Business Plan for The Piano String Restaurant

This business plan covers the details of starting up a restaurant named The Piano String, including macro environment analysis, market and industry analysis, competitors analysis, marketing and pricing strategy, operations plan, SWOT analysis, and financial requirements.

BUSINESS PLAN

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
The business details.....................................................................................................................3
Macro Environment analysis- PESTEL model...........................................................................3
Market and industry analysis- Porter's five forces......................................................................4
Competitors analysis...................................................................................................................5
Strategy for marketing and pricing.............................................................................................5
Operations plan...........................................................................................................................6
SWOT analysis'...........................................................................................................................7
Financial requirement..................................................................................................................7
Elevator pitch..............................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A newly start up business requires the essential resources which are used to ensure the
growth and survival of the business (McKeever, 2016). For starting a business, it is necessary
that it covers the market analysis and come up with such strategies which shall help in
accomplishing the goals and objectives of the business. This report shall have the business idea
of starting up a restaurant which is named as The Piano String. This report shall cover the details
of business, macro environment analysis, market and industry analysis by Porter's five forces,
competitors analysis, marketing and pricing strategy, operational plan, SWOT analysis and
financial requirement.
MAIN BODY
The business details
The business idea purposed for this report is starting up a restaurant which is named as
'The Piano String'. It is a unique restaurant which shall have multiple cuisine and a live musical
band. This combination shall help in growth and survival of the business. The restaurant shall be
opened on the busiest street of London which is Oxford street where large customer attraction
shall be available for the business, the unique speciality of this business idea is its combination
of multiple cuisine which shall cover the preference of almost all customers and the live musical
band shall add a cherry to the cake and fulfil the demand of the target market.
Macro Environment analysis- PESTEL model.
The PESTEL model is a tool which is sued by the businesses to analyse the macro factors
which may affect the working of the business (Nurmi and Niemelä, 2018). It includes 6 factors
which are discussed below in context to The Piano String which is discussed below- Political- It is concerned with the political environment and its impact on the business.
The Piano String must ensure that it is established in a environment which is politically
stable otherwise its working may be affected by the instability of the government. Economic- It involves the economic stability of the country where the business is
established. In context to The Piano String, the business may get affected by the inflation
or the fluctuation in the foreign exchange rate. This may affect the profitability of the
business. For instance the inflation rate as of now in UK is 0.6%, down from 0.9% last

month. So decreased inflation rate is good for the business as the purchasing power of
people have increased. Social- It involves needs and preference of the customers. In context to The Piano
String, the business may get affected if it does not bring the offering which is not
according to the preference and needs of the potential target market. Technological- It is concerned with the adaptation of the technology in the functioning of
the business. The Piano String must adopt such technological equipment which can
attract customers and also make their services and product efficient and productive. Environmental- It involves the concern of the environment. In context to The Piano
String, the business must work in such a way that its affairs does not affect or harm the
environment.
 Legal- It is concerned with the legal requirements which is to be complied with. The
Piano String must ensure that it comply with all the laws like food and safety so that it
can prevent any legal consequences.
Market and industry analysis- Porter's five forces
Porter's five forces is a strategy which helps the business in understanding the
competitiveness of the business environment (Vlados, 2019). It involves 5 forces which are
discussed below in context to The Piano String- Competitive Rivalry- It is concerned with the strength and number of competitors. The
power of this force is moderate as the business The Piano String is a unique
combination of multiple cuisine and live musical band which the people shall under
under the same roof. This will give a competitive edge to the business. Supplier's power- It involves the easiness of the suppliers to increase the price. The
power of this force is high as the restaurant The Piano String is a new start up which are
very few in number so that business has to adjust initially according to the conditions of
the suppliers. Buyer's power- It is concerned with the power of buyers to make their price down. The
power of this force is low as The Piano String is a restaurant which provides the offering
according to the preference of the customers as it has multiple cuisine like Italian,
Mexican, Continental, Indian and many other.

 Threat of substitution- It involves the likelihood of consumers to find the alternative of
the business (Büyüközkan, Mukul and Kongar, 2020). The power of this force is
moderate as the restaurant The Piano String is a unique restaurant so this combination
cannot be found by the customers under one roof.
 Threat of new entry- It is concerned with the position of the business which may get
affected due to new entrant. In context to The Piano String the power of this force is low
as it needs resources and funds to start up a restaurant which is not a cup of tea for
everyone.
Competitors analysis
There are many competitors of The Piano String which are present in the market which
may take an edge over the restaurant. The competitors of The Piano String are-
Clove club which is a dining house which provides precise and elegant food to its
customers in the relaxed and an informal setting. The restaurant offers British taste food in a
modern way. It is inspired from the British culture and provides effective service to the
customer. The main strength of the restaurant is its flexible service which attracts the customers
as it has informal and relaxed setting whereas its weakness lies in its menu which is only
concerned with British taste and does not take care of other preference. The restaurant have
generated $6.2 million of revenue in its current year as in 3rd quarter.
Gymkhana is a restaurant which has its speciality in Indian food. It offers food with
Indian spices in order to attract customers from around the culture. This restaurant is split into
two floors which have different feels and look which is its strength as it has a unique
combination of two different looks and its weakness lies in its variety which is only Indian food.
The restaurant have generated the sale of $35 million in the past year which more than the past
year sales. (Wellner and Lakotta, 2020).
Strategy for marketing and pricing
The targeting strategy involves the following-
Segmentation -There are 4 types of market segmentation, out of which the Piano string
can adopt one and understand its target market. The 4 market segments are- Demographic- The audience under this segmentation is split based on people based
differences like gender, colour, race, age, etc.

