Introduction Jack Astors is one of the high end restaurant chains in Canada. It is owned by a company called Service Inspired Restaurants. They own many luxury restaurants across Canada, and even operate a Jack Astors in New York, USA.
Their mission statement is “to experience something different” which is shown through their innovative original recipes at many of their restaurants. Short Term GoalsTo open more restaurants across Canada and the United StatesLong Term Goalsincrease their revenue to at least 2.5 million in the next 5 to 7 years, after a stock rise of almost 50% going public in April 2017. Open restaurants in EuropeCountry Facts and StatisticsGeographic The total area of Switzerland is 41,277 sq km. Compared to Canada, which has a total area of 9,984,670 sq km, it has only 0.
41% of Canada’s area. Climatewise, the two countries are quite similar, both countries go through all four seasons, but parts of Canada do experience more harsh winters. DemographicSwitzerland’s population is about 8.3 million and the official languages that are spoken are German, Italian and French. The languages correspond with the bordering country. Switzerland has a majority of Christians and Roman Catholics, as they take up almost 68% of the population. Atheists follow them taking up almost 24% and other ethnicities such as Muslim, Jewish and other minorities make up the remaining 8%. Most of Switzerland is urbanized, only leaving about 25% of the population in rural zones.
The life expectancies of both males and females are relatively high, where both genders reach to at least 85 years of age. Economic Economically, Switzerland is a strong country. Its GDP per capita is about 64 287.74 francs which is about $81 865.97 USD and $101 937.07 CAD.
That means that 1 Swiss Franc is equal to about $1.29 CAD. Most of Switzerland’s GDP belongs to the material goods industry as it makes up 74% of the GDP.
Although the Swiss believe in equality, it is not as evident in the income distribution of the GDP as only 30% is actually distributed to its citizens. Most of Switzerland’s trade is with the EU but it also trades with China and the United States. Political ProfileGovernmentSwitzerland is a democratic country but unlike most countries which have just one president or prime minister, Switzerland has 7 Presidents as Head of State. Switzerland mostly trades with the European Union and it is also the third trading partner of the EU as well. As seen from the charts above, Switzerland mainly focuses its trade on goods such as machinery, watches and pharmaceuticals and also makes more profit from their trades, as most of the EU exports out balance the imports.
Political Issues and RisksThe Swiss government does not have just one leader, it has seven Heads of State. Their government is stable both politically and economically as they are uninvolved in most of the outstanding issues in the world such as war against militant countries. For that reason there is very little role of the military in the country as it is more mission based.
The main issue Switzerland faces again and again is that of the Swiss Bank. The banks’ strict laws on anonymity has caused many controversies, especially when it comes to law enforcement.Human RightsSwitzerland plays a major role in all human rights groups.
It is thought of as the center of human rights. It is also home to the UN headquarters in this area of expertise. Since it is such a neutral country, Switzerland places human rights at the core of the nation’s value system, as represented in the Federal Constitution and political model. The promotion of peace, mutual respect, equality and non-discrimination are the fundamentals to the country’s elections. Trade AgreementsSwitzerland is a part of the EU and are also a part of the EFTA.
Along with those Switzerland has many other trade agreements with countries worldwide. Market Assessment CultureSwitzerland, a lot like many other European countries, has a rich culture. It is a Christian-dominated country and therefore has many beautiful churches. Architecture, especially woodwork, is an appreciated skill. There are cantons, states, with many schools dedicated to the art. Another aesthetic that Switzerland is well known for is its scenic mountains also known as the Swiss Alps.
The country preaches about peace and its terrains speak the same. The nature has led to many activities such as mountain climbing and hiking. Lastly, Swiss chocolate plays a major role in Switzerland image. Chocolate brands such as Lindt and Toblerone are made up of purely Swiss chocolate. As mentioned before the values of the Swiss are simple but are meaningful as they value simple traits such as honesty and courage.
These values come from the story of William Tell, who is somewhat like Robin Hood as he saved all of Switzerland from an evil tyrant. But above all values, the Swiss place peace at the utmost position. They have always been a neutral country and have never participated in any of the world wars.
Even when it comes to clothing the Swiss are very sophisticated people. They do not wear extravagant clothes but instead stick to a more conservative fashion. When it comes to education, it is a very decentralized system. Although it follows the protocol of most European countries the rules vary according to the demographics of the country. For example, the Swiss with a German background do not believe in kindergarten or preschool. So in German populated areas kids start school at about 6 years old and in the first grade whereas the French and Italian populated areas prefer kindergarten. When it comes to doing business in Switzerland, it is important that foreigners are aware of the values presented above.
It is necessary that they dress in a conservative manner and provide a business card with all important information. But they should also know not to call a business professional after working hours as the Swiss value time with their family. As English is taught as a second language it has to be assumed that they will not be as fluent in that language as they will be in German, French or Italian. That is why it is important that business meeting be brief and to the point. The Swiss are not hard headed and will agree with what the other business professional has to say if they are being reasonable. Living and Working Conditions Switzerland does not have any type of minimum wage in place at the moment. The government had tried to place a minimum of 22 Euros an hour but that law was voted out by the public. So as of right now, wages are decided through collective bargaining.
The salaries for most people are relatively high when compared to those of other European countries but the cost of living is also just as high. Rates for homes are so high that most people choose to rent properties instead. Along with the expensive properties, health care is also just as costly. Most residents must take up an insurance plan to pay for their health needs. Even though it is an expensive route the quality of care is state of the art.
