Enivronmental Analysis Paper (Restaurant:Roys La Jolla)

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Environmental Analysis PaperRoy's La JollaOverview Roy's La Jolla is located in University Towne Center, the eastern part of La Jolla also known as the Golden Triangle. It is a fine dining restaurant originating in Hawaii, specializing in a Hawaiian Fusion cuisine and known for it's aloha spirit and warm friendly atmosphere. Hawaiian Fusion is defined as the use of traditional French cooking techniques, infused with bold Asian spices, with an emphasis on the freshest seafood. I will be addressing and identifying the salient aspects of the environment as they pertain to the market area of Roy's UTC location. The market area for Roy's refers to the combined areas of Pacific Beach, La Jolla, Del Mar, Encinitas, Oceanside, Mira Mesa, and Poway. General EnvironmentEconomic Dimension The state of our economy is salient to the restaurant industry in that it affects customer spending. The population size in San Diego is growing faster than the state average. The market area is projected to grow annually at a compounded rate of 1. percent to reach 04,550 by 005. Household size for the market area averages .17 which is 7 percent below the state average. The median household income of the Market Area was $50,50 in 000 and is projected to reach $60,000 by 005 (www.sdchamber.com). Despite the September 11th tragedy, the war on Iraq, and the SARS epidemic; the economy in San Diego has continued to show growth, although at a slower pace. San Diego's gross domestic product (GDP) is projected to increase by .5 percent in 00 (www.sdchamber.com). Although San Diego's economy has been mostly dominated by military and defense industries; telecommunications, computer software, biotechnology, and professional services industries are becoming increasingly dominant resulting in an increase in jobs and a boost to the economy. This means a higher demand for dining out whether it is business or pleasure. Due to the North American Free Trade Act agreement (NAFTA), international trade has generated billions of dollars for this region yearly. In addition, San Diego, "America's Finest City" is a popular destination for travel and tourism, an important aspect of it's growing economy. Visitors spend about 8 percent on dining out, almost as much as the 0 percent they spend on lodging. Technological Dimension There are many salient advances in technology that will make restaurant operations smoother and more efficient. There is a growing demand for more speedy meal service due to the increasingly fast-paced lifestyles in San Diego today. The use of the internet for operations like; information websites, online reservations, ordering takeout or carry-out meals, and managing office paperwork will be increasingly used by most restaurants in the future. Some companies developing this software are; Foodline.com based in New York and Micros Systems Inc. (Belman, Restaurant USA). The integration of point-of-sale (POS) systems with online reservation systems which can be used to provide a unique and specialized dining experience for each individual by recording guest information (preferences, frequency, etc.) into a database and having it accessible when needed (Panitz, Restaurant USA). The use of "smart appliances" in restaurants is projected to take place in the next five years. Appliances that will self-diagnose and alert an employee or even the appliance company itself when there is a problem or maintenance is needed. Appliances like "smart refrigerators" are in the works that will take inventory and order the items needed via an internet connection. Improvements in food flavoring technology and various methods of biotechnology to further enhance the appearance and shelf life of the produce will also gain popularity in the coming years (Panitz, Restaurant USA).Political/Legal Dimension In the restaurant industry, there are numerous rules and regulations that must be followed in order safely operate a public eating establishment. The Alcohol Beverage Control (ABC) is a big player in regulating the sales and consumption of alcoholic beverages. The ABC goes so far as to send undercover and/or underage agents into restaurants to ensure that the business is operating legitimately. These agents watch for underage consumption of alcohol as well as the allowance by an employee of over-consumption by a guest. Restaurants are legally held responsible for events that might occur as a result of the alcohol consumed in their establishment. Federal agencies like the Internal Revenue Service monitor payroll activities in addition to paying close attention to the amount of tips claimed by employees. The state of California has one of the highest wage rates in the nation currently at $6.75 per hour, an increase of more than forty percent since 16. The high wage rate in California results in fewer jobs, less hours, and fewer benefits (www.calrest.org). State agencies like the Fire Department and the San Diego Department of Public Health regulate safety in the restaurant by performing routine inspections on sanitation, food safety, and working conditions. Socialcultural Dimension Due to the high cost of living in San Diego, many two-income households occupy the market area. This trend suggests that time is a commodity and dining out is becoming more and more of a necessity. Many individuals today dine out as a source of entertainment, relaxation, and socialization. With the growing health awareness in Southern California, there is a rising demand for healthier meal options when dining out. It is beneficial for any San Diego business to have the ability to adapt to the diverse cultures inhabiting San Diego. For example, Southern California has a growing Hispanic population, therefore knowledge of the Spanish language is important in communicating with staff members and efficiently carrying out restaurant operations.

