Market Analysis

The restaurant plan to open a Cypriot cuisine restaurant in the heart of London. The restaurant has undertaken this study to weigh the pros and cons of opening and operating such business. The owners of the business are of Cypriot descent; they not only have extensive knowledge of Cypriot cuisine but are also aware of Turkish and Greek cuisines which are closely related. Furthermore, the authentic ethnic Cypriot food is not only tastefully prepared, it has a balanced nutrient value. The owner himself is trained in the art of Cypriot culinary and plans to hire a chef who has a clear understanding of Cypriot cuisine.

The restaurant aims to provide fresh food (including seafood) to its customer. The food will be served in traditional Cypriot style while an option to avail a la carte service will also be provided.

As discussed earlier the restaurant will serve executive by day and families at evening. However, the bar and happy hour will bring in young male/female customers intend on spending a good time. The restaurant plan to introduce Cypriot traditional dances on weekend’s night. There is no other restaurant providing dance floor in the vicinity.

However, the managers in a restaurant must also look at the existing competition which is fierce. There are several eateries in the area that are operating for a long time and have the loyal customer base. To pry their loyal customers from them will not be an easy task. However, according to Travel Guide of London, food in this part of London is not only overpriced but the choice is limited to fast food mostly. As the restaurant aims to penetrate the market from a completely different angle (ethnic food) the restaurant has an advantage of being a novelty in the area. The restaurant plan to charge the competitive price i.e. price of a regular meal in Olive Paradise Traditional Homemade Style Restaurant (OPTHSR) will equivalent to an average price of a meal in any other establishment. The reason the restaurant chose to do this is neither skimming nor penetrating will work with our target market. Skimming is unsuitable as the competition is high and customers will be reluctant to shift. Penetrating is unsuitable as the lower price is sometimes associated with lower quality and our target customer do not compromise on quality.