«12-2013 Business Plan for a Korean Fine-dining restaurant in Las Vegas Jihoon Kim University of Nevada, Las Vegas Follow this and additional works ...»
trailing non-restaurant food service positions. The economic importance of the industry is evident based on the number of jobs created per $1 million spent by local restaurants (21.8 jobs), and sales revenue generated per dollar spent ($0.74 in sales to Nevada’s economy). Over the next 10 years, the total number of restaurants in Nevada is projected to increase by 14.8%, representing an employment workforce greater than 220,600. Revenues generated from these eating establishments are projected to grow by over 20%, to nearly $7.5 billion. (National Restaurant Association, 2013b) Consumer Profile The local Las Vegan. The existing demographics in this area indicate a racially-diverse metropolis. Las Vegas is one of the few U.S. cities whose population exceeds 100,000 in which non-Hispanic Caucasian-Americans does not constitute more than 50% (only 47.9% of the total
population). The remaining 52% of the population consists of the following:
The median income for a household in Las Vegas is $54,174, slightly below the median income of $55,553 for the State of Nevada (United States Census Bureau, 2012).
the highest amount on record. According to a study commissioned by LVCVA (2012b), the total
household income reported by domestic tourists surveyed was as follows:
Domestic tourists on average spent $590 per visit in 2012. Of that amount, over 34% is spent on non-gaming activities, a record amount. Over 60% of the money spent on non-gaming activities was dining-related. Only 72% of tourists gambled while in Las Vegas, a record low amount. Nine-tenths of the tourists that did gamble were primarily on the Las Vegas Strip. The prominent geographic region in which the domestic tourist originated from was the Western United States, with the State of California leading the way (LVCVA, 2012b).
The international tourist. Over 6.5 million international visitors came to Las Vegas in 2012, the highest amount on record (LVCVA, 2012a). Last year international travelers represented 29% of the total discretionary spending in Las Vegas, even though they accounted for 16% of all total visitors. Due to the amount of distance traveled and the destination itself, international tourists tend to stay longer and spend more while in Las Vegas. On average, an international tourist spends close to $1,200 during the visit, compared to $590 for a domestic
foreign travelers to overall city visitation by 2020.
Target Market Biwon’s target market is the City of Las Vegas, with emphasis on the Las Vegas Strip.
Considering the aforementioned median income for a household in Las Vegas and the total household income for the domestic tourists, the ideal patrons in Biwon’s target market will consist of individuals between the ages of 21 and 49, with an annual income of $60,000 or greater. The patron will be of affluent Americans and foreign tourists familiar with Asian and Korean-themed fine-dining cuisine, as well as Korean Americans and Korean nationals residing in Las Vegas, or visiting from large cities such as Los Angeles and New York, or from abroad.
The Las Vegas Strip. The Las Vegas Strip is a 4.2 mile stretch of road on Las Vegas Boulevard – South, with numerous hotel-casinos running alongside it. The Strip has been designated as an All-American Road by the United States Department of Transportation, one of only 31 in the entire country to hold that distinction (Federal Highway Administration, 2000).
Due to the size of its hotel-casinos, their architecture, amenities, luminescence exteriors, and continuous upgrade, Las Vegas is one of the most visited places in the world. Every FiveDiamond restaurant and hotel in Las Vegas is located on the Las Vegas Strip. All nightclubs rated in the top 10 nationally (in terms of gross revenue earned) are located on the Strip, inside hotels such as the Wynn, Mirage, and the Venetian. In terms of gaming revenue, the Strip has historically been the largest, generating 60% of the $10.8 billion of total revenue earned statewide last year (Garlitos, 2013). Two of the largest convention centers in the world are located on the Strip, extensions of existing hotels: Mandalay Bay Convention Center (Mandalay Bay) and Sands Expo (Venetian). The third (Las Vegas Convention Center) is located just off
The patron’s geographic origins.
• The local Las Vegan patron represents 25% of the target market’s consumer base
• The domestic patron represent 45% of the target market’s consumer base, with over
The domestic patron’s ethnic background.
• Caucasian-Americans represent 50% of the target market’s consumer base
• Americans of Korean descent represent 25% of the target market’s consumer base
• African-Americans represent 5% of the target market’s consumer base
• Hispanics represent 5% of the target market’s consumer base
• Chinese-Americans represent 5% of the target market’s consumer base
• Thai-Americans, Vietnamese-Americans, Filipino-Americans, Indian-Americans, and other Pacific Islanders represent 5% of the target market’s consumer base The international patron’s country of origin.
• Patrons from South Korea represent 50% of the target market’s consumer base
• Patrons from the United Kingdom, Western and Eastern Europe, and Russia represent
• Patrons from China represent 5% of the target market’s consumer base
• Patrons from Japan represent 5% of the target market’s consumer base
• Patrons from Thailand, Bangladesh, Indonesia, India, Pakistan, Laos, Vietnam, and the Philippines collectively represent 15% of the target market’s consumer base
• Patrons from South America, Central America, the Caribbean and neighboring islands, and Mexico collectively represent 5% of the target market’s consumer base Competition Prior to start the new restaurant, it is necessary to analyze the competition. Biwon has
classified its competition into three categories: fine-dining, Asian-themed dining and Koreanthemed dining:
Fine-dining. Biwon’s main competitors are as follows:
Note. Restaurants in Bold indicate an AAA Five-Diamond awarded restaurant in 2013 (AAA, 2013).
