Business 2210 Case Analysis Report

Wilsons Family Restaurant

Prepared for
Donna M. Stapleton
Instructor, Business 2210
Memorial University
St. Johns, NL A1C 5S7

Prepared by
Group 6
Meaghan Dugal, Neil Grey, Saad Rahman, Stephanie Roberts, Justin Quann

April 4, 2014

Table of Contents

Executive Summary

3
4

5
6

Problem/Issue Identification
Current Marketing Situation
2.1 SWOT Analysis
2.2 Consumer Analysis
2.3 Competitor Analysis
Identification and Analysis of Alternatives
Recommendation
4.1 Product/Service Strategy
4.2 Pricing Strategy
4.3 Distribution Strategy
4.4 Communications Strategy
Implementation Strategy
Budget and Evaluation
6.1 Budget for Communications Strategy
6.2 Evaluation

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3
4
5
5
6
7
8
8
9
12
12
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Appendix I: SWOT Analysis

15

Appendix II: Segmentation Scheme

16

Appendix III: Customer Profile

17

Appendix IV: Competitor Analysis Summary

20

Appendix V: Decision Criteria Alternatives Matrix

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Appendix VI: Recommendation Table

23

Appendix VIII: Budget Summary Table

29

Appendix IX: Evaluation Summary

31

Bibliography

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Executive Summary
Since taking over his fathers business, Wilsons Family Restaurant, John Wilson has been
experiencing declining sales and reduced customer satisfaction. John would like to reverse this
trend and increase sales by 5% and ensure 100% customer satisfaction in 2013.
Much of the problem can be attributed to two sources. First, John is an experienced chef but
does not have significant experience in customer service. Unfortunately, the food does not sell
itself and customers are missing the relationship they had with Johns father, Mark. The second
issue is related to the impending entrance of the large national chain, Swiss Chalet. This report
will recommend actions for John to improve sales and customer relations in addition to
managing the new competition.
John and his restaurant are well known in the community, but are having difficulty adapting
to a changing landscape. The surrounding area of Struan offers great potential for market
expansion, but John needs to ensure his restaurant is sufficiently differentiated from Swiss
Chalet. As noted, there is a sufficient market in the Struan area that enjoy the food that Wilson
Family Restaurant offers, thus, the marketing plan implemented will have to successfully target
these potential customers.
There are many solutions that could be adopted to improve the customer service issues and
resolve the declining sales. Alternative solutions include: increase promotion efficiency, increase
the number of items and options on the menu, offer home delivery, and manage service quality.
In conducting an assessment of the alternatives, it is recommended that John enhance his
marketing and advertising by improving advertising, refining the target market and directly
marketing to these potential customers.
To effectively implement the marketing strategy for Wilsons Family Restaurant, a number
of actions are necessary. First, a menu revision is recommended to highlight and enhance the
best items on the menu, and remove those not typically purchased. Second, it is recommended
that John increase his promotional strategies by offering more discounts to loyal customers, and
incentives for new customers. Third, John may consider redecorating to incorporate a homier
ambiance. Finally, it is vital that John implement a cohesive, efficient and direct communications
strategy, which includes a closer relationship with community members, in addition to a strong
promotion plan.

John has the potential to return Wilsons Family Restaurant the successful business it
once was, but needs to refine the marketing strategy and successfully implement it to ward off
impending competition, increase sales and ensure 100% customer satisfaction.

Problem/Issue Identification
The purpose of this report is to provide an analysis of the situation facing Wilsons

Family Restaurant (WFR) and provide a course of action for the restaurant based on its
goals. One problem facing WFR is Johns lack of experience outside the kitchen. Before
opening the restaurant, Mark had previously worked in hospitality and therefore had
experience interacting and dealing with customers; he was able to better understand,
anticipate, and fulfill customer needs and wants, which resulted in high customer loyalty.
When Mark dealt with customers, he came across as warm and humorous and this was
appreciated very much by the customers. Unlike Mark, John never had to deal with
customers directly and didnt have an opportunity to develop the customer service skills
required to interpret and satisfy customer needs and wants like his father. When John took
over the restaurant, customers noticed that he lacked the personality traits that Mark had
that made coming to the restaurant enjoyable. As a result, there was a loss of customers
and sales, and diminished reputation of having the best local cuisine.
Another problem facing WFR is the future opening of a Swiss Chalet restaurant
nearby. Due to Swiss Chalets more familiar name (it is a multi-million dollar chain with
over 200 locations across Canada) and its use of nationwide television ads to promote
itself, this could cause an even further decrease in customers and sales. Swiss Chalet will be
a very strong competitor.

