dennys project

8/13/2019 Dennys Project

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Alyssa Wilson

City: Amsterdam

Expanded Business Plan- 4.0 Market Analysis

4.1 Market Segmentation

1. Travelers/Tourists- This segment includes people from all over the world. People whovisit Amsterdam can include business people, international visitors and domestic visitors.

2. EldersElders like to eat breakfast real early in the morning. They like more traditionalDutch foods.

3. Middle Aged Adults/ChildrenUsually will take children or teens with them allthroughout the day for breakfast, lunch and dinner.

4. Young Adults- Stay up late studying or partying, who would take advantage of the 24hour service these restaurants provide.

Dennys is capable of serving to all income levels, races, and genders. It would be a good idea to do a market research survey or other marketing

method to determine what percentage of each of these would eat at a Dennys

restaurant in the Netherlands.

4.2Target Market Segment StrategyWhile the main target audience includes families with children and seniors age 50+, we would

like to widen the target market to include late night restaurant-goers. This includes late night

workers, college students and those traveling (mainly young adults). With such large target

audience, it is hard to reach everyone. Our marketing plan must focus on advertising having a

common factor of being open 24 hours. We will do this by social media, advertising at nearby

nightlife clubs and college institutions.

4.2.1 Market NeedsSince Amsterdam is one of the most visited locations from all around the world, there is a

high demand for foods from all nations. This allows expansion of restaurants to be

outsourced to this diverse city. There is a need for restaurants that are open for 24 hours

a day because there is a lot of nightlife in the area. Many of shops that are open 24 hoursare cafes which many people would want to go to a restaurant sometimes instead of a

caf.

Market trends


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Amsterdam has many visitors from all over the world making it very diverse. There are many

restaurants catering for many different tastes so every cuisine in every nation is wanted and

represented.

4.2.2 Market GrowthThe overall market grew at an average annual real 0.59% by value from 2006 to 2011,

and is forecast to grow by a real annual 1.41% from 2011 to 2014.

Real Annual % Growth 2010 - 2011Food Expenditure -0.3%

Non-Alcoholic Beverages -5.5%

Alcoholic Drinks 0.2%

All Food & Drink -0.9%

According to The Economist, the Dutchpeoplesweakness is consumer spending, but has been

falling for a year and a half. They are feeling poorer because of the housing market dropping,

homeowners have slowed their spending. House prices dropped by 6% last year and have fallen

by 16.6% from their peak. Once house prices hit bottom though, the economy will recover.

Their GDP shrank by almost 1% in 2012, and forecasters expect another 0.5% contraction this

year.

4.3Industry Analysis

Successful U.S. franchise operations in the Netherlands include McDonalds, Dominos Pizza,and Pizza Hut so the people who live there are somewhat familiar with U.S restaurants. Products

that sell well in the U.S. market will generally have market potential in the Netherlands. Dutch

buyers appreciate quality and service and are also interested in delivery price. Care must be takento assure that delivery dates will be met and that after-sales service will be promptly honored.


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The total retail market was 34.4 billion Euros and foodservice 6.4 billion Euros in 2011.

.

4.3.1 Industry Participants

American Food

Broodje Bert

Belushis

Harlem Soul Food

Downtown American Diner

Kapitein Zeppos24-hour Restaurants

Bojo - 24 hour Indonesian Cuisine

Brasserie Bark

Caf Restaurant De Ondeugd

CafThijssen

De Zotte


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East of Eden

Jazzcafe Alto

Kamer 401

IOpera Grand Caf

4.3.2 Distribution Patterns

The Dennys Franchise Association (DFA) has provided us with companies who

support the DFA and are used to source the different supplies used at Dennys and

restaurants. Dennys will receive its fresh foods from local farms and its frozen food

and commodities from a variety of suppliers such as Tyson and Heinz. For beverages

it is recommended to get it from Coca-Cola and Dr. Pepper-Snapple Co. As for the

furniture, AC Furniture Co. will supply us. This way it will make this Dennys a more

traditional American design and atmosphere. Kitchen supplies will come from Tundra

Specialties who has most of the products needed which also are supported by the

DFA. The food will be made at the restaurant and served to the customers by a

waiter.

