Earls MASTER - ZEN Portfolios

 SOMETIMES Y CONSULTANTS Earls on Top Restaurant and Bar Marketing Research Report Tenneille Sailor, Jessica Ye, Bruce Tianan, Nicki Munan, Janine Canon, Kat Precious, and Myrosha Daley 11/22/2009 This report contains marketing research prepared for Earls on Top by Sometimes Y Consultants. EXECUTIVE SUMMARY Earls on Top located on Robson opened in 1985, in Vancouver British Columbia. Over the past year Earls on Top has noticed a decline in gross sales. The amount of traffic into the restaurant has slowed and the average customer cheque is lower than previous years. The General Manager, Dario Gianna, would like to know if this decline is due to an internal problem or an external issue. If it is an internal problem then they will be able to make the necessary changes to correct the problem. However, if it is an external cause such as the economic downturn or the current saturation of restaurants in the downtown core, it may be out of their control or take a lot of time and money to develop a new strategic plan. The Marketing Research group, SometimesY, decided to use three different marketing research tactics to determine the cause of the decrease in sales. We utilized observation studies, online surveys, and secondary research. The purpose is do determine if it is an internal or external issue causing a decrease in traffic and gross sales. The limitations SometimesY encountered were time restrictions. In the creation phase of the online survey a limitation encountered was the length of the survey. In order to maximize the quality and depth of information obtained from our respondents it was a challenge keeping the survey relatively short and not too time consuming. Another limitation faced concerning the online survey was regarding the reach. Limitations encountered in the observation study were typical of observation study research. The field workers ran into problems when it came to counting the number of customers in competitor restaurants at a given peak time of the day. The issue identified was that it is very challenging to count how many people were in a restaurant in a single minute because people are constantly moving and could be in out of sight locations. The four main internal issues that respondents indicated in the online survey that affected their choice to dine at Earls on Top were new menu items, availability of parking, street signage, and music. SometimesY recommends that Earls on Top increase awareness of menu items by offering food specials for meals that customers may not know about. Another recommendation to help increase awareness is to implement new street level signage on Robson Street that is large, eye catching, and includes details of where to park and states that Earls has the best patio in the area. The background music should also be turned down to a lower volume.
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2 For our studies we have concluded the following as the main competitors: Cactus Club Cafe on Robson, Joeys ĞŶƚĂůů͕DŽdžŝĞ͛ƐůĂƐƐŝĐ'ƌŝůůŽŶZŽďƐŽŶ͕ĂƌůƐZĞƐƚĂƵƌĂŶƚŽŶ,ŽƌŶďLJ͕ĂĐƚƵƐůƵďĂĨĠŽŶƵƌƌĂƌĚ. Analysis of our observation study reflects that the business level for Earls on Top is the same as the other competitor restaurants on Robson Street. On the other hand, the newly opened restaurants on Burrard Street and Smith Street are busier than the Robson Street shopping district. Through the analysis of all three marketing research techniques, it can be determined that it is not an external factor relating to the 2009 decline in the economy causing a decrease in Earls ŽŶdŽƉ͛ƐƚƌĂĨĨŝĐĂŶĚƐĂůĞƐ͘^Ăƚuration of the market has been the main external factor leading to the decrease in sales and traffic because many Earls customers have started dining out in other restaurants that are in the area. Seven new restaurants have been developed just on Robson alone in the last five years. It is the fastest growing sub-­‐industry in the Robson Street Commercial Area. The area is exposed to more than 8 million tourists a year and Earls on Top should capitalize on that potential for business. CONTENTS Executive Summary ....................................................................................................................................................... 2 Background & Objective ................................................................................................................................................ 4 Research Limitations ..................................................................................................................................................... 5 Defining the Problem ................................................................................................................................................. 5 Survey ........................................................................................................................................................................ 5 Observation Study ..................................................................................................................................................... 5 Sampling Error ........................................................................................................................................................... 5 Survey Results ................................................................................................................................................................ 7 Map of Respondents...................................................................................................................................................... 8 Observation Results ....................................................................................................................................................... 9 Restaurants in Observation Study ............................................................................................................................... 10 Conclusions .................................................................................................................................................................. 11 Recommendations ....................................................................................................................................................... 12 Appendices .................................................................................................................................................................. 13 Works Cited ................................................................................................................................................................. 46 Page
3 BACKGROUND & OBJECTIVE The fouŶĚĞƌŽĨĂƌůƐZĞƐƚĂƵƌĂŶƚŝƐ>ĞƌŽLJ͞ƵƐ͟Ăƌů&ƵůůĞƌĂŶĚŚŝƐƐŽŶ^ƚĂŶůĞLJĂƌů&ƵůůĞƌ͘dŚĞĨŝƌƐƚĂƌůƐŽƉĞŶĞĚŝƚƐ
ĚŽŽƌƐŝŶϭϵϴϮŝŶĚŵŽŶƚŽŶ͕ůďĞƌƚĂ͘dŚĞŽƌŝŐŝŶĂůĂƌůƐ͛ǁĂƐĂĐĂƐƵĂůďĞĞƌĂŶĚďƵƌŐĞƌũŽŝŶƚǁŝƚŚŐƌĞĞŶĂŶĚǁŚŝƚĞ
interior, and decorated with wooden parrots (Earls restaurant & bar)͘^ŝŶĐĞƚŚĞŶĂƌůƐ͛ŚĂƐĞǀŽůǀĞĚŝŶƚŽĂŚŝŐŚ-­‐end casual dining restaurant which has over 55 locations across Western Canada, Ontario, the United States, and soon in Eastern Canada. The restaurant is still a family owned, private business with the reigns being handed over to Stan Fuller when Bus retired ("Earls (Restaurant Chain)," 2009)͘ĨƚĞƌƚǁŽĚĞĐĂĚĞƐĂŶĚĂůŽƚŽĨŚĂƌĚǁŽƌŬƚŚĞĂƌůƐ͛
