COMPETITIVE ANALYSIS
Industry Overview
Market share:
Estimation of total amount of goods sold in geographical area from the following companies: Carl’s Jr., Green Burrito, Chick-fil-A, McDonald's, Whole Foods & Subway = around $1 million estimated goods sold (only including specific menu items like salads and things directly competing with City Salads in this geographical area.) Ratio of total goods provided by City Salads to total number goods: If annually, in our market area, people spend a total of $100,000 million on goods similar to City Salads product, and if our business does $500,000 annually in sales, (assuming we sell 250 salads a day at 8 dollars * by a month and then * yearly = estimated $576,000 yearly gross profit, being open 7 days a week, not including beverages and add-on's), then we have a 50 percent market share.
Number of customers expected:
Population estimation based on renters/homeowners and local business employees in our defined geographical area: 24,276 renters/homeowners +30,000 estimated business employees based off businesses and customers in our 2 block radius which equal 54,276. Estimated potential customers in our Target Market Area: if we estimate that 5% of above mentioned individuals are interested in City Salads, we assume around 2,750 customers are at our disposal.
(http://www.city-data.com/zips/84115.html)
Estimation of total amount of goods sold in geographical area from the following companies: Carl’s Jr., Green Burrito, Chick-fil-A, McDonald's, Whole Foods & Subway = around $1 million estimated goods sold (only including specific menu items like salads and things directly competing with City Salads in this geographical area.) Ratio of total goods provided by City Salads to total number goods: If annually, in our market area, people spend a total of $100,000 million on goods similar to City Salads product, and if our business does $500,000 annually in sales, (assuming we sell 250 salads a day at 8 dollars * by a month and then * yearly = estimated $576,000 yearly gross profit, being open 7 days a week, not including beverages and add-on's), then we have a 50 percent market share.
Number of customers expected:
Population estimation based on renters/homeowners and local business employees in our defined geographical area: 24,276 renters/homeowners +30,000 estimated business employees based off businesses and customers in our 2 block radius which equal 54,276. Estimated potential customers in our Target Market Area: if we estimate that 5% of above mentioned individuals are interested in City Salads, we assume around 2,750 customers are at our disposal.
(http://www.city-data.com/zips/84115.html)
Nature of Competition
Our product is very unique to the Salt Lake City valley. Because the fact that there is so little competition for City Salads, we are creating a new kind of market catering to a certain dining niche. There will always be some form of competition, despite how small it may be in this case, due to our specific dining niche. These competitors, both direct and indirect are listed below.
Changes in the Industry
Remember cupcakes, bacon and food trucks? Those are becoming less and less appealing research shows. Not that the tastes of last January’s trend blogs are over but they are kind of like overripe bananas or day-old baguettes: not quite so hot-and-fresh anymore. So what’s new for 2013? Fortunately, a slew of smarter, healthier options are appearing on restaurant menus and on market shelves. Consumer trends show our shopping, cooking and diet patterns are changing too, all in the direction of City Salads values.
http://www.eatingwell.com/food_news_origins/food_news/10_top_food_and_health_trends_in_2013
http://www.eatingwell.com/food_news_origins/food_news/10_top_food_and_health_trends_in_2013
Primary Competitors
Direct Competition:
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Indirect Competition:
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Competitive Products/Services
Direct Competition:
Despite the Direct Competition listed above, there are actually no limited or full service restaurants that would directly compete with our product.
Despite the Direct Competition listed above, there are actually no limited or full service restaurants that would directly compete with our product.
Opportunities
Market entry Barriers:
Window of opportunity to enter the market:
The late winter/spring season is the perfect time for City Salads to open its doors. With a fresh optimistic and health conscious populous looking for ways to meet their new year’s resolution goals, opening our doors at this time seems only logical. The overall trend is that the restaurant business is growing rapidly and in ten years Utah is projected to add over 14,000 jobs in the restaurant industry. This is the optimal time to enter the market.
(http://www.restaurant.org/Downloads/PDFs/State-Statistics/utah)
- Quality labor/employees
- Trying to stay up to date on the GRA changes
- Weather may limit access to our restaurant at times (maybe look into delivery with a minimum purchase requirement.)
- Funding in general is a major opportunity.
- Trying to find substantial investors who will not try to step into ownership roles will be challenging.
- Brainstorming whether or not to seek out investors or business loans, or possibly a combination of several options will need to be decided.
- Creating a successful marketing campaign in order to position City Salads favorably will be a massive barrier.
Window of opportunity to enter the market:
The late winter/spring season is the perfect time for City Salads to open its doors. With a fresh optimistic and health conscious populous looking for ways to meet their new year’s resolution goals, opening our doors at this time seems only logical. The overall trend is that the restaurant business is growing rapidly and in ten years Utah is projected to add over 14,000 jobs in the restaurant industry. This is the optimal time to enter the market.
(http://www.restaurant.org/Downloads/PDFs/State-Statistics/utah)
Threats and Risks / S.W.O.T Analysis
Strengths (Internal)
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Weaknesses (Internal)
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Opportunities (External)
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Threats (External)
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Summary:
The healthier, modern style has proven to be very successful on the East coast. As healthier eating has become a new trend, statistics show this will continue to become a more important element in the food serving industry. Tough economic times could mean less people eating out but we are optimistic and have tailored our projections extremely conservatively.
The healthier, modern style has proven to be very successful on the East coast. As healthier eating has become a new trend, statistics show this will continue to become a more important element in the food serving industry. Tough economic times could mean less people eating out but we are optimistic and have tailored our projections extremely conservatively.