2
2.1

Current Marketing Situation

SWOT Analysis
One of WFRs strengths was the customer loyalty that came with Mark Wilsons

skills of providing value and satisfaction. Another strength was its reputation for providing
the best local, homemade food, with a wide selection of food, drink, and desserts. Currently,
Johns culinary skills are one of WFRs greatest strengths; customers appreciate good food,
which causes Johns kitchen skills to be an asset. All of these strengths attracted and
retained customers.
WFR also has its weaknesses. Shortly after John took over, the restaurant
experienced a decline in sales and customer loyalty and satisfaction; this may have been
due to his lack of customer service experience and inability to interpret customer needs
and wants.. Johns father was known for being warm and humorous, which customers
enjoyed; however, John lacked these traits and it may have caused the customers dining
experience to be less enjoyable.
One opportunity for WFR is the pool of potential customers from outside of Struan.
Struan itself has a population of just over 3,200, while the region surrounding this town
consists of 10,000 people, and another 3 nearby cities have a combined population of
412,000 people; in addition, approximately 1.5 million people drive through Struan
annually. The opportunity here lies in the fact that both residents and visitors of Struan
enjoy the restaurant. A second opportunity exists in expanding the current menu; John
could add healthier options, more flavours, or even more items than currently offered. A
third opportunity is the aging population. In 2012, the number of people, over the age of

16, that went to restaurants increased to 46% - this increase kept the restaurant industry
stable. It was found that older Canadians (over the age of 55) greatly contributed to this
stability as they increased their use of restaurants more than other age groups (GE Capital,
2013). As the population gets older, there is a possibility of a greater number of older
people coming to Wilsons Family Restaurant.
A major threat to WFR is the Swiss Chalet restaurant being built nearby. The Swiss
Chalet name is well established across Canada and offers take-out and delivery services,
signature dishes that are very popular, and well-known brands of wine and beer, and
offers. WFR promotes itself with flyers, newspaper ads, and radio ads, whereas Swiss
Chalet promotes itself with nation wide television ads. Therefore, Swiss Chalet has a
greater potential to attract more customers. Another threat lays in economic uncertainty.
Eating at restaurants is considered a luxury and in times of economic downturns or
uncertainty, consumers may be reluctant to spend their money at restaurants. For a
summary of the SWOT analysis, please refer to Appendix I.
2.2

Consumer Analysis
The benefit segments for WFR include local/homemade food and variety. Refer to the

segmentation scheme in Appendix II and customer profiles in Appendix III.

a) Homemade food seekers: Food that is homemade creates a sense that it was prepared
carefully and of high quality. It may also signal that safety and sanitation were
priorities, the food wasnt rushed, it was prepared with the customer in mind, and it
tastes very good. The type of customers under this benefit segment includes loyalists,
tourists, and businesspeople.

b) Variety seekers: Customers want variety in the types of food and drink available
restaurants. They dont want to eat the same thing over and over again, meaning they
want and appreciate a wide selection of choices and alternatives in a menu. For
example, a customer who is health conscious may want a garden salad instead of fries
with their sandwich. The type of customers under this benefit segment includes
families and sociable people.
2.3

Competitor Analysis
For WFR, one of the main competitors is Swiss Chalet restaurant with who they differ in

terms of individual menu and service quality. In general, Swiss Chalet has a larger variety of
offerings, options and combinations than WFR. Swiss Chalet is also larger, as they are a
national brand. This allows them a greater budget for local and national advertising that
WFR does not have. Additionally, prices are similar for similar products and side offerings.
More specific comparisons can be seen in Appendix IV.
3