name has a reputation for quality food and a great dining experience. Earls on Top on Robson opened in 1985 in downtown Vancouver, British Columbia. Earls on Top has 50 tables inside the restaurant and two full patios. The front patio has 16 tables and the rear patio has 13 tables and they are both open only during the spring and summer seasons. Earls had a complete renovation in 2004 bringing the restaurant up to date with the current style. The concept of the revamp was to create a fun, trendy hot spot that had great food and unique cocktails and martinis. The oval shaped bar was built in the center of the restaurant, with seating all around. The bar is the centerpiece of the restaurant. This vision was stimulated by the financials that showed that the Earls on Top location ranked number one for alcohol sales when compared to all the other Earls restaurants. Earls on Top quickly became the place to go in downtown Vancouver and remained consistent until 2008 when a multitude of new hot spots began opening throughout the downtown core. Over the past year Earls on Top has noticed a decline in gross sales. The amount of traffic into the restaurant has slowed and the average customer check is lower than previous years. The General Manager, Dario Gianna, is curious to know if this decline is due to an internal problem or an external issue. If it is an internal problem then they will be able to make the necessary changes to correct the problem. However, if it is an external cause such as the economic downturn or the current saturation of restaurants in the downtown core, it may be out of their control or take a lot of time and money to develop a new strategic plan. Page
4 RESEARCH LIMITATIONS DEFINING THE PROBLEM During the early stages of market research, Sometimes Y, faced challenges with defining the problem. The client, Earls on Top, ultimately wanted to find out why the sales at their Robson Street location were decreasing. We decided initially, to approach the problem with three different research objectives. These objectives were, to determine why there was a decline in customers leading to decrease in sales, to analyze the competition in the market, and thirdly, to clearly identify the current target market and the potential for other segments of consumers. After analyzing our initial research objectives, we decided that the three-­‐prong approach was quite aggressive given our time limitations. We decided to only focus on two of the objectives; determining why there was a sales decrease and analyzing the completion in the surrounding area. Sometime Y felt that by narrowing our objectives down, we would be better able to more clearly define the problem by focusing primarily on discovering the leading contributors to a decline in sales for Earls on Top. SURVEY Sometimes Y faced limitations involving the creation and implementation of our online survey. In the creation phase a limitation encountered was the length of the survey. In order to maximize, the quality and depth of information obtained from our respondents, it was a challenge keeping the survey relatively short and not too time consuming. Another limitation faced concerning the online survey was regarding the reach. The survey was delivered via email, resulting in the respondents being either known customers of Earls (pool 1) or personal contacts of the market research group, Sometimes Y (pool 2). We were limited in our reach to applicable random people, which would have been helpful in analysis of results from uninvolved parties. Other limitations faced with the online survey were, skipped questions, not-­‐applicable respondents, and problems with ranking questions. In our analysis of the survey results we found that a few respondents had never been to the Earls on Top location, resulting in a limitation in the relevancy of their responses. We overcame this limitation by removing the respondents who had never been to Earls on Top from our survey pool. Problems were encountered with the ranking of one of the survey questions. Some respondents were confused with the instructions for this question and tried to rank different items with the same number, instead of ranking the items from best to worst. This resulted in a measurement error and could have been overcome by being more through in the initial testing of the survey. OBSERVATION STUDY Limitations encountered in the observation study were typical of observation study research. The field workers ran into problems when it came to counting the number of customers in competitor restaurants at a given peak time of the day. The issue identified was that it is very challenging to count how many people were in a restaurant in a single minute because people are constantly moving and could be in out of sight locations. Another imitation encountered was that it was impossible for our small group of field workers to be in all six identified top competitor restaurants at the same time. The results obtained in from the observational research will not exactly reflect the same time of day in each competitor restaurant. Other typical limitations faced in observational studies were that field workers were unable to observe the thoughts and motivations of the observed customers and that not all activity can be recorded. Page
Limitations resulting from sampling were encountered in the market research conducted. One of the limitations Sometimes Y came across was non-­‐response error. In the initial survey sampling, many of the individuals identified 5 SAMPLING ERROR ĂƐ ƉĂƌƚ ŽĨ ƚŚĞ ƐĂŵƉůĞ ǁĞƌĞ ƵŶǁŝůůŝŶŐ ƚŽ ƉĂƌƚŝĐŝƉĂƚĞ Žƌ ŝŵƉŽƐƐŝďůĞ ƚŽ ĐŽŶƚĂĐƚ͘ ͞/Ŷ ƚŚŝƐ ĐĂƐĞ͕ ƚŚĞƌĞ ŝƐ Ă ƌŝƐŬ ŽĨ
differences, between (say) the willing and unwilling, leading to biased estimates of population parameters. This is often addressed by follow-­‐up studies that make a repeated attempt to contact the unresponsive and to characterize their similarities and differences with the rest of the frame. The effects can also be mitigated by weighting the data when population benchmarks are available or by imputing data based on answers to other questions (Sampling (Statistics))͘͟ Due to time limitations Sometimes Y was unable to follow-­‐up with the individuals who did not respond. The willing individuals who responded to the online survey form the Earls on Top customer database were only an estimated 1% or lower, meaning that challenges were encountered in the interpretation of the results from this pool due to biased opinions. Research suggests thĂƚ͕͞EŽŶ response is particularly a problem in internet sampling. One of the main reasons for this problem could be that people may hold multiple e-­‐mail addresses, which they don't use anymore or don't check regularly (Sampling (Statistics))͘͟dŽŽǀĞƌĐŽŵĞƚŚŝƐůŝŵŝƚĂƚŝŽŶƚŚĞŵĂƌŬĞƚƌĞƐĞĂƌĐŚŐƌŽƵƉ͕
Sometimes Y, sent out a separate online survey to a new pool of their own personal contacts, which resulted successfully in a 24% response rate. Page
6 SURVEY RESULTS Response to Economic Decline from the Contact Sample Question #6: What would bring you to Earls no Top more often? 40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Contacts
Earls Customers
More More sport New menu Quality of Different Décor and televisions viewing items
service atmosphere Layout
to watch options
sports
Question #3 Restaurants that Respondents Dined at in the Last Six Months (surrounding area) Contacts
Earls Customers
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7 30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
MAP OF RESPONDENTS Contacts Clients Page
8 OBSERVATION RESULTS th
Tuesday October 26 between 12:00pm and 1:00pm Analysis and Interpretation Seats:Customers
Numer of Seats
Business Level as Percent
Number of Customers
310
Percentage
250
145
27
110
78.13%
160
125
120
92 108
23
18.62% 20.91%
16
Earls Cactus Cactus Joeys Earls Moxies Robson Robson Bentall Bentall Hornby Robson
38.71%
36.80%
14.81%
Earls Cactus Cactus Joeys Earls Moxies Robson Robson Bentall Bentall Hornby Robson
Primary Observation When reviewing the results from our first observation, there is some obvious insight into the business levels at Earls and competitor restaurants in the Robson Street area. The first is that the restaurants on Robson Street had significantly lower business levels compared to the restaurants in the business district. The second main insight is ƚŚĂƚƚŚĞĂƌůƐŽŶZŽďƐŽŶďƵƐŝŶĞƐƐůĞǀĞůŝƐƐŝŵŝůĂƌƚŽDŽdžŝĞ͛Ɛ'ƌŝůůĂŶd Cactus Club on Robson Street. Secondary Observation Other downtown area restaurants like Joeys Bentall and Cactus Club Bentall had a line up during lunch rush. The observation was conducted on a cold day and the patio seats were used by some customers but not to potential. It ǁĂƐŽďƐĞƌǀĞĚƚŚĂƚDŽdžŝĞ͛Ɛ'ƌŝůůŚĂĚĂLJŽƵŶŐĞƌĚĞŵŽŐƌĂƉŚŝĐĂƐǁĞůůĂƐǁŚĂƚĂƉƉĞĂƌĞĚƚŽďĞŵŽƌĞĐƵƐƚŽŵĞƌƐĚŝŶŝŶŐ
for pleasure. Eg. Lunch Date Another comparison made was to observe the ratio of people in business attire to casual dress.
