Week 9 EOC: Tipping

With the restaurant industry growing more and more, that calls for more employees--  tipped employees, such as waitresses, bussers, servers, and carhops. Over 10 million people in the United States are working at a federal tip-wage, only 2.13 an hour.

However, the concept of getting rid of the tip-wage has come to the mind of many. If the tip-wage is cut and all employees within the food service industry are put at minimum wage, this can cause a problem. "The federal minimum wage for the latter is $7.25, but the federal minimum wage for tipped workers has remained stagnate at $2.13 since 1991, with no adjustment for inflation." (http://www.motherjones.com/politics/2014/05/minimum-wage-tip-map-waiters-waitresses-servers)

With a tip-wage being diminished and workers being put on the state-level minimum wage, jobs can be lost. In the food service industry, labor cost is one of the most important factors of the industry. Having more employees at a minimum wage level will deeply affect the staff situation-- employees may notice a cut in hours, or even be laid off. 

Within the industry are different components that qualify an employee as a "tipped employee".
A tipped employee must make over $30 a month in tips to qualify as one. As the tip-wage is set at a federal rate of $2.13, an employer must make up for the lost wages if an employee is not making the equal amount to the federal minimum wage. " A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference." (https://www.dol.gov/general/topic/wages/wagestips)

As the industry grows, more employment opportunities open up. However, industry growth can be brought to a halt if tip-wage is taken away. Within the industry, rumors about the tip-wage being taken away can cause job loss and cut hours. With many youth working in the industry as a starter job, employers are required to pay a set minimum wage on the tipped employees. "The 1996 Amendments to the FLSA allow employers to pay a youth minimum wage of not less than $4.25 per hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment by their employer. "(https://www.dol.gov/whd/regs/compliance/whdfs15.htm)

Week 8 EOC: Three Quotes

1-Examples of competitive advantages include a convenient location, specialty food, personalized service, takeout service, delivery service, ambience, and entertainment. (pg 13)

2-In some cases, industry standards or norms can also be very valuable in helping managers establish their own operation’s service standards. If service standards are not carefully identified and documented for future reference, the standards may not be known and followed by all. (pg275)

3-Value is the difference between what customers get when they buy a product or service and what they pay to get it. All customers desire good value. But good value is not the same as low price. (pg 6)

Implementation, Evaluation, and Control

Without implementation, evaluation, and control, our business, Comfort house, our managers would not know how well our business is doing. "Once a marketing evaluation is completed, it is important to use the information obtained to identify how to improve the success of both the plan and the business. If, for example, an establishment falls short of an external or internal marketing goal, managers need to determine the cause and what needs to be done to correct the problem." (pg 14) We took advantage our our promotions and incorporated them into our evaluations. We are able to see returning locals and even returning tourists.

Distribution

Distribution can refer to many parts of a business-- distribution of product, distribution of services, and so on. "Samples often induce an immediate purchase, allowing the establishment to quickly sell an item. Depending on the portion size of the sample, the product, and its distribution, samples may be costly or provide a poor return on investment." (pg 161)
We are hopeful, and confident that if Comfort House distributes samples along the streets of Downtown Las Vegas that our product will become recognized and popular. Not only will our product be recognized, but our service as well. "Experienced managers working in the restaurant and foodservice industry know that the top complaint is not bad food; it is poor service." (pg 305)

Promotion

Only being open for a month does not allow our business to have many promotions. However, we plan to give the first 50 people their first meal free, just for coming in! As most restaurants have, we plan to offer a ten percent discount for all military veterans, firefighters, and police force personnel. One way we plan to promote our month-long business, is sending our employees around downtown and handing out flyers for our grand opening. "In the restaurant and foodservice industry, promotion is the means used to communicate to customers." (pg 27)

We hope to see many people try our new restaurant, but more so we hope to see people return for a second meal!