International Dimension The restaurant industry commonly uses ingredients and products that are imported from other countries. San Diego also sees many international travelers come through year round. Many are traveling to San Diego for business and others for pleasure.Task Environment Competitors The restaurant industry is not only costly but extremely competitive. There is a plethora of fine dining restaurants in La Jolla alone not to mention the surrounding areas. Roy's La Jolla is in direct competition with every fine dining restaurant, primarily those that specialize in seafood. Roys' competitors are Caf Japengo, 808 Restaurant, Roppongi, Tapenade, Crab Catcher, Chart House, Fish Market, Flemings, George's at the Cove, and Pacifica Del Mar. All of these restaurants pose as a threat in that they all consist of a fine dining atmosphere and are similar in menu prices. The two restaurants that pose the biggest threat for Roy's are Roppongi and 808 Restaurant. Both of these restaurants specialize in pacific rim style seafood dishes. 808 Restaurant is located just around the corner from Roy's in the Hyatt Aventine Center and their chef is world renown from Hawaii, much like Roy's founder, Roy Yamaguchi. Like Roy's, 808 offers various fresh fish and "sushi style" items. The other salient competitor is Roppongi, located in downtown La Jolla near the cove. Roppongi's corporate chef Steve Windows was formerly an executive chef at Roy's in Seattle, as a result, many of Roppongi's menu items are extremely similar if not the same as Roy's. Their price point is similar to Roy's as well as their capacity and quality.Customers Roy's La Jolla serves a diverse clientele ranging from twenty-five to fifty years in age. The Market Area of Roy's has an average annual disposable income of $56,000. The UTC area of La Jolla is occupied by numerous business parks and the large UTC mall. Because of this, Roy's caters to many business professionals and shoppers. Many women frequent Roy's because of their health conscious and light style of food. Patrons of Roy's La Jolla are generally middle to upper class due to the fine dining atmosphere, menu price, and strategic location. Regulators The Alcohol Beverage Control (ABC) requires that proper zoning, environmental, building, and liquor distribution permits be obtained in order to sell and serve alcohol in public establishments. These rules vary from state to state. The ABC takes measures to ensure that these rules are abided by, for instance, they send underage and undercover agents into restaurants to observe transactions to make sure that operations are legal and just. If they are not, suspension of a license may result and in some cases they may even revoke it completely. In which case, a restaurant cannot operate successfully. The Fire Department and the San Diego Department of Public Health also take part in regulating the restaurant industry. They conduct random health inspections grading items like, sanitation, proper refrigeration and storage of food, and proper cooking and food preparation techniques. The Labor Board and OSHA are also salient in that they provide rules to protect the rights, well-being, and equal opportunity of employees. Presently in California, an initiative has been proposed to change the method of assessing overtime pay in the restaurant industry (www.calrest.org). Currently, any employee exceeding eight hours of work in a day must receive payment at the overtime rate, normally time and a half. Strategic Allies The Outback Steakhouse Corporation is in a joint venture partnership with Roy's La Jolla.Outback Steakhouse Corp. owns 50 percent of the company. Suppliers Roy's La Jolla goes through numerous suppliers for their products. The most salient suppliers are; Sisco, Fish.com, Valley Isle Seafoods, Specialty Produce, Libby, Dudson, and Syracuse. Sisco provides Roy's with most of their dry goods like; canned food, dry food (flour, sugar, spices), and toiletries (toilet paper, paper towels, and soap). Much of Roy's fresh fish comes from Hawaii through two suppliers named Fish.com