lach cach finalversion

Students : Ngo Van Tam

Phạm Thuỳ Dương

Tutorial : 2_BA 06

Tutor : Ms.

Subject : Entrepreneurship

LaCh CaCh LaCh CaCh

Restaurant

1. General information

2. Describe products & services

3. Rationale

4. Mission

5. Start-up expense

6. Macro economic

7. Micro economic

8. Competitive Strategy

9. Action plan

OVER VIEW:

Name: “LachCach-LachCach”

Description : Hotpot Conveyor Restaurant

Location : Pham Ngoc Thach street

- Dong Da district – Ha Noi

Contact:

Phone: 0983090710

Fax:

Web: http://laulach-cach.com

1.GENERAL INFORMATION

2. DESCRIBE PRODUCTS & SERVICES

Next few years: Cored products: hot pot conveyor dishes. Additional: Wines, Beer, Soft Drinks.

In long-term: expanded-conveyor dishes: Sushi, fried dishes, others.

3. RATIONALE

New delivery meals ways in Vietnam: try and explore.

“Conveyor restaurant”: Potential trend in restaurant industry.

6.5 mil ppl in HN(2009): high demand, easy to adapt with new things

4. MISSION OF STAMENT

“LachCach - LachCach” offers fine meals of hotpot conveyor taste, excellent services and great atmosphere. Our goal is to provide our customers with an entire dinning experience that exceeds their expectations on every visit. young and old, male and female in Hanoi and Vietnam market.We provide the great work environment and value the people who work for us. LC-LC wants to be the restaurant of the first choice of the mature and adult crowd, couples and singles, etc.

5. STARTUP-EXPENSE

(In thousand VND)

6.1. INDUSTRY ECONOMIC FEATURES

Marketing innovation:

restaurants invest more to advertise their images

Changing lifestyles higher income + busier customers eating

out more frequently Growing buyers’ preferences for

differentiated products & professionalism in services customers demand higher

6.2. DEMOGRAPHICS

Hanoi Population: 6,448,837 people

Population density: high but not equally distributed

Average density: 1,979/km2

Dong Da ward: highest density, 35,341/ km² Average income per capital:

2,600,000 vnd/month

favorable condition for

service businesses

6.3. S.T.E.P FACTORS

Politics: Starting a business: takes 50days (2 days longer than

in the world)

Obtaining a business license: easy

Types of taxes:

• A license tax

• Value- added tax (VAT)

• Personal Income tax ( since 2009)

6.3. S.T.E.P FACTORS (CONT.)

Economy:

Steady economic development 2009

boosted cosumer foodservice.

Howerver

• In first two months 2010, CPI increased

3.15%

• Mar 2010, SBV pass through Agreed

Interest rate policy => higher i/r = 18%

• Prices of petrol, electricity& water:

increases

=> business incurs higher costs

Social Culture:

Dual working parents

• higher income

• busier

Þ eating out more often

Technology Advanced management softwares

Eg: eBizRes, OC Pro, POS software.

6.3. S.T.E.P FACTORS (CONT.)

6.4. FIVE FORCES ANALYSIS

Rivalry:

Competition is fierce

4 conveyor hotpot restaurants in Hanoi

• namely Kichi Kichi, F1, Genki and Hoa Binh Osaka

• financially intensively invested

• have already advantaged as the first movers to the market

Substitutes:

Substitutes: individual hotpot, buffet hotpots

Prices : relatively competitive too.

Customers’ perceived level of product differentiation: medium

threat is high

6.4. FIVE FORCES ANALYSIS (CONT.)

New Entrants: low entry-barrier: high (require large fund, expertise& management

Bargaining power of customers high substitutes are widely available buyers’ switching cost: low customers: price sensitive

Bargaining power of suppliers medium degree of differentiation of inputs: high many suppliers: VISSAN, Dong Phuong Food Com, King Ngu, VIKOTRA.

7.1. KEY SUCCESS FACTORS

high quality service enjoyable atmosphere with reasonable price at a convenient location

7.2. S.W.O.T ANALYSISHelpful

to achieving the objectiveHarmful

to achieving the objective

Internal

originattributes of the environ

ment

Strengths: Weaknesses:  catch market trend-> excited to 

customers prices: 10% lower  than competitor restaurant exterior: stylish & elegant items: variable ( over 30 items) Professional staff

 New brand

 Lack experiences

 Financial sources: limited

External

originattributes of the environ

ment

Opportunities: Threats:

 located in the crowdest ward in Hanoi (Dong Da ward)

A new road nearby ( Xa Dan)=> sources of customers: huge

 Higher inflation, higher prices of petrol, water, 

electricity  families cut down spending Diseases& food scandals: mad cow disease, 

foot and mouth disease, H1N1, food poisoning,etc.

Operating costs: increase as the business is at early stage of development

7.3. COMPETITIVE ADVANTAGE ASSESSMENT

KichiKichi HoaBinh Osaka LachCachLachCach Location Convenient Convenient Convenient

Parking area Yes Yes Yes

Decoration Nice Scenic Stylish, elegant

Staff quality Nice & friendly but in peak time, they usually omit

customers

Unorganized, in peak time, they work in a mess

Unprofessional: talkative, curious,

irresponsive Nice, polite, responsive, friendly,

creative, well- organized

Food Normal Delicious Very delicious

Price 11 Expensive

Lunch: 190,000 VND

Dinner: 210,000 VND

Reasonable

100,000 VND

Waiting place No No Yes. Customers served w/ free fruit &

drinks when waiting

Official website No Yes Yes

Marketing strategy Yes Yes, but not much Yes

Others Poor conditioners: some customers are hot Good F

Internet & Wifi No No Free Wifi

KICHIKICHI & HOA BINH OSAKA

8. COMPETITIVE STRATEGYBest cost provider

Conveyor is implemented to cut costs. replace number of waiters/waitress

Þ lower HR expenses including salary, compensation and

management

Þ lower prices

Þ price offered 100,000 VND/person, free drinks

Þ In holidays and weekends, discounted.

8. COMPETITIVE STRATEGY(CONT.)

Best cost provider

High quality service

Staffs are well educated, friendly, responsive

Customers will be provided with a clear instruction how to

have meals

Those who have to wait also can seat at comfortable chairs

and are served with free drinks and food

Free WIFI

Use management softwares to control revenue, expense,

inventory, customer information and our HR

=> utilizing the capacity.

Sep 2010:

Form the business group

Raise funds: apply papers to banks

Nov 2010: Submit business start up registration

Jan 2011: Find location

Mar 2011 ( beg):Recruit process

Mar 2011 ( end): marketing campaign

Aprl 2011:

Sign lease contract

Decoration & build equipment

Train staff

Recruit process

30th Aprl 2011: Opening ceremony

9. ACTION PLAN