Comparison of Two Restaurants

Summary Restaurants business one of major segments of Hospitality industry in United Kingdom. This assessment report mainly focuses on the analysis of two difference restaurants base on food and beverage principles and theories. Here writer selected McDonald’s Hanger lane for fast food segment and O’Neill’s Ealing for fine dining segments. Evaluation process based on the writer experienced of those two restaurants and used meal experienced check list prepared using food and beverage theories and concept. In addition, writer created SWOT analysis for each restaurants for enhance analysis external and internal factors.

Comparative analysis done using several topics for improve clear understand for readers. Used difference academic journals, books and reputed web site details for deliver evidence to support the discuss points by acknowledging relevant authors of such valuable sources. In addition, knowledge grab during the class contributed more to complete this assessment report. Prominent points highlighted during the conclusion for revise reader attention for such points and end of report provide recommendations to the both restaurants to enhance their business performance.

There are main two limitations of this this report, first, all provided recommendations relevant only for discussed two restaurants and difficult to generalised and second, majority of points discussed base on writer experienced and that have possibility of involved of unintentional personal biased. 1. Introduction 2012 restaurants market update of keynote shows that market value increase 1. 7% during the 2011 compare to 2010. Government informed that UK emerging from recession in this year by Wintour and Stewart (2012). This shows the creating good business atmosphere within the UK.

Restaurants are one of main business sector within the hospitality industry and it has several types of categories such as fast foods, fine dining and ethnic special. This report mainly focuses on the compare and contrasts the two differences restaurants, based on the writer meal experienced of those two restaurants and finally try to gives suggestions that important for improve customer experience and sale of such restaurants. Here writer selected O’Neill’s Ealing mainly for fine dining restaurants and McDonald’s Hanger Lane t for fast food casual restaurants.

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This comparative analysis base on the writer experienced of those two restaurants and use Meal experience check list (See Appendix: 1) for evaluate these two restaurants. These two restaurants working on difference market segments, however base on the food and beverage theories can easily analysis and evaluate two restaurants. 2. Overview of Restaurants 2. 1. O’ Neill’s – Ealing O’Neill’s is one of restaurants chain of Mitchells and Butlers PLC operation in England and they are specialisation of Irish foods; however they offer both table d’hotel and A la carte menus.

Other than restaurants facilities, O’Neill’s have bar section. This restaurants under the non-captive market and they have powerful strength from the mother company that leader within the UK for Restaurants and Pub including brands like ” Harvester” and “all bar one” (www. mbplc. com). However, Ealing O’Neill’s need to differentiate itself to face greater competition from surrounds restaurants in Ealing area (See Appendix: 2 for SWOT: O’Neill’s Ealing). 2. 2 McDonald’s – Hanger Lane (Near Quill Street) The world’s largest quick chain restaurants and 1200 restaurants located within the UK (www. cdonalds. co. uk). However McDonald’s under semi-captive food market because customers can choice only from offer alternatives. Open in 24 hours and drive through facilities adds more strength for Hanger Lane McDonald’s apart from the reputed global name. (See Appendix: 3 for SWOT: McDonald’s Hanger Lane) 3. Comparative Analysis This comparative analysis and evaluation doing in using separate topics and only consider the restaurants part and not consider their additional activities such as bar in O’Neill’s and drive through process of Mc Donald’s . 1. Service System

McDonald’s following fast food service system and O’Neill’s following fine dining service. McDonald’s always follow single point service and take away service; however O’Neill’s use waiter’s assistant systems. Both restaurants service are well maintenance and give good service for customers. Restaurants service systems direct effect of the image of the restaurants and that enhance the customer loyalty. (Ryuet al. 2012) 2. Staff Staffs of both restaurants are well trained and committed to provide full customer satisfaction with higher hygienic practices.

All staff members wear proper dress code and very polite and try to provide best options for customers. Observed that, McDonald’s staffs mainly follows the grater standardised control procedures and O’ Neill’s staff more empowerment for taken some decisions. Highly standardised lead to more control of staff in Mc Donald’s (Ingram and Jones 1998). Employee empowerment enhance customer responsiveness and as well as employees retention with organization (Ashness and Lashley 1995). 3. Use of Special Equipment and Services Two restaurants always try to use more effective equipment to reduce energy consumption.

