Naked Duck Restaurant

Question:

Write an essay on Naked Duck restaurant.

Answer:

Naked Duck restaurant is a suburban restaurant in Australia. In the year 2011, the restaurant was established in Sydney. It offers the best quality of food at reasonable prices. The restaurant is influenced by an Asian owner.  Its menu is complemented by fresh and healthy salads, succulent cuts of meats and others. The restaurant is very much popular in its area for its coffee. Due to the development of other restaurants in Mascot, NSW, Australia, the Naked Duck Restaurant is facing huge competition. The restaurant is losing its customers and due to which the annual revenue earned has reduced. The revenue of the restaurant can be increased by changing the menu, which can act as a source for attracting the customers (Withiam, 2012).  The restaurant needs to minimize its number of current staff in order to increase its revenue.

In this report, the reasons behind the reduction of revenue and the number of customers have been discussed. The content of the report comprises of problems, proposed solution, its implementation, theoretical process, ethical issues, lessons learned and lastly the limitations of the proposed solution. The researcher proposed solutions that have helped the restaurant in regaining its financial stability (Lambert et al., 2015). In order to attract customers, the Naked Duck Restaurant has provided positive experience of food to its visitors. The restaurant updates its menu according to the choices of the customers. Occasional discounts attract more customers (Counihan, & Van, 2012).  The implementation of seasonal menus, proper pricing strategy, best services, good food, etc. attracts massive number of people towards the restaurant.

Identifying problems of Naked Duck Restaurant

 Naked Duck Restaurant is a suburban restaurant in Australia. However, due to the development of other restaurants in Mascot, the restaurant is facing huge competition. As a result, it has gone down in terms of profit. Some of the dishes are classic and timeless whereas others are outdated. The restaurant is facing huge problem due to its outdated menu (McCormack et al., 2014). The restaurant faces huge competition with the other restaurants in that area. Other restaurants offer more popular and diverse menu to its customers. The customers visit the restaurant because they get unique dishes at reasonable prices. The Naked Duke Restaurant offers a huge number of recipes, which is disadvantageous. This is because more number of choices confuses customers.

The large menus that are offered by the Naked Duck Restaurant are also not updated according to the choices of the customers. Therefore, they are losing their customers. Overstaffing results in employees being paid to do nothing (Richardson & Kilfoyle, 2014).  The restaurant is facing problems due to overstaffing as it is experiencing an unexpected sudden decline. Overstaffing can cause bankruptcy as money is wasted on the wages of the employees. There is a decline in the number of customers because they have to pay much for the outdated food due to poor pricing strategy of the restaurant. The major problem with the pricing strategy is that most of the expenses within a restaurant do not fluctuate with the sales. Achieving target food cost does not guarantee that the restaurant will make profit (Ton, 2014). Both overstaffing and outdated menu became the major factors for Naked Duck Restaurant in declining their revenue. As a result, the restaurant has gone down in terms of profit.

Proposing solutions for Naked Duck Restaurant

Hotels and restaurants generally face many challenges, but every restaurant management has their own way to solve challenges. To increase the revenue of Naked Duck Restaurant needs to attract customers (Lambert et al., 2015). There are many methods, which is helpful in overcoming the challenges that the restaurant is facing presently. Due to high competition, two solutions can be proposed in order stabilize the restaurant’s financial stability. The solutions include:

 Reducing number of staff: The problem that the restaurant is mainly facing is due to overstaffing. The problem of overstaffing can be reduced by reducing the number of staff members. Reduction in the number of staff means the management of the restaurant has to pay less. This will help in maintaining the revenue of the restaurant and in increasing the profit of the restaurant (Wei, 2014).  It also ensures that the restaurant remains competitive in the coffee industry. The restaurant needs to hire employees in peak season when the number of visitors in the restaurant increases. This will help in balancing both the profit and quality of service provided to the customers. The staff of the restaurant must be trained properly for providing excellent service to the customers (Counihan, & Van, 2012). The employees of the restaurant must handle the customers properly by providing best service to the customers of the restaurant.