Customers in Business Attire as Percent
100.00%
50.00%
0.00%
Earls Robson Cactus Robson Cactus Bentall
Joeys Bentall
Earls Hornby Moxies Robson
Customers in Business Attire as Percent
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9 RESTAURANTS IN OBSERVATION STUDY Earls Restaurant ʹ Robson St. DŽdžŝĞ͛ƐůĂƐƐŝĐ'ƌŝůůʹ Robson St. Earls Restaurant ʹ Hornby St. Joeys Bentall ʹ Burrard St. Cactus Club Cafe ʹ Burrard St. 10 Page
Cactus Club Cafe ʹ Robson St. CONCLUSIONS After conducting the research around addressing the issue of declining sales for Earls on Top, we have concluded that there are several factors affecting business levels of the restaurant. Surprisingly, the issue of the current economic downturn was not a contributing factor in the declining sales dilemma that Earls on Top is facing at the moment. However, the marketing research group, Sometimes Y, was able to make conclusions regarding the declining sales problem as related to many other issues. An observational study, online survey, and secondary research were utilized to support the conclusions made about the key issues with the Earls on Top location. The results from our observation study conclude that the market for Earls on Top has become and will be increasingly competitive due to the threat of new restaurants opening in Earls on Top territory. In conducting ŽďƐĞƌǀĂƚŝŽŶĂů ƌĞƐĞĂƌĐŚ ŽŶ ĂƌůƐ͛ ŵĂũŽƌ ĐŽŵƉĞƚŝƚŽƌƐ ǁĞ ŝĚĞŶƚŝĨŝĞĚ ƚŚĞ ĨŽůůŽǁŝŶŐ ĂƐ ƚŚĞ ĨŝǀĞ ŵĂŝŶ ĐŽŵƉĞƚŝƚŽƌƐ͗
Cactus Club Robson, Joeys Bentall, Earls on Hornby, Moxies on Robson, Cactus Bentall. We recommend the use of better marketing strategies to create location awareness in order to attract existing and potential customers. Analysis of our observation study reflects that the business level for Earls on Top is the same as the other competitor restaurants on Robson Street. On the other hand, the newly opened restaurants on Burrard Street and Smith Street are much more busy than the Robson Street shopping district. We also found data that supports the effects of extreme weather such as heavy snowfall. Observation study and supporting secondary research concludes that the Robson Street commercial area is becoming increasingly saturated with eating and drinking businesses. Eating and drinking places are the leader Page
Supporting secondary research shows that there is a large market opportunity in the business professionals. Earls On Top has identified part of their target market as partially consisting of professionals working in the Downtown area. According to BizMap BC, the top 3 occupational fields among Downtown residents are Sales and Service (at 22%), Business, Finance and Administrative (at 19%), and Management (at 14%) (BizMap, 2009). The individuals employed in all three of these fields are likely to attend business/client meetings in a restaurant setting. The research suggests that Earls On Top has strategically placed them self in an area where their target customer is ƉůĞŶƚŝĨƵů ĂŵŽŶŐ ƚŚĞ ŽǁŶƚŽǁŶ ĂƌĞĂ͛Ɛ ƌĞƐŝĚĞŶƚƐ͘ In order to attract these professionals to Earls on Top we recommend sending out a direct mail campaign to business towers within a five-­‐block radius of the restaurant. 11 After analysis of the results from an online survey completed by randomly selected contacts and respondents from ƚŚĞĂƌůƐŽŶdŽƉĐƵƐƚŽŵĞƌĚĂƚĂďĂƐĞ͕ǁĞĐĂŶŵĂŬĞĐŽŶĐůƵƐŝŽŶƐĂƌŽƵŶĚƚŚĞŝƐƐƵĞƐƉůĂŐƵŝŶŐƚŚĞďƵƐŝŶĞƐƐ͛ƐĂůĞƐ͘&Žƌ
the purpose of relevance and clarity we broke down the interpreted results into specific issues. The first of these issues is advertising. The advertising of the Earls on Top location is lacking. Many respondents (10% of free response question) suggested better signage at the street level, as the restaurant is barely visible or enticing from the street. The second issue was in regards to atmosphere. Many respondents (15% average) felt strongly about volume of music as they found it hard to communicate comfortably and concentrate. Thirdly, respondents brought up issues regarding parking and location in our free response section of the online survey. Through analysis of these key issues we concluded that the knowledge of parking options in the restaurant vicinity is lacking resulting in many complaints of insufficient parking options. Also, analysis concluded that there is an issue with the narrowness of the stairwell leading up to Earls. Respondents found the stairwell dangerous and were put off by how steep and narrow it is. One of the biggest issues respondents had with Earls on Top was in regards to menu. Respondents were in favour of new menu choices on a more frequent basis. We recommend that Earls address this issue, as 33% of respondents want to see changes in the menu. Conclusions regarding the price and service were not as crucial as the advertising, atmosphere, location, and menu, however; it is still imperative that we analyze these issues for the purpose of obtaining complete and accurate research results. Conclusions around price were that respondents wanted more drink specials and food specials. As for the service, a few respondents felt the service was very slow. among the Fastest Growing Sub-­‐Industries with an actual increase, between 2003 and 2008, of 7 businesses (BizMap, 2009). This research tells us that the competition for Earls On Top is increasing and the market is becoming more and more inundated with eating and drinking places. On the other hand, secondary research shows that the population in the downtown area is expected to continue increasing on a steady basis. Vancouver's downtown peninsula is expected to see a population increase of 50% during the next 10 years, reaching 100,000 by 2021 (BizMap, 2009). We recommend that in order for Earls On Top to retain market share in this area, it is important for them to differentiate from their competitors and ramp up their street appeal. Secondary research conducted supports that there is significant demand potential for businesses located on the Robson Street strip. BizMap BC reports that businesses in the Robson Street Business Improvement Area (BIA) ͞are exposed to 8 million tourists a year and thousands of daily commuters and city residents travelling by SkyTrain, bus, bike and car͘͟dŚĞĚĞŵĂŶĚƉŽƚĞŶƚŝĂůĨŽƌƚŚŝƐĐŽŵŵĞƌĐŝĂůĂƌĞĂŝƐŵŽŵĞŶƚŽƵƐĂƐ͕͞ŵore than 79,000 residents live within tŚĞ/͛ƐƉƌŝŵĂƌLJĐĂƚĐŚŵĞŶƚĂƌĞĂ and provide the primary market base for businesses (BizMap, 2009).͟ĂƐĞĚ
on this research, we can conclude that there is significant market opportunity in the Robson Street commercial area. RECOMMENDATIONS 1) Advertising The adverting strategy: implement new street level signage on Robson Street that is large, eye catching, and includes details of where to park and states that Earls has the best patio. 2) Promotional Strategy We recommend Earls on Top send promotional material such as coupons (i.e. 2 for 1 lunch, free desert, 10% discount etc) to the business tower within a 5-­‐block radius of the restaurant through direct mail. We also, recommend an email campaign targeting these businesses. This could be just an awareness email or could entice customers through a limited time only offer. 3) Menu Advertise that farmed salmon is used instead of wild salmon due to environmental reasoning. This will increase the customer awareness and negative opinions around farmed salmon. Also, we recommend more food specials, which could draw attention to new menu items that customers may not already have experienced. 4) Atmosphere In regards to restaurant atmosphere we recommend that the music be turned down to a lower volume. Due to the fact that 15.1% of respondents found the loud music distracting and annoying, we suggest that the genre of music be changed to something a more subdued, yet still modern as Earls is viewed as a trendy hotspot. Page
In recommendation #1 we suggested the signage be updated to include information about where to park. It is important for Earls to advertise where the parking is, in front of the restaurant, as most customers driving by looking for Earls will see the sign. 12 5) Location (parking) APPENDICES 1.
2.
3.
4.
5.
6.
7.
8.
Page
13 Research Proposal Research Design Sample Survey Survey Results Observation Results Map of Restaurants in Study Map of Respondents Budget and Time Schedule Research Proposal for Earls on Top Purpose for Research The purpose of the research is to give the managers at
Earls on Top information to make business decisions.
The research objectives are listed below:
1. To determine if the decline in sales and
customers over the last year is caused by
External Factors (eg. Economic downturn,
recent market saturation) or Internal Factors
(eg, Menu, atmosphere).
2. To identify Internal Factors that could be
improved to attract and retain customers.
Research Design The survey research will be a basic research method
consisting of online survey questionnaires as well as
an observation study of competition in the area.
Questionnaire surveys will be emailed to current
guests and potential clientele. ☐Burnaby
☐Other:
Sample Design The questionnaire survey will be given to
approximately 200 individuals in the Earls customer
database.
Observational research will also be used to study
competitors.
Respondents will be over the age of 19 years. Our
effort directed toward the study of a broad sample.
Data Gathering The fieldworkers of the marketing group, Sometimes
Y, will conduct the surveys and observational
research.
