Business Model Innovation: Ramen Restaurant

Remember our previous post on Pricing a Ramen? Now, we have an innovation post which follows the same series! For the Ramen lovers who cannot go to Japan, but would love to set up your own restaurant.

As usual, we will be doing our analysis with the business model canvas. In addition, we got this inspiration for a whole ramen series from a friend who loves dining in Japanese restaurants. Note that this is a possibility, no hard and fast rules. After all, the beauty of the business model canvas is that it is just a hypothesis waiting to be tested! We will be putting together things we observed from various Ramen Restaurants in Singapore.

Unique Value Proposition

The challenge of business models as usual would be the unique value proposition.

In this case, we are offering a ramen restaurant which allows you to choose your own ingredients and is highly customisable.

Customer Segments

In terms of customer segments, we can do a behavioural segmentation: Our target customers are those who are interested in Ramens which offer choice of ingredients.

We could also do a demographic segmentation, younger adults may be more open to looking at a modular approach to buying food. (assumption)

As usual, customer segmentation is a really complex approach and so let’s focus on younger customers who may be interested in highly customisable ramen.

Customer Relationship

In order to maintain customer relationship, a loyalty application is a possibility, including stamp collection, or vouchers for redemption.

Publishing about new launches and special ingredients of the month to food blogs is also a method to keep customers updated.


Through the physical store, an online presence with an own website, which are standard components of a business. In addition, the business could explore working with restaurant concierge applications to reach out to a variety of customers. Over time, developing an own application would allow the customers to be kept in your ecosystem.

Key Partners

Some key partners in this case are:

  • Raw Ingredients Suppliers
  • Staffing Agencies as F&B is manpower intensive
  • F&B Concierge Applications

Key Activities

Some key activities in this case are:

  • Purchasing/sourcing of Ingredients from suppliers
  • Concocting new recipes to keep customers excited
  • Driving Foot traffic through interesting promotions.

Key Resources

The Key Resources in this case are:

  • Ramen Making Machine
  • Ramen Chef


In terms of Cost, these are the possibilities:

  • Rental
  • Salary
  • Cost of Equipment
  • Cost of Ingredients
  • Maintenance of Equipment
  • Marketing (Own website and royalties from platforms.)


In terms of Revenue, these are the possibilities:

  • Revenue from selling the Ramen itself.
  • Side Revenue from fringe items for instant soda drinks, and other sides like Gyoza.
  • Membership Fees / Subscription Model (this model does not seem to be frequently practised though, where customers are locked in for future discounts.)
  • Advertising Revenue (Maybe through partnership with tour companies, or other “Japanese” places like Japan Home.)
  • Consignment Products Revenue (Japanese Snacks Manufacturers, for customers to buy home.)
  • Merchandise Revenue (Think of the Sakae Sushi frog.)

In summary, this is a business model for a ramen restaurant!

Are you interested in exploring other business ideas? Please drop us a note at

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Image Credits: Photo by Hari Panicker on Unsplash
Artwork Designed by Tan Wei Xiang


Pricing Analytics: Maximising the Value of Your Ramen

Have you always been intrigued by how Ramen Restaurant priced their dishes? Most of the time, the Ramen is a modular product, which can be broken down into many ingredients: The Ramen, the broth, the toppings, etc. Today, we have specially broken down the prices on the menu of a Ramen restaurant which has recently set up an outlet in Singapore, and present to you this pricing analytics piece. Our main questions of the day is how much is each component of the ramen valued at, and which item on the menu gives the most value.

The Dataset: 15 Bowls of Ramen

To start off, we found the menu of a restaurant (which we shall not link because we aren’t sponsored, and also potentially not wanting to swing the sales for the restaurant after our analysis.)

Next we listed the prices, as well as the ingredients offered. This will be the dataset that we would use.

Menu and Price of Ramen
Menu and Price of Ramen

Exploratory Data Analysis

Firstly, let’s get the assumptions out of the way. For this case, the base ramen is assumed as the same for everything in the menu. We also assume that having “Chef’s Recommendation” or “Most Popular” will not influence pricing, though it probably does in many business settings.

Well, we could safely assume that every ingredient will be important in the analysis right? Ironically, no. The first step is to look at any correlated values before we do the analysis. By running a correlation plot, we realised that Spring Onions are missing only in the truffle ramen. We also learned that Leek is always in the Chicken Broth, and Bean Sprout and Pickled Onions are always in the Spicy Yuzu Broth. We are also removing truffle menu items from the analysis as they are way too different from the others and will influence the data. This way, all Tonkotsu broth has wood ear fungus too which should be removed. These data should be counted as part of the broth for a more reflective pricing model which will not exclude any variables.

Correlation Plot of Ingredients and Price
Correlation Plot of Ingredients with Price

Pricing Analytics: Which Ramen is the most and least worth it?

