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1. Introduction ........................................................................................................................... 3
5. Conclusion .............................................................................................................................. 6
References ...................................................................................................................................... 7
1. Introduction
The main objective of any market competitive analysis is to consider competitive strengths and
weaknesses and find market opportunities for the company. It can also help to assess what the
company does best and where improvements are needed (Albayrak, 2015). Erie, Pennsylvania,
United States already has 14,308 businesses with an 11.20 percent market share in the restaurant,
food and beverage area. There are 4,500 hotel rooms in the town. This market assessment study
seeks to examine the volume, scale, and distribution of restaurant establishments (NAICS: 7225)
(Classification Development Branch, 2017). The competitive market research can be used to
determine the actual level of competition at our restaurant. The Erie restaurants deal with
businesses serving food and beverages like grocery stores, discount markets, delicacies, and easy
shopping stores. Restaurants also compete with home cooking. Erie comprises leading
companies such as Bloomin' Brands, Darden Restaurants, McDonald's, Target, and YUM!
Brands.
Zara Restaurant and Lounge is the name of our startup company and it seeks to create realistic
business expectations in Erie. Enterprises tend formulating the business plan with a highly
optimistic image, emphasize advantages and mask the threats. As a business owner, I have a
stake in this restaurant and a financial commitment to its success. The aim is to have a final
product, financial and marketing plan that not only meets our capital funding needs but is used as
our daily business plan. Our main competitors are divided into direct competitors and indirect
competitors.
2.1.Competitive Edge
1. The vast experience of the owner in understanding market competition, understanding and
3. Both traditional and international food items with the policy of changing every five months
5. Organizing employee development and training programs especially for the chefs and head
cooks to make allow the new entrants, trainee and featured chef
7. Fully strategic marketing campaigns such as Come To Town promotions and sales discount
system
3. Competitor Analysis
The competitor analysis in the city of Erie in the Restaurant, Hotel, Food and Beverage segment
is shown below:
Bloomin' Brands is one of the leading restaurants in Erie and this restaurant also competes
primarily for Zara, which has developed into a successful restaurant for the district of Erie. 1) the
model tapas appeal for consumers of Erie; 2) the emerging market for after-hours dining; 3)
tapas as a better after-hours dining option (little servings, smaller price); 4).
Over the years, this restaurant has become increasingly popular and successful as a restaurant for
companies as well as locals. The menu for this market sector is somewhat traditional, but the bar
draws a good crowd. It was clear during this analysis that some guests were seated solely at the
bar and did not intend to dine in the restaurant. “Darden Restaurants are more of a formal dinner
and meet a certain need in the community, but they are not Zara's direct competitor. It has certain
unique elements that have led to its success in the past three years, from which Zara may gain.
McDonald's is not currently in the market area of Zara, so the increasing popularity of
McDonald's in Erie and the surrounding area cannot be ignored. McDonald's has some of the
items that Zara wants to figure out. These are 1) a Tapas and Entry list, which indicates
consumers need different food sizes and variants; 2) an experience like a party which will draw
the person crowd and boost bar sales. McDonald's validates some of the characteristics of what
the current Erie diners are asking for in our market research. This is a real affirmation that the
4. Market Analysis
At the end of the day, everyone in the area that offers prepared meals is a rival for Zara, as
everyone competes for the same home dinner substitute dollar. There are, moreover, two key
divisions of the restaurant industry: the casual restaurant and the great restaurant (Erie News
Now, 2019). So where is the client most likely to go if the food and service in a fine dining
restaurant than in a casual, but the quality has become a consideration because of the cost-
effectiveness? There is no definitive answer to this question, but in one institution the approach
is to provide the best food at the best price with the maximum level of service. That is the very
essence of price and the idea at the core of the business model of Zara. The Erie Restaurant
(Demand) (Supply)
Eating Places
4.1.Success Factors
This restaurant business differentiates from the market by the development of a unique and
innovative fine dining experience. The restaurant is differentiated by its unique design and
decoration from the other restaurants in the area. Erie's major performance drivers include a
comprehensive personalized food menu and distribution of most globally and international food
items. The emphasis is on training and development programs for staff, corporate operations and
5. Conclusion
From the above competitive analysis the two main things are clear: first the industry is already
being captured by the leading restaurants and food chains of the world and that supply of food
and beverage items in the industry is also high that currently stands at $337,583,327 while the
demand is $297,905,851 so the retail gap of $39,677,476 is clearly visible. However, the
profitability and growth chances are also high if the Zara Restaurants and Lounge focus on
diversified and traditional food items whose demand in the market is high and these are still
References
at: https://www.census.gov/cgi-
bin/sssd/naics/naicsrch?code=454110&search=2017%20NAICS%20Search [Accessed 08
Oct. 2019].
Erie New Now. (2019). Food Service Equipment Market – 2019 Industry Trends, Size, Growth
https://www.erienewsnow.com/story/41071855/food-service-equipment-market-2019-
industry-trends-size-growth-insight-share-emerging-technologies-share-competitive-
EriePa. (2019). A Competitive Realities Report & Target Industry Strategy for Erie County,