George Liveras The Case of the Polynesian

Restaurant Feasibility Study The Case of “The Polynesian” Restaurant / Lounge Bar Fribourg, Switzerland

Faculty Responsible: David HALL Prepared By: George Liveras Class: E70 BBA1 Date: 4th of August
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George Liveras The Case of the Polynesian

Signed Statement of Authorship:

I certify that the attached document is my original work. No other person’s work has been used without due acknowledgement in the text of this document.

Except where reference is made in the text, this document contains no material presented elsewhere or extracted in whole or in part from a document presented by me for another qualification at this or any other institution.

FULL NAME: DOCUMENT: SIGNED: DATE:

George Liveras Feasibility Study, The case of “The Polynesian”

7th of November

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George Liveras The Case of the Polynesian Executive Summary: The purpose of this project is to determine whether there is sufficient market demand for the Polynesian, Restaurant / Lounge Bar in the commercial centre of the Commune of Fribourg, Switzerland. By offering a unique concept and a product that is designed to be an experience as well as a night out, the Polynesian hopes to gain a competitive advantage over its competitors by providing added value and a product with value for money. To determine and position the establishment in the desired market the study includes a competitive and demand analysis, which in turn determines the operational estimates.

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George Liveras The Case of the Polynesian Acknowledgement: The following persons lent support and/or participated directly in helping making this project a success: School Faculty: Mr. HALL, David Dr. ROWLSON, John Mr. ROUX Dominique Mrs. MILLER, Barbara Mrs. CHARLESWORTH, Zarina Mrs. HU, Pia Mrs. BOSCACCI, Caroline Mrs. CLEMENT Caroline

Independent Sources: Mr. Mouaimis, Andreas: Owner of Fiji, Polynesian, Ayia Napa, Cyprus (00357-23-725925) Mr. Varnavides. A: Owner of Pago Pago, Polynesian, Nicosia, Cyprus (00357-22-712777)

Table of Contents: Executive Summary:.........................................................................................................3 -4-

George Liveras The Case of the Polynesian Acknowledgement:...........................................................................................................4 Table of Contents:.............................................................................................................4 Table of Tables:.................................................................................................................5 Table of Figures:...............................................................................................................6 1. Introduction...................................................................................................................8 1.1. Background of the Study: The Need and the Purpose...........................................8 1.2. The Concept.........................................................................................................10 1.2.1 Target Market Segments................................................................................10 1.2.2 Products and Services: Clear Customer Value...............................................11 1.3. Situation Analysis................................................................................................12 1.4. Methods...............................................................................................................12 1.4.1 Secondary Research.......................................................................................12 1.4.2 Primary Research...........................................................................................13 2.1. Defining the Market Area....................................................................................15 2.2. Demographics, Economics, and Other Characteristics........................................17 2.3. Project Site and Area Evaluation.........................................................................22 2.3.1 Site Description:............................................................................................22 2.3.2 Site Sustainability..........................................................................................23 2.4 Conclusion: Evaluation and Synthesis of Findings..............................................23 3. Competition Analysis..................................................................................................25 3.1. Identification of Potential Competitors................................................................25 Direct Competitors..................................................................................................27 3.2.2. Analysis of Competitions (Dining Attributes).........................................29 Indirect Competitors:..............................................................................................30 3.3. Conclusion Evaluate and Synthesise your findings.............................................31 4. Demand Analysis........................................................................................................33 4.1. Definition of Market Segments............................................................................33 4.2. Demand Estimates...............................................................................................34 5. Recommended Facilities and Services.......................................................................41 5.1. Defining the Concept...........................................................................................41 5.2. Designing for Profits............................................................................................42 5.3. Conclusion...........................................................................................................46 6. Estimated Operating Results.......................................................................................49 6.1. Assumptions ........................................................................................................49 Estimating Revenue................................................................................................51 Estimating Expenses...............................................................................................52 6.2. 5-Year Summarized Income Statement with Analysis and Interpretation...........56 6.3. Sensitivity Analysis with Contingency Plan........................................................57 Conclusion:.....................................................................................................................59 References:......................................................................................................................60 Appendices:....................................................................................................................63
Table of Tables:

Table 1: Function by Area and Seating Capacity............................................................45 Table 2: Restaurant Dining Room Tables by Type.........................................................46 Table 3: Hours of Operation: Restaurant........................................................................49 -5-

George Liveras The Case of the Polynesian Table 4: Hours of Operation: Kitchen.............................................................................50 Table 5: Direct Payroll....................................................................................................53 Table 6: Most Likely Scenario........................................................................................56 Table 7: Pessimistic Scenario..........................................................................................57 Table 8: Optimistic Scenario...........................................................................................57 Table 9: Polynesian Cuisine............................................................................................63
Table of Figures:

Figure 1: Primary Market Area, Fribourg Centre 2005..................................................16 Figure 2: Male to Female Ratio Fribourg 2003..............................................................17 Figure 3: Age Range of Commune of Fribourg (2000)..................................................18 Figure 4 Social Demographics Fribourg.........................................................................18 Figure 5: Evolution of the permanent resident population of Fribourg..........................19 Figure 6: Evolution of National Revenue and Cantonal Revenue..................................20 Figure 7: Project Site, the Polynesian.............................................................................22 Figure 8: Competitive Restaurants in Primary and Secondary Trade Area....................26 Figure 9: Street Map of direct Competitors in Primary and Secondary Area.................26 Figure 10: Sphere of Market Influence...........................................................................35 Figure 11: Frequency of eating out.................................................................................35 Figure 12: Maximum time customers are willing to travel to eat away from home.......35 Figure 13: Days which people eat out the most .............................................................36 Figure 14: Estimated Average Check for the Polynesian................................................36 Figure 15: Meal Periods Customers eat out the most.....................................................37 Figure 16: Restaurant Factors influencing the dining venue..........................................39 Figure 17:Functional Floor Plan of the Polynesian........................................................42 Figure 18:Polynesian Organizational Chart....................................................................44 Figure 19:Volume in (m2) by Function..........................................................................45 Figure 20: of Materials to be used per Revenue Centre..................................................46

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George Liveras The Case of the Polynesian

I. Introduction

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George Liveras The Case of the Polynesian 1. Introduction

The aim of this Feasibility study is to conduct a market study and build the structure for the set up of an “Ethnic”, “Theme”, Polynesian restaurant in Fribourg, Switzerland. The restaurant to be called “The Polynesian” will combine, Polynesian ethnic cuisine, in the form of both a dining experience as well as an atmospheric theme.

“There is an increasing trend of themed restaurants and ethnic cuisine. Consumers are looking for more variety and entertainment from an eating out experience,” (Anonymous, 2003)

Another market trend is that of healthy food and healthy eating. With the sudden increase in food health awareness brought about by medical as well as commercial media, customers in Europe are focusing greater on a healthier diet. (Thomas, J., 1995) The “Polynesian” therefore, aims not only to enter the market as a new restaurant but also to follow the growing trend for healthy eating and serve among others health conscious customers.

1.1. Background of the Study: The Need and the Purpose
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George Liveras The Case of the Polynesian According to Longbottom, 2001 although consumers today are more demanding and articulate on their eating and drinking requirements, they eat less, focusing greater on their choice of dishes. Based on Long bottom’s views therefore the proposed establishment sets to capture the market of Fribourg by incorporating the current trends of the restaurant industry with that of consumer’s wants and needs. The selection of the restaurant’s concept is supported by the growing trends for ethnic themed restaurants and healthy eating. A web site, www.preparedfoods.com, explains that “theme” and “ethnic” restaurants have emerged, driven by consumers who are eager for new experiences and by new immigrants coming into the country. Ethnic cooking has become a popular trend since people travel more and are exposed to new tastes, Weinraub (2005). Particularly in Switzerland, “High levels of immigration in the 1980s and 1990s has resulted in a host of Turkish, Arabic and, to a lesser extent, East Asian eateries opening up in towns and cities across the country” (Micheloud & Co, 2004). Due to the fact that Female clientele, are more health and diet conscious and the ever-increasing role of women (working mothers) in the economy, the “Polynesian” sets to serve a menu that is both tasty but also healthy as well as fulfilling the need for a lunch time take away service. According to Halperin, 2002 and Gardner, 2002, women’s acute interest in their appearance and how the other sex perceives them and their ever increasing role in the community shows sustainable demand for healthy eateries with take out services in order to compensate home cooked meals at home.

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George Liveras The Case of the Polynesian

1.2. The Concept
“The Polynesian” is intended to be a casual mid scale restaurant including a lounge bar with a Polynesian element to fit the theme. The restaurant to be serving Polynesian cuisine focuses greatly on Asian, fish specialties and poultry, providing numerous of vegetarian as well as healthy food dishes, selected from Hawaii, Tahiti, New Zealand, Tonga and Samoa. In addition grill specialties, supporting healthier cooking, are also incorporated in the Polynesian element. Grill specialties are healthier and offer a larger variety for a wider range of clientele. In all, although the restaurant concept is Polynesian, the menu will be adapted to the local Swiss market of Fribourg and its immediate surroundings. In order to best present the initial concept, the researcher will evaluate the “idea” in accordance with, (1) target customers and their needs and wants, and (2) products and services: clear customer value. 1.2.1 Target Market Segments The target consumers of the restaurant will be students, local residents, shop clerks, day time shoppers and businessmen. The reasons for these selections are the high volume of schools and Universities in the area as well as the shopping district itself and nearby businesses. Despite the fact that ethnic cuisines have a relatively small demand in Switzerland, of only 1% compared to that of the traditional Swiss cuisine 17%, there is a plethora of restaurant demand specialties in Switzerland (Source :Switzerland Tourism in Figures, 2004) (See Appendix 1: Restaurant Demand Switzerland) supporting the concept.

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George Liveras The Case of the Polynesian The Polynesian sets to capture firstly the international foreign market of Fribourg who are more inclined to international cuisines, and that of the young adult population between the ages of 29 to 40. This age group tends to be regarded as a market demanding a wider diversity in forms of entertainment and Cuisine and also tends to have the highest disposable income as well as the largest propensity of eating out (Hensley, 2000). From the food marketing perspective, as well as concentrating on the female segment as a driving force, the management aims to develop a healthier menu, smaller in portion size and tasteful to the palette of men and women alike. Customer segmentation will be further explained using Geographic, Demographic Psychographic and lifestyle models. 1.2.2 Products and Services: Clear Customer Value “Customer Value refers to the consumer’s assessment of the product’s overall capacity to satisfy his or her needs” (Kotler et al, 2005). Having already defined the concept and our target market, “The Polynesian” sets to capture the market as a unique concept and the first Polynesian, ethnic, themed restaurant in Fribourg. In addition the establishment will follow a fusion concept of Polynesian islands cuisine. This multicultural fusion of “Asiatic” cuisines will be more greatly adaptable, giving customers a variety of tastes to choose from. The restaurant also intends to provide a healthy quick service take out, for lunch and dinner increasing the total market share, supporting the shop clerk and business target market in the area. The restaurant and lounge bar, incorporated in the Polynesian theme, will be a mid – scale table service, of a mid price nature.

