6. MARKET ANALYSIS

6.1 Target market description

Gourmet Dan’s target audience is males/females aged 35 and upwards, probably topping out at around age 70. The typical diner will be slightly more mature in outlook, successful (or have been successful prior to retirement), probably be tertiary educated, and be seeking an authentic and novel dining experience which is not available through the franchised family steakhouses and ‘pub grub’ outlets that predominate in the area.

The target market will be drawn from the following: South African holidaymakers; international visitors; Garden Route residents, including retirees.

6.2 Market research

The owner has conducted research over the past six months, including visits to most (if not all) restaurants in Knysna and surrounds. His findings are as follows:

  • Number of licenced premises which may be classified as ‘restaurants’: 23
  • Number attached to a golf club/driving range/ski boat club/sports club: 9
  • Number offering casual ‘pub grub’-type meals: 7
  • Family steakhouses: 3
  • Specialist seafood restaurants: 3
  • Quality dining restaurants (excl. Gourmet Dan): 1

The above figures indicate that the quality dining sector of the market is notably under-serviced, particularly in view of the growth of this market in the Knysna area (see point 6.3 below)

6.3 Market trends

Figures obtained from Knysna Tourism show that SA-based visitor numbers have increased by an average of 7% per annum between 2000 and 2010. Similarly, international visitor numbers rose by an average of 6% over the same period.

This market is being catered to by an increasing number of new residential or holiday developments which are classified as ‘five star -plus’. These include the following: Simola Country Estate; Pezula Resort Hotel; The Heads Luxury Guest House; Sparrebosch Clifftop Estate; and Villa Bay Luxury Boutique Hotel.

Information from the Knysna Chamber of Commerce & Industry shows that the number of people in the AB income groups (upper two tiers) who are settling in the town is increasing by an average 8% per annum. This is supported by the Knysna Town Council’s data on new property sales in the R1-million plus price bracket, as well as new residential property developments catering to the same sector of the market. Indeed, there is presently a shortage of such properties, indicating strong growth in that sector of the market.

All of the above indicates that there are a growing number of people in the Knysna area who are affluent and seeking lifestyle experiences which are a cut above the traditional mass market offerings.