Free Projected Growth, Competition And Legislation That Will Affect Kismet Café Research Paper Sample

Type of paper: Research Paper

Topic: Business, Restaurants, Growth, Industry, Food, Smoke, City, Services

Pages: 5

Words: 1375

Published: 2021/02/19

The future of the restaurant business in Texas is lush, especially in Austin. The National Restaurant Association 2015 Restaurant Industry Forecast and Trends report projects that the restaurant business in Texas will experience a growth of 4.8 percent in 2015 to attain sales revenue of $44.5 billion. What is more is that the restaurant industry is expected to employ over 1.2 million workers in 2016, with an additional workforce of 260,700 in a period of ten years. Even though the additional jobs created in the economy are in the professional and business services, the restaurant industry is proving to grow in a vast manner and it anticipated that in the coming years, it will surpass the professional and business services (Your Houston News, 2015). Being the capital of Texas, Austin houses a greater share of restaurants in the entire state. As such, the projected growth can be inferred to mean that the restaurant business in Austin is expected to flourish in the coming years.
The economy of Austin has been under constant growth, and this is set to continue in the future years. In average, the annual economic growth of the auction, between 20002 and 2014, has been 5.7 percent. The same trend is expected in 2015. The employment growth rate is expected to be relatively slow, that is, 3.1 percent down from 3.8 percent in 2014. In fact, it is projected that 69,400 new jobs will be created in 2015 and 2016, and many of these jobs will be in the restaurant industry. The growth of the restaurant industry is also boosted by the movement of people to Austin. In 2014, 66,000 people moved to Austin and in 2015 and the coming years, it is expected that this figure will even reach two-folds due to the potential growth that the economy of Austin has demonstrated (Buchholz, 2015). A large population translates to more restaurant customers and hence a surge in the restaurant business in Austin is unmistakable.
On the flipside, the projected growth of the restaurant industry in Austin has and will continue to heighten the degree of competition in the region. Over the years, Austin has emerged as the most expensive city in terms of housing space across Texas. It has been driven by the vast population growth, which surpasses supply and hence the high price for housing (Dinges, 2015). However, in the recent years, new restaurants and shops have popped up across Austin, and this trend is expected to be extended into the futurity. This is because, despite the occupancy of Austin approaching 96 percent, developers are enduring sleepless nights as they try to conceive novel ideas of adding space in the already congested Austin in order to meet the increasing demand. For instance, the Domain in the north of Austin is expected to be opened in 2016 and will house several restaurants (Turnquist Partners, 2014). In this sense, Kismet café should not overlook the impact the anticipated competition will have to its business.
Additionally, the Hispanics are increasing in number in Auction and the judging from their previous success in the restaurant business, the competition they pose cannot be neglected. Hispanics in Austin have demonstrated their proficiency not only in the restaurant industry, but also in other businesses. In 2013 alone, the Hispanic-owned businesses posted $4.8 billion in revenues, which represents a 90 percent increase over the revenues of 2007. It is projected that more robust growth in the future is destiny, especially in the Central Texas, where Austin is situated. The increased movement of Hispanics to Austin has led to the heightening of Hispanic business owners, who have a special interest in the restaurant business. In fact, 36 percent of the population in Austin is Hispanic (Castillo, 2015). Consequentially, the Hispanic people have supported each other and are outpacing the other players in the industry. More particularly, the Hispanic restaurant owners have been successful and have been gained recognition in the city of Austin (Barr, 2014). The success the Hispanic restaurant owners in Austin has revealed is not growing any weaker and this jeopardizes the prospects of other restaurants in Austin, such as Kismet café, and therefore smart thinking has to be utilized to counter the competition from the major players in the industry.
Recent legislation in regard to restaurant businesses will also have a substantial impact on the business of kismet Café. Firstly, restaurants and other food businesses in Austin are expected to compost food scraps as from the beginning of 2016. Food service businesses will be expected to separate out compostable and organic material from their trash before having it collected by private haulers. What is more is that large food service businesses are expected to recycle materials, such as aluminum, plastics, and paper. The essence of passing this kind of legislation is that the City Council urgently needs to achieve its zero-waste goal that entail the dramatic reduction of trash that is sent to landfills by the year 2040. Currently, food craps and other compatibles materials constitute approximately half of the trash generated by restaurants. Through keeping these materials away from landfills, the City Council will enhance the achievement of the zero-waste objective. However, the compostable material will not be collected by City crews; food service businesses will be expected to hire private companies to collect these materials and the city of Austin already has several companies offering compost collection services. The major challenge with this legislation, which is expected to be implemented by large food services and the small food services will follow suit later, is that restaurants have to look for additional space for dumpsters and perhaps, many will resolve to give up their parking spaces (Coppola and Toohey, 2013). Besides, restaurant owners have to dig deep into their pockets to pay the for the compost collections services. Intrinsically, Kismet café and other restaurants in the auction will be on the receiving end of this novel legislation, and a strategy has to be put in place beforehand.
Additionally, a city ordinance to enable better management of smoke emissions is yet to be made formal. Barbecue restaurants have proved to be a menace to the quality of life of residents near the restaurants in Austin. After the residents had raised their concerns over the detrimental effects of the smoke emissions, a solution was posited and it requires that restaurants across Austin should either utilize smoke scrubbers to mitigate smoke emissions or compensate the residents for the effect the smoke emission is causing to their health. In fact, other residents, despite living far from the restaurants, raised concerns that they are being affected by the smoke emission because the smoke travels far distances (Curington, 2015). Even though no formal legislation has been made in regard these issues, the City Council is deliberating on the issue in order to find an appropriate solution and subsequently make it a law. Vaughn (2015) speculates that the suggestions made by the residents will be legislated. Given this, Kismet café has o rethink its success strategy and incorporate the issue smoke emission so that if the law is passed in favor of the residents, then it will have little or no effect on the operations of Kismet café.


