Tapas Restaurant in London: Business Model Canvas and 7P’s

Paper Info
Page count 6
Word count 1750
Read time 7 min
Topic Business
Type Case Study
Language 🇺🇸 US


Starting your own business is a difficult endeavor, and before doing so, significant research is required, and a business plan is the best approach to convey it. Before even contemplating investing in the firm, investors must see some strong foundations. This is why the preparation of the business has to begin with a thorough analysis, which can be conducted using different strategic management tools. The Business Model Canvas (BMC) is a strategic management tool used to establish and express a business idea or concept quickly and easily.

It is a one-page document that goes through the key features of a business or product, outlining a concept in a logical manner.

Business Model Canvas

This BMC is based on a restaurant in London and will present each element of the BMC. The restaurant will be located near one of the college campuses and will offer the visitors tapas and hot drinks. Tapa is a Spanish term that means “appetizer” or “snack” (Bowler, 2018). The concept of tapas is that the meal comprises a variety of little bits that are often consumed with one’s hands. Tapas are frequently consumed before lunch or dinner in Spanish culture. Despite the fact that tapas is popular as a lunch or supper option nowadays.

The competition in the restaurant business in London is high; however, in this business, the location of the place can be the key competitive advantage. In this area, there are several restaurants that offer similar services; hence the number of competitors is substantial. The gap in this segment that this the lack of a food service that would offer something not traditionally served in England. Tapas is a dish that is traditional in Spanish-speaking cultures and is something unusual for the local customers.

7P’s is an analysis based on the Marketing Mix theory that allows one to analyze the product or services from different viewpoints and gain a better competitive advantage. The people required for this business are the employees who will prepare the food and serve it to customers (“Understanding the 7Ps of the marketing mix,” 2020). The processes are linked to the chain of preparing the meals. The physical evidence is the actual tapa dishes served to the clients. The product, in this case, is the restaurant services, which include hot meals and drinks. The price, in this case, will be minimal, as the restaurant will be tailored towards the volume of sales as opposed to the high cost. The promotion will include advertisements on social media networks popular among the youth and posters located around the campus of the university.

Key Partners
  • Food suppliers
  • Persone
Key Activities
  • Preparation of food
Value Proposition
  • Spanish dish
  • Low-cost
Customer relationships
  • Direct interactions
  • Social media
Customer Segments
  • University students
  • Young professionals
Key Resources
  • Produce
  • Employees
  • The restaurant
Cost Structure
  • Ingredients
  • Advertisement
  • Salaries
  • Utilities
  • Rent
Revenue Streams
  • Dishes
  • Drinks

Table 1. Business Model Canvas (created by the author)

Customer Segments

Client segmentation is the technique of breaking a customer base into groups of people who share characteristics such as age, gender, hobbies, and purchasing patterns. The first customer segment is students living in the area who can use the restaurant to have their meals in between classes and can use the open space area for studying. These students typically do not have an income or earn a minimal wage, which is the factor that will impact the pricing model. The second customer segment is a young professional living in this area who needs an inexpensive place to eat on a regular basis. Their interests are new cultures and gaining new experiences, which is why they would be interested in this restaurant. Instruments used include social media; hence, written and visual communication methods will be applied.

Value Proposition

This restaurant aims to give clients outstanding culinary experiences by serving well-served, unusual, and notably unique Spanish tapas. The restaurant owner also wishes to deliver cheap experiences, such as pricing that is as close to the costs in the nation of origin as feasible. The restaurant owner wishes to bring all of the aforementioned experiences closer to the consumer, who would otherwise have to go to another nation to find them. For the first customer segment, which is students from a nearby university, this restaurant will provide a place to eat and study.


Channels are the model’s third component, and it is critical for a company to choose how to communicate with consumers and how to raise their knowledge of the firm and its value offerings. Customers, on the other hand, require a method to contact the firm in any situation involving the company’s actions (Jeffries, 2018). This might be if clients want assistance in using or upgrading a new product they have purchased. As a result, it has a direct impact on the customer’s experience and pleasure.

There are two types of channels from which a firm may select the optimal combination to reach and serve its consumers. These are direct and indirect channels, with owned and partner channels distinguished. Direct channels imply that the firm has its own ways to contact and servicing clients, and hence it is frequently more expensive to run. Owned channels can also be indirect, such as when a firm operates its own retail locations. In most cases, indirect channels are partner channels that operate at lower margins.

Customer Relationships

An entrepreneur must grasp the type of relationship that a firm should develop with each consumer category. It is critical for a firm to determine what sort of connection its consumers require and whether there are any distinct groups that should be treated better than others. There might be a variety of motives motivating the company’s decision on the type of connection it wants to build with its clients. These might include, for example, acquiring new consumers, maintaining existing customers, or attempting to increase revenue.