Data Processing and Analysis Standard editing and coding procedures will be
utilized. Simple tabulation and cross-tabulations will
be used to analyze the data.
Some examples of questions to be asked are below:
Report Preparation Have you been to Earls on Top? A written report will be prepared and the research
analyst, at the convenience of Earls on Top, will
make an oral presentation of the findings.
☐Yes
☐No
Milestones & Budget How often do you visit Earls on Top? ☐Under 20
☐21 to 30
☐31 to 40
☐41 to 50
☐50+
What are the first 3 digits of your postal code? Please indicate what area you reside in.
☐Downtown Vancouver
☐North Vancouver
Date to be
completed by
Research Design
Field Work:
Surveying
Oct 19th
Sept 29th
Oct 19th
20
40hrs
Oct 25th
Data Collection:
Statistical research
Nov 3rd
Analysis:
Rough copy of report
Nov 16th
Feedback
Communication of
Results:
Final Written Report
Presentation
of
Results
Total Hrs & Budget:
Total Hrs
Allotted
35hrs
7
8
8hrs
30hrs
22
Nov 17th
8
24hrs
Nov 22nd
Nov 24th
16
8
137hrs
Budget
@$25/hr
Total:
$875
@$15/hr
Total:
$600
@$20/hr
Total:
$160
@$80/hr
Total:
$2,400
@$10/hr
Total:
$240
14 What age category are you in? Marketing Research
Procedure
Planning:
Group Charter
Terms of Reference
$4,275
Page
☐More than once a week
☐Once a week
☐Once a month
☐Once every 3 to 6 months
☐Once a year
☐Never
Research Design for Earls on Top ʹ October 27, 2009 Introduction This Research Design describes the details of the marketing research tactics that will be used in the project for Earls on Top. The results will provide insight to address opportunities and the purposes of this report including establishing reasons for decline in sales and customers as well as determining internal factors that can be improved. Survey Method Sampling Error Define Target Population & Sample units We anticipate some non-response error for both
surveys. The participants could be of one group
mindset, therefore may result in a bias. Sampling
frame error will occur because differences between
sampling frame and population.
Two surveys will be conducted. The target
population, for the first survey, will be existing Earls
on Top customers who have visited the restaurant for
a meal in the last five years; approx. 25,000 people.
The second target population will be existing and
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the group members conducting the research; approx.
1000 people.
Sampling Frame Our sampling frame, for the first survey, will be 30
people selected randomly from the client list
provided by the management of Earls on Top.
Our sampling frame, for the second survey, will be
160 people selected sudo-randomly from the contact
lists of the members of the group conducting this
research.
Probability vs. Non-­‐Probability Our design will be probability because we will be
randomly selecting respondents from the client list.
(Data base)
Procedure for Selection Design We will be conducting an online survey with two
separate samples. We will pre test the survey. The
first survey will be sent to a selection of the client
list, by email, provided by Earls on Top management.
The second survey will be sent to a selection of
people on the contact lists of the members of the
group conducting this research. The online surveys
will be sent out on Saturday November 7th and
Tuesday November 10th 2009 and will be closed
Monday the 16th of November 2009
Sample Size & Confidence Interval Our sample size, for the first survey, will be a random
selection from client list of 150. With a population of
25,000 thousand existing Earls on Top customers,
and a sample size of 30, we will be operating with
Confidence Level of 95% @ 50% and a Confidence
Interval of 7.98.
Page
15 The same will be true for the design of the second
survey as we will select randomly from the contact
lists.
Research Design Cont. Observation Study Define Target Population The target population will be visitors and residents of downtown Vancouver between the ages of 18 and 55.
Sampling Frame The sampling frame will be customers dining at Earls on Top and five competitor restaurants in the Robson street
area on Tuesday October 27th between 12:00pm and 1:00pm. A second sampling frame will include customers
dining at Earls on Top and three competitor restaurants on Thursday November 5th between 6pm and 7pm during a
Canucks hockey game broadcast.
Probability vs. Non-­‐Probability This non-probability because the sample is a convenience based study. We will visit 6 identified competitor
locations and during a specific time period, including weekday and weekend evening,
Procedure for Selection Design We will be visiting 6 competitor locations during peak meal times. We will make observation between 11:30 am and
1:00pm on Tuesday October 26th. We will also conduct observation between 5:30pm and 9:30 Thursday October
29th. We will be observing business levels, specifically the ratio of customers to restaurants capacity.
Sample Units Individuals
Page
16 Sample Survey What are the first 3 characters of your postal code?* How often have you eaten out in the past month?* Daily Twice or more a week More than once a week Once a week Once every two weeks Once a month Yes No If you have dined at the Earls on Top location please rank each factor according to what you find appealing. (1 being the lowest, 7 the highest). N/
1 2 3 4 5 6 7 A 1 -­‐ 10 times 11 -­‐ 20 times 21 -­‐ 30 times 31 -­‐ 40 times Watchi
ng Sports Quality of Service Food Quality Drink Special s Atmos
phere (Music, lighting , table display
s) 41 -­‐ 50 times Earls Fir -­‐ Broadway 50+ times What restaurants have you been to in the last 6 months?* Earls Downtown -­‐ Yaletown None Have you ever dined at the Earls on Top location?* Less than once a month How often have you dined out in the last 6 months according to the ranges?* Earls Broadway at Laurel -­‐ Kingsway Earls Paramount -­‐ Hornby Moxies Staff/p
eople Milestones Earls Drinks Cactus Club Joeys Coast If you have not dined at the Earls on Top please explain why. Italian Kitchen None Which Earls have you gone to in the last 6 months? (If you have not gone to any please check none).* Earls on Top -­‐ Robson Page
17 Individually, do you find Earls on Top to be reasonably priced? N/
1 2 3 4 5 A Strongly agree Strongly disagree Of the list below please select which options would bring you to Earls on Top more often. (Indicate all answers that are applicable).* More televisions to watch sports More sport viewing options New menu items Upbeat and Fun Quiet and Relaxing Romantic None of these How would you rate your overall experience at Earls on Top? (1 being exceeds expectations and 5 being unsatisfactory). Select N/A if you do not know.* 1 2 3 4 5 N/A The Earls on Top location is easy to find. 1 2 3 4 5 Strongly agree Quality of service Strongly disagree Different atmosphere Decor and Layout Please indicate any other suggestions that would bring you to Earls on Top more often. If you answered disagree or strongly disagree to the previous question (18) do you have any suggestions to make Earls on Top easier to find? Please indicate anything you would change or improve about the Earls on Top location. Do patios effect your choice of restaurant?* Yes No Have you found that in the last 6 months you have dined out less?* Yes No Age range:* Family oriented Trendy/Hot spot Sports Bar 19 to 29 30 to 39 40 to 49 50 to 59 60+ 18 18 and under Page
How would you describe the atmosphere of Earls on Top? If you have dined out less in the last 6 months please indicate what the reasons for the decrease are? Has the 2009 economic decline effected how often you dine out?* N/
1 2 3 4 5 A Strongly agree Strongly disagree have any suggestions or comments please indicate below. Submit answ ers
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19 Thank you for taking the time to fill out the survey. If you Survey Results Question #1 What would bring customers to Earls more often? -­‐ Contacts & Earls Customers Chart Title
30.00%
25.00%
20.00%
15.00%
10.00%
Contacts
5.00%
Earls Customers
0.00%
As indicated by the above chart, both the Contact sample and Earls Customer sample feel that a different atmosphere and a change in drinks would bring them to Earls more often. Question #2 Frequency of Dining Out -­‐ Contacts + Earls Customers 40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
