Market and Environment Analysis for New Restaurant
Info: 9139 words (37 pages) Dissertation
Published: 9th Dec 2019
Tagged: BusinessBusiness Analysis
PLAN AND DATA/RESEARCH REQUIREMENTS
This report enlightens the data and information of the area concerning setting up a restaurant in Christchurch.
Executive summary
Purpose-The purpose of this report is about setting up Restaurant at Riccarton area in Christchurch City region in June 2017. The purpose of this business is to provide food, services and goods to the customers coming from international countries and from the local areas.
Scope/Overview of this report-This report is limited to one restaurant only setting up in Christchurch. Firstly, this report demonstrates you about the information of Christchurch Region which include population, location, climate, industry and climate. Secondly, I will tell about the Economic Environment of Christchurch City like inflation, exchange rates and economic growth rate. Thirdly, the social environment includes crime and corruption, Events and festivals and population growth rates of Christchurch City. Fourthly, I will reveal to you the business cost or the money that you need you to setup a successful restaurant in Christchurch City. Power, Gas, Minimum Wages Rates, City Rates and GST Cost are the one of the Examples for business cost. Besides, I will expound on the rental rates per square metre and estimated set up costs or budget that are needed to establish a restaurant in Christchurch city. Moreover, I will educate you regarding legal environment like rules and regulation that are needing to follow in the workplace. Then I will tell you how to manage your business financially by taking loans from the bank at best interest rates, ACC rules for employees and Kiwi -Saver responsibilities that are needed to be look at. Furthermore, we look at the competition that are available in the market and how to be better than them. Thus, general finish of this report is that eatery business is developing significantly in nowadays so it’s ideal to open an Eatery Business in Christchurch.
Table of content
Contents
Key Industries in Christchurch
New Zealand Economic Environment
New Zealand Business Confidence Rate-
Suppliers of Raw food and Liquor-
Two Example of Commercial Properties for sale.
Health and Safety in the Workplace-
Restaurants by cuisine / ethnicity-
INTRODUCTION
Purpose-The purpose of this report is about setting up Restaurant a in a certain area this report will tell you about which area of Christchurch is suitable for setting up a new restaurant.
Method Used- Method used in this report is mainly from internet.
Contents–
- Christchurch information
- Economic and social environment.
- Business cost in New Zealand
- Real estates and rents in Christchurch.
- Legal Environment.
- Finance accounting and business management.
- Competition.
Limitation-
Data in this report is sufficient to the data that are available on internet.
CHRISTCHURCH INFORMATION
General description
Population– According to the internet the population of Christchurch is estimated around 375,000 which was increase of 7300 people from month of June 2015 which means the growth rate is 2.0 percent which is city quickest development rate since 2003. The most significant reason of this population growth is because of migrants coming from the different countries like China and India. Around 6,000 people are migrated from the overseas to Christchurch in June 2016.
Location/Demographic- Riccarton is in Christchurch city situated west side of the city centre. Riccarton covers 1.2 percent population of Christchurch city population. In Riccarton 43 percent of the population is aged between 15 to 30 years old. The percentage of children in this area is 10 percent. The population of this area is increased from 9000 to 12000 between the period of 2001 and 2013. According to the statics New Zealand the population may increase to 15000 in coming next 5 years.
Map of Riccarton-
Climate- Christchurch has a dry temperature climate. In winter, it’s common for the temperature to go below 0 degree Celsius in the night. 70 days of year are ground frost. Snowfall may occur once or twice in hilly suburbs.
| Months | Climate |
| January, February, March, December | Nice weather and average good temperature. |
| January | Warmest |
| July | Coolest, wettest |
| September | Driest Month. |
Industry- Hospitality industry plays a vital role in Christchurch. Hospitality industry is the spine for New Zealand economy. Hospitality industry provide accommodation and food service to locals and people coming from the other countries.
Society- The Christchurch Include multicultural people like Kiwis, Maoris, Indian and Chinese. There are people from different religions regions and different backgrounds. There are two languages speak in New Zealand English and Maori But English is the key speaking language.
