PATRICK DUGGAN

DARRYL BENJAMIN
INTRDUCTION TO MARKETING THEORY
PATRICK
DUGGAN
Business Proposal

AURORA

Executive Summary
Because of a stronger economy and a history of demand among customers 2014s
sales will be hitting a record high. According to the NRAs annual restaurant
forecast, sales are supposed to reach a high of $683.4 Billion, which is a $96.7
Billion increase form 2010. Today 47% of all food dollars spent by consumers is
spent at restaurant establishments. This a large increase form 1955 with was about
25%.
We anticipate that Aurora will appeal to a broad base of consumers. While we
expect to be frequented by all types of diners in both the residential and business
community, the concept should be particularly suited to specific demographic and
market conditions.
The menu, service style, and ambiance of Aurora has been created to appeal
primarily to adventurous diners while also appealing heavily to health-conscious
diners as well. The market should be inhabited by a moderate population, providing
a sufficient customer base of which to draw from. The location for Aurora was
selected because of the market similarities that exist between the proposed location
and the target market for the concept. The proposed location for Aurora is occupied
by mostly casual dining restaurant concepts and few fine dining concepts. Aurora
should be considered unique to its competition because of the major fact that it is a
dessert bar. We sell cocktails and other alcoholic beverages, as well as appetizers
and desserts. We are a Tapas style restaurant. Compared to the other restaurants
that are casual dining and fine dining with mostly seafood or bar & grill style
concepts.
The success of Aurora will be achieved by serving great food, providing friendly
service and employing an aggressive marketing plan to build customer traffic.
Management will endeavor to create and maintain a positive, appealing image for
the restaurant. This image will be consistently portrayed throughout all marketing
channels and sales promotions
Aurora will aggressively seek to build a database of our guests. Guests will have an
opportunity to be included in the database so they can participate in our promotions
such as contests/competitions, email lists, and birthday desserts, to name a few.
Aurora will respect our guest privacy by confidentially protecting personal
information we collect. Aurora will be using social media such as Facebook, Twitter,
and Instagram to reach out to our customers on a personal basis.
The Owner, Manager, and Assistant Manager will be responsible for identifying
community organizations such as churches, sports teams and other clubs located in
the market.
The concept of Aurora lends itself to obtain favorable benefits from strategic
business relationships. Our appeal as a moderately priced, casual-theme restaurant
positions us as a likely destination for tourists, and customers looking for a romantic
meal. In house marketing will be heavily promoted at Aurora. Management will
constantly find methods to promote the restaurant to our guests on a daily basis.
The Owner and General Manager will be entrusted with the task of generating
positive PR for Aurora. Likely solutions for advancing the restaurants public image
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may include the hiring of a public relations consultant or firm as deemed necessary
by the Owner. The restaurant will adopt an aggressive advertising strategy.

