Bachelor of Business Administration Thesis

Hospitality Management

Business Plan for Mộc Bistro : A gastronomic enterprise fusing Vietnamese

Culture Elements and Wabi-Sabi Aesthetics

Mentor

Nguyen Duc Tri

Group members

Ho Tran Phuong Uyen DS160183

Nguyen Thi Chau Sa DS160126

Vo Thi Thanh Thao DS150203

Tran Thi Kim Nhanh DS150138

Nguyen Thi Ngoc Han DS150152

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ACKNOWLEDGE
We extend our sincere gratitude to all those who have played a pivotal role in the
development of this academic report for Mộc Bistro restaurant in Danang city.

Foremost, we express our gratitude to our dedicated teacher in the Hospitality Management
department at FPT University, Mr. Nguyen Duc Tri, whose invaluable guidance and support
have shaped our ideas and plans for Mộc Bistro. His expertise and insights have been
instrumental throughout this project.

We would also like to acknowledge Mr. Nguyen Viet Toan, Director of Da Nang Startup
Innovation Center, for his generous support and advice. His valuable feedback on our
business plan has significantly contributed to refining our strategy and enhancing our
understanding of the hospitality industry.

A special thanks goes to our team members for their unwavering commitment and hard work
in creating this business plan. Their dedication to excellence has been crucial to the success
of this project.

Finally, we express our gratitude to FPT University and the Hospitality Management
Department for providing us with the necessary resources and opportunities to pursue our
passion for hospitality. We are proud to be part of such a vibrant and dynamic learning
community, and we thank our professors, staff, and fellow students for their continuous
support and encouragement.

Thank you all for your valuable contributions to this project. We eagerly anticipate bringing
Mộc Bistro to life and realising our vision for an exceptional dining experience in Danang
city.

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ABSTRACT
Mộc Bistro is dedicated to embodying Vietnamese nostalgia in an innovative culinary haven,
where locally sourced, seasonal ingredients seamlessly blend with a touch of Japanese
influence. Our overarching goal is to provide patrons with a visually captivating and
gastronomically memorable journey—a "gustatory memoir." Rooted in bridging the gap
between our guests and the inherent Wabi Sabi spirit woven into everyday Vietnamese life,
Mộc Bistro operates on core values that shape consumer attitudes. Our commitment lies in
the fusion of Vietnamese and Japanese flavours, realised through a dedication to culinary
excellence that marries inventive techniques with time-honoured traditions. Within our
welcoming ambiance, imbued with warmth and nostalgia, guests are invited on a cherished
journey through our cultural heritage and the soulful elegance inspired by Japanese traditions.
As trailblazers in transnational dining, Mộc Bistro sets industry standards, continually
pushing boundaries to redefine and elevate the artistry of unconventional cuisine, aspiring to
craft a unique and memorable culinary experience that transcends borders.

ACKNOWLEDGE

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ABSTRACT
CHAPTER 5: RISK AND CONCLUSION
1. Risks Management
1.1. Compliance Risk
1.2. Financial Risk
1.3. Operation Risk
1.4. Customer Risk
2. Conclusion and Recommendation
Reference
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4
CHAPTER 5: RISK AND CONCLUSION

1. Risks Management

1.1. Compliance Risk

● Risks of food safety

Risks to food safety are one of the most frequent issues restaurants deal with, and they can
have very negative effects on both the patrons' health and the restaurant's reputation. The
causes might include improper food preservation methods, insufficient processing methods,
or unprocessed materials that compromise hygienic standards. Mộc Bistro must act quickly to
prevent problems with food safety. Enforcing food safety certificates, ensuring input
components meet stringent quality requirements, and conducting frequent quality inspections
of ingredients to support supply chain reliability are the restaurant's main priority. Processing
procedures are designed with adherence to safety rules in mind, and personnel undergo
comprehensive training to guarantee compliance. Regular hygiene inspections allow for
careful monitoring and management of every part of the production process. Mộc Bistro
establishes a high standard for food safety and assures the quality of its dishes by
implementing these measures. This protects customers' health and confidence, maintains the
restaurant's excellent reputation, and fosters a dependable dining environment.

