Comprehensive Business Plan for Spicy Treat Restaurant in Canada

This report presents a detailed business plan for the "Spicy Treat" restaurant, focusing on its launch in Ottawa, Canada. The plan encompasses various crucial aspects including the Business Canvas Model, cost analysis (fixed and variable), service rates, and daily operational routines. It also includes a comprehensive financial plan with income and expenditure projections, break-even analysis, and identifies sources of funding. The marketing plan outlines objectives, pricing strategies, and location analysis. Furthermore, the report addresses operational strategies, risk analysis, and SWOT analysis. The report concludes with recommendations to ensure the restaurant's success, providing a thorough overview of its potential for profitability and market share acquisition. The restaurant aims to provide high-quality food and excellent service to its customers and also plans to take contracts for parties and marriages to increase its revenue.

Business Plan

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Table of Contents
INTRODUCTION...........................................................................................................................3
Business Canvas Model...................................................................................................................3
Fixed and Variable Costs in Spicy Restaurant.................................................................................4
Service Rates Provided by Spicy Restaurant ..................................................................................5
Daily Routine Work of Spicy Restaurant........................................................................................5
Operational Plan of Spicy Restaurant ( Day to Day).......................................................................5
Report Abstract................................................................................................................................6
Executive Summary.........................................................................................................................6
Company Background + Types of Business And Location.............................................................6
Management Team...........................................................................................................................7
Job Descriptions..........................................................................................................................7
Financial Plan...................................................................................................................................8
Break Even Analysis........................................................................................................................9
Capital Required............................................................................................................................10
Sources of Fund.............................................................................................................................10
Marketing Plan...............................................................................................................................12
Marketing Objectives:...............................................................................................................12
Pricing Strategy:........................................................................................................................12
Marketing Communications:.....................................................................................................12
Location Analysis..........................................................................................................................13
Manufacturing Plan........................................................................................................................13
Operational Plan ............................................................................................................................14
Risk Analysis and SWOT Analysis...............................................................................................15
CONCLUSION..............................................................................................................................17
Recommendations..........................................................................................................................17
Terms and Glossary.......................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business Plan can be defined as a document which describes about new launches of
products or services to be made by a company (Business Plan, 2019). It includes various tasks to
be included in the new launching of the business such staffing, planning, organising, leadership,
controlling, financing, feasibility, etc. all are taken into consideration in the launch of a new
business. The new restaurant is launched with the name “Spicy Treat”. The assignment will
focus on the launching of a new restaurant business in Canada. Further the feasibility of the new
business project will also known with the help of doing Business Canvas model, Cash Flow, Job
Descriptions, Financial Plan of the new business, marketing plan which will focus on marketing
objectives, the pricing strategy which it will use for fixing the price of their products, Location
Analysis will also be done (Ullah and Lai, 2013). In addition to this, the location analysis will
also be done, risk factor related to the new business proposal will also be done by doing SWOT
Analysis on the new business and the manufacturing plan will also be prepared in this
assignment. The following document will also outline the overall business plan proposed
whether it will earn sufficient to make the restaurant survive in the market and capture sufficient
market share.
Business Canvas Model
The following Model was propounded by Alexander Osterwalder. The following
provides the knowledge about various aspects which business has to look upon while opening
any new business venture. and it is divided into nine segments (Alexander, 2012). The Model is
applied to the Spicy Restaurant which will provide it with overhead and improvisation in the
project of new business launch:
Key partners
-Food Suppliers
-Government
-Wine Suppliers
-Interior Designers
-Kitchen Rental
Key
Activities
-Good
Customer
Service
-Fast and
Value Proposition
-Oil free food.
-Providing high Quality
goods at lower prices
-Minimize cost and
maximize profit.
Customer
Relationship
-By registering
the likes and
dislikes of regular
customers and
Customer Segments
- Medium Class
People
-High Class People
- Students and Adults

