Restaurant Strategy Analysis

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Restaurant Strategy Analysis




a) Effect of all you can eat buffet 2

b) i) Labor Costs 3

ii) Buffet Versus A’ La Carte 3

iii) Overall Cost Of Food 4

Bulk purchases 4

Preparation 5

iv) Amount Of Food To Be Prepared 5

v) Strategy 5

References 7

Restaurant Strategy Analysis

a) Effect of all you can eat buffet

Many entrepreneurs often imagine that an all you can eat buffet is quite costly. However, this strategy will prove to be quite cost effective to the restaurant. An all you can eat buffet allows for cost cutting on various other aspects. For example, the restaurant can easily diminish the cost of labor and training. Often presentation of food by waiters requires that more waiters are employed to serve particular areas. On the other hand, a buffet means that the customers are serving themselves and there is therefore no need for trained waiters.

The cost of purchase of food will alsodecrease significantly. Two things happen concurrently on this factor when an all you can eat buffet is introduced. First, the buffet attracts two types of customers. The first is the customer who cannot afford the food in the a’ la carte menu. The next is just the customer who wishes to eat more and save. The cost of the food must therefore be calculated to carefully include the saving and also manage the cost of the food. The cost of food is such that the customers cannot consume as much food as they originally imagined they would. The food is purchased by the restaurant in plenty which reduces the cost significantly. It is also easier for the manager to calculate immediate profit as food is prepared in bulk.

With an all you can eat buffet, it is easy for the restaurant to attract new customers in plenty. With this strategy especially, the restaurant will attract families and groups who wish to enjoy a meal together. This in turn translates to immediate profit.

ii) Statistics on food costs for a la carte menu

The below table shows an example of the expected changes in food expenditure from the popular meals in the restaurant. The analysis shows a conclusion with expected significant decreases in meal purchasing costs.


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Purchasing price in traditional menu Purchasing price in a la carte menu difference %
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