Changing menu of the restaurant: In order to attract customers, the Naked Duck Restaurant needs to provide a positive experience of food to the visitors. The restaurant needs to update its menu according to the choices of the customers. This includes famous recipes of Australia. The restaurant must offer seasonal foods in order to attract customers. The food must be complemented with fresh and healthy salads, desserts and other popular dishes (Chang& Hayes, 2013). Customers get attracted by quality of food, reasonable prices, and friendly customer service. Therefore, in order to increase its revenue, the restaurant must adopt proper pricing strategy for its food. 

Special Parties: Sometimes, theme dinner party can be offered. In order to attract young people, the restaurant must arrange food event regularly. Discount must be provided on the best food item in order to attract huge mass of people. Management of Naked Duck Restaurant must try to build the database of the customers in order to provide information regarding seasonal foods and discounts (Josiam et al., 2014). Building proper database will provide the best tool for direct marketing strategies. Discount must be provided on the delivery of the food. If the number of visitors in the Naked Duck Restaurant increases means, the profitability of the restaurant increases.

Implementation of Proposed Solution

The above-proposed methods can be implemented by Naked Duck Restaurant in order to gain back the popularity it enjoyed. The Naked Duck Restaurant must understand the benefits of the proposed solutions. If all the proposed solution can be implemented properly, then it will be observed that either the restaurant is regaining its profitability or the restaurant will remain in the same position in terms of profit and loss (Green et al., 2012). The restaurants have to face challenges due to its decreased revenue. There will be deterioration in the financial stability of the restaurant. The restaurant has to face tough competition from the other restaurants. The Naked Duck Restaurant will regain profit and its financial stability if the processes are implemented properly (Kukic, 2013). The following steps must be followed while implementing the proposed solution. The steps include: 

Firstly reducing number of staff: Reduced number of staff will automatically help in increasing the revenue of the restaurant (Artola et al. 2015). This is because less number of staff means the management of the restaurant has to invest less on the salaries of the employees.

Secondly, employees must be hired during peak season: The strategy of the restaurant is to hire employees during peak season, which is helpful because at that time large number of people visit the restaurant (DiPietro & Gregory, 2013). If quality service is not provided or the customers are not handled properly, then it will have a negative effect on the experience of the visitors.

Thirdly, best quality of food must be provided: The implementation of updated menu attracts customers as they get food according to their choices. The foods are complemented with fresh and healthy salads, desserts, etc.

Fourthly, seasonal foods must be kept in the menu: It is very much important for the restaurant to use seasonal foods in order to attract more visitors. In winter people like to have different foods as a result incorporating new dishes according to the  season will bring a cozy vives in the restaurant (Bóka&Kovács, 2015). The management of the restaurant needs to understand the choices of people before selecting new dishes.

Fifthly, seasonal discounts must be offered: Occasional discounts attract more customers. The implementation of seasonal menus, proper pricing strategy, best services, good food, etc. attracts a massive number of people towards the restaurant.

Sixthly database of the customers must be built: The Management of the Restaurant must build the database of the customers for providing information regarding seasonal foods and discounts to the regular customers (Yerdavletova & Mukhambetov, 2014). This is helpful in increasing the number of visitors in the Naked Duck Restaurant. It will help in increasing the profitability of the restaurant.

Review Process

The implementation of proposed solution can create positive or negative results. If the processes are implemented positively then it will help in stabilizing the financial conditions of the Naked Duck Restaurant. The graph below shows that after implementation of the proposed solution there is increase in the revenue (Harrington & Ottenbacher, 2013).  In the year 2014, the average revenue collected is 0.7 million, while after implementation of the proposed solution the yearly revenue collected is 4.5 million (Ertzberger, 2016).  The increase in revenue shows that the proposed solution creates positive results on the Naked Duck Restaurant. The graph shows that the restaurant has regained its profitability in the year 2016.

The restaurant faces lot of problems while implementing the proposed solution. The problems include:

New Menu: The restaurant needs to update their menu in order to influence the customers. It will create a lot of problems because the revenue of the restaurant is decreasing and new menu means they need to buy all the ingredients (Alphonce et al., 2014). The management also faces problem in selecting perfect menu that will attract visitors. 

Best Customer Service: The restaurant faces many problems in providing best customer service to its visitors because the number of staff members were reduced (Chang et al., 2013).The present employees were overloaded with work  in order to provide the best quality of service.