The nature of the interactions with customers might be intimate, involving direct contact with clients and even face-to-face meetings. In contrast, the relationship might be self-serving, with consumers expected to self-serve themselves with the assistance of appropriate knowledge and material given by the firm (Jeffries, 2018). Many times, a firm may give a client an automated service in which the consumer can, for example, create their own profile on the company’s website where they can obtain even more advanced self-service. In a restaurant business, managing customer relationships is crucial, and it will be accomplished through face-to-face interactions with the staff and the restaurants’ social media.

Revenue Streams

The entrepreneur should determine what customers are willing to pay for, where the firm would receive money, and what attributes and payment methods a customer would value so that they would pay for it, and the company would begin to create money. It is critical for a corporation to identify and direct certain money sources in order to cover costs and earn from the business. With a restaurant business such as this tapas restaurant, the revenue is derived from the sales of the food. Hence, the main revenue stream is the food, while additional revenue will be derived from selling drinks such as coffee or soda.

Key Resources

To ensure that the business runs smoothly, it is necessary to determine the critical resources that the organization needs for its operations. Physical, financial, intellectual, and human resources are all examples of resources (Miro, n.d.). For example, in most circumstances, a business needs a location as well as the essential equipment to function. A business needs funds to establish the value proposition and advertise the product or service. Furthermore, a corporation might rely on intellectual resources such as patents to offer distinctive value to a consumer. In most circumstances, a corporation will also require human resources or employees to work in these domains.

The primary resource that a tapas restaurant needs is the people who will work in the kitchen, clean the place, and interact with customers. The main barrier with this resource is the lack of employees searching for a job in the area. Additionally, the restaurant will need to obtain products from suppliers on a regular basis to prepare the food for the restaurant. The main issue here may be the disruption of the supply chains caused by the recent COVID-19 pandemic (Boroh, 2020). This may affect the supplier’s ability to send the products required in a timely manner.

Key Activities

This block assists the organization in understanding the critical things that must be done in order for the business model to work and the business to operate correctly. It explains to the organization what procedures they must follow at each stage to get the intended result. Some issues that might hinder the development of this idea are further government restrictions linked to COVID-19 since this will make it impossible to serve customers in the restaurant (Boroh, 2020). However, the government’s vaccinations policy and openness to help businesses will allow the idea to excel.

Key Partnerships

It is critical for the organization to have the appropriate contacts in order to provide and support the activities. Obtaining the required finances for the firm usually necessitates the formation of a partnership. Partnerships are also utilized to reduce market risks and establish a better market position. Partnerships may be classified into four main sorts, which are non-rival strategic alliances, competition or strategic collaboration between rivals, joint ventures, and buyer-supplier relationships. The key partners for this business are suppliers and advertisers since the business will depend on the ability to receive products, and advertisement companies will help raise awareness about this business. The risks include disruptions of supply chains and the inability to obtain finances for the business to open this restaurant.

Cost Structure

It is important for an entrepreneur to understand the costs of running a firm. The organization incurs expenditures as a result of value propositions, customer relationship maintenance, and revenue sources. Table 2 shows the expected cost structure and break-even point. The potential barrier that this restaurant might face is an insufficient number of clients during the first months, which will impact the profits.

Revenue structure (created by the author)
Table 2. Revenue structure (created by the author).


In summary, this paper provides a summary of a business case analysis based on a tapas restaurant in London. The idea is outlined using the Business Model Canvas and 7P’s. The gap, after analyzing the competition in this area, is a lack of a food offer that is not traditional for London and the UK. This paper presents the Business Model Canvas and the Revenue Streams table showing the cost structure for this business.


Boroh, J. (2020). Strategies during pandemic for restaurant and café businesses using business model canvas. The European Business Review.

Bowler, J. (2018). What is tapas food? Go Espana.

Do, X. (2020). Creating a business model canvas specializing in financials for a hot pot restaurant in Finland. Larua.

Jeffries, I. (2018). How to fill in a business model canvas

Miro. (n.d.). Business model canvas.

Understanding the 7Ps of the marketing mix. (2020).

Cite this paper


NerdyBro. (2023, April 3). Tapas Restaurant in London: Business Model Canvas and 7P's. Retrieved from https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/


NerdyBro. (2023, April 3). Tapas Restaurant in London: Business Model Canvas and 7P's. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/

Work Cited

"Tapas Restaurant in London: Business Model Canvas and 7P's." NerdyBro, 3 Apr. 2023, nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.


NerdyBro. (2023) 'Tapas Restaurant in London: Business Model Canvas and 7P's'. 3 April.


NerdyBro. 2023. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.

1. NerdyBro. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.


NerdyBro. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.


NerdyBro. 2023. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.

1. NerdyBro. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.


NerdyBro. "Tapas Restaurant in London: Business Model Canvas and 7P's." April 3, 2023. https://nerdybro.com/tapas-restaurant-in-london-business-model-canvas-and-7ps/.