Running head: BUSINESS VULNERABILITY 1

BUSINESS VULNERABILITY

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Restaurant Vulnerability

Introduction

Business continuity is a primary concern for entrepreneurs, whether in small and in big
business. An effective business continuity system enables an organization to offer convenient
services to customers and maintain a good reputation. Business continuity is guaranteed when
there is increased consumer satisfaction, relatively high-profit margin, more natural brand
expansion, better response to marketing promotions and advertising, increased demand and a
high degree of customer loyalty. A proper crisis management strategy is required to ensure the
continuity of a business. Crisis management involves taking care of the unexpected
circumstances that disrupt the organization processes or stakeholders. Management of crisis
involves prevention, preparation, response and practising proper responses. The prevention and
preparation include identifying relevant potential disasters, developing evacuation programs for
the staff, procuring spare machines and servers, performing data backups and arranging off-site
storage, provisions for running the business remotely, assigning responsibilities for specific
activities, conducting drills, educating employees and improving vigilance across an
organization.

The business process consists of factors such as buildings, suppliers, timescales, systems
and processes partnerships and other people. All these factors affect the consumption of
products, that is, customer satisfaction and market. Consumer trust and loyalty, especially in the
food industries, can be affected by a minimal mess which could lead to the closure of a business.
Among the significant company where management of the crisis is a crucial activity is
restaurants. The types of the crisis affecting restaurants are significant workplace accident,
negative media campaigns, market upheaval, and power/fuel outage, loss of
IT/telecommunications infrastructure (connectivity, server crash, and viruses), transport
infrastructure issues, supply chain breakdown/disruptions and loss of employee base. Therefore,
to ensure business continuity, the restaurants must secure safe and alternative supply of raw
materials and key ingredients from multiple suppliers, enhance traceability in the event of
significant risk issues. It also reduces food fraud incidences in the supply chain, manage the
press and social media after serious events (product recalls, on-site accidents and environmental
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incidents). This paper addresses the vulnerability of restaurants and the ways of maintaining the
continuity of restaurants putting into consideration the above factors.

Restaurant vulnerability

Buildings

The food industry is susceptible, and the physical environment where the business is
operating from significantly affects customer satisfaction and the market. The physical
environment includes building designs, layout, decoration, aesthetics, lighting and ambience.
This factor affects customer loyalty, preference, leadership and image. The physical environment
of a restaurant determines its value and the people who access it. The more captivating the
environment, the higher the value of the restaurant and the more high profile clients will visit the
place. Bowden (2009) states that this guarantees the returns in terms of profit margin, customer
satisfaction and customer loyalty, which in return affects business continuity positively. Notably,
customers observe the environment before deciding on selecting a particular restaurant over the
other. Secondly, there is increased competition in the food industry in terms of building designs,
and it's the role of the management to improve its models to maintain and attract new customers.
Modernity has a competitive advantage in attracting customers. Thirdly, food industries should
maintain a high level of hygiene since most customers do not want to risk their health. From
observation, restaurants operating in clean, well sanitized and well-positioned buildings receive
more customers.

Most of the restaurants have entered the global markets and its essential to check on
factors that will attract customers. For global restaurants, the management should ensure that the
target market is excited by the outward appearance of the business. For instance, if the restaurant
prepares cultural meals, the building should have some cultural properties to attract people who
are interested in originality. Global restaurants should be able to capture the taste and preferences
of their potential customers and adjust to it. This step will ensure that old customers maintain
their loyalty and new customers are attracted. Also, Gupta (2012) recommends that restaurants
should be adapt to new cultures and trends in the industry when it comes to buildings to ensure
that modernity is maintained.

