ppt on tao heung
TRANSCRIPT
-
8/13/2019 PPT on Tao Heung
1/22
TH Catering Holdings
Ltd.
3 Jun 2013
-
8/13/2019 PPT on Tao Heung
2/22
Summary
Chinese restaurant is a traditional industry in
which there are many inherent shortcomings
and flaws.
However, our client is renowned for the use ofinnovative marketing strategies and modern
management techniques in running this
traditional business.
2
-
8/13/2019 PPT on Tao Heung
3/22
Background
Vision:
Commit ourselves to enhance the image of Chinese
catering
We endeavor to advance abreast for a common goalwhere this business becomes the most esteemed
Chinese restaurant group, and lead to open up a new
direction for Chinese dining
Mission: to offer Delicious Food With Superior Value for Money
()
Cost leadership strategy3
-
8/13/2019 PPT on Tao Heung
4/22
Background
The first restaurant at Sai Wan
was established in 1990
Has built a network of more
than 102 restaurants in Hong
Kong (76+) and SouthernChina (26+)
4
-
8/13/2019 PPT on Tao Heung
5/22
Organization Chart
5
-
8/13/2019 PPT on Tao Heung
6/22
Problem Found Flu scare
The bird flu scare sparked by the emergence of a new
strain of the disease in Shanghai and adjacent provinces
While the Group's "$1 chicken" has been its signature
dish in the territory since 1996
Depressed consumer sentiment in the mainland is
concerned
Annual profit fell 14.5 percent last year
6
http://www.thestandard.com.hk/news_detail.asp?art_id=132707&con_type=1
-
8/13/2019 PPT on Tao Heung
7/22
Problem Found Cost
Increase Minimum-wage Ordinance
11% increase from last year, 29% of cost of goods sold.
Landlords has huge influence in the catering business
17% increase from last year, 27% of cost of goods sold.
Extra rent may be charged based on the restaurant's profit.
Landlords are more aggressive in neogiating terms when
compared with the SARS economic downturn.
Landlords may even suggest name changes, changes to the
dcor, the menu etc. for the prospective tenant. Landlords may discontinue the tenancy with
underperforming businesses.7
http://eileen-lian.com/?paged=35
Annual Report 2013 of the Group
-
8/13/2019 PPT on Tao Heung
8/22
Removing non-value-adding procedures and Centralize
production
https://www.youtube.com/watch?feature=player_detailpage
&v=WCN1zDaEuu4#t=34s
-
8/13/2019 PPT on Tao Heung
9/22
PESTEL
Political Factors
Government of Guangdong province intended to change the
manufacturing-based economy into high-value-added economy.
Food plants of livestock farms in Guangdong may need to
relocate
Economical Factors
Rental and labour market pressure because of severe inflation
Sociocultural Factors
Specialty recipes, quality of service, excellent atmosphere andfood safety
9
-
8/13/2019 PPT on Tao Heung
10/22
PESTEL
Technological Factors
ERP system for better supply chain management and profit
analysis
Benchmark gross profit each shop is around 60%
Rectify on shops with too much profit, to align with their objectives. Accredited for Environmental system & quality system
Environmental Factors
Sewage charges due to polluted water when washing foods &
dishes
Legal Factors
Minimum wage legislation
10
-
8/13/2019 PPT on Tao Heung
11/22
Porters Five Forces
The Bargaining power of suppliers
The raw materials are not unique and restaurants havealmost no switch costs to change suppliers. Substitutes arealways readily available
As a centralized food processing is established, largerpurchasing quantity can facilitate their negotiations on costadvantage
The Group can supply itself, lowering power of othersuppliers.
The Bargaining power of buyers Due to free of switch costs, the restaurants have to create
greater product and service differentiation by introducinginnovative recipe, and leveraging quality foods and services,in order to erode the bargaining power of buyers
11
-
8/13/2019 PPT on Tao Heung
12/22
Porters Five Forces
The Threat of potential new entrants
High expectation from consumers, in term of price,
quality, cuisine experience
Most of the investment is spent for decoration,facilities, and marketing activities. They are all sunk
costs that cannot be recovered. Economies of scale
also help establish barriers to entry.
12
-
8/13/2019 PPT on Tao Heung
13/22
Porters Five Forces
The Extent of competitive rivalry
Maxims Caterers, Federal Restaurants (), Ho
Choi Restaurant Group ()
The Threat of substitutes
various cuisineswestern, Japanese, South-east
Asian, fast food restaurants, or even at home etc.
13
-
8/13/2019 PPT on Tao Heung
14/22
Long Term Objectives
To be at prime locations hence enjoy high customer
flows and draw patronage of primarily affluent middle-
end diners.
To adopt a successful multi-brand strategy, with 15 key
brands under the Group. Each brand represents a
unique dining style and targets a specific clientele or
dining preference. As such, they can profitably co-exist in
popular dining areas.
Groups restaurant brands are also differentiated bytheir fine style and dcor, including staff uniforms,
tableware and interior decoration14
-
8/13/2019 PPT on Tao Heung
15/22
Active in their business
strategy Balance between Quality and ProfitThis is also related
to the restaurants mission and aim.
Consumer Concern versus Profit ConcernThe
restaurants management is dedicated in serving the
masses by maintaining very satisfactory customer
service.
(https://www.youtube.com/watch?feature=player_detai
lpage&v=WCN1zDaEuu4#t=160s)
Marketing and ResearchThe structured method of
marketing research has enabled countless of producers
and consumers alike to better understand their
relationship15
-
8/13/2019 PPT on Tao Heung
16/22
Recommendations (Cost
Control) Acquire livestock and plantation farms. Then
implement their own quality managementsystem in order to have fully control quality,better supply chain and confidence of
consumers;
Well used current strength - Centralized foodprocessingrelease space (~12% area) in therestaurants for profit-generation
Make use of utility rates discount
Management System for efficiency
5S Management16
-
8/13/2019 PPT on Tao Heung
17/22
17
-
8/13/2019 PPT on Tao Heung
18/22
5S Management
Sort (Seiri)
Straighten (Seiton)
Scrub (Seiso)
Standardize (Seiketsu) Sustain (Shitsuke)
18
-
8/13/2019 PPT on Tao Heung
19/22
-
8/13/2019 PPT on Tao Heung
20/22
Maslows Theory
20
-
8/13/2019 PPT on Tao Heung
21/22
Motivation
In order to retain staff, the company has a fair and well-structured
promotion platform, offers comprehensive training and links
salaries to achieving company objectives
Performance of junior chefs are concerned in appraising senior chefs.
With these policies, the Group hopes to emphasize long-term career
development, help our staff improve their skills and knowledge and
increase staffs morale and motivation
The Group attracts newcomers by offering higher salary levels for
front-line staff, -generally 10 to 15 per cent higher than industry
average.
Fulfill staff's drive to learn by encourage a learning culture
Staff is often less-educated in catering industry.
21
-
8/13/2019 PPT on Tao Heung
22/22
Q & A
Thank you!22