Hofstede FrameworkIn terms of the Hofstede’s framework, Switzerland is a highly individualistic country. That means it is highly competitive, especially in the workplace. This again differs in both German and French dominated regions. The Germans have a more strict and competitive environment and are more work-oriented than the French.
This also means that they are a masculine society. The Swiss are also very long term oriented. They are very easily adaptable to change. This reflects on their power distance, which is very low. This means that they minimize inequalities.
When it comes to uncertainty avoidance they have quite a neutral score which means that they are somewhat in the middle when it comes to dealing with uncertainty. International Market PlanProductSince the Swiss market is more on the sophisticated side, it would make sense to open a more luxury restaurant. Jack Astors is a perfect match for the people of Switzerland as it is family friendly.
Some products that would appeal to the different ethnicities vary in drinks, mains and desserts. When appealing to the German population some common foods and drinks that are quite common in Germany are sausages and of course their wide selection of alcohol, especially their beer. Jack Astors has an original burger called the Holy Smoke BBQ Burger. That burger can be replaced with a sausage hot dog which will be served with bacon pockets, which is a common German side.
Another dish that will focus on the French population will replace the “The Extreme Chocolate Fudge Cake” with a common French dessert called Petit Gâteau which is essentially a chocolate cake with a vanilla filling. Most of Jack Astors desserts have at least one chocolate component, and when trying to open a restaurant in the chocolate capital of the world, why not use Swiss chocolate. This way the opening of Jack Astors will give business to local chocolate businesses.
A last product to engage the Italian population is a replacement for a Jack Astors original, Asiago Chicken Bow-Ties. Instead of using the bow-tie pasta it will be replaced by Tortellini, a common Italian pasta. These three additions to the many will attract customers from many ethnicities since it is not just focused on one specific type of food.The only posing competition in the vicinity would be a popular sports bar called Carlton Restaurant. That franchise has locations all over Switzerland and has a similar concept to Jack Astors when it comes to menu, layout and target market.
PricingThe prices of the original menu items will just be converted to francs but the new items will have new prices as shown in the tables below:Sausage Hot Dog served with Bacon Pockets20-26 FrancPetit Gâteau10-13 FrancTortellini15-20 FrancThese prices are competitive to those of competing restaurants and are significantly cheaper but the prices will most probably be increased once a customer base is built. These prices may be higher than those of the Canadian stores but the working class in Switzerland also earn more than Canadians on a monthly basis. Promotional Strategy Before the opening of the restaurant billboards will be placed in busy areas to promote the new restaurant. Also taking into consideration the sophistication of the Swiss, advertisements in newspapers and the radio. The advertising will also have to be done in German, French and Italian to appeal to the different ethnic groups residing in Zurich. Place and Location Analysis Most Jack Astors franchises in Canada are located in highly dense commercial areas such as near shopping malls and theatres. It is made to be easily accessible.
That strategy should work in Switzerland as well. The franchise will be placed in Zurich since it is the most populated city and has a mix of cultures. It will also be convenient when it comes to transporting goods as it is a passing point for all flights, highways and railways in Switzerland. Since it is a restaurant there is no intermediate that it will have to go through and will have to appeal directly to customers. It will be placed in downtown so that everyone passing by will be made aware of a new restaurant coming. Operations and Resource PlanHuman ResourcesThe two types of jobs that will be needed would be chefs and a team of cooks, managers and waiters/waitresses. Managers will need some kind of background in management, preferably in food and service industries.
They must be able to enhance customer satisfaction, meet sales and profitability goals and manage staff effectively. Chefs will need to have a degree in the culinary arts or need to have done a course in professional cooking. They must be efficient enough to run a team of cooks and ensure that all food is made on time and tastes well. To make sure that the chef and cooks are aware of how to make all the recipes, a chef from one of the Canadian chains will be sent to train the cooking staff. Lastly, the waiters and waitresses will need to have good interpersonal skills and will have to be able to carry many orders at a time and be quick on their feet. They also must be able to interact with the kitchen staff to make sure that the orders are correct. In the end, it will be better if the restaurant is run by locals because that way the residents of Switzerland will feel more comfortable in case there is a problem with any kind of translation.
Organization, Operations and Store Layout As of right now, Jack Astors will present as a single restaurant and if it is successful franchising can be the next step. The restaurant will be open from 12pm to 1am. These timings are reasonable since it does not serve breakfast and it also includes a bar therefore the late closing. In Canada, the restaurant is open all days for the whole year. That would pose a problem in the Swiss community as they appreciate spending time with their families. Therefore, keeping that in mind, the restaurant will be closed on Good Friday, Easter, and Christmas day so that the employees can spend the holidays at home.
The stores in Canada consist of 3 sections: booths, long tables and a sports bar. That layout would also work well in Switzerland as it is accommodating to all types of people whether it be a small family, a large group or just a few friends. ConclusionIn conclusion, Jack Astors has the potential to do well in Switzerland given that it has a good management system in place.
It will have meals to appeal to people from all walks of life and it well priced compared to other restaurants in the surrounding area of downtown Zurich. Since most people in Switzerland work busy 9-5 jobs the restaurant business is really successful when it comes to tired people who need an affordable place to eat and relax. By following the marketing plan, Jack Astors should be able to maximize profit and become a household name in Switzerland.