Problems and solutions to opening a restaurant in nha trang a research project presented in partial fulfillment of the requirements for ba degree

Problems and Solutions to Opening a Restaurant in Nha Trang A Research Project presented in Partial Fulfillment of the Requirements for BA Degree Submitted by : Dang Cong Thanh Subjec

Problems and Solutions to Opening a

Restaurant in Nha Trang

A Research Project presented in Partial Fulfillment of the

Requirements for BA Degree

Submitted by : Dang Cong Thanh Subject: Research Writing Instructor: Dr Nguyen Thanh Tuan

January 20, 2021

ABSTRACT

Nowadays, everyone think that if we don’t have work so how can they have money They decide open a restaurant to help them find a lot of money So opening restaurant is more and more popular in Vietnam, specially in Nha Trang When you open a restaurant you

will have a lot of problems, so this research will show you some important problems The literature review that will be discussed in this description is about the problems, the risk and the solution Data collection techniques were obtained by field research with survey observation method involving several informants The survey research design method was used in this study which involves using a self-design questionnaire in collecting data from group of respondents The instrument used in this study is multiple-choice questionnaire that was make by researcher This research try to help people easier to open a restaurant in

Nha Trang

ACKNOWLEDGEMENTS

In the process of completing this research paper, 1 have receive a lot of help, guidance from

teachers, friends and relatives

First of all, 1 would like to thanks to my lecture Dr Nguyen Thanh Tuan who given me a lot of knownledge, suggestion to do this research Professor Tuan is always willing to give

me some advices, helpful comments as well as correction of my research paper throughout the completition of this research

Next, 1m thankful to my sister who is always give me some advices, some example and corect my fault about the references items

In addition, 1°m thanks to my friends who are always supportive and give me comments that greatly

Lastly, 1 would also thank to Hong Bang International University bescause they have been created a helpful subject It can help me in the future if1 go to study abroad

Many thanks again to those who have help me

Dang Cong Thanh

TABLE OF CONTENT

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CHAPTER 1: INTRODUCTION 2 SH uye 6

Statement of the Problem -.- c ScS SH Hee 6 Background of the Problem - + +22 ssrsrsrrssrsxee 6 Purpose of the StUd\y cn HH HH 1121212 21c re 6 Significanceof the ŠfUdy ác H191 011111112112111 ray 6

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Problems when opening a restaurant in Nha Trang 8 Solutions of each probÌems c2 3219111211211 8 CHAPTER 3: METHODOLOGY 0 ceecceeeeeeeeeeeeeeeceeeneenenee 12

lu 08 0n 12 PATHICIDATẨS HH2 2 39 11211 11 1110111111111111111 111 1111111 xe 12 Sampling Techniques and MaterlaÌs ¿5 22s ssx>2 12 Research ProcedUres ác cc ch HH He 12 B1 88091 13 I2 0 PP 13 Reliability and ValIdify - ác cnc nhờ 13 Ra 13 CHAPTER 4: DATA ANALYSIS à SH re 14

CHAPTER 5: CONCLUSION SH ye 16

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LIST OF FIGURES

Chart 1: Respondent Ages Q.2 22222 nền nen sec s14

Chart 2: Which factors that you need to concern when you open a restaurant 15

CHAPTER 1: INTRODUCTION

Statement of the Problem This research is about the problems and solution to opening a restaurant in Nha Trang Nha Trang is become popular in Viet Nam and all around the word Nha Trang is one of the most liveable cities in Vietnam and Nha Trang always have more tourists to visit More and more restaurants are opening in Nha Trang So we will face a lot of difficulties and problems in opening a restaurant and how can we solve these problems This research wil show you that

Background of the Problem Nowadays, Nha Trang has a lot of restaurants Because Nha Trang is developing and try to become a best place to live in Vietnam Therefore, the food demand of people and tourists

is increasing More people are planning open a restaurant in this country and they will compete very fiercely

Purpose of the Study The purpose of the study is to help people know the risks of opening restaurants and to analyze the risks in more detail In addition, this study also aims to provide solutions for people who have had a restaurant, or are currently experiencing similar problems

Significance of the Study

In fact, the significance of the study can be considered very important Restaurant opening 1s now very popular in Nha Trang This research will be a part of helping young people who want to start a bussiness with a restaurant opening or who are bankrupt but still want

to open a restaurant agains to learn more about the problems they enconter and solutions to solve problems That they can do better than their predecessors

Research Questions

What are the risks and the problems when you open a restaurant in Nha Trang?

How to solve these problems?

