Question

What are 2-3 vulnerabilities that an upscale restaurant faces in the current high-end retail food industry?

What are 2-3 innovative opportunities can you think of that would help succeed in the shift towards take out service for an upscale restaurant?

Answer 1

Vulnerabilities that an upscale restaurant face in the current high end retail food Industry are as follows-

A. Changing economic cycle due to coronavirus concern and shutdown of business

B. lower turnout of customers and increased fixed cost are also leading to a higher amount of financial burden.

C. Increased competition in the space is another vulnerabilities that can lead to shifting of the market share.

Innovative opportunities that can help these restaurant are as follows-

A. They should be looking for cutting down on their operational cost and operational leverage.

B. They should be trying to lag the payments to the creditors and receive the payments from the debtors as early as possible in order to have a better cash conversion cycle.

C. They can also increase their Margin on products and provide various discounts related schemes.