What is the company?
Island Greek Donair and Pizza is a restaurant that specializes in creating specialty Greek cuisine.
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The company creates an assortment of products such as pizzas, burgers, and other traditional Greek cuisines such as gyros and salads.
The primary method that the company utilizes in promoting the restaurant consists primarily of social media accounts, a website, and flyers. While this has enabled the company to bring in a lot of customers, there are more clients than it could potentially bring in if it expanded its promotion into other areas such as radio.
The average price of the products ranges from $8 to $10, with some of the more expensive products reaching $15 to $25. When examining the price of the products, it is apparent that they are relatively expensive as compared to fast food places. However, when compared to other specialty restaurants in the area where the dishes cost $20 to $30 on average, the price at Island Greek is actually reasonable. This gives it a certain competitive advantage when it comes to price, however, it should be noted that given the small location of the restaurant, this limits the ability of the restaurant to maximize its daily income.
Presently, Island Greek Donair and Pizza averages roughly 30 people within a given day (more on weekends) with an average of roughly $30 per customer. On a given day, that is equivalent to $900 a day, and within a month is equivalent to $27,000. Considering the fact that the restaurant’s location is relatively small, it does not pay as much when it comes to renting and with some of its tables located outside, its overhead costs on electricity are lower than most places. This results in a large percentage of the profits going directly to the owners of the company. It must also be noted that such numbers have been steadily increasing, as seen in its performance in 2013, which averaged around 50 to 60 during the weekends, as stated by the manager of the restaurant.
Customers Per day Comparison Between 2010 and 2011
This is indicative of the fact that as the popularity of Greek food continues to grow within Sydney, the more likely it is that the number of customers on average that patronize Island Greek Donair and Pizza will increase over the next couple of years. Another aspect that should be taken into consideration is the current position of the restaurant in the market as the premier source of authentic Greek cuisine in Sydney and the fact that it has marketed itself more prolifically as compared to other specialty restaurants within the city through its social media accounts and website. In fact, when examining the sheer amount of positive user rated views of the company online, it can be seen that the financial performance of the company will certainly get better and increase over time as the number of its patrons continues to grow.
One of the main weaknesses of the restaurant is sudden cost changes to ingredients brought about by natural calamities such as floods, earthquakes, red tide, etc. This directly impacts the restaurant’s bottom-line since if the dished served costs more to make than its indicated price on the menu, then the restaurant would, of course, lose money as a direct result. Considering the fact that the restaurant is specialized in food from Greece and utilizes authentic products from that region of the world, this makes it more vulnerable to sudden price shocks as compared to other local restaurants that utilize more mundane and easily obtainable ingredients.
When examining the current market for Island Greek, initially, it would seem as if there would be little in the way of significant demand for the products of the restaurant. However, further analysis of the market shows that there are 600,000 to 700,000 second and third-generation Greeks within the country, which is a sizeable population that the restaurant can appeal to.
Furthermore, a large percentage of this population is located within Sydney, which further increases the likelihood of them patronizing Island Greek since the restaurant serves authentic Greek cuisine. Aside from this, it is also important to note that the experience that customers get out of the restaurant outstrips what is available in a fast food place. In a documented interview, entrepreneurs Rob and Pablo, creators of “Snog,” a UK based chain of yogurt outlets, state the following regarding what it takes to become a successful entrepreneur “now we are in a recession, and we see businesses that are successful I think the one thing you see that they all have is the experience which is the most important part in everything so we made sure that there was an experience.”
The “experience” that Rob and Pablo refer to is not just the quality of the product itself but what customers feel when they enter into a particular establishment. In the case of Island Greek, the restaurant has a warm and friendly ambiance which is not only family friendly but actually promotes, in their words, “a happy feeling” for customers. This creates a significant barrier to entry given the ambience of the restaurant and the quality of the food which would be hard to replicate.
As the only authentic Greek specialty restaurant within Sydney, Island Greek Donair and Pizza does not have much in the way of direct competition. However, when taking into consideration the fact that the restaurant also happens to serve pizza and burgers, this does place it in direct competition with various local fast food chains such as Mc Donald’s, Pizza Hut, Dominos and other fast food restaurants. However, there are advantages that the restaurant has over its fast food counterparts.
The first relates to the quality of the service that it is able to leverage. Since it is a relatively small restaurant, it is able to pay more attention to its customers and give them a better dining experience as compared to eating at a fast food restaurant. Aside from this, the food at the Greek specialty restaurant was made to order resulting in a product that is of superior quality as compared to what is available at a fast food restaurant where most of the food is pre-made.
The primary customer of the restaurant consists of second and third generation Greeks who migrated to Australia. It does also have a significant amount of customers that are not Greek and continue to patronize the restaurant due to the quality of the food. However, it should be noted that during the weekend the restaurant does have foreign tourists but these are relatively small as compared to its regular customers.