Question

1. Luci and Sherry have decided to lease some newly built premises for the purpose of opening a seafood outlet. They intend to provide a wide range of different products, including a variety of seafood for sale and take-away fish and chips.

Discuss the types of economic decisions that they will be required to make, and the information that they will need to make those decisions. Distinguish non-economic and economic information, identify non-economic decisions that they will also be required to make. Discuss why Luci and Sherry may require the services of an accountant.

Answer 1

Please mentioned below the answer

If you’re within the shores of the UK, you’re never more than 70 miles from the sea (the furthest possible inland distance). This means fresh fish can be ferried from the coast to anywhere in less than a day.

It’s no wonder then that fish and chips has endured as one of the nation’s favourite dishes and fish and chips shops can be found in every town from Land’s End to John o’ Groats. According to the National Federation of Fish Friers (NFFF) There are currently 10,500 specialist fish and chip shops in the country, surpassing more than any major fast food brand.

Indeed,its historical relationship to British industriousness, entrepreneurialism and fighting spirit cannot be understated: fish and chips exploded during the industrial revolution as railways linked the coast and cities, fuelling the hungry workers of England’s manufacturing towns. And during both the first and second world wars, the dish was made exempt from rationing by Lloyd George and Winston Churchill respectively; such was its importance to national morale.

Today, Brits eat a staggering 382 million fish and chip shop meals every year, with 167 million of that figure accounted for by portions fish and chips. They use around 10% of all the UK’s potato crop and 30% of all white fish. The industry generates an estimated £1.2bn every year.

There’s even an Oscar’s of the fish and chip shop world – the National Fish & Chip Awards, which assesses the country’s chippies on responsible sourcing, menu diversification, customer service, and quality.

Given this, owning a fish and chip shop seems a sure-fire way to capitalise on our bountiful coastal waters and ravenous appetites.

Here’s how to run a successful fish and chip shop:

· Fish and chip shop business plan

· Work out how much you might make

· Financing your fish and chip shop

· Fish and chip shop suppliers

· Get the right fish and chips equipment

· Taking payments in a fish and chip shop

· Comply with fish and chip industry regulations

· Get creative with your fish and chip shop branding

· Hiring fish and chip shop staff

· Selling a fish a chip shop

Think about a location first

Finding the right location for running a fish and chip shop is a vital first step in ensuring you will have a successful and profitable business.

You could find an existing fish and chip shop for sale and takeover its existing customer base and equipment, or, if you’re not ready to commit to buying one outright, there are plenty of fish and chip shops for rent.

Before deciding, establish the reasons why the fish and chip shop is being given up for sale in the first place. It could just be that the current management are ready to move onto new horizons, or it could be that the shop has problems beyond control that make it a poor investment.

Here’s what you should consider when choosing a location for your fish and chip shop:

· Low-income area – as an affordable but delicious meal, fish and chips have always found success in low income areas. Provided there’s a ready supply of local punters and not too much competition, a low-income area can represent a good location

· High-income area – though people will have more disposable income, they are more likely to cook at home or go to restaurants in high income areas. That said, a high-quality fish and chip shop could still succeed

· Mixed income/ high footfall – areas such as town centres or busy high streets are going to give you the highest footfall but also cost the most in rent and rates. You may also have more competition.

Other considerations:

· Proximity to competition – being relatively close to competitors can actually be advantageous to a small business. Hungry customers like options, and if yours is the best of the choices, that’s where they’ll spend their pennies. Use nearby competitors strategically to show off your superior offering

· Cleanliness/ maintenance – check for signs of damp or vermin and that the property is maintained. Although things can be cleaned, there are some recurring issues it can be expensive and difficult to deal with

· Reputation – research customer reviews of the fish and chip shop you intend to buy before committing. If it’s got a poor local reputation, you’re going to have to put a lot of time and effort into swinging that around

You can find a variety of fish and chips shops for sale across the UK here.

Some fish and chip shops are for sale with accommodation if you value the convenience of living where you work

Read more: how to start a bed and breakfast business.

Fish and chip shop business plan

As with any business, you should write a thorough and detailed business plan for your fish and chip shop before committing to anything.

You can find out more about writing a business plan here and download our business plan template here.

Your business plan should include:

· An executive summary – summarising the main points of the business plan

· Introduction to the business – mission statement, objectives, legal and capital structure

· Management – establish background and credibility of the management team

· The market – target customers, market trends/ size etc.

· Competitive analysis – strategy, pricing, selling channels

· Operational details – premises, materials, equipment, staffing

· Financial overview – sales and profit, projections, funding requirements

Consider project and team management tools

Opening any business takes time and effort, and it's important to make sure that you get it right. Luckily there are software and tools available to help simplify the various processes involved.

Take a look at the options below to find the best project management tool for you.

When Luci and sherry decide to start a sea food outlet. The first discussion which is very needy, When consumers are asked what is most important when choosing food, taste is the most likely response. Economic considerations may also influence consumer food choice behavior. Evidence suggests that seafood is a good substitute for other protein foods.when consumers are presented with new information, like balancing health benefits with risks of seafood choices, food choice behavior theories suggest that they will interpret and respond to this information in light of their existing beliefs, attitudes, and habits, and will be influenced by situational factors as much as or more than by the content of the information.
Ingredient labeling gives consumers content information about packaged seafood products. That make it more informative and attract the cutomers.