Management: Implementation of proposed solution, developing proper pricing strategy, reducing number of staff, selecting proper menu for attracting customers, providing best customer service to customers, balancing financial condition of the restaurant are the major responsibilities of the management of Naked Duck Resturant (Azevedo, & Vartanian, 2015). They face lot of challenges while managing the business of the restaurant for stabilizing the financial condition of the Naked Duck Restaurant. 

Training of staff: For providing best customer service the staff were trained, and the management of the restaurant faces a lot of problem in providing training. Establishment of solid managemennt is required in order to understand the responsibilities and requirement of training. The restaurant looses both time and money in providing training to its staff. 

Capital:  The most important problem that the restaurant faces is due to lack of revenue. The restaurant needs to revamp the whole design of the place, hire more efficient employees and introduce new dishes. All these implementations will require significant amount of funds (Zannierah  et al., 2012). Managing both capital and stability is a great deal for the management of Naked Duck Resturant.

The results were unexpected. The restaurant regains its profitability very quickly. The graph shows that after implementation of proposed solution the average restaurant revenue was 4.5 million which is three times more than the revenue collected in the year 2014.

Theoretical Concepts

According to Ertzberger (2016), menus of the restaurant must constantly be changed in order to keep patrons coming out of dishes that both delight and surprise customers. Few things like outdated menu in a restaurant will cause reduction in the number of customers. Minor shuffle of the menu every year helps in attracting the customers towards the restaurant. It is very important to have creative chef in the restaurant for providing best experience of food to the visitors. The menu of the restaurant must be vibrant, exciting and innovative in order to attract younger customers.On the other hand Kukic (2013), states that changing menu does not help in maintaining the financial stability of the restaurant. 

It is very much important for the restaurant to use seasonal foods in order to attract more visitors. In winter people like to have different foods as a result incorporating new dishes according to season will bring a cozy vives in the restaurant. The management of the restaurant needs to understand the choices of people before selecting new dishes. Estimation of the preferences of the customers on a long term basis will help in providing point of sale system in the restaurant (Counihan & Van, 2012). Point of Sale (POS) system must be used by the management of the restaurant in order to capture wide range of customers data. This is very much advantageous for the business of the restaurant. This is because the restaurants will provide each and every information about food event, seasonal discount, etc. to its regular customers which help in maintaining the financial stability of the restaurant in times of crisis.

According to Withiam (2012), reinvention is always the key to remaining relevant. When customers are providing best review for the quality of customer service or food, it became very much easy to complacent. When the customers notice that the management of the restaurant in listening to their feedback, then it creates traction in the market. POS system helps the management of the restaurant in surveying and for conversation with the customers (Azevedo, & Vartanian, 2015).  Social media are helpful in flourishing the business of the restaurant.

According to Ton (2014),attracting the customers is not the only option to increase the revenue. Revenue of the restaurant can be increased by using cost-effective ingredients in the food. Less expensive ingredients will help the restaurants in maintaining balance at the time of crisis. The inexpensive ingredients must be experimented before it is used in order to avoid any health issues (Harrington & Ottenbacher, 2013).  Every restaurant experiences some waste which is considered to be controllable expense. This is because it can be minimized by using proper management strategy. The pricing strategy of food in the restaurant must also be implemented properly in order to attract more customers. 

According to Zhang (2015), both overstaffing and understaffing is harmful to a business. Understaffing deteriorate the quality of service provided to the customers which will have a negative effect on the the financial condition of the restaurant. On the other hand overstaffing minimizes the revenue of a restaurant. Overstaffing results in employees being paid to do nothing. The restaurant is facing problems due to overstaffing as it is experiencing unexpected sudden decline. Reduced number of staff will automatically help in increasing the revenue of the restaurant. This is because less number of staff means the management of the restaurant has to invest less on the salaries of the employees.

Ethical Issues related with proposed solution

Ethics came into play with changing menu, updated operations, customers, reduced staff, and others. Many ethical dilemmas arise during implementation of proposed solution. The ethical issues include:

Changing Menu: People are served fast foods that are not healthy for their health but for attracting them the staff of the restaurant needs to serve that type of food (Bleich et al., 2016). The restaurant uses ingredients that are cost effective.

Operations: The management of the Naked Duck Restaurant faces a lot of problems while composting, reducing non-food waste, recycling etc.  