Identification and Analysis of Alternatives

Wilsons Family Restaurant is facing a decline in their regular sales and soon a well-

recognized competitor will enter the area. Johns concern is that the opening of Swiss Chalet will
lead to future decreases in sales and a great loss in his customer base. There are a few
recommendations John could consider to overcome his problems. Decreasing prices is not an
option as John is already satisfied with them and they are competitive with Swiss Chalets prices.
Other options include:
a) Increase efficiency of promotional activities: promotional activities would include different
types of advertising, such as newspaper ads, TV ads, and radio ads. Personal selling could also

be an option here; WFR can offer special deals to the regular customers or new travelers in this
area, or it could provide coupons to encourage customers to try new items. Social activities could
also be considered as a part of promotion.
b) Increase the number of items on the menu: WFR could increase the number of items it offer,
or new items could be served at a certain time to attract the customer attention.
c) Increase the number of options for each item: John thought to add multigrain option for
bread-based items, but he could also offer combos (for example, soup and sandwich, or serving
rice or pasta with chicken or turkey). Such steps would help attract customers to come and try
different items.
d) Offer home delivery service: providing home delivery service could attract customers from a
different segment and also increase sales, filling the gap in offerings that Swiss Chalet current
fulfills. This tool could also be used against the online order service of Swiss Chalet.
e) Manage service quality: To obtain more customer satisfaction, WFR can hire employees that
are trained in providing the upmost standard of customer service, who can maintain proper
relationships with customers and can assist in increasing customer satisfaction and loyalty. John
himself, as well as his current employees, should work hard in order to improve their customer
skills and provide the cozy-home feel that the restaurant used to have. See Appendix V for the
alternative decision criteria matrix.
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Recommendation
Based on our decision criteria matrix, our recommendation would be to improve the

marketing and advertising scheme (i.e. rather than just advertising locally in Struan, John should
consider the benefits of advertising his restaurant to the surrounding areas). A huge opportunity
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exists to expand his potential customer base by advertising to the nearby cities; having a
marketing presence in these areas will increase likelihood of people recognizing WFR as they
pass through Struan. Making a radio ad, and putting an advertisement in these cities weekly
newspapers could be the first steps in trying out this market.
In the meanwhile, he should also improve his customer satisfaction with the locals at
home by improving their experiences and re-creating the customer-friendly atmosphere that his
father had worked so hard to build. This could be done by John asking his father spend time in
the restaurant to help rebuild the customer relationships. Improving the locals experience will, in
itself, help the marketing of the restaurant by means of word-of-mouth; if the locals begin to feel
like they are at home again at WFR, they are likely to spread the word, and it would likely lead
them to recommend the restaurant to those tourists and visitors coming to town.
4.1

Product/Service Strategy
In order to improve WFRs service strategy, John needs to consider his service profit chain

and how to make it better. Ensuring that customer service is his staffs main focus (perhaps via
training and educational programs) will be the key to providing more productive service
employees, increased satisfaction/loyalty amongst customers, and ultimately service profits and
growth. This can all be done through our recommendation of managing service quality and
setting standards to be higher than those of competitors.
In terms of product, we think that John should consider offering more options of his
current items (i.e. variations of flavours and portion sizes). John should consider line extension.
A trial-period of new menu items with his frequent customers is recommended before adding
items to the menu. He should ensure not to add too many exotic menu items, as this would lead
to losing the heart of the restaurants local and homemade food atmosphere. See new menu in

File Attachment 1. WFRs focus should be in managing its service differentiation it should
strive to re-create its image as the best local and homemade food in town, as this is what will
really differentiate it from its larger franchise-style competitor.
4.2

Pricing Strategy
John saw his prices fairly similar to those of Swiss Chalet, thus we have decided that

WFR should aim to position their product/service offering as a more-for-the-same product. Their
pricing strategy should be customer-value-based, focusing both in good value pricing, but also in
value-added pricing. This could be done by means of optional product pricing, and product
bundle pricing strategies. For example, John had considered including add-ons to the entrees,
such as adding the Soup of the Day to a meal; he could also offer menu substitutions or
combinations. .
Finally, in order to re-create interest in his restaurant, John should offer more discount
and allowance pricing, or promotional pricing, as he did in the flyers he posted every 3 to 4
months. Offering people discounts to come and try his improved menu options will likely cause
people to give the restaurant another try, especially if they were once one of Mark Wilsons loyal
customers.
4.3