Industry Assessment
Restaurant Economy
Because of a stronger economy and a history of demand among customers 2014s
sales will be hitting a record high. According to the NRAs annual restaurant
forecast, sales are supposed to reach a high of $683.4 Billion, which is a $96.7
Billion increase form 2010. To break everything down we see that eating places
which includes table service and quick service restaurants, cafeterias and buffets,
and snack and non-alcoholic beverage bars sold $455.9 Billion. Bars and taverns
sold $20 Billion. Managed services sold $47.1 Billion. Lodging places sold $34.8
Billion. Retail, vending, recreation, and mobile sold $66.4 Billion. Non-commercial
restaurant services sold $56.6 Billion. And Military restaurant services sold $2.5
Billion. So in total all commercial restaurant services sold $624.3 Billion compared
to 2013 which was $586.7 billion.
Employment
According to the National Restaurant Association from 2009 the employment rate
for restaurant employees, 11.9 million, has increased 1.6 million in 2014 to 13.5
million. It is predicted that by 2024 the employment rate will be up to 14.8 million.
This year restaurant owners are focusing on retaining and recruiting employees.
There is a large projected job growth for restaurant employees between 2014 and
2024, in Florida there is predicted to be a 15% increase.
Table Service
The table service nominal sales growth for 2014 is at 2.6% which is a .3% increase
from 2013. The real sales growth is .2% which is only a .1% increase from 2013.
Table service operators have looked at their sales and have seen that in family
dining 27% are better than 2013, 66% are about the same as 2013, and 7% are
down from 2013. In casual dining 37% are better than 2013, 55% are about the
same as 2013, and 8% are down from 2013. And in fine dining 38% are better than
2013, 52% are about the same as 2013, and 10% are down from 2013.
The table service profitability in 2014 tells us a different story. In family dining 24%
are better than 2013, 43% are about the same as 2013, and 33% are down from
2013. In casual dining 31% are better than 2013, 44% are about the same as 2013,
and 25% are down from 2013. And in fine dining 32% are better than 2013, 51% are
about the same as 2013, and 17% are down from 2013, According to the National
Restaurant Association. This shows that aurora has a good chance of success due to
the fact that about 2/3 of casual dining restaurants are staying the same or doing
better than last year.
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In 2014 table service operators expect legislative & regulatory issues to pose a
problem. Items such as healthcare is now at 25% for family dining, 22% for casual
dining, and 16% for fine dining. While profitability is only at 2% for family dining, 4%
for casual dining, and 3% for fine dining.
Limited Service
According to the National Restaurant Association in 2014 the nominal sales growth
for limited service restaurants is 4%, for snack and non-alcoholic beverage bars is
5%, and for cafeterias, grill-buffets, and buffets is 2.5%. While the real sales growth
for limited service restaurants is 2.1%, for snack and non-alcoholic beverage bars is
2.7%, and for cafeterias, grill-buffets, and buffets is 0.1%. The limited service sales
in 2014 for quick service restaurants is 29% better than 2013, 62% about the same
as 2013, and 9% are down from 2013. While fast casual restaurants are 55% better
than 2013, 40% are about the same as 2013, and 5% are down from 2013. Limited
service profitability in 2014 for quick service restaurants is 22% better than 2013,
38% are about the same as 2013, and 40% are down from 2013. While fast casual
dining is 50% better than 2013, 34% are about the same as 2013, and 16% are
down from 2013.
In 2014 limited service restaurants expect legislative & regulatory issues to pose a
problem. For example the health care reform for quick service restaurants is at 42%
and for fast casual it is at 9%.
Consumer Trends
Today 47% of all food dollars spent by consumers is spent at restaurant
establishments. This a large increase form 1955 with was about 25%. This tells us
that more and more customers are choosing to eat out rather than in.
Smartphones are a huge trend being used by consumers today. According to the
National Restaurant Association 67% of consumers say that they would use their
smartphone to lookup locations and directions, 52% would use it to order takeout or
delivery, 50% would use it for rewards or special deals, 46% would use it to make a
reservation, 42% would use it to look up nutrition information, and 24% would use it
to pay for a meal. This information is beneficial to Aurora because we will be using
special deals and reward programs that work with smart phones. We will also have
all of our nutritional information on our website.
Restaurant Trends
A lot of restaurants are starting to use more technology. Restaurants that would use
customer-facing technology would be 41% or family dining, 50% casual dining, 51%
fine dining, 43% quick service, and 57% fast casual. Restaurants that would use
Front-of-the-house technology would be 28% of family dining, 35% casual dining,
23% fine dining, 39% quick service, and 47% fast casual. Restaurants that would
use back-of-the-house technology would be 24% of family dining, 30% casual
dining, 19% fine dining, 33% quick service, and 38% fast casual.
Social media has been around for some time and is a great place to connect to your
customers. According to the National Restaurant Association family dining
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restaurants are 13% active on social media, 6% are somewhat active, and 19% are
not active at all. Casual dining restaurants are 36% active on social media, 58% are
somewhat active, and 6% are not active at all. Fine dining restaurants are 35%
active on social media, 59% are somewhat active, and 6% are not active at all.
Quick service restaurants are 31% active on social media, 52% are somewhat
active, and 16% are not active at all. Lastly, fast casual restaurants are 40% active
on social media, 49% are somewhat active, and 11% are not active at all. Aurora
plans to be active on social media platforms where we will post events and pictures
to encourage customers to come in.
Food and Menu Trends
Farm to table is a new trend that is very hot. According to the National Restaurant
Association 72% percent of customers in family dining, 73% in casual dining, 91% in
fine dining, 50% in quick service, and 70% in fast-casual say that they are more
interested in locally sourced items. 81% of all adults take notice of more healthy
options available compared to two years ago. About 72% of adults say that they are
more likely to visit a restaurant that offers healthy options.
The top 5 menu trends in table service restaurants in 2014 are locally-sourced meat
and seafood, locally-grown produce, environmental sustainability, healthful kids
meals, and gluten-free cuisine. In quick service restaurants the top 5 menu trends of
2014 are gluten-free items, healthful kids meals, spicy items, fruit/vegetable sides
in kids meals, and locally-sourced produce.