McDonald’s using high efficiency British Thermal Unit (BTU) fryer to reduce energy consumption and give quick service to customers. O Neill’s also follow green concept and energy consumption reduce strategy (Mitchell and Butler annual report 2011). Card payment accepts by both restaurants that give more convenient for majority of customers. 4. Meal Experience 3. 4. 1 Interior Arrangement, Decoration and Entertainment O’Neill’s interior design and dining area prepare for more comfortable and classic way for retention customers more time within the restaurants.

Arranged seating to facilitate personal and business discussion among the customers and provide slight normal music for give higher feeling to customers. Every Friday and Saturday O’Neill’s provides live music for customers. O’Neill’s provide high class tableware and decoration of all tables. McDonald’s interior design comparatively low and provide plastic chairs and tables and no much intention to keep customers long time in restaurants due to concept of fast food serving (Lillicrap and Cousins 2010). Customers repurchasing behaviour and satisfaction highly depend on customer waiting time in fast foods chain outlet (Law et al. 004). Therefore, McDonald’s basically focus to provide higher number of customers within limited time. O’Neill’s lighting arrangements comparatively good and it provide more attraction and comfort for long-term discussion. However, McDonald’s hanger lane does not use specific lighting arrangement. 3. 4. 2 Safety and Hygienic Hygienic conditions are higher in both restaurants and displayed the council certificate, safety notice, singe and whole restaurants clean and tidy. This is the last part of the food supply chain and majority of customers believe that restaurants maintain good hygienic conditions (Knight at el. 007). According to the Mitchel and Butler annual report, all food suppliers require to meet British Retail Consortium Global Certificate requirement and need to face regular safety and quality audits. McDonald’s has own food quality audits systems (www. mcdonalds. co. uk). 3. 4. 3. Food Price Price is important factor for purchasing decision of consumer (Mendez et al. 2006). Observed that both restaurants provided good value for money and this confirmed by few consumers in two restaurants as well as writer own experienced. However, O’Neill’s need to consider their food price for face competition in Ealing.

Competitive pricing lead for price war and that can affect for long term sustainability of business (Davis et al. 2008). 3. 4. 4 Food, Beverage and Menu O’Neill’s provide eight difference menus basically focus in Irish foods and provide special menu for kids and Sunday. On the other hand, McDonald’s provided own menus basically focus on the fast food category. Two restaurants always keep their menus within some limitation with less variation. However, O’ Neill’s menus are very attractive and give full description for customers (see Appendix 4) (http://www. oneills. co. k/oneillsealing). O’ Neill’s provides foods very decorative way compare to McDonald’s (see Appendix 5) and both restaurants provide foods in good temperature. Foods aroma was fantastic in both restaurants that enhance appetite of customers. Beverage supply was very good in both restaurants. 3. 4. 5 Customer Segments O’ Neill’s major customer range is people who like to go out with business discussion or friends or get some functions to meet each other’s. However McDonald’s major customer range is people who hurry to office or school with kids and back to home at evening.

Identify of customer segments is important for sustain in business (Kotler and Keller 2006) 3. 4. 6 Location and Facilities Both restaurants located at very convenient place to consumers, however McDonald’s Hanger Lane have very good vehicle parking facilities O’Neill’s Ealing does not have. McDonald’s Hanger lane located near the traffic colour lights that give added advantage showing their name for majority of customers use Ealing road (see Appendix 6). In addition, MacDonald’s Hanger lane opens 24 Hours for customers. However O’ Neill’s Ealing have open limited time for day.

McDonald’s provides free Wi-Fi and Baby Changing facilities for their customers. 7. Promotions Both restaurants provide special offer for focus market segments, example that O’Neill’s provide “Three meals for price two” and McDonald’s provide “4 weeks for 4 tastes”. Promotions are important for build good customer relationship and attract potential customers (Kotleret al. 2010). 4. Identification of Present trend in Food Industry Both restaurants not properly address present trends and food related health matter witan the UK. One or more than one shows diagnosis or undiagnosed diabetic within 20 people in UK (Diabetic in the UK 2012). 010 NHS data showed that 26% of adults (age above 16) and three of ten boys and girls (age between 2 to 15) showing either overweight or obesity within UK. However, Observed that both MacDonald’s and O’Neill’s not change for their foods for cater this current trend. In addition, predicted 10. 3% increase of the UK vegetarian foods market within next five years and main retailers such as ASDA, TESCO, Morrison and Sainsbury already started their vegetarian series (Keynote Market assessment 2012). However, both McDonald’s and O’ Neill’s not properly address this new market trend in UK. 3. 6 Sales Mix

Observed that Hanger Lane McDonald’s main sales product is Burgers and other main sales products are sandwiches, dessert, chips and beverages. Proper awareness of sales mixes importance for decide price of products as well as manage revenue (Kotleret al. 2010). However, Irish foods are the main sales products of O’ Neill’s and observed that majority of customers prefer for their Irish foods. 3. 7 Marketing McDonald’s comparatively have powerful marketing strategy than the O’Neill’s. McDonald’s have some benefits of marketing due to global brand and product range is unique for every McDonald’s.

