CHAPTER1: PERSONAL COMPETENCIES

AND THE BUSINESS ENVIRONMENT

Lesson 2: Planning a Food Service

Business
 LEARNING OBJECTIVES

• Explain the product development process

• Recognize the different types of consumers
• Describe the innovations in food business
• Prepare a business plan for food service venture
 PRODUCT DEVELOPMENT

• Refers to the process of creating an

entirely new product or replacing or
enhancing an existing one.
Idea generation and
screening Product development It involves the
It involves market and testing implementation of
research and
the total plan and
business
full of production
profitability
activities
analysis.
It involves It involves the
systematic searching creation and
for new business enhancement of
opportunities and products and/or Launching and
deciding the most Analysis services an pilot commercialization
feasible. testing of such.
 A. NOVEL PRODUCTS

• refer to the latest the products that are

not previously introduced in the
market.
 B. ME-TOO PRODUCTS

• refers to product that are similar or slightly modified form of

someone or another’s company idea
 C. LINE EXTENSION PRODUCTS

• Refers to products that have an additional feature

or form, but is similar to the existing products.
 DIFFERENT TYPE OF CUSTOMERS

1. The Intelligent Customers limit their purchases based on their needs

and ability to pay.
2. The loyal customers they are the ones who are completely satisfied with
the products and services being offered.
3. The bargain addict customers they purchase products with discounts or
when regular products are bargained on sale.
4. The impulsive customers they are urged to purchase commodities that
are enticing and useful during that time and they tend to regret their own
decisions afterward.
5. The wandering customers they scrutinize the products available in the
market and are usually not interested in buying.
 INNOVATION IN FOOD SERVICE

• Extended shelf life of food

• Improved food palatability
• Enhanced convenience
• Increased healthfulness of food
• Advanced food service equipment
 PLANNING A BUSINESS

• BUSINESS PLAN is a written document

that describes and explains how business
strategies are implemented.
 CORE SECTIONS OF THE BUSINESS
PLAN

1. Executive Summary- contains brief description

of the business. It highlights or summarizes briefly
the other sections of the plan.
II. Description of the business- It describes the business
and identifies the products and services it offers. It include
the mission , primary aim, and strategic objectives of the
business. The story of how the business is formed is
usually included in this section.
a. Business model, structure, or type of operation
b.Legal forms (sole proprietorship, partnership,
corporation)
c. Person to sell and distribute products and services
d.Best features of products and services