In 2011, New – Zealanders confronted most basic and sympathy earthquake to the city. It was magnitude 6.3 and cultivate city was crushed by that earthquake a considerable measure. However, after New-Zealand confronted that episode since that day New-Zealand government is attempting to get up the Christchurch city again as it was past. It will be taken an additional couple of years to get general completed of developments. There are still some areas who are still recovering from the earthquake like Riccarton if you want to setup a business now is best opportunities to establish a business.
Key Industries in Christchurch- The key industries of Christchurch include Hospitality industries, Agricultural, forestry, and fishing industries that play important in New Zealand economy. The construction industry will experience significant increases as the rebuild gains step.
The tourism and accommodation is the big part of the New Zealand. It is second biggest business in New Zealand providing 13% of economy to the government. People coming from other countries spend $8.7 billion on tourism and accommodation before the finishing of month June 2015.New Zealand tourism provide lots of accommodation choices in New Zealand from inexpensive budget accommodation to luxury accommodations.
Visitor Arrivals- Christchurch lost international visitor number because of earthquake (2011) but still there are number of international visitor coming from UK, Japan, Australia, USA and china which will now increase to 72% in April 2017.
| Country | Percent of total arrivals | Number of Arrivals | Growth (from previous year) |
| Australia | 41% | 1,385,000 | 6% |
| China | 12% | 406,000 | 24% |
| USA | 8% | 270,000 | 14% |
| UK | 6% | 216,000 | 8% |
| Japan | 3% | 97,000 | 13% |
| Germany | 3% | 92,000 | 13% |
Main entertainment locations
1 CBD– There are loads of various styles hotels and as CBD is a visitor spot so there are bunches of bars and the night life is additionally great.
2 Latimer Square– There is 4 star Rydges hotel at Latimer square where great service is available and one of most famous restaurant The Bloody Marry.
3 New Brighton – Due to the beach there are so many restaurants cafes and bars at New Brighton are available for entertainment.
POPULATION
VISITOR ARRIVALS
www.mbie.govt.nz/publications-research/publications/mbie…/bim-tourism-2016.pdf
KEY INDUSTRIES
https://www.newzealandnow.govt.nz/work-in-nz/nz-jobs-industries/tourism-hospitality-jobs
New Zealand Economic Environment–
The economy of New Zealand is a market economy which is that largely relies on upon Australia, USA, China, South Korea and Japan. For the most part, New-Zealand economy is lined up with Australian economy and it can be corrected because of some nearer financial relations understandings are marked between these two nations right now.
Inflation Rate- The prices of consumer are increases in New Zealand by 2.2 percent with upcoming years in the main quarter of 2017, up from a 1.3 percent pick up in the past period or more market desires of 2 percent. It was the most raised development rate since 2011.
Exchange Rate- The conversion scale it is anything but difficult to contrast and US dollar in view of that is the most effortless approach to demonstrate that. At present 1 NZ$ equivalents to 0.72120 US$. According to ANZ website the New Zealand Dollar must decrease against the US Dollar. Following Chart Shows you the Exchange Rates of different Nations.