Price

Price is " What a customer gives up to obtain a product from an operation" (pg 26)
With popular, easy-to-cook foods, we have established a fair price for the experience and the food. We have developed a healthy price that, with generous portion sizes, allows our company to make a profit as well as keep guests happy with price. "Value is the difference between what customers get when they buy a product or service and what they pay to get it. All customers desire good value. But good value is not the same as low price." (pg 6)

Product

Product is the most important part of an establishment. Deciding what you're going to sell is crucial to your business. At Comfort House, we chose hot foods for the upcoming cold season. "A fad is a short-term increase, sometimes quite large, in the popularity of some product or service. In contrast, a trend is a long-term change." (pg 12) Hot foods are a trend in the cold season because they keep people warm, and that is why we believe it is important to give our patrons a chance to keep warm while enjoying the experience of our city. Along with the product, we ensure that service quality is brought along with our great product. "Even when an establishment’s product quality is high, its facilities are attractive, and its prices are perceived to be fair, poor service quality most often will result in customers who will not come back or recommend the establishment to others." (pg 43)

Target Market Strategy

With Vegas being a large tourist attraction, many restaurants located on the Strip cater to tourists who are willing to spend the money. Many locals do not visit the Strip because the are aware that it is always busy. We chose our location in Downtown Las Vegas as we know that both tourists and locals can enjoy the part of Old Las Vegas. "One of the best methods for understanding a target market is to develop a guest profile. A guest profile is a marketing tool that helps managers focus on the specific characteristics of guests they hope to attract to their operations." (pg 6)

With many younger tourists coming to celebrate their 21st birthdays with an overload of alcohol and gambling that they came to Vegas to experience, we have developed a short and simple menu that will be more popular within the younger age groups. Millennial's in this time are willing to try new and unique foods that they have not had before. "It is important that restaurant or foodservice managers recognize that their target market must have both the desire and the ability to buy the items the establishment sells." (pg 79)

SWOT Analysis

The SWOT analysis portion of a marketing plan is one of the most important operations of the marketing plan. This analysis identifies a businesses strengths, weaknesses, opportunities, and threats. Throughout a businesses lifespan, they are able to identify new SWOTs. "SWOT analysis considers the proposed establishment’s strengths, weaknesses, opportunities, and threats from the viewpoints of the owners, managers, employees, and customers. " (pg 104)

Las Vegas has a high number of restaurants, with cuisines from around the world. Asian, Thai, Mexican, American, Italian-- one of the most diverse cities in America when it comes to our foods. As we develop our SWOT analysis, we must look at all different cultures established throughout our city.

" To conduct a successful SWOT analysis, owners and managers must be realistic about the strengths and weaknesses of their operations as well as the opportunities and threats they face." (pg 105)

Our strengths include having comfort-style foods in a comfortable area, being a mobile restaurant where patrons are able to grab and go, and having a variety of hot foods during a cold season-- a good combination. " Increasingly, a management team’s knowledge and use of advanced technology can be viewed as a competitive strength and can be listed as such in a SWOT analysis." (pg 106)

We have a few weaknesses that do surround us! Many people come to Las Vegas to have top-quality foods, therefore, they may turn to top-dollar restaurants. Restaurants that have a view of the city are more likely to draw patrons in. Rather than catering to only tourists, we must cater to locals in order to keep business going. 

Opportunities open us as we chose to open our hot foods location up in the winter months. With the most tourists Las Vegas experiences all year, we expect to have more business. Being close to Fremont street, one of Las Vegas' best tourist attractions, we have the advantage of having our restaurant close to the entertainment. 

We are threatened by competitors that can offer a cozy environment for top dollar foods-- which many tourists come to Vegas for. 

Objectives

A businesses objectives are important to establishing its target market. Using objectives to set goals is important to the business-- where the business can link its objectives to its goals, and its goals can be put into the marketing plan and advertising campaign. Developing objectives and goals can lead to a successful business if done correctly. "Identifiable objectives contained in a marketing plan may include the number of customers the operation seeks to attract, its total revenue goals, and measures of the average amount spent by guests during each visit." (pg 13)

An established restaurant has a developed marketing plan that contains all objectives, goals, promotions, advertisements, and more. Establishing these components within the business is crucial to a supportive system. Staffing is also a critical part of a businesses objectives because these people are the front man to the establishment. "Strategic marketing activities are those that address an operation’s basic business objectives."(pg 10)

Simple objectives should always be established-- holding them in a managers head does not establish these with all the employees. Lack of communication will not allow the business to successfully grow on its objectives. 

