Chikki Choo – Entrepreneurship 1

Executive Summary.

Chikki Choo is established based on the idea to run a business which is a combination of

Asian and Western cuisine with the main ingredient is chicken. The restaurant is located on Bloor

St West – M6G 1L1, with 2800 square feet, 27 tables which can cover 200 seats everyday.

The main target customers range from 12-60 years old, mostly focus on a group of friends,

family, and couple. The target groups generally have medium to high income, like having out on

the weekend, and spending time with their friends/family.

Our menu will have a variety of options for customers to choose with the spice level from

1-7 which are added to chicken. Moreover, customers can choose the homemade sauces which are

made from our chefs.

In order to advertise our restaurant, we primarily use social media, which are Instagram,

Facebook, BlogTo, and Yelp, to communicate and introduce our food to customers. Social media

is a powerful tool to engage between a restaurant and guests which brings a wide range of

opportunities to business.

The restaurant will be busy from July to December. Therefore, we will pick the average

quarter from April to June to calculate the revenue and expenses to analyze the operation. The

food cost and beverage cost account for 29.44% and 38.97%, respectively. Meanwhile, the

percentage of labour cost is 24.83% and the proportion of rent expense is 9.28%. The prime cost

percentage is 55.5% with the profit before tax is 16.46%.

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COMPANY PROFILE

Business Overview.

We came up with the idea to establish Chikki Choo after we visited the farm in the

countryside. The primary purpose is that we want to find something which can connect people and

the environment. That’s why we choose “chicken”. Basically, Chikki Choo is a cozy and elegant

restaurant with 48 tables, approximately 200 seats. All of our products will be environmentally

friendly which come from the farm. Furthermore, we seek the advantages to become leader in the

restaurant industry by offering the spice level from 1 to 7 which are added to chicken to increase

flavour. Our food may not be excellent than other competitors, but we will leave a mark to our

guests by our products and services. Our main theme colour will be orange as we want our guests

to imagine the colour of dish, which is a combination between chicken and sauces. We try to make

the restaurant as simple as possible since we want them to pay attention to food and service. We

also offer free drinks or sample foods for guests who have to wait for their table.

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Mission.

We inspire our guests by offering them a place as a second house, where they feel

comfortable to come, eat, and enjoy talking with others. Our chefs, bartenders, and servers are

trying their best every day to work together to achieve the common goal, which is understanding

what our customers need and satisfied their demand.

Vision.

Chikki Choo is our desire to introduce farm food to everyone, not only in Toronto, but

also across Canada, throughout the world. Delivering the food quality and adapting with the

culture in each location are also significant since customer satisfaction plays the best factor in

our business.

Location.

We are planning to put our first location on 651 Bloor St W - M6G 1L1. After taking a

survey from different location, we realized that we have potential opportunities while doing

business at Spadina Ave. We can take advantage this location to attract customers from other

places, such as M6H, M6C, M4V and so on. We cannot compete with other rivals at Korean

Town on Yonge street - M4W 2G4 even this is extremely crowded at night and on the weekend

because they have a wide range of chicken restaurants which attract mostly Asian guests.

Furthermore, M3N 2K4 is not an ideal place to open since customers do not really care about

chicken after the survey. The restaurant is approximately 2800 square feet, with 60% area is used

for dining room and 40% area is used for kitchen, storage, preparation, and so forth.

Marketing Research.

Our research will be analysed based on the template of the segmentation is shown as below,

according to Cross-Cultural Consumer Characterization.

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 Region Bloor St W - M6G 1L1
Geographic
Density Urban
Age 12-60
Demographic Gender Males & Females
Life-cycle stage young people to middle-aged

Income Middle to high

Occupation Students, employees, family/friend
group.
Behavioral Degree of loyalty Hardcore loyalty
Benefits sought Efficiency in time management, food
quality, and services
Personality Social and open-mind conscious.

User status New customers, people who like

chicken.
Psychographic Social class Middle-class and working

Lifestyle Aspirer, Succeeder, Explorer,

Reformer individuals, (according to
Cross-Cultural Consumer
Characterization.)

