Problems and Solutions to Opening aRestaurant in Nha Trang - Tiếng anh chuyên ngành | Trường đại học Hồng Bàng

Problems and Solutions to Opening a Restaurant in Nha Trang
A Research Project presented in Partial Fulfillment of the Requirements for BA Degree Submitted by : Dang Cong Thanh Subject: Research Writing
Instructor: Dr. Nguyen Thanh Tuan January 20, 2021 1 ABSTRACT
Nowadays, everyone think that if we don’t have work so how can they have money. They
decide open a restaurant to help them find a lot of money. So opening restaurant is more
and more popular in Vietnam, specially in Nha Trang. When you open a restaurant you
will have a lot of problems, so this research will show you some important problems. The
literature review that will be discussed in this description is about the problems, the risk
and the solution. Data collection techniques were obtained by field research with survey
observation method involving several informants. The survey research design method was
used in this study which involves using a self-design questionnaire in collecting data from
group of respondents. The instrument used in this study is multiple-choice questionnaire
that was make by researcher. This research try to help people easier to open a restaurant in Nha Trang. 2 ACKNOWLEDGEMENTS
In the process of completing this research paper, i have receive a lot of help, guidance from
teachers, friends and relatives.
First of all, i would like to thanks to my lecture Dr. Nguyen Thanh Tuan who given me a
lot of knownledge, suggestion to do this research. Professor Tuan is always willing to give
me some advices, helpful comments as well as correction of my research paper throughout
the completition of this research.
Next , i’m thankful to my sister who is always give me some advices, some example and
corect my fault about the references items.
In addition, i’m thanks to my friends who are always supportive and give me comments that greatly.
Lastly, i would also thank to Hong Bang International University bescause they have been
created a helpful subject. It can help me in the future if i go to study abroad.
Many thanks again to those who have help me. Dang Cong Thanh 3 TABLE OF CONTENT
ABSTRACT............................................................................................2
ACKNOWLEDGEMENTS....................................................................3
TABLE OF CONTENT..........................................................................4
LIST OF FIGURE...................................................................................5
CHAPTER 1: INTRODUCTION...........................................................6
Statement of the Problem............................................................6
Background of the Problem.......................................................6
Purpose of the Study...................................................................6
Significanceof the Study.............................................................6
Research Questions.....................................................................6
Limitation...................................................................................7
Delimitation................................................................................7
Scope of the Study......................................................................7
Summary.....................................................................................7
CHAPTER 2: LITERATURE REVIEW………………………………8
Problems when opening a restaurant in Nha Trang....................8
Solutions of each problems.........................................................8
CHAPTER 3: METHODOLOGY.........................................................12
Research Design.........................................................................12
Participants.................................................................................12
Sampling Techniques and Materials..........................................12
Research Procedures..................................................................12
Data Collection..........................................................................13
Data Analysis.............................................................................13
Reliability and Validity.............................................................13
Summary...................................................................................13
CHAPTER 4: DATA ANALYSIS.......................................................14
CHAPTER 5: CONCLUSION............................................................16
REFERENCES.....................................................................................17
APPENDICES.....................................................................................18 4 LIST OF FIGURES
Chart 1: Respondent Ages...………………………………………………………..14
Chart 2: Which factors that you need to concern when you open a restaurant…….15 5 CHAPTER 1: INTRODUCTION
Statement of the Problem
This research is about the problems and solution to opening a restaurant in Nha Trang. Nha
Trang is become popular in Viet Nam and all around the word. Nha Trang is one of the
most liveable cities in Vietnam and Nha Trang always have more tourists to visit. More
and more restaurants are opening in Nha Trang. So we will face a lot of difficulties and
problems in opening a restaurant and how can we solve these problems. This research wil show you that.
Background of the Problem
Nowadays, Nha Trang has a lot of restaurants. Because Nha Trang is developing and try to
become a best place to live in Vietnam. Therefore, the food demand of people and tourists
is increasing. More people are planning open a restaurant in this country and they will compete very fiercely. Purpose of the Study
The purpose of the study is to help people know the risks of opening restaurants and to
analyze the risks in more detail. In addition, this study also aims to provide solutions for
people who have had a restaurant, or are currently experiencing similar problems.