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George Liveras The Case of the Polynesian

1.3. Situation Analysis
The restaurant is set out to be located in close proximity to the university on rue de l’hopital and in walking distance to the shopping district of Avenue de la Gare. This area was chosen to be desirable due to its strategic positioning in the heart of all out target markets. The proposed site location is 10 minutes walking distance to the train station, 5 minutes from the shopping centre but most importantly in the immediate area of the University of Fribourg. In addition the proposed location is relative to “traffic patterns in the area, visibility, competition, size, access, parking and price” (Rande, 1999).

1.4. Methods
The market research methods that the researcher will use, will determine if “The Polynesian” will be feasible or not. Methods will consist of both secondary and primary research. 1.4.1 Secondary Research Secondary research refers to data collected from books or text written by an expert on a subject (Cooper and Schindler, 2003). Secondary data will be collected from the Fribourg Development Agency as well as from the Fribourg Tourist Office. Information to be collected includes supporting academic peer reviewed articles from the Internet as well as secure on line libraries as well as articles from books on all subjects affiliated with this study. As concerns statistical data, the researcher aims to consult the Fribourg, development and Statistical agencies.

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George Liveras The Case of the Polynesian 1.4.2 Primary Research Primary Research is defined as information or data collected from the natural world (Cooper and Schindler, 2003). In view of primary research to be conducted, a multimethod observational approach will be undertaken under the view of a preliminary pilot study to determine if the restaurant could be feasible in the proposed area and whether or not it will be appealing to the restaurants target markets. As part of the primary research the researcher plans to conduct a survey on the concept of the Polynesian theme and also form a semi structured interview with the owner of a similar Polynesian restaurant in Cyprus, concerning the nature, concept and overall feel of Polynesian cuisine.

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George Liveras The Case of the Polynesian

II. Market Area Characteristics

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George Liveras The Case of the Polynesian 2. Market Area Analysis

In this section the aim of the author is to determine whether there is sufficient demand for the Polynesian concept in Fribourg, based on Demographic, Economic trends and income potential.

2.1. Defining the Market Area
The Polynesian will be located in the district of Sarine in Fribourg. Sarine was chosen as a market base, due to the fact that it holds the largest population percentage share. (See Appendix 2: Districts of Fribourg by Population Density).The restaurants to be located in the shopping district at Rue de Romont 2 1700 Fribourg, on the crossroads of rue de L’hopital and rue de Romont, (See Figure 1: Primary Market Area, Fribourg Centre, 2005) was chosen due to its strategic location. It is 10 minutes by foot from the train station as well as being 5 minutes away from the University of Fribourg. Infact the site area can be reached by all means of transportation from the surrounding regions in less then 45 minutes using the A12 Highway (Fribourg Development Agency, 2005). In addition the site was chosen due to the high density of competitors on rue de Romont positioned so, as to capture walk-ins from the shopping district.

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George Liveras The Case of the Polynesian

Figure 1: Primary Market Area, Fribourg Centre 2005

Source: Swiss-info GEO, 2005

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The Case of “The Polynesian” George Liveras

2.2. Demographics, Economics, and Other Characteristics
Demographic Characteristics: With the intention of being an ethnic food themed restaurant, “The Polynesian” aims to appeal to a target market of young generation Y and also that of female clientele. The communal age of the majority in Fribourg, 23,373 (65 %) are between the ages of 20 to 64, years old, (See Figure 3: Age Range of Commune of Fribourg, 2000) whilst 18,953, (52.07%) more than half of the communal population, are women (Statistics Fribourg 2000).
Figure 2: Male to Female Ratio Fribourg 2003
Male to Female Ratio Fribourg (2003)

Gender Type

Female

52%

Male

48%

46%

47%

48%

49%

50%

51%

52%

53%

Percentage of total population

Source: (Statistics Fribourg 2000)

The majority being women is a major strength for “The Polynesian”, since according to (Halperin, 2002); Women are more diet conscious and more aware of the increasing variety of emerging ethnic cuisines. In addition women between the age group of 25 to 39, with children are also more predisposed to healthy eating than men. “The Polynesian” will thus promote itself concentrating on the female population as the driving market force by providing a menu which will be healthier and smaller in portion size however palatable to both men and women.

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The Case of “The Polynesian” George Liveras

Other target markets incorporating women include Yuppies and Dinks. Yuppies and Dinks are acronyms for Young Urban Professionals, and Double Income No Kid’S. According to (Kotler et al, 2005) and (Gastro Suisse, 2004), Yuppies, between the ages of 20 to 30, tend to have a higher frequency of eating out, whilst Dinks tend to be more family oriented in their choice of dining venues as well as more price sensitive. Both groups are behaviourally described as having the tendency of dining at trendy locations and enjoy luxury items.
Figure 3: Age Range of Commune of Fribourg (2000)
Age Range of Commune of Fribourg (2000)

65 +

15%

Age

20 - 64

66%

0 - 19 0% 10%

19% 20% 30% 40% 50% 60% 70%

Percentage of Population

(Source: Swiss Federal Statistical Office, 2005) According to Federal statistics, Fribourg has a large student and recent graduate population. Fribourg has 18.623 students incorporating 52.4% of the total communal population. Henceforth one of the direct projected target customers are to be students.
Figure 4 Social Demographics Fribourg
Social Demographics Fribourg
Widows Social Status Divorced Married Single 0% 10% 20% 30% 40% 6% 6% 38% 50% 50% 60%

Percentage of the Total Commune of Fribourg

(Source: Swiss Federal Statistical Office, 2005) -18-

The Case of “The Polynesian” George Liveras

Most of the other half 17,825, (50.14%) Almost 17,825 which stands for (50%) of the gainful population are single whilst 13,581 (38%) are married (See Figure 4: Social Demographics Fribourg, 2000). Having both sexes working, it is plausible to assume a higher disposable income and less available time to cook. This is due to the fact that there is a limitation on the lunch break time, which lasts from 12 to 1.30 p.m. (Source: Swiss Federal Statistical Office, 2005). For this reason the Polynesian incorporates a take away function in its operation.

Economic Indicators: According to Pittet, M (2004) Fribourg’s population growth has been rising dramatically these past 20 years, as a result becoming the 10th largest city in Switzerland (Switzerland Statistics, 2005).
Figure 5: Evolution of the permanent resident population of Fribourg

Source: Pittet, M (2004)

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The Case of “The Polynesian” George Liveras

According to the Fribourg Development Agency, 2004, Fribourg has a rising economy due to the following reasons: •
Salaries and living costs are on average 20% to 30% lower than both Zurich and Geneva thus making the purchasing power about the same as in the two cities.

Taking into consideration that the salary of expatriates is not always adapted to this Swiss phenomenon, to live in the canton of Fribourg allows foreign investors to enjoy even more purchasing power

The Canton of Fribourg provides new businesses and foreign investors with low tax rates and financial support.

Fribourg has an unemployment rate of 2.90% whilst the average unemployment of Switzerland is 3.70% and an inflation rate of only 1% in respect to a national inflation rate of 1.90%.

Figure 6: Evolution of National Revenue and Cantonal Revenue

Source: Pittet, M (2004)

These benefits are an advantage for the restaurant, since a rise in foreign immigrants increases firstly Investment, due to Fribourg being an attractive market, resulting in an increase in money supply. This increases the standard of living and thus affects the economy of Fribourg positively, i.e. People have more money to spend.

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The Case of “The Polynesian” George Liveras

Consumer Spending Behaviour: According to (Kotler et al., 2003) behavioural segmentation, ties consumers together based on their knowledge, attitude, use or response to a product. The female target segment has different behavioural criteria in their dining habits. The addition of children to our customer base at this age frame, impacts on guests dining patterns and selection criteria. Factors of location and distance have thus been heavily taken into consideration supporting the decision to select the city centre as the ideal location for our establishment. This particular age group of “Dinks” is price sensitive due to housing and family oriented expenses. The aforementioned supports the researchers’ decision of being a casual mid priced restaurant. It is therefore concluded that our proposed restaurant will satisfy the characteristics of the above groups.

Future Development in the Market Area: As a result of a domestic survey done in Switzerland by the Swiss Graduate School of Public Administration in 2005, Fribourg was found to hold the highest quality of life in Switzerland in accordance to 5 categories:  living conditions  economic dynamism  culture/health/social environment  environment/traffic  Politics/institutions. This will do nothing but increase the cantons growth and encourage domestic travel, giving way to new opportunities for a unique restaurant concept such as the Polynesian.

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The Case of “The Polynesian” George Liveras

2.3. Project Site and Area Evaluation
2.3.1 Site Description:

The site of “The Polynesian” is to be located on the crossroads of rue de L’hopital and the pedestrian shopping district of rue de Romont. The reasons supporting this decision is to have access to the three demand generators of the immediate market area, whilst still being in close proximity to key Access points and traffic densities. The three demand generators, taken into consideration are the University, the Shopping districts and the Business District of Fribourg’s commercial centre. (Please refer to Appendix 3 and 4 for Broad geographic description & Meal periods and location guidelines).

Figure 7: Project Site, the Polynesian

.
Source: Tele Atlas 2005

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The Case of “The Polynesian” George Liveras

2.3.2 Site Sustainability In terms of the sites competitive point, the site can be reached by train, car, as well as by foot due to its centralised location in the commercial canter. The Project Site is surrounded by commercial shops, cafés, restaurants as well as cathedrals and museums as well as being positioned in the heart of its competition. This as a result enhances visibility and eventually the establishment’s fair share. (See Appendix 5: Site Sustainability)

2.4 Conclusion: Evaluation and Synthesis of Findings
In accordance to data presented by the Market area Analysis and The Project Site Evaluation, it is the author’s view that the market and area selected for the establishment is favourable. The reasons supporting this are: • • • • Fribourg is becoming an upcoming market The restaurant itself offers a multifunctional approach to its different target markets It is unique in concept and style, in relation to the existing competition in the area That it is a restaurant adapted to the market and not vice versa

A weakness or disadvantage to the area is the fact that opportunity and money to be made will attract greater competition in the long run.