| Currency Name | Currency Code | IMT(TT) | Foreign Cheques | Cash | IMT(TT) | Draft | Cash |
| AUSTRALIAN DOLLAR | AUD | 0.9732 | 0.9799 | 0.9917 | 0.9388 | 0.9359 | 0.9382 |
| US DOLLAR | USD | 0.7404 | 0.7437 | 0.7644 | 0.7118 | 0.7091 | 0.7109 |
| EURO | EUR | 0.6675 | 0.6691 | 0.6892 | 0.6374 | 0.6349 | 0.6357 |
| POUND STERLING | GBP | 0.5852 | 0.5883 | 0.6030 | 0.5640 | 0.5601 | 0.5620 |
| CANADIAN DOLLAR | CAD | 0.9819 | 0.9819 | 1.0210 | 0.9442 | 0.9412 | 0.9417 |
| FIJI DOLLAR | FJD | 1.5488 | 1.6429 | 1.4517 | 1.4391 | 1.4405 | |
| HONG KONG DOLLAR | HKD | 5.7586 | 5.7812 | 5.9761 | 5.5443 | 5.5291 | 5.5347 |
| INDIAN RUPEE | INR | 47.6058 | 45.6177 | 45.4545 | |||
| PHILIPPINE PESO | PHP | 37.6380 | 35.3324 | 35.0805 | |||
| SINGAPORE DOLLAR | SGD | 1.0263 | 1.0304 | 1.0625 | 0.9861 | 0.9856 | 0.9841 |
Unemployment- In the first quarter of 2017 the unemployment rate is decreased to 4.9 percent from 5.2 percent from the previous years. In last 8 years, it is the second lowest unemployment rate. In New Zealand from 1985 to 2017 the normal unemployment rate is 6.11 percent. The most elevated unemployment rate is 11.20 percent in 1991 and least is 3.30 percent in 2007.
Economic Growth Rate- The rate of GDP development in Christchurch and Canterbury is step by step facilitating after earth quake however regardless we have an active local economy with yield at an abnormal rate.
Assessed GDP development in Christchurch in the 12 months to March was 4.7 percent, a little bit less from the past figure of 4.9 percent in the last quarter of 2014. Canterbury’s development rate was 4.3 percent, down from 4.5 percent beforehand. Both figures, in any case, were quietly over the national normal of 3.2 percent.
New Zealand Business Confidence Rate-
Business Confidence Index in New Zealand expanded to 14.9 in May of 2017 from 11 in the earlier month. It was the most abnormal amount since January 2017 as a net 15 percent of organizations were hopeful about the year ahead.
Economic Outlooks-
The financial cycle has achieved a develop arrange. Generally, sharp slowdowns have taken after. In any case, we don’t trust the cycle is going to move over and lapse because of local considerations. Credit related abundances are as a rule more effectively shortened, which reduces the chances of imbalances characteristics constructing further and eventually achieving an awful future remedy. Various support elements remain, which ought to enable yearly GDP development to float around 3% more than 2017.
INFLATION RATE-
https://tradingeconomics.com/new-zealand/inflation-cpi
UNEMPLOYMENT RATE-
https://tradingeconomics.com/new-zealand/unemployment-rate
ECONOMIC GROWTH RATE
www.cdc.org.nz/wp-content/uploads/…/Quarterly-Economic-Report-Q2-20151.pdf
EXCHANGE RATE
https://www.anz.co.nz/ratefee/forexchange.asp
ECONOMIC OUTLOOKS
https://www.anz.co.nz/about-us/economic-markets-research/economic-outlook/
BUSINESS CONFIDENCE RATE-
http://valeo-med.ru/new-zealand/business-confidence
Social Environment
Crime and Corruption- There is an organised crime and anti-corruption legislation passed recently to stop the illicit activities like money laundering, bribery and drugs related crime. This Legislation come into force on 1 January 2016 by order in council.
Following Charts shows you the crime rate in Christchurch-
Level of crime 46.51 Moderate
Crime increasing in the past 3 years 57.95 Moderate
Worries home broken and things stolen 43.18 Moderate
Worries being mugged or robbed 29.76 Low
Worries car stolen 34.88 Low
Worries things from car stolen 46.02 Moderate
Worries attacked 43.75 Moderate
Worries being insulted 40.91 Moderate
Problem people using or dealing drugs 43.18 Moderate
Problem property crimes such as vandalism and theft 58.52 Moderate
Problem violent crimes such as assault and armed robbery 43.75 Moderate
Problem corruption and bribery 24.40 Low
Safety in Christchurch
Safety walking alone during daylight 74.42 High
Safety walking alone during night 40.34 Moderate
NZ Society- New Zealand is multicultural country include all types of people coming from different countries. E: g Kiwis, Chinese, Indians and Maoris. There is people from different backgrounds, regions and countries. There are two languages speak in New Zealand one is Maori and another one is English.
