Marketing Plan on Syrah's
Market Sryah’s Restaurant is an upscale, contemporary restaurant that will target mostly visitors to the New Orleans area such as business people and tourists. According to the National Restaurant Association, twenty-five percent of tableservice-restaurant sales come from travelers and visitors. That is one-fourth of sales from as estimated $1.2 billion restaurant-industry sales on a typical day in 2004 (National Restaurant Association, 2004). A lead researcher in the restaurant industry, Loren Scott states that people spend fourteen percent more on food prepared outside the home for every ten percent added to the household budget. With this result, Scott concludes that business at restaurants is greater with people who earn a high income. The increase also stems from aging baby boomers now making the most money of their lives (Butler, 2003). And most important, we would like to establish a relationship with our locals, creating frequent, loyal customers to our restaurant. With Syrah’s being a fine dining restaurant, we will be target business people in the New Orleans area with an income of $25,000 or more, which is 53.1 percent of New Orleanians. Also, there are 191,739 people sixteen years old and over employed in New Orleans. Of that amount, 66,459 have a management, professional, or related occupation. That is 34.7 percent of those employed, which is the highest percentage of all occupations. This results in Syrah's target market as having the highest percentage of New Orleanians in a particular area. Competitors Syrah’s competitors will be restaurants in the same location with similar prices, and are upscale and fine dining. Syrah’s restaurant will be located in the City Business District of New Orleans, which is an area with many restaurants. Our exact location will have competing restaurants sited near by such as a few blocks away and even across the street. Syrah’s will also have many competitors in the area of prices. Some restaurant-goers pick and choose where they dine by which restaurant is cheaper. But many of them select where they are going to dine out at by quality and price. Those types of people will pay extra for their meals as long as they feel they are “getting their money’s worth”. As a result, Syrah’s will compete with not only price but making sure that our customers are receiving what they paid for because restaurants in the region of Syrah’s are mostly fine dining with similar prices. Another factor with competitors are that there are many other upscale, fine dining restaurants in the City Business District and New Orleans overall. One of our main competitors is Cobalt Restaurant which is located in the heart of New Orleans Business District. They are also a fine dining restaurant. The Executive Chef at Cobalt, Chef Brack, specializes in contemporary southern foods with a fun and contemporary flair. Syrah’s restaurant is dedicated in the area of music that we offer to entertain our customers, which Cobalt offers too. Competition will be a big part of establishing our restaurant. Syrah’s is open only four nights a week for dinner only, whereas, our competitors mostly open for lunch and dinner.