Analyzing the Viability of Establishing a Vietnam- Ese Integrated Dining Restaurant in Helsinki
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Analyzing the viability of establishing a Vietnam- ese integrated dining restaurant in Helsinki Thuy Vo Bachelor’s Thesis Degree Programme in IB 2021 Author(s) Thuy Vo Degree programme GLOBBA Report/thesis title Number of pages and Analyzing the viability of establishing a Vietnamese integrated din- appendix pages ing restaurant in Helsinki 6 + 2 As the largest continent in the world, Asia is filled with different cultural tastes and tasty dishes. In recent years, by calmly, openly and encouragingly embracing the Asian cultures, Asian food and Asian-inspired foods are making a hug impact on Finnish consumers. For instance, the K-Market – one of the biggest grocery chains in Finland, is selling “Vietnamila- iset patongit” (Vietnamese baguettes) daily. Before the crucial world-wide financial impact caused by the Covid-19 pandemic, the HoReCa industry in Finland is going steadily with a pace of more than 4% every quarter. Helsinki, the capital of Finland, is become a tourism hub for its diverse food cultures, espe- cially Asian cuisines. Despite the growing trend of Vietnamese restaurants opening in Hel- sinki, the author observed that there is still missing the soul and scene of Vietnamese au- thentic food experience being integrated with Nordic proper dining culture. By opening his own restaurant, the author believed that his project will be able to fill in the gap and elevate the current Vietnamese dining experience in Helsinki. This thesis is product-oriented, which aims to establish a viability business plan for the au- thor’s upcoming restaurant project in March 2021. The restaurant is located in Vallila District in Helsinki. The idea is that the restaurant will serve Vietnamese unique authentic dishes with Asian mixed cocktails and beverages. This bachelor thesis is structured with two main parts: • The theoretical part, presenting the approach of research methodologies and the lit- eratures review for establishing a business plan, as well as the study of authentic Vietnamese food culture and Finnish proper dining experience. • The empirical part, serving as the actual business plan for the author upcoming res- taurant which is based on the business plan framework and the author specialisation in finance. The qualitative method was utilized during this research process. The analyse of potential customer segmentation and the demand of target customer segments were concluded by the author’s ethical observation. The research of current business environment and industry was delivering by the author competitor research. Keywords Market analysis, SWOT analysis, funding calculation, sales forecast, profitability, breaK-even point Table of contents 1 Introduction ................................................................................................................... 1 1.1 Problem statement and limitations ........................................................................ 1 1.2 Structure of the thesis ........................................................................................... 2 1.3 Project scope and International aspect ................................................................. 3 1.4 Benefits and Risks ................................................................................................ 4 2 Key concepts ................................................................................................................ 4 2.1 Food cultures ........................................................................................................ 4 2.1.1 Food and Cultures ..................................................................................... 5 2.1.2 Finnish Food Culture .................................................................................. 5 2.1.3 Vietnamese Food Culture .......................................................................... 7 2.2 Proper restaurant dining service ......................................................................... 11 2.3 Vietnamese restaurants blooming in Helsinki ...................................................... 16 3 Business Plan development ........................................................................................ 16 3.1 Business plan purpose ........................................................................................ 17 3.2 Business plan definitions..................................................................................... 17 3.3 Business market and environment analysis ........................................................ 17 3.3.1 Industry overview ..................................................................................... 17 3.3.2 Restaurant marKet trend .......................................................................... 19 4 Financial Plan Development........................................................................................ 20 4.1 Definitions ........................................................................................................... 20 4.2 Investment and cost calculations ........................................................................ 21 4.3 Profitability calculation ........................................................................................ 21 4.4 Statement of cash flows ...................................................................................... 22 4.5 The actual business plan financial calculations ................................................... 22 5 Permits and other notifications .................................................................................... 25 5.1 Food Safety ........................................................................................................ 25 5.2 Company establishment ..................................................................................... 26 5.3 Restaurant permits.............................................................................................. 26 5.4 Contractual insurances ....................................................................................... 26 6 Research Methodology ............................................................................................... 26 6.1 Qualitative research method ............................................................................... 28 6.2 Ethical considerations ......................................................................................... 29 7 Research Findings ...................................................................................................... 29 7.1 The Food ............................................................................................................ 30 7.2 The Menu Offer ................................................................................................... 30 7.3 The Ambience and Atmosphere’ ......................................................................... 31 7.4 The customer services ........................................................................................ 32 8 Conclusion .................................................................................................................. 32 8.1 Assessment of the thesis .................................................................................... 32 8.2 Summary and Recommendations ....................................................................... 33 9 Bibliography ................................................................................................................ 34 10 Appendices ................................................................................................................. 37 Figure 1. Business Plan Structure ..................................................................................... 3 Figure 2. The Consumption of Meat per Capital (Andersen, et al., 2018) ........................... 6 Figure 3. The Consumption of Milk Product per Capital (Andersen, et al., 2018) ............... 7 Figure 4. Vietnamese housewives selecting raw vegetable at the early local marKet (Traveling Spoon, 2020) .................................................................................................... 9 Figure 5. Vietnamese diet (Nguyen, 2012)....................................................................... 10 Figure 6. Basic Vietnamese family sharing meal (Báo Sơn La Điện tử, 2016) ................. 10 Figure 7. Restaurant's service procedures established (Pennette & Keyser, 2015) ......... 12 Figure 8. Fundamental aspects of customer service ........................................................ 14 Figure 9. Vietnamese Restaurants in Helsinki establishment record ( Fonecta, 2021) ..... 16 Figure 10. Revenue of restaurant and mobile food service activities industry in Finland (in million U.S. dollars) (Haaga-Helia, 2021) ......................................................................... 18 Figure 11. The interest in product and service categories (in million U.S. dollars) (Heinzelmann, 2008) ....................................................................................................... 18 Figure 12. Forecast of the total consumer spending on restaurants & hotels in Finland from 2010 to 2025 (in million U.S. dollars) (Haaga-Helia, 2021) ...................................... 19 Figure 13. Finns food trend (Haaga-Helia, 2021) ............................................................. 20 Figure 14. The operating profit (Farris, et al., 2010) ......................................................... 22 Figure 15. The return on Investment (ROI) (Farris, et al., 2010)