Target Market
We anticipate that Aurora will appeal to a broad base of consumers. While we
expect to be frequented by all types of diners in both the residential and business
community, the concept should be particularly suited to specific demographic and
market conditions. The location selected for Aurora should contain characteristics
similar to the targeted market for the restaurant.
The menu, service style and ambiance of Aurora has been created to appeal
primarily to adventurous diners while also appealing heavily to health-conscious
diners as well. The concept should especially attract middle income diners with a
blend of single and family households.
The market should be inhabited by a moderate population, providing a sufficient
customer base of which to draw from. The immediate surrounding area should have
a predominance of single family housing. Preferably, the area should include a
moderate industrial market. The concept depends on the general business
community. Dinner traffic will be directly affected by the size of the business
community.
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Preferable demographic and market characteristics for Aurora have been identified
and summarized in the following table.
Market Characteristic
Population City
Head of household age
Ethnicity (greatest to least)
Household income
Primary diner trait
Secondary diner trait
Major Industry base
Businesses 1 mile radius
Businesses 3 mile radius
Alcoholic Beverage Service

Preference
347,645
34-40
White, African American, Hispanic
Majority income is between $50,000$75,000
Adventurous
health-conscious
Construction
Shopping facilities, Restaurants, hotels
Hotels, Restaurants
No restrictions

Location Analysis
The location for Aurora was selected because of the market similarities that exist
between the proposed location and the target market for the concept. The city of
Tampa Florida has a population of 352,957 according to the U.S. Census Report
Leading industry segments include trade/transportation/utilities, professional and
business service, education and health service, leisure and hospitality, and
government. Transportation brings in lots of tourists coming down to enjoy the
sunny weather and the beaches as well as the theme parks. A lot of major
businesses are looking to settle in Tampa Florida as their regional headquarters.
Tourism is a major part of the local economy. The tourist market in Tampa Florida
brings 13.9 million visitors annually, contributing $4.4 billion to the local economy
which is a 15.6% increase from 2012. The industry provides approximately 65,028
jobs making it the leading job provider for the community. Aurora should benefit
handsomely from the tourist trade due to the unique concept intended to attract
visitors.
The residential population in the immediate area (within a one mile radius) is
comprised of a mixture of single family and multi-family housing. Key housing
developments that are considered vital to the success of Aurora include Post Rocky
point Apartments, Chase Suite Hotel, and Sailport Waterfront suites. The average
household income in the immediate area is $65,000-$70,000
Surrounding businesses include Bahama Breeze, Hogans Beach, Chart House, and
the Rusty Pelican of Tampa. The employment population within a one mile radius is
reported to be 17,000. The number of businesses in the area is 197,790. 50,465 of
which are office space or industrial.
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The following chart shows the market characteristics for the selected site.

Demographic & Business

Characteristics

1 mile

Residential Population
# of Households
Ethnicity Hispanic
Ethnicity African-American
Ethnicity White
Ethnicity Asian
Ethnicity Other
Household income
Total # of businesses
Office Bldg/Industrial Parks

1,590
859
4.2%
5.6%
85.6%
1.1%
3.5%
$63,885
20
10

Primary
Residential
Clusters
Post rocky point
apartments

# of
Dwellings
200

Single or
Multifamily
Single-family

# of
Primary Business Worker
Centers
s
West Florida division
hospital
URS Cooperation
Shriners Hospital for
Children

Type

Proximity to
restaurant
[ mile]

Proximity
to
restauran
t

200

Hospital

mile

450
425

industrial
Hospital

1/4 mile
1 mile

Competitive Analysis
The proposed location for Aurora is occupied by mostly casual dining restaurant
concepts and few fine dining concepts. The majority of existing restaurants are
comprised predominantly of casual theme concepts Restaurants that could be
considered in direct competition with our concept include The Rusty Pelican of
Tampa.

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The following chart displays restaurants within approximately a one mile range. It
includes all restaurants of significance including both limited service and full service
establishments.