-Food Delivery Firms Efficient
Service
-Excellent
Food Quality
-Qualified
Employees
- Customer Satisfaction
- Time and Cost Saving
providing them
according to their
demand.
-Taking Customer
Reviews
Distribution Channels
-Web page
-Hoardings
-Bill Boards
-Emailing
-Direct Contact
Key resources
-Human capital
-Food Providers
-Employees
-Utensils
-Food Making Equipment
-Raw Materials
Cost Structure
-Marketing Expenses
-Salaries to Employees
-Office rental expenses
-Operating Expenses
-Basic Services
-Miscellaneous Expenses
Revenues
-Will earn money by
providing food and wine
to the customers.
-By taking contracts of
parties and marriages.
-Number of visitors of
website
Fixed and Variable Costs in Spicy Restaurant
In opening a new business, it has to occur some costs (Anderson, 2015). Costs can be
defined as amount which his paid for completing the purchase or exchange process in between

two or more persons. The are different types of costs but a business have only two types of costs
which are fixed and variable costs. Fixed costs are those costs which are which remain
unchanged and are not affected by the change in the production. It includes the rent of building,
depreciation on machinery, etc. On the other hand Variable Costs are those costs which vary
with the output and also changes as there comes a change in the production. These costs totally
depends upon the production (Baliga and Rodrigues, 2015). It includes costs such as wages,
salaries, mobile bills, miscellaneous expenses, etc. are included in the variable costs.
Service Rates Provided by Spicy Restaurant
Spicy Restaurant will provide their customers with a number of services such as lunch,
dinner, weekend dinners. The description of these services and their prices are discussed as
under:
Description Price per Guest No. of Guests Total
Lunch Per Day C$9.00 200 C$1800
Dinner Per
Day
C$17.00 60 C$1020
Dinner
Weekend
C$17.00 100 C$1700
Total Sales Per
Day
C$2820
Total Sales Per Month 20 Days (Working Days) = 20 * C$2820 = C$ 56400
Total sales Per Month 8 Days (Weekends) = 8 * C$1700 = C$13600
Total Sales Per Month (Including Both Working Days as well as Weekends) = C$70000
Daily Routine Work of Spicy Restaurant
For properly maintaining and completing the work on time, the schedule for the day has
been prepared of Spicy Restaurant (Bell, Bryman and Harley, 2018). The following are the
details provided for the daily work routine and time at which different tasks of the restaurant will
be carried out:

Operational Plan of Spicy Restaurant ( Day to Day)
The Spicy Restaurant will remain operate only for five days in a week and the description
of the timing is provided as under:
Days Time
Monday 11:00 A.M.-09:30P.M.
Tuesday 11:00 A.M.-09:30P.M.
Wednesday 11:00 A.M.-09:30P.M.
Thursday 11:00 A.M.-09:30P.M.
Friday 11:00 A.M.-09:30P.M.
Report Abstract
The following report is on opening a new business venture. It is about opening a new
restaurant in Ottawa, Canada. For this business plan has been prepared which covers various
aspects which affects the business such as SWOT Analysis, Business Canvas Model, Break Even
Analysis, Sources of Funds, Operational Plan of the Business, etc.
Executive Summary
“Spicy Treat”, a newly launched restaurant business. This restaurant is providing food services
as home delivery as well as in their restaurant. It is dealing in both fast foods and meals to their
customers which are lunch and dinner to the customers. The Restaurant is also providing their
customers with the facility of bookings in marriage and parties. The restaurant provides good
quality foods to their customers in cost effective manner. The goal of this business to earn profit
by satisfying the needs of their customers.
Company Background + Types of Business And Location
“Spicy Treat” is a restaurant which will be established in Ottawa, Canada. This restaurant
will deal in providing food and meals, drinks and wines, lunch and dinner to their customers. As
the restaurant is dealing in a variety of food services to their customers so it will also provide
these services at different times of the day. Also, the restaurant also do have five day a week
working (Bridge and O'Neill, 2012). The target market of this company are the middle class,
upper class and the adults and students of this area.

