Economic science/ Regional economics

Candidate of technical sciences Varvarina N.M., Kardayeva I.A.

Sevastopol economy -technological faculty of Donetsk national university of economy and trade named after Michael Tugan-Baranovsky

Features of restaurant business development in Sevastopol

Restaurant business in Sevastopol is developing according to the tendencies of Ukraine as whole though its development has the specific features conditioned by a climate-geographical position of the city. The active extension of tourist-recreational activity in the city provides the increase of consumers demand on restaurant services in this sphere.

Nobody was engaged in deep research of the indicated problem until now. The urgency of its studying for practical embodiment of results at designing new and changing the structure of operating city establishments is obvious.

In accordance with the statement of some researchers on the considered problem [1] the macroeconomic factor of development of economic relations in the state and regions, the development tendencies of small and average business in different fields of national economy activity essentially influence on the increase number of enterprises of certain type and a production price level.

Economic parameters of a restaurant business development according to statistical data testify to positive dynamics of production realization and giving services in the specified sphere (fig.1).

The increase volumes of realization and the influence of constant cost growth of raw material and the prices of production realization and services in this sphere illustrate sudden growth of volume of quantitative indexes of commodity turnover in restaurant business establishments in 2005-2006.

Geographical position of Sevastopol as deadlock point of transporting southern highways, its long-term isolation owing to the status of the closed military base have caused the slow development of restaurant business in comparison with the capital and large mega cities. This lag is marked and today, despite of increase inflow of investments from the outside.

2003 2004 2005 2006

Figure 1 - Dynamics of commodity circulation in a restaurant business

Some features of restaurant business development in Sevastopol are marked while making analytical analysis.

First, for the last years there was a cohort of elite establishments in a restaurant business network, which has minimal prospects expansion. It is caused by the action of the macroeconomic factor of stabilization of consumers’ number with very high level of well-being. The second reason of development braking of this network is the need for the high starting financing at low profitability of expensive projects and the big term of their recoupment.

As a whole the clientele of elite establishments differs by an enviable constancy in visiting the chosen establishments of a restaurant business. However prompt market development of new establishments under condition of their opening in a fashionable format with interesting concept and at due advertising threatens by the enticement of the VIP class clientele. Therefore it is very actual the keeping strategy of a constant contingent for the owners of elite restaurants, bars and coffee houses. For this purpose many of them apply such services as cards, system of discounts, preferential prices on products at the next visits or orders on a certain sum, constant reservation of places of the high demand at consumers and etc.

It is going on the tendency of opening the new establishments with low and middle prices such as fast food, specialized snack bars. Thus there is a lot of such kind of establishments in resting zones and in the places of mass accumulation of consumers. Many of them are planning to be opened in the nearest future.

In opinion of experts [1], a middle price segment of restaurant business establishments, i.e. its distribution testifies to the level of economic development of region, city and of a well-being level of its inhabitants. For regions with the developed tourist-recreational activity is significant considerable influence on demand of restaurant services of certain price segment of social status and a purchased possibility of consumers among city visitors. In particular case this influence is carried out during summer holiday of tourists arriving to Sevastopol from our country and abroad. As statistics shows, most of the nonresident consumer is a person of middle well-being at the age of 25-45 years. First of all city visitors demand positively influences on profitability of establishments which work in the average price segment.

Moreover establishments with the average level of the extra charge on its own production and purchased goods are overtaking as they have high turnover of places during a day time. But this index essentially depends on a site of establishment, its material base, level of products quality and service and some other factors.

The high rent price is a great difficulty for network development of the cheap establishments. Therefore the tendency of expansion of such establishments due to opening specialized snack bars and the establishments of a fast food type nearby the supermarkets speaks about the mutually advantageous versatile offer of other consumer goods, culinary production and conditions for its consumption.

Lately there is a penetration of franchise companies on the market of a city restaurant business and opening the establishments which work according to the concept working out and operating in other cities. It is marked the growth of specialized establishments earlier practically not presented in city (cafe-confectioner's shops, coffee houses, sushi-bars, sports bars), and also networks of entertaining establishments such as night clubs, disco-bars. The most part of these establishments carries a seasonal character with high concentration at the seaside area.

The analysis of restaurants activity with national cuisine in the city shows that there are only few restaurants of such kind. So we have a great opportunity to open more catering establishments of this market segment. Restaurants with national Ukrainian cuisine in the city are presented by small catering establishments called as ethno-cafe. They are very few in number and the growth of such kind of establishments is the main aim of the nearest future.

There are no conceptual and conventionalized restaurants and cafe in the market. There is a great deficiency in establishments with thematic cultural-entertaining programs.

The result of carried out researches in city restaurant business development is following: there are common tendencies in our city restaurant business connected with the whole Ukrainian tendencies and there is a specific tendency peculiar to holiday resort-recreational zone.

As a whole we can say all founders and owners of restaurant establishments are working for making such atmosphere, menu and a quality degree of their production and services that will be good for strict consumer demands.

It is necessary to carry out further researches because of the absence of the detailed analysis on a disposition of a restaurant network the specified data on types and classes of establishments, their specializations, and also comparison of an actual condition with normative data. Their results will certainly interest operating experts at drawing up business-plans and the forecast of new restaurant business activity.

The literature:

1. Nasonova O. Tendencies of restaurant business development in Ukraine: "Cheap but good" / O.Nasonova, L.Danilenko. - Electron. data (326 bytes). - The mode of access: htpp:/www. restoran. ua.

2. The Statistical year-book of Sevastopol for 2006 / Under edition of M. Моtоva - Sevastopol: Management of statistics in Sevastopol, 2007. – 270 p.