Conclusively, Kismet café has opportunities as well as a fair share of threats for growth. The restaurant industry is expected to continue growing in the coming years, and this provides an ideal opportunity for Kismet explore. However, the growth of the restaurant business in Austin has attracted more players into the industry as a consequence of anticipated stiff competition to the already established restaurants. Moreover, the Hispanic business owners have been successful in their business operations in Austin, especially in the restaurant industry, and this trend is expected to be carried on into the future. It has heightened the level of expected competition to local restaurants like Kismet. Recent and anticipated legislation also have a substantial impact on the business of Kismet. The Requirement that food business should compost food scraps will translate to an extra cost of restaurants and the recent concerns over smoke emissions will translate into an additional cost on the side of restaurants, such as Kismet. Finally, the anticipated amelioration in the operations of the City Health Department will mean that restaurants, such as Kismet, will be expected to step-up their hygiene standards so as to avoid negative reviews. Without a doubt, consideration has to be made on these crucial issues if at all the prospects of Kismet have to be upheld; otherwise, the future is bleak.


Barr, G. (2014, September 14). Hispanic Chamber Honors 2014 'Celebrando Austin' Award
Winners. Austin Business Journal. Retrieved from
Buchholz, J. (2015, January 8). What does the future hold for Austin? Respected Economist
Tells All. Austin Business Journal. Retrieved from
Castillo, J. (2015, April 11). Meet Austin, Texas's Growing Ranks Of Latino Business
Owners. NBC News. Retrieved from
Collister, B. & Ellis, J. (2015, February 1). City Health Department Falls Short On Restaurant
Inspections. Kxan Investigates. Retrieved from
Coppola, S. & Toohey, M. (2013, April 26). Austin Restaurants Must Compost Food Scraps
Starting In 2016. American Statesman. Retrieved from
Curington, J. (2015, April 2). Stakeholders Will Gather To Find Solutions For Barbecue Smoke
Complaints. Impact Newspaper. Retrieved from
Dinges, G. (2015, January 6). Austin’s Economy in 2015: Momentum Likely to Continue. Civil
Analytics. Retrieved from
Turnquist Partners. (2014, November 10). Austin’s Latest Restaurant Openings and What to
Come In 2015. Turnquist. Retrieved from
Vaughn, D. (2015, march 31).Scrubbing Out Austin’s BBQ Growth? A Resolution Substitution.
TMBBQ. Retrieved from
2015. News. Retrieved from

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Free Projected Growth, Competition And Legislation That Will Affect Kismet Café Research Paper Sample. Free Essay Examples - Published Feb 19, 2021. Accessed June 08, 2023.

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