Emni Restaurant limited company

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Emni Restaurant is a limited company. The management of Emni understands the laws about businesses in operation and their responsibilities. One of the things that the law is cautious about is health and safety. To certify that they act on this law, the manager of Emni restaurant had employed chefs from India who were trained in America and had degrees in health and safety. As Emni’s chefs are from India, the law requires the manager of Emni to provide them with accommodation. If they decide to quit their job, they will have to return back to India. Emni gives their employer’s an equal amount of money so that they are satisfied, and so that they could stay in their jobs. The manager hires, good staff and they don’t judge them by where they are from. This is so that the customers that they get are fulfilled with the service that they get and so that they can come back again.

ECONOMIC FATCORS:

Economic factors include interest rates, exchange rates, competition and price (inflation). Interest rate is an important economic factor that affects the business environment. Interest rate represents the cost of borrowing. Interest rates have gone up three times in the past five months. This is affecting home owners as mortgage rates have also increased which is affecting their disposable income. Most of Emni’s customers are home owners and due to the current economic trend they are more engaged in paying their mortgage and are not so concerned about their leisure time, which includes eating out at restaurants. The increasing interest rate is stopping customers eating out at emni. Emni’s customers pay via credit card and the rise in interest rate is restricting them from using their credit cards.

After looking at the economic factors, it shows how extremely the external environment has affecting Emni. Although Emni is going through a tough year in making profit, they can stay ahead of these changes if they adapt to them by considering, for example, their prices and what they have to offer. Businesses need to be careful when it comes to price. Customers are price sensitive; because if there are any changes that Emni makes, it could result in a good or a bad way. Emni needs to avoid extremely lowering their prices; this is because the customers will see this as the restaurant losing its standard or quality in food.

We know that Emni could handle the economic changes well, by the way that they handled the credit crunch. During the time of the credit crunch, customers were not going into Emni as much, and if they did they would order less food. As a result, Emni weren’t making as much profit. By making this better Emni overcame this problem by giving special offers to the customers and by doing this they got more customers. This shows that Emni was pro-active and were ahead of all these changes. Another problem that emni was facing is the increasing inflation rate, this means that the cost of food has gone up. According to research by office of national statistics, the price of food has increased by 8.3% on average since the beginning of the year. The high cost of food is, by far highly the official rate of inflation.

Materials that Emni use on a regular basis, such as basmati rice, has increased by 42.1%, meat and fish has increased by 22.9% and vegetables have also gone up by 14.7%. On the other hand, ready made meals have gone down since January by 0.4%. This could affect Emni because their customers may want to buy their own food from a local supermarket and eat at home instead of going to a restaurant.

As a result of these increases and the economic trend, the cost of production for Emni has gone up. It had also resulted in a lower profit margin than Emni originally forecasted. The implication of the current economic trend has channeled Emni into putting their expansion project on hold. It would not make economic sense for Emni to continue with the expansion project because a falling profit means that Emni is back into the business. Emni needs to strengthen what it already has which is the Emni Upper Street branch before expanding into Camden. The other outcome of Emni’s falling profit includes not opening the restaurant during lunch. As cost of production has gone up, Emni cannot make profit as quickly as intended. To even out the costs towards production, Emni can only serve enough food for the evening and not the afternoon.

POLITICAL FACTORS:

Political Factors being a partnership business, Emni must have considered political issues such as tax. Another political factor which affects Emni is the fact that they are not allowed to recycle. Emni claims that they could recycle more in a week than what an average sized family can recycle in a year. The government wants businesses, including restaurants, to pay for the amount of rubbish they make by buying bin bags which will then contain the restaurants rubbish. If Emni fails to do so, they have broken the Law and could risk going to court and paying the fine or losing their business. The money that the governments make out of this scheme goes towards the country’s welfare. This is very controversial as it is obvious that recycling waste material can benefit the world more than putting money towards the country’s welfare.

Emni is planning to expand to Camden, to do this there are many political factors that need to be considered, for example, Emni needs to obtain planning permission from the council, and without this it is impossible for Emni to expand. Expanding includes other costs as well, this cover the costs of: 1. furniture- Emni’s new branch must have a similar theme to the branch on Upper Street as it will help them become more recognized. Emni’s ambience and decorations bring about more customers and they need to maintain this in their new branch. 2. Cost of architecture- Emni needs to put costs towards hiring an architect to structure the new branch.

The new branch needs to be structured in a way that makes the building look attractive and will adjust to the comfort of all the people working for Emni, for example, it is necessary for the chefs and waiters to have easy access to the kitchen and dining area as it will make it easier for the waiters to serve customers. To ensure that this job is done quickly and efficiently, Emni have no other potion but to hire an architect.

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