However, each of franchise has limited resource for own marketing process that related for area. McDonald’s have single web site that covering all outlets in UK, however O’Neill’s Ealing has their own web page under O’Neill’s main web (see Appendix 7). This is give opportunity for customers to directly contact Ealing management, find the new functions and specific menus. However, McDonald’s web site is more attractive than O’ Neill’s web site and it include nutritionals value and allergic information of the foods (See Appendix 8).

McDonald’s provide special service for their customers “McDonald’s on your phone” that give location of nearest outlet, menus and latest promotion (www. mcdonalds. co. uk). 4. Conclusion These two restaurants cater their service for difference customer segments in market. However, observed that they always try to dominate in their market segments and very less consideration of current market trends in UK such as such as healthy foods and vegetarian foods. Both restaurants committed to give full customer satisfaction and try to attract customers using difference promotion and giving high quality safe foods.

Both restaurants have proper identification of own sales mix and they use specific marketing strategy to enhance competitive edge in own market segment. 5. Recommendations All discussion based on these two restaurants and therefore these recommendations relevant only for above two restaurants and difficult to generalised. O’ Neill’s Ealing 1. Enhance variation of foods in menu – This is important to attract customers who have difference needs such as Chinese, Mexican, vegetarian, diabetic foods etc. 2. Consider the food price – Need to consider price of foods with compare competitors especially near the Ealing area. . Separate bar area from restaurants. – Bar together with restaurants area give some interference for family dining. Therefore, important of physical separate of dining area from bar section to attract more families to restaurants. 4. Band competition – They can invite Ealing area musical bands to perform in their restaurants that give more attract of local residents and young people to restaurants. 5. Provide nutritional value in in foods – That important to customer to select best suit foods for them and give attraction of customers. 6.

Phone application to customers – iPhone, Android, Blackberry, Ovi – O’Neill’s special promotion, menus and special news, this important to always keep customer live with restaurants. 7. Try to get some parking slot beside road side after discuss with Ealing Council. Especially Friday and Saturday nights. 8. Provide loyalty card to regular customers to enhance revisit of regular customers. 9. Provide discount and promotion during the winter period to attract more customers by considering present positive condition of economic growth of UK. McDonald’s Hanger Lane 1.

Increase seating capacity; keep more employees that enhance their attraction of McDonald’s products. 2. Concern of healthy foods and vegetarian foods – Need to consider present market trend of healthy foods, especially foods related to children. 3. Provide more attraction inertial decoration – That gives more attraction of customers to restaurants. 4. Provide attractive lighting system. 5. Provide foods in more decorative way to enhance customers’ attraction. 6. Give some higher consideration and facilities to on-site eating customers like takeaway customers. 7. Try to provide combo pack or student pack for attract families and students. . Install indication board beside Ealing road side before the outlet to enhance remind for customers before see outlet and provide information of additional facilities. 9. Start some functions or entertainments, especially at Friday or Saturday to attract customers. Bibliography Ashness, D. and Lashley, C. (1995) Empowering service workers at Harvester Restaurants. 24(8), p. 17 – 32. Emerald: Personnel Review [Online]. Available at: http://www. emeraldinsight. com [Accessed: 28 October 2012]. Guardian. co. uk (2012) GDP figures show UK emerging from recession: full reaction. 25 October 2012 [Online].

Available at: http://www. guardian. co. uk/business/2012/oct/25/gdp-figures-uk-emerging-recession-full-reaction%20-%204/11/2012 [Accessed: 3 November 2012]. http://www. diabetes. org. uk/Professionals/Publications-reports-and- resources/Reports-statistics-and-case-studies/Reports/Diabetes-in-the-UK-2012/ (2012) [Online]. [Accessed: 28 October 2012]. http://www. ic. nhs. uk/pubs/opad12 (2010) [Online]. [Accessed: 28 October 2012]. http://www. oneills. co. uk/oneillsealing/ (2010) [Online]. [Accessed: 25 October 2012] Ingram, H. and Jones, S. (1998) Teamwork and the management of food service operations. 4(2), p 67-73.

