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A Marketing Paper….

As I have completed two papers for my Capstone project but I haven’t had the time to post them I am posting both of them now. I hope to post the next ones as I get them completed but we shall see how that plays out. With that being said here is the market research paper into my imaginary restaurant concept. Enjoy!

Assignment 2: Market Analysis

2.1 Target Market Trends

Parings on the Plaza utilizes local product with a focus on showcasing the whole best, and pairing it with different salts and beverages to create a unique flavor and taste. Parings is a fine dining restaurant specifically marketed towards a more upscale dining clientele, which is appropriate considering the menu price point and our location on the Country Club Plaza. Utilizing the local farmers markets around Kansas City, Parings will be able to take advantage of one of the biggest trends in 2012:

“Local sourcing of everything – from meat and fish, to produce, to alcoholic beverages – is another big trend for 2012. Local farms and food producers have become an important source of ingredients for chefs and restaurateurs wishing to support the members of their business community and highlight seasonal ingredients on menus.” — Joy Dubost, Ph.D, R.D., director of Nutrition & Healthy Living for the National Restaurant Association (NRA- What’s Hot in 2012)

            This trend is even more relevant to the Kansas City area, as the movie Fresh highlights. In Fresh there is “a whole section dedicated to getting local farmers ingredients from the farm to the store.” One of the important things that the film highlights is that the demand for local and fresh products is so high and strong that Hen House Grocery Store owner and CEO David Ball started the Buy Fresh Buy Local program in all his stores. This program helps create a fair trade market place for both the farmers and the customer to get the best quality local ingredients.” (Fresh) The Buy Fresh Buy Local section of the Hen House web site is an example of just how deep this connection between Hen House and local farmers goes. With “11 stores spread out over the greater Kansas City area” (Hen House) the demand for local and fresh ingredients is not only hot in Kansas City, it is smoking.

            To show respect to the local farmers for the quality of the ingredients they provide for us Pairings doesn’t let anything go to waste, and this is why our restaurant focuses around whole beast, also called nose to tail, cookery. This also follows another top trend from the 2010 Culinary Trends Handbook of butchering our own meat. (Culinary Trends. 32-37) We at Pairings feel that with the demand present for local products that our concept of utilizing every part of the animal will appeal to the people of Kanas City who are demanding fresh and local ingredients in their own supermarkets.

2.2 Target Market Demographics

            Knowing that the market of Kansas City wants local ingredients we now need to get to know more about the market itself. “Kansas City has a total population of 459,787 people on the Kansas City, MO side of the city, and the estimated median household income in 2009 was $41,999.” (Kansas City, Missouri) Over the last year “Kansas City had a 3.55 Billion or 3% increases in sales revenue from restaurants.” (State-By-State Analysis. 24-25) In addition to this “13.1% of the adults in Kansas City dined out at least two times a week in 2011.” (Dining Out. 47-49) These are good numbers but because they are talking about “313.5 square miles of land area” (Kansas City, Missouri) this doesn’t really tell us the specifics about the area we are going to be doing business. If we look at just the “1.5 square miles that encompasses the plaza’s zip code of 64112” (64112 Zip Code Detailed Profile) we can see a much more detailed picture of what our target market looks like.

Narrowing our market down to just the Plaza and its Zip Code we can see that “as of 2010 that it has a population of 9,635, with an estimated median house/condo value of $274,020 and an estimated median household income of $ 70,806.” (64112 Zip Code Detailed Profile) Looking at the actual number of homes in the plaza area we can see that there are “5822 with 5310 being households without children.” (Plaza) So, we are looking at a lot of households that have a double income with no kids. We intend to market to these local foodies looking for a place to go for special occasions, date nights, or hosted/ catered events in our private dining rooms. We would not dream of turning away a family of four just because we are not catered towards them, we would always accommodate them.

             At this point we know who our customers are, what they want, and how our market looks. It is time that we addressed our price point and competition.

2.3 Price Point and Competition

            With the increased cost for the quality of local ingredients, and the industry cost associated with Pairings’ location, our price point is set at $30-$60. While this may seem high at first, this figure is actually in-line with Parings two biggest and most comparable competitors: Ruth Chris Steakhouse with a $61+ per-person average (Yelp.com) and McCormick & Schmick’s Seafood Restaurants with a $31-$60 per-person average (Yelp.com). In fact, Fogo de Chao, whose location Parings is replacing, has a price point of $31-$60 per-person average (Yelp.com). This “common man” research shows that Parings’ price point is comparable with its competition. Another thing that can be inferred from this information is that the market will bear replacing Fogo de Chao with Parings as they both share the same price point.