● Risks when renting business premises

Mộc Bistro may encounter issues while leasing land for commercial purposes, such as rising
rent and modifications to the landowner's regulations. The deal with Mộc Bistro will contain
a one-year guarantee against unjustifiable price increases (such as those exceeding 10%).
Financial stability is improved as a result. Furthermore, in order to protect the landowner's
rights in the event that they decide to recover the land before the deadline, the contract will
clearly specify requirements for reimbursement. The landowner will be responsible for any
real losses if they remove the land before the deadline. Along with familiarizing itself with
the landlord's policies, Mộc Bistro must also carefully review the contract and establish a
strong working relationship from the start. Having funds on hand for unanticipated issues is
another essential component.

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1.2. Financial Risk

● Risks of investment

When starting a fine dining establishment, a substantial amount of money must be set aside
for the lavish, premium equipment. The first things that must be done are to have skilled
chefs, excellent contemporary equipment, and other components available. However, a large
upfront cost might put a lot of strain on one's resources, requiring a strict and well-defined
financial strategy. This is troublesome, especially when the earnings of a large restaurant
does not quickly cover its initial costs. This might lead to unstable finances and impede the
restaurant's success in growing. An approach to solve the issue might be to create a company
model that is adaptable to customer requests and shifting market conditions. This lowers the
risk associated with capital investments and increases the possibility of success and sustained
development in the upmarket cuisine industry.

● Risks of revenue fluctuations

Due to a number of factors, including shifts in consumer demand and rivalry among rival
restaurants, high-end dining establishments will inevitably experience revenue fluctuations.
Mc Bistro has developed a flexible and accurate mechanism for changing pricing while
preserving profits in order to address this challenge. This technique for figuring out the value
clients want and their willingness to pay includes technical market research as a key element.
Restaurants are able to balance value and quality by adjusting their prices accordingly. The
impact of revenue fluctuation can be lessened concurrently by enacting targeted discounts
and pursuing a competitive pricing strategy.

1.3. Operation Risk

Operational risks include situations where Mộc Bistro might lose money for a number of
reasons, such as delays, human mistake, or carrying out unapproved operations. Internal
issues might include systems and regulatory noncompliance in business operations.
Furthermore, there are external elements that can have a direct impact on the restaurant's

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image. Mc Bistro is handling this issue by conducting study and identifying potential
concerns. It is critical to apply treatment options early in order to prevent and mitigate their
detrimental consequences. Mc Bistro can thus preserve and improve its favorable image in
the restaurant sector.

● Risks in business strategy

Risks and blunders in business strategy are unavoidable for restaurants. It is possible, for
example, that the restaurant is not targeting the right clientele, or that the marketing strategy
is ineffective. Before designing a plan, Mc Bistro chose to do research and carefully evaluate
client habits and behaviors when choosing restaurants in Da Nang in order to avoid risks and
remedy faults in campaigns. This helps identify customers' aims and desires, allowing
business tactics to be optimized. Furthermore, if risks are identified or revisions are required
to meet market and customer needs, Mc Bistro will alter and change strategies as needed.
Restaurants can quickly change and ensure the best performance in a demanding business
environment in this manner.

● Risks of supply chain disruption

The production and distribution of goods and services may be impacted by the risk of a
supply chain disruption. For a restaurant like Mc Bistro, major hurdles could include the loss
of a major supplier or issues with the quality of the products. Forecasting and locating
trustworthy alternative supply sources are essential to managing this circumstance. A
dependable and constant supply is further ensured by forming agreements with different local
and international supply partners.

A restaurant's reputation may also be impacted by the quality of its products. Managing
material quality at every level of the supply chain and enforcing transportation rules assist the
proper and safe delivery of goods. In the end, effective collaborations and risk management
are necessary to reduce the likelihood of interruption. This entails regularly monitoring the
performance of supplier partners in addition to investing in technology and preventative
measures.

