Opening a Restaurant

Opening a New Restaurant

You and your partners have decided to open a large, full-service restaurant in your local community; it will be open from 7 a.m. to 10 p.m. to serve breakfast, lunch, and dinner. Each of you is investing $50,000 in the venture, and together you have secured a bank loan for $300,000 more to begin operations. You and your partners have little experience in managing a restaurant beyond serving meals or eating in restaurants, and you now face the task of deciding how you will manage the restaurant and what your respective roles will be.

1. Decide what each partner’s managerial role in the restaurant will be. For example, who will be responsible for the necessary departments and specific activities? Describe your management hierarchy.

Due to the fact that my partner and I don’t acquire the knowledge or experience to efficiently and appropriately run the restaurant alone, we will have to hire personnel to assist us. Of course my partner and I will hold positions in the top-team management and focus more on the overall business functions and progressions of the restaurant. I will also take the position of top manager since we are financially limited. The middle manager will monitor the supervisors and how the departments are interacting and report to us. My partner and I will both try to come up with ways to make sure the restaurant works efficiently and effectively but I will primarily focus on the marketing and sales aspect of the company while my partner focuses on the supervision of the materials and manufacturing endeavors; we will be constantly seeking advice and consult from experienced resources to aid us with our decisions. The supervisor will monitor each department; the kitchen, front counter, etc…, and report to the middle manager. The rest of the staff will be hired for specific positions and are responsible for their tasks.

2. Which building blocks of competitive advantage do you need to establish to help your...