Market Analysis
Z ZOUL CAFÉ
Submitted by
Redha Hassan
To
Dr. Lorenzo F. Garcia
Lam Family College of Business
SF State
8
Spring 2020
Table of Contents
Executive Summary.....................................................................................................1
Company Description..................................................................................................2
Market Analysis............................................................................................................3
Geographic location.........................................................................................3
Target market...................................................................................................3
Competition.......................................................................................................3
Unmet needs......................................................................................................3
Competitive advantage....................................................................................3
Advertising Plan...........................................................................................................4
Mission Statement Objective.......................................................................................5
Implementation.............................................................................................................6
Evaluation.....................................................................................................................7
Budget............................................................................................................................8
References.....................................................................................................................9
Appendices..................................................................................................................10
Appendix A.....................................................................................................10
Appendix B.....................................................................................................11
Executive Summary
9
Company Description Products and Services
Market Analysis
Geographic Location
The proposed location for the Z Zoul Café is in 295 Eddy Street, San Francisco, California. This street is seen as a suitable location for the business because the area is suitable for setting up an African dish-based hotel. The US 2010 census showed that San Francisco has a large population of individuals from different races and ethnic groups. This includes Asians, the Whites, African Americans, Native Americans, and other races (Conrad, Hansen, & Lamott, 2020). Likewise, Eddy Street is also densely populated with residents and the working population. This will provide a good customer base for the business (“Location Inc.”, 2020). With such a diverse population, there is a need to introduce café services that cater to the needs of all its consumers despite their race or ethnicity.
Target Market
Our target consumers are the residents of the city and tourists (both local and international) who visit San Francisco due to its attractive tourist attraction sites. These target consumers can mainly be found within offices in the city and in tourist attraction sites and thus, they might require to have meals during lunch periods or for recreational purposes (Smith, 2017). Approximately, the target market is about 50% of the population of San Francisco since this will comprise the working individuals, tourists, and families/individuals that want to treat themselves to sweet African cuisines. A report by Location Inc (2020) indicates that about 35% of the population in Eddy Street are working there. The street has a relatively high population of residency with its vacancy rate being at 14.5%. Together with tourists who flock the city, the target market in San Francisco is well established.
The target market has various needs depending on the nature of their stay in San Francisco. First, tourists have the need of exploring and trying out new food items. Thus, providing them with a chance to taste African dishes (while outside Africa) will enable them to achieve their goals. Secondly, there are some populations, especially older individuals who are looking to feed on healthy foods that will boost their immunity. Thus, having the café in San Francisco will help to meet this need. Other potential consumers are of the African origin and setting up the café will enable these populations to meet their craving needs and also give them a ‘feel at home’ feeling while staying outside Africa. Finally, there are families that will require a good place with good food and leisure that will allow them to interact as a family. Having the café in San Francisco will aid in meeting this need (Smith, 2017) and, in doing so, the café will serve lunch and other full meals to these potential customers.
Analyzing the needs and the location of the potential consumers enabled us to figure out how their buying decisions will be. For instance, a tourist will definitely try out new foods within their vicinity. The working population and families seeking recreation will also look for a place with good food and one that is easily accessible (Smith, 2017).
Competition
Our competitors are other restaurants and café located within San Francisco city. Specifically, the top five competitors are discussed as follows. Tadu Ethiopian Kitchen is specialized in Ethiopian dishes and is located in Tenderloin. They offer a variety of white and red meat dishes alongside vegetables and eggplant. Their food prices range from 15-20 dollars per plate of serving. Their main strength is that they are offering quality Ethiopian dishes that attract many customers. Their main weakness is that they specialize in a few food dishes that are mainly Ethiopian-based.
They also have a branch in Mission Bay and this attracts many tourists to the business. They advertise their business through social media websites and TV commercials. Radio Africa Kitchen specializes in offering Ethiopian dishes and it is located on Oakdale Avenue. Their prices range from 20-30 dollars and they pride in offering best chicken and tuna dishes. One of their weakness, however, is that it mainly targets the rich population in San Francisco. They mainly advertise their business through social media websites and through consumers who recommend it to their friends (“Hoodline Neighbors”, 2018).
Massawa Restaurant is an East African restaurant that is located in North Beach and it specializes in serving East African foods, mainly sambusa, beef, and fish stews. Their products are fairly priced ranging from 10-50 dollars per serving. Their main strength is that they offer legit East African dishes that attract many customers. Their weakness, however, is that they have a limited number of dishes for their dinner and snack servings, making it difficult to have a variety to choose from. They promote their business through advertisements and holding promotional sales during peak periods.
New Eritrea Restaurant is located at 907 Irving Street and it specializes in Eritrean dishes. They have a fair range of prices that attracts many customers to them. One strength s that they are located in a busy street and this provides them with a large pool of customers. Their weakness, however, is that they only specialize in Eritrean dishes. They do advertise their business through social media platforms and promotional activities.
Mourad Restaurant is located in New Montgomery Street and it specializes in serving dishes of North African Origin. Their prices range from 10-50 dollars depending on the food type being served. Their strength is that they have a large pool f customers due to their location. Their weakness, however, is that they only serve dishes from North Africa. Most of their advertisement is done via social media and through promotional activities (“Hoodline Neighbors”, 2018).
Unmet Customer Need
From this review, it can be seen that the unmet customer need in San Francisco is that there still lacks a restaurant offering good East African full-course meals. Although Massawa restaurant has tried, the types of dishes being served are limited. Therefore, venturing into the business is promising due to the existing pool of customers that will want to try out a variety of East African dishes.
Competitive Advantage
Our competitive advantage is that we shall be providing consumers with a wide variety of east African dishes which are prepared with a traditional recipe passed down from older generations to the present chefs. This will include a menu on different soups, red meat, salads, entrees, desserts, white meat, and fish dishes (“Z Zoul Café”, 2019). The café will also pride in providing full course meals to the customer’s present. This will make it unique from other restaurants that offer fast foods and snacks. Our location in the city will also give us a unique advantage as we shall serve the working populations and tourists who are interested in exploring the city.
Mission Statement and Objectives
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Goals and Objectives Flowchart
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Our Mission Statement Mission Statement: to offer quality and reasonably priced food dishes that are unique to the African recipe and would meet the nutritional and satiety needs of all our customers.
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GOAL
Provide consumers with unique African dishes
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GOAL
Provide consumers with nutritious food items |
GOAL
To allow consumers enjoy the value of their money |
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OBJECTIVES
Employe experienced chefs to prepare dishes using African recipes.
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OBJECTIVES
Ensure that the meals being prepared have the desired nutritive value according to the health needs of the consumers.
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OBJECTIVES
Ensure that all meals are reasonably priced to suit the financial capacity of all consumers
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References
Conrad, B., Hansen, G.C, & Lamott, K (2020). San Francisco. Retrieved on February
21, 2020, from https://www.britannica.com/place/San-Francisco-California
Hoodline Neighbors (2018). San Francisco’s Top 6 African Restaurants. Retrieved
on February 21, 2020, from https://hoodline.com/2018/04/san-francisco-s-top-6-african-restaurants
Location Inc (2020). San Francisco CA (Fillmore St/Eddy St.). Retrieved on February 25, 2020, from https://www.neighborhoodscout.com/ca/san-francisco/fillmore-st
Smith, A.N. (2017). 7 Things to Consider before Starting a Restaurant. Retrieved
on February 21, 2020, from https://www.business.com/articles/7- things-to-consider-restaurant/
Z Zoul Café (2019). A Story About Us. Retrieved on February 21, 2020, from
Advertising Plan
Implementation
Evaluation
Budget