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Strengthening the Position of the Vegan Restaurant Souls 4000 Roskilde Supervised by Lone Samuelsson

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Strengthening the Position of the Vegan Restaurant Souls 4000 Roskilde Supervised by Lone Samuelsson Roskilde University Business studies, Autumn 2016 Universitetsvej 1 Strengthening the position of the vegan restaurant Souls 4000 Roskilde Supervised by Lone Samuelsson Strengthening the position of the vegan restaurant Souls Number of Characters: 222.829 Supervised by Lone Samuelsson Written by: 61475 Maria Abben 59691 Anca Andreicut 59600 Daniels Drinkis 60904 Anna Gkioka 53033 Ida Nicole Mølgaard 61470 Tinie D. F. Olsen 54665 Lea Trylcova Strengthening the position of the vegan restaurant Souls Abstract The following project contains an investigation of the case study of a vegan restaurant called Souls located in Copenhagen, focusing on strategies on how to strengthen their position on the Danish market as well as a possible expansion to the Roskilde municipality. This investigation includes the analysis of the restaurant’s position using the collection of empirical data gathered from the owners of the restaurant, existing customers of the restaurant and the poten- tial customers of the restaurant from the area of Roskilde. The project is structured into several parts in order to build up the methodology and theoretical framework first, and then using this knowledge for the analysis of the position of the restaurant in Copenhagen as well as their potential to enter the market in Roskilde. Lastly, in the discussion, we argue for both the benefits and drawbacks of this expansion and we list the suggestion for implementing several strategies on how to expand and strengthen the position of Souls on the Danish market. Summary in Slovak Nasledujúci projekt obsahuje prieskum prípadovej štúdie vegánskej reštaurácie nazvanej Souls, ktorá má lokalitu v Kodani, so zameraním na stratégie ako posilniť ich pozíciu na Dánskom trhu a tiež možnú expanziu do mestskej samosprávy Roskilde. Tento projekt obsahuje analýzu pozície tejto reštaurácie použitím zbierky empirických dát zhromaždených od vlastníkov reštaurácie, existujúcich zákazníkov reštaurácie a potencionálnych zákazníkov reštaurácie z okolia Roskilde. Projekt je štruktúrovaný v niekoľkých častiach, aby bolo možné najprv vybudovať metodológiu a teoreticky rámec a potom použitím tejto znalosti spraviť analýzu pozície reštaurácie v Kodani a taktiež ich potenciál vstúpiť na trh v Roskilde. Nakoniec argumentujeme v diskusii za výhody a nevýhody tejto expanzie a menujeme sugescie na realizovanie niekoľkých stratégii na tému ako expandovať a posilniť pozíciu Souls na Dánskom trhu. Page 2 of 120 Strengthening the position of the vegan restaurant Souls Table of contents 1. Introduction ...................................................................................................................................... 5 1.1. Motivation ................................................................................................................................. 5 1.2. Problem Formulation ................................................................................................................. 6 1.3. Background of the Souls restaurant........................................................................................... 6 1.4. Project Structure ........................................................................................................................ 7 2. Methodology .................................................................................................................................... 8 2.1 Philosophy of Science ................................................................................................................ 8 2.2 Mixed Method Approach ......................................................................................................... 10 2.3 Qualitative Research Method - Qualitative Research Interview .............................................. 11 2.4 Quantitative Research Method ................................................................................................. 13 2.4.1. The online survey ............................................................................................................. 13 2.4.2 The Structured Interview ................................................................................................... 16 2.5 Limitations of results ................................................................................................................ 18 2.6 Presentation of the quantitative research results ...................................................................... 20 2.6.1 Results of Quantitative Research Method •- The Survey .................................................. 20 2.6.2. Results of Quantitative Research Method •- The Structured Interview ........................... 24 3. Theoretical framework ................................................................................................................... 28 3.1. Target market .......................................................................................................................... 28 3.2. Competitive strategies: Porter’s 5 forces................................................................................. 30 3.2.1. Customers ......................................................................................................................... 30 3.2.2. Competitors ....................................................................................................................... 34 3.2.3. Substitutes ......................................................................................................................... 36 3.2.4. Suppliers ........................................................................................................................... 36 3.2.5. New entrants ..................................................................................................................... 36 3.3. Business model canvas ............................................................................................................ 37 3.4. SWOT ...................................................................................................................................... 39 3.5. Growth strategies ..................................................................................................................... 40 4. Analysis .......................................................................................................................................... 41 4.1. Prospects of growth in the vegan market in Denmark ............................................................ 41 4.2. Souls’ positioning in Copenhagen ........................................................................................... 43 4.2.1. Target Market - Copenhagen ............................................................................................ 43 4.2.2. Souls’ customers in Copenhagen ...................................................................................... 46 Page 3 of 120 Strengthening the position of the vegan restaurant Souls 4.2.3. Bargaining power of suppliers .......................................................................................... 59 4.2.5 Substitutes .......................................................................................................................... 72 4.2.6. Threat of New Entrants ..................................................................................................... 74 4.2.7 Sub-conclusion .................................................................................................................. 76 4.3. Souls’ potential of entering the market in Roskilde ................................................................ 77 4.3.1. Target market - Roskilde .................................................................................................. 78 4.3.2. Business model canvas for Souls’ new restaurant in Roskilde ......................................... 80 4.3.3. Competitors ....................................................................................................................... 97 4.3.4. Substitutes ....................................................................................................................... 104 4.3.5. Sub-conclusion ............................................................................................................... 105 5. Discussion .................................................................................................................................... 106 5.1 Expansion in Denmark ........................................................................................................... 107 Strengthening the experience ....................................................................................................... 110 6. Conclusion ................................................................................................................................... 113 7. Bibliography ............................................................................................................................. 114 Page 4 of 120 Strengthening the position of the vegan restaurant Souls 1. Introduction This project investigates the case study of a vegan restaurant called Souls, located in Copenhagen. Our awareness of the topic veganism was initiated by the boom of raw, organic and vegan options in the stores and restaurants we, as students living in Denmark, noticed in the recent years. In Den- mark, the average citizen eats 52 kilograms of meat per year, this counts that men consume approx- imately 64 kilograms of meat yearly, opposed
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