Events and Festivals- There are many festivals or events celebrate throughout the year but Easter and Christmas are most famous ones in which the hospitality industries earn more and more profits and promote their business because more people travel from different countries to visit to New Zealand on these occasions. We can use different types of methods to promote business on these events like advertising.
Show Day– Show Day event is also very useful to promote business among the peoples. On this day, a thousand of people come from another country as well. So, when they come they surely needs an accommodation to stay and a good restaurant for dining. So, on this day we can advertise and promote business that more customers come into our restaurants and hotels.
Population Growth Rate – The number of inhabitants in Christchurch developed at 2.0 percent, which is the city’s quickest development rate since 2003. The populace is assessed to be 375,000, which is like the pre-seismic earthquake (2010) populace of 376,300.
The hugest segment of populace development for Christchurch is relocation, which is running at record highs. In the year to June 2016, a net 5,833 individuals moved to Christchurch from abroad.
Canterbury additionally stays one of the quickest developing areas in the nation with a populace of 600,100 and a development rate of 2.3 percent in the year to June 2016.
By and large, New Zealand developed at 2.1 percent to 4.7 million. Canterbury alongside Auckland, Waikato and Bay of Plenty represented 75 percent of New Zealand’s populace development in the previous year.
| Area | Year | Population |
| Christchurch | 2010 | 375,000 |
| New Zealand | 2015 | 4.596 million |
CRIME AND CORRUPTION
https://www.numbeo.com/crime/in/Christchurch
POPULATION GROWTH RATE
Business Costs-
Following table show you the different business costs in Christchurch-
| Service | Cost |
| Telecommunications | Spark Charges $99 for month which will support Internet, telephone and EFT-POS System. |
| Power | Depend on usage- 27.000 cents per kWh |
| Gas | Depend on Usage |
| Water | Depend on Usage |
Typical wages rate for the hospitality industry are:
| Jobs | National hourly rate |
| Duty Manager | $16.93 per hour |
| Bartender | $15.75 Per hour |
| Chefs | $18.11 Per hour |
| Bar Manager | $18.70 Per hour |
| Office administrator | $19.85 Per hour |
| Kitchen Hand | $15.75-18.00 Per hour |
Minimum Wages Rate– The legal minimum wage rate in New Zealand is $15.75 per hour for over 16 years old.
Salaries– Following table shows the salaries of different jobs per year-
| Jobs | Salaries per annum |
| Duty Manager | $42,565 Per annum |
| Bartender | $38,906 Per annum |
| Chefs | $43,423 Per annum |
| Bar Manger | $49,999 Per annum |
| Office Administrator | $52,998 Per annum |
In Christchurch, the city rates are lower than other cities For Example the parking cost you of 30 minutes to 1 hour cost you $15 but in Auckland its cost you around $25 dollar for the same time. The rubbish collection cost you around $5 in Christchurch but in Auckland its cost you $7.50. There are no water charges available in Christchurch but there are charges for water usage in Auckland depend on the usage. We also pay to city council for the sewage. The tanker waste fees is around $39 dollars.
- Southern Hospitality Limited.
- Catering Hardware.
- Canterbury Catering Equipment.
- Aitken & co.
- The Cook Shop.
Suppliers of Raw food and Liquor-
Trent’s and The Market Traders are the two big companies that supply raw food and Liquor to the Hospitality Establishments.
Advertisement media and costs–
Advertising media is the process of choosing the most efficient way to advertisement. Following charts shows the way of advertisements and cost of them-
| Way of advertisement | Cost |
| Newspapers | $1000 Dollars. |
| Televisions | $1800 Dollars cost more than Newspapers advertisement. |
| Trade me | Listing fee start from $39 dollars |
| Free of cost | |
| F.M Radio | $1200 Dollars |
| Bill Boards | $700 Dollars |
To get a Liquor License or a Manager Certificate first you need to get a LCQ certificate which will cost you around $300 or depend on the Colleges fees. After getting LCQ you need to have a 6-month experience in serving alcohol to the customer. Then you can apply for Manager Certificate in Christchurch City Council which will cost you $336 Dollars.
