Viability of Establishing an Organic Food Restaurant in London

The report aims at examining the viability of establishing an organic food restaurant in London.  The market research applied qualitative research approach and a questionnaire design. The respondents adopted included both male and female, Europeans, Asians and Africans giving rise to 150 participants. Additionally, the study used survey research.  The secondary data findings indicated that globally, there is a trend towards healthy lifestyles giving rise to organic foods. Echoing the same views, the primary data pointed out to people conscious of their eating habits and healthy lifestyles.  Also, it indicated the need for an organic food restaurant in London because there are few in the city. Analysis of the two data sets revealed that the consumer tastes and preferences are changing in favour of organic foods. These restaurants have a huge competitive advantage and a stable external environment. Accordingly, it is a viable business.

Introduction

The food industry is one of the sectors that is growing at a fast pace in the world today (Blay-Palmer, 2016).   The sector is marked with new entrants who specialize in diverse types of food and drinks (Blay-Palmer, 2016). In London, there exist some restaurants making the food industry in London a competitive one.  However, very few restaurants deal with organic foods and zero sugary drinks.  It is worth noting that the current global health trends reveal a new generation of health sensitive people.  These are people conscious of their health status, and there is a shift from junk food in the United Kingdom.  It is in this context that a market gap for organic food restaurant exists in the UK. The business’ location will be in the centre of London city.  London is a cosmopolitan city and therefore, it can attract a group of customers from diverse races, gender, and social class.  The primary competitors to the proposed business include NY food, Pipel, and Pret A Manger, which are the top leading fast food restaurants in London (Reeves, Wake & Zick, 2011). However, they do not offer organic foods thus indirect competition.  This report provides the findings (both primary and secondary) of the market research of the above-proposed business.   The market research aims to examine the viability and sustainability of the organic food restaurant in London. 

Methodology and Critique

            Methodology refers to a set of procedures and steps that guide given research.  This section discusses the methodology of the market research of an organic food restaurant in London.  It is worth noting that the study employed a qualitative research approach.

Stages of Market Research Process

 The market research process for this business involves fives significant phases.  The first stage entailed the definition of the problem (Lewis, 2015).  The definition or identification of the problem formed the foundation of the market research. Here the researcher established the problem that needs a solution.  Besides, the establishment of the research objectives and the questions that would guide the research took place in this stage.  The market research aimed to examine the viability of setting up an organic food restaurant in London.

 The second stage involved the development of the market plan (Lewis, 2015).  The phase used several techniques that included interviewing the prospective clients, use of survey design and online research.

After the establishment of the research plan, the next phase entailed the collection of data. Here the researchers ensured that the collected data is valid and unbiased. The use of mixed methods helped to gather data from all angles (Lewis, 2015).  Noteworthy, the study collected both analytical and emotional data.  However, personal stories with prospective customers provided a lot of insights that the researcher needed (Lewis, 2015).

 The fourth stage involved data analysis and reporting of the findings.  In this stage, there was the interpretation of the data (Lewis, 2015).  The researcher focused on the trends as opposed to specific pieces of information.  Data analysis provided the real picture of the market and business that the researcher intends to venture.

            The final stage is taking action.  The stage implies that research is complete (Lewis, 2015). Here the market campaigns for the products are set to take place. Besides, regular analysis is essential to identify areas of improvement continues (Lewis, 2015). The continuous analysis takes place because market trends change at any time.

Questionnaire Design

As noted in the sections above, the market design used triangulation in research. Triangulation involved the use of more than one research instruments, researchers, and methods in data collection (Lewis, 2015).  Among the tools used in data collection were open-ended questionnaires.  The questionnaires carried ten open questions that contributed to the provision of insights in the market research.  The research preferred questionnaires because they gathered a lot of data within the shortest time possible (Flick, 2015). Accordingly, questionnaires are economical (Flick, 2015). Moreover, they allow for privacy and confidentiality of data collected because the human respondents do not disclose their identity on the questionnaires (Flick, 2015).