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The Case of “The Polynesian” George Liveras

III. Competitive Analysis

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The Case of “The Polynesian” George Liveras

3. Competition Analysis In the case of “The Polynesian”, as there is no other Polynesian restaurants in Fribourg, (Observational research, 2005) the objective is to identify and perform a benchmarking evaluation on our closest competitors as well as position the restaurants potential to them. To accomplish this analysis, various tools will be used such as Porters five forces as well as a Swot analysis. Methods used focus on the internal and external factors (Micro and Macro) affecting the restaurants competition. Findings from SWOT & Porters Five Forces: The outcomes of the two marketing strategies mentioned above indicate a favourable political stability in the area and an increase of people’s concern for their health and diet. The Polynesian cuisine satisfies very well the above concerns

promising great potential for success. (Please refer to Appendix 6 & 7 for Porters Five Forces and SWOT analysis).

3.1. Identification of Potential Competitors
In the canton of Fribourg specifically in the city centre, there is a lot of competition. This is due to the fact that although people have more disposable income they have less time and thus can not afford to travel too far for a bite to eat. The majority of restaurants can be found in the region of my prospective location, the reason being, that restaurants in the area target, walk- in customers. (See Appendix 5: Project site competitive position)

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The Case of “The Polynesian” George Liveras
Figure 8: Competitive Restaurants in Primary and Secondary Trade Area

Source: (Map.Search.CH), (Observation, 2005) Figure 9: Street Map of direct Competitors in Primary and Secondary Area

Source: (Map.Search.CH), (Observation, 2005)

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The Case of “The Polynesian” George Liveras

Direct Competitors In both the primary and secondary area the author has identified four competitors which are considered to be direct (See Figure 9: Street Map of direct Competitors in Primary and Secondary Area). Both these areas have been selected according to the demand generators in the area as well as walking distance from and around the “Polynesian”. Being that there is no other Polynesian restaurant in Fribourg; competitors were chosen to be any establishment which is the closest substitute to the Polynesian. In this way the author selected the Asian restaurants in closest proximity having a similar price range, as well as restaurants that target the same target market. Reviewing the analysis of Physical and Dining attributes, the Fu Lin restaurant seems to be the closest competitor to the Polynesian offering a similar product at a similar price range, at the closest proximity to the Polynesian. The Fu Lin however lacks the atmosphere and ambience of service that is set to be provided in the Polynesian. The Plaza Lounge Bar although not similar in cuisine is considered to be a direct competitor due to its multifunctional concept and influence it holds over our target markets.

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The Case of “The Polynesian” George Liveras

3.2.1. Analysis of Competitions (Physical Attributes)
Product & Service Opening Times Location
Rue de Romont1 1700 Fribourg / FR. 10 minutes walking distance from the station. Av. de la Gare 8 1700 Fribourg / FR. 5 minutes Walking distance from the station and 10 from the Polynesian. R. du Criblet 13 1700 Fribourg / FR 2 minutes walking distance from the Polynesian R de Lausanne 81 1700 Fribourg 3 minutes walking distance form the Polynesian R de Lausanne 91 1700 Fribourg 2 minutes walking distance form the Polynesian

Property Name

Accessibility
Underground parking facilities with room for a 1000 cars are situated on rue de l’hopital and Grandes Place, as well as parking spots near the station. On main avenue with parking facilities available at the train station. (Parking is limited during the day at peak hours) Gets access to customers from COOP city On back streets behind rue l’hopital (hard to locate). Access to underground Parking on rue l’hopital Being on the pedestrian road of Lausanne it has access to parking on rue de l’hopital Being on the pedestrian road of Lausanne it has access to parking on rue de l’hopital and has good visibility

Visibility
The building although visible from the street will have a unique theme that will enhance its visibility greater. Positioned directly in front of the station and coloured red it catches the passerby’s attention effectively.

Exterior
The exterior will mirror the Polynesian theme giving ambience as well as attracting passer-by’s for a unique experience Un-inviting unattractive side entrance brings down the quality standard. On busy dirty street

Interior
120 seats, 2 profit centers: Dining Room Lounge Bar All decorated in Polynesian theme. 40 seats, crammed in front moderately decorated Meal Periods 11:30a.m –2pm 6p.m. – 11p.m Lounge Bar 11:30am-11:30p.m

Independent casual midpriced, themed Restaurant & Lounge Bar offering Ethnic Polynesian dishes for lunch and dinner. Take away service provided Independent casual midpriced Chinese restaurant with table service a la carte menu, serves lunch and dinner. Take away and delivery service provided. Independent, cheap fast foods, deli with eat or take away menu. Independent causal mid priced chinese restaurant with table service a la carte menu, serves lunch and dinner Independant formal Restaurant, Lounge Bar and Club offering 3 meals a day.

China Town

Meal Periods 10:00am – 11pm

China Fast Food

Restaurant Chinois Fu -Lin

poor visibility No signs on the road and located in the back roads of rue l’hopital. Although on the pedestrian road its hidden next to the plaza and people tend to miss it. Very visible. Its the biggest building on the road has big terrace and has 4 functions

Poorly decorated Uninviting hardly understand it’s a Chinese rest. Exterior is very poor; it has a big menu in front but poorly attended terrace.

15 bar stools with 5 small tables. Open kitchen and fridges for self service. Fast Food Concept 80 seats interior in dark wood has a fish tank to relax Interior is modern welcoming and Professional. It aims to impress and attract serious clients.

Meal Periods 11.00am - 10:30pm Meal Periods 11.00am - 12:30pm

Plazza / Lounge

Exterior is big however terrace in front again is un attended and un attractive

Meal Periods 10:00am - 12.00pm

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The Case of “The Polynesian” George Liveras

3.2.2. Analysis of Competitions (Dining Attributes)
Property Name Menu Price Range (CHF) Beverage Service Service Style Atmosphere Special Characteristics

Lunch, Dinner & Take out: (Main Courses) Polynesian Chicken, Pattaya Duck, Lounge Bar: Alcoholic/ Non alcoholic cocktails and light snacks will be served. Lunch, Dinner and Take Out: Wanton Soup Rice duck with Vegetables Lunch / Dinner & Take out : Hot and Sour Soup Sweet and Sour Chicken Lunch / Dinner & Take

Starter: (one person) 6 - 13 (For Two) 12 - 16 Dinner: 14 - 35 Dessert: 5 - 12 Bar: 3.4 - 60

The bar will have the function of a customer waiting area, lounge bar and will also be a beverage service station for the restaurant itself

The service style is to be Informal table service, were customers will be served. Tables will be set with disposable mats all in the Polynesian theme The service style is casual table service. Customers are served and tables are set on disposable mats. Casual fast food service. Food served over the counter The service style is informal table service dressed in white linen and china. Moderate chinese design The service style is formal table service dressed with linen and china, all in line with the modern lounge concept.

120 Seats - Restaurant 30 Seats - Bar Restaurant: 38 tables Both the lounge bar and the dining room will have fire exits. Polynesian Theme

The restaurant provides an open Kitchen and does take away orders on command for lunch and dinner. The Bar is designed to look like a boat.

Starter:

Restaurant: 40 Seats Narrow entrance and rectangular seating area in the back. Has no particular feel. 15 seats 5 tables rectangular restaurant has no particular feel poorly decorated 80 seats Rectangular restaurant has a moderate feel of a zen chinese restaurant. Moderately decorated Deep rectangular space with a large kitchen and a modern ergonomically design to separate the three profit centres as well as flexible to be No special Characteristics Restaurant has a big Chinese painting on its wall at the back giving character and has a salad bar. No special characteristics apart from cheap prices

China Town

(one person) 3.5 -6.5 Dinner: 10.5-18.5 Dessert: 4.5-10 Bev: 4.5 – 50 Starter : (one person) 4 - 5 Dinner : 9 -14 Dessert : 4 -7 Drinks : 2 - 60 Specials : 10.00 Starter : (one person) 6 - 8 Dinner : 15- 25 Dessert : 7 - 10 Drinks : 8 - 80 Specials : Starter : (one person) Dinner : 18-35 Dessert : 8- 12 Drinks : 6 -90 Specials : 15.00

The bar acts as a beverage service station for the restaurant. Offers alcoholic beverages Has no bar however serves drinks both alcoholic and non (beers) available in fridges. The bar acts as a service station and as a sur place bar serving patrons who only want to sit at the bar. The bar has a function of a restaurant service station as well as service to the Lounge bar

China Fast Food

Restaurant Chinois Fu – Out Spring Rolls Lin

Orange Duck Lunch & Dinner Ceasar Salad Beef Steak Chocolate cake Lounge Bar Sandwich menu

Plaza / Lounge

A tremendously flexible environment that can be adapted to the daily function of the plaza. Lounge bar turns into club in the evening.

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The Case of the Polynesian George Liveras Indirect Competitors:
Name Of Property Cuba Bar Café

Location

Concept & Reason for competitor
The Cuba bar is the only theme bar in Fribourg. In this sense it is regarded an indirect competitor. It also captures the Latin speaking student population of the university. T.M. café and wine bar captures the beverage world of Fribourg in a trendy modern atmosphere. Presently it attracts the highest percent of university students. Fast Food restaurant Concept provides hamburgers at cheap prices. Targets the youth of Fribourg.

Product & Service
Independent Cuban Theme bar & cafe, offering alcoholic and Non alcoholic beverages as well as serving Coffees and other hot beverages. Also serves light snacks. Independent Café / Wine Bar, offering alcoholic and non alcoholic beverages as well as serving hot beverages. T.M also sells light snacks such as Tacos. Franchise Fast Food restaurant serves a range of burgers salads and deserts and cheap prices.

Price & Opening Times
Beer: 3.90 Coffee 2.50 Cuba Bar Café 7:00 - 23:30 Beer: 5CHF Coffee: 4CHF T.M. Café 7:00- 24:00 T.M. Bar 16:00-24:00 Big Mac Menu 12.00CHF McDonalds 9.00-23:00

Rue de Romont 1 1700Fribourg/Fr Opposite the Polynesian

T.M. Café

Rue de Romont 29-31 Postal Box 598 1701 Fribourg/Fr 2 minute walking distance from the Polynesian

McDonalds

Rue de Romont 15, 1700 Fribourg/Fr 1 minute walking distance from the Polynesian

Indirect competitors in our Primary market area were selected to be any establishments with a unique concept that threatens the Polynesian by capturing the same market segment. In this case the market segment is University students. These competitors were also categorised as indirect as they are mostly bars and cafes, very different to the Polynesian.

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The Case of the Polynesian George Liveras

3.3. Conclusion Evaluate and Synthesise your findings
By observing the competition, The Polynesian seems to offer a concept unique to its own, however Substitute services are found to be plentiful. What will give the Polynesian a competitive advantage will be the extent to which the Theme will be incorporated in the establishment transforming a night out, to a unique dining experience. Ambience and atmosphere will therefore be used to differentiate the Polynesian together with a healthier menu and value for money. Using this strategy the restaurant will use its unique concept and product to stand out from both direct and indirect competitors.

