Nickel Diner 1
Small Business: Inventure Foods
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Introduction:
Businesses that are privately owned, partnerships or sole proprietorships are often referred to as small businesses and are small in terms of sales, assets, net profits and above all in terms of government support and tax policy that varies from country to country. Although the U.S. economy is dominated by giant corporations, 52% of all the US workers population worksin the small enterprises(Storey & Greene: 2010). According to U.S. Small Business Administration (SBA), a business having fewer than 500 employees is a small business. About 28 million small businesses exist in U.S. of which over 22 million are self employed; 52% are home-based. As these small businesses comprise a large part of the U.S. economy, it is crucial to explore this subject area(Neumark et al: 2011). I got the opportunity to interview one of the two owners of Nickel Diner, Monica May. Nickel Diner is one of my favorite restaurants in Los Angeles. It is owned by two ladies, Monica May and Kristen Trattner who are now the general managers as well as chefs at their nouvelle diner. I asked her questions to explore more and more of their business; what influenced them to open a restaurant? What was their first step? What is their core mission and objectives?etc. This paper aims to explore the small business trend in U.S., their nature and process in the light of the interview conducted from Monica May and highlighting her views.
Motivation to Start New Business:
When asked about what motivated them to open a new restaurant, Monica May replied that she has been in this business since 2002. As a career path she wanted to learn all aspects of restaurant business. She and her partner Kristen Trattner had been running a café up the street in their neighborhoodthat basically had no kitchen. They were looking for what the community there needed and their interest in business aspect of owing a business led them to open up Nickel
As far as the customer preferences and tastes were concerned, they were very much aware of the community out there because of a café experience of 6 years. The challenges they faced while opening up Nickel were the competition and the planning the location, theme, style to make it stand out of the crowd. Though the challenges were tough, they successfully overcame those challenges that is proved by the success of nickel Diner.
Mission Statement:
At Nickel Diner’s, they do not have a specific mission statement but their aim is to make and provide good food to the customers that ultimately comes from hands that care. The menu is based on what people love to eat.
Their Products:
Maple-glaze bacon doughnut, baked eggs, steak sandwich, catfish and desserts are on the top main menu of Nickel Diner’s. The cat fish, BBQ bacon with poached eggs and double stuffed chicken are famous. But its more famous for its desserts. The five doughnuts they make are very famous: maple bacon donut, strawberry crumb, nuetella, red velvet and an Irish car bomb. Red Velvet Cake, devils Food cupcake, shaker lemon pie, salt peanut cake are the most famous desserts. Moreover they offer a variety of dishes for breakfast, lunch and dinner
Number of Employees Working in the Restaurant:
When they started in 2008, they had only two employees excluding the two owners, a total of four. However, in the first six month, they felt the need for more workforce and thus hired more employees. Today they have 18 employees: 9 work in the morning shift and 9 at evening shift. The management is controlled by the two owners and they are also very much involved in the kitchen. That is the key ingredient of their success.
Primary Customers:
The primary customers are locales, mostly people living in South West Street, Los Angeles. However, the publicity and success of Nickel influence people to come from far to enjoy food at their restaurant. Families love to enjoy their breakfast at weekends.
Nickel’s Strengths and Weaknesses:
The restaurant strength lies in their special menu and the quality of food they provide. The food there is farm fresh and from hands that care. They have been recognized for their wide range of doughnuts: glazed bacon doughnut, red velvet doughnuts and their breakfast menu is the most popular. They offer customers a fun place for casual dining. This is one of the main benefits they have to offer to the market because it is what the majority of the target market is looking for.
The only weakness they have is the awkward location of the restaurant which has been criticized before because its location is at the most notorious intersection in town
External threats:
By government regulation it means imposing tax on small businesses. The government regulations are on the top concerns of Nickel Diners. But its not the owner’s own perception. The owner of nickel Diner says that government regulations often put negative consequences e.g. they keep us from investing in capital purchases, services and hiring and it makes them less competitive in the foreign market.
One of the main threats is always the competitors. No doubt, there are reputable and famous restaurants in Los Angeles; Nickel Diner is located where there are no such restaurants nearby. Their different and low priced menu is enough to attract customers.
Current Economic Conditions:
The downturn during 2007-2009 although affected both large and small businesses, small businesses and firms faced disproportionate declines. As indicated by a research study, the performance and recovery of small firms is negatively affected by the poor sales and economic uncertainty because the weak consumer demand is a major pressing factor(Neumark et al: 2011). However, in the case of Nickel Diner, it opened in 2008 and by then the restaurant is enjoying success and praise from nationwide. The small restaurant business can only succeed in such economic conditions if they offer unique and outstanding food as well as low priced. The food items at Nickel Diner are so reasonable and affordable as compared to the market
Internal Communication:
The internal communication within the restaurant is effective and open. The owners of the restaurant are also the managers and the chefs in their own restaurants because their special items on their menu are their own specialty. The owner says that Nickel’s culture is friendly as well as diverse. They respect their employees and believe in collaboration and teamwork. In any case of conflict, the employees are free to speak and express their opinion. Moreover, she said that to make the employees feel valued and a part of nickel, they are encouraged to contribute in their decision making process such as introducing a new item in the menu, its pricing or the décor of the restaurant etc.
Charitable Causes:
The owner of Nickel Diner said that they preach the importance of giving back to the community although they do not have a proper cause-marketing program yet. They said they have analyzed the main causes of supporting a community and are very much inclined to start ir properly.
Conclusion and Recommendations:
In conclusion, small businesses constitute a large part of our economy and there importance cannot be overlooked. However, it is not an overnight process and small businesses do need proper market analysis and the threats and opportunities before starting a new business especially if the person to start is inexperienced. The owners of Nickel Diner though did not have a proper place before but did have the experience of running a café. The community their demanded them to open up their restaurant that influenced them to think about it. They had to choose the place, invest funds for the construction and other costs, hire employees, set their prices, menus etc. their experience helped them a lot. However, the only recommendation I would like to put forward is that they need to introduce new items to their menu lists to attract and retain their customers after all they are the major factor affecting the sales and moreover, consumer preferences could change at any moment. As far as the prices and other factors are concerned, Nickel Diner is the most reasonable place to eat and enjoy.
References
Neumark, D., Wall, B., & Zhang, J. (2011). Do small businesses create more jobs? New evidence for the United States from the National Establishment Time Series. The Review of Economics and Statistics, 93(1), 16-29.
Accessed on March 27, 2014.
on March 28, 2014
Storey, D. J., & Greene, F. J. (2010).Small business and entrepreneurship. Financial Times Prentice Hall.