If you are applying for license for the sale and supply of Alcohol for an establishment that will cost you $1207 for a year.
All the establishments that are involved in manufacture, preparation, sales of food need to be registered with Christchurch City Council to get a permit to trade in a public place. Food Registration cost you $430 which include registration and verification fees for the period of 12 months. The Renewal cost you $330.
GST Cost– There is tax in New Zealand which applies on goods and services. It’s designed to be a broad-based system with few Exceptions. Exceptions that do exist incorporate rents gathered on private investment properties, donation and financial services.
For Example- If a Restaurant is Earning 60,000 per week there is 15% GST apply on that amount that you must pay to the Government. The 15% GST amount of 60,000 is $7,826 that you should pay to the Government.
NZ PAY RATES
LIQUOR LICENSE PRICES-
https://www.ccc.govt.nz/the-council/fees-and-charges/fees-compliance/
FOOD REGISTRATION COST
https://www.ccc.govt.nz/consents-and-licences/business-licences-and-consents/food
Per square metre rental for commercial premises in CBD is $350 to $400 per square metre per annum.
Te Aro $230-$260 sqm Per annum.
Thorndon $230-$270 sqm Per annum.
Two Example of Commercial Properties for sale.
1155 sq. metre of property for sale in Riccarton
15B Leslie Hills Drive
Riccarton
Christchurch City
Canterbury
1231 sq. metre of property for sale in CBD
65-67 Victoria Street
City Centre
Christchurch City
Canterbury
Setup Cost-
The setup cost of an establishment depends on the size of the establishment in square metre. If the establishment size is 500 sq. metre then the cost of per square metre is $350. That means 500 sq. metre multiply by 350 is equal to 1,75,000 which is actual setup cost or fit out of an establishment.
TIME– For setting up this restaurant and for employing staff, training them, and get approval from council it will take estimated time of year.
TWO COMERCIAL PROPERTY
SQUARE METRES RATES IN DIFFERENT LOCATIONS-
http://www.capitalrealty.co.nz/market-report/
Legal Environment.
Labour laws– Labour rights in New Zealand is covered by the Employment Relation Act 2000 which comes in commencement on 2nd October 2000 to build a productive employment relation at workplace and to give legal entitlements to the workers.
Minimum Pay– The legal minimum wage rate in New Zealand is $15.75 per hour for over 16 years old.
Holidays– Holidays entitlement are covered by The Holiday Act 2003 which comes into force on 1 April 2004. The purpose of this act to provide employees with minimum entitlements to –
- Annual holidays (4 weeks every 12 months).
- 11 Public Holidays.
- Sick Leave (5 days after 6 month).
- Bereavement Leave (3 days if someone dies)
- Parental Leave (18 weeks paid)
Overtime (time and a half)- If you work in establishment on a public holiday and more than your regular hours you employee need to pay you more than your regular pay rate.
Collective Bargaining– Collective bargaining is a process that you used for negotiating the conditions while signing the contract or working in an establishment.
Or
Collective Bargaining is a process to renew your collective employment agreement every year. Both Parties need to act in good faith while doing this process.
Health and Safety in the Workplace-
This act is come into force on 4th April 2016
The main purpose of health and safety in the workplace act 2015 is to provide safe environment to the worker by-
- Protecting workers from hazards.
- By promoting of health and safety rules.
We can decrease the harms in our working place by Minimising, isolate and eliminate the hazards.
Responsibility- All employees are responsible for health and safety at work.
Liquor Licensing–
The Object of the Act is that: (a) The deal, supply, and utilization of liquor ought to be embraced securely and mindfully; and (b) The damage caused by the exorbitant or unseemly utilization of liquor ought to be limited.
