22 J.M.'S SIGNATURE RESTAURANT
Joshua Mathew had just finished reviewing his accountant's evaluation of his plan to open a new high-class restaurant, J.M.'s Signature Restaurant, in the entertainment district in Toronto. He was troubled to see that his accountant considered his goals to be overly optimistic. Mathew, an experienced restaurant owner, had the idea for the new restaurant when he learned that a restaurant had recently failed in a location directly across from the Cedarcroft Centre, one of Toronto's largest and best known theatres. He liked the downtown location and the landlord was offering a very attractive lease. While the area was heavily populated with restaurants, Mathew felt the opportunity was too good to pass up - a great location with a low lease rate. He knew he would have to move quickly to obtain the space.
Based on his previous success in the restaurant business, Mathew had set a goal of $4 million in revenue in J.M.'s Signature Restaurant's first year of operations. However, he knew he should carefully review his plan in light of his accountant's comments to determine if he should move forward as well as determine the most appropriate marketing plan to ensure J.M.'s Signature Restaurant success.
Restaurant Industry
The total Canadian restaurant industry was estimated at $38 billion in annual sales with growth in the 2% to 4% range in recent years. The growth could be attributed, in part, to a shift in consumption patterns with more of the household food dollar being spent in the fast food segment. It was estimated that 15% of all personal expenditures were spent on food and 34.6% of every dollar spent on food was spent in restaurants. The industry was highly competitive with over 63,000 restaurants offering c ...