Essay, Pages 13 (3058 words)
A. The Initial Idea
In the year of 2018, category on provision of accommodation and food service activities contribute to Gross Regional Domestic Product (GRDP) the city of West Jakarta as much as 23,63 trillion rupiahs.
About 83.93 percent were contributed from subcategory of provision of food service activities, and as much as 16.07 percent from this category were contributed from subcategory of provision of accommodation. Growth rate of GRDP according to Industry provision of accommodation and food service activities also experience positive growth as much as 5.
3%. Tax from this category becomes the regional revenue of the city of West Jakarta.
FIGURE 1 Graphs the Role of Subcategories on the Added value of Categories provision of accommodation and food service activities in West Jakarta (percent)
Source : Badan Pusat Statistik (2019)
Nowadays, cafe, restaurant, eatery, etc are becoming more and more instagramable because many teenagers are looking for those kinds of restaurants and in this millennial age, people prefer the ability to show off where they are rather than good food.
Many people are coming to cafes or restaurants to have a meeting, hang out, gathering, spend quality time with their loved ones, etc.
This reason will cause the owner of the restaurant has to be more creative in creating a different concept from existing restaurants. If the cafe is managed and carried out interesting and different arrangements, as well as using certain themes will make visitors feel comfortable. Sometimes when the customer visits the restaurant, they don’t just fill their stomachs but also want to feel relax and spend their time.
According to Walker (2014, pg.4-5), there are 8 reasons a person get into the restaurant business, one of them is challenge. This challenge can be a business opportunity to open a food and beverage business, especially in the form of restaurants.
One of the main factors that influence challenge is many competitive people. To survive, a restaurant needs more than just a great tasting menu, it also need to attract people by serving in a new way, new decor, new ways of marketing, etc. Challenge also affects the customer behaviors that are more interested on which restaurant is more interesting and unique than the taste of the food.
This challenge supports millennial generation which are the trigger for economic and social change. According to Biznet Data Center (2013, pg.8-9), millennial or we known as Generation Y and Generation Z apply to those who were born between 1980-1995 and 1995-2010 or those who are in the age between 9 until 39 years old.
The business plan for this company is Fluffy Groovy Pet Resto. The concept of this business is a restaurant that allows dogs to be entrusted to the restaurant while the owner is eating. The restaurant provides a special room (indoor and outdoor) for the dog to play and socialize as much as they want while being watched by a dog keeper and also an instagramable spot for taking pictures with the dogs. The restaurant also provides dog food such as pizza, pasta, birthday cakes for special occasions, etc. It will give a new experience to the customer.
The main product offered by this restaurant is such as the appetizer are Gado-Gado, Thai beef salad, etc, for the soup are chicken and sweet corn, etc, for the main course are nasi goreng, beef bulgogi, Hainanese chicken rice, etc, for the dessert are doggie mousse, Alaskan ice cream, etc and dog friendly foods and treats. Fluffy Groovy Pet Resto will also provide abundant variety of beverages such as non-alcoholic beverages such as white samoyed smoothie, the energetic pug, etc and alcoholic beverages such as alligator tail, pina colada, etc.
Fluffy Groovy will open at Citra Garden 6 Street, West Jakarta. This location is chosen because Citra Garden 6 has a lot of traffic where people want to eat there, strategic, and easy to access to the street. Jakarta is chosen to open the restaurant because there is a high demand for dog cafe and there is no cafe that provides a special room and playground (indoor and outdoor) for their furry friends. There are also few dog cafes available in Jakarta and people in the capital city usually are more willing to spend money for their pets.
Fluffy Groovy is chosen as a brand because it can represent the concept that is given to the customer. Fluffy Groovy has a meaning that every dog has to be loved because of their loyalty to the owner. Fluffy also means being loved, which philosophy is hoping Fluffy Groovy can create a pleasure and loyal customer and create more happy dogs because a happy dog makes a happy customer.
B. The Objectives
Feasibility Study that will be conducted on this business has a purpose such as :
Major objectives from a feasibility study towards this business plan are:
- Analyze how great the business model will work in public so that the researcher will know the probability of success for this business.
- There are a lot of things that can affect this business plan such as market price, marketing, technical, management, and financial.
- The better the business plan is, the higher the chance it will have on receiving a loan from the bank.
Gain profit for the company.
Having a healthy competition with other companies.
Increase in domestic income.
Provide a new working environment in Indonesia.
Allowing the customer to feel safe about their furry friend while they are away.
C. Research Method
In preparing a business feasibility study, a research methodology in data collection is needed to support the business plan of Fluffy Groovy to get accurate data. Because of that, we have to be able to collect the data used in business feasibility study such as:
- Primary Data
Primary data is data that we can achieve by doing an interview with the interviewees, observing and spreading questioner so we can compile enough data to do the feasibility study accurately.
According to Sekaran and Bougie (2016, pg.142), the definition of the questionnaire is :
A preformulated written set of questions to which respondents record their answers, usually within rather closely defined alternatives.
