Contributed by Dave Patel
Bargaining power of customers (High) - Factors such as customers' price sensitivity, their ability to switch between different restaurants, and their demands for high-quality food and service can impact Xina's pricing strategy, customer loyalty, and overall revenue.
Threat of substitutions (Medium) - The availability and
attractiveness of substitutes for Chinese cuisine can affect Xina's success.
This includes alternatives like other types of cuisine, fast-food options, or
home-cooked meals. Xina's ability to differentiate itself through unique
flavors, authentic recipes, dining experiences, or specialized offerings can
help mitigate the threat of substitutes.
Bargaining power of suppliers (High) - The power of suppliers, such as food and beverage suppliers, can affect Xina. The availability of quality ingredients, reliable suppliers, bargaining power, and the ability to source ingredients at competitive prices can influence the business's profitability and operational efficiency.
Threat of new entrants (Low) - The possibility of new
competitors entering the market should be considered. This includes both new
Chinese Bistros and other types of restaurants that may introduce Chinese
cuisine to their menus. Factors such as entry barriers (e.g., capital
requirements, regulations), brand reputation, and customer loyalty can impact
the likelihood and impact of new entrants.
Rivalry (Medium) - The level of competition within the
Chinese restaurant industry can significantly impact Xina. Factors such as the
number of competitors, their size, market share, pricing strategies, and
differentiation of offerings should be assessed. High competition may lead to
pricing pressures and the need for unique value propositions to stand out.
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| Porter's five forces |
Profitability: Rick Lee states Xina Restaurant is profitable
– no value on revenue or profit margins annually provided.
Focused Differentiation - Sales & Marketing
Xina restaurant is a Sushi & Oyster Bar and Chinese Bistro. While food and hospitability are their centered field, Xina also focuses on its sales & marketing differentiation from its competition in the area. The process begins with lead generation, which may come
from Google, Facebook, Instagram, or word of mouth. Platforms like Google,
Facebook, and Instagram help with lead tracking, as they use stored cookies to
present advertisements on the customer’s internet use. Customers then generate
revenue from either ordering within Xina among servers, calling via the phone,
or using Toast (CRM system) to order online or make reservations for seating. The
front-of-the-house (FOH) and back-of-house (BOH) receive the order and prepare
accordingly. Once the order is complete and customers receive their order, they
have options to share their experiences, such as through the Toast platform, Google
reviews, or sharing on social media platforms like Facebook or Instagram. From
there, these processes are looped back to lead generation. Support activities
such as procurement, human resources, and firm infrastructure help the
main/primary processes are activity conducting.
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| Business Process |
The process explained and other processes Xina uses are all
structured. A structured process refers to a process that follows a
well-defined and organized set of steps or procedures. At Xina, there is a
clear sequence of activities and business processes (marketing/sales,
operations, HR, etc.) that are performed to ensure the smooth functioning of
the establishment and the delivery of food and services to customers – a system
the restaurant has developed since its numerous successful years serving the
Toms River area. Here are some aspects of Xina that demonstrate its structured
nature:
- Standardized procedures: Xina has standardized procedures for various tasks, such as taking orders (Toast platform), food preparation (cooks, expos, or dishwashers), serving, and billing. These procedures are designed to maintain consistency and efficiency in Xina's operations.
- Division of labor: Xina has a division of labor among its staff members. Different employees have specific roles and responsibilities, whether it's the sushi chef cooking/preparing the food, the servers attending to customers, or the cashier handling payments.
- Time-bound operations: Xina operates on specific schedules, such as opening and closing hours, mealtimes, and reservation systems (Toast platform). These time-bound operations help Xina manage customer flow and resources effectively.
- Menu and recipe structure: Xina has a structured menu and recipes that guide the preparation/authenticity of their dishes. Their menu is carefully curated to offer the best sushi/oyster bar & Chinese bistro experience to customers while ensuring that the kitchen can manage the ingredients and cooking processes efficiently.
Xina's scope process relies on an enterprise process closely
related to the CRM enterprise information system. Xina's use of the Toast
platform serves the CRM purpose. Toast help take orders, thus, helping to
connect the kitchen to the front of the house, providing customers the option
to take contactless payments and enable QR-code order and pay, and adding
additional software for Xina to onboard/pay employees, attract/retain customers
and process & automate invoices.
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| Value Chain |
Social media (SM) can support the process and the associated
risks of outbound logistics through a dynamic process of problem-solving the
restaurant’s expo. Outbound logistics refers to the process of managing the
movement of products from the company's facilities to the end-users or
customers. As it relates to Xina, it’s the process of managing the movement of
food from the kitchen to the customers, either for that dining-in, picking-up,
or delivery service; another name for this is the expo. In any restaurant,
keeping food quality is always challenging, especially when picking-up or
delivery services are included. When receiving customer communication/feedback,
Xina has three options to respond: leave it, respond to it, or delete it. When
they receive negative feedback, Xina could provide a resolution or positive
result because of the valid concern/issue (respond to it). Along with using
customer feedback on their expo quality, Xina can provide real-time
updates/tracking via SM outlets to express long-wait times or items out of
stock. By leveraging SM, Xina can keep customers informed and reduce inquiries
related to order delays/status.
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| Google Reviews |
Social media (SM) can support the process and the associated
risks of sales & marketing, and customer service through a dynamic process
of peer-to-peer sales and support. Peer-to-peer sales and support is a
customer-driven process in which individuals purchase a product and then
actively share their experiences/opinions about it with their acquaintances,
inspiring and facilitating new sales. As it relates to Xina, peer-to-peer sales
are when a customer purchases food at the restaurant and then shares their
experiences about the food and service, generating leads. Peer-to-peer support
is when Xina uses its customers to provide support.
Xina has crafted SM in this aspect through
Facebook, Instagram, and Google Reviews. While Xina practices a “leave it”
practice with SM peer-to-peer, both positive & negative, it may benefit
from using some responding practices to keep customers involved and part of the
community where Xina establish business.
For example, MindySue Fry reviewed on 7/27/23, “Great food, amazing
service, so many options! A fantastic place year-round!” Xina could reply with
an appreciation of her visit and her review. Or Tara Phillips, who reviewed
about on 7/7/23, stated the temperature was hot and inside was very loud. If
Xina had a constructive reason for the temperature and loud service, it could
reply and ask her to please come again. If Xina cannot provide a constructive
reason for Tara’s issues, the “leave it” practice is always advised.
Peer-to-peer support is expressed in the use of Xina's leverage of SM platforms
like Instagram or Facebook. Customers take pictures and tag Xina, along with liking
and commenting on Xina’s posting on SM. For example, Xina posted on Instagram on 6/8/23 with the
caption, Passion Roll - Hamachi, passion fruit, coconut shrimp, guacamole &
mango. The post received 479 likes and 7 comments, 4 of them being tagged as a
form of peer-to-peer support.
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| Instagram Post |
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