According to the research, we found that there are several competitors in the industry that we

should pay attention, such as Mymy Chicken, the Fry, Home of hot Taste, and so on.

Furthermore, based on the survey, we understand the trend of their flavour, what type of chicken

they liked, what spicy level they want to add on, and how we can communicate with the

guests…All of our expectations have been shown through the research and we can use this data

to build a menu, set up the marketing strategy that match to the target market we want.

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The majority of customers is spicy-food lovers with 42.1%. The percentages of customers who

like the original flavour and sauce on top are 21.1% and 26.3%, respectively. Hence, we can focus

and create a food menu based on understanding the trend of their flavour.

Some people have higher tolerance to spicy food than others. Therefore, we will create spicy level

from 1-7 to satisfy our customers’ demand.

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Customers not only dine in at the restaurant (in the outlet), but they also have a wide range of

options to order foods. Through the survey, we will consider to co-operate with delivery parties,

such as Uber Eats or DoorDash or create a delivery tool in our website. We just want to make

sure that we are able to connect and communicate with our guests

(Home delivery and takeout are always available in Covid19 pandemic)

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Key Competitor SWOT.

CHIKKI CHOO’S COMPETITORS SWOT ANALYSIS

COMPETITORS 1. Home of Hot taste
2. The Fry
3. MyMy
4. Dakgogi
In general, they are mostly having the same concept as Chikki Choo
by selling a combination of fried chicken with alcohol beverages.
STRENGTHS Home of hot taste
-Good food, ambience and presence at the prime location in Toronto
(Korean town)
-The selling prices are much more attractive with diversified menu (a
wide range of chicken dishes with more different signatures)
The Fry
-Great locations in downtown and other areas (total 8 locations)
-Brand recall value is high in Toronto (customers are sticking with
their brands and they tend to come repeatedly)
-High price value equation, so people of all segments can afford.
Dakgogi
-Located in downtown Toronto
-All the “fresh” (not frozen) chicken products are precisely
marinated; dipped in a secret batter mix and cooked to perfection.
-Good pricing strategy (they are using psychological pricing to
encourage customers to respond based on emotional impulses, rather
than logical ones)
MyMy
- Fresh chicken
-Good locations in downtown and North York

WEAKNESSES 1. Some are only present in Canada (by local people) with no global
presence
2. Intense competition means limited market share
3. Untrustworthy suppliers (unknown suppliers)
4. Lack of strong marketing efforts
5. Franchise management globally is a challenge
6. Limited seats (less than 100)
OPPORTUNITIES 1. Making the chicken better and more dishes (introducing new
products to their only chicken range. For example: offering
altenative dishes for vegetarian which would target wider consumer
group and result in more customers)

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 2. Growing incomes, busier lifestyle. Hence more & more customers
prefer dining out. Hence there is an opportunity to expand
domestically into more areas.
3. Global expansion (to others states and to US)
THREATS 1. New entrants are using low pricing which is more attractive
these days owing to economic crisis , high credit levels in US
2. Increase infrastructure cost
1. 3. Saturated fast food markets in the developed economies
1. 4. Trend towards healthy eating

Chikki Choo.

Since every competitor has their strengths, weaknesses, opportunities and threats, we will try to

learn and also differentiate from them as a new start-up. Firstly, we only use fresh chicken from

the farm and they are marinated then cooked on premise. Our menu is going to be diversified and

we will introduce more signatures. Next, we will add spicy level from 1-7 for customers to

challenge themselves. Interestingly, we are organizing some contests as well. The winner will get

cash and free meal for their rewards. In addition, we aim to open our location in downtown

especially closed to Spadina Ave because it is located in China town which is a flourish market

in Toronto. Therefore, our restaurant is going to be attractive to both local and international

consumers. Lastly, we are offering something unique that other restaurants do not have that is

free massage service and free juice while waiting. We believe that will exceed customers’

satisfation.

Social Entrepreneurship.