Suppliers
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Suppliers contribute a significant part in the food industry for items such as unprocessed
foods, packaging services and restroom supplies. Since a single supplier works with many
restaurants, he may not maintain the expected negotiations. It is therefore essential for a
restaurant to leverage the suppliers and keep some good bargaining power to thrive in the
industry. An increase in the prices for supplies means an increase in the costs of the products
sold in a restaurant which affects the customers turn up. Where the prices of commodities
increase in only one restaurant, the customers will visit only other restaurants. To maintain the
competitive advantage the managers should ensure the supplies are not overcharged to avoid
hiking the product's prices. The availability of supplies also plays a vital role in the functionality
of organizations. Since suppliers deal with many buyers, they may not deliver the expected
products on time and in the expected quantities. This factor affects the availability of foods in
restaurants. The reliability of foods in a restaurant maintains customer loyalty which ensures
business continuity. The restaurant management should pick up contact with several suppliers for
each commodity such that if one supplier fails, the other one is expected to deliver, (Bowden,
2009).

The supply chain is affected by several factors such as the bargaining power of buyers, the threat
of substitutes, industry rivalry and barriers to entry. The higher the power of suppliers, the higher
the profits in the food industry, thus business continuity. When suppliers reduce the quality of
products, the quality of products served in the restaurant also reduces thus leading to reduced
turn of customers. This affects the profits negatively, which could eventually lead to the
discontinuity of products. Lastly, the brand recognition of a supplier may affect the rate at which
consumers visit a restaurant. Where the brands are well known, more customers are available
hence increasing the turn over which in return affects the business continuity positively.

Systems and processes

Food Industry is a noble industry. This industry is basically an amalgamation of a host of

other sectors as well. The food industry includes all the food producers, the food manufacturers,
packers, cooks, food and beverage companies etc. Therefore, there is no doubt about the fact that
the food industry is quite huge. Hence, the food industry has always been one of those industries
which require the latest technology to automate and grow. The systems and processes being used
in a restaurant should be up-to-date and should be reliable. They should also be user friendly and
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convenient for both old and new users. Reliability of systems attracts more customers. This
factor affects the profitability hence ensuring business continuity. For instance, where restaurants
admit cashless methods of payment, many consumers tend to go there because cashless payments
are more convenient. Gupta (2012) states that there is a huge space which is not fully utilized on
every day of the week which could be used to expand by using that money to other places instead
of allowing people to sit and eat food. According to Bowden (2009), restaurants with only
backend operations make efficiency and monetary sense.

Also, restaurants offering delivery services are likely to attract more customers since they
can purchase and enjoy foods in the areas of their convenience. Currently, most customers are
using ordering applications to place their orders. Notably, many restaurants no longer have a
physical place to eat, saving on costs for space and hiring wait staff. Basically, an app which
obviously has the usual services of delivering people from one place to another (Go-Ride & Go-
Car) just like Uber; but with lots of other variants of services like Go-massage, go-clean, go-box,
go-tix (tickets) and much more. Also, it partners with almost every food provider in each city,
from global fast-food chains like McDonald's and Burger King to your local street food vendors.
However, some applications contain commissions, a processing fee, delivery fee, and phone fee
and the restaurant end up getting negative reviews, which affect your orders. This affects the
customer's loyalty which affects the productivity of a business leading to the discontinuity of the
company. Hence, the restaurant management should be very cautious when determining the
applications to use in the market.

The systems used in hiring and firing employees in the food industry should be
standardized. When employees are qualified for the services they are offering, they offer the best
services to clients, this satisfying the customers’ tastes and preferences. This system increases
the customer's loyalty hence increasing the turnover, which positively affects business
continuity. As for staffing, training is the key, the way it was in the 70s and 80s. Practice at most
all chains has stopped, and that leaves staff frustrated, turnover is higher, and service suffers. I
see the trend as simple menus instead of shotgun menus.

Partnerships

Several partnerships need to be created in the food industry for it to function effectively.
The significant connections that exist are with the government, suppliers, consumes, information
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technology and other sectors. For instance, suppliers have to link up with restaurants to ensure
that they can supply all the products needed by the customers. This ensures that customers gain
confidence in the hotel, thus sustaining their attendance which in return maintains the profits,
thus ensuring business continuity. Restaurants must maintain a healthy relationship with the
government by following the rules and regulations in the in which they are operating. For
restaurants serving globally, they must also ensure they follow the requirements of the country
they reside in by working within limits indicated, and directions are given, (Muller, 1994).

