ceremony
9. ACTION PLAN