Research methods by questionnaire are done by compiling data from a group of people that have been selected to be a source of information that is valid for the researcher to base on for their research. There are a few types of the questionnaire such as :
Personally administered questionnaires are a questionnaire that is used to gather data from a large number of responders within a short period. Any doubts that the respondent might have on the question can be clear on the spot because the respondent and the researcher can meet face to face.
Mail questionnaires are a form of a questionnaire that is sent individually to the respondent through the mail.
Electronic and online questionnaires are a questionnaire that can be collected through website entries and email. So basically, someone could post a survey on the website and share the link so that other people can complete the survey and the researcher can use the data to complete his/her research.
In this research, the researcher is using the combination of personally administered and electronic and online questionnaires for the feasibility study of Fluffy Groovy. Personally administered questionnaires have a few advantages such as it is time-efficient where the researcher can gather a lot of data from a lot of participants in a short period.
The answer receives by the researcher is quick and honest because the responder responds to the question immediately. On the other hand, electronic and online questionnaires have a few advantages of its own such as hundreds and thousands participate in a questionnaire online daily and the variety of responders comes from all around the globe which means the data for research will be more accurate.
b. Direct Observation
According to Sekaran and Bougie (2016, pg. 126), Observation is an effective way to complete the research with form as an instrument observation. A form contains about phenomena that will be described. Observation is conducted in West Jakarta on 15th October 2019 to direct observation the main competitor from Fluffy Groovy that is located at Citra Garden 6, West Jakarta. Moreover, the researcher also directly observe the chosen location.
According to Sekaran and Bougie (2016, pg. 127), secondary data is the data compiled by other people that are available in the industry. We compiled the secondary data from an official website of Badan Pusat Statistik (BPS), government institute publications, journal and other books that already exist.
D. Theoretical Conceptual Review
The definition of restaurant
According to Barrows, Powers, and Reynolds (2012, pg.68), the word restaurant covers a broad range of food service operations. The term comes from the French word restaurant, meaning restorer of energy.
The term was used as early as the mid-1700s to describe public places that offered soup and bread. Today, any public place that specializes in the sale of prepared food for consumption on-or off-premise can be described as a restaurant.
The classification of restaurant
According to Walker (2014, pg.25-54), there are a few types of restaurants such as :
Franchise restaurant: a possible choice for those who don’t have extensive restaurant experience and want to open a restaurant with less risk than starting their restaurant from the start. Example: Burger King and Carl. Jr.
Chain or Independent Restaurant
Chain Restaurant is a restaurant that has some advantages and some disadvantages compared to an independent restaurant.
The benefits include market recognition, greater advertising power, sophisticated system development, discount purchases. This is because this restaurant already has a market and has been known by many people.
An independent restaurant is an easier restaurant to open. Only need more funds, knowledge about restaurant operations, and a strong desire for success. The advantage for independent restaurant owners is that they can “do their own thing” in terms of developing concepts, menus, decorations, and so on. Example: Eatlah, Solaria.
Sandwich Shop is a relatively simple restaurant to open and operate. The menu consists of various kinds of hot and cold sandwiches with a choice of bread, toppings, and types of meat and vegetables. This type of restaurant needs only to be cooked briefly or not need to be cooked. Example: Subway, Quiznos.
Quick Service Restaurant is a restaurant where food is paid before service. This type of restaurant offers a limited menu. Customers can serve themselves to take drinks or food with a tray. Example: UpNormal.
Quick Casual Restaurant can be defined as a restaurant that uses high-quality and fresh ingredients, made-to-order menus, and limited services. Example: Sate Khas Senayan, Bakmi GM.
Family Restaurant is a restaurant that is operated from generation to generation in a family. This restaurant is informal and has a simple menu and services designed to attract families. Example: TaWan, ChuanTin.
Popular Casual Restaurant because it is very popular with the social trends of a more relaxed lifestyle. Factors that make a casual restaurant include: have signature food items, creative bar menus, homey decor. Example: Pancious.
Fine-Dining Restaurant refers to food and services that are expensive but are enjoyed at leisure. Customers usually come when there are special occasions. There are not many turnover tables every day. Example: The Cafe Mulia Hotel, Skye Lounge, and Bar.
Ethnic restaurant is a restaurant that sells food from certain regions. Example: Magal, Sushi Tei.
Theme Restaurant is a restaurant built on ideas that emphasize something that is fantasy or romanticize an activity such as sports, travel and the era in time. Example: Harry Potter Cafe.
Coffee Shop is a place that sells coffee and sells food. There are not many tables available, as well as the equipment. It usually has a unique decoration. Example: Starbucks, Kopitiam.
Others like steakhouses, seafood, dinner houses, celebrity chef restaurants which are restaurants that sell a particular menu or sell famous chef names. Example: VIEW Restaurant at Fairmont Jakarta.
The type of Menu
According to Walker (2014, p.126-129), there are several types of menus:
la Carte Menu is a menu that offers an item at individual prices. This menu type is most often used by restaurants. Example of the Chatime menu.