To ensure our sustainability, we aim to develop and implement solutions to social issues. To be

more specific, we will take a small part of the profit that we make to donate for social charities,

such as Food Banks Canada. Moreover, we also sponsor our food for the homeless at the end of

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the day instead of wasting them or throwing to the garbage. Next, we will launch some

campaigns on our social network channels to raise awareness of wasting food. To reach that

purpose, we are trying to be a role model by restricting our food waste as much as possible since

this is a controversial issue among all the restaurants in general. Then we are going share our

methods to every business and individual. Hopefully that can help people and businesses to

control their leftovers.

BUSINESS MODEL CANVAS

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MARKETING PLAN

Full menu.
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Recipe Cards.

Kindly check at the Excel file that is attached along with this file.

Pricing Strategies.

The psychological, optional and value pricing strategies are applied into the price list. Because

the target audience is a wide range of people from youngsters to middle age at all genders, the

price list is totally affordable for these targets. We would like to encourage consumers to buy

based on emotions rather than common-sense logic. For instance, 4 pieces of drumstick with any

flavour is set at $10.9 instead of $11. Even though the difference is small, consumers will

perceive $10.9 as being substantially cheaper. Regarding to optional pricing strategy, we use it to

encourage consumers buying more items once they purchase. For example, a guest after

choosing main items on the menu, he or she might want to get more side dishes such as Garlic

Fried Rice or Organic Green Salad since they perceive that eating only chicken is not enough.

Therefore we can gain our profits by offering neccesary items on the menu which are good

pairings with main course. Lastly, value pricing strategy is also an effective way to sell more

products. By reducing prices for bigger size of chicken, customers tend to buy more of larger

chicken portions because “bigger is cheaper”. To illustrate, if a guest purchases 20 pieces of

Wingette and Drumette (large), they just have to pay $27.9 rather than purchasing 8 pieces

(small) and 12 pieces (medium) with the total of $31.8 seperately. That means they can save up

to $3.9 which is a very good deal.

External Marketing Strategy.

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Restaurants can benefit significantly from being active on social media. Social Media is a great

vehicle to be discovered by new clients, to reach out to customers who would never have known

about our restaurant, to build loyalty in current clients, and this truly is a fantastic customer

service platform. It can also detract attention from review sites and allow you to control the

brand. But before we start posting something on social media, we need to get our ideas

organized. Here is Chikki Choo’s media plan that will convert our social media audience into

customers in seats.

In order to promote Chikki Choo around GTA, we have come up with some various channels

that can help building our reputation.

1. Set up business account on Google My Business/Google+.

This is an efficient tool due its reliable functions. Firstly, customers can easily search any

information about our restaurant on Google and this will show a general picture of Chikki Choo.

For example, when they search Chikki Choo on Google search engine, all details such as the

store’s address, directions, opening hours, phone number, photos of actual and reviews are

clearly shown. Moreover, reviews on Google are mostly from real users with real restaurant

experiences so customers can take them as good references to take a chance trying our chicken.

Next, by taking advantage of using perfect tools for digital marketing such as SEO (Search

Engine Optimization) and Google Adwords especially when people search for some keywords

related to our brand like “fried chicken” or “chicken in Toronto”, our place will be boosted on

top search.

2. Set up an account on Yelp.

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In fact, there are over 178 million people visiting Yelp monthly and more than 171 millions

feedbacks have been contributed by Yelp users in 2018 (Bassig, 2018). Therefore, this is also an

excellent tool to fully track online reviews from the guests because we know that we are getting

honest commentary from real people. Without much effort, we can create an account on Yelp,

add on our menu items and update latest promotions. Afterwards, users will actively contribute

their photos, make rating and write some comments on this site. Based on these comments, we

are able to deal with problems of service that need to be solved then offer them any solution if

possible or express gratitude to specific customers for their good comments. More importantly,

Yelp also offers another great function that allows users to book for their tables in advance

instead of waiting in line for hours to be seated.

