Competitive Positions in Restaurant Business in Present-Day Conditions Based on the Example of Chernivtsi (Ukraine)

Abstract

Intensification of competition in restaurant business is accompanied by the emergence of a large number of competing dining establishments in both domestic and foreign markets, the increase of market requirements that force restaurants to continuously develop their strategic potentials, seek for various options for their effective work and create new competitive advantages. Availability of such advantages in restaurant industry is among the most important preconditions to obtain the surplus and develop business, which determines the relevance of the present research. Thus, the present study is aimed at demonstrating the ways of helping an increase of the competitiveness and efficiency in public catering establishments in present-day conditions of economic management. The authors discuss the concept of competitive advantages, analyse the results of the assessment of restaurant competitiveness (60 restaurants of Chernivtsi have been assessed), and suggest criteria to help rank the restaurant-type establishments of Chernivtsi by indicators of their competitiveness. The company’s total rating combines all important parameters (indicators) of financial and economic activity, marketing, investment, production activities, etc. Rating of competitiveness makes it possible to see which the best restaurants are, as well as to determine further goals and steps for those who gained fewer points. These goals and steps include: efficient use of available potential; definition and expansion of the range of products; up-to-date serving; development and introduction of new forms of service; development of customer-oriented complex of restaurant services based on the study of customers’ habits; increase of staff competitiveness; reduction of restaurant expenses; attraction of new customers by way of modern advertising campaigns, etc.