Distribution Strategy
If WFR is to bring customers back and compete with Swiss Chalet, it needs to at least

meet the minimum standards of the chain-restaurant industry in terms of dcor, cleanliness, food
standards, and staff friendliness. If possible, John should consider upgrading the dcor of the
restaurant so that it stands out above the generic nature of Swiss Chalet. Emphasis in this area
should be on, tying into their home-style feel that the restaurant presents itself as having. With

limited seating capacity inside the restaurant, John should consider utilizing unused kitchen
capacity to expand operations into a take-out service and possibly home-delivery. A take-out
order will increase revenue and give customers access to the restaurants food when they dont
necessarily want to be going out on a weeknight. If John is to take on either of these services he
needs to invest in the proper food packaging and delivery equipment so that food quality doesnt
poorly impact his restaurants reputation even further.
4.4

Communications Strategy
WFR needs to focus on building an integrated marketing communications strategy if it

hopes to reconnect with customers new and old. John must provide a compelling message
through advertising, sales promotion, personal selling, public relations, and direct marketing,
about why his restaurant is the best choice when consumers are deciding where to spend their
discretionary budgets.
Currently, the restaurant focuses its communications primarily on advertising with
spending on weekly newspaper & daily radio ads, while dabbling into sales promotion a few
times a year when the restaurant offers discount coupons as flyer inserts in the local newspaper.
The restaurant has a sign outside that gets updated weekly, but doesnt specify what kind of
content is displayed on it.
Based on Exhibit 2, the flyer inserts cost almost 14 times as much as the half-page
newspaper ad on a per-distribution basis. This pricing seems high considering both ads are being
distributed in the local paper. John should consider whether his discount flyers are worth that
much, and if not, distribute that money to other marketing efforts.

From the aspects of personal selling, public relations, and direct marketing, John is not
making sufficient efforts here and it looks like the lack of attention in these areas is core to
preventing the restaurant from building long-lasting customer relationships.
Moving forward, to address the nature of the problem, John needs to work with each of
the marketing communication mix elements to build the restaurant back up as the best local and
homemade cuisine around. Advertisements should focus on the messaging of fresh food &
family, where the ads tell a story tied to these elements and display the hearty personalities of the
owners and staff at Wilsons. Imagery should include John & his father Mark holding up fresh
ingredients or dishes the restaurant is known for with bylines that show that longstanding Wilson
traditions are ones of freshness & quality across generations.
The display outside the restaurant should be used exclusively to bring people in, focusing
on daily or weekly specials and features that are enticing from an appetite perspective and will
attract people who are already passing by the restaurant wanting a good deal. See new logo to
use for signage in File Attachment 1.
Further sales promotions can include giving coupons to existing customers for their next
visit, tie-ins with other nearby businesses like theatres (where each gives out coupons to the other
business), and having dedicated specials nights. In-restaurant promotions require wait staff to be
trained to properly upsell appetizers and desserts with featured items and personal testimonials
from the staff themselves.
To personally sell new customers on the restaurant, John needs to work on his lack of
one-on-one skills, and start building relationships with local organizations and community
members. Wilsons can lead in the area of hosting events by working with local businesses,

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charities, sports teams, and other interest groups. If John is going to be in the back of the
restaurant with the cooks, he needs to have a warm and relatable front-of-house staff member to
welcome guests; otherwise, he should be out there doing it himself.
John needs to make himself and the restaurant accessible and helpful with local media, as
they need to build a reputation of supporting the community. John should regularly provide local
newspaper, television, and radio media with press releases and media kits with images on whats
in season, cooking tips, recipes, and other informative pieces that give media something to talk
about and put John in a professional and knowledgeable light. Getting involved with the
community could include sponsoring local events, as well as participating in local festivals and
markets as a food vendor to attract new customers.
To target their direct marketing, John needs to be specific about WFRs target market
segments. By referring to the customer profiles in Appendix III, WFRs customers are primarily
a cross-section of 5 major groups: loyal regulars, tourists, families, business people, and sociable
people. To target each of these groups he should go to where these people are with his
advertising and communicate with them there. For tourists, John should consider putting up a
billboard at the closest highway off-ramp. Families tend to go where their kids go, so sponsoring
little league baseball with Wilsons listed on the back of all their shirts would go a long way.
Business people want quality food on a limited time budget; John should drop off flyers to local
businesses offering 10% off their new expedited lunch menu to any business within a 10
minute walking radius around the restaurant. Finally, sociable people are always looking for the
hot spot on the weekend to relax after a long week. People in this category are make last minute
plans with friends via their cell phones, where theyre highly connected to social media and

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would be responsive to advertisements on Facebook, Yelp, and Twitter, among other social
platforms. Please see Appendix VI for the recommendation table.
5

