Custom essay on Sh-Boom’s a Limited Liability Company registered in New York

Products and Related Services
Sh-Boom’s is a new restaurant with a unique ‘50s and ‘60s motif that is carried out not only in its décor, but also in its food and service. Dining at Sh-Boom’s brings adults and families back to the simple days, when customer service was friendly and authentic, food was made with heart, and dining out was funny and exciting. Sh-Boom’s is the perfect atmosphere for a night out with friends or time with the family – for unparalleled food, services, and vibes. The menu includes a wide variety of drinks and classic American food, which is listed below:

Sh-Boom’s Menu:
• Shakes:
o Baby Bopper shakes 2.99
o Big Bopper shakes $5.99
• Cakes and pies: $6 each
• Sundaes:
o Little Dipper $3.49
o Big Dipper $5.49
o Super Dipper, $9 (appropriate for groups as each serves at least two people)
• Sodas and Juices: $2.25 – $3.50
• Hot drinks: $2.50 – $5.00
• Kid’s meals: $8 and up
• Griddle meals (pancakes, waffles, French toast): $10
• Egg meals (eggs, omelets, scrambles, etc.): $9
• Quick breakfasts (cereal, granola, fruit salad, muffin, etc.): $3
• Smoothies: $6
• Starter soups and salads: $2.50 – $5
• Other starters: $5 – $9
• Meal Salads: $5.99 – $13.00
• Burgers: $5.89 – $10.00;
• Large Specialty burgers $14.00 – $20.00 (need 1 business day advance notice)
• Sandwiches: $6.50 – $12
• Hot dogs: $4.99 – $8.99 (add another dog for only $1.99)
• Blue plate specials (meatloaf, chicken pot pie, beef stroganoff, etc.): $13 – $17
*Items $10 and under are often appropriate for one person trying out the restaurant with a small meal, breakfast, drink, appetizer, or dessert.
*Most customers are expected to purchase starters, meals, drinks, and desserts for each individual in the group. Premium customers will do this frequently. custom essay

Price Rationale
The pricing policy for Sh-Boomswill focus on taking the position above fast food restaurants that means that the price of products in the restaurant will be higher compared to fast food restaurants. At the same time, the price will be lower compared to major competitors of Sh-Boom’s. In such a way, the restaurant pricing policy will take in-between position and the restaurant will hold the niche between fast food restaurant and expensive restaurants. Customers will pay about $20 per meal at average. This price will exceed average price customers pay in non-specialized and non-thematic restaurants. The thematic interior and décor of the restaurant will attract customers and offer pleasant ambiance at the affordable price that will guarantee the popularity and the high attendance of the restaurant by loyal customers.

The Target Market
Sh-Boom’s will cater to the adult community with its family-friendly restaurant, especially those who enjoy 1950s and 1960s aesthetics. The Company’s non-alcoholic nights in particular will focus on attracting families from the community.

Sh-Boom’s’ typical patrons will be 30 to 70 years old, have disposable incomes, earn household incomes of $40,000 or more, have grown children or grandchildren, work white collar jobs, and live in or near Massena, New York. In addition, customers will generally think of the 1950s and 1960s as simpler, more comfortable times, believe in the importance of the nuclear family, seek traditional American cuisine, and not typically be concerned about the health or calorie content of every meal. Importantly, 74% of adults agree that eating at restaurants with family and/or friends is a great opportunity to socialize and use their leisure time.

The following table provides a glance at the previously explored demographics data in 3.3 Location Analysis with regard to the Company’s target market.