Contacts
10.00%
Earls Customers
5.00%
Page
Daily Twice More Once a Once Once a Less or than week every month than more a once a two once a week week
weeks
month
20 0.00%
Question #3 Locations that Respondents Dined in the Last 6 Months in Surrounding Area 30.00%
25.00%
20.00%
15.00%
Contacts
10.00%
Earls Customers
5.00%
0.00%
Through the analysis of the survey results it has been determined that Cactus Club is Earls biggest competitor with 28.24% of contact respondents dining there over the last 6 months. Earls is a close second with contacts dining there 27.06% of the time. The survey results from our sample of Earls customers indicate that 25% have gone to Earls in the last 6 months and 28.57% of customers have gone to Cactus Club. Question # 4 Do Patios effect Decision Making -­‐ Contacts Yes 25 64.10% No 14 35.90% Total 39 100.00% Yes 7 87.50% No 1 12.50% Total 8 100.00% Page
/ƚŝƐĐůĞĂƌĨƌŽŵƚŚĞĚĂƚĂƚŚĂƚƉĂƚŝŽƐĂĨĨĞĐƚĂůĂƌŐĞƉĞƌĐĞŶƚĂŐĞŽĨĐƵƐƚŽŵĞƌƐ͛ĚĞĐŝƐŝŽŶĨŽƌƉůĂĐĞƐƚŽĚŝŶĞŽƵƚ͘
dŚĞƚǁŽĚĂƚĂƐĞƚƐĐŽŵďŝŶĞĚŝŶĚŝĐĂƚĞƚŚĂƚ͕ŽŶĂǀĞƌĂŐĞ͕ϳϱ͘ϴйŽĨĐŽŶƚĂĐƚƐĂŶĚĂƌů͛ƐĐƵƐƚŽŵĞƌƐŵĂŬĞƚŚĞŝƌ
decision to go to restaurants based on the choice of a patio. 21 Do Patios effect Decision Making -­‐ Earls Customers Question #5 Percentage of respondents that go to other Earls -­‐ Contacts + Earls Customers 60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
Contacts
0.00%
Earls Customers
Question #6 What would bring customers to Earls more often -­‐ Contacts + Earls Customers 40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Contacts
Earls Customers
Page
The largest percentages of Contacts and Earls customers have indicated that they would like to see new menu items. The average percentage is 33.2%. 22 Question #7 How Earls is Described in the mind of customers -­‐ Contacts + Earls Customers 40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
Contacts
10.00%
Earls Customers
5.00%
0.00%
Respondents from both samples have indicated that Earls is mostly considered a trendy, upbeat, and fun restaurant. Question #8 How You Would Rate Overall Experience at Earls on Top -­‐ Contacts + Earls Customers 60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Contacts
Earls on Top
Page
23 Question #9 The Earls on Top Location is Easy to Find -­‐ Contacts + Earls Customers 40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Contacts
Earls Customers
The largest percentage of respondents feels that Earls on Top is easy to find. Question #10 Have you dined out less in the last 6 months? -­‐ Contacts Yes 13 33.33% No 26 66.67% Total 39 100.00% Have you dined out less in the last 6 months? -­‐ Earls Customers Yes 1 12.50% No 7 87.50% Total 8 100.00% Page
It is indicated that most respondents feel that they have not dined out less in the last 6 months. 24 Question #11 How many times you dine out in a month -­‐ Contacts + Earls Customers 30.00%
25.00%
20.00%
15.00%
Contacts
Earls Customers
10.00%
5.00%
0.00%
1 -­‐ 10 11 -­‐ 20 21 -­‐ 30 31 -­‐ 40 41 -­‐ 50 50+ times times times times times times
Question # 12 Have You Dined at the Earls on Top Location -­‐ Contacts Yes 23 59.00% No 16 41.00% Total 39 100.00% Have You Dined at the Earls on Top Location -­‐ Earls Customers Yes 8 100% No 0 0% Total 8 100% 25 Page
Question # 14 What brings customers to Earls most -­‐ Earls Customers only Earls Customers
25.00%
20.00%
15.00%
10.00%
5.00%
Earls Customers
0.00%
Earls customers have indicated that the food selection draws them to Earls the most. Question #15 Has the 2009 economic decline affected dining out -­‐ Contacts + Earls Customers 35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
Contacts
Earls Customers
Page
26 0.00%
Question #16 Is Earls Reasonably Priced -­‐ Contacts + Earls Customers 60.00%
50.00%
40.00%
30.00%
20.00%
Contacts
10.00%
Earls Customers
0.00%
For the most part respondents feel that the price at Earls is reasonable. Question #17 Age Range -­‐ Contacts + Earls Customers 18 and under 0 0.00% 0 0.00% 19 to 29 32 82.05% 4 50.00% 30 to 39 2 5.13% 2 25.00% 40 to 49 2 5.13% 0 0.00% 50 to 59 1 2.56% 1 12.50% 60+ 2 5.13% 1 12.50% 39 100.00% 8 100.00% Total Page
27 Pivot Charts and Tables Response to Economic Decline from the Contact Sample 10
9
R E S P O N D E N T S 8
7
6
5
Have you found that in the last 6 months you have dined out less? No
4
Yes
3
2
1
0
1-­‐Strongly Agree
2-­‐Agree
3-­‐Neutral
4-­‐Disagree
5-­‐Strongly Disagree
N/A
Has the 2009 economic decline effected how often you dine out? The analysis of the above chart shows that the majority of the contacts have not changed their dining out frequency in the last 6 months. This chart also indicates that for the most part the economic decline has not influenced the contacts choice to dine out. Response to Economic Decline from the Earls Customer Sample R E S P O N D E N T S 5
4
Have you found that in the last 6 months you have dined out less? 3
No
2
Yes
1
0
3-­‐Neutral
4-­‐Disagree
5-­‐Strongly Disagree
28 Current Earls customers have indicated through survey results, shown in the above chart, that the economic decline has not affected their dining out frequency. One factor that could contribute to the strong opinion is because they are an older demographic and may have more stable finances. Page
Has the 2009 economic decline effected how often you dine out? When comparing the two data samples it can be determined that the decrease in sales is not a result of the decline in the economy. The decline in sales that Earls on Top is experiencing is due to other external factors. Contact Sample Have Dined at Earls on Top Daily Less than once a month More than once a week Once a month Once a week Once every two weeks Twice or more a week Grand Total Female Male 1 2 1 3 3 2 6 4 2 2 4 8 18 20 Earls Customer Sample Have Dined at Earls on Top More than once a week Once a week Once every two weeks Twice or more a week Grand Total Female 2 1 1 1 5 Male 1 1 2 Page
29 The Number of Times People Have Dined Compared to the Affect of Patios on Choice from Contact Survey Sample 8
R E S P O N D E N T S 7
6
Do patios affect your choice of restaurant? 5
4
No
3
Yes
2
1
0
1 -­‐ 10 times 11 -­‐ 20 times 21 -­‐ 30 times 31 -­‐ 40 times 41 -­‐ 50 times
50+ times
How often have you dined out in the last 6 months according to the ranges? The above chart shows that the contacts that dine out most frequently choose restaurants that have patios. It is clear from the survey results that patios have a strong influence in the decision making process when choosing a restaurant. The Number of Times People Have Dined Compared to the Affect of Patios on Choice from Customer Survey Sample R E S P O N S E 3
Do patios affect your choice of restaurant? 2
No
1
Yes
0
1 -­‐ 10 times 21 -­‐ 30 times 31 -­‐ 40 times 41 -­‐ 50 times
50+ times
How often have you dined out in the last 6 months according to the ranges? Page
30 dŚĞĂďŽǀĞĐŚĂƌƚ ĐůĞĂƌůLJ ƐƚĂƚĞƐƚŚĂƚƚŚĞĂƌůƐĐƵƐƚŽŵĞƌƐ͛ĐŚŽŝĐĞŽĨƌĞƐƚĂƵƌĂŶƚ ŝƐ ƐƚƌŽŶŐůLJĂĨĨĞĐƚĞĚďLJƚŚĞ
option of a patio. Free Response Answers from Client Surveys Q#14. Q#15. Q#19. Q#22. Q#24. Please indicate any other suggestions that would bring you to Earls on Top more often. Please indicate anything you would change or improve about the Earls on Top location. If you answered disagree or strongly disagree to the previous question (18) do you have any suggestions to make Earls on Top easier to find? If you have dined out less in the last 6 months please indicate what the reasons for the decrease are? If you have any suggestions or comments please indicate below. It would be great if Parking and you could move it convenience of to Langley!! access First time was not easy Decrease in to find -­‐ but once you spending know to go 'on top' -­‐ it is much easier. Katelynne Katona is an excellent host and always makes us feel welcome. Her enthusiasm for her job is apparent and is reflected in her rapport with her employees and customers. Page
31 Free Response Questions from Contacts Surveys Respondents 4
5
6
9
11
12
16
17
23
27
30
31
32
33
34
37
39
Q#9. If you have not dined at the Earls on Top please explain why? I did not know it existed. Plus I live in North Vancouver so I would more likely go to Earls on Marine Drive.