Implementation Strategy
In order for Wilsons Family Restaurant to succeed, the above recommendations need to be

implemented in a strategic manner. As the business is small, it is necessary to assign resources

carefully. The plan is summarized in an implementation table in Appendix VII. It would take
approximately 3 to 4 months to implement all recommendations. The actions required to be
implemented include menu revisions, staff training, new promotional material, updated dcor,
new signage, increased networking and finally increased use of social media. As John Wilson is
the restaurant owner, he will be the champion of these activities with the support of his father,
and the restaurant staff. Additional support, depending on the activity will be provided as
necessary.
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6.1

Budget and Evaluation

Budget for Communications Strategy
John Wilsons budget for marketing is $25,900 for 2013. Therefore, he has considerable

resources to implement many of the proposed recommendations in the communications strategy.

The objectives for John and his restaurant are to increase sales and customer satisfaction;
thus, it is necessary to place the majority of the capital on marketing strategies that will
accomplish these goals. At a high level, it is recommended that John Wilson spend 60% on
advertising, and 40% on training and improving customer relations. The following a breakdown
of these percentages and a comparison from 2012.See a detailed breakdown in Appendix VIII.

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6.2

Evaluation
To determine if the implementation plan is successful, a number of metrics and

performance indicators much be developed. This will allow John and his staff to understand if
they are meeting their objectives and areas for improvement. Appendix IX summarizes the
metrics and evaluation criteria.
The first objective of Johns restaurant is an increase in sales. Therefore, sales revenue
should be evaluated 3 months, 6 months and 1 year after the completion of the implementation of
the new menu and promotional material. This will determine if the implementation strategy has
been successful. In the event that sales are not steadily increasing, John should revisit the menu
offerings to determine if they are priced properly. Additionally, John may want to further
evaluate the promotional material and if that has had any positive effect on sales.
The second objective is to increase customer satisfaction. The implementation strategy
proposes staff training and further community involvement to develop good relationships with
customers. A customer survey posed to customers 3 months, 6 months and 1 year after the
implementation of the new menu and promotional material will illustrate the level of customer
satisfaction. In the event that customers are not happy or satisfied, key questions from the survey
will direct John in how to mitigate the issues (change the menu, hire different staff, etc).
Finally, John should also evaluate his profits as a result of the implementation of the new
marketing strategy. While sales may increase, it is necessary not to go over budget on costs
related to the communications strategy, and other areas of the marketing plan. The costs may
take some time to be realized, therefore, it is recommended that profits be evaluated 6 months
and 1 year after the completion of the implementation plan. If the costs are over budget and the

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profit does not meet set targets, it will be necessary to revaluate the allocation of funds to
different cost centers (advertising, training, rent, labour, etc).

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Appendix I: SWOT Analysis

Strengths
High Customer Loyalty

Weaknesses

Reputation for providing the best local,

homemade food

experience

A wide selection of food for customers to

Decline in sales and customers after John

took over the restaurant

choose from

John Wilsons lack of customer service

Decline in reputation after John took over

John Wilsons culinary education and

experience
Opportunities

Large tourist population

Offering of more healthy alternatives like

multigrain sandwiches

Offering more pie and cheesecake flavors

Aging population

Threats

The opening of Swiss Chalet just down the

road from Wilsons Family Restaurant

The number of families coming to

restaurants is declining.

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Appendix II: Segmentation Scheme

Wilson's Family
Restaurant

Good Quality

Loyalists

Tourists

Variety

Businesspeople

Families

Sociable People

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Appendix III: Customer Profile

Segment
Loyalists

Who
Local residents that want to
support local businesses and
economy. They will support
businesses that benefit them and
the community as a whole.

Why

Where

How

When

Primary Benefit:
Good Quality

The town of
Struan

They are regular

customers and
they come to the
restaurant
because of the
quality of the
food and the
service provided.

Customers come
to Wilsons at
least a couple of
time a week. This
includes the
Sunday lunch
crowd and the
breakfast lunch
crowd

Primary Benefit:
Good Quality

Outside of
Struan

They are less

frequent
customers. Will
come to the
restaurant when
they are visiting
the town or
driving through it
and are hungry.
Tourists will
come back if the
food and service
is to their

Anywhere
between once a
week and once a
year. It all
depends on how
far they reside
outside of Struan.

