Red Crab case analysis by Nelle Canta

THE RED CRAB CASE

 

SITUATION: 

Inspired with good home cooked meals of his mother, Raymond Magdaluyo, started with a Kapampangan restaurant last 1998. This Kapampangan restaurant was called “The Red Crab Seafood and Steaks. The restaurant specializes in different crab recipes created by his mother, and other old time Filipino dishes favourites. Since Red Crab’s first branch was a success, they immediately ventured to a 2^nd branch in Malate after they were offered with a space for lease. However, after 5 months of pretty decent sales, the business suffered a 30% decrease in sales.

PROBLEMS:

1.       Target market identification – who are your customers? Which age group?

2.       Positioning – where to focus on.  What foods do we need to serve? Seafoods? Filipino dishes? International dishes? What concept do we need to apply?

ALTERNATIVES:

1.       Stick to the traditional restaurant theme similar to the original one.

2.       Find the specific theme and concept of the restaurant based on target market.

DECISION:

Red Crab should focus on Seafoods and retain the “Old time favourite dishes” of Raymond’s mom. The over-all concept should be designed based on the yuppies’ market. The look and feel of the restaurant, the food that they serve, the ambience of the place should all be revamped.

ACTION:

1.       Identify the people residing, working, frequenting the area and the restaurant itself, conduct a market survey on the food and ambience preferences of these people.

2.       Based on the identified target market, reposition the concept of the restaurant.

3.       What is the objective of the restaurant? “Not just selling crabs, but the experience”. How do you make the experience special?

4.       Create a business concept fit on the identified market.  Is it for Family gathering? Special gatherings? Business-related events, regular lunches or romantic date?

5.       Based on the business concept, i.e. if the concept is for festivities / celebration, the set-up should be festive similar to boodle fight set-up, with happy music, jolly waiters singing etc.

6.       A best dining experience also includes the completeness of utensils and good food that will make you come back to the resto. Utensils like hot towels, bibs, wooden mallets.

7.       Make celebrities customers your brand ambassadors by having them write on a mini expression book stating their dining experience.