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The Case of the Polynesian George Liveras

IV. Demand Analysis

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The Case of the Polynesian George Liveras 4. Demand Analysis In the case of the Polynesian the author aims to determine the market demand for the restaurant by answering the following questions: 1. What type of traffic flow and dining demand could be captured in the target area? 2. What do local demographics and lifestyle characteristics suggest about market demand? As part of the Demand Analysis Primary research methods the researcher conducted a pilot study and issued a questionnaire (See Appendix 8: Questionnaire) as to determine the overall view customers have for the concept as well as to determine measurable estimates according to feedback concerning traffic to be expected at the Polynesian.

4.1. Definition of Market Segments
In order to segment the target groups of the proposed concept, the author will use demographics to determine the site potential on a micro and macro perspective
Table 1: Demographic and Consumer Expenditure Potential Household Income Age
Monthly salaries in Fribourg as in the rest of Switzerland range from as low as 3000 CHF and soar to a maximum of 8000 and above. On average the majority of Swiss citizens, (26.8%) receive an income between 4000 to 5000 CHF a month. From this salary, which adds up to 58,500 CHF a year, 9.4 % (Brachinger, 2003) is allocated on average to restaurants and hotels. This means for a person receiving a monthly salary of 4,500 CHF, 423 CHF per month will be allocated for dining out. Fribourg’s dominant age demographic ranges between the ages of 20 to 64 + (Fribourg statistics, 2003). Domestically the average age for Switzerland ranges from 35 to 40. This is due to the fact that Switzerland is faced with aging population as a result of a longer life expectancy and fewer births. Adults between the ages of 35 to 54 have higher incomes resulting in more spending. Adults however in this range are also in their prime years for raising children and thus tend to spend less on dining out. (50.14%) of the people of the dominant age 20-64 are single and therefore have more disposable income. A further 15% refers to people from 65 and over which is still a considerable amount of a market that we can focus on. In the canton of Fribourg the average family size was found to be 2.5 (Swiss Federal statistics, 2000). Whilst (50.4%) of the commune of Fribourg was found to be single, only (38.2%) of the residence of Fribourg are married. According to Ryan, (2003) one person households generate the highest per-capita spending on food away from home. 62% of the communal population of Fribourg lies in the tertiary, i.e. service sector (Statistics Fribourg, 2003). The three most common service jobs within this sector are administration, intermediary professionals and thirdly restaurateurs and hoteliers. The service sector includes positions from low level to high level management. Persons positioned in managerial and professional occupations spend the most on food away from home (Ryan 2003)

Household Size Occupation

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The Case of the Polynesian George Liveras
Based on Table 1: (Demographic and Consumer Expenditure Potential), the author identifies Four major segments which dominate the market of Fribourg. Each group had different needs and wants as well as behaviour and lifestyle practices which are considered in the operational aspect and strategy of the Polynesian. Target Markets include: Students (Yuppies), Shop clerks, Businessmen, as well as private households (Dinks).

4.2. Demand Estimates
Students: According to (www.bfs.admin.ch) the canton of Fribourg has approximately 19,000 students from the first to last stage of education. Assuming that Fribourg is the capital of the Canton, and that the university of Fribourg is located next to the Polynesian, it is estimated that 7,600 (40%) of students are based in Fribourg. From this group the Polynesian expects to capture 3,040 (40%) Since the theme of the restaurant is an original concept which is designed to attract a younger clientele.

According to the average check of both competition and feed back taken from the questionnaires it was found, that on a general average, the average check for a concept such as the Polynesian, should be approx 40 CHF. Respondents to the questionnaire claimed that on average they spend 500 to 1000 francs on food away from home each month. This accumulates to 9000 CHF, per person per year.

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The Case of the Polynesian George Liveras Although students were initially expected to be price sensitive, due to their dependant nature it was found as per feedback from the questionnaire, that they eat away from home frequently (See Figure 11: Frequency of eating away from home). According to the Questionnaire issued, customers were prepared to travel a maximum of 30 minutes to eat at the Polynesian (See Figure 12: Maximal Length of time to eat away from home). Being that the most frequent means of transportation is walking according to this survey, this gives the Polynesian a demand market of 500m from and around the site. (See Figure 13 below)
Figure 10: Sphere of Market Influence

(Source: www.map.ch) Figure 11: Frequency of eating out Figure 12: Maximum time customers are willing to travel to eat away from home

6. Frequeny of eating away from home
Percentage of Total
60% 50% 40%

15. M aximal le ngth of time customers are willing to trave l to eat away from home .
55%

Respondants

35% 30% 25% 20% 15% 10% 5% 0%

33% 25% 10% 3%
Once a month Twice a month Once a Twice a Three week week times a week More than three times a week

13%

13%

5%
Never

30% 20% 10% 0%

30% 15% 0% 15 Minutes 30 Minutes 45 Minutes More than 45 Minutes

Fre que ncy

(Source: Student Questionnaires, 2005)

(Source: Student Questionnaires, 2005)

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The Case of the Polynesian George Liveras

As regards student’s lifestyle and behavioural characteristics, students have been found due to their young age and active lifestyles (Generation Y), to be experimental and heavily influenced by foreign elements such as fashion, trends, as well as prices. Although this can be taken positively due to their young age, it is criticised that the shelf life as concerns this market segment is unpredictable.

In response to the questionnaires, although respondents were unaware of Polynesian cuisine they expressed a keen desire of trying it out. Taking into account the lifestyle affiliated with both students during their busy work schedule it is projected as being supported by the questionnaire, (See Figure: 14) that the peak days for the Polynesian will be on the weekend, especially on Saturdays.
Figure 13: Days which people eat out the most Figure 14: Estimated Average Check for the Polynesian

7. Days which people eat out the most
Days which people eat out the most

21. Average check paid at casual restaurants in Fribourg
50 CHF 15% 25% 35% 20% 5% 0% 10% 20% 30% 40%

Sunday Saturday Friday Thursday Wednesday Tuesday Monday 0%
0% 3%

13% 35% 25% 10% 15%
Price Range 45 CHF 40 CHF 35 CHF 30 CHF

Percentage of Respondants

10%

20%

30%

40%

(Source: Student Questionnaires, 2005)

(Source: Student Questionnaires, 2005)

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The Case of the Polynesian George Liveras

Shop Clerks: Having already stated and confirmed by use of the questionnaire, that the site area is found in a commercial area, and the demographic ration of men to women being approximately 50:50, it is to the researchers opinion that this segments shows potential as to lunch time and take away sales during the lunch break 12 to 1:30 p.m. Although primarily respondents answered that they eat out mostly at dinner, Lunch break showed a 35% promise (See Figure: 16). Shop Clerks could be categorised by the majority being recent graduates with a part time job. This segment is generally single, has a high disposable income as they are living alone however are pressed for time. It is projected therefore that this segment will take advantage of the take away service, as a result having a lower average check than the student segment, who eat in however would tend to be more frequent customers and usually order during the week rather than the weekend.
Figure 15: Meal Periods Customers eat out the most
8. Meal Periods Customers eat out the most

Breakfast 0% Lunch 35% Dinner 65%

(Source: Student Questionnaires, 2005)

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The Case of the Polynesian George Liveras

Businessmen: Located to commercial as well as financial centers the Polynesian hopes to attract neighbouring business companies as well as foreign investors in hopes of encouraging company lunches and dinners. According to (Ryan 2003), persons positioned in managerial and professional occupations are considered to be the most loyal segment as well as the highest spenders in relation to food eaten away from home. Due to the fact that business lunches are usually paid by the company it will be reasonable to assume that the Average check for Business clientele be higher than that of students. According to the Questionnaire, as well as personal observation, Businessmen eat out mostly during the week, rather than the weekend and eat mostly at lunch time or have early dinners.

Private Households: Private households of two working parties, i.e. D.I.N.K.S. depending on their age range have different spending habits as well as a different taste in the restaurants they eat. The addition of children usually influences the couple’s choice. The Polynesian aims at attracting this segment with its healthy menu and unique concept. This segment usually is price sensitive and could also contribute to take away sales as they have no time to cook.

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The Case of the Polynesian George Liveras

Conclusion: In conclusion, according to demographic, behavioural and lifestyle

characteristics, as well as feedback collected from the questionnaire, the above segments have shown to form enough demand to justify the sustainability of the Polynesian in relation to its competition as well as its potential market share. According to the questionnaire all groups outlined that the most important factor as regards their choice in restaurants as being the Food and serviced quality ( See Figure 17: Restaurant Factors influencing choice of dining venue ) where as although 75% consider healthy eating important still consider that the food taste is their first priority.
Figure 16: Restaurant Factors influencing the dining venue

9. Restaurant Factors by Importance whe n choosing a restaurant
Parking Popularity of the Restaurant Food and Service Quality Location Price 0% 5% 10% 15% 20% 20% 20% 25% 30% 17% 19% 25%

Restaurant Factors by Im portance when choosing a restaurant

(Source: Student Questionnaires, 2005)

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The Case of the Polynesian George Liveras

V. Recommended Facilities and Services

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The Case of the Polynesian George Liveras 5. Recommended Facilities and Services

5.1. Defining the Concept
Table 2: Defining the Concept Restaurant Size : Operating Hours / Days of operation Meal Periods : Lounge Bar Periods: Operating Hours / Days of operation Meal Periods : Lounge Bar Periods: Location: Atmosphere: 20m x20m = 400m2 Monday to Friday (Closed on Tuesday) 11:30a.m. – 2p.m. / 6p.m. – 11p.m. 11:30a.m. – 11:30p.m. Saturday & Sunday 11:30a.m. – 2p.m. / 6p.m. – 11p.m. 11:30a.m. – 11:30p.m Rue de Romont 2, 1700 Fribourg The restaurant will hold a formal feel to it however; will be evenly blended with the Polynesian theme. The lights will be dim as to bring down tension and bring customers out, to the world of the Polynesian. The whole atmosphere aims to attract the 5 senses, Sight, Touch, Hearing, Taste and Odor. Menu Type Product Price description Starters Chicken Spring 8.71 CHF Rolls Soups Corn and Crab 7.50 CHF Chowder Smoked Duck Vegetable & 8.50CHF Side Dishes Salad Main Course

Restaurant / Take Away Menu: Pricing: Menu pricing for both the restaurant and Bar menu was benchmarked according to the two direct competitors in the area: Fun Li and China Town. In addition the main signature dishes were priced taking into account a 33.4% Food cost.