3. Engage with customers on Facebook.

Chikki Choo official Facebook Page: fb.me/ChikkiChooToronto

Clement (2019) says that the number of Facebook users in Canada accounts for 23.6 million and

is predicted to grow to 24.7 million by 2023. Unsurprisingly, the current Facebook usage

penetration in Canada is 64 percent of the population and Facebook was ranked first in terms of

popularity among Canadian Internet users. This is a really powerful platform for businesses to

build a community, engage with prospects, and encourage customers to spread the message.

Furthermore, Facebook pages can be picked up by search engines, giving businesses even more

exposure. To be more specific, people should start posting exclusive updates, photos and

promotions that will help to form an even closer bond with customers. If the content is

interesting enough, fans will Share or Like our messages with friends to drive more followers

and, ultimately, business. Regarding to our business, we are trying to create more engaging posts

with users and always remind them about our brand. So that whenever customers want to eat
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chicken, they will consider Chikki Choo on their minds first. To illustrate, we are currently

working on new dish and keep posting to offer customers giving it a try. Similarly, we are

creating some interesting posts for users to tag, engage with their friends and also encourage

them to eat at the restaurant then capture their moments at Chikki Choo. Hence whose post is

posted on our site, they will get dining e-vouchers. Last but not least, we always organize “Spicy

contest” every weekend to challenge everyone and offer a big reward so by this way, we can

enhance curiousity of chicken lovers.

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 4. Take advantage of great pictures on Instagram to speard out Chikki Choo page.

Instagram page: https://www.instagram.com/chikki.choo/

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According to a 2019 report, there were 11.8 million internet users in Canada using Instagram via

smart devices at least once per month in 2018. By 2023 the number of Instagram users in Canada

is projected to reach 14.3 million (Clement, 2019). It is obvious that more and more users now in

Toronto are mainly connect together on Instagram since its functions are various and it is

reachable anytime. By this tool, our creativity for image competition is even more better since

everyone can easily get attention from attractive photos via new feed or hashtags. Similarly as

Facebook page, we keep posting best angles of our food along with nice captions and add some

cool hashtags. We also give away free movie tickets every week to engage more users by letting

them tag more friends. Next, Instagram is a potential channel to laucn our contest as well, it can

help increase more followers for Chikki Choo instead of buying fake followers. Finally, we are

planning to coorporate with BlogTO which is the biggest site with high traffic about travelling,

cuisine and people in Toronto. This would be the fastest way to reach out our target audiences.

Thanks to these excellent features that Instagram has provided, we can track exactly how many

people have reached the posts, liked, commented and engaged on our channel.

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Strategic Alliances.

In order to support our business, we have plan to cooperate with other businesses. First to all, we

will receive chicken from Chicken Farmer, which is a company to supply chicken in Ontario.

The reason we choose Chicken Farmer is because of their fresh and high-quality chicken. We

always support products which are raised by Canadian farmers. Next, we will get an agreement

with LCBO to buy beers. There is solely a place in Ontario to provide alcohol beverages that the

restaurant can trust. Furthermore, we will connect with Moneris Company to use their service for

payment. According to the research, Moneris is one of 5 top Canadian payment companies which

has approximately 3 billion transactions every year (Space Techonologies, 2019). Also, after

discussing with other managers, we realized that we could get a good percentage for the charge

fee if we are good at negotiation. In addition, we will collaborate with Coca Cola to order drink

since customers tend to order Coke or Diet Coke for their drink with 5.97 billion consumers,
Chikki Choo – Entrepreneurship 24
compared to Pepsi with 2 billion consumers, according to the survey from Statista (Richter,

2019).

OPERATION

Process & Production.

Here in Chikki Choo, we aim to create a friendly environment and every department in our

restaurant is always consistent together. To be successful, we take advantage of the key factor

which is called ‘Teamwork’ to make sure we will exceed customer’s needs. First, we make a

printed list of tasks that are essential to business success, how to do these tasks, and who is

responsible for the functions listed. It will be a comprehensive collection of guidelines, checklist

and duties, and such other information that every employee needs to know. It will act as a

reference guide so employees can quickly check this document if they need to know something.

By using this checklist, the staffs can complete tasks in a particular order and we will also renew

the list every quarter. Second, we will provide an instructor for each new staff’s training process.