Human Rights Acts- The Human Right Act 1993 come into force on 1 February 1994. This act deals with discrimination happening at workplace.
The prohibited grounds of discrimination are-
- Gender.
- Marital status.
- Religious belief.
- Ethical Belief
- Colour.
- Race.
- Ethnic or national origins.
- Disability
- Age
- Political opinion.
- Employment Status.
- Family Status
- Sexual Orientation.
Health insurance-
Health insurance covers the part of the risk of a person including medical expenses. There are many companies in Christchurch that covers your health insurance are
- ACC for workers at workplaces.
- AA health Insurance.
- Southern Cross
Financial Business Management-
ACC rules for employers-
ACC means the Accident compensation corporation which covers medical expenses of an injury that either happen at work and at home.
The Duties of employers are-
- Play an important role in helping your employers.
- The knowledge of you incapacitated employee in workplace.
- Bringing down the expenses of preparing new staff to cover the part
- Helping confidence in your work environment by demonstrating representatives’ prosperity is critical
- Bringing down Work requires through the experience rating system.
ACC is supported by New Zealanders from gather on individuals’ acquiring, and vehicle costs and additionally paid by Government. The aggregate sum of ACC duties to pay is figured on the quantity of staff you utilize and their position, the business you work in and your cases history. ACC ascertains the sum for you and express the aggregate sum to be paid every year.
ACC is not for claiming money for injured only, ACC also tries to prevent accidents that happening at workplaces by promoting health And Safety act by putting posters of polices at workplaces.
Administrating of GST-
GST in New Zealand is intended to be an expansive based framework with couple of exclusions. Special cases that do exist incorporate rents gathered on private investment properties, gifts, valuable metals and money related administrations.
End-clients pay this assessment on every single subject great and administrations specifically, in that the price tag of products and ventures incorporates GST.
The current rate for GST successful from 1 October 2010 is 15%.
GST amount comes from the customers when the buy services and goods.
Example-A customer came into a restaurant and buy a $22 curry from the restaurant. That $22 dollars also covers the GST amount that Employer need to pay to government. The GST amount of $22 dollars is $2.87.
GST will not apply when you earn more than $60,000. You can get your GST return every 6 months or yearly.
Kiwi Saver Obligations-
The Kiwi Saver retirement plan is a simple and moderate path for individuals to put something aside for their retirement.
Subsidizes in endorsed Kiwi Saver plans collect – and develop – by:
- Employers making consistent reasoning’s from a worker’s compensation
- Compulsory manager commitments
- Government commitments
Deduct Kiwis aver part commitments from pay/compensation (from the principal pay after business starts) for new representatives that are naturally selected, or have picked in. The base part commitment is at present 3% (already 2%). Nonetheless, the worker can choose to contribute at a higher rate of either 4% or 8%.
Tipping-
Tipping in Hotel-Tipping is standard at inns in New Zealand, so tipping $1-$2 per bag carried and $1-$5 for room/cleaning specialist administration is a pleasant motion. On the off chance that the attendant helps you out or gives you outstanding administration, tipping $10-$15 is more than satisfactory.
Tipping in Restaurant- Restaurant Workers don’t work just for tips in New Zealand, so don’t feel obliged to leave a tip while paying your check. On the off chance that the administration was magnificent, leaving a 10% tip is more than liberal and your server or server will unquestionably welcome it.
Interest Rates on Loans-
Personal Loan
If you are taking a personal loan from ANZ Bank the interest rates are
| Less than $10,000 | 18.95% p.a. |
| $10,000 and more | 17.95% p.a. |
Plus, there is an approval fees of $250 dollar which will be added to the personal loan. And you get this money in one to two working days only.
Business loan-
The typical interest rate on a business loan is 11.75% per year in a ANZ bank and approval fees will be the 1 percent of the loan amount.
