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Salad Fast Food Restaurant Case Solution

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The industry of US organic food market will grow at an annual compound growth rate(CAGR) of  14% until the year 2018 in the sector. The western US market is driving most of the organic food market revenues on the back of growing domestic production and increasing awareness (DANIELLS, 2014)

The total revenue of the US organic market in 2014 will be approximately 42 billion dollars that were approximately 31.32 billion in the year 2012 (U.S. Organic Food Industry - Statistics & Facts, 2015).California had the highest amount of sales of  36%  in USA in 2010 (Hills, 2011).The top organic restaurants in the USA are Organic To Go, Evos, Restaurant Nora, Gust Organics, Amanda’s and Pizza Fusion in which a variety of food is served that is salads, meat and chicken and fresh juices (King, 2009).Obesity has become a problem in the USA. People are switching their lifestyle to healthier alternatives. The demand for organic restaurants is increasing, but restaurants that are purely organic with a variety of organic salads are rare to find. We have therefore planned to open a new restaurant in California.

Following questions are answered in this case study solution:

  1. Business Model

  2. Financials


Case Study Questions Answers

We have coined the name of the restaurant Eat green. The slogan is “Stay Lean eat green”. Organic Food is extremely beneficial for health purpose plus it does not add to your fat and has other benefits like it reduces the risk of heart diseases and boosts the immune system. The restaurant also caters to low fat organic food like soups and full organic meals.

The prices of the products will be determined by gauging the demand for the product and finding out the prices of the competitors. In the beginning, we will set prices lower than the competitor to attract customers and then move towards competitor based pricing. To attract customers, we will introduce a variety of deals with discounted packages to capture the market.

We plan to provide an environment that is soothing to the eye that helps in refreshing people with a social, friendly environment. To create an environment, we use blue walls and refreshing music that pulls people to come to the restaurant.

The company will produce revenues by providing high quality goods and services to an extensive range of customers. The chief products will comprise of beverages and food. The beverages include Juices and green tea and cocktails. And the food contains salads, desserts, full organic meals like grilled chicken with pita bread, etc.

Likewise, the organic restaurant Go Green will also possess a simple website categorizing its menu items of food and beverages including a  map, contact number, address. This website will also have a schedule of upcoming events, deals or sponsorships. Also, it will have associations to other sites of social media such as Facebook, Pinterest, and Twitter. 

2. Financials

Businesses have to consider their finances for so many purposes, ranging from survival in bad times to bolstering the next success in good ones. How you finance your business can affect your ability to employ staff, purchase goods, acquire licenses, expand and develop. While finances are not necessarily as important as vision and a great product, they are crucial to making the good stuff  happen. (Feigenbaum, 2015)

The restaurant business will start with an approximate value of $ 60,000 of which $ 30,000 will be owner’s equity, and the remaining $30,000 will be borrowed from the bank. This cost will be incurred on Equipment, Furniture and other expenses(cutlery, etc.). The expenses incurred initially are a one-time expense and will not be incurred anytime soon.

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