Expect a certain level of quality

and customer service. They also
expect the establishment to be
clean and visually appealing.
Tourists

They come from outside of

Struan. When they visit this town
they are interested in trying the
local cuisine. They want to try
new things and have unique
experiences. They expect a
certain level of quality and
customer service. They want
friendliness of staff and dont
want to be mistreated or taken
advantaged of because they are
outsiders. They also expect the
establishment to be clean and

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Segment

Who

Why

Where

visually appealing.

How

When

standards.

Families

Includes parents with children.

These customers want the
restaurant to have food that will
be liked by parents and their
children. They want the
establishment to be child friendly
(high chairs for infants, child
friendly food and desserts). If
children dont like the food,
families will be less likely to
attend. Families also like choices
in their menus and alternatives
when selecting items. A lot of
parents are concerned for their
childrens health and want
healthy alternatives for them.
Price will be a factor. If price is
too high, they will be less
inclined to be frequent customers
to the restaurant.

Primary Benefit:
Variety

From Struan
and outside
of Struan

There is more
involvement in
buying food at
the restaurant.
Will buy only if
the price is right
and children will
enjoy the food.
Taste and price
are two essential
factors for these
customers to
spend their
money here.

These customers
will usually come
in the restaurant
on weekend
afternoons or they
are part of the
breakfast crowd.

Businesspeople

These customers have money to

Primary Benefit:
spend. They dont mind spending Good Quality
money on high priced menu items
provided they are of a certain
desirable quality. In other words,

From Struan
and possible
outside of
Struan

There is greater
involvement in
buying. Will
purchase food if
it is of a certain

More than a
couple a times a
week, usually
during the lunch

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Segment

Who

Why

Where

the food and drinks need to taste

good and presentation is very
important. Good customer service
is also important for these
customers and the establishment
needs to be visually appealing
and be worthy of having money
given to it.
Sociable People

These customers like to have a

Primary Benefit:
good time. They go to restaurants Variety
to interact with others and catch
up with good friends. They may
arrive to the restaurant as a group.
These groups may want to order
different things, will want to try
new things and will not want to
order the same thing over and
over again. Therefore, variety is
very important.

From Struan

How

When

quality. Price is
not a major factor
in purchasing.

hour.

Like to choose
from a wide
variety of items.
May take their
time in choosing
their items. They
want to make
their time at the
restaurant very
enjoyable.

These customers
usually come to
the restaurant on
Friday or
weekend nights.

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Appendix IV: Competitor Analysis Summary

The following are more specific comparisons of Swiss Chalet to Wilsons Family Restaurant.

Swiss chalet provides an online menu and a take-out option whereas WFR does not; in
this case WFR might have difficulties to compete in the take-out section.

Swiss Chalet offers much more variety than WFR overall. Swiss Chalet offers many
dishes that WFR does not (for example, pasta and rise dishes, and chicken rolls), and
many of the items have different options (for example, the chicken can be ordered with
ribs or shrimp). In comparison, WFR has only one size for its appetizers, except its
spinach dip, which is offered in individual or large.

In terms of entrees, WFR offers more variety than Swiss Chalet (e.g. 5 kinds of burgers
compared to 2 types of burgers); but Swiss Chalet has more side dishes, with 11
options. Swiss Chalet has more pasta offerings than WFR; but WFR sells pizzas, which
Swiss Chalet does not.

Swiss Chalet is greatly known for its rotisserie chicken dishes, which is made fresh
daily, but they are also known for their featured items when they introduce new items,
and they have many kids menu options. WFRs special items are fish and chips, perogie
madness, and meat-lovers steak, and does not have a kids menu,

Prices do not vary hugely between restaurants - Wilsons entre prices are lower, but
Swiss Chalets dessert prices are much lower.

Swiss Chalet is run by family members and has 200 different stores throughout
Canada, whereas WFR is a local family business with only one location. Therefore,
Swiss Chalet has a larger budget for communication than WFR does, allowing them to

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advertise more heavily nationwide. Swiss Chalet is known across the country, but WFR
has established its reputation just in its local area.