Table d’hôte Menu is a menu that offers a choice of several dishes at fixed prices. There may be a choice of items for appetizers, soups and salads, main meals, and desserts. For guests, the advantage of this type of menu is value. With a fixed price, guests are guaranteed to eat at guaranteed prices. The advantage for restaurant owners is the limited number of menu items. Examples of menus are VIEW Restaurant Fairmont Jakarta.
Du jour menu is a menu that is only available on certain days. Example of the Burger King coupon menu.
Breakfast / Lunch / Dinner Menu is a menu that is only available at certain hours, such as breakfast, lunch and dinner hours. Example of a porridge menu at McD which is only available at breakfast.
California Menu is a type of menu that allows guests to order anything from the menu, at any time of the day. Example: menu in Solaria.
Tourist Menu is a menu used to attract tourists to a particular restaurant. Example of a menu of lime food at the Kapurung Kasuari restaurant in Makassar.
Digustation Menu is a menu that is an example of the chef’s best cuisine. This menu is presented in several courses, displaying the chef’s talent to combine taste and texture. In addition, this menu takes longer to be served than the usual meal menu. Example menu at Kubu Restaurant Ritz Carlton Bali.
Sustainable Menu is a menu that uses ingredients that are sustainable and often found in contemporary restaurants. Usually, this menu is marked with the words “homemade”. An example of Ubud Homemade Resto.
Kids Menu is a menu specifically designed for children. Example: McD Happy Meal.
The type of service
According to Cousins, Lilicrap & Weekes (2014, p. 7), the type of service is divided into:
Table Service is where guests are served to a table, where the table has been arranged. This type of service, found in many types of restaurants, cafes, and banquets. Example: Spectrum Restaurant Jakarta.
Assisted Service is a type of service that is often found at breakfast at hotels and with buffet catering. Guests are served partially on their desk and some of the guests do self-service. Example: Kintan Buffet.
Self Service is a type of service where customers are asked to help themselves from a buffet or counter. This type of service can be found in cafeterias and canteens. Example: Masterwork Makan Sutera Supermal.
Single Point Service is a type of service where customers order, pay and receive food and drinks, such as in fast food operations or vending machines. Example: McDonald’s.
Specialized / In Situ Service is a type of service where food and drinks are brought to the customer’s place, such as when on a plane. Example: Garuda Indonesia dines in.
In the hospitality industry, technology is one part that requires considerable capital. According to Connoly (2014, p.25):
IT might be viewed as a rather large expense, but it should be viewed as a strategic opportunity. In reality, IT is both a support tool and a strategic enabler. IT should never be used for the sake of IT itself or just because it is the latest and greatest. Instead, IT should be used purposefully with the end business goals in mind. It should be used to solve business problems.
According to Walker (2014, p.362-380) in the food and beverage business, technology has often been used, including:
Back of the house technology. This technology allows restaurant managers to manage purchases and inventory, run a kitchen display system to manage kitchen efficiency, calculate food prices, menu management, employee management and make financial reports.
Front of the house technology. This technology includes point of sales (POS) systems, facilitating table management and Payment Card Industry Data Security Standard (PCI DSS), which is a standard to reduce the risk of fraud during payment transactions.
Mobile Phone Technology. This technology is very widely used in the hospitality industry both in organizations and with customers which increases efficiency. With this technology, restaurant entrepreneurs can take advantage of the QR Code that can be scanned through POS and mobile payment.
Web-Based Enterprise Portals. This technology is useful to assist management in conducting sales reporting, cash management, in-store profit, and loss statements.
Gift Card and Loyalty Programs. This technology can help Customer Relationship Management (CRM). With so many different innovative approaches to building customer databases, prospecting, loyalty campaigns, and general relationship management, CRM solutions are integrated with providing a 360-degree view of the activities of guests.
All activities are tracked and controlled from a central database, allowing restaurant operators to recognize their guests with the most frequent expenditure patterns and determine the best techniques for attracting and measuring new trial expansions, or more rarely, guests to a core customer base. This plays a role in analyzing gifts for customer loyalty.
Fluffy Groovy is a business concept that exists independently and not related to other companies. This business is specifically engaged in a restaurant that is modified with a playroom for dogs so the dogs do not hang around and fur flying into the guest’s food. The target for this business is the middle level people which are Y generation (millennial) until Z generation between 9-39 years old.
The selection type of menu offered are in ala carte menu which frees customers to choose the product to be ordered. For the beverage, there are various products that offered by this restaurant from non-alcoholic beverage such as mocktail, detox beverages, juice, smoothie, coffee, tea and for alcoholic beverages such as cocktail and beer, and for the food, the restaurant offers a various choice from salad, soup, main course, dessert and for the dog, the restaurant also provide dog food and treats.
Fluffy Groovy is a business that not only prioritize the products being sold but also want to provide comfort for customer and their dogs. Therefore, this restaurant will be designed with Rustic modern concept with a nature atmosphere that gives the impression of comfort and also Instagramable. This business is designed not only as a place to eat and drink but also as a place to socialize, gathering, and relax.