In the current economic situation, opening a new business is one, which comes with increased risk, and there are only a few industries where it may make sense to do so. Current performance by McDonalds has indicated that there is a demand for cheap convenient food and this is something my idea would seek to capitalize on. My idea is to open a Pockets restaurant in Riyadh, which is a healthy fast food restaurant serving sandwiches and salads. This business plan highlights the areas that would need to be considered to put the idea into practice.
The fast food market is one, which has experienced continued demand for products in the recession, which is highlighted with McDonald’s quarter 1 profits and this provided the basis for my idea. Reuters reported that, “McDonald's Corp posted a 3.5 percent increase in quarterly profit on Wednesday, as sales at established restaurants rose despite a recession” (Reuters, 2009).
What we are seeing is that “consumers have cut back on their spending and look for a less-expensive alternative to sit-down restaurants” (Reuters, 2009). Consumers are also holding off on purchasing expensive items such as new cars or watches. At the same time we are in a world where people have become more and more concerned about the nutritional value of their food. With this in mind and people looking for great value for their dollar, this is where I see an opportunity to open a new business.
I believe that the idea of a healthy fast food restaurant will succeed because over the year’s customer trends have changed, as have their choices. If we look at McDonald’s menu, they have adapted this to include salads amongst other healthier products. People can become tired of the same brand and the timing of offering a new healthy fast food alternative is good.
I think it will be important to highlight the healthy aspect to the menu that will be offered. People in the Middle East love to eat and the fast food...