Didn͛t get a chance yet
Don't live downtown.
I've only been to Earls On Top once. It was years ago and the waiter forgot our order. I'm not in that part of downtown much -­‐ more in Gastown or the West End -­‐ so I don't end up eating in that area...
I live in north van... I went to the north/west van location on marine drive. I don't know where Earls on Top is but I used to go to the location on Marine Drive in North Vancouver on regular basis. I have stopped going for good though because the music is so loud that I had to shout at my friend every time we went there. Once I completely lost my voice the next day so that sealed the deal for me and now we go elsewhere.
Just never got around to it, I don't usually go downtown that much.
Great location!
We usually go to restaurants on the North Shore.
I live in the North Shore, so I would go to the one on Marine Drive or the one on Lougheed Hwy.
Not Close to my house or office
I live on the North Shore and usually go to the Earl's on Marine Drive.
only like Asian food
I just did not have chance to get there, but I would like to go someday since I've heard that the Earls is really good.
not close enough to my house
Not within my activity perimeter
2
6
9
11
12
15
16
17
21
Q#12. Please indicate any other suggestions that would bring you to Earls on Top more often. Easier access to parking
If I lived downtown and their menu or drinks were cheaper.
No farmed salmon.
Specials ;)
I rarely find myself dining out in that neck of the woods. Maybe discounts? not really fitting to the company image but it attracts students
The menu items are always the same, try to switch it up every once in a while
As I said the music is very loud in the location at North Vancouver where I used to go at least once a month. Cheap drinks
Prices are not unreasonable, but there are lots of great places to eat in Vancouver for less!
Page
Respondents 32 22
23
27
28
32
39
Lower the price on drinks
Bigger patio and more drink specials
I answered 'Different atmosphere' in sometimes the music is too loud for you to be able to have a decent conversation with your friends or a date.
I find the noise level very loud and the fact that you don't take reservations a problem. Advertisement
Respondents
3
12
15
16
17
23
29
32
Q#13. Please indicate anything you would change or improve about the Earls on Top location.
The little tiny entrance stairwell.
Never been. Having them not hire based on looks
The music. I prefer Milestones now.
Haven't been there, so don't know.
same as above
Sometimes the music is overwhelmingly loud. My boyfriend and I went there for dinner one night and had to shout at each other from across the table because it was so loud.
Take reservation and carpet your floors.
Respondents
3
8
16
17
28
34
Q#17. If you answered disagree or strongly disagree to the previous question (18) do you have any suggestions to make Earls on Top easier to find?
More street level advertising.
more advertising/signage on the street below
Is Earls on Top the same as the regular Earls?
More advertising to let people who don't know the area where it is...
it is fine ok to find, but parking is always hard
Maybe more locations
6
9
16
21
28
34
35
39
Q#21. If you have dined out less in the last 6 months please indicate what the reasons for the decrease are?
Less money to spend on eating out.
Change of occupation.
I have started taking more courses at school so I don't have as much time to go out. Student life!
Poor student :(
busy with school, money problem
Economical reason. I am a student!!
conservation of budget
Page
Respondents
33 Respondents
9
12
17
20
22
26
27
Q#23. Thank you for taking the time to fill out the survey. If you have any suggestions or comments please indicate below.
Serve wild salmon and I'll consider eating at Earls again. Until farmed salmon is off the menu, so is Earls!
I have 2 friends that work there. They say it͛s very slow and they do not make very much money. I͛ve never been so I can͛t really give much opinion. On question 17, the question should say 'to the previous question (16)' not 18.
For question number 18 if it's the summer ya a patio does effect my choice on where I go. Right now it doesn't matter to me whether there is a patio or not. The clicking on number 8 didn't work. cheers Question #8 table wasn't working properly, I couldn't select some of the dots and have to go with N/A as my choice. I answered 'Different atmosphere' in Question 11, only because an answer was 'required'. I could not answer Question 11 properly because we have never been to Earls on Top. I would have answered 'N/A' if that option had been available. In Questions 18 and 22, the word 'effected' should be spelled 'affected'.
Interpretations and Conclusions from Free Response Questions Almost one third of respondents live in North Vancouver, and choose to dine somewhere closer than Earls on Top, such as Earls on Marine Drive. In addition, a few respondents commented about service, loud music, and not being aware of Earls on Top. Many respondents suggest lower prices for drinks and meals or discounts and specials will bring them to Earls on Top more often. Improving parking awareness, new menu items, and more effective street level advertisement are some other recommendations from respondents. It was Suggested improvements that Earls on Top can do is enlarge the stairwell, decrease the music volume, take reservations, and carpet the floor. Most respondents suggest that the best way to make Earls on Top easy to find is to put more street level advertising to increase awareness. Many of the respondents indicated they do not have money to spend on dining out because they are students. Based on open-­‐end question 13, people prefer wild salmon rather than farmed salmon. Page
34 Map of Respondents Contacts Page
35 Earls Clients Observation Results Observation #1 th
Tuesday October 26 between 12:00pm and 1:00pm Analysis and Interpretation Seats:Customers
Numer of Seats
Number of Customers
310
250
160
145
120
110
27
Earls Robson
125
92
23
108
16
Cactus Robson Cactus Bentall
Joeys Bentall
Earls Hornby
Moxies Robson
Business Level as Percent
Percentage
78.13%
38.71%
18.62%
Earls Robson
36.80%
20.91%
Cactus Robson Cactus Bentall
14.81%
Joeys Bentall
Earls Hornby
Moxies Robson
Secondary Observation Page
When reviewing the results from our first observation, there is some obvious insight into the business levels at Earls and competitor restaurants in the Robson Street area. The first is that the restaurants on Robson Street had significantly lower business levels compared to the restaurants in the business district. dŚĞƐĞĐŽŶĚŵĂŝŶŝŶƐŝŐŚƚŝƐƚŚĂƚƚŚĞĂƌůƐŽŶZŽďƐŽŶďƵƐŝŶĞƐƐůĞǀĞůŝƐ ƐŝŵŝůĂƌƚŽDŽdžŝĞ͛Ɛ'ƌŝůůĂŶĚĂĐƚƵƐ
Club on Robson Street. 36 Primary Observation Other downtown area restaurants like Joeys Bentall and Cactus Club Bentall had a line up during lunch rush. The observation was conducted on a cold day and the patio seats were used by some customers but ŶŽƚƚŽƉŽƚĞŶƚŝĂů͘/ƚǁĂƐŽďƐĞƌǀĞĚƚŚĂƚDŽdžŝĞ͛Ɛ'ƌŝůůŚĂĚĂLJŽƵŶŐĞƌĚĞŵŽŐƌĂƉŚŝĐĂƐǁĞůůĂƐǁŚĂƚĂƉƉĞĂƌĞĚ
to be more customers dining for pleasure. eg. Lunch Date Another comparison made was to observe the ratio of people in business attire to casual dress.
