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Case Study: Major Segments And Purchasing Behavior

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Major Segments and Purchasing Behavior
Major Segments – The Cili restaurant I a lot like the current model of Eddie rockets or Milano chain. It Features a nice themed atmosphere where cutomsers are seated and are shown a menu of a certain type of cuisine, In this case Italian mixed with Eastern European. This segment is where higher prices are expected in return for a quality experience. The full service restaurant segment is most at risk from a recession due to its cost for the consumer and business alike.
Purchasing behavior – Most influencing factor determining where to shop when comparing prices for Restaurants, take-aways and hotels.
Key influencing factors to determine where to shop
Macro analysis - P.E.S.T

• Political – The current tax rate for Restaurants …show more content…

• Realize and establish a strategy of one store per year.
Mission –
• Establish in a Middle working class area, preferably in North Dublin / city centre with high footfall.

Start-up costs

These have been discussed by email with the current “Cili pica” General Manager Initial
• Franchise Fee – 20.000€
• Initial Marketing Expenses – From 1,500€ to 4.500€
• Kitchen and Bar equipment – From 40.000€ to 50.000€
• Construction, repair, engineering work of the premises – From 50.000€ to 80.000€ (These costs might be much lower if premises are already prepared and only minor constructions are needed)
• The restaurant interior and furniture – From 30.000€ to 55.000€
• Initial working capital needed – From 8.500€ to 15.000€
• Advertising signs – From 4.500€ to 6.000€
• Other (unexpected) expenses – From 10.000€ to 15.000€

Therefore in TOTAL we get an investment approximately from 165.000€ to 245.000€ for a fully operating restaurant.
Nevertheless, these are only estimate numbers for a 250-300 sq.m. Restaurant in Lithuania. Probably the costs break-down would be totally different for

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