The competitiveness of restaurant business establishments in Chernivtsi

According to definition given at the European Forum for Quality Management, competitiveness of a company represents its real and potential opportunities in its present conditions to develop, produce and realize goods that appear to be more attractive than the competitor’s if their price and non-price merits are taken into account. Specific nature of competition in restaurant business is connected with functions characteristic for industrial enterprises when the latter manufacture, realize and organize the consumption of their products. Combination of functions of production and non-production spheres preconditions complicacy of the subject of competition in public catering establishments. Unlike in many other sectors of industry where the subject of competition is represented by production, works or services, competitiveness of economic entity in restaurant business depends on competitiveness of both product and the offered services. It should be noted that, in present-day conditions of development of national economics, services are more and more often regarded as a way to enrich the value of a single company in consumer’s eyes and thus provide for the company’s competitiveness within a certain period of time. However, unlike in many other sectors, the provision of services and organization of serving in restaurant business stand out as integral components and are inseparably apprehended by the consumer when he is served the offered company’s product. Restaurant business in present-day market conditions is characterized as one of the most dynamic sectors of national economy. Market makes restaurants not only produce qualitative products and realize them but take measures to help reduce the product’s first cost and increase the consumers’ demands. A catering establishment should possess such spectrum of competitive positions that would provide for being one step ahead in its specialization And solution of this problem needs some number of new theoretical and applied developments directed to formation of restaurant’s competitive positions and its competition strategy. Broadly speaking, in characterization of the essence of the concept of “restaurant’s competitive positions”, we should emphasize that such positions represent combinations of all restaurant’s available resources (primary, spatial, labor, managerial, technological, information, marketing, etc), and such ways of their use that would provide for wider capacities to produce and realize goods and services in comparison to competitors. Sources that form competitive positions in restaurant business are represented by qualified labor, favorable conditions for production, creation of new products and introduction of innovations, essential reduction of first cost, product’s high quality, unique and optimal assortment that fits visitors’ demands, regulation of establishment’s own prices, high levels of social responsibility and serving. The principal task of restaurant industry is defined by the concept of hospitability determined as satisfaction of the customer’s most particular wishes, for, if guests did not find enjoyment in visiting restaurant, no other thing matters. Organization of catering does not provide for satisfaction of only gastronomic demands, but for the rest and entertainment, i.e., satisfaction of socio-cultural demands. The intensification of the competition is accompanied by the emergence of a large number of competing dining establishments both on the domestic and foreign markets, an increase in market requirements, which forces the restaurant to constantly develop its strategic potential, look for possible options for its effective use, and so to create new competitive advantages. The presence of these advantages in the restaurant industry is one of the most important conditions for obtaining a surplus and its further development, which determines the relevance of the research topic. So, the present study aimed at disclosure of the ways that would help increase the competitiveness and the efficiency in public catering establishments in present-day conditions of economic management. The article discusses the concept of competitive advantages, analyzes the indicators for assessing competitiveness, and proposes criteria for rating the competitive advantages in restaurant business. The total rating of the company combines all the most important parameters (indicators) of financial and economic activity, marketing, investment, production activities, etc. Ratings of the competitiveness of restaurants make it possible to allocate the best restaurants, as well as determine the following goals of the restaurants, which gain a small number of points. These goals include: effective use of the potential; defining and expanding the range of products, modern serving of dishes; development and introduction of new forms of service; definition of a complex of restaurant services based on the study of the wishes of consumers; increase of staff competitiveness; reduction of restaurant expenses; attracting new customers using a modern advertising campaign, etc. Key words: competitive positions; restaurant business; ranking score of competitiveness.