Limitation This research paper is completed by collecting numerical information However, those data which supported the study is large so that it is difficult to control all aspects To have an accurate analysis, researcher need to get a lot of information done by finding data, books and some others in a limited time so that the research cannot be perfect

Delimitations

This study will focus on information from reliable articles, books and experience of some

people who have experienced it Only appropriate information and suitable variables that

fulfil this research will be included

Scope of the Study This study focuses on the problems when you opening the restaurant and the ways you solve these problems through a survey from another people who had been opened a

restaurant or who having plan to open a restaurant in the future

Summary The main objective of this research work is show the problems and help another people who want to open a restaurant in the future know and learn from experience

Chapter 2: LITERATURE REVIEW

Nha Trang Bay is one of 29 bays in the world which are recognized by club of the most beautiful bays in the world in July, 2003 So Nha Trang is developing in tourism More and more tourists know and visit it Based on these advantages, many restaurants are being opened They compete very fiercely Therefore, opening a restaurant in Nha Trang will face many problems and the risks (Stephen, 2014)

Picking the nght spot for your restaurant is absolutely vital to your success You need to choose a location that is easy to accessible to all people like near the beach, downtown or position right at the curves but avoids the competitor who serves cuisine like yours Make sure you research your target market and the competition so you can put your restaurant in just the right spot You need to pre-survey the rental locations of restaurant business to choose the right location A walk around where you need to rent is enough for you to get a grasp of the basic business situation of the stores operating nearby Understand the customs, habits and things that will affect your restaurant when operating You should also pay attention to the frequency and density of people moving Any premises with a large number of people moving will be the condition for good restaurant business

You need getting a lot of licences such as: liquor license, license for food safety and hygiene, business license, fire safety license, tax payment license, Getting all these licenses and getting your restaurant establishment the legal permission is a difficult task You need to have all the documents and then apply for the permit before the opening date

of your restaurant, it saves you from worrying about or delaying the business of your

restaurant

Your restaurant doesn't have a Unique Selling Proposition While a perfect menu and good customer service are the keys to a restaurant's success but without a unique selling point, it's just like any other restaurant At Nha Trang many restaurants have closed because it has

no unique selling point Your customers need to know why they should eat at your

restaurant A unique selling point that gives customers the feeling that they will remember you long after they leave Let your food, service, point of sale, and unique identities create your own identity and emotional connection with customers (Peters)

To finding the right suppliers.you can not finding suppliers that provide quality food products for you You should survey the suppliers of quality food for your restaurant to see what is good and what is bad before making a decision and you need research pricing and

payment terms

You have a problem with menu Is the menu too few or too many dishes? Is the price of the dish reasonable yet? Is the arrangement easy to see? A menu with too many dishes will make the kitchen more difficult to prepare, and the waiting time of customers will also increase (Hotel Propeller, 2019) Bottom line — your menu should speak to who you are and what your restaurant stands for while appealing to your demographic Update your menu and prices at least once a year.Build your menu around popular items.Make sure your staff is thoroughly trained and has memorized the menu

You must hiring and training staff A common problem is that many restaurants hire the wrong people and a high turnover rate An incompetent employee can also cause irreversible damage to your current and future customer base Pay more attention to finding the perfect staff and don't let your body get confused Once hiring, train your employees to the best possible way Please choose | to 2 people as "right arm", they will directly educate the rest and support the work at the shop when you are not present However, the job of the manager does not stop there, after choosing the candidate they like, they have to embark on the training

The problem with marketing They are always focused on other things that make them forget marketing is very important they don't have a media team they do not know how to design menu, restaurant logo They don't know how to advertise their restaurant to the public The trick is to learn from reviews or online guides Get more information from people who have opened a restaurant "how they can promote, introduce to people" Then, apply them to improve your restaurant Always listen and answer them and do your best to resolve the problem For an online presentation, you first need to have a restaurant website The website must be optimized and responsive for everything to give the customer exactly what they are looking for You must have a plan to open the restaurant When you open a

restaurant, you can send free party invitations to prominent people in your target audience (the restaurant time)

Finally, call for investment Finding an investor is very difficult, especially in the crowded restaurant market For many entrepreneurs, this is the biggest challenge to owning and keeping a restaurant open Be careful when estimating the amount of startup money you

need and don’t underestimate

These are the risks of opening a restaurant:

First of all,unsafe food Unfortunately, customers who eat unsatisfactory foods that lead to poisoning at your restaurant, you bear the full responsibility as medical bills and you are also being sued or stopped trading You and your employees should not only be aware of proper food storing, but should avoid serving spoiled food, recognize spoiled food so it is thrown out and not served, and keep close track of the temperatures at which your food is stored (Risks often occur when running a restaurant)

Secondly, damage caused by fire and explosion.All restaurants use on-site stoves, so the risk of fire is very likely to occur, especially when exposed to grease and nearby electrical sources One of the causes of fire and explosion is gas leaks, spread of oil and grease, and flammable objects near the kitchen If an explosion does occur, you will have to pay a lot

of costs for the damage you have caused To ensure safety, you always keep the kitchen

clean

Thirdly, food storage.The last risk to prepare for is related to how you store and stock your food If you aren’t educated on how to store the food, you may not know if food is spoiled and it might get served to customers This could means a loss in reputation and business income (Risks of Operating a Restaurant, 2013)

Fouthly, lack of experience in management.One of the main reasons restaurants close is lack of business acumen, lack of management and financial planning for each stage of the business You need to research and analyze thoroughly during this business phase You need to plan carefully and carefully over a period of about 6 months or more Or you can find yourself an expert in the restaurant business