Haywood Jabuzoff, Marketing Director of the Creative Concept Consortium* (CCC) has issues a Request for Proposal (RFP) for new restaurant concepts. The CCC is a subsidiary of a major restaurant venture capital, ownership, and operations company. The Consortium seeks new restaurant concepts and adaptations of current restaurant concepts. Proposal submissions are evaluated with selected restaurant concepts implemented. If the initial prototype restaurants are successful, the firm establishes a number of establishments in targeted markets.
On the following page is the Request for Proposal issued by Mr. JabuzoffÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s office.
REQUEST FOR PROPOSAL
The Creative Concept Consortium
Number One Gourmet Drive
Adelphi, Maryland 20783
June 22, 2009
* * * * *
NEW RESTAURANT CONCEPT PROPOSAL
HE CORE PURPOSE of the Creative Concept Consortium is to identify new restaurant concepts or adaptations of a current restaurants that can be developed into profitable enterprises. The restaurant concepts should have unique characteristics that would enable it to develop into a strong brand.
The Consortium will fund the start-up and first year operations for restaurants it selects as demonstrating fresh approaches to positioning, serving an identified market, and restaurant design, operation, and marketing. The concept may range from a simple diner to an opulent five-star gourmet restaurant. The new restaurant concept may be recommended for your neighborhood, somewhere else in your community, or in another location.
The focus of the Request for Proposal is on the application of originality, innovation, and creativity to a new restaurant concept supported by sound marketing strategy. Since this is the first stage in the evaluation and development of a new restaurant concept, staffing needs, operational data, and financial projections are not expected in the Proposal. This supporting information will be developed after the review and evaluation of the initial concept.
In developing your Proposal, think of a restaurant as part of the entertainment industry (show business) as well as the food service industry. There are a wide variety of successful restaurants in operation. Your proposal may range from quick service ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œfast foodÃƒÂ¢Ã¢â€šÂ¬Ã‚Â to full service to up-scale restaurants. You may borrow elements from these establishments, embellish their themes and concepts, and then put it together in a new, better, and innovative way. Or you may create an entirely new concept. We are looking for a big and bold idea for an exciting new restaurant ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ a restaurant that will become world famous. Reproduction of a successful restaurant in a new location will not be considered as a new concept. Once accepted, the concept will be refined. Remember, in creating the new restaurant; keep a focus on marketing and business strategy.
You may want to investigate information on the food service and restaurant industry reported in food service periodicals and Web sites. Use this information to help support your Proposal.
In the development of the Proposal, assume normal economic, business, and societal conditions.
The initial prototype restaurant, when selected, will be commissioned in the market location specified in the Proposal. If the prototype restaurant is successful, additional units will be located in other markets with similar characteristics.
Authors of the Proposals that are selected and implemented will receive an initial fee for the concept and will be granted a 12 percent ownership of the new restaurant operation.
To set the scene for your proposal, present an overview of the restaurant industry and its sub-segments (niches) applicable to the proposed restaurant. This would include total market and sub-segment size and trends, changes affecting the market, patron characteristics and trends, and innovations that are affecting the industry.
CREATIVE CONCEPT ISSUES
The following is a list of issues that to cover in presenting the new restaurant concept. Each numbered point should be addressed in order – numbered with the bold face heading, followed by the response. Not all the listed issues may not be relevant to the concept Proposal, in these cases, list the numbered point followed by the phrase ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œnot applicable.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â Sufficient information on the strategy and operational elements of the restaurant should be included so that a sound evaluation can be made.
Issues to be addressed in the development of the Proposal:
1. Heading: PROPOSAL FOR NEW RESTAURANT CONCEPT followed by the name and type of restaurant.
2. Name and address of the person to which the Proposal is being sent:
3. Name of person submitting the Proposal:
4. Date of Proposal:
5. Name of the restaurant: Proposed name for restaurant. An alternate name may be included.
OVERVIEW OF RESTAURANT CONCEPT
6. Summary of the unique elements of the restaurant: Short statement of the unique restaurant concept and the patron need or desire that it serves.
7. Competitive Advantage: Short statement of the sustainable competitive advantage that sets the restaurant apart from other dining establishments in the category. What is the unique opportunity and the special patron needs or desires served. What are the key attraction(s) of the restaurant for its patrons?
8. Industry status and trends: Information on the size of the restaurant/food service industry, size of market segments applicable to the concept restaurant, trends in volume, successful segments, and issues.
9. Restaurant patrons: Profile, characteristics, desires of restaurants patrons by segments and trends.
RESTAURANT BUSINESS PLAN
10. Marketing Objectives: Statement of the Marketing Objectives to be achieved by the restaurant concept.
11. Marketing Strategy: Statement of the Marketing Strategy of the restaurant in context of carrying out the Marketing Objectives. The strategy should include the rationale for the restaurant in terms of serving the dining and entertainment wants and needs of the prospective patronÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s market segment. The strategy should be oriented toward the objective of making the new restaurant exciting and world famous. There is no preferred format for incorporating the marketing strategy into the Proposal.
12. Positioning: Short statement of the positioning of the restaurant in the minds of patrons and potential patrons.
13. Brand development: Characteristics that would enable the restaurant to be developed into a regional or national brand.
14. Location for initial prototype unit:
A. Name of city or town, state, and country. The restaurant may be located anywhere in the world.
B. Location within the community ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ center city, top of a high rise, office building, shopping mall, suburbs, ethnic neighborhood, countryside, resort, waterfront, casino, airport or other location.