Pacific Polynesian Sea Bass
Banana Boat Rangoon Cappuccino

24.55 CHF

Desserts

8.50 CHF

Bar Menu:

Coffee/ Tea Alcoholic Cocktails Non-Alcoholic Cocktails Wines Sports Drinks Spirits Beers Light Snacks

Pina Colada
Summertime Barbarian Red / White / Rose Coca – Cola (5.dl) Whiskey J&B Heineken Coconut Shrimp

3.50 CHF 11.50 CHF 8.50 CHF 14.50 -. 19.50 CHF 4.00 CHF 8.00 CHF per glass 4.50 CHF 7.50 CHF

Service Style : Lunch & Dinner Service :

Table Service, American, Family

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The Case of the Polynesian George Liveras

5.2. Designing for Profits
Figure 17:Functional Floor Plan of the Polynesian

Back of the House Front of the House 1. Freezer 2. Storeroom 3. Back Kitchen 4. Receiving office 5. Staff Toilets 6. Changing Rooms (Men) 7. Changing Rooms (Women)

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The Case of the Polynesian George Liveras Functional Relationships
Table 3: Functional Relationships

Front of the House:
Customer Service Area A customer service area for the purpose of the restaurant will be divided in two sections: 1 The guest waiting area, (Since there is a lounge bar in “The Polynesian”, walk in guests will be seated in the lounge bar while they wait for their table) 2. The reservation and cashier desk. The seating capacity for the dining area is for 120 covers per sitting. This will consist of a plethora of different tables varying in size however flexible to change according to reservations. In total the restaurant will provide 32 tables. The aforementioned shows the importance given to safety and security regulations in case of emergency. Additionally clear passageways will lead customers to fire exit doors. The Lounge bar will be located at the front of the restaurant and an additional ramp placed at the front entrance of the restaurant will provide easy access for customers with disabilities. The bar will have the function of a customer waiting area, lounge bar and will also be a beverage service station for the restaurant itself. The bar will match the Polynesian theme and will primarily serve cocktails and provide a light snack menu. Concerning take - out orders, the Lounge bar will act as a waiting station for customers waiting for their food. The head waiter will handle the taking of take-out orders from customers, as well as ushering them to the lounge bar while they wait for their food. The open Kitchen will be responsible to provide food for both the restaurant, take – out, as well as prepare a light snack for the lounge bar. The kitchen as well as the restaurant will be equipped with fire extinguishers, blankets and a first aid box. Based on the Disabilities Discrimination Act 1995 (DDA), The establishment provides restrooms for disabled people. In Addition corridors and passageways have been adjusted to accommodate this need.

Dining (Profit centre 1)

Lounge Bar (Profit Centre 2)

Take out Function (Profit Center 3) Open Kitchen

Public Restrooms

Back Of the House:
Back of the House – General The back of the house covers 1 / 3 of the total area of the establishment. The back of the house includes, The back Kitchen area, as opposed to the open kitchen in the front of the house, the storage rooms, staff area and the back office. The back kitchen in support of the open kitchen will be also designed ergonomically to allow easy access to waiters. The stewarding will be located near the restaurant to kitchen entrance. A sound proof wall will also be used to minimize the noise of the dishwashing machine. A variety of storage rooms near to the kitchen connecting to the receiving area will be in the back of the house providing easy access for suppliers. These storage rooms include, the dry goods store room, the Freezers and refrigerators and the wine and spirit cellars. In addition a garbage area will be set up at the back of the restaurant for sanitation and recycling purposes as well. All storage rooms will be locked, checked and recorder daily and will function with a key-card system. A staff entrance will be at the back of the house; this will also act as a fire exit. In this area there will be lockers, showers and restrooms for the staff to change into their uniforms. An office for the restaurant manager is also scheduled, for the handling of goods to be received and administrative paperwork.

Back Kitchen

Storage Rooms

Staff Area Back Office

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The Case of the Polynesian George Liveras

Polynesian Establishment Functional Organizational Chart:
Figure 18:Polynesian Organizational Chart

(Source: George Liveras, 2005)

The restaurant being small in size follows a centralized, organizational structure, whereby the two food and beverage sections, Restaurant and Kitchen, are divided and supervised by the head waiter and executive chef accordingly. The two section supervisors supervise over the lower levels, delegating tasks. The supervisors follow directions from the Operations manager who acts as restaurant manager. Six waiters were decided as sufficient number as, respecting the 5 day a week law, four waiters are to be present in the restaurant while one, works the bar with the supervisor. Restaurant staffs are expected to be cross functional in their respective sections. It is expected that each waiter will take care of aprox, 7 tables. -44-

The Case of the Polynesian George Liveras Space Allocation:
Figure 19:Volume in (m2) by Function

Table 1: Function by Area and Seating Capacity

Function Restaurant Lounge Bar Back Kitchen Toilets

Area
201.7 m2 76.2 m2 30.99 m2 12.38 m2

Seating Capacity per one sitting
120 covers 50 covers N/A N/A

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The Case of the Polynesian George Liveras Diagram Summary: Dining Room Seating: As the Food and Beverage is the primary revenue center towards the total sales of the establishment, emphasis was given in designing an area spacious enough to accommodate 120 covers per sitting flexible to reservations. 120 covers were chosen, as a suitable guest count, as the original concept of the restaurant projects to capture the high demand of over expecting individual clientele and organizations. The restaurant will have 30 tables allocated accordingly:
Table 2: Restaurant Dining Room Tables by Type

Tables for Two Tables for Four Table for Eight

10 X 16 X 4X

Building materials:
Figure 20: of Materials to be used per Revenue Centre

Restaurant

The restaurant, set to capture a Polynesian theme will carry an island atmosphere, chairs and tables will be made of Bamboo, whilst the tables will be decorated with seashell ashtrays. The floor is set to be a white tile floor, as to allow easy, fast and hygienic cleaning. In all, the restaurant will hold an elegant and modern impression. The floor will be made from a dark wood and filled with beige sofas. Eating off white small tables. The Bar itself will resemble a boat giving access to serve both the restaurant and Lounge.

Lounge Bar

5.3. Conclusion

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The Case of the Polynesian George Liveras The design of both concept and facilities are orchestrated in providing an ergonomically multifunctional working environment, which aims at increasing speed of service as well as customer satisfaction. In accordance to the Demand survey 70 % of potential clientele expressed the importance of speed of service as well as value for money. Given the increasingly high number of single’s customers, the lounge bar will offer the perfect opportunity to socialize at the late hours of the evening.

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The Case of the Polynesian George Liveras

VI. Estimates of Operating Results

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The Case of the Polynesian George Liveras 6. Estimated Operating Results

6.1. Assumptions
Table 3: Hours of Operation: Restaurant MONDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X Service & Management Staff Operating Hours TUESDAY WEDNESDAY THURSDAY FRIDAY 11:30a.m. 11:30a.m. 11:30a.m. Closed 2.p.m 2.p.m 2.p.m 6:30p.m. 6:30p.m. 6:30p.m. 11.p.m 11.p.m 11.p.m X X X X X X X X X X X X X X X X X SATURDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X X SUNDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X X X X X X X X

Operating Hours Head Waiter Cashier Bar Supervisor Waiter 1 Waiter 2 Waiter 3 Waiter 4 Waiter 5 Waiter 6

X X X X X X

x
X X X X X

X X X X X

The Polynesian has a total of 18 staff, allocated accordingly in the two sections restaurant and kitchen. As aforementioned there are two service periods lunch and dinner. Staffs for both sections therefore need to be allocated within these two time periods, respecting the five working days a week. The Polynesian is projected to be open 288 days a year. Staff working the lunch shift will work a split shift and return at 6pm and work till 10pm, respecting the 8 hour working schedule. No low season is projected within the first year.

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The Case of the Polynesian George Liveras
Table 4: Hours of Operation: Kitchen MONDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X X X X X X TUESDAY Closed Kitchen Staff Operating Hours WEDNESDAY THURSDAY 11:30a.m. 11:30a.m. 2.p.m 2.p.m 6:30p.m. 6:30p.m. 11.p.m 11.p.m X X X X X X X X X X X X X X X FRIDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X X X X X SATURDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m X X X X X X X X X X X X X SUNDAY 11:30a.m. 2.p.m 6:30p.m. 11.p.m

Operating Hours 1 Executive Chef Cook A Cook A Cook B Cook B Commi Dishwasher Dishwasher

X

The Kitchen follows the same logic however as it also provides its services to the Lounge bar as well as taking charge of the take out function it requires a heavy density of personnel. Even now it seems the Polynesian may wish to hire part time kitchen personnel for the busy days, as kitchen staff may find it difficult to cope. Peak days are expected to be Monday, Friday and Saturday, (observation, 2005).

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The Case of the Polynesian George Liveras 6.1. Assumptions for Year 1, Most Likely Scenario Estimating Revenue Average check per person: The average check is calculated by computing the weighted average of three different methods: Cost-based pricing, Market-based pricing and Competitor-based pricing.These pricing methods are weighed by being divided accordingly into 20% of cost based pricing, 60% of market based pricing, and 20% of competitors based pricing for lunch and dinner. These weights were decidedly so, due to the high density of passer bys in the area due to the shopping and university campus districts, enforced by a high diversity of competitors similar to our own. These three methods will be used therefore in accordance to the average check of all Asian restaurants in Switzerland. By using all three methods, (Appendix 9: Calculation of Average Check) the weighted average check was found to be 33 CHF for both food and beverage.

Seat Turn Over: Given that the restaurant sets to target the lunch break rush as well as take advantage of the shopping crowd in the early afternoon. It is assumed that the restaurant being new will capture quite a high seat turnover. The highest guest seat turn over is therefore assumed to be during the lunch period 11:30 to 1:30 p.m. The Polynesian will retain and improve its seat turn over by concentrating on guest satisfaction, by keeping up the standards and guest feed back and by various marketing campaigns aiming to bring forth public awareness.

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The Case of the Polynesian George Liveras Lunch: 180/ 120 = 1.5 Dinner: 168 / 120= 1.4 Lounge Bar, lunch period: 80/ 50 = 1.6 Lounge Bar, dinner period: 90 /50 = 1.8 Average Seat Turnover: 1.575

Estimating Expenses Cost of Sales: Costs of Sales refer to the cost of raw material needed in order to run the restaurant. According to industry averages, (Delloite & Touche, 2000) reports, the Total cost of sales is 32.6%.

Direct Payroll: Direct Payroll refers to the salaries and benefits paid towards the employees and management of the Polynesian. Based on 2005 statistics of incomes in Switzerland it is assumed that The Polynesian will pay its staff a salary between 3,000 to 4,000 Swiss Francs a month, over a physical year of 42 weeks. According to (Delloite & Touche, 2000) the industry average for salaries and wages is 27.4 % of total sales. Hourly rate was determined according to Gastro Suisse, “Info Service”, (2005).