So we ran our model. It fits on a perfect straight line!! The restaurant was very clear on their component pricing. Basically, all the menu items were equally worth it. That was not what we expected but it’s an entirely possible outcome.

Pricing Analytics: How much do you pay for each component in your Ramen?

We looked at the output and thought what’s next, we basically obtained a price chart of the Ramen components! (Assuming the Base Ramen is included in the broth.)

Ramen Price Analytics Outcome
How each part of your ramen is priced

If you ordered just a Tonkotsu Broth (which comes with Wood Ear Fungus) without toppings, it would be $8.90, $9.90 for chicken broth (With Leek) and $12.90 for a Spicy Yuzu Broth (With Pickled Onions and Bean Sprout). Each of your toppings of each Belly Chashu, Hanjuku Egg and Collar Cha Shu is $2 Each. Your Seaweed is more or less free and should not be calculated into the equation, but you do get a bigger seaweed for your large bowls so this should be a plus point!

In conclusion when ordering your ramen, pick the bowl which gives you seaweed of your choice (at least in this store.). In addition, now you have this chart to make a rational decision when ordering Ramen in future.

Hope you liked our post today. Hope that this post will inspire you to do your own analysis of your favourite restaurant menus. If you’re interested in starting your own Ramen restaurant, do take a look at our business model analysis here.

Do bookmark this site, leave a comment in the section below, and follow us on our LinkedIn page as we look forward to curating new content for you every week. Next, do read about how we used Google Analytics to Analyse our top and bottom posts of 2020, or on how we text mined 400 spam comments!

Image Credits: Photo by Hari Panicker on Unsplash
Artwork Designed by Tan Wei Xiang


Time Management while Working and Studying

Time Management, a crucial topic that is ever so elusive. Recently, I wrote a post about juggling between work and studies. Coincidentally, January had also been my busiest month since starting work. Therefore, I will be sharing a bit of my experience in time management in January.

What happened this month?

This month (or rather since late December), I received a special assignment direct from the company CEO, to work on a Branding Strategy Project. This was a rare opportunity for me as a newly minted graduate in the workforce, so I definitely had to say yes!

In the meantime, I had myself enrolled into a Branding Class at NTU as part of my MiniMasters programme, and had to commit to classes in order to attain the certification. Furthermore, I did not want to disappoint on the blog, which I have committed to posting once a week.

Effective Calendar Planning

My first steps to tackle the month was to have a calendar planned out. I started with planning out blocks which I know have a fixed time, for instance my zoom live lectures. These are the times which I cannot schedule any meeting, work through the weekends, or schedule my self-paced online learning.

Next, I came up with a list of the number of hours I needed on each of my tasks, and did a tentative block on my calendar, to demarcate the time for those tasks, while still keeping the schedule open for meetings.

It seemed all too straightforward, but things can still go wrong, first check-in, second check-in, third check-in, and so forth… In the end, I ended up losing entire weekends working on the project.

To tackle effective calendar planning, I figured that moving forward, having gaps is necessary to be able to react to any potential situation which happens.

Not so much Time Management, but Energy Management

Halfway through the month, after my schedule was nice and packed effectively, I realised that I experienced a decrease in productivity on some days. Then, I recalled about the article on Harvard Business Review, to manage my energy and not my time. Right then, I realised I was spending too much time just working and neglecting the importance of leisure.

To react to the situation, I ensured that I ran minimally once a week. After the change, I felt a lot more refreshed and able to concentrate on what I was doing more effectively.

Moving forward, I intend to add a mix to my exercise routine, maybe the gym or a swim, to allow me to recharge after a fine day at work. How about you? How do you intend to manage your energy? Do leave your comments down below!

Next Month: Proper Planning and Pacing

In the month of February, I intend to plan for proper breaks within and outside my work day, as well as control the pace I complete what I intend to complete. After all, life is a marathon and not a race. A sprint at the start may result in massive burnout and damaging health, which decreases productivity and quality of life.

Either way, I’m glad that January has ended! I have successfully completed my branding course, and would be embarking on my digital marketing course next month. With our pre-read submitted, we are left with preparing for a presentation, before welcoming my next assignment at work!

As a plus, I managed to post for 5 weeks consecutive this year. If time permits, I intend to do a massive rebranding of the site over the next few months, to put my branding class knowledge to the test.

Hope you liked our story today. Do bookmark this site, leave a comment in the section below, and follow us on our LinkedIn page as we look forward to curating new content for you every week. Next, do read about our tips to succeed in management internships and jobs. If you are currently looking for a job or internship, we have also put together a guide for you.

Base Image credits: Photo by Jon Tyson on Unsplash
Original Design by: Tan Wei Xiang