It will also provide other facilities to their customers such as the home delivery of food
products, one month subscription free, customised food products as per the demand of their
customers. Further, it will give more attention to the regular customers of the company. The
restaurant will also need a license for doing this business. In addition to this, the restaurant is
also moving on to other ways of earning which will done by taking the order of parties and
marriages.
There are also some risks attached with the opening of restaurant as the customers of that
area do not like the taste and quality of food and meals provided to them which can make the
restaurant a heavy loss and may even cause to its shut down. Further, the risks such as change in
the technology, change in trends and behaviours of people can also cause a negative impact on
the working of restaurant. So it will first make the food and with the help of surveys it will check
the quality of food which they are going to provide to their customers (Chan and Park, 2015).
The main aim of this restaurant is to keep the customers of Ottawa happy by providing
them with the best service that they can provide and keep their satisfaction level at the first.
Management Team
Job Descriptions
Restaurant Supervisor:
 Supervising the floor during meal periods to ensure that all standards and steps of
services are met while interacting with the customers.
 Effective communication must be done with the employees both in the verbal and written
form to give them clear direction about what they have to do.
 Doing observation of the work of employees so that continuous evaluation of their
progress can be done and improvements can be made.
 Ensuring that all standards and hotel cash handling procedures are met successfully.
 Ensuring that all steps of services as told during the training session are met properly on
daily basis (DaSilva and Trkman, 2014).
 Doing communication with both the employees and the customers for making the
understanding clear and good relation can be maintained in between them.
Restaurant Manager:

 Ensuring about the security procedures and cash control regarding restaurant's safe or
disbursement of funds.
 Making sure about following of all the policies of the company by all the employees
working in the restaurant.
 Helps in any area of operation as circumstances are dictated.
 Making balance in the restaurant's safe before and at the end of the shift.
 Co-ordinates with all the area of operation including the restaurant, beer garden area.
Assistant Manager:
 Managing the restaurant efficiently and effectively so as to meet the required standards of
production and providing the customers with the best quality of products possible.
 Preparation of end shift records including daily labour, food control and daily sales.
 Protection of the restaurant's assets and prevent the restaurant from the situation that
creates potential risks for them (Driscoll, Comm and Mathaisel, 2013).
 Increasing sales by customer satisfaction and providing them immediate resolution for
their problems.
Financial Plan
Financial Plan can be defined as the process of forecasting the future financial activities
of a company. The Restaurant has also forecasted about its incomes and expenditures for future.
Spicy Treat Restaurant has also forecasted its future financial activities and has break down the
income and expenses of the restaurant as under:
Income:
The following are the sources of income for the Spicy Treat Restaurant which are
described as under:
 Payment received from the customers.
 Payment received from the contracts of marriages and parties taken (Evans, 2015).
Expenditures:
For the particular month the following are the expenses which the company have are
explained as under:
 Uniforms
 Premises
 Rent

 Insurance
 Wines and Drinks
 Furnitures
 Refrigeration
 Computer Systems and Internet Connection
 Mobile Bills
Break Even Analysis
Break Even Analysis is a financial tool which helps in the determining the stage which
the new company or project will be profitable for the company (Färber and et. al., 2012). Spicy
Restaurant has also applied this analysis in the working of its restaurant so as to make the know
about the profitable situation for the restaurant.
Fixed Costs Per Month
Basis/ OTI
Premises Rent C$ 2000
Uniforms/Insurance/Wines and
Drinks/Decoration and Lamps
C$ 1500
Salaries C$ 5000
Marketing Team C$ 500
Licensing C$ 300
Furnitures/ Kitchen Fit out/ Ovens/
Refrigeration/Food Making Equipment
C$ 2500
Computer Systems and Internet Connection C$ 3700
Printer/ Paper/ Scanner/Mobile Bills C$ 600
Total Fixed Costs C$ 16100
Variable Costs
Miscellaneous Expenses C$ 300