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Appendix V: Decision Criteria Alternatives Matrix

Alternative 1:
Increase
efficiency of
promotions

Sales

Alternative 2:

Alternative 3:

Alternative 4:

Alternative 5:

Increase the
number of items

Increase the
number of
options

Offer home
delivery service

Manage service quality

++

++

+++

+++

Costs

++

++

++

Reputation/ market
share/ customer loyalty

+++

++

++

++

Decision criteria

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Appendix VI: Recommendation Table

Product / Service

Pricing

Distribution

Communications

Provide staff training on customer service skills.

Introduce policies for standardized product & service quality.
Increase options on existing food items instead of adding more new items to the menu.
Frequently introduce new food items on a limited trial-basis to test successful items with customers.
Avoid introducing exotic food items that dont match the restaurants local and homemade food
mantra.
Leave pricing the same, but target a more-for-the-same product strategy in comparison to Swiss Chalets
pricing.
Introduce specials that combine individual menu items which have an overall lower price than if they
were bought individually.
Introduce further discount allowance pricing through coupons to bring old customers back to the
restaurant to try it again.
Complete small restaurant renovations to provide a more comfortable and friendly atmosphere in the
restaurant. For example: new paint, table refinishing, wall art, etc.
Introduce take-out and delivery services
Stop buying expensive flyer inserts every 4 months and redirect that money to other marketing efforts.
Update local newspaper ads to focus on food freshness and the family-based nature of the business.
Include imagery of John and family members or staff holding up fresh ingredients and prepared dishes.
Update sign outside of the restaurant weekly to promote specials and features.
Give coupons to existing customers for their next visit to reward loyalty to the restaurant.
Get involved in the community through sponsorship of non-profit organizations.
Host community events at the restaurant to increase visibility.
Provide content to local media sources in the form of articles and interviews concerning food related
subjects to be seen as an expert in the local food and hospitality industry.
Rent billboard space near the highway to bring passing-by tourists in.
Introduce expedited lunch menu for business people who want quality food on a limited time budget.
Sponsor childrens sports teams to attract family profile customers.
Advertise weekend specials through social media to attract sociable customers.

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Appendix VII: Implementation Strategy Table

Implementation Task

People

Cost

Time

Control/Evaluation

Revised Menu

John Wilson, Mark

$10,000
Wilson, kitchen and wait
staff

1 week

Customer surveys to
determine if they are
satisfied with new
offerings

Staff Training

All staff

1-3 days

Customer surveys to
determine if they are
satisfied with the wait
staff

$5000

Evaluate sales revenue

would indicate more
customers
New Promotional
Material

John Wilson

Outdoor Display

John Wilson

$15,000

1 month

Review sales revenue

and profits. Increased
sales would indicate
more customers. Profits
would ensure no cost
overruns

Cost included with new

promotional material

2-3 weeks

See above regarding new

promotional material

Marketing Company

Marketing Company

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Implementation Task

People

Direct Marketing to
Segments

John Wilson

Community Exposure

John Wilson

Restaurant Manager

Restaurant Staff

Cost

Time

No cost for social media

pages

1 week

Variable but typically

standard operating costs

Variable depends on
the event

Control/Evaluation
Increase in sales revenue
Increased traffic on
social media sites
indicates buzz
surrounding the
restaurant
Increase in event
bookings or private
functions at the
restaurant
Increase in requests to
support charity events
Increase in sales
revenues

*Optional

John Wilson

Dcor Update

Interior Design
Company
Contractors

+$20,000

1-2 months

Evaluate the following

metrics before and after
the renovations:
-

Sales revenue
Costs (profit)
Customer traffic at
peak times

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Additional Implementation Discussion

The revised menu should be the first recommendation implemented as many of the other recommendations stem from the
restaurants offerings. John Wilson, his father, kitchen and wait staff should all be involved in the menu revision. This includes
determining which of the current menu offerings is the most popular, which are not, and how can new items be added (additional
sizes, combination platters, new flavours, etc). This activity would include taste tests and could be completed within a week. Overtime
for hourly employees may be required, as this activity may have to be completed when the restaurant is not open. Upon development
of the new menu items, the new menus would be printed and provided to customers.
Once the new menu has been developed and implemented, the staff will have to be trained on the new offerings. This aligns
with the recommendation of ensuring quality service for customers. The staff will not only have to learn about the new items being
served, but also how to create customer relationships that would hopefully develop repeat customers. This training would involve
everyone that works at the restaurant and would be facilitated by Johns father and a professional restaurant training organization. The
investment of this training would hopefully result in greater sales. Ideally this training would occur when the restaurant is not open.
Overtime pay for hourly employees may be necessary if the training is conducted outside of normal work hours.
With a prepared and trained staff and updated menu, it will be beneficial to promote the new image of the restaurant. All
promotional material could be developed at this time. As everyone working at the restaurant is aligned with the new image, they could
provide input on the marketing and promotional material. Alternatively, John Wilson could hire a marketing company to support the