However, some witnesses accompany the questionnaire design. Some respondents never returned the questionnaires. Besides, others misinterpreted the questions and thus, they provided irrelevant answers (Flick, 2015).  Other respondents felt that questionnaire filling is a tedious exercise and they turned down the researcher’s invitation to fill them (Flick, 2015).

Quotas Adopted

A quota refers to the number of surveys or interviews complete in given research (Flick, 2015).  It is worth noting that surveys involve multiple quotas or quota cells.  This market research has quotas for the market, by men, versus women and youth.  The researcher grouped the population into subsets which included Europeans, Asian, and Africans.  Fifty representatives were drawn from each quota making a total sample of size of 150 respondents.

            The quota sampling allowed for the representation of specific features in the study sample. It is worth noting that quota sampling is cost effective and time-saving since its primary data collection takes the shortest time (Flick, 2015).  Besides, quota sampling does not depend on sampling frames.

However, with quota sampling, calculation of sampling errors and projection of the findings is risky (Flick, 2015). Additionally, some features may receive inappropriate representation.  Moreover, researchers may develop biases thus impacting negatively on the quality of the work done due to researcher incompetence and inexperience.

Survey Technique and Its Critique

The researcher carried out a market survey through questionnaires and interviews.   Other methods in the survey include the use of emails, phones, and verbal talk. The survey served to provide the facts as they exist on the ground as far as food restaurants are concerned.  The survey occurred in London and the issues covered included the market, the competitor, and the PESTLE analysis of the business.  Through the survey, the researcher realized the market demand for organic foods, the possible competitors, and the price ranges among others. The design was significant as it allowed for broader coverage, was easy to do and cost-effective.  Besides, it showed trends in the market which was the primary focus of the study.

However, from the design, it was noted that survey fatigue could lead to biases (Lewis, 2015). Besides, the respondents may skip answers, and at times the wrong questions lead to inaccurate data (Lewis, 2015).

Findings and Analysis

This section presents the results of the market research as well as their analysis.  The primary data collected is fused together with secondary data to provide an accurate reflection of the situation on the ground.

PESTLE Analysis

            The PESTLE model involves the examination of the politics and geographical leadership, macro and micro economic factors, social and cultural aspects, technological advancements and innovations, legal and regulatory issues, and environmental concerns that influence business.

Political Factors

 Public health policies in London advocate for healthier options on restaurant menus (Nasir & Kara kaya, 2014).  There is a push for lower sodium and sugar intakes coupled with sensitization for consumers to be conscious of what they take (Nasir & Kara kaya, 2014). The organic food restaurant will fit in this political environment because its primary focus is to offer healthy organic foods to meet the current eating habits for the public.

Economic Factors

The unemployment rate in the city may affect the business (Makos, 2015). Healthier alternative foods are expensive compared to other meals. Additionally, organic and healthier foods need time to prepare from scratch.  Given this, the business will lower its prices to attract many clients. Moreover, interest rates, taxation, and consumer spending will influence the company.

Social Factors

 Food trends change depending on consumer wants. Right now healthy eating is the focus of several nations as pushed by both authorities and customers.  Organic foods and lifestyles are major take and vegetarian are more of a lifestyle (Makos, 2015).  How food appeals to the people depends on its branding (Makos, 2015).  The proposed business will ensure that the brand depicts healthy lifestyles.  The restaurant’s interior will be “slow down, eat healthy, for its matter.”

Technological Factors

Technology provides a competitive edge (Makos, 2015). The business will need technology to create packaging, food labels, and food production.  Technology can showcase the menu and show promotional footages. Also, through digital platforms, the business will reach many customers (Makos, 2015).

Legal Factors

 The business will ensure adherence to the laws and regulations in the food market. All the food and drinks policies and Acts will be adhered to. Customs and trade regulations, as well as food industry licensing regulations, may affect the business.

            Environmental Factors

Environmental conservation is a significant concern across the globe (Makos, 2015). The proposed business intends to join international ecological advocacy groups. Others factors that may affect the business include global warming and environmental issues at global levels, ecological disasters, rules, and regulations.