15. Theme or style of restaurant: Statement of the appeal and ambiance of the restaurant for potential patrons; such a nautical, ethnic, masculine, feminine, regional, theatrical, historical period, intimate, theme supported with merchandising, leading edge modern, music theme, or other theme.
16. Patron needs served: State the patronÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s need(s) served by the restaurant.
17. Key competitors: Names and brief descriptions.
18. Patron target market(s): Demographics (income, disposable income, expense account, age, marital status, children in family, etc.), psychographics, attitudes, segmentation, and life style(s) of the targeted patrons. Consider a description of the patrons ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ profiles, expected patron dress (women and men), reason for dining, and expectations.
19. Consumer positioning statement: State the consumer positioning or brand image of the restaurant that will be communicated to patrons and prospective patrons.
20. Patron experience: Describe the highlights of a patronÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s dining experience, the atmosphere of the restaurant and any special elements of appeal.
21. Service experience: Special or unique services received by patrons.
22. Setting, architecture, interior design, and decor of restaurant:
A. Describe the interior of the restaurant, interior design theme, design elements, lighting, table settings, menu graphics, live music, and appointments.
B. Describe the exterior appearance of the restaurant.
C. Describe the onsite graphics and signage.
23. Dress of service staff: How the dress of the service staff will complement the positioning of the restaurant.
24. Entertainment: Any offering of live music, recorded music, performers, or other patron entertainment features.
25. Size of the restaurant: Approximate number of restaurant patron chairs and counter stools (if any), bar or cocktail area.
26. Hours and days of operation: Breakfast, brunch, lunch, afternoon tea, dinner, late evening, 24 hours. Monday through Friday, Saturday, Sunday.
27. Food characteristics: The focus of the leading menu dishes and merchandisable menu items.
28. Pricing strategy and menu price ranges per serving: Statement of pricing strategy. Recommended prices: Appetizers ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ from $00.00 to $00.00, Entrees ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ from $00.00 to $00.00, Deserts ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ from $00.00 to $00.00. Prices should be quoted in the currency of the market selected for the initial restaurant unit, with conversion to U.S. Dollars included if the location is outside the United States.
29. Sell line: Short ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œbillboardÃƒÂ¢Ã¢â€šÂ¬Ã‚Â sell line for the restaurant.
30. Marketing communications: An advertising headline and core body copy is an excellent way to focus the positioning of a restaurant. Present a sample or prototype advertisement headline, body copy, and a description of the key graphic or illustration if one is recommended. An outdoor advertising board format may be used to communicate the key message of the restaurant. Actual advertisement layout and art is not expected.
31. Media recommendation: General media guidelines for communicating the restaurant to the target potential patron segments, i.e. what publications or broadcast media would be used.
32. Public Relations and Promotion: Briefly delineate public relations and promotion programs:
A. To gain patron repeat business
B. To attract new patrons.
PROPOSAL SUBMISSION PROCEDURE
A Cover Letter and the response to the Request for Proposal should be submitted to Haywood Jabuzoff, Marketing Director, The Creative Concept Consortium, Number One Gourmet Drive, Adelphi, Maryland 20783, USA. The Proposal should be postmarked by July 18, 2009.
Authorized June 22, 2009.
The Creative Concept Consortium
* The Creative Concept Consortium is a fictional business.
Assume a normal economy for the restaurant industry.
Application of Marketing Concepts
This case offers the opportunity to apply many of the principals and concepts of marketing covered in the text and in our discussions.
Please post your Proposal in response to the RFP in this Conference. Your response should not be in the form of a memorandum since it is not an interoffice communication. The Proposal may be in the form of a business report plus a optional scenario, story, restaurant review. You are encouraged to present your proposal in a creative way. You decide on the most effective way to respond to the RFP but make sure you cover the requested information.
The Proposal should be transmitted to Mr. Buzzoff with a Cover Letter of transmittal.
You may want to check out articles on the restaurant and food service industry in trade magazines and general interest magazines. Most of the restaurant and food service publication have Web sites. Major newspapers are an excellent source of information on current restaurant trends ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ check their Web sites. The background material on the industry, trends, market segments, successful restaurantÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s characteristics, and restaurant patron profiles should be used to support your Proposal.
Comments, Critiques, Recommendations
Comments are solicited for all of the posted RFPs. If you were a member of the management team at the Creative Concept Consortium, please indicate in your comments the restaurant concepts you would recommend for prototype development with a rationale. More than one restaurant concept may be recommended for development. You are also encouraged to comments on the concepts with you do not recommend for commercialization and why.
The Expense Account budget of MRKT 310 does not include any funds to compensate Marketing Pros for their costs for breakfast, lunch, brunch, supper, dinner, late night snacks, wine, designer water, or cocktails consumed while undertaking research in this case. We blew it all on the Introductory Sociable. However, you are encouraged to patronize a variety of restaurants as part of you research. Have a good time, just donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t bill us.
# # # # #
These questions may lead to a break-through in your food service thinking:
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Would you like to own and manage a great restaurant?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Do you think that you could create a new and exciting dining spot?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Do you believe there is an opportunity for a new type of restaurant or an improvement of a current establishment?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Do you find faults with restaurants?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Have your friends ever mentioned a type of restaurant they would like to patronize?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Have you sensed a market need or an unmet want in terms of away from home eating?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ In what new style of restaurant would you like to dine?
ÃƒÂ¢Ã¢â‚¬â€œÃ‚Â¡ Do you think there is a segment of the public has a need for a new type of restaurant not currently being filled?