“Ruth Chris Steakhouse and McCormick & Schmick’s Seafood Restaurants are both down in sales 24.0% and 18.8% respectfully.” (Review of 2010. 26-30) These two restaurants are losing sales because of the trends previously talked about. People no longer want to support “chain” restaurants; instead they are turning to places that use local and fresh ingredients. While these are only two of the many restaurants (Country Club Plaza) on the plaza they are the most comparable to Pairings in both dining style and price point.

“Penny-pinching was a novelty when the recession began; now it’s gotten old. Anyone who can afford it will dip back into luxury dining in 2011. Look for flashy high-end restaurants and some extravagant or indulgent specials” (Restaurant Trends. 41-43) After being cautious with money for so long because of the recession people are looking to treat themselves. Our target market can afford to go out on the town and enjoy a dinner at Pairings on the Plaza, and they are looking for the sustainable fresh foods we can provide them. This research of the overall demographics of Kansas City shows that not only will the market support Parings, but that it will also be successful.

 

 

Work Cited

“64112 Zip Code Detailed Profile.” 64112 Zip Code (Kansas City, Missouri) Profile. N.p., n.d. Web. 27 Oct. 2012. <http://www.city-data.com/zips/64112.html&gt;.

“Buy Fresh Buy Local.” Buy Fresh Buy Local. N.p., n.d. Web. 26 Oct. 2012. <http://henhouse.com/whats-in-season/buy-fresh-buy-local/&gt;.

“Country Club Plaza | Restaurants.” Country Club Plaza | Restaurants. N.p., n.d. Web. 28 Oct. 2012. <http://www.countryclubplaza.com/Restaurants&gt;.

“Culinary Trends.” Restaurant, Food & Beverage Market Research Handbook (2011): 32-37. Small Business Reference Center. Web. 27 Oct. 2012.

“Dining Out.” Restaurant, Food & Beverage Market Research Handbook (2011): 47-49. Small Business Reference Center. Web. 27 Oct. 2012

“Fogo De Chao.” Yelp.com. N.p., n.d. Web. 26 Oct. 2012. <http://www.yelp.com/biz/fogo-de-chao-kansas-city&gt;.

Fresh. Dir. Ana S. Joanes. Perf. Will Allen, Joel Salatin, David Ball. Ripple Effect Films, 2009. Documentary.

“Kansas City, Missouri.” (MO) Profile: Population, Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News, Sex Offenders. N.p., n.d. Web. 27 Oct. 2012. <http://www.city-data.com/city/Kansas-City-Missouri.html&gt;.

“McCormick & Schmick’s.” Yelp.com. N.p., n.d. Web. 26 Oct. 2012. <http://www.yelp.com/biz/mccormick-and-schmicks-chicago&gt;.

“Plaza.” Kansas City Demographics. N.p., n.d. Web. 27 Oct. 2012. <http://homes.point2.com/Neighborhood/US/Missouri/Jackson-County/Kansas-City/Plaza-Demographics.aspx&gt;.

“Restaurant Trends.” Restaurant, Food & Beverage Market Research Handbook (2011): 41-43. Small Business Reference Center. Web. 27 Oct. 2012.

“Review Of 2010.” Restaurant, Food & Beverage Market Research Handbook (2011): 26-30. Small Business Reference Center. Web. 27 Oct. 2012.

“Ruth’s Chris Steak House.” Yelp.com. N.p., n.d. Web. 26 Oct. 2012. <http://www.yelp.com/biz/ruths-chris-steak-house-kansas-city#query:ruth%20chris%20steakhouse&gt;.

Ryan, Bill, and Michael Chrisler. Restaurant Market Analysis. 1994. MS. University of Wisconsin- Extension Center for Community Economic Development and the Small Business Development Center. Web. 24 Oct. 2012. <http://www.uwex.edu/ces/cced/economies/tourism/Restaurant%20Market%20Analysis.pdf&gt;.

“Social Media Release: What’s Hot in 2012.” What’s Hot in 2012 Social Media News Release. N.p., n.d. Web. 25 Oct. 2012. <http://www.restaurant.org/pressroom/social-media-releases/release/?page=social_media_whats_hot_2012.cfm&gt;.

“State-By-State Analysis.” Restaurant, Food & Beverage Market Research Handbook (2011): 24-25. Small Business Reference Center. Web. 27 Oct. 2012.

 

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