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promotional campaign. At this time, posters, flyers, advertisements, coupons, highway signage (billboards) and other promotional
material could be printed and distributed to the community via mail, placement in strategic locations such as hotels, schools, gas
stations or other businesses. It should take approximately 1 month to design the new promotional material and have it printed.
Updating the dcor of the restaurant was another recommendation. While this may be useful in further implementing the new
image of the restaurant, it may require being closed for a month. This will result in lost sales depending on the time of the year the
restaurant closes. Should this recommendation be chosen and the budget is available, the restaurant should close during the slowest
time of the year. John Wilson and his father should be closely involved in the redesign of the restaurant with the support of a
professional interior design company and necessary contractors. This project would cost thousands of dollars and would require a loan
if the upfront capital was not available.
Regardless of whether the interior of the restaurant was redesigned, updated exterior signage would be necessary. The exterior
signage would be an extension of the redesigned promotional material and would be an integral part of rebranding. The new signage is
likely to cost less than $5000 and would primarily involve John and a hired sign company. The time to create and print the new
signage would take approximately 2 to 3 weeks.
Once all the new marketing and promotional material has been developed and the menu refined, John Wilson would be able to
direct marketing to selected market segments. This would involve developing a presence in social media such as Facebook, Yelp, and

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Twitter. The majority of these marketing tactics are low cost or free and take very little time to implement. Thus, it would be very easy
for John to complete these tasks by himself or with the assistance of a restaurant general manager.
The final activity necessary to implement the recommended marketing strategies is developing a presence and relationship with
the community. This is a low cost strategy that will allow John to become better known in the community and hopefully help him
follow in his fathers footsteps. This would include attending or supporting charity events, promoting at local sporting events, opening
the restaurant to private functions. Participating in such events would increase Johns and the restaurants exposure to the community
and create media coverage. The cost and time to implement this strategy is variable due to the various types of events. For example, it
may take two days to prepare and execute a charity event or cater a sporting event. The resources required also vary based on the type
of event. However, if must be noted that depending on the type of event, and if it is external to the restaurant, John should take into
account whether the restaurant should remain open if there are sufficient kitchen and wait staff.
If all recommendations are implemented successfully, it is likely that John Wilson will see his sales increase and improved customer
satisfaction.

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Appendix VIII: Budget Summary Table

Marketing Expenses

2012

2013

Newspaper Ads

28%

15%

Flyer Inserts

23%

5%

49%

15%

N/A

20%

N/A

5%

N/A

20%

Advertisement

Radio Ads
Billboard Signage
Printed Coupons

Relationship Improvement
Staff Training

29

Marketing Expenses
Media / PR

2012

2013

N/A

10%

N/A

10%

Community Involvement

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Appendix IX: Evaluation Summary

Metric
Sales Revenues

Evaluation Parameter
Transaction records

Evaluation Frequency
3 months, 6 months and 1 year
after implementation of
communication strategy

Contingency
Revisit the menu offerings if
sales are not increasing
Consider revising the costs of
menu items
Reassess the competition

Profits

Sales records, Accounts

Payable (costs)

3 months, 6 months and 1 year

after implementation of
communication strategy

Determine whether sales are

decreasing or costs are
increasing (or both) and how
this is impacting profit
Address any cost overruns by
reducing costs where possible
Determine what is causing the
decrease in sales if applicable

Customer Satisfaction

Customer Satisfaction Survey

Conduct the survey 6 months

and 1 year after implementation
of new marketing and branding
strategy

If customers are not satisfied,

survey will address why and
how the restaurant should
change. This may require a
change in staff or a change in
menu offerings.

31

Bibliography
GE Capital. (2013). Canadian Chain Restaurant Industry Review. Retrieved from
http://www.restaurantinvest.ca/site/restaurant_invest/assets/pdf/2013__canadian_
chain_restaurant_industry_review.pdf
Swiss Chalet (2014). Retrieved from http://www.swisschalet.com

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