Emerald: Team Performance Management [online]. Available at: http://www. emeraldinsight. com [Accessed: 28 October 2012]. Keynote (2012) Market Update 2012: Restaurants Knight, A. J. , Worsoz, M. R. and Todd, E. C. D. (2007) Serving food safety: consumer perceptions of food safety at restaurants. International Journal of Contemporary Hospitality Management, 19(6), p. 476-484. Emerald: [Online]. Available at: http://www. emeraldinsight. com [Accessed: 28 October 2012]. Kotler, P. and Keller, K. L. (2006) Marketing Management. 12thed. New Jersey: Pearson prentice hall. Kotler, P. , Makens, J. C. and Bowen, J. T. 2010) Marketing for Hospitality and Tourism. 5thed. New Jersey: Pearson prentice hall. Law, A. K. Y. , Hui, Y. V. and Zhao, X. (2004) Modeling repurchase frequency and customer satisfaction for fast food outlets. International Journal of Quality & Reliability Management, 21 (5), p. 545-563. Emerald: [Online]. Available at: http://www. emeraldinsight. com [Accessed: 28 October 2012]. Lillicrap, D. and Cousins, J. (2010) Food and Beverage Service. 8th ed. London: An Hachette. Mendez, J. L. , Oubina, J. and Rubio, N. (2006) Explanatory factors regarding manufacturer brand: Journal of Product & Brand Management, 15 (6), p. 02-411 Emerald: [Online]. Available at: http://www. emeraldinsight. com [Accessed: 28 October 2012]. Mitchell and Butler annual report 2011. Ryu, K. , Han, H. and Jang, S. (2010) Relationships among hedonic and utilitarianvalues, satisfaction and behavioral intentions in the fast-casual restaurant industry. International Journal of Contemporary Hospitality Management, 22(3), p. 416-432 Emerald: [Online]. Available at: http://www. emeraldinsight. com [Accessed: 3 November 2012]. www. mbplc. com. www. mcdonalds. co. uk Appendix: 1 – Meal Experience Check List . Physiological and Food quality Description of items |Very |satisfied |unsure |Dissatisfied |Very |Remarks | | |satisfied | | | |Dissatisfied | | |Variation of foods ( Vegetarians or| | | | | | | |diabetic) | | | | | | | |Presentation of food ( Decoration) | | | | | | | |Colour of foods | | | | | | |Taste of foods | | | | | | | |Texture of foods | | | | | | | |Temperature of foods | | | | | | | |Variation of beverage | | | | | | | |Temperature of beverage | | | | | | | |Selection of condiments e. g. alts,| | | | | | | |sauces, pepper | | | | | | | |Portion of foods | | | | | | | |Portion of beverage | | | | | | | |Consumer specific | | | | | | | |Quality of food serve | | | | | | | |General hygienic conditions | | | | | | | Economical and convenient |Description of items |Very |satisfied |unsure |Dissatisfied |Very |Remarks | | |satisfied | | | |Dissatisfied | | |Prices of foods | | | | | | | |Price of beverages | | | | | | | |convenient location | | | | | | |Special offering | | | | | | | |Outdoor catering | | | | | | | |Home delivery | | | | | | | |Past service | | | | | | | |Parking facilities | | | | | | | Service and restaurants conditions Description of items |Very |satisfied |unsure |Dissatisfied |Very |Remarks | | |satisfied | | | |Dissatisfied | | |Staff greet pleasantly | | | | | | | |Staff knowing of regular customers | | | | | | | |Staff attention to the customers | | | | | | | |Staff willing to service to | | | | | | | |customers | | | | | | | |Manger attention to customer | | | | | | | |Waiter take order properly | | | | | | | |Staff understand of the products ( | | | | | | | |special offer, prices) to select | | | | | | | |proper food and beverage | | | | | | |Staff friendly and polite | | | | | | | |Service fast and quick | | | | | | | |Staff wearing proper attire | | | | | | | |Decoration of restaurant | | | | | | | | Tidy of restaurants | | | | | | | |Tables are clean | | | | | | | |Tables arrange properly | | | | | | | |Table is enough space to keep foods| | | | | | | |Staff give correct bills and | | | | | | | |changes for customers | | | | | | | |Restaurants open hours | | | | | | | |Staff response when leave the | | | | | | | |restaurants | | | | | | | |External appearance of restaurants | | | | | | | |Interior colour of restaurants | | | | | | | |Temperature conditions in | | | | | | | |restaurants | | | | | | | |Background music | | | | | | | |Live music | | | | | | |Table decoration | | | | | | | |Type of linen | | | | | | | |Appropriate tableware | | | | | | | |Furniture conditions | | | | | | | |Arrange of tables | | | | | | | |Layout of restaurants | | | | | | | |Sign of rest room | | | | | | | |Access of disabilities | | | | | | | |Children play area | | | | | | | |Tidiness of the rest room | | | | | | | Marks Very Satisfied – 5, Satisfied – 4, Unsure- 3, Dissatisfied – 2, Very dissatisfied – 1 Appendix: 2 – SWOT Analysis for O’Neill’s Ealing. |Strengths |Weakness | |Reputed National brand and Mother Company. |In side bar lead to reluctant for family dining especially with | |Specialization of Irish foods. |children. |Performing of Live bands that not in other restaurants near Ealing |No proper parking area. | |area. |Foods price comparatively high. | |Located near the Ealing shopping complex area. |Web site not attractive. | |Bar facilities. | | |Attractive decorations and arrangement. | | |Quality service with experienced staff. | | |Provide decorative foods. | | |High clean and hygienic conditions. | |Eating out increase in UK | | |Quality certification. | | |Opportunities |Threats | |Can provide other specific menus like Chinese and Indian cuisine. |Higher number of competitive restaurants in Ealing. | |Enhance seating facilities. |Less prices foods and drinks introduce by surround restaurants. | |Healthy food e. g. diabetic |Retails group (e. g. TESCO , M & S) introduce they are own foods. | |Attraction can be improved. Majority of customers knowing specialization for Irish foods only. | |Better promotion ability. |Higher control from Mother Company leads less reaction for situation| |Emerge of UK economy from rescission. |and location. | |Showing the nutritional values in foods. |Extreme weather conditions. | |Use of new technology to contact customers. E. g Phone update |Rising of fuel and employee cost. | |Possibility to provide more innovative products. |Majority of customers cut of their eating out during the recession. | | |Increase of number of restaurants direct to price war. |