Bills of Internet Connection and Mobile C$ 400
Total Variable Costs C$ 700
Total Cost = Fixed Cost + Variable Cost (16100+700) = C$ 16800.
Capital Required
As for the successful accomplishment of all the tasks of the restaurant, it is necessary to
have sufficient amount of capital (Gabler and et. al., 2017). There are various functions which
need to be performed and requires some amount of capital in order to fulfil these tasks.
The restaurant requires capital for making purchase of different assets needed in the
restaurant such as furniture, computer system, raw materials, labours, refrigeration, uniforms of
employees, rent of the premises. These all expenses create the requirement of capital for the
business of Spicy Treat Restaurant. Optimum allocation of capital in all the parts will lead to the
efficiency in working. It is also required to pay salary to employees which is a reason of their
working and motivation so that they can give their contribution towards the success of the
restaurant self dedicatedly.
Finally, it can be said that the restaurant will need an amount of C$ 10000 in order to
compile with all the above mentioned requirements in order to make the business to run
smoothly (Galbraith and et. al., 2013).
At first, the amount will be spent on taking the premises on rent for carrying out the
business and after that some amount will also be invested for the purpose of doing advertising of
the restaurant in order to make the people aware about the products and services offered by the
restaurant. After setting up the business, it will also start maintaining proper records of working
of their employees and will also maintain the day to day activities of the business.
Sources of Fund
It is not possible for a single to acquire this much amount for starting a business. So this
will require to acquire this amount from any other source. The amount can be acquired from a
number of sources such as taking partnership of any other known person and make him to
contribute in the business. Another source of getting the funds invested in the restaurant business

is from the bank. It is also possible to get the loan from the bank for starting the business. For
starting this business, loan from bank has been taken. In starting the following business venture
of Restaurant, the use of two sources of getting the fund are used which is taking loan from the
bank and making the investment from a private businessman by providing him with a share of
20% in the business (Gilmore, 2012).
It is so because the interest rate is also lower than from other sources of getting fund. In
addition to this, there is also another reason for making this as a final decision for getting the
finance. It is that when there are more number of partners in a business the decision making
process gets very complex and time consuming. For every short and big issue it is necessary to
consult from other partners. So in order to avoid all these obsessions the loan has been taken
from the bank. The loan amount which has been taken from the bank is C$ 10000.
Pre launch cash budget
Cash Flow budget
Particulars Jan
Cash inflows
Investment 8000
Insurance 2000
Total inflows 10000
Cash outflows
Fixed : Equipment’s 2000
Variable : Direct material 300
Total outflows 2300
Net cash flow 7700
Opening balance 0
closing balance 7700
Post launch cash budget
Particulars Jan

Cash inflows
Investment 8000
Insurance 1200
Total inflows 9200
Cash outflows
Fixed : Equipment’s 2500
Variable : Direct material 350
Total outflows 2850
Net cash flow 6350
Opening balance 0
closing balance 6350
The following Cash Flow has been prepared for the month of January.
Marketing Plan
Marketing Objectives:
 To provide combo offers to customers for making an increase in the sale of products.
 To provide quality of meals, drinks to the customers at reasonable prices.
 To achieve Prime Cost Ratios lower than 65%.
 To expand the business in other cities of Canada.
Pricing Strategy:
It is also a very important decision which the restaurant has to make while deciding about
the prices of their products to be offered in the market. The Spicy Treat Restaurant will choose
that pricing strategy which will help in capturing the market share for the business such as the
penetration pricing strategy (Halme, Lindeman and Linna, 2012). In accordance with this pricing
strategy, the business will keep their prices down so as to cover more market share and attract the
customers towards the products of the restaurant. Low prices will attract the customers and help
in capturing the market share. In this way choosing this as a pricing strategy is helpful for the