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A clear guideline with an experienced employee will reduce the learning time of new trainee and

help in maintaining the standard and consistency of the operations.

Chikki Choo’s Steps of service.

With the arrival in great numbers of guests which is up to 200 people everytime, we need to

ensure the food is always served on time. Therefore, our staffs are very multifunctional.

Specifically, the servers are also can handle taking responsibilities as a host/hostess.

1. Host/hostess

They are vital to the guest experience since they are the first impression of Chikki Choo. They

will answer the phone and greet the guests with a big friendly smile at the reception table. For

this function, demeanor and appearance are the most crucial, as the door positions require a

particular type of professionalism. Hence, the servers who take turn doing this will dressup

differently. After taking guest’s booking, the host will allocate the guest either to waiting area or

to special massage chairs service in case if the guests have to wait for more than 30 minutes and

they do not know where to go while waiting (maximum 20 minutes massage for each guest).

Interestingly, they are also offered free juice as an extra gift. Then when the table is available,

the host will seat the guests to their table and assign the server of that area to the table.

2. Server

The server is the most important point of contact for the guest, the face of the company, and the

person with the most responsibility for whether the guest leaves with a good experience. The

server will smile, make eye contact, use hospitable language and introduce their names. If they

do not regconize the guest, they can ask them if they have been here before. Then they will

actively describe the menu features with any specials. Next, they will start with taking drink
Chikki Choo – Entrepreneurship 26
orders and suggest with specific food & drink pairing. Consequently, server will immediatelly

place the drink orders to POS system and leave a couple of minutes for customer to design their

meal. Afterwards, drink orders are delivered within 4 minutes at the table and server takes the

guest order following their seats in a clockwise direction. The most important thing is that the

server must have to ask if the guest has any allergy to the chosen dish. After punching the food

orders, server will deliver the food to the guests in 15 minutes. They also have to check back

after few bites to make sure everything is okay and fill any water if needed. In the meantime,

server can prepare the bills. When the guests are checking the bill, server can remind the guests

that he/she will take the payment when they are ready. Finally, after receiving payments, servers

will thank the customers with a warm sincere smile and invite them back for spicy contest taking

place every weekend. Then they will reset the table for next guests.

Roster/Schedule & Labour Cost.

According to our calculation, Labour cost accounts for 24.83% (data on excel file). The

restaurant will open from Monday to Sunday, between 11 am and 1 pm. We build a working

schedule with two shifts every day, from 11am to 6:00 pm and 6:00 to 1pm with 15 minutes

break. The average salaries will range from CA$12.2 to CA$18 plus tips. We also have 4 part-

time staffs who will cover for full-time staffs on their day-off. This will reduce the pressure of

finding employees to cover other’s shift in case of emergency and also create a consistency of

the schedule to full-time staffs.

The detail information is provided on excel file.

Chikki Choo – Entrepreneurship 27

 Furthermore, if a scenario of low service on the weekday, we can cut off the working

hour of part-time staffs to reduce the labour expense. Moreover, we always make sure that full-

time staffs will work on the weekend to ensure the well-performance of service and we always

have part-time staffs to back up if the restaurant need it.

Internal Marketing/Service Culture.

Internal marketing plays an important element of a business. It refers to a process that occurs and

is implemented within an organization, with an intention align, motivate and educate employees

so that they are succesful in delivering quality customer service (Agnihotri, Hu & Krush, 2016).

As a new restaurant like Chikki Choo, one of the chief areas of importance for us is to cater to

the needs and requirements of the customers. We always try to be flexible with new challenges

and adapt with feedback from customers. In more detail, we conduct a meeting with the

stakeholders once a week to look through our developing progress and make a decision for a new

change if there is any problem occuring during first opening season. We keep in touch with the

stakeholders to make sure everything is running smoothly and on a good track that we have

targeted. Moreover, the quality of the products and the service provided to the customers has

deep implications and importance since customer satisfaction is directly related with the success
Chikki Choo – Entrepreneurship 28
of an organization (Bell, Buttigieg & Iverson, 2015). Hence, we are not only improving and

