Paper Example. KETO Restaurant Report

The term value proposition gets applied to define a characteristic, innovation, or an exceptional service that makes a given product, or business to attract more customers (Payne, Frow and Eggert 2017, p.467). A value proposition should be one that enables the customers to get interested. My business will be a KETO restaurant. The current paper is a business report about my business.

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Value proposition

You Will All Leave Happy and Satisfied

Located in a serene environment, our restaurant is the best place to have a meal and relax. Our services are unbeatable since we are full of style. Our KETO diets are the best as experienced chefs prepare them. Begin your day at our restaurant for a protein breakfast, and then come over for lunch and a special dinner in the evening. Our ready-to-serve staff will make sure that you get served to your satisfaction. Plan to visit our restaurant, and you will never regret it.

PEST Analysis

Political analysis

Currently, the USA is politically stable. Thus it has a suitable environment for me to venture into the KETO business. Additionally, taxation rates are not very high in the country. The regulations for industrial safety are stricter, though I can cope with them. The country does not have a risk of instability. Thus it is good for the business.

Economic analysis

The USA has a capitalism economic type of structure (Lordkipanidze, 2018). Therefore, I will have full ownership of the business and enjoy the benefits. Additionally, the USA has a free market system; consequently, the government does not involve itself much in business. The country's infrastructure is also of high quality. Therefore, economic factors favor my business.

Social analysis

The USA has a large population; therefore, the country will favor my business. America is also made up of social classes, with the majority being the middle class (Lordkipanidze, 2018). Therefore, many of the Americans can afford the products I will sell in my KETO business.

Technology analysis

The USA is a country with high technology. The technology will help me make my work easier. For instance, I will use the internet for marketing my KETO business.

Porters Five Forces

Threat of entry

Opening a KETO restaurant is easy. The reason for this is that it does not require massive investments compared to other businesses that are larger (DeMicco 2015, p.424). The costs usually get fixed, and the rent is not high. Therefore any chef or businessman can venture into the business. Because of the survivorship bias, individuals can view the KETO restaurant business attractive. Therefore, there is a high possibility of a threat due to competition brought about by new entrants.

Supplier power

The bargain of KETO diet products with suppliers is challenging. The reason for this is that there lacks competition among the suppliers of the products. Additionally, the suppliers usually sell to many more restaurants, and thus it is hard for the restaurant to bargain.

Buyer power

An advantage of the KETO restaurant business is that customers cannot bargain on the price of food sold. However, the restaurant can also not sell its products at high rates since customers know the costs of the products (DeMicco 2015, p.424). Therefore in the case that the restaurant hikes prices, consumers have the option of going to another hotel.

Threat to substitutes

Substitute products are one of the most significant competitive challenges of businesses. In the KETO restaurant business, consumers can opt to get the products from supermarket chains. In hard economic times, customers can decide not to go out to eat in restaurants and cook at home.

Competitive rivalry

Competition is usually severe in the industry of restaurants. Large restaurants can outdo small ones through advertisements (DeMicco 2015, p.425). Also, customer loyalty in the restaurant industry is minimal, since one bad experience for a client may make them never return. Therefore, the competition is intense.

References

DeMicco, F.J., 2015. Cracker Barrel: A strategic case study in restaurant management. Journal of Foodservice Business Research, 18(4), pp.423-434.

Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.Payne, A., Frow, P., and Eggert, A., 2017. The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45(4), pp.467-489.