Demographics in Targeted Areas Meeting Sh-Boom’s Market Segmentation
13662
(Massena) 13676
(Potsdam) 13669
(Ogdensburg) 13617
(Canton) 12953
(Malone)
Population 16,241 14,755 16,760 10,798 15,793
Families 4,429 3,011 3,825 2,180 2,923
Age 35-74 50.10% 36.70% 48.90% 38.80% 47.60%
Income $35,000+ 59.10% 56.00% 55.70% 66.50% 49.30%
White collar job 51.4% 59.5% 53.6% 63.9% 57.1%
Pop. segment matching
age, income, and occupation 2,472 1,804 2,447 1,780 2,116

Market Needs
Sh-Boom’s will offer an exciting and unique dining and entertainment niche and experience not offered by any competitors in the Company’s targeted area. Although there is rapid growth in local and regional tourism in northern New York, restaurants and nightclubs still lack the appropriate panache to draw in tourists. People seeking food and entertainment often demand something different from the norm, something fun and exciting as well as higher food quality and superior customer service. Sh-Boom’s plans to confront these needs and demands by establishing its unique, exciting, and high-quality restaurant and nightclub in Massena, giving local residents and tourists a fun place to eat with family, friends, and loved ones.

PESTEL of Industry

Political
Restaurants are one of the largest employers in the US. However, the current policies conducted by the local and federal government (Breneman & Taylor, 205) This leaves scope for ample manipulation of mishandling for furthering political interests to the disadvantages of the business community.

The development of the restaurant industry is vulnerable to the impact of such political Issues, as the healthcare bill, nutrition labeling norms, sodium regulations, state and local mandates accounting norms, wage norms, immigration norms, and sustainability (Hitt et al., 450). As it seems, there are more dampeners for the industry than encouraging signs to start business.

New York State policies affect consistently the development of the restaurant industry because the state legislators introduce regulations with the goal of promoting healthy eating and combating costly lifestyle-related health conditions such as diabetes, obesity, heart disease, emphysema, and various cancers associated with smoking cigarettes. The aforementioned concerns of legislators derive from the increased cost to the state, when people develop numerous health problems because of the poor nutrition in restaurants and they develop lifestyle-related diseases are underinsured, resulting in state funds being used to cover their medical expenses (Gitlow, 174). The state’s prerogative has become to attack the problems of lifestyle-related diseases by incentivizing businesses to sell healthier food, by increasing the price of unhealthy foods, by limiting the places people can smoke legally, and by generating media coverage for all these efforts, thereby increasing public awareness of the health effects of their lifestyle choices. Therefore, the restaurant entering the local market should come prepared to high costs of maintenance and services provision along with the focus on the high quality of products and services delivered to customers (Benfari, 105).

The rationale for New York State’s legislation is shared in the state of California. The two states conduct similar policies (Fleming, 226). As the two most densely populated states in the nation, these states’ food industry regulations have a much broader effect on the health of the nation. Major corporations such as McDonald’s, Taco Bell, Domino’s, and other nationwide chains must invest heavily in meeting these states’ regulations. Since their operations rely on mass production of things like placemats, menus, and food packaging for mass distribution to all outlets, the hope seems to be that these companies will find it cost effective to implement changes nationwide instead of just in New York and California.

Other types of legislation affecting the restaurant industry in New York include regulations on worker pay, compensation, and working conditions.

A limited list of the recent and proposed legislation in the state of New York, which affect the restaurant industry, are listed below:

• Indoor smoking ban
• Tax on sugary beverages
• Proposed salt ban
• Menu labeling proposals
• Trans fat ban
• Increase in minimum wage
• New tip-sharing policies
In such a way, the restaurant industry is vulnerable to a considerable impact of state legislators because the state legislation introduces strict regulations in regard to the quality and safety of food and services in restaurants (Benfari, 118). Legislators are primarily concerned with the safety of customers.
Economic
The macroeconomic trend is bearish. Today, the inflation is high. Banks are increasing interest rates to keep inflation under control. The working capital for smaller restaurants will be higher. Customers prefer saving to spending, while their buying power is low (Latham and Braun, 201). The housing market crisis has provoked the economic recession and consistent deterioration of the business environment in New York state (Mohrman, 155). The economic recession had a negative impact on the labor market as well and provoked the galloping inflation rates (Fleming, 227).
However, specialists () forecast the growth in the restaurant industry in 2011 and years to follow. First signs of improvement can be traced today. According to Restaurant.org, the restaurant industry will grow along with the revival in the local and national economy. The restaurant industry sales are forecasted at the level of $580 billion this year with the steady improvement of up to 2.9% in the nearest future. The industry is expected to add 1.3 million career and employment opportunities by 2020. In 2011, the restaurant industry is likely to keep growing.