 Behavioural- It differentiate the audience on the basis of consumer behaviour regarding
the offering. The behaviour includes shopping habit, usage rate, action taken on the
website,etc. Geographic- It makes the differentiation on the basis of the customer's location like
country, state or zip code.
 Psycho-graphic- It is same as demographic but draws a distinction on the basis of
characteristics like mental and emotional (Lewis, 2017).
In context to The Piano String, its market segment shall be on the basis of demographic.
Targeting- The target market of the restaurant shall be the young aged and middle aged
people who are of the age of 18- 45 years.
Positioning- In context to the Piano String, the restaurant shall make use of the social
media and website so that it can position itself into the mind of the customers.
Pricing strategy
The Piano String shall adopt any of the pricing strategy which is discussed below- Penetration- Here with this strategy, the company enters the market with the low price
and after drawing the attention, increase their price gradually. Psychological- This involves targeting the human psychological in order to boost sales. Skimming- Under this, the companies charge the higher price for the new product and
then decrease the price afterwards.
 Cost plus- It focus on cost of producing the product and service which is mainly used by
retailing sector (Kanakulya and Jinzhao, 2017).
The Piano String shall adopt the pricing strategy of penetration so that it can grab the
attention of large audience and attract them to purchase their offering.
Operations plan
The Piano String restaurant shall offer the multi cuisine to its target market. The
restaurant is situated on the Oxford street which is the busiest location of the London so that
large audience can be attracted to avail the service of the restaurant. The Piano String shall have
the advanced technology equipments which brings the delicious taste to the dishes. The oven,
refrigerator and other equipments are used to prepare the amazing tasted dishes. The ambience of
the restaurant is funky and casual so that youth can come and enjoy the time while availing the

services. The restaurant must comply with the Food regulations so that it maintains hygiene and
quality.
SWOT analysis'
In context to The Piano String, the SWOT is discussed below-
Strength
 The restaurant offer multiple cuisine
which is its biggest strength as it tries
to cover preference of all customers. The combination of live musical band
and cuisine is also another strength.
Weakness
 The penetration pricing strategy may
affect the profitability of the restaurant
at initial stages.
 The restaurant shall have funky
ambience which may not be suited by
the old aged people.
Opportunity
 The restaurant must bring live
streaming of sports match so that more
customers can be attracted (Abalkhail,
2019). The restaurant can bring sun down
parties on weekend so that it can attract
more customers.
Threat
 The competition in this industry is the
biggest threat for The Piano String.
 The dynamic environment is another
threat which may affect the working of
the restaurant.
Financial requirement
The Piano String offers multiple cuisine to the customers with live musical band. Its
financial requirement is discussed below-
 Furniture = £ 1500
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Equipment’s = £ 2000.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.

 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per unit.
 Variable cost = £3 per unit.
After analysing the market trends and others factors it has been forecasted that the impact
of factors on the sales figure of The Piano String is that the restaurant can successfully generate
a sales equivalent to 200 units in a month. On the basis of this forecasting, a cost statement is
discussed below-
 Particulars  Calculation  Amount
 Sales  £50*200  £10000
 Less: variable cost  £3*200  £600
 Contribution  Sales-variable cost  £9400
 Less: fixed cost   £1500
 Less: estimated cost of
sales
 £10*200  £2000
 Net profit   £5900
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= from the above calculation, it can be stated that, company is earning
profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
Elevator pitch
The elevator pitch for this restaurant is that it must plan to bring sun down party on
weekend so that youths can be attracted. The timing of this sun down party can be 4PM to 7PM.
This will help in enhancing the sales and profitability of the restaurant.

CONCLUSION
It is concluded from this report that a business idea needs to be proposed according to the
market trend so that the offering of the business can be as per the demand. The business idea
proposed is the opining of The piano String which is a combination of multi cuisine and live
musical band. The PESTEL model is used to analyse the macro environment and SWOT is used
to analyse the micro environment and for competitive analysis, Porters five forces is used.
Further it is concluded that marketing strategy involves segmentation, targeting and positioning
model and pricing strategy which this restaurant has chosen is penetration.

REFERENCES
Books and Journals
Abalkhail, T.S., 2019. Entry and Expansion Strategies for Burberry in Oman by Applying
Porter's Five Forces Model. Indian Journal of Marketing. 49(1). pp.25-35.
Büyüközkan, G., Mukul, E. and Kongar, E., 2020. Health tourism strategy selection via SWOT
analysis and integrated hesitant fuzzy linguistic AHP-MABAC approach. Socio-
Economic Planning Sciences, p.100929.
Kanakulya, E.K. and Jinzhao, W.A.N.G., 2017. The Status of Africa’s Construction Industry and
its Porter’s Five Forces Analysis. International Business and Management. 14(2).
pp.50-53.
Lewis, R., 2017. Porter's Five Forces of competitive advantage.
McKeever, M., 2016. How to write a business plan. Nolo..
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer,
Cham.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Wellner, S. and Lakotta, J., 2020. Porter's Five Forces in the German railway industry. Journal
of Rail Transport Planning & Management, p.100181.