PERSONAL LOAN RATES
https://www.anz.co.nz/personal/loans/personal-loan/
BUSINESS LOAN RATES-
https://www.anz.co.nz/auxiliary/rates-fees-agreements/business/#Business banking rates
COMPETITION
Main Entertainments area-
The Main entertainment are CBD, Riccarton, Addington, Merivale and Ferry mead. Following table shows the number of hotels, restaurants, and cafe available in these areas.
| Area Names | Number of hotels | Number of restaurants |
| CBD | 66 | 151 |
| Riccarton | 38 | 104 |
| Merivale | 26 | 24 |
| Ferry mead | 209 | 17 |
The style of these numbers of restaurant and hotels are mainly modern type. Main entertainment areas, for example, CBD, Riccarton and Ferry mead and so on these are the principle centres of neighbourliness industry in Christchurch. For example, in these territories there are number of eateries, bars and hotels. In CBD, there are bunches of night clubs, for example, Merchants and specialists so for clubs and bars CBD is the best choice individuals can appreciate night life. In Riccarton, there are number of hotels like chateau on the park the most beautiful hotel in Christchurch and eateries and in Ferry mead there are assortment of bistros and eateries.
The Main competition for our opening business can be restaurant called prince of Persia which is located on Riccarton road.
Example of major chains-
Speights Ale is the one of the well-known bar and eatery in NZ. They spread everywhere throughout the New Zealand, for example, in Christchurch, Ashburton and numerous more places they are granted with Gold cordiality grant. Little India is the one the most popular Indian eatery well known for their various assortments of menu, for example, veggie lover and non-vegans.
Restaurants by cuisine / ethnicity-
As you know New Zealand is a multicultural country so there are number of cuisine/ethnicity restaurant which are related to specific culture. There are total 38 types of cuisines served in 747 restaurants. The migrants coming from another country will increase ethnicity in Christchurch.
For example, an Indian restaurant called Coriander’s Ethic Indian Restaurant got an Indian food and dishes but kiwis also would like to go there.
There is a restaurant called the Maxime Palace which specifically provide Chinese food only. And there is restaurant called The Casa Publica which is very famous for kiwi food.
Data on Restaurant sales-
New Zealand’s accommodation division experienced empowering development as bouncing back customer and business certainty had a noteworthy impact in the huge increment of the part’s yearly development rate over the earlier year. Across the nation deals for 2014 expanded by more than 6 percent to $7.6 billion Cafe and eatery deals experienced solid development, up by almost 10 percent.
There are total 577 listing of Cafes, bars and restaurant on sales on trade me in Christchurch including all type of restaurant like India, Chinese, Japanese, Kiwis restaurant.
EXAMPLE OF MENUS
Google image used for the examples.
DATA SALES OF RESTAURANT
NUMBER OF HOTELS AND RESTAURANTS
https://www.booking.com/index.en-us.html?aid=927311;sid=af7bc7404a04c4025756e8f9c9303408;click_from_logo=1
Dineout.co.nz
CONCLUSION
Overall, the Christchurch economy and the eatery industry is growing day by day. There are total 747 numbers of restaurant in areas of Christchurch for example CBD, Riccarton, Merivale and Ferry mead. But I think Riccarton is the best area to setup a new restaurant because this area got less competition there are only 38 restaurants and hardly a good entertainment area. In Riccarton, the economy is strong because more and more people are moving to that side of Christchurch in the future. The environment for setting up a business is lively. Set up Cost in this area is going to high but more you spend the easier is there to earn.
Issues, threats and opportunities
- High set up cost.
- Not too difficult to get rental building or space there are currently 28 commercial property are sale in Riccarton area.
- Existing strong Completion- Restaurant called prince of Persia.
- Opportunities- Due to lack of entertainment in this area it is profitable to set up a new business with high standard of entertainment
Recommendations-
Based on the findings of this report, I recommend opening a one high standard type of restaurant in Riccarton area. The main goal of this restaurant to attract kiwi customers as well as customers from other nations. The style of this establishment will meet the modern requirement by adapting new technology in restaurant. This restaurant should need an on-license to run this restaurant on extra trading hours. The style of menu is going to be simple which will provide the details of food items and ingredients that are available at restaurant. Opening Hours are from 9.00am to 1.00am every day.