Customers: The management faces lot of ethical issues while customers are intervened. This is because the number of staff members is reduced while the restaurant wants to regain its profit by implementing new strategies or solutions (Hammond et al., 2013).The management took proper action so that the staff of the restaurant arenot bribed for drinks. All the customers need to be served equally by the staff of the restaurant.

Staff: The restaurants have to face ethical dilemmas because of the staff. Sometimes they are bribed for providing extra service, which is against the rule of the management.

Lessons Learnt

Many restaurants are affected by overcrowding of staff and competition from other companies. Naked Duck Restaurant similarly faces many challenges due the development of other restaurants. The other restaurant uses updated menu and proper pricing strategy. The revenue of Naked Duck Restaurant started decreasing because the restaurant is not visited by the customers. This is because the restaurant did not update its menu since it started its journey. Solutions were proposed and implemented in order to increase the revenue of the restaurant by three times. The lesson that can be learned from this problem is how different hotels and restaurants can successfully offer management especially in terms of crises. The most important thing in any business is management. 

The management of Naked Duck Restaurant manages the quality of food, customer service, capital, etc. during crisis for regaining its profitability. It is also learned here that it is very important for any business to fulfill the needs of the customers. The Naked Duck Restaurant flourishes and regains its financial stability when the management of the restaurant update menu according to the choices of the people. Pricing strategy must also be implemented properly in order to have a balance between the revenue and the stability of the restaurant.  

Any business can face challenges due to its competitors, and the most important thing is that how they can withstand in the market by having a strong management. The lessons that are learned here is that having a strong management is very much necessary in order to flourish a business even in the time of crisis. The management of Naked Duck Restaurant implements proper solution that helps the restaurant in regaining its financial stability.

Limitations

The implementation of properly proposed solution has large number of limitations. The limitations include:

Restaurant Revamp: The restaurant faces lot of problems and need to revamp the whole building as well as the systems. The management also needs to hire more efficient employees. These require a large amount of capital. The restaurant is facing many problems due to its low revenue, and therefore it is one of the difficult tasks for the management of Naked Duck Restaurant to invest its capital for buying ingredients for the new menu (Azevedo, & Vartanian, 2015).  The problem can be solved by implementing proper strategies for balancing the capital of the restaurant properly.

Reducing staff: The reduction in the number of staff creates many problems when the restaurant wants to attract customers (Chen et al., 2015).This is because the numbers of staff were limited where the number of customers visiting the restaurant is increasing. The present staff of the restaurant are overloaded with work in order to provide best experience of food to the customers. The problem can be solved by training the staff properly so that they can handle the visitors easily and can provide them excellent service (Breck et al., 2014). The restaurant needs to hire temporary employees in peak seasons for managing the restaurant properly.

Conclusion

It is concluded from this report that proper management is very much necessary for any business in order to regain its financial stability.Naked Duck Restaurant faces many challenges due the development of other restaurants. The revenue of Naked Duck Restaurant started decreasing because the restaurant is not visited by the customers. This is because the restaurant did not update its menu since it started its journey. 

The researcher proposed solutions that have helped the restaurant in regaining its financial stability.In order to attract customers, the Naked Duck Restaurant has provided positive experience of food to its visitors. The restaurant updates its menu according to the choices of the customers. This includes famous recipes of Australia. The restaurant offered seasonal foods in order to attract more number of customers. The food is complemented with fresh and healthy salads, desserts, etc.Occasional discounts attract more customers. The implementation of seasonal menus, proper pricing strategy, best services, good food, etc. attracts massive number of people towards the restaurant.For providing best customer service the staff were trained, and the management of the restaurant faces a lot of problem in providing training.

The strategy of the restaurant to hire employees during peak season is helpful as at that time large number of people visit the restaurant. If quality service is not provided or the customers are not handled properly, then it will have a negative effect on the experience of the visitors.The number of staff are reduced which automatically help in increasing the revenue of the restaurant. This is because less number of staff means the management of the restaurant has to invest less on the salaries of the employees. The proposed solutions have a positive effect on the Naked Duck Restaurant and as a result, the restaurant regains its financial stability. The yearly revenue collected after the implementation of proposed solution is 4.5 million, which s three times more than the revenue collected at the time of financial crisis.

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