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My Organic Restaurant

My Organic Restaurant

My Organic Restaurant


The purpose of the business plan is to establish the strategy of an organic food restaurant in Australia. The report incorporates many aspects such as the opportunities, marketing strategies, operation, and financial plans.

The business opportunity

There are many different factors which affect the opportunities of organic food market in Australia. According to Aday et al (2018), apparently the economic condition in the country is an important factor because the better economic condition will increase the household income and the purchase power. Therefore, once the economic condition improves, there will be more and more customers who are able to afford organic foods which are usually more expensive than ordinary foods. As is indicated by Trading Economics (2018), based on the economic growth of Australia, it is found out that the current GDP growth rate in the country is about 2.5% and this indicates that the economy already recovers from the crises before. Besides the economic recovery, another factor that leads to better opportunities is the changes of the social preferences for better life styles. According to Mcclure et al (2013), there are more and more people in the society who are concerned about the health problems generated from consumption of junk foods such as chronic diseases and diabetes. Many customers intend to have healthy life styles and consume foods that are organic. This is further stimulated by the fact that there are many customers who refrain from eating junk foods. Therefore, the organic restaurants would target Australian customers who are concerned about their health.

According to IBIS (2018), the restaurant industry in Australia is a $20 billion market and in the last five years the annual growth rate of the industry is about 3.5%. The growth rate of the industry is still faster than Australian GDP growth and therefore the industry is still in the process of growing. This is especially the case for the organic food industry because it is more attractive than the traditional food restaurants. There are many factors that affect the business performance in Australia. One important factor is the ability for the restaurant to control costs. According to IBIS (2018), the cost control allows companies to reduce operational cost and improve the profit margins, so that it is easier for the company to compete with others. Furthermore, another important success factor affecting the restaurant is the ability to have sufficient amount of employees who have diverse backgrounds and they are able to attend to the needs of customers coming from foreign countries. With the fast process of globalization in the world, there are many foreign customers visiting Australia and it is critical for the company to have employees who are able to address the demands of these foreign customers.

The sales and marketing strategy

Sales and marking strategies are used to make sure that the company has good performances in terms of products, price, promotion and place. As is indicated by Magnini et al (2010), the product can be divided into three levels. In the core product level, this new business allows customers to feed themselves and to quench hunger. This is the basic demand that customers have. In the second level, the product includes quality, style, and branding. The quality of the product is superior to others as all the materials are resourced from local farmers fresh without any artificial ingredients. This would relieve customers of the concern about the transgenic foods. Furthermore, the style of the food is that it is cooked with very healthy process and ingredient and it is also served carefully with stylish dishes. The branding is also a very important factor because the company intends to become a famous brand among customers. In the third level the service and delivery are important. The service quality is enhanced as all customers have diverse backgrounds to understand different customer demands and they are also trained to have good etiquettes. The delivery is completed through in store consumption or online purchase.

The pricing strategy which is used in this case is the premium pricing. As is indicated by Lee et al (2014), there are three types of pricing strategies and the premium pricing frequently leads to higher than normal prices. This is because the product quality is better than qualities of other products so that the customers are willing to pay for higher than normal prices for the products. The benefit of the premium pricing strategy is that it would allow the company to generate higher than normal profit margin. However, this also generates weaknesses and one of them is that the higher price would lead to lower demand.




Aday, J et al 2018, 'Deals inside: examining restaurant operators’ motives when choosing whether to offer a flash-sale', Journal of Foodservice Business Research, 09 March 2018, p.1-22

Di C et al 2018, 'The Emergence of Industrial Marketing Management as the Leading Academic Journal in Business-to-Business Marketing', Industrial Marketing Management, February 2018, Vol.69, pp.5-12




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