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The Case of the Polynesian George Liveras
Table 5: Direct Payroll No. of Staff 1 2 2 1 2 1 1 1 1 6 18 Total Weekly Hours 42 42 42 42 42 42 42 42 42 42 Hourly Rate (CHF) 24.73 21.54 23.54 19.56 19.56 24.73 23.52 23.52 23.52 16.44 Total Yearly Payroll Cost (CHF) 49,856 86,849 94,913 39,433 78,866 49,856 47,416 47,416 47,416 198,858 740,880

Executive Chef Cook A Cook B Commi Dishwashers Operations Manager Head Waiter/ ess Cashier Bar Supervisor Waiter

Total

(Source: Gastro Suisse, 2005) Employee Benefits: According to (Delloite & Touche, 2000)12.45 % of employee benefits are taken from Payroll and added to salaries. This will constitute to 4.8 % from total sales. This money is generated in order to incompencate all that concerns social security insurances. (www.ch.ch). Direct Operating Expenses: Direct operating expenses for the establishment include such items as paper supplies, cleaning supplies, linens, tableware, kitchen utensils and related operating costs. According to (Delloite & Touche, 2000) Direct Operating expenses constitute to 5.1 % of Total Sales.

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The Case of the Polynesian George Liveras Music and Entertainment: Although not a common practice on special occasions the Polynesian will host conceptual nights with live music to enhance the theme and atmosphere of the restaurant. Normal evenings however will be displayed by cd compilation recordings of music for the Lounge and Restaurant accordingly with an objective of relaxing and refreshing all who hear it. In this case there are no vital expenses. Industry average, according to (Delloite & Touche, 2000), is 0.1 % of total sales.

Marketing: Although generally, restaurant marketing expenses constitute to only 2.4 % of total sales, the Polynesian, being a new and unknown venue, bearing a foreign concept will readapt its strategy as to better familiarize the surrounding neighbors of its presence. In the first two years the Polynesian will have a Marketing expense constituting to 4.5% of Total Sales which will be decreased to the industry average on the third year. In this way it is thought to capture the immediate surrounding target markets in a more aggressive manner.

Utilities: According to (Delloite & Touche, 2000), a restaurant pays 2.0 % of its Total Sales as utilities expenses. The most important being that of electricity.

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The Case of the Polynesian George Liveras Administrative and General: As mentioned by (Delloite & Touche, 2000) expenses directed to A&G will constitute to 5.4% of the total revenue in the Polynesian. This is due to the centralized organizational structure of the business.

Repairs and maintenance: According to Wisconsin Restaurant Operations ratios report 2000, repairs and maintenance has surged over the years constituting to a percentage of total sales of up to 1.6 %.

Rent or Occupation Costs: The site to be rented, in Fribourg were the Polynesian is set measures 400m2. According to the Fribourg Development Agency, Rental values for ready to use industrial premises cost 165 CHF per square meter/per year. It is therefore expected that the site in question would be rented out to us for 66,000 CHF a year (165 X 400 m2). That according to industry averages would constitute to 5.3 % of total sales. The site will need reconstruction however to fit the needs of the project concept.

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The Case of the Polynesian George Liveras

6.2. 5-Year Summarized Income Statement with Analysis and Interpretation
Table 6: Most Likely Scenario

Year Total Revenue Cost of Sales Gross Profit Controllable Expenses Income Before Rent Occupation Cost Income after Rent

1 2,520,3 29 834,892 1,685,43 7 1,355,84 0 329,597 66,000 263,597

2 2,699,07 2 894,103 1,804,96 9 1,399,45 4 405,516 66,000 339,516

3 2,856,65 2 946,303 1,910,34 9 1,412,19 3 498,156 66,000 432,156

4 2,885,21 9 955,766 1,929,45 3 1,418,90 6 510,546 66,000 444,546

5 2,914,071 965,324 1,948,747 1,425,687 523,060 66,000 457,060

The summarized income statement of the Polynesian shows positive results from the very first year, this is due to a relatively high projected seat turn over, derived from the busy nature of the location. The competitive nature of rue de Romont not only helps the Polynesian, but will give existing clientele in the area something new to try out. Offering relatively cheap prices, an average check of 33 francs, the Polynesian hopes to appeal to price sensitive customers looking for value for money. The Polynesian is set to break even in the second year taking into consideration reconstruction costs, not included in this study. The stabilized year is set to be the middle of year 2. The Growth Rate is as per Inflation rate, 1.01% a year. This inflation rate is to be applied to the average check.

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The Case of the Polynesian George Liveras

6.3. Sensitivity Analysis with Contingency Plan
Table 7: Pessimistic Scenario

Year Total Revenue Cost of Sales Gross Profit Controllable Expenses Income Before Rent Occupation Cost Income after Rent

1 2 3 4 1,728,014 1,809,934 1,893,321 1,978,194 544,565 570,382 596,660 623,407 1,183,448 1,239,553 1,296,661 1,354,787 1,162,515 1,182,504 1,163,091 1,182,017 20,933 57,049 133,570 172,769 66,000 66,000 66,000 66,000 -45,067 -8,951 67,570 106,769

5 2,064,575 650,629 1,413,946 1,201,280 212,666 66,000 146,666

In the pessimistic scenario, break even is not reached until year 3. This is brought about by two factors a high cost of sales and high controllable expenses. By minimizing staff payroll, employee benefits would also be decreased giving us a healthier income after rent. Marketing expenses and promotional campaigns could also be utilized to bring up the seat turn over and the Average Check, increasing Total Revenue. Like with the most likely scenario, an inflation rate was implemented onto the average check following years 2 to 5. Year one average check was downsized by 2%.
Table 8: Optimistic Scenario

Year Total Revenue Cost of Sales Gross Profit Controllable Expenses Income Before Rent Occupation Cost Income after Rent

1 3,264,426 1,081,384 2,183,042 1,537,400 645,642 66,000 579,642

2 3,529,804 1,169,294 2,360,510 1,602,152 758,358 66,000 692,358

3 3,623,868 1,200,454 2,423,414 1,549,002 874,412 66,000 808,412

4 3,956,872 1,310,765 2,646,106 1,623,262 1,022,844 66,000 956,844

5 4,396,085 1,456,260 2,939,824 1,721,207 1,218,617 66,000 1,152,617

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The Case of the Polynesian George Liveras

Optimistic Scenario:
In this scenario, the Polynesian will break even in the first year. This scenario is a direct result of a positive adaptation between the city of Fribourg and the unique nature of the Polynesian.

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The Case of the Polynesian George Liveras

Conclusion: As a result of the study, it was found using various tools as well as analyzing both the competition and overall demand for the product, that the concept of the Polynesian is feasible in the projected Site due to the following reasons: • It is a concept based on three upcoming trends. These are: The trend of ethnic restaurants, Healthy eating as well as Theme restaurants. • • • • It has a centralized location and is close to the demand generators It has a unique concept with minimal competition. The Location of Fribourg is cheaper compared to other cities The cultural diversity and young aging demographics allow for new concepts to enter the market. • The demand for diversity, brought about by a large student population is an asset to the “Polynesian” Criticism to the project, are the following points: • The upcoming potential of the commune of Fribourg is attracting more and more competition • Fast Food Asian outlets, offering a substitute product can attack the Polynesian by lowering their prices.

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The Case of the Polynesian George Liveras

References: • BRACHINGER, H. W, Seminar of Statistics, University of Fribourg, (CH), (2003), http://www.unifr.ch/stat/en-home.php •
CAREE,

E., CAREE, D., “Asian Ethnic …Now for Everyone”, (USA), (2003),

http://www.preparedfoods.com/CDA/ArticleInformation/features/BNP__F eatures__Item/0,1231,113739,00.html • COOPER, R.D and SCHINDLER, S.P, (2003), “Business Research Methods”, (Singapore), Irwin / Mc Graw - Hill • Delloite & Touche, National Restaurant Association, “Restaurant Industry Operations Report”, (EU), (2000) • Fribourg Development Agency, “Location Brochure”,(CH), (2005), http://www.promfr.ch/en/upload/tax-broshure_0501_050121135822.pdf • GARDNER, K., Beat the clock: “finding time for lunch”, (USA) National Restaurant Association,(1996), http://www.restaurant.org/rusa/magarticle.cfm?articleid=217 • Gastro Suisse, “Info Service”, (CH),(2005), http://www.gastrosuisse.ch/doc/doc_download.cfm?7669CBA2E7FB2828DF97 53E3409EC20E • Hensley, S., “Generations X and Y Drive Surge in Ethnic Cuisine”,(USA),(2000), http://www.restaurant.org/pressroom/pressrelease.cfm?ID=125

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The Case of the Polynesian George Liveras • HELPERIN, Marc, “Young at Heart, Wise in Dining”, Center for Culinary Development, (2002), http://www.ccdsf.com/trendcornerjune.html • KOTLER, P., BOWEN, J. And MAKENS, J.(2003), Demographic Segmentation, pp.267 - 272, “Marketing For Hospitality and Tourism”, third edition, (UK) • LONGBOTTOM, P., “Taste Sells - Nutrition Doesn’t”, Hospitality, (UK), (2001), http://hcima.org.uk • MICHELOUD & CO, “Swiss Food”,(CH), (2004), http://www.Switzerland.isyours.com/e/guide/basics/swiss.food.html • • PORTER, M., “Competitive Strategy”, (USA), New York: Free Press, (1980) Pittet, M, “Le développement de l'économie fribourgeoise”, (CH), (2005), http://appl.fr.ch/economie/direction/lignes/npe/economie_fr.pdf • RANDE, D.R, “Location Criteria”, Northern Arizona University, (USA), http://jan.ucc.nau.edu/~wlr2/ha442/class/concept/location/ • RYAN Bill, “Restaurant Market Analysis”, University of Wisconsin, (USA), (2003), http://web1.msue.msu.edu/msue/imp/modtd/33702004.html • Swiss – Info geographic tool, “Fribourg Center, (2005), (CH), http://gis.swissinfo.org/ • Statistics Fribourg, “Statistical Service for the Canton of Fribourg”,(CH),(2000), http://appl.fr.ch/stat/ • Swiss Federal Statistical Office, “Bundesamt fur statistic”, (CH), (2005), http://www.bfs.admin.ch/bfs/portal/en/index.html/