            The PESTLE analysis above reveals that the business has a quite stable environment.

Characteristics of Targeted Customers

 The customers targeted here include both male and female across all ages. However, the primary clients will be youth aged 25-40 years.  From the primary data, it was noted that this category of individuals is health conscious as shown in appendix 1.  Additionally, women are the primary clients since the findings indicated that women eat health as compared to their male counterparts.  Appendix 2 summarizes these findings.  There is no specific lifestyle targeted. However, office going individuals are the essential component of the business clients.  Occupationally, the majority of the clients will be students, model, and family people. About habits, the customers like media exposure, like mobiles and are people who like surprises.

Competitors

Three significant competitors for the business exist.  These included NY foods, Pipel and Pret A Manger.  However, these mainly offer junk fast foods. In this way, the proposed business has a more competitive advantage than the three.

From the findings, it is evident that the proposed business is variable.  The availability is because it meets the current trends in customer needs, has a completive advantage and a stable external environment.

Recommendations

The 7Ps of market mix analysis offer insights on suggesting recommendations for this market research.

Product

            The research proposes the establishment of a food restaurant that specializes in the provision of organic foods.  This is because, consumer tastes and preferences are in favour of health lifestyles (Lim, Yong & Suryadi, 2014).

 Pricing

 It entails setting the price of the products.  The cost of the meals should be in line with the value of the same meals.  This is because customers focus on value as opposed to mere price (Lim, Yong & Suryadi, 2014).

Place

 The place is where the product is accessible at the right time, in the right quantity, and quality (Warrink, 2015). The business will be situated in the centre of London city. The place is proposed because it is easily accessible. Additionally, online orders and deliveries will be applicable for those outside the city.

Promotion

 It involves the communication about the product to the potential customers (Warrink, 2015).  The study recommends a communication strategy that embraces dialogue between the business and the customers.  It should capture customer attention and reach many people.

 People

 These refer to the business personnel (Warrink, 2015).  The service provider’s constant contact creates an impression on customers (Warrink, 2015). Accordingly, they ought to be well trained to ensure that the right people do the right job.

Process

This is the process of providing services and goods to customers and the behaviour of the people involved (Warrink, 2015).  The business should ensure that customer feedback and implementation is appropriate. Social media platforms and suggestion boxes can serve this purpose.

Physical Evidence

It involves the physical outlook of the business as it provides the impression of the company (Warrink, 2015).  The business should ensure clean facilities that are tidy and decorated to culminate their health motive.

Conclusion

In conclusion, therefore, the proposed organic food restaurant is a viable business. It has a stable external environment; its demand is likely to grow due to changing consumer taste and preferences in favour of healthy lifestyles. Accordingly, the establishment of the business should proceed.

Bibliography

Blay-Palmer, A., 2016. Imagining sustainable food systems. In Imagining sustainable food     systems (pp. 15-28). Routledge.

Flick, U., 2015. Introducing research methodology: A beginner’s guide to doing a research          project. Sage.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five             approaches. Health promotion practice, 16(4), pp.473-475.

Lim, W.M., Yong, J.L.S. and Suryadi, K., 2014. Consumers’ perceived value and willingness to purchase organic food. Journal of Global Marketing, 27(5), pp.298-307.

Makos, J., 2015. An Overview of the PESTEL Framework. PESTLE Analysis, 18.

Nasir, V.A. and Karakaya, F., 2014. Underlying motivations of organic food purchase             intentions. Agribusiness, 30(3), pp.290-308.

Reeves, S., Wake, Y. and Zick, A., 2011. Nutrition labeling and portion size information on        children’s menus in fast-food and table-service chain restaurants in London, UK. Journal    of nutrition education and behaviour, 43(6), pp.543-547.

Warrink, D., 2015. The Marketing Mix in a Marketing 3.0 Context (Bachelor’s thesis, University       of Twente).

Appendices

Appendix 1

Appendix 2

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