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Discussion:  Market  Research  Analysis  

The research group decided that the most effective method to conduct a market research analysis in Manhattan, Kansas was through the collection of primary data. The research group conducted the research through a two-pronged approach. The first phase involved disseminating a questionnaire that assessed the overall attitude towards established daytime eateries in the community. The second phase involved personal visits to three of the most popular daytime eateries: The Chef, Early Edition, and Arrow Coffee. This section of the report will begin with an overview of the restaurant industry in the United States and then proceed to a more specific analysis of the market in Manhattan, Kansas.

Daytime eateries belong to the Full-Service Restaurant sector of the Restaurant Industry (NAICS Code 7221). According to the United Bureau of Labor Statistics roughly 12 million United States citizens were employed in the Food Services and Drinking Places sector in March 2016. On average, restaurant employees earn $13 an hour. The level of output, in terms of service and product, had risen 3.6% between 2013 and 2014 while labor productivity had also increased .4% between 2013 and 2014. A positive national trend indicates a favorable mental affiliation with working in the restaurant industry. As national averages rise, local averages are more likely to be impacted in the same progressive manner. The increase in worker productivity and overall restaurant profitably creates an optimistic atmosphere for continued expansion and growth of restaurant franchises, such as First Watch (The U.S. Bureau of Labor Statistics, 2016).

The National Restaurant Association has placed the hopeful Restaurant Industry trends in a statewide context. In Kansas alone, the Association reported 5,033 eating and drinking locations. 1,341 of these establishments are located in the Flint Hills region. The Kansas restaurant industry is forecasted to attain sales revenue of $4.7 billion in 2016. Furthermore, 134,800 Kansas jobs are derived from employment in the Restaurant Industry. This constitutes 10% of state employment. Additionally, 14,700 jobs are expected to be added between 2016 and 2026. This is a 10.9% growth projection (The National Restaurant Association, 2015). It is beneficial for First Watch to consider the past performance and future projections of sustainable business development in the Flint Hills region. The high number of restaurants indicates a prevalent demand for full service restaurants. Additionally, the strong forecast for sales revenue displays a consumer market not only willing, but able, to feed their appetite for more specialty restaurants.

Given the above statistics, it is clear that the Flint Hills region of Kansas provides a promising place for current investment and long-term sustainability. Questionnaire  Analysis    

The next section of the discussion will examine the specific community factors affecting the decision to expand First Watch to the Flint Hills region. Given an analysis of current demand, it is evident that there is a shortage of daytime eateries1. This creates a favorable environment for new firm entry.

1 If you are interested in viewing the questionnaire used to collect data for this segment, please consult: http://goo.gl/forms/KfSS5S5Wiy

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Demographics  

The participants in the Manhattan Daytime Eateries questionnaire ranged from under 18 to over 55 years old. 89% of participants surveyed were between the ages of eighteen and twenty-four years old. Demographically, 89.8% were single, 5.1% were married and 3.4% had young children. 11% of participants were full-time professionals while the majority of individuals, 84.7%, considered themselves full-time students. 2.5% were employed part-time (non-student) and 1.7% were retired. Personal  Decision  Factors    

When asked, 87.3% of survey participants indicated they enjoyed eating out for breakfast and 66.1% confessed to eating out for breakfast at least once a month. 18.6% of participants expressed their habit of eating out for breakfast once a week and 1.7% marked that they patron breakfast establishments 2-3 times a week [Figure 1-1]. It was surprising to discover that only 44.1% displayed an interest in natural, locally-sourced ingredients and that 59.3% would be willing to wait over forty-five minutes for a table if the restaurant had a strong reputation.

Consumer  View  of  the  Market  

The questionnaire also surveyed the consumer’s current view of daytime eatery options in Manhattan, Kansas. 58.1% of participants selected The Chef as their favorite restaurant, 23.1% favored Early Edition and only 3.4% were interested in Arrow Coffee [Figure 1-2]. On a scale from 1 to 5, with 1 indicating no significance and 5 marking very significant, 71.9% expressed a desire to have more breakfast restaurants in Manhattan. Furthermore, 73.2% were explicitly interested in a First Watch opening in town.

Personal  Visit  Analysis    

The final segment of the the market analysis utilized first-hand experiences to create a second layer of primary data collection2. A focus group was taken to the three primary restaurants surveyed: The Chef, Early Edition, and Arrow Coffee. Members of the focus group ranked each dining establishment based on their overall and “dish-specific” experiences. The following results have been released at the participant’s consent.

The  Chef  

Individuals who visited the Chef ranked the atmosphere and food quality highly whereas the median for pricing, timeliness, and customer service ranked below average. Presentation, flavor, and texture of the dishes were viewed favorably across all participants.

Early  Edition  

Participants in the survey who visited Early Edition ranked the atmosphere, pricing, and customer service of the restaurant favorably. However, the dining establishment received feedback at or below average satisfaction in the areas of food quality and timeliness. In regards

2 If you are interested in viewing the direct feedback from market research participants, please visit: http://goo.gl/forms/SjVydw3RlA

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to dish-specific evaluations, diners appreciated the texture and presentation of the dish they ordered but were underwhelmed by the flavor.

Arrow  Coffee  

Surveyed participants who visited Arrow Coffee enjoyed the atmosphere, pricing, timeliness, food quality, and customer service. Dishes ordered met customer’s expectations in regard to taste, flavor, and presentation. One comment made, however, was that the selection of dining options was extremely limited. Diners were less apt to visit the establishment again due to the low variety available.

Personal  Visit  Conclusion  

Overall, every diner who had visited a First Watch ranked their experience at First Watch as superior to the restaurant they were evaluating. They indicated their desire to have a First Watch come to Manhattan and supported that they would patron the franchise an equal, if not greater, amount than any of the other breakfast restaurants.

Market  Research  Discussion  Conclusion  

It is apparent from an analysis of the industry and individual consumer feedback that First Watch would thrive in the limited breakfast market of Manhattan, Kansas. Among the restaurants visited and evaluated, First Watch received top preference. This is unsurprising as First Watch combines an excellent atmosphere with high quality products and superb customer service. The primary and secondary data and information collected from this research validates the existence of a shortage in the Manhattan Daytime Eatery market. As supported by economics, optimal market equilibrium is found when consumer demand equals producer supply [Figure 1-3]. A shortage in the breakfast market currently exists, which indicates untapped profits. If First Watch were to monopolize on this shortage, they would reap the benefits of not only financial success but sustainable community integration and fortified brand recognition.

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Appendix  

Figure  1-­‐1

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  Figure  1-­‐2    

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Figure  1-­‐3  

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References  

"About the Food Services and Drinking Places Subsector." U.S. Bureau of Labor Statistics. U.S.

Bureau of Labor Statistics, 15 Apr. 2016. Web. 17 Apr. 2016.

"State Statistics." National Restaurant Association. National Restaurant Association, 2015. Web. 17

Apr. 2016.

"Create a Pie Chart." Meta-Chart. Graphing/Charting and General Data Visualization App, n.d. Web.

17 Apr. 2016.

Spaulding, William C. "Economics." Microeconomics and Macroeconomics. William C. Spaulding,

2016. Web. 17 Apr. 2016.