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The Case of the Polynesian George Liveras • “Swiss Tourism in Figures” (2004), (CH), http://www.swisstourfed.ch/art/dokumente/vademekum/2004/en/Vade_2004_en gl.pdf • Search.ch / Endoxon AG, Teleatlas, “Map:Swityerland”, (CH), (2005), http://map.search.ch/index.en.html • Tele Atlas, “Fribourg”, (CH), (2005), http://www.teleatlas.com/stellent/idcplg?IdcService=SS_GET_PAGE&nodeId= 9187&ssSourceNodeId=9187 • WEINRAUB, Judith, “With less fattening, more varied and flavorful foods home kitchens aren’t stocked like they used to be”, Washington Post Staff Writer, (USA), (2005), http://www.foodinstitute.com/ifda/ifdaupdate0429.htm `

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The Case of the Polynesian George Liveras Appendices: Appendix 1: Restaurant Demand Switzerland

(Swiss Tourism in Figures 2004)
Table 9: Polynesian Cuisine

Fish Specialties Grill Specialties Vegetarian Cuisine Other Specialties Asian Specialties Health Specialties Port Span, Greek Turk specialties American Mexican Specialties Total

10% 7% 7% 5% 2% 1% 1% 1%
34.00%

Source: (Switzerland Tourism in Figures, 2004)

Appendix 2: Districts of Fribourg by population density

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The Case of the Polynesian George Liveras ( www.cfcis.ch 2001) Appendix 3: Broad Geographic Description Broad Geographic Description Region: Size: Area of Development: Population Density: Climate:
Fribourg, Sarine, Fribourg, Switzerland 251,318 (Canton) / 36,405 (Commune) Commercial, retail, residential 158, suburban (Canton) / 3,906, Urban (Commune) Temperate: Summer: Average 20° C / Winter: Average 2° C

Source: (Federal Statistical Office 2000), (Statistics Fribourg 2003)

Appendix 4: Meal Periods and Location Guidelines

Meal Periods
Mid- Morning /
Afternoon Business

Location Guidelines
The restaurant is set to be located in the communal urban region of Fribourg in the heart of the shopping district, and near to the University. Being close to these demand generators as well to fast access points, such as the train station, the primary market can reach the establishment in less then 10 minutes by foot. The area also offers ample parking facilities plus access by bus. The lunch period is the time of the highest density of population in the area. Full of day time shoppers, students, shop clerks and businessmen on their lunch break, “The Polynesian” is strategically located amidst its competitors to accommodate the lunch time demand. The lounge bar is open all day to accommodate guest demand during and in between meal periods providing a quick snack. The original and unique theme and concept of the Polynesian restaurant in union with its ambience and centralised city location will be factors broadening the market area and attracting customers. Located near the Business and shopping district, the restaurant sets to provide a lunch and dinner take out service to accommodate the need for a fast meal. This service sets to attract shop clerks, students and Business men who have no time to sit in for mainly the lunch but also the dinner meal periods.

Lunch
(11:30a.m. – 2p.m) Lounge Bar (11:30a.m.-11p.m.) Dinner (6p.m. – 11p.m)

Take – out service
12p.m.-2p.m. / 6p.m. – 11p.m.
Source: Anonymous, (1998)

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The Case of the Polynesian George Liveras

Appendix 5: Project Sites Competitive Position

Project Site’s Competitive Position
Accessibility
Accessibility / Trains Fribourg lies in the main transport arteries connecting the French speaking cantons with those of the German. Both main railway lines as well as the A12 highway run through Fribourg connecting Fribourg to Bern the capital City up to Zurich. The major Swiss can be reached in less than 2 hours either by train or road.” Accessibility / Car On average taking into account Switzerland’s six major cities, (Basel, Berne, Geneva, Lausanne, St.Gallen and Zurich) Fribourg can be reached in one hour and twenty minutes by car. Accessibility / Foot The Project Site can be reached in 10 minutes from the train station of Fribourg. The site itself although not accessible by car from rue de Romont is Visible and accessible from rue de L’hopital. Infact being at the corner or rue de Romont pedestrians entering the shopping district through that road would see the restaurant immediately. The Site is positioned so as to be in close proximity with all three demand generators, The university, the Shopping District and the Business district of Fribourg, as well as being in the same location as its competitors. This has an objective of capturing as much a market share of these markets, as well as attacking the competition by attracting curious customers... Even Though the restaurant is a unique concept in Fribourg, it is to be the first themed restaurant in the area. This is an advantage since it will stand out giving the restaurant a competitive advantage over others pulling curious customers. In this respect although not in union with its surroundings it has a stand out effect promising future growth. There are no immediate plans in the immediate project site area as the project area, is in an overly developed and protected zone.

Visibility Accessibility To Market Generators Compatibility and Adaptability

Site Development

Appendix 6: Porters Five Forces: Threat of new entrants: Bargaining power of buyers: Threat of substitute products: Bargaining power of Suppliers:
Since Fribourg can be considered a favourable market location, it will always attract competitors of any type of restaurant. This does not only apply to restaurants but also to in-direct competitors such as, any establishment that targets the disposable income spent for food. Since “The Polynesian” is a unique concept and it will be the first to enter the market, it will have a competitive advantage. Due to the fact that consumers today are more price – sensitive, in turn causes them to expect value for money when dining out. This is a key issue that the restaurant will try to maintain. This will result however in strong competition for lower prices. This is because our competition also has to take into account the bargaining power of buyers. Similar ethnic cuisines to the Polynesian region, such as Chinese, sushi or any other ethnic food is a direct threat. Any cuisine that can substitute our product is regarded as a direct threat. Since most of the raw materials will be imported from the Polynesian region it is likely that we will be held “hostage” by one or two major suppliers. To help the situation, it is forecasted to search for domestic raw materials, to import products ourselves or look for a larger base of alternative suppliers. All these factors are to be taken into consideration during the menu design, on the selection of menu items.

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The Case of the Polynesian George Liveras Appendix 7: S.W.O.T Analysis
Opportunities Strengths Concept Location “The Polynesian” is the first Polynesian restaurant in • • The city of Fribourg is close to the capital, Bern, Fribourg, being only a 20 minute drive. “themed” restaurant • The restaurant is the first ethnic • Large unexplored customer base, such as “Students”. in Fribourg. Atmosphere and Decoration • The establishment follows a fusion concept of • Will sell Polynesian themed novelties to guests Polynesian islands cuisine. This multicultural fusion • Uniqueness of Polynesianbe more greatly adaptable of “Asiatic” cuisines will theme. • Possible live Music because of nights. to customers’ tastes on special variety. Customer Target Market a “Themed” restaurant. • The Polynesian is • Location Health conscious customers • The location of and foreign perfect market • Large executiveFribourg is ainvestorlocationin • The site location has access to all means of Fribourg. transportation, and is rich in parking availability. It is accessible and most importantly it is in the heart of the shopping district. Services • The restaurant intends to provide a take out service for the lunch and dinner. • The restaurant plans to be open for two meal periods, Lunch and dinner (Seat-in). • Also provides the function of a lounge bar. Menu • The Polynesian concept permits the use of a combination of meat, including poultry, beef, duck and pork that can all be found locally. • The Polynesian cuisine is considered healthy and light, appealing to health conscious minded people. • The choice of spiciness is optional (mild/hot/very hot). • Original Polynesian cooking methods that are to be used are considered healthy. Workforce • Supply of high calibre student workforce from neighbouring hotel schools. Customer Target Market • The restaurant’s concept is suitable for all market segments. Threats Weaknesses Concept • Direct competitors have a more centralized city • Polynesian Cuisine is still relatively new and not centre location than proposed location. well known. • Competitors have set their own food ismarket • Misconception that Polynesian target heavy, already. spicy sweet and • High competition in the area Economic • No barrierseconomy forpassing from recession to • The world to entry is new competitors recovery. This means businessmen and individuals are more sensitive to risks and expenditures. Location • City location is expensive • Location is very competitive Atmosphere and Decoration • Most decorative materials need to be imported, this increases costs.

Appendix 8 : Questionnaire

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The Case of the Polynesian George Liveras

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The Case of the Polynesian George Liveras

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The Case of the Polynesian George Liveras Appendix 9 : Analysis of Questionnaire (Tables)
Q1.Please indicate your nationality Nationality Quantity % Swiss 10 25 French 10 25 German 5 12.5 Other 15 37.5 Total 40 100%

Q2. What is your Occupation? Occupation Quantity Business 14 Public Servant 1 Student 21 Other 4 Total 40 Q3. Please indicate your gender Gender Quantity Male 26 Female 14 Total 40 Q4. What is your Age? Age 15-25 26-36 37-47 48-55 Above 55 Total

% 35 2.5 52.5 10 100

% 65% 35% 100%

Quantity 23 9 8 0 0 40

% 58% 23% 20% 0% 0% 100

Q5. How much of your monthly disposable income do you allocate to food away from home? Amount Quantity Less than 500 10 500 - 1000 15 1000 - 1500 10 1500 - 2000 5 Total 40

% 25% 38% 25% 13% 100%

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The Case of the Polynesian George Liveras

Q6. How often do you eat away from home? Frequency Quantity % Never 2 5% Once a month 1 3% Twice a month 4 10% Once a week 5 13% Twice a week 5 13% Three times a week 10 25% More than three times a week 13 33% Total 40 100%

Q7.What days do you eat out the most? Week Days Quantity % Monday 1 3% Tuesday 0 0% Wednesday 6 15% Thursday 4 10% Friday 10 25% Saturday 14 35% Sunday 5 13% Total 40 100%

Q8. What meal periods do you eat out the most Meal Periods Quantity % Breakfast 0 0% Lunch 14 35% -70- 26 Dinner 65% Total 40 100%

The Case of the Polynesian George Liveras

Q9. On a scale of 1 to 10, 10 being the highest, how important do you consider the following factors Average Factors Quantity % Price 7.1 20% Location 6.9 20% Food and Service Quality 8.7 25% Popularity of the Restaurant 6.7 19% Parking 5.9 17% Total 35.3 100% Q10. What types of restaurants do you prefer more? Restaurant Types Quantity % Quick Service 4 10% Casual 22 55% Fine Dining 14 35% Total 40 100%

Q.11 Are you satisfied with the choice of restaurants In Fribourg? Answer Quantity % Yes 15 38% No 25 63% Total 40 100% Q.12 Have you ever tried Polynesian Cuisine? Answer Quantity % Yes 14 35% No 26 65% Total 40 100% Q14. Would you be interested in a Polynesian Themed Restaurant? Answer Quantity % Yes 38 95% No 2 5% Total 40 100%

