What are the key steps to determine how the surrounding restaurants can impact your business?


View the Week 2 Scene 1 and Week 2 Scene 2 scenarios. From the scenarios, Lena explained to Chris and Erica that they need to determine how the surrounding restaurants in their selected location can impact their business. Suggest key steps they should take to make this determination, and recommend at least three (3) strategies they can use to differentiate their business from the other restaurants.


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In the restaurant industry, competition is fierce and businesses need to constantly adapt to stay ahead of the game. To do this, it’s crucial to analyze the market and the surrounding area to determine how competitors may impact your business. This is exactly what Lena advised Chris and Erica to do in Week 2 Scene 1 and Week 2 Scene 2.


Lena prompted Chris and Erica to determine how other restaurants in the area they had selected could impact their new business. So, how can they go about doing this? Firstly, conducting market research is essential. This involves analyzing the types of cuisine that other restaurants in the area serve, their pricing, their target market, and their marketing strategies. By gaining a clear understanding of what their competitors are offering, Chris and Erica can look for ways to differentiate their business and offer something that sets them apart.

For example, they could look into offering a unique dining experience or specializing in a particular type of cuisine. Secondly, they could focus on their branding and marketing strategy to differentiate themselves. Through effective branding and targeted marketing efforts, they can ensure that their restaurant is visible to their target market and stands out from the rest. Lastly, prioritizing excellent customer service can also make a considerable difference. By providing an exceptional experience for their customers, word-of-mouth will travel and their reputation will precede them.

Overall, to find success in the restaurant industry, it’s important to understand your competition, identify your unique selling point, and execute a well-thought-out marketing and branding strategy.


– Understand the importance of determining the impact of surrounding restaurants on a business
– Identify key steps to take in order to determine the impact of surrounding restaurants on a business
– Discover strategies that can be used to differentiate a business from other restaurants in the surrounding area

Learning Outcomes:

After completing this section, learners will be able to:

– Define the role of surrounding restaurants in impacting a new business
– Determine key steps to take in order to study the impact of surrounding restaurants on a new business
– Evaluate at least three strategies that can be used to differentiate a business from other restaurants in the surrounding area

Steps to Determine the Impact of Surrounding Restaurants on a Business:

1. Conduct a Competitive Analysis: Research the surrounding restaurants and analyze their offerings. This will help in determining the target audience and identifying gaps in the market that your business can fill.
2. Determine the Foot Traffic: Analyze the foot traffic patterns around the area where your business will be located. Consider the times of day and week when people frequent the area and the volume of traffic. This will help in making decisions on things like operating hours and marketing efforts.
3. Conduct Market Research: Consider conducting surveys and focus groups to gather feedback from potential customers in the area. This can provide valuable insights into what customers are looking for in a restaurant and how your business can differentiate itself from competitors.

Strategies to Differentiate a Business from Other Restaurants:

1. Offering Unique Menu Items: Consider offering dishes that are unique or a different take on existing dishes. This will set your restaurant apart from competitors and attract customers who are looking for something new and different.
2. Providing Exceptional Customer Service: Great customer service can help create loyal customers who will choose your restaurant over competitors. Ensure that staff is well trained and provide a memorable experience for guests.
3. Focusing on a Specific Cuisine or Theme: By specializing in a specific cuisine or theme, your restaurant can become known as the go-to place for that type of food or experience. This can help differentiate your business from competitors who have a broader menu or theme.

Solution 1: Steps to Determine the Impact of Surrounding Restaurants

To determine the impact of surrounding restaurants in their selected location, Chris and Erica should take the following steps:

1. Conduct a Market Research: They can research to find answers to questions like which restaurants are most popular, what type of cuisines are in demand, and what is the price range of the restaurants.

2. Studying Restaurant Menus: Erica and Chris must conduct customer research to find out what menu items can attract customers. It can help in determining popular menu items and in creating a unique menu that stands out.

3. Analyzing Reviews and Customer Feedback: Checking out online reviews and customer feedback can give insights into what people think about the surrounding restaurants’ strengths and weaknesses. Erica and Chris can use this information to avoid common mistakes and improve their restaurant’s offering.

Recommended Strategies for Differentiation:

1. Specialization in Cuisines: Chris and Erica can create a unique identity around the restaurant by specializing in a particular type of cuisine that is not readily available in the surrounding restaurants.

2. Unique Atmosphere: Designing the restaurant with unique, warm, and welcoming ambiance can attract customers. A carefully crafted atmosphere combined with excellent service can create an unforgettable experience for the customers.

3. Focus on Healthier Options: Offering healthier options can differentiate their restaurant from the surrounding restaurants. Making food with fewer calories, gluten-free, vegan, or plant-based options can attract a niche clientele.

Solution 2: Leverage Technology to Stay Competitive

To differentiate their restaurant from the surrounding restaurants, Erica and Chris can leverage technology to stay competitive. They can do the following:

1. Create Stunning Website: A well-designed website can draw in customers by featuring mouth-watering dishes on their menu, restaurant’s unique value proposition, and ambiance. The website must be optimized for mobile to provide a seamless experience to the customers.

2. Implement Online Ordering System: Implementing an online ordering system can streamline the ordering process, reducing the time customers spend waiting, and ensuring orders are accurate. They should use a restaurant point of sale (POS) system that makes the process more manageable.

3. Offer Delivery and Takeout: With increasing demand for delivery and takeout services, they should offer these options to customers. Delivery partners like Uber Eats, DoorDash, and Grubhub can increase the restaurant’s reach without putting the additional time and resources into creating a delivery team.


To succeed in the competitive restaurant industry, Chris and Erica must create a unique identity and stay competitive with the surrounding restaurants. By conducting market research, studying customer feedback, and analyzing menus, they can determine how the surrounding restaurants will impact their business. By using technology, they can differentiate their restaurant and make it stand out from the competitors.

Suggested Resources/Books:

1. “Restaurant Marketing: Strategic Planning and Results” by Roger Fields
2. “The Restaurant: From Concept to Operation” by John R. Walker
3. “The Ultimate Guide to Starting a Restaurant: How to Be a Restaurateur” by Ronald Lee

Similar Asked Questions:

1. What are the key factors to consider when selecting a location for a restaurant?
2. How can market research be used to gather information on surrounding restaurants?
3. What strategies can be used to differentiate a restaurant from its competitors?
4. How important is branding in the restaurant industry?
5. What are some effective ways to market a new restaurant?

Key Steps to Determine Impact of Surrounding Restaurants:

1. Conduct market research to identify existing restaurants in the area and their specialties.
2. Analyze customer reviews and ratings of these restaurants to understand their strengths and weaknesses.
3. Determine what unique value proposition your restaurant can bring to the area.

Strategies to Differentiate a Restaurant:

1. Unique menu offerings that cannot be found in other restaurants in the area.
2. Specialized themes or ambiances that cater to specific demographics.
3. Creative marketing campaigns that focus on the unique aspects of your restaurant.

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