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.
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.
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.
Some key partners in this case are:
- Raw Ingredients Suppliers
- Staffing Agencies as F&B is manpower intensive
- F&B Concierge Applications
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.
The Key Resources in this case are:
- Ramen Making Machine
- Ramen Chef
In terms of Cost, these are the possibilities:
- 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 email@example.com.