focusing on every single food or beverage but also create the effective trainings for all staffs

here; It will help the employees to be more aware and educated about the products and strategies

of the restaurant. Undeniably, internal marketing has great importance regarding smooth and

efficient functioning of the operations of the business. Therefore, job descriptions and

recruitment programs should be designed to attract quality candidates. In training process, the

employees should be shown that they are very important to this restaurant. Every staff will get a

specific training program within a month on how to know some basic information about the

recipes, food pairing and how to deliver best services to customers. Because the big problem we

have tried to avoid is that employees suffer from lack of knowledge about the product of an

organization and lack proper understanding about the importance of quality service. Hence, we

always treat our employees as important stakeholders and provide quality training and education

to the employees so they are more versed with the importance of quality service and the product

of the restaurant. But to do that, we focus on effective communication as well because

organizational harmony is an important factor regarding internal marketing. There needs to be

good communication and strong relationship between employees, managers and the CEO (Saad,

Hassan & Shya, 2015). Particularly, we never push or force anyone to do anything, we often

encourage people by making a friendly working environment, resolve any conflicts whenever it

happens, conduct staff meetings, workshops and create a team-building program every 3 months

to get more engagement with the staffs. Once they get to know each other well, they can do

teamwork and support together to improve their performances better. Besides, the role of a

supervisor is also essential for the operation. They are not only about to monitor insight activities

through their simple observations but also should communicate their enthusiam and conviction to

their staffs to increase the performance. For example, they can conduct some in-house surveys

Chikki Choo – Entrepreneurship 29

sometimes to seek out employee desires and needs. Last but not least is retention, all the staffs

should be retained as long as possible with a competitive salary and attractive bonus system.

Employing these factors well can improve employees’ organizational commitment, job

motivation, work engagement and work satisfaction. Obviously, internal marketing requires the

participation of everyone among the business to be successful. It is an ongoing process that

should not end or weaken, but with its proper application, definitely will bring success.

Are you ready to be our next partner?

Financials.

Kindly look at the Income Statement file that is attached along with this essay.

FOH & BOH Layout.

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Chikki Choo’s theme.

Since we are operating a casual dining establishment, we focus on simplicity but somehow the

entire look of Chikki Choo still shows its elegance. For quality sanitation, we have purchased

tables with marble surfaces, stools with cushioned seats, and booths that can be easily wiped

down and cleaned. Furniture shape can also affect the customers' dining experience. In fact,

round tables encourage conversation, but square or rectangular tables are space-efficient.

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Therefore, we invested in both kind of tables for each guest’s purpose. Moreover, we arrange

some potted plants around random corners as well to emphasize the green for our restaurant as an

environmental friendly place and also because green is the opposite of orange (our theme color).

Eventually, we always open good lists of music with medium volume and offer unlimited WIFI

access.

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References:
Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing
customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172-180.

Bassig, M. (2018, Dec 4). Yelp Factsheet: Stats Your Business Needs to Know. Retrieved
March, 2020, from https://www.reviewtrackers.com/blog/yelp-factsheet/
Bell, S. J., Buttigieg, D. M., & Iverson, R. D. (2015). Relational Internal Marketing: An
Empirical Investigation. In Global Perspectives in Marketing for the 21st Century (pp. 158-158).
Springer International Publishing.

Clement, J. (2019, Sep 18). Facts, Social networking in Canada - Statistics & Facts . Retrieved
March, 2020, from https://www.statista.com/topics/2729/social-networking-in-canada/
Richter, F. (2019, May 16). Retrieved March 2020, from
https://www.statista.com/chart/13893/most-chosen-fmcg-brands/

Saad, N. M., Hassan, S. H., & Shya, L. M. (2015). Revisiting the relationship between internal
marketing and external marketing: The role of customer orientation. The Journal of Developing
Areas, 49(3), 249-262.

Space Techonologies. (2019, Sep 30). 2020’s 5 Best Payment Gateways in Canada. Retrieved
March 2020, from https://www.spaceo.ca/best-canadian-payment-gateways/

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