Customers in Business Attire as Percent
100.00%
50.00%
0.00%
Earls Robson Cactus Robson Cactus Bentall
Joeys Bentall
Earls Hornby Moxies Robson
Customers in Business Attire as Percent
Observation #2 Thursday November 5th between 6:00pm and 7:00pm ʹ During Canucks Game Analysis and Interpretation Seats:Customers
Capacity in Seats
Number of Customers
Business Level as Percent
310
Occupation by Percent
46.10%
41.80%
175
145
110
27.80%
108
28
46
Earls Robson
Cactus Robson
19.30%
30
Cactus Bentall
Moxies Robson
Earls Robson
Cactus Robson
Cactus Bentall
Moxies Robson
Page
The second observation reinforced the information that was obtained during the first observation. That is that the business levels at the competitor locations off of Robson Street are busier than Earls on Top, DŽdžŝĞ͛Ɛ ĂŶĚ ĂĐƚƵƐ ůƵď ŽŶ ZŽďƐŽŶ͘ ůƐŽ͕ ŽĨ ƚŚĞ three restaurants observed on Robson Street, Cactus Club was the busiest during the Canucks game. 37 Primary Observation MAP OF RESTAURANT LOCATIONS Page
38 Secondary Research VANCOUVER MARKET AREA PROFILES Downtown Vancouver Neighborhood Profile: BizMap BC Population According to the figure 2 showing the difference of residential population structure by age concerning three geographic scales, downtown Vancouver is comprised of significantly more young adults (aged 20-­‐34) and fewer children and seniors than the City of Vancouver and Metro Vancouver overall. In that case, a key question for restaurant owners there might be how to draw attentions from youngsters. Anything that could entice the modern and youthful clientele such as the inner ambiance, the style of setting, the type of dinning music or the images in their promotions will be necessarily taken into consideration. In addition, since the occupancy of several new high-­‐rise condominium buildings within the central area, ĚŽǁŶƚŽǁŶ͛ƐƌĞƐŝĚĞŶƚŝĂůƉŽƉƵůĂƚŝŽŶŝŶĐƌĞĂƐĞĚďLJ15.8% between 2001 and 2006, which is well above the average for the city or Metro Vancouver. Combined with other stimulus such as the immigration fuelled by the 2010 Olympics, the implementation of Canada Line rapid transit system or even employment growth due to expected economic recovery, Vancouver's downtown peninsula is expected to see a continuing population increase of 50% during the next 10 years, reaching 100,000 by 2021 (BizMap, 2009). Page
Downtown Vancouver has a broad mix of ethnicities in terms of cultures and languages. However, the visible majority seems to be residents of Eastern European heritage (14%), followed by Scottish, Irish, Chinese or local Canadian. With the diversity reflected by the multicultural environment of downtown, profiling the ideal clients as niche market with appropriate strategic planning including menu revision or special promotions should be one key factor to success, as you cannot be everything to everyone. Actually, Earls on Top 39 offers a variety of food including burgers, soups, sandwiches, pastas, steaks, and vegetarian options, but does not have a specific focus on one cuisine style which would easily differentiate Earls from other restaurants. Therefore, understanding the current distribution of major ethnic origins might help Earls to identify a more profitable market segment as well as future plan for business improvement. Besides the predictable population growth, the demographic is also likely to shift to increasingly higher average income levels shown in the figure 9. Due to the smaller proportion of residents who are under 15 or over 65 years of age, as well as the ĂƌĞĂ͛Ɛ ůŽǁ ƵŶĞŵƉůŽLJŵĞŶƚ
rate as a result of its primarily working-­‐age population and high education levels, per capita income of Downtown residents is also significantly higher compared to the rest of the region. Given the two positive trends, downtown restaurant owners are most likely to see a potential market growth with an increasing number of people who can afford and are also willing to constantly dine out in the downtown core. Although some people would claim that such reasons like packing issues or traffic congestion would probably discourage people from visiting downtown more often for dinning or shopping, the existing and potential downtown residents who also work there are still believed to prefer dinning near their work place for convenience and time restraint. Page
40 Household Spending Patterns in Downtown Vancouver Figure 13 shows that on average the Downtown neighbourhood (see map in Appendix # for specific description of area encompassed) spends less on food than Vancouver (BizMap, 2009). Specifically, the Downtown neighbourhood spends an average of $7,128 a year on food (BizMap, 2009). As the Downtown ĂƌĞĂ͛ƐƌĞƐŝĚĞŶƚƐĂƌĞƚŚĞƚĂrget market for Earls on Top, it is important to analyze the spending habits of these targeted individuals to gain insight into the possible size of the market and the opportunities within it. Downtown households spend a average of 11% of their annual expenditures, totalling $63,490, on food. City of Vancouver households spend an average 12% of $69,536,for the city of Vancouver and 11% of $73,044 for Metro Vancouver households (BizMap, 2009). The downtown percentage is less than both Vancouver and Metro Vancouver areas although not significantly. Figure 14 illustrates that food rd
expenditures are the 3 highest expenditure following personal taxes and shelter (BizMap, 2009). This research illustrates the importance individuals place on food in their daily spending. Earls On Top can benefit from this information by recognizing the opportunity, in terms of profit potential, in the amount of money households spend on food in comparison to personal care items, recreation, transportation excreta. Page
41 Occupations in the Downtown Neighborhood Earls On Top has identified part of their target market as partially consisting of professionals working in the Downtown area. According to BizMap BC, the top 3 occupational fields among Downtown residents are Sales and Service (at 22%), Business, Finance and Administrative (at 19%), and Management (at 14%). The individuals employed in all three of these fields are likely to attend business/client meetings in a restaurant setting. The research suggests that Earls On Top has strategically placed themselves in an area where their target customer ŝƐƉůĞŶƚŝĨƵůĂŵŽŶŐƚŚĞŽǁŶƚŽǁŶĂƌĞĂ͛ƐƌĞƐŝĚĞŶƚƐ͘ Robson Street Commercial Profile: BizMap BC Competitor Analysis Page
Table 2, shown above, illustrates the breakdown of retail and services businesses on Robson Street. Under the retail businesses category, Eating and Drinking places are the second highest in businesses on Robson Street at 29% and totaling ϰϱŝŶƚŚĞŶƵŵďĞƌŽĨƌĞƐƚĂƵƌĂŶƚƐ͘͞KŶĂƉĞƌĐĞŶƚĂŐĞďĂƐŝƐ͕ƚŚĞZŽďƐŽŶ^ƚƌĞĞƚ/
has proportionately nine times the amount of apparel and accessories stores than the city average, and 42 over twice as many eating and drinking places (BizMap, 2009)͘͟ dŚŝƐ ĨĂĐƚ ƚĞůůƐ ƵƐ ƚŚĂƚ ĂƌůƐ KŶ dŽƉ ŝƐ