The food industry requires a lot of support from the technology firms because almost all
restaurants involve some technological advancements in their day-to-day operations (Bowden,
2009). Failure to create a good connection with such firms leads to inefficiency in the services
received by customers which in return leads to dissatisfaction of customers which destroys the
restaurant's reputation. This affects business turnover, which adversely affects business
continuity. Lastly, the food industry needs to maintain a sustainable partnership with the
transport industry since most restaurants depend on those means for delivery of products.
Without a good relationship and proper training on how to handle customers, the personnel
involved in transport might not meet the customer's expectations or meet the tastes and
preferences. This affects the restaurant's reputation, thus leading to reduced turn up, which
negatively affects the profit, which may cause the business to stop.

Timescales

Restaurants should learn to take advantage of the benefits that come with time. For
instance, they should take advantage of the application delivery systems before they are outdated
to ensure customers do not run to other restaurants. Delivery is unsustainable for Restaurants and
for the delivery companies themselves most are not profitable and have all have failed to build
any loyalty amongst consumers. If not for investor cash (which is drying up BTW) deliver as we
know will be dead without all the promotions of free delivery, food, etc. People, for the most
part, won't use them, investors want to see a return now, and they are starting to see there isn't
going to be one. Muller (1994) states that during the period, the delivery systems last, adapting to
such systems ensures business continuity. Lots of new predictions and accurate insights but daily
pay has to be the most fascinating to all restaurants. Seems like a thing that should have
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happened a long time ago, that restaurant owners can attract talent with this benefit. The idea that
people get paid once a month is bonkers the more you think about it.

The hours of operation for a restaurant also affect the continuity of the business. A
restaurant that is very active during the rush hours is likely to attract more customers because it
is operating at the convenience of the consumer. Therefore, to enhance business continuity,
restaurants should ensure they master the best time of their consumers and exploit the
opportunity fully. This fact significantly applies to restaurants operating globally and more so
those who deal with tourists. Managers should ensure that during the high seasons for tourism
activities, restaurants operate to their full capacity to reap maximum benefits hence ensuring
business continuity.

Conclusion

Putting the above factors into consideration the business continuity will be maintained.
All businesses dealing with service providers must ensure that customer’s tastes and preferences
are met. Customer satisfaction can be used as a reliable measure of quality. Hence it is not an
option to the restaurant but a necessity. However, it cannot be perfect every day. It's a useful skill
to be able to read a customer's body language and facial expressions. The vast majority of
bothered and angry customers are silent and won't speak up. When this happens, the involved
should approach them no matter where they are waiting at inside or out front and ask them their
name and how long they have been waiting and let them know how they are going to solve the
issue. This method has always worked for most restaurants. It makes them feel noticed and
assured that the problem will be handled. Some restaurants have a big issue with food wait times
(due to everything being made to order and being a lunch hotspot the times get backed up. So
this is a crucial technique to teach every employee and even cooks.

The food industry is an industry that has significant establishments that should be
followed carefully since failure to monitor results in closure of such the business. Restaurants are
vulnerable to closure. Managers should focus on courses designed for restaurant owners and
restaurant operators looking to increase their sales, improve restaurant profits, and open up
additional restaurant locations.
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References

Bowden, J. (2009). Customer engagement: A framework for assessing customer-brand

relationships: The case of the restaurant industry. Journal of Hospitality Marketing &
Management, 18(6), 574-596.

Gupta, V. K. (2012). Flexible strategic framework for managing forces of continuity and change
in supply chain management of fast food (quick service restaurant)
industry. International Journal of Business Continuity and Risk Management, 3(2), 148-
166.

Muller, C. C., & Woods, R. H. (1994). An expanded restaurant typology. Cornell Hotel and
Restaurant Administration Quarterly, 35(3), 27-37.

Scharpf, F. W., & Schmidt, V. A. (Eds.). (2000). Welfare and Work in the Open Economy:
Volume I: From Vulnerability to Competitivesness in Comparative Perspective (Vol. 1).
OUP Oxford.