Significance of the Study
In fact, the significance of the study can be considered very important. Restaurant opening
is now very popular in Nha Trang. This research will be a part of helping young people
who want to start a bussiness with a restaurant opening or who are bankrupt but still want
to open a restaurant agains to learn more about the problems they enconter and solutions to
solve problems. That they can do better than their predecessors. Research Questions
What are the risks and the problems when you open a restaurant in Nha Trang? How to solve these problems? 6 Limitation
This research paper is completed by collecting numerical information. However, those data
which supported the study is large so that it is difficult to control all aspects. To have an
accurate analysis, researcher need to get a lot of information done by finding data, books
and some others in a limited time so that the research cannot be perfect. Delimitations
This study will focus on information from reliable articles, books and experience of some
people who have experienced it. Only appropriate information and suitable variables that
fulfil this research will be included Scope of the Study
This study focuses on the problems when you opening the restaurant and the ways you
solve these problems through a survey from another people who had been opened a
restaurant or who having plan to open a restaurant in the future Summary
The main objective of this research work is show the problems and help another people
who want to open a restaurant in the future know and learn from experience. 7
Chapter 2: LITERATURE REVIEW
Nha Trang Bay is one of 29 bays in the world which are recognized by club of the most
beautiful bays in the world in July, 2003. So Nha Trang is developing in tourism. More and
more tourists know and visit it. Based on these advantages, many restaurants are being
opened. They compete very fiercely. Therefore, opening a restaurant in Nha Trang will
face many problems and the risks. (Stephen, 2014)
Picking the right spot for your restaurant is absolutely vital to your success. You need to
choose a location that is easy to accessible to all people like near the beach, downtown or
position right at the curves.... but avoids the competitor who serves cuisine like yours..
Make sure you research your target market and the competition so you can put your
restaurant in just the right spot. You need to pre-survey the rental locations of restaurant
business to choose the right location. A walk around where you need to rent is enough for
you to get a grasp of the basic business situation of the stores operating nearby. Understand
the customs, habits and things that will affect your restaurant when operating. You should
also pay attention to the frequency and density of people moving. Any premises with a
large number of people moving will be the condition for good restaurant business
You need getting a lot of licences such as: liquor license, license for food safety and
hygiene, business license, fire safety license, tax payment license,.... G etting all these
licenses and getting your restaurant establishment the legal permission is a difficult task.
You need to have all the documents and then apply for the permit before the opening date
of your restaurant, it saves you from worrying about or delaying the business of your restaurant.
Your restaurant doesn't have a Unique Selling Proposition. While a perfect menu and good
customer service are the keys to a restaurant's success but without a unique selling point,
it's just like any other restaurant. At Nha Trang many restaurants have closed because it has
no unique selling point. Your customers need to know why they should eat at your
restaurant. A unique selling point that gives customers the feeling that they will remember
you long after they leave. Let your food, service, point of sale, and unique identities create
your own identity and emotional connection with customers. (Peters) 8
To finding the right suppliers.you can not finding suppliers that provide quality food
products for you. You should survey the suppliers of quality food for your restaurant to see
what is good and what is bad before making a decision and you need research pricing and payment terms.
You have a problem with menu. Is the menu too few or too many dishes? Is the price of the
dish reasonable yet? Is the arrangement easy to see? A menu with too many dishes will
make the kitchen more difficult to prepare, and the waiting time of customers will also
increase. (Hotel Propeller, 2019) Bottom line – your menu should speak to who you are
and what your restaurant stands for while appealing to your demographic. Update your
menu and prices at least once a year.Build your menu around popular items.Make sure
your staff is thoroughly trained and has memorized the menu.
You must hiring and training staff. A common problem is that many restaurants hire the
wrong people and a high turnover rate. An incompetent employee can also cause
irreversible damage to your current and future customer base. Pay more attention to finding
the perfect staff and don't let your body get confused. Once hiring, train your employees to
the best possible way. Please choose 1 to 2 people as "right arm", they will directly educate
the rest and support the work at the shop when you are not present. However, the job of the
manager does not stop there, after choosing the candidate they like, they have to embark on the training.
The problem with marketing. They are always focused on other things that make them
forget marketing is very important. they don't have a media team. they do not know how to
design menu, restaurant logo. They don't know how to advertise their restaurant to the
public. The trick is to learn from reviews or online guides. Get more information from
people who have opened a restaurant "how they can promote, introduce to people". Then,
apply them to improve your restaurant.Always listen and answer them and do your best to
resolve the problem. For an online presentation, you first need to have a restaurant website.