At Comfort House, we have established objectives in order to run our business smoothly.

"We will promote our product and service to our customers in such a way that they will be able to remember our establishment"
"Develop awareness of our establishment and invite new customers into a unique environment"
"Develop a successful marketing plan that will achieve healthy menu choices in an enjoyable environment"

Business Mission Statement

A business mission statement provides patrons with a summary of information on the businesses goals. "Value is the difference between what customers get when they buy a product or service and what they pay to get it. All customers desire good value. But good value is not the same as low price." (pg 6)
"At Comfort House, We strive to comfort you with foods in a unique setting in a home away from home. Warm foods will keep you and your family happy this holiday season. We value our customers with good value-- generous portions for a good price."

These goal statements show patrons how important they are to the businesses success. Industry standards are used in present day to draw attention to customers. "In some cases, industry standards or norms can also be very valuable in helping managers establish their own operation’s service standards. If service standards are not carefully identified and documented for future reference, the standards may not be known and followed by all." (pg 275)


Our business wants to allow foods from all over the country to be brought into one location, located in one of the most famous cities in the united states. We strive to entertain tourists of all ages within our setting, with the option of eating in and watching our employees make your hot and ready foods, or taking a basket and enjoying the wonders of Old Las Vegas.

Week 7: The Pitch

Comfort foods are always in demand when the cool weather sets in and the holidays come around, and as the new-coming pop-up restaurant in Downtown Las Vegas located on Ogden and 9th, this homey-feeling comfort food bistro will be the new location of trendy and unique foods. "Examples of competitive advantages include a convenient location, specialty food, personalized service, takeout service, delivery service, ambience, and entertainment." (13) Snack items call for a high turn rate that can satisfy the customers but also allow them to enjoy the view of Downtown Las Vegas while eating in a positive environment. Falafel, House-made mac and cheese, fruit kebobs, fried pickles, hot soups, and to-die-for cheesy garlic bread make up the small menu that keeps the Comfort House busy. The one month standing restaurant will invite patrons of all ages to try our newly opened restaurant in a unique location.  "To consistently market quality food and deliver on that promise, managers must ensure that employees have the proper training as well as the proper equipment and tools."(pg 35) Just a 5 minute walk away from the MOB museum and a couple more minutes away from Downtown, patrons are able to grab a disposable fry basket filled with their dish of choice and enjoy the beauty of Old Las Vegas. At Comfort House, We strive to comfort you with foods in a unique setting in a home away from home. Warm foods will keep you and your family happy this holiday season. We value our customers with good value-- generous portions for a good price. "Value is the difference between what customers get when they buy a product or service and what they pay to get it. All customers desire good value. But good value is not the same as low price." (pg 6)

Week 6 EOC: Setting Menu Prices

With setting menu prices, there is more to the process rather than finding your ideal food cost percentage and calling a price good. The dishes worth is what sets the dishes price. In order to draw customers in, prices must stay competitive within the area and industry to keep customer flow steady. "if an owner plans to open a quick-service restaurant (QSR) featuring hamburgers, he or she should explain whether the proposed restaurant’s pricing structure will place it in the lower, middle, or higher range of its competitors’ pricing structures." (pg. 100) 
Prices within a restaurant must remain at a number that will satisfy guests rather than scaring them away. Too low of prices can scare guests away because they fear it may not be 'of quality'. However, the prices cannot be too high for guests fear they are paying 'high price for low quality'. 
The issue with advertising items at a low price to the public, is that once at that price, it must remain the same in order for customers to return to the establishment. If advertising a dish for $9.99 at a promotional price, they may bring in new customers, but do not have the ability to raise the price without upsetting cliental, unless they plan to alter the dish in a way to make it seem more filling or special. "a plan developer might highlight that his or her establishment will feature healthy and nutritious menu items in a fast-casual setting, or that it will offer fine dining in an atmosphere that takes advantage of a spectacular ocean view." (pg. 101)
With that, planning a restaurant should take into consideration where their restaurant will be located and should establish their target market. These components can have a large effect on what their customer base will be. "A guest profile is a marketing tool that helps managers focus on the specific characteristics of guests they hope to attract to their operations." (pg. 6)

Week 2 EOC: Restaurant theme

Location- Myrtle Beach, South Carolina 29572. Located just off the Grand Strand, Hawaiian Luau is open to people who love fresh seafood and a unique style eatery. With patio views of the ocean and inviting staff, the new location of this popular restaurant has brought in a well-formed customer base.

