Sylvia's Bar in Birmingham Essay Example | Topics and Well Written Essays - 1500 words

Sylvias hindrance in Birmingham - Essay ExampleSoon, even the popularity of the bar also worn away. Consequently, the main objective of this report has been to identify the issues surrounding the bar and to analyse the problems. It also aims at pass adequate suggestions to the company so that it can improve its profitability and recapture the lost popularity. Defining the step to the fore There are generally three reasons behind the pretermiture of a restaurant which include economic perspectives, marketing perspectives as well as managerial views. Among these three perspectives, most of the restaurants have been observed to fail because of the economic perspectives. The economic perspective can lead to failure of a restaurant because of the reasons such as lowered profits, weakened revenues and declining profits. The restaurants may also fail because of the marketing perspective wherein they may fail to make at any specified locations, deliberate strategic selection of reloca tion, adjusting with the changing demographics, meeting the unrealised collect for any sweet product or service, consolidation of the market in order to acquire new market share in the targeted regions as well as rearrangement of the product portfolio necessitating chosen unit closures. managerial perspective comprises the failures in the restaurants that occur because of the lack of competency within the managerial teams (Parsa & et. al., 2006). In the context of this compositors case study, it has been noted that Sylvia faces many significant issues that need to be resolved in order to enhance the sales of the company and to increase the profits as well. One of the main issues that the restaurant has been confronting is related to the cost on with the menu of the restaurant. The drinks as well as the food menu have been targeted at high severalise people and therefore it becomes difficult for the middle class people to dine in the restaurant and so the demand of the food ha s declined. Staffing has been the other vital issue related to Sylvias Bar. Since the restaurant employs the staffs who have end their education from South Birmingham College, these staffs generally demand higher pay in comparison to the normal staffs. In such circumstance, it can be stated that a significant amount of the money earned by the company goes to the staffs which is a noteworthy issue in Sylvia. The other main issue hampering the profitability of Sylvia Bar has been related to the modes of entertainment that the restaurant uses for the purpose of attracting the customers. The restaurant plays antiquated classic bands which belong to 1960s to 1990s. The old bands may be preferred by some of the customers but may not be the last-ditch choice for the youth. Competition is one of the marketing problems that tend to hamper the effectiveness of the companies thereby impacting upon the sales as well as the revenues of the company. It has been noted that during the initiation of the restaurants, there were no competitors of Sylvias Bar. However, in the recent quantify there are many local bars which cause a significant problem for the company. The attractiveness of the High Street has also been declining in the current times with young customers wanting to visit modish canal district. The companys customers as well as the staffs are also not much(prenominal) satisfied with the service offered by the company. Customers state that they dislike the weekend entertainment that