The website must be optimized and responsive for everything to give the customer exactly
what they are looking for. You must have a plan to open the restaurant. When you open a 9
restaurant, you can send free party invitations to prominent people in your target audience. (the restaurant time)
Finally, call for investment. Finding an investor is very difficult, especially in the crowded
restaurant market. For many entrepreneurs, this is the biggest challenge to owning and
keeping a restaurant open. Be careful when estimating the amount of startup money you
need and don’t underestimate.
These are the risks of opening a restaurant:
First of all,unsafe food. Unfortunately, customers who eat unsatisfactory foods that lead to
poisoning at your restaurant, you bear the full responsibility as medical bills and you are
also being sued or stopped trading. You and your employees should not only be aware of
proper food storing, but should avoid serving spoiled food, recognize spoiled food so it is
thrown out and not served, and keep close track of the temperatures at which your food is
stored. (Risks often occur when running a restaurant)
Secondly, damage caused by fire and explosion.All restaurants use on-site stoves, so the
risk of fire is very likely to occur, especially when exposed to grease and nearby electrical
sources. One of the causes of fire and explosion is gas leaks, spread of oil and grease, and
flammable objects near the kitchen. If an explosion does occur, you will have to pay a lot
of costs for the damage you have caused. To ensure safety, you always keep the kitchen clean.
Thirdly, food storage.The last risk to prepare for is related to how you store and stock your
food. If you aren’t educated on how to store the food, you may not know if food is spoiled
and it might get served to customers. This could means a loss in reputation and business
income. (Risks of Operating a Restaurant, 2013)
Fouthly, lack of experience in management.One of the main reasons restaurants close is
lack of business acumen, lack of management and financial planning for each stage of the
business.You need to research and analyze thoroughly during this business phase. You
need to plan carefully and carefully over a period of about 6 months or more. Or you can
find yourself an expert in the restaurant business. 10
Fifthly, inappropriate employee remuneration policy. One of the main reasons restaurants
close is lack of business acumen, lack of management and financial planning for each stage
of the business. Meetings between employees and managers are required to share and listen to what they have to expect.
Sixthly, incorrect financial allocation. Overspending on less important aspects of your
restaurant is one of the mistakes you may have made. For example, you spend too much on
furniture and lack capital to spend on inventory. You should make a financial plan to
correctly allocate resources. Create a detailed business plan of how money is allocated
before it is spent. If you are new to a restaurant business, you should seek the help of
financial experts in this area. (Risks of Operating a Restaurant, 2013)
Finally, staffing.The restaurant business is as much about people as food. Poor service will
ensure that customers won't come back and your restaurant will probably fail as a result. 11 Chapter 3: METHODOLOGY Research Design
This research of problems and solutions when you opening a restaurant in Nha Trang
provide statistical analysis. first, i will show you some problems to opening a restaurant in
Nha Trang and after that, i will give some solutions to solve these problems. The survey research design method Subject
The subject of the research is problems to opening a restaurant in Nha Trang and the way to solve these problems.
Sampling Techniques and Materials
Participants complete a questionaires in the form which was given before, include
questions regarding ages, time to open a restaurant,the important of each problems.
Participant were vote from5-10 point depend on the important of each problems and they
need giving a short solution for each problems. For example, the problem is about
finance,the participant need to choose a point suitable with their thinking. After they vote it
they give some advice depend on their knowledge and experience. Research Procedures
The research presented in this disertation has been carried out according to the following
these step: Firstly is clarifying research question, i choose the topic for the research and
then i make the questions. Identify the questions that can cover the whole theme of the
research. After that i synthesize my ideas,answers very carefully. I need help readers to
understand my questions. Secondly, research proposal provide some initial plans for the
question of the research. Thirdly, research design strategy, define the type of research and
outlining the problems and solutions to open a restaurant. Fourthly is collecting the data,i
ask some people have been opened a restaurant or people is working in restaurant or i
search some browse on the internet and books to find the sources so as to read and collect
data to support the research. I have a survey for group of people have a restaurants or
having plan to open a restaurant and then i analyze those survey data. Fifthly data
analysis,the results will be explained further and interpretating the data that signifies the 12
research and presenting the application of the research. Finally is research report to provide
clearer the problems and solutions to open a restaurant. Data Collection
The data in this sudy was collected through the surveys with peoples who is having
restaurants or had been opened restaurants but bankrupt or having plan to open a
restaurant. This survey depends on personal surveys because it gave an exactly rate. It’s better than another method. Data Analysis
For data analysis, i focus on the problems to open a restaurant. I showed for the reader easy
to know and easy to understand the difficult and the risk when you open a restaurant in Nha Trang.