Social
People love to meet, talk, dine, and have fun. Social family dinners, weekend outings, and parties are essential, though given the economic scenario, people are spending with discretion. There are also growing concerns of the quality of food and its impact on health. Therefore, customers prefer eating healthy food and they are anxious of dining out for the restaurant food may be unhealthy (Millward & Hopkins, 1532).

Consumers seek value, convenience, and expanded menu options. It is expected that consumers forced to save will turn into restaurant traffic as economic recovery continues.

Social media is playing an important part in the promotion of the restaurant. Social media can help to promote the restaurant and to shape its positive public image.

At the local level, restaurants are supposed to focus on health-related issues. This means that restaurants are expected to offer customers healthy food and provide them with services of the high quality, minimizing the risk to their health. However, such policies are likely to increase costs of the maintenance and operations of restaurants in New York.

Also, ethnic, regional ethnic and fusion cuisines and flavors have found a place in the palate.

Sh-Boom’s will appeal to a sense of nostalgia that is widespread among numerous consumer segments for a bygone era. This is especially true for the age segment that remembers the 1950s as the formative years of their youth, for obvious reasons.

Technological
The role of technology in the restaurant business is crucial in the contemporary business environment. There is software available to track supplier orders, inventory, and manage seat utilization. Online reservations, online coupons, social network advertising, mobile payments, NFC smart card, and mobile-based payments require restaurants to be up-to-date with the latest technology. New gadgets and applications come in handy for taking orders, communicating with the kitchen, accommodating special requests, and much more (Schein, 141). Restaurant managers are now much more in control over the staff with remote monitoring systems, instant customer feedback, kiosk-based menu selection, internet ordering systems, and more.

Energy-efficient lighting, energy-efficient cooking systems, and new developments in utensils contribute to consistent changes and improvements in the restaurant industry (Shane & Foo, 151). However, the aforementioned costs rise substantially costs of the maintenance of the restaurant business today.

Environmental
The energy crisis, water crisis, recycling issues, and pollution are critical to the environmental industry. The environmental concerns of the public affect consistently the business development of the restaurant (Peters, 196). Restaurants and food chains are being pushed by consumers to go green. Reduction in solid waste, smoke-free environments, reusable’s and recyclables, and reduction in non-decomposable packaging for packed foods is the order of the day. However, these changes are costly too. Therefore, they raise restaurant costs substantially. The upcoming business will have to be mindful of the fact that there will be a lot of mandates that may need strict abidance.
According to specialists (Peters, 197), restaurant operators have increased their concerns about the quality of food and services. Four of 10 full-service restaurants and 31% of quick-service operators plan to devote more resources to green initiatives this year, and 4 in 10 consumers say they choose restaurants based on their conservation practices (Peters, 188).

Legal
Any restaurant will have to abide by the standard FDA and health norms. A violation of these norms leads to legal implications and sometimes closure of business with severe repercussions. Often, companies and individual owners face lawsuits because of political motivations, labor violations, hygiene and health violations, quality of service violations, and many more (Peters, 208). Sh-Boom’s placement in New York State places it in one of the highest regulated states for the restaurant industry, making new federal regulations something of a non-issue, since existing New York State regulations tend to be stricter. For example, if the federal government raises minimum wage or enacts legislation saying that all restaurants must post nutritional data on menus, these new laws will have little effect on Sh-Boom since they are already in place in New York.