Rules for opening new Business-For opening this new establishment, we need to check the city plans and consult with Environmental Health Officer to ensure premises are suitable. Then you need to make an appointment with an Alcohol Licensing Inspector to discuss the application for alcohol license. After that we need to check building requirement with building control officer. Submit of resource consent and building are required. After the premises is going to be constructed there is going to be an inspection of building. Final inspection is going to be done by EHO and alcohol Licensing and if satisfactory certificate of registration is going to be issued. Then premises are going to be open for business.
BUSINESS OPENING RULES
https://www.ccc.govt.nz/assets/Documents/Consents-and-Licences/business-licences-and-consents/Alcohol/NewRestaurantCafeBarCheckList-docs.pdf
REFERENCES-
POPULATION
VISITOR ARRIVALS
www.mbie.govt.nz/publications-research/publications/mbie…/bim-tourism-2016.pdf
INFLATION RATE-
https://tradingeconomics.com/new-zealand/inflation-cpi
UNEMPLOYMENT RATE-
https://tradingeconomics.com/new-zealand/unemployment-rate
ECONOMIC GROWTH RATE
www.cdc.org.nz/wp-content/uploads/…/Quarterly-Economic-Report-Q2-20151.pdf
KEY INDUSTRIES
https://www.newzealandnow.govt.nz/work-in-nz/nz-jobs-industries/tourism-hospitality-jobs
CRIME AND CORRUPTION
https://www.numbeo.com/crime/in/Christchurch
POPULATION GROWTH RATE
NZ PAY RATES
LIQUOR LICENSE PRICES-
https://www.ccc.govt.nz/the-council/fees-and-charges/fees-compliance/
FOOD REGISTRATION COST
https://www.ccc.govt.nz/consents-and-licences/business-licences-and-consents/food
BUSINESS CONFIDENCE RATE-
http://valeo-med.ru/new-zealand/business-confidence
SQUARE METRES RATES IN DIFFERENT LOCATIONS-
http://www.capitalrealty.co.nz/market-report/
PERSONAL LOAN RATES
https://www.anz.co.nz/personal/loans/personal-loan/
BUSINESS LOAN RATES-
https://www.anz.co.nz/auxiliary/rates-fees-agreements/business/#Business banking rates
NUMBER OF HOTELS AND RESTAURANTS
https://www.booking.com/index.en-us.html?aid=927311;sid=af7bc7404a04c4025756e8f9c9303408;click_from_logo=1
Dineout.co.nz
DATA SALES OF RESTAURANT
EXAMPLE OF MENUS
Google image used for the examples.
BUSINESS OPENING RULES
https://www.ccc.govt.nz/assets/Documents/Consents-and-Licences/business-licences-and-consents/Alcohol/NewRestaurantCafeBarCheckList-docs.pdf
Appendices
INLATION RATE- https://tradingeconomics.com/new-zealand/inflation-cpi
New Zealand Inflation Rate 1918-2017 | Data | Chart | Calendar | Forecast
New Zealand’s consumer prices increased by 2.2 percent year-on-year in the first quarter of 2017, up from a 1.3 percent gain in the previous period and above market expectations of 2 percent. It was the highest inflation rate since the third quarter of 2011, and was mainly explained by the food group, which rose 1.6 percent following a 0.6 percent upswing in the previous quarter; and by the transport component, which increased by 3.5 percent after a 1.0 percent decline. On a quarterly basis, consumer prices rose 1.0 percent following a 0.4 percent increase. Inflation Rate in New Zealand averaged 4.72 percent from 1918 until 2017, reaching an all-time high of 44 percent in the third quarter of 1918 and a record low of -15.30 percent in the first quarter of 1923.
1Y5Y10YMAX
GLOSSARY of terms
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