Asian-themed dining. Biwon’s main competitors are as follows:
* A fusion of Korean, Japanese, and Chinese cuisine (located inside Quad Resort) As it currently stands, there is no other Korean-themed fine-dining restaurant on the Las Vegas Strip, nor in the Las Vegas Metropolitan area. The majority of Korean-themed restaurants are located on Spring Mountain Road, considered as the Asian Cultural Center of Las Vegas.
Upon opening the facility, Biwon will offer its customers a wide selection of dishes during their dining experience. All products will be authentic Korean, fresh, made-to-order, and of the highest of quality.
Once Biwon acquires the funding it seeks, it will initiate the process of creating the restaurant business. Biwon’s products, based on authentic Korean tradition with a touch of modern style, will include a diverse selection of items, from the finest-cuts of meat, and fresh seafood to organic fruits and vegetables. Biwon will offer its patrons a dining experience unlike
any other in Las Vegas. Its hours of operation will be as follows:
Sunday – Thursday: 5:30 p.m. – 10:00 p.m.
Biwon’s number of covers can be assumed, based on the interview with Mark Andelbradt, Executive Chef of Tao Las Vegas. Tao, which is located on the Strip, can provide an example of fine dining for Biwon, being the most profitable restaurant in the United States with nearly $60 million a year in revenue. Considering the brand awareness of Tao and its business scale, represented by its 850 employees, Biwon’s daily number of covers is adjusted to be 400 within the next three to five years. This figure is also consistent with Biwon’s business goal of serving
for the projected number of covers and the revenue statement. According to the revenue statement, the projected average check per cover is estimated at $45 per person, by dividing the total revenue earned by the total number of patrons.
An aggressive marketing campaign should be part of the startup strategy. Although traditional marketing strategies are still effective, personal reviews posted on sites such as Twitter and Facebook will also be leveraged. Biwon will market itself through a combination of traditional marketing, online marketing, and social media marketing. The following is a review of the marketing strategy.
Traditional Marketing Biwon will look to advertise in local newspapers and publications with the largest circulation figures in its target area. In reaching Americans of Korean descent, Korean nationals, and affluent Americans, Biwon will focus its national advertising efforts in cities with the largest concentrations of these populations, including Los Angeles and New York City. Biwon will also seek to advertise in the Korea Daily, the most read Korean-American printed publication in the United States. In addition, Biwon will utilize various forms of promotional marketing and outdoor advertising in reaching its target audience.
Promotional marketing. Biwon will institute a form of promotional marketing by conducting monthly drawings for free and discounted meals. Some of the promotions planned
• 10 purchases from its facility = one free meal (minimum $100.00 purchase per visit)
• Recommend a Patron = 10% off of next purchase (limited to one per person per
• Monthly business card drawing = one free meal (redemption value of $100 maximum) Outdoor advertising. Biwon will contact outdoor advertising companies in its target market to purchase their services. Some of the high visibility areas Biwon will investigate
advertising are at or near the following:
• Luxury resorts on the Las Vegas Strip: Wynn/Encore Resorts, Venetian/Palazzo Resort & Casino, CityCenter, Caesars Palace, Mandalay Bay Resort & Casino
• High-end shopping centers throughout Las Vegas: Fashion Show Mall, Boca Park,
• McCarran International Airport and Henderson Executive Airport Online Marketing In order to properly market itself online, Biwon must have a significant presence on the
internet. The initial step in developing this presence is the creation of its website:
Website. Biwon will retain the services of a professional website design firm to develop and manage its website: biwontasteofseoul.com. Through its partnership with OpenTable, Biwon’s patrons will have the ability to make reservations online from any device. Existing and prospective patrons can sign up for regular notifications via email, advertising for special offers.
Immediately following the development of its website, Biwon will increase its presence on the
Naver, Daum, and Nate. This will enhance the probability of individuals surfing the web to find biwontasteofseoul.com through specific keywords, thereby increasing visitation. Initially, biwontasteofseoul.com will be accessible through desktops and laptops. Within the first 6 months of operation, biwontasteofseoul.com will be migrated to enable viewing on all mobile and interactive devices.
Search engine optimization. Following the development of its website, and the registration with various search engines, Biwon will implement a Search Engine Optimization strategy both domestically and internationally. Biwon and its partners will primarily focus on Google, Yahoo-Bing, Naver, Daum, and Nate in gaining online exposure within the United States and South Korea. Biwon will purchase ads with Google AdWords, Bing Ads, and ADs with Naver, Daum, and Nate in order to be listed prominently on the first page when an online user enters certain keywords. This will increase Biwon’s ability to gain market share on the front end, reaching them before they visit the facility or area.
Social Media Marketing Biwon will institute a social media marketing campaign over the internet, utilizing Facebook, Twitter, YouTube, Yelp, and TripAdvisor, as its vehicles for delivery. The marketing campaign will focus on educating the target audience about Biwon and itse products and services.
In business there are risks involved, regardless of the company. The key to success is recognizing, identifying, and properly addressing those risks prior to opening an operation. Prior to opening, Biwon conducted a SWOT Analysis (Strengths, Weaknesses, Opportunities, &
Threats). Listed below are the results:
Location. Biwon considered customer density when deciding where to start the business.
Biwon targeted location is in the heart of the Las Vegas Strip, one of the most famous and heavily trafficked areas in the world. Estimated daily traffic count is over 586,000 cars, with its peak being during the morning (7-9am) and after-work (4-6pm) rush hours. Estimated hourly foot traffic on the Strip is averages nearly 18,000 persons, peaking at 41,000 persons during the evening (Applied Analysis, 2013).