and Valley Isle Seafoods. The majority of Roy's produce is obtained locally from a San Diego company called Specialty Produce. Specialty Produce goes so far as to grow specific produce that Roy's needs that they may not already offer. Roy's china is distributed from Syracuse and Dudson. Lastly, silverware and glassware are ordered from Libby. Labor Market The restaurant industry is one of the nation's largest employers aside from government. In San Diego alone, services employ about thirty-five percent of the San Diego workforce. San Diego has many Universities, therefore the restaurant industry has a large labor pool of college students. Demographically speaking, the typical employee in food service occupation in 1 was 58% female, 5% were under the age of 0, 67% were single, and most worked only part-time.Labor Unions There are no salient labor unions at Roy's La Jolla.External Owners There are no salient external owners that do not take part in the day-to-day activities or policy setting. Internal EnvironmentOwners (internal) The Outback Steakhouse Corp. owns fifty percent of the company and is involved in business operations at Roy's. Roy Yamaguchi Enterprises owns the other fifty percent. Every Roy's restaurant has a "Managing Partner" and a "Chef Partner," these are like general manager positions only they own a small portion of the company as well as stock in the Outback Steakhouse Corporation. Fred and Myrtle Lee along with Vince and Judy Sykes are original investors in Roy Yamaguchi Enterprises, but Roy Yamaguchi himself is the majority shareholder. Board of Directors The Board of Directors consists of five members Chris Sullivan - founder and CEO of Outback Steakhouse, Bob Merritt - CFO of Outback Steakhouse, Roy Yamaguchi - founder and CEO of Roy Yamaguchi Enterprises, Terry Lee - Roy's corporate attorney, and Carl Hayes - owner of a few Outback Steakhouse Restaurants.Employees Many of the front of the house employees transferred into Roy's La Jolla from other Roy's restaurants, primarily the Hawaii locations. These individuals help in instilling the aloha spirit in all of Roy's employees. The majority of the employees are male and single. Because Roy's is only open for dinner, many of the employees are college students between the ages of 1 and 8. Roy's emphasizes an "aloha" spirit and "ohana" (family) style of service. Organizational Culture Roy Yamaguchi's dream is to "create a Hawaiian Fusion culinary culture that perfectly harmonizes the most interesting aspects of the world's cuisines, delivers an irresistible dining experience, and work with good people in the spirit of ohana. Ohana is the Hawaiian word for family and means relationships that are genuine and supportive with deep feelings of belonging, caring, and trust (Roy's Training Manual). Roy's implements this goal using nine principles called "Roy's Way."Personal Principles1. Aloha - welcoming and acting toward people with genuine kindness, warmth, caring, and generous spirit.. Humility - accepting and appreciating good fortune with grace and showing quiet confidence.. Respect - having reverence for the diversity, individuality, rights, and worth of people.4. Kokua - being of service, telling the truth, and enhancing and protecting what is valued by others.5. Energy - having a sense of urgency to do what needs to be done. 6. Fun - enjoying work and doing it well.Performance Principles7. Quality - having very high standards and acting on them with conviction.8. Mastery - combining intensity, craftsmanship, creativity, good taste, and an understanding of the marketplace in order to create value.. Courage - being strong in difficult moments and honoring our ohana, history, traditions, and Roy's Way (Roy's Training Manual).Physical Work Environment Roy's La Jolla is a beautiful and colorful restaurant that has a warm island atmosphere. All the staff members take a great deal of pride in the restaurant and work hard to keep it clean and organized. Employees and management are provided with all the tools for success.

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