Area Restaurants within a 1 Mile Range

Name
Bahama Breeze
The Rusty
Pelican of Tampa
Hogans Beach
Chart House
Crawdaddys
Whiskey Joes Bar
& Grill

Brkfst;Lunch;Di
nn

Type

Direct
Competiti
on

Casual service
Fine Dining

L,D
D

No
No

Casual Full Service

[Fine Dining]
Chain
Casual Serivce

L,D
D
L,D
L,D

No
No
No
No

Restaurants that might be considered direct competition for our target market
customers are listed in the next table. It is important to note that the restaurants
listed are not necessarily similar concepts to Aurora. However, we feel that we are
competing for a similar customer base.

Name

Check
Averag
e

Proximit
y

L,D

N/A

1 Mile

L,D

Lunch $10-$15
Dinner $10-$15

1 Mile

L,D

Lunch $10-$15
Dinner $10-$15

Mile

B; L;
D

Theme

Crawdaddys

Casual service;
chain restaurant

Hogans Beach

Casual bar style

restaurant

Bahama Breeze

Casual Theme
table service
featuring
Caribbean fare
and cocktails

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Name

B; L;
D

Theme

The Rusty Pelican of

Tampa

Fine dining;
American

Chart House

Fine dining
seafood
restaurant

Whiskey Joes Bar &

Grill

Casual dining

L,D

Check
Averag
e
Lunch $12-$18
Dinner $25-$30
Lunch$18-$25
Dinner$30-$50
N/A

Proximit
y
1 Mile

1 Mile
2 Miles

Aurora should be considered unique to its competition because of the major fact
that it is a dessert bar. We sell cocktails and other alcoholic beverages, as well as
appetizers and desserts. We are a Tapas style restaurant. Compared to the other
restaurants that are casual dining and fine dining with mostly seafood or bar & grill
style concepts.

Marketing Strategy Overview

The success of Aurora will be achieved by serving great food, providing friendly
service and employing an aggressive marketing plan to build customer traffic. We
offer playful exploration of a diverse tapas menu which will feature both appetizers
and desserts. We will feature seasonal and local ingredients with fresh herbs from
our rooftop garden. The drink selection is equally versatile with upscale cocktail so
and tasteful beers and wines. Intriguing todays market requires more than just
good food and service to make a restaurant successful. At Aurora we will constantly
strive to enthusiastically win more customers by being proactive rather than
reactive in our marketing efforts.
Management will endeavor to create and maintain a positive, appealing image for
the restaurant. This image will be consistently portrayed throughout all marketing
channels and sales promotions. The following exemplifies some of the tactics we will
use to drive more sales.

Customer Database
Aurora will aggressively seek to build a database of our guests. Guests will have an
opportunity to be included in the database so they can participate in our promotions
such as contests/competitions, email lists, and birthday desserts, to name a few.
The database will be gathered and maintained on Toast POS. We will gather names
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in a variety of manners including guest sign-up flier in check book, customer review
survey online, birthday sign up, and gift card information.
Aurora will respect our guest privacy by confidentially protecting personal
information we collect. See Appendices for our customer Privacy Policy:
Thank you for choosing to enjoy your next culinary experience at Aurora! The
privacy of our customers is of great importance to us, and we take many
precautions to make sure that your information is protected.
We want all of our customers to feel safe and secure when giving out your personal
information to our staff, and we have outlined our company privacy policy below in
order to ensure that you know exactly how and where your information will be
applied.
Collection and Use of Personal Information
Aurora collects personal information like names, addresses, email addresses,
Birthdays, etc. that are voluntarily submitted by our customers. The information you
provide is used to make you aware of any promotions that we are doing or if you
have a birthday dessert waiting for you. Aurora will not use your information for any
purposes outside of those that you request.
Distribution of Personal Information
We will disclose the information we maintain only when required by law, for
example, in response to a compromised debit/credit card. We also may disclose
such information in response to a law enforcement agency's request.
The owner and managers of Aurora who have access to personal information are
required to protect this information in a manner that is consistent with this privacy
policy. Only authorized employees who have agreed to keep all information
confidential and secure will be given access to any personal information.
Security of your Personal Information
Aurora is committed to protecting the security of your personal information. We use
a variety of security procedures to help protect your personal information from
unauthorized access, use, or disclosure. For example, we store the personal
information you provide on a computer system with limited access which is located
in a controlled facility.
Customer Version
At Aurora we want our customers to feel safe when providing us their personal
information. You will be happy to know that any and all information that we collect is
only viewed and used by the owner and managers of Aurora who have agreed to
our privacy policy. The information provided will be used for contacting you with
promotions that we will be holding and if you have a birthday dessert waiting for
your next visit. All of your personal information is also kept on one computer in a
secured facility in which only authorized people can get into it. We thank you for
choosing Aurora for your next culinary experience and if you would like to see our
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detailed customer privacy policy please ask your server or go to

www.auroratampa.com.