Reliability and Validity
This research writing paper is reliable and valid since its data was collected sources of
information. Moreover, those data were accurate because those numerical information and
statistics were published globally, and articles were highly rated. Summary
The study help the people who have a plant to open a restaurant in Nha Trang in the future
know more the difficult and the risk. They can focus on it to open a restaurant easier and better. 13
CHAPTER 4: DATA ANALYSIS, RESULTS AND DISCUSSIONS
In this chapter, the collected data are summarized and analysed in order to realize the
ultimate objective of the study. The purpose of this study is to emphasize the important of
the problems when you open a restaurant in Nha Trang. The results obtained from the
structured questionnaires are represented on the chart. Respondent Age 20-30 31-40
The pie chart shows the percentage of respondent ages who having or have been opened a
Restaurants. Overall, it can be seen that the percentage of the ages from 20-30 is higher than ages from 31-40.
It just has 4 respondents at ages from 31-40 have a restaurant, accounting for 40% of the
total. In contrast, the amounts of respondents at ages 20-30 was highest with 6 peoples,
registered 60%. So, the young people are start-up more than adults. 14
Which factors that you need to concern when you open a restaurant Unique Selling Point Get Licences Menu Training Staff Location 0 10 20 30 40 50 60 70 80 Percentage
This bar graph illustrated the percentage of the important factors that the owner need to
concern when they open a restaurant.
It is clear that most of respondents think that location and unique selling point is the most
important factor they will face when they open a restaurant in Nha Trang. It registered 66,7
percentages. After that is training staff. This factor is also important but don’t have the
high vote. It has 55.6 percentages.
About the getting licences, it was not more important than another factor. It just has 33.3
percentage, chosen by 3 respondents. They think that it can be easy to get all licences. It
was an unexpected result. And in my opinion get the licences is the most important when you open a restaurant. 15
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Through this research, we can see the problems and the risks that we must encounter when
opening a restaurant in Nha Trang. Nha Trang is developing and become famous on the
world. So, opening a restaurant in Nha Trang is more and more difficult. We will face with
a lot of problems such as location, menu, staff, licences, especially is don’t have unique
selling point. These are problems I have been summary. And I have the solution for each
problem. I hope after you read this research you can have more information, more
experience and more skill to face with these problems and you can get over it with ease 16 REFERENCES
11 steps to properly implement for newbies. (2020). Retrieved from Sapo:
https://www.sapo.vn/blog/kinh-nghiem-kinh-doanh-nha-hang/
Hotel Propeller. (2019). ĐưNc truy lOc tP 10 challenges to owning a restaurant. Peters, B. G. (n.d.). Restaurant Engine. (n.d.).
Risks of Operating a Restaurant. (2013). Retrieved from
https://www.boltinsurance.com/risks-of-operating-a-restaurant/
Risks often occur when running a restaurant. (n.d.).
Stephen. (2014, september 6). introduction of Nha Trang City,Viet Nam. Retrieved from personal communication.
The Restaurant Time. (n.d.). Retrieved from How To Overcome Restaurant Startup
Challenges While Opening A New Restaurant. 17 APPENDICES Participant survey form
Dear participant, this is a questionnaire survey about problems when you open a restaurant in Nha Trang.
This survey will take you a few minutes to complete the following questionnaire.
This study is intended for educational purpose only, and not for any commercial purpose.
Direction: please circle the right answer for each question.
Note: for the question 2, you can choose more than one answer. Questionnaire: 1. How old are you? a. 20-30 b. 31-40 c. 42-50 d. Above 50 2.
Which factor that you need to concern when you open a restaurant? a. Location b. Training Staff c. Menu d. Get Licences e. Unique Selling Point 3.
In your opinion how important the location is when you open a restaurant? a. Not important b. Least important c. Important d. More important e. Most important 4.
In your opinion how important the menu is when you open a restaurant? a. Not important b. Least important c. Important d. More important e. Most important 5.
In your opinion how important training staff is when you open a restaurant? a. Not important b. Least important c. Important d. More important e. Most important 6.
In your opinion how important unique selling point is when you open a restaurant? 18 a. Not important b. Least important c. Important d. More important e. Most important 7.
In your opinion how important get the licences is when you open a restaurant? a. Not important b. Least important c. Important d. More important e. Most important 19