Hi, need to submit a 1500 words paper on the topic Challenges of Sylvias Bar in Birmingham.

Hi, need to submit a 1500 words paper on the topic Challenges of Sylvias Bar in Birmingham. The main objective of this report has been to identify the issues surrounding the bar and to analyse the problems. It also aims at offering adequate suggestions to the company so that it can improve its profitability and recapture the lost popularity. Defining the Issue There are generally three reasons behind the failure of a restaurant which include economic perspectives, marketing perspectives as well as managerial views. Among these three perspectives, most of the restaurants have been observed to fail because of the economic perspectives. The economic perspective can lead to failure of a restaurant because of the reasons such as lowered profits, weakened revenues and declining profits. The restaurants may also fail because of the marketing perspective wherein they may fail to operate at any specified locations, deliberate strategic selection of relocation, adjusting with the changing demographics, meeting the unrealised demand for any new product or service, consolidation of the market in order to acquire new market share in the targeted regions as well as rearrangement of the product portfolio necessitating chosen unit closures. Managerial perspective comprises the failures in the restaurants that occur because of the lack of competency within the managerial teams (Parsa & et. al., 2006). In the context of this case study, it has been noted that Sylvia faces many significant issues that need to be resolved in order to enhance the sales of the company and to increase the profits as well. One of the main issues that the restaurant has been confronting is related to the cost along with the menu of the restaurant. The drinks, as well as the food menu, have been targeted at high-class people and therefore it becomes difficult for the middle-class people to dine in the restaurant and thus the demand of the food has declined. Staffing has been the other vital issue related to Sylvia’s Bar. Since the restaurant employs the staffs who have completed their education from South Birmingham College, these staffs generally demand higher pay in comparison to the normal staffs. In such circumstance, it can be stated that a significant amount of the money earned by the company goes to the staffs which are a noteworthy issue in Sylvia. The other main issue hampering the profitability of Sylvia’ Bar has been related to the modes of entertainment that the restaurant uses for the purpose of attracting the customers. The restaurant plays old classic bands which belong to 1960s to 1990s. The old bands may be preferred by some of the customers but may not be the ultimate choice for the youth. Competition is one of the marketing problems that tend to hamper the effectiveness of the companies thereby impacting upon the sales as well as the revenues of the company. It has been noted that during the initiation of the restaurants, there were no competitors of Sylvia’s Bar. However, in recent times there are many local bars which cause a significant problem for the company. The attractiveness of the High Street has also been declining in the current times with young customers wanting to visit fashionable canal district. The company’s customers, as well as the staffs, are also not much satisfied with the service offered by the company.&nbsp.