4.3.3 Competition and Buying Patterns

As stated in the previous section, there are 5 other restaurants who are also American

themed. They however are not open 24 hours a day. As for the restaurants who are

open 24 hours a day are not American. This gives Dennys the best of both worlds

because it will be both. Broodje Bert has a American cuisine and serves breakfast and

lunch/brunch. Belushis serves Burgers and is also open late night but not 24 hours.

Harlem Soul Food serves American southern food such as fried chicken and corn.

Downtown American Diner is one of the main competitors because it is the closest

relation to Dennys. They both serve similar foods, but at our Dennys it will have anadvantage because we are adding on more traditional Dutch foods.

4.3.4 Main Competitors

Most restaurants open 24 hours are cafes. This gives Dennys a nice market to be in because if

people are really hungry in the night, they will go to a place that serves a variety of foods rather

than a small caf.

The main competitor is Kapitein Zeppos who serves lunch sandwiches, fish soup and other

seafood dishes and has a seasonal menu. In the area which we are planning to put the restaurant,there arentmany American food restaurants. This gives Dennys a nice advantage for less

competition.


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Sources

Interview: Alys De Vires- Lives in Holland contacted via phone & email

http://travel.aol.com/travel-guide/europe/the-netherlands/late-night-24-hour-feature-amsterdam-

restaurants/

http://www.buyusainfo.net/docs/x_5869807.pdf

http://www.amsterdam.info/restaurants/

http://goamsterdam.about.com/od/whattodoinamsterdam/ss/De-Wallen-Amsterdams-Red-Light-District_4.htm

http://www.economist.com/news/europe/21574028-imf-delivers-unexpected-message-dutch-

focus-growth

http://www.fft-geneva.com/country/Netherlands_Food_Drink_Markets_Synopsis.pdf
http://travel.aol.com/travel-guide/europe/the-netherlands/late-night-24-hour-feature-amsterdam-restaurants/http://travel.aol.com/travel-guide/europe/the-netherlands/late-night-24-hour-feature-amsterdam-restaurants/http://www.buyusainfo.net/docs/x_5869807.pdfhttp://www.amsterdam.info/restaurants/http://goamsterdam.about.com/od/whattodoinamsterdam/ss/De-Wallen-Amsterdams-Red-Light-District_4.htmhttp://goamsterdam.about.com/od/whattodoinamsterdam/ss/De-Wallen-Amsterdams-Red-Light-District_4.htmhttp://www.economist.com/news/europe/21574028-imf-delivers-unexpected-message-dutch-focus-growthhttp://www.economist.com/news/europe/21574028-imf-delivers-unexpected-message-dutch-focus-growthhttp://www.fft-geneva.com/country/Netherlands_Food_Drink_Markets_Synopsis.pdfhttp://www.fft-geneva.com/country/Netherlands_Food_Drink_Markets_Synopsis.pdfhttp://www.economist.com/news/europe/21574028-imf-delivers-unexpected-message-dutch-focus-growthhttp://www.economist.com/news/europe/21574028-imf-delivers-unexpected-message-dutch-focus-growthhttp://goamsterdam.about.com/od/whattodoinamsterdam/ss/De-Wallen-Amsterdams-Red-Light-District_4.htmhttp://goamsterdam.about.com/od/whattodoinamsterdam/ss/De-Wallen-Amsterdams-Red-Light-District_4.htmhttp://www.amsterdam.info/restaurants/http://www.buyusainfo.net/docs/x_5869807.pdfhttp://travel.aol.com/travel-guide/europe/the-netherlands/late-night-24-hour-feature-amsterdam-restaurants/http://travel.aol.com/travel-guide/europe/the-netherlands/late-night-24-hour-feature-amsterdam-restaurants/

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