Population- Myrtle Beach is actually a smaller town located on the coast with a population of approximately 27,000 people. With tourists and visitors, Myrtle Beach sees well over 10 million people in and out of the location throughout the year.  

Statistics- Myrtle Beach has a median age of 40 years old. Many of the permanent residents are living off of retirement. The residents, on average, make between 30-40,000 dollar per household. Comprised of almost 70% Caucasians, the community homes a large number of African Americans and Hispanics.

Mission Statement- At Hawaiian Luau, we strive from customer satisfaction. From our organic, locally grown produce to our daily shipments of meat, poultry, and seafood, we buy our product to give you a meal for a deal.

Main Entrance- Guests will be greeted by a host as they walk in the door. To both the right and left side, the customer is able to see aquariums of exotic fish and plants.

The Host- The host wears a white oxford and a red tie. Black slacks and matte black shoes will call for an inviting welcome into the establishment.

-Behind the host there is a visible 14 seat bar that allows people to dine and enjoy their drinks. The host guides the customers past the right side of the bar and in to the dining area. The dining area consists of rustic floors and custom-built wooden furniture. Lights are dim but focus on each dining table and allow the guests to comfortably read the menu. The casual dining room offers soft music and candlelit tables.

 In a separate dining area are Teppan tables and are optional for the patrons on request.Along with the causal dining room and teppan dining room is the optional outdoor dining experience. This is a large patio dining arrangement with bench seating, a gas fireplace and kerosene torches around the perimeter. During summer, water misters are turned on at evening time and soft music is played.

Servers wear black slacks, black shoes, and a black oxford. We provide a teal bow tie to fit our unique dining colors.

Week 3 EOC: New Las Vegas Stadium Foods

Las Vegas locals have heard the idea of a new NFL stadium to be built in the gambling city. With a proposed 1.9 billion dollar stadium, the funding is only a mere 750 million dollars. Although the plan could go through with short funding, what is going to be the price paid for every other aspect of the stadium? 

Other than parking fees racking up each hour for the poor locals and visiting tourists, there are other huge expenses to look out for-- the stadium's food. With little funding for a new stadium, the NFL must have a way to make money. How about those $2 hot dogs you bought at your last Cowboys vs. Vikings game? What about $10 for the new stadium? That Dos Equis you love oh-so-much, you paid 6-7 dollars for before, but visit the Las Vegas NFL stadium, And you're going to be paying over double for that Mexican Beer.

"A buyer’s income level is one of the most influential factors affecting purchasing decisions." The quote used is only to prove that, if someone is willing to pay the $300 dollars for tickets, and $150 for parking, they will be willing to pay $15 dollars for a beer and $10 for a hot dog.

Week 4 EOC: Chipotle, The E coli outbreak

In 2015 one of America's popular, new-rising restaurants suffered a large fall-- an E Coli outbreak. Chipotle Mexican Grill found that its outbreak had them suffer a large loss-- in revenue, that is. SO how did/will Chipotle gain its comeback? The upscale fast food restaurant began by, in a sense, giving away free food. This strategy was used in order to keep returning customers and build a new customer base alongside that. Chipotle had decided to hold off on new establishments being open in order to keep focus on marketing plans within the already-existing stores. Creating new environments offered a friendly and inviting space for new clients to see what the chain has improved. Chipotle held a company meeting in February of 2016, where they discussed marketing tactics and how they will gain customers back.Their plan was to hand mail buy-one-get-one coupons to loyal customers in which they lost. "Some guests may come to an establishment primarily for its products, while others may come because of the service or convenience it provides" One strategy the used was to have their fresh produce be cut at a different location, in order to prevent cross contamination. If chipotle identifies its target market, they can find better marketing strategies for their chain. "A peer group is a social group consisting of people with similar characteristics such as interests, age, education, or socioeconomics status."