situated in a highly competitive commercial area. Business Sizes Ɛ͕ ͞ZŽďƐŽŶ ^ƚƌĞĞƚ ŝƐ ŬŶŽǁŶ ĂƐ sĂŶĐŽƵǀĞƌ͛Ɛ ƉƌĞŵŝĞƌĞ ƐŚŽƉƉŝŶŐ
district, that attracts both local and destination shoppers from inside and outside the city (BizMap, 2009)͘͟ dŚŝƐ ŝƐ Ă ŚŝŐŚůLJ ĐŽŵƉĞƚŝƚŝǀĞ
commercial area as BizMap BC reports that; ͞ĞƚǁĞĞŶ ϴ͕ϬϬϬ ĂŶĚ
15,000 vehicles and countless transit buses pass through the BIA per day, including people travelling to and from the downtown core of Vancouver. The busiest area for which the city has traffic counts is the 700 block of Burrard Street, which sees about 15,000 vehicles ƉĞƌĚĂLJĂŶĚƐƚĞĂĚLJŚŽƵƌůLJƚƌĂĨĨŝĐǀŽůƵŵĞƐĂƚǀĂƌŝŽƵƐƚŝŵĞƐƚŚƌŽƵŐŚŽƵƚƚŚĞĚĂLJ͘͟ĂƌůƐKŶdŽƉŝƐŽŶĞŽĨƚŚĞ
largest businesses on the Robson Street strip with over 100 employees (BizMap, 2009). The only other restaurant in this category is The Keg Steakhouse. Fastest growing Sub-­‐Industries Figure 6 provides a breakdown of the fastest changing Robson Street BIA sub-­‐industries, as defined by Statistics Canada (BizMap, 2009). Eating and drinking places are at the top of the table comprised of the Fastest Growing Sub-­‐Industries with an actual increase, between 2003 and 2008, of 7 businesses (BizMap, 2009). This research tells us that the competition for Earls on Top is increasing and the market is becoming more and more competitive. In order, for Earls on Top to retain market share in this area it is important for them to differentiate from their competitors and ramp up their street appeal. Page
ŝnjDĂƉ ƌĞƉŽƌƚƐ͕ ͞dŚĞ ZŽďƐŽŶ ^ƚƌĞĞƚ ƵƐŝŶĞƐƐ ƌĞĂ͛Ɛ ĚĞŵĂŶĚ ƉŽƚĞŶƚŝal comes from three primary sources: area residents, BIA employees and other employees in the surrounding area. In addition, businesses in the BIA are exposed to 8 million tourists a year and thousands of daily commuters and city residents travelling by SkyTrain, bus, bike and car. Each of these potential customer groups is discussed below. 43 Demand Potential DŽƌĞ ƚŚĂŶ ϳϵ͕ϬϬϬ ƌĞƐŝĚĞŶƚƐ ůŝǀĞ ǁŝƚŚŝŶ ƚŚĞ /͛Ɛ ƉƌŝŵĂƌLJ ĐĂƚĐŚŵĞŶƚ ĂƌĞĂϲ ĂŶĚ ƉƌŽǀŝĚĞ ƚŚĞ ƉƌŝŵĂƌLJ
market base for businesses. Residents in the Robson Street area are primarily of Chinese or English descent. English is by far the most dominant household language, spoken by 79% of residents. Other commonly heard languages include ŚŝŶĞƐĞ͕<ŽƌĞĂŶ͕WĞƌƐŝĂŶ͕:ĂƉĂŶĞƐĞĂŶĚ^ƉĂŶŝƐŚ͘ZŽďƐŽŶ͛ƐƌĞƐŝĚĞŶƚƐĂƌĞƉƌŝŵĂƌŝůLJĞŵƉůŽLJĞĚŝŶƐales and services work, and have lower than average annual household incomes compared with the city and region. Nearly half of residents have earned a University degree, which is also higher than the average for both areas. Household sizes in the area are significantly smaller than the city and Metro Vancouver average, with fewer married couples and less children per household. The neighborhood population is relatively mobile, with far fewer homeowners and more recent migrants in the past five years than is average for sĂŶĐŽƵǀĞƌ͘͟ Recommendations 1.
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Restaurants have begun to develop Facebook and Twitter groups in order to provide customers of their immediate offers and deals and helps to fill the void of regular marketing techniques being to expensive. (Tostenson, The Economy: The Future of the Restaurant Industry) Train employees internally rather than spending tons of money on recruiting, selecting and training new employees. (Tostenson, The Economy: The Future of the Restaurant Industry) Buy locally to support other businesses in the Canadian economy. (Tostenson, The Economy: The Future of the Restaurant Industry) In July 2009, the British Columbia economy shrank by almost 4.5%. This was in large part due to the decrease in consumer spending, manufacturing shipments, non residential construction, and international visitors. (Tostenson, The Economy: The Future of the Restaurant Industry) Decline in Restaurant Sales Page
"While fears of the economy might be an obvious response to the sharp decline seen in full service restaurants in December, the impact of record snowfalls are a more likely culprit in what was shaping up to be a fairly strong holiday season for the restaurant sector compared to other regions in North America. The data shows that diners were reluctant to venture out, and if they did, they opted for delivery or limited service options," said Brad Brooks, Director of Marketing for Vivonet. (Tostenson, The Economy: The Future of the Restaurant Industry) 44 In December 2008 many full service restaurants (fine and casual dining) sales dropped by 3.5%. Many people thought this was due to the economy beginning to decline, however, that was the month where there were record snowfalls. Most customers indicated that they just did not want venture out into the treacherous weather and preferred to order in instead causing an increase of 0.65% for limited service restaurants. Otherwise the restaurant industry was strong showing a 2.1% increase in November of 2008. In December sales in Metro Vancouver were down 3.4% and sales outside of the Lower Mainland were down 4.5%. (Tostenson, The Economy: The Future of the Restaurant Industry) (Zata Restaurant Index) The record for snowfall was set in 1964 at 89.7cm. In December 2008 Vancouver came close to breaking the snow record at 89 cm of snow. Going outside was dangerous and many people were stuck indoors due to the large snow piles covering their vehicles. (Ryan) Page
45 WORKS CITED Ryan, Denise. The Vancouver Sun. 01 01 2009. 13 <http://www.vancouversun.com/Lots+snow+record+December/1132232/story.html>. 11 2009 Sampling (Statistics). 17 November 2009. Wikimedia Foundation Inc. 19 November 2009 <http://en.wikipedia.org/wiki/Sampling_(statistics)>. Tostenson, Ian. "BC Restaurant and Food Service Industry." 03 02 2009. Facebook. 13 11 2009 <http://www.facebook.com/note.php?note_id=49468813035>. Ͷ. "The Economy: The Future of the Restaurant Industry." 2009. BC Restaurant News. 13 11 2009 <http://issuu.com/www.bcrn.com/docs/bcrn_online_july_2009-­‐
upload_version?viewMode=magazine&mode=embed>. Zata Restaurant Index. "www.bcrfa.com." 2009. 13 11 <http://www.bcrfa.com/Text/12344760468730050/uploadedFiles/1246560519052-­‐4108.pdf>. 2009 (n.d.). Earls restaurant & bar. Retrieved from http://www.earls.ca/about-­‐us/our-­‐history
(2009). Earls (Restaurant Chain). Wikipideia. http://en.wikipedia.org/wiki/Earls_(restaurant_chain)
Retrieved (2009, November 17) from BizMap. (2009, May 5). BizMap BC-­‐ Downtown Neighourhood Profile. Retrieved November 13, 2009, from BizMap BC-­‐ Vancouver Market Area Profiles: http://www.bizmapbc.com/index.html BizMap. (2009, May 5). BizMap BC-­‐ Robson Street Commercial Profile. Retrieved November 13, 2009, from BizMap BC-­‐ Vancouver Market Area Profiles: http://www.bizmapbc.com/index.html Page
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