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The Case of the Polynesian George Liveras
Q15. How far would you be willing to travel to eat at the Polynesian Distance Quantity % 15 Minutes 12 30% 30 Minutes 22 55% 45 Minutes 6 15% More than 45 Minutes 0 0% Total 40 100% Q16.What is the most frequent means of transportation that you use when dining out? Means Quantity % Walk 24 60% Car 2 5% Taxi 8 20% Bus 3 8% Train 3 8% Total 40 100% Q17.Would you be interested in the Polynesian if situated at Rue de Romont, 1, Fribourg? Answer Quantity % Yes 36 90% No 4 10% Total 40 100%

Q18. Do you consider healthy eating important when Dining out? Answer Quantity % Yes 30 75% No 4 10% Don’t Care 6 15% Total 40 100%

Q19. On a scale of 1 to 10, 10 being the highest, how important to you is healthy food and how much is taste? Answer Average Quantity % Taste 9.1 54% Healthy Food 7.6 46% Total 16.7 100%

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The Case of the Polynesian George Liveras

Q20. Are the following prices reasonable to you? Menu Average 5 = Fully Prices Quantity satisfied Percentage Starter Main Course Dessert Beverage 4.1 4.4 4.5 4.1 5 5 5 5 82% 88% 90% 82%

Q21. The Average Check paid by customers at a casual restaurant Answer Quantity % 30 CHF 2 5% 35 CHF 8 20% 40 CHF 14 35% 45 CHF 10 25% 50 CHF 6 15% Total 40 100%

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The Case of the Polynesian George Liveras

Weights Industry Avg Restaurant Lounge Bar Take Away Lunch Dinner Lunch Dinner Lunch Dinner Average

Cost Based Pricing: 20% 8.20/ 33.4% 8.20/ 33.4% 4.50/ 33.4% 4.50/ 33.4% 8.20/34.4% 8.20/34.4% Average Food Check : 24.551 24.551 13.5 13.5 23.837 23.837 20.62 20.62 25.42 26.0 Total Cost Based Pricing: 20% 3.2O/25.8% 3.2O/25.8% 3.2O/25.8% 2.967/25.8% 3.2O/25.8% 2.967/25.8% Average Bev. Check : 12.4 12.4 12.4 11.5 12.4 11.5 12.1 12.1 7.333 6.5 Total

Average Food Check Per Person: Market Based Pricing 60% 24.84.CHF Main course only Starter + Main Course Light Snack 10 -15 Light Snack 10 -15 Main course 18 - 35 Main course 18 - 35 Average Food Check : 22.5 52.0 12.5 12.5 26.5 26.5 25.417

Competitor-based pricing 20% Main course only 14 - 35 Starter + Main Course 23 - 50 Light Snack 6 - 14 Light Snack 6 - 14 Main Course Starter + Main Course Average Food Check :

Totals 100% 31.5 36.5 10 10 31.5 36.5 26.0

Weights Restaurant Lounge Bar Take Away Industry Avg Lunch Dinner Lunch Dinner Lunch Dinner Average

20% 4.124 60% 15.25 20% 5.2 100% 24.574 Average Beverage Check Per Person: Market Based Pricing 60% Beer / Glass of Wine Beer / Glass of Wine Cocktails Cocktails Soft Drinks or Beer Soft Drinks or Beer Average Bev. Check : 20% 60% 20% 100% Total Average Check: 7.85 CHF 5.5 5.5 12 12 4.5 4.5 7.3333 2.42 4.3998 1.3 8.1198 33

Competitor-based pricing 20% Beer / Glass of wine 2.90 - 5.50 Beer / Glass of wine 2.90 - 5.51 Cocktails 8 -15 Cocktails 8 -15 Soft Drinks or Beer 2.5 - 5 Soft Drinks or Beer 2.5 - 6 Average Bev. Check :

Totals 100% 4.2 4.2 11.5 11.5 3.75 3.75 6.5

CHF

Appendix 11: (Most Likely Scenario)
Year 1 2 3 4 5

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The Case of the Polynesian George Liveras

Number of Seats: Number of Days Average Food Check Average Beverage Check Seat Turnover: Total Seats Sold: Revenue (Sales) Food Beverage Total Revenue (Sales) Cost of Sales Food Beverage Total Cost of Sales Gross Profit on Sales Controllable Expenses Direct Payroll Employee Benefits Direct Operating Expenses Music and Entertainment Marketing & Sales Administrative and General Utility Repairs & Maintenance Total Contr. Expenses Income before rent Occupancy Costs Income after Rent Year Number of Seats:

170 288 24.6 8.11 1.575 77,1 12 1 1,894,950 625,378 2,520,329 1 631,018 203,873 834,892 1,685,437 1 740,880 120,976 128,537 25,203 113,415 136,098 50,407 40,325 1,355,840 329,597 66,000 263,597 1 170

170 288 24.8 8.19 1.67 81,7 63 2 2,029,341 669,731 2,699,072 2 675,771 218,332 894,103 1,804,969 2 740,880 129,555 137,653 26,991 121,458 145,750 53,981 43,185 1,399,454 405,516 66,000 339,516 2 170

170 288 25.1 8.27 1.75 85,680 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 52% 15% 2% 13% 3 2,147,821 708,832 2,856,652 3 715,224 231,079 946,303 1,910,349 3 740,880 137,119 145,689 28,567 68,560 154,259 57,133 45,706 1,377,913 532,436 66,000 466,436 3 170 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 48% 19% 2% 16%

170 288 25.3 8.36 1.75 85,680 4 2,169,299 715,920 2,885,219 4 722,377 233,390 955,766 1,929,453 4 740,880 138,491 147,146 28,852 69,245 155,802 57,704 46,164 1,384,284 545,169 66,000 479,169 4 170 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 48% 19% 2% 17%

170 288 25.6 8.44 1.75 85,680 5 2,190,992 723,079 2,914,071 5 729,600 235,724 965,324 1,948,747 5 740,880 139,875 148,618 29,141 69,938 157,360 58,281 46,625 1,390,718 558,029 66,000 492,029 5 170 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 48% 19% 2% 17%

75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 54% 13% 3% 10%

Appendix 12: (Pessimistic Scenario)

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The Case of the Polynesian George Liveras

Number of Days Average Food Check Average Beverage Check Seat Turnover: Total Seats Sold: Revenue (Sales) Food Beverage Total Revenue (Sales) Cost of Sales Food Beverage Total Cost of Sales Gross Profit on Sales Controllable Expenses Direct Payroll Employee Benefits Direct Operating Expenses Music and Entertainment Marketing & Sales Administrative and General Utility Repairs & Maintenance Total Contr. Expenses Income before rent Occupancy Costs Income after Rent Year Number of Seats: Number of Days

288 19.7 6.5 1.35 66, 096 1 1,299,183 428,831 1,728,014 1 433,927 110,638 544,565 1,183,448 1 740,880 82,945 88,129 17,280 77,761 93,313 34,560 27,648 1,162,515 20,933 66,000 45,067 1 170 288

288 19.9 6.6 1.4 68, 544 2 1,360,774 449,161 1,809,934 2 454,498 115,883 570,382 1,239,553 2 740,880 86,877 92,307 18,099 81,447 97,736 36,199 28,959 1,182,504 57,049 66,000 8,951 2 170 288

288 20.1 6.6 1.45 70,992 75% 25% 100% 33.4% 25.8% 32% 68% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 65% 3% 4% 0% 3 1,423,467 469,854 1,893,321 475,438 121,222 596,660 1,296,661 740,880 90,879 96,559 18,933 45,440 102,239 37,866 30,293 1,163,091 133,570 66,000 67,570 3 170 288 75% 25% 100% 3 33.4% 25.8% 32% 68% 3 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 61% 7% 3% 4%

288 20.3 6.7 1.5 73,440 4 1,487,277 490,917 1,978,194 4 496,751 126,656 623,407 1,354,787 4 740,880 94,953 100,888 19,782 47,477 106,822 39,564 31,651 1,182,017 172,769 66,000 106,769 4 170 288 75% 25% 100% 33.4% 25.8% 32% 68% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 60% 9% 3% 5%

288 20.5 6.8 1.55 75,888 5 1,552,222 512,353 2,064,575 5 518,442 132,187 650,629 1,413,946 5 740,880 99,100 105,293 20,646 49,550 111,487 41,291 33,033 1,201,280 212,666 66,000 146,666 75% 25% 100% 33.4% 25.8% 32% 68% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 58% 10% 3% 7%

75% 25% 100% 33.4% 25.8% 32% 68% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 67% 1% 4% -3%

Appendix 13: (Optimistic Scenario)
5 170 288

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The Case of the Polynesian George Liveras

Average Food Check Average Beverage Check Seat Turnover: Total Seats Sold: Revenue (Sales) Food Beverage Total Revenue (Sales) Cost of Sales Food Beverage Total Cost of Sales Gross Profit on Sales Controllable Expenses Direct Payroll Employee Benefits Direct Operating Expenses Music and Entertainment Marketing & Sales Administrative and General Utility Repairs & Maintenance Total Contr. Expenses Income before rent Occupancy Costs Income after Rent

29.5 9.7 1.7 83, 232 1 2,454,412 810,014 3,264,426 1 817,319 264,065 1,081,384 2,183,042 1 740,880 156,692 166,486 32,644 146,899 176,279 65,289 52,231 1,537,400 645,642 66,000 579,642

29.8 9.8 1.82 89, 107 2 2,653,941 875,863 3,529,804 2 883,762 285,531 1,169,294 2,360,510 2 740,880 169,431 180,020 35,298 158,841 190,609 70,596 56,477 1,602,152 758,358 66,000 692,358

30.1 9.9 1.85 90,576 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 45% 21% 2% 20% 3 2,724,664 899,203 3,623,868 3 907,313 293,140 1,200,454 2,423,414 3 740,880 173,946 184,817 36,239 86,973 195,689 72,477 57,982 1,549,002 874,412 66,000 808,412 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 43% 24% 2% 22%

30.4 10 2 97,92 0 4 2,975,039 981,833 3,956,872 4 990,688 320,078 1,310,765 2,646,106 4 740,880 189,930 201,800 39,569 94,965 213,671 79,137 63,310 1,623,262 1,022,844 66,000 956,844

30.7 10.1 2.2 107,712 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 41% 26% 2% 24% 5 3,305,268 1,090,816 4,396,085 5 1,100,654 355,606 1,456,260 2,939,824 5 740,880 211,012 224,200 43,961 105,506 237,389 87,922 70,337 1,721,207 1,218,617 66,000 1,152,617 75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 2.4% 5.4% 2.0% 1.6% 39% 28% 2% 26%

75% 25% 100% 33.3% 32.6% 33% 67% 27% 4.8% 5.1% 0.1% 4.5% 5.4% 2.0% 1.6% 47% 20% 2% 18%

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