● Risks to human resources and employees

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Analyze procedures and guidelines to ensure sustained staff retention, and tackle the
difficulty of attracting and retaining individuals who possess the necessary education and
expertise. Employee disputes are common in the restaurant sector, and they are often
accompanied by a lack of professionalism and passion for one's work. There's a chance that
workers will act improperly by abusing their position.

To solve these problems, Mộc Bistro can apply specific, specialist remedies. First, establish
internal control systems and provide workers with professional ethics training in order to
preserve transparency and accountability in day-to-day operations. A useful technique for
identifying and handling improper conduct is the creation of a reporting mechanism. Only
candidates who genuinely possess skill and excitement will be selected, so Mc Bistro may
carefully choose candidates and uphold a high standard of hiring. Encouraging employees
and managing both stable and flexible employment are equally important. To maintain
employee enthusiasm and provide excellent service, a pleasant and exciting work
environment is also crucial. And last, one tactic to promote dedication and excellent
performance is to provide employees room for advancement and perks..

● Reputational risk

One common risk that impacts business operations is reputational risk, especially in the
fiercely competitive food sector. If Mộc Bistro doesn't differentiate itself from the
competition, they risk losing both clients and reputation. Additionally, if customer concerns
are not resolved effectively and quickly, they might harm the brand's reputation. To lessen
this risk, Mộc Bistro has put in place a strict policy for client care. Every time a client
finishes their meal, staff members ask on the quality of the meal and service; this enables the
(early) discovery of problems and prompt customer feedback.

In order to handle problems that may occur, restaurants have incentive programs in place.
These policies could cover discounts, free drinks, mementos, or even repayment, depending
on how bad the problem is. Building dependable relationships with customers and giving
them outstanding dining experiences are the goals..

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1.4. Customer Risk

Risks of differences in culture and customs

Meeting people from other cultures and trying food from around the world are two great
benefits of traveling. Nevertheless, in order to meet the diverse demands of customers from
all over the world, Mộc Bistro restaurant needs to take certain measures to enhance the
gastronomic experience and avoid misunderstandings. Cultural and culinary differences can
provide a number of concerns, particularly in an increasingly globalized society where
individuals from many origins connect and share meals. Therefore, teach staff members about
cultural diversity and engage in responsive communication. Make use of simple language and
stay away from jargon that can lead to cross-cultural miscommunication. Respectfully handle
any scenario involving a cultural disagreement and find flexible solutions. Gather consumer
feedback and apply it to your service and dining experiences going forward. These actions
not only assist Mộc Bistro in establishing a genuine and friendly atmosphere for guests from
abroad, but they also provide the groundwork for an exceptional and varied dining
experience.

2. Conclusion and Recommendation

Mộc Bistro should be the first dining facility in Da Nang that harmoniously fuses the flavour
elements of Vietnamese cuisine with the Wabi Sabi philosophy and aesthetics of Japan,
aiming to create an in-depth experience for patrons. This is a 5-member- project conducted
after a thorough research on the market. Recognizing the limitations of experiential culinary
models, Mộc Bistro was established to become a distinctive location that would expand on
the culinary experience.

Located in the city center, Mộc Bistro attracts many tourists. The project aims to provide not
only new services but also a healing message for customers in need of experience. However,
it needs to be based on actual data rather than predictions to ensure accurate planning and
strategy.

Going forward, Mộc Bistro is committed to continuing to grow and focus on customer
experience. This includes upgrading service quality, staff, and researching and developing
diverse business models. The goal is to always accompany customers, quickly grasp market

9
needs and trends to bring maximum satisfaction. With Wabi Sabi style, Mộc Bistro not only
combines Vietnamese and Japanese culinary culture but also changes and upgrades the staff
and searches for new recipes to bring a unique culinary experience. With a minimalist space,
professional service, and unique flavors, this restaurant has become a must-see destination for
food lovers, where visitors can explore creativity and enjoy.

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