Social Media Campaign

Aurora will be using social media such as Facebook, Twitter, and Instagram to reach
out to our customers on a personal basis. We will only be using the three social
media websites because, as stated in the new rules of marketing and PR for most
people and organizations, its better to be active on a few social networking sites
instead of creating profiles on dozens of them and being too busy to spend much
time in any one. These sites will advertise any promotions that we will have in the
restaurant as well as sharing pictures of our delicious food and fun times with
customers. There will be table tents at each table which will have a QR code on
them for customers to scan and go to our events page of our website.
We will set up a mailing list which will include birthday and anniversary dates so
that when the occasion comes up we will send a personal card with a coupon for
their next visit for a free dessert or a percent off of your meal. We will seek the use
of the USPS to assist us in the implementation of the campaign.

Community/Charity Involvement
The Owner, Manager, and Assistant Manager will be responsible for identifying
community organizations such as churches, sports teams and other clubs located in
the market. Aurora will have an active role in the promotion of these organizations
through participation, donations and sponsorship. Representatives of Aurora will be
available from time to time to take active leadership roles when feasible.

Business Relationships
The concept of Aurora lends itself to obtain favorable benefits from strategic
business relationships. Our appeal as a moderately priced, casual-theme restaurant
positions us as a likely destination for tourists, and customers looking for a romantic
meal. Possible relationships include an affiliation with URS Industrial Group and the
Westin Tampa Hotel. The Owner and General Manager will actively pursue business
relationships that will be beneficial to Aurora.

4 Walls Marketing
In house marketing will be heavily promoted at Aurora. Management will constantly
find methods to promote the restaurant to our guests on a daily basis. Our staff will
be trained for and encouraged to promote suggestive selling techniques. Upselling
to our customers will be emphasized. We will also use table tents, check book
inserts, and table touching to advertise special events and to further promote
Aurora. The owner and fellow chefs will be trying out for competitions on the food
network to get experience and recognition but to also advertise for the restaurant,
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any and all of these episodes will be played for an extended period of time in the
restaurant.

Public Relations
The Owner and General Manager will be entrusted with the task of generating
positive PR for Aurora. Likely solutions for advancing the restaurants public image
may include the hiring of a public relations consultant or firm as deemed necessary
by the Owner. Possible publicity opportunities include news articles form
competitions that we will hold and charity events that we organize. Cooking demos
and even daily holidays will be utilized for special events which can bring customers
looking for an excuse to go out and enjoy a nice meal in which we can provide.
Special attention will be given to connect our community and charity involvement
with PR opportunities.

Advertising
The restaurant will adopt an aggressive advertising strategy. Outdoor signage for
Aurora will be using a large sign above the door which says aurora in white but with
a backlight of different colors, we will have street signage for walking patrons, and
limited paper advertisements in the windows.
Aurora will utilize traditional methods of advertising. Managements viewpoint on
advertising is we do not want to clutter the windows, walls, or outside of the
restaurant with paper advertisements because it takes away from the clean and
neat concept of aurora and no one will read all of them. As explained previously the
owner and chefs will be participating in food network competitions and performing
demos on local TV stations which will be shown on the TV in the restaurant. Other
forms of advertisement will be sidewalk art that advertises for the restaurant, social
media pages, and slots in travel guides for tourists.

Citations
1. Even, William E. "The Effect of the Tipped Minimum Wage on
Employees in the U.S. Restaurant Industry." Southern Economic
Journal 80.3 (2014): 633-55. JSTOR. Web. 20 Nov. 2014.
<http://www.jstor.org/stable/10.2307/23809644?ref=no-xroute:ccce9000123ced95311e1c85dd96666e>.
2. http://quickfacts.census.gov/qfd/states/12/1271000.html
3. http://www.city-data.com/city/Florida3.html
4. http://yourbusiness.azcentral.com/restaurant-public-relations-ideas3239.html

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