The restaurant's industry is known to be highly competitive. The restaurateur needs to have a USP in the restaurant in order to do well. These days the competition has become so fierce that unless the restaurant doesn’t have a star chef, unique cuisine, there are high chances that the restaurant might not stand out in the crowd. For a beginner, gaining competitive edge requires a detailed research of the location, the target market and also the competitors. Many times, the restaurants do very well in the beginning but eventually fail to succeed in the long run and there can be various reasons for the same. One such example would be, Keystone Hospitality which is up for sale even though the restaurants are said to be operationally strong. The reason for their failure is that they took up a major expansion project two years ago and the money used for this project is what caused the problem along with Sydney lockout laws which lead to strain on their revenues (Brown & Tucker-Evans, 2016). “Competitive advantage means superior performance relative to other competitors in the same industry or superior performance relative to the industry average” (Barney, 1995). If related to the restaurant industry, it would mean that one particular restaurant does extremely well as compared to its competitors or it's doing much better as compared to the …show more content…
This is determined by the research which states that restaurateur prerequisites are the quality of food, acquiring volumes, nourishment, and wellbeing, communication with the shoppers and traceability of items. For customers, taste/freshness, maintainability, health advantages and validness are vital qualities of food (Visser, Zaken, Trienekens, Wageningen, & van Beek,