Appendix: 3 – SWOT Analysis for McDonald’s Hanger Lane. |Strengths |Weakness | |Reputed Global Brand. |Seating condition not comfortable. | |24 Hours opening. |Seating capacity very low. | |Drive through Process. |Lighting arrangement not attractive. | |No competitive restaurants nearby. |Less decorative of foods. | |Close to busy Ealing road. |Due to quick service oriented less concern of inside customers. | |Large parking area. |Holidays less vehicles use of Ealing road. | |Wi-Fi facilities. | | |Trained staff. | |Clean and tidy environment. | | |Baby changing facilities. | | |Attractive website. | | |Phone updates facilities. | | |Quality certification. | | |Opportunities |Threats | |Can increase seating capacity. Possibility of come new restaurants nearby areas. | |Concern of healthy foods. E. g Diabetic |Concern of Healthy foods. | |Introduce specific foods e. g vegetarian, Mexican. |Marketing mainly decide by Head office. | |Attraction can be improved. |Retails group (e. g. TESCO, M & S) start to introduce they are own | |Better promotion ability due to location. |cafe and foods. | |Emerge of UK economy from rescission. |Higher traffic in Hanger Lane during the busy hours, reluctant to | |Introduce of innovative products. |turn for McDonald’s. | | |Extreme weather conditions. | | | | | | Appendix: 4 – O’ Neill’s Menu. [pic] [pic] Source: O’ Neill’s restaurants menu Appendix: 5 – Photo of Decorated O’Neill’s Foods. [pic] Source: Food decoration photo taken from O’Neill’s website. Appendix: 6 – Location of McDonald’s Hanger. [pic] [pic] Source: McDonald’s Hanger lane photos taken by writer Appendix: 7 – Web page – O’ Neill’s Ealing. [pic] Source: O’Neill’s web page Appendix : 8 – McDonald’s web site with nutritional value and allergic information. [pic] Source: McDonald’s web page

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