Break-Even Analysis and Financial Projections for a Healthy Food Restaurant

The provided content appears to be a combination of academic articles and online resources related to marketing, entrepreneurship, and business strategy. It includes excerpts from books by well-known authors such as Philip Kotler and Eric Ries, as well as journal articles on topics like social marketing campaigns, decision making in online auctions, and the launch decision for new businesses. Additionally, it includes financial statements and break-even analysis for a hypothetical healthy food restaurant, including sales forecasts, cash flow statements, and a detailed break-even chart.

“Natural Diet Mart”
A business plan for “Starting a new food restaurant in UK
for selling healthy foods for children and young adults to
avoid future health issues”

TABLE OF CONTENTS
Executive Summary.......................................................................................................................1
Rationale of business idea...............................................................................................................2
Introduction and background...........................................................................................................2
Aims and objectives of Business plan.............................................................................................3
Business concept..............................................................................................................................3
Business Model................................................................................................................................4
Description of Business...................................................................................................................4
Interesting Captivating Name..........................................................................................................5
Mission............................................................................................................................................5
Vision...............................................................................................................................................6
Feasibility Analysis.........................................................................................................................6
Market research-business/social need/market failure......................................................................6
Human resource...............................................................................................................................7
CV attached in appendix..............................................................................................................7
Governance, legal and management structure.................................................................................7
Operational model...........................................................................................................................7
Marketing.........................................................................................................................................8
Finance- Sales forecast, cash flow, budget......................................................................................8
Attached in appendix...................................................................................................................8
Fund raising strategies (Bullet points).............................................................................................8
Exit/sustainable strategy..................................................................................................................8
Conclusion.......................................................................................................................................9
references.......................................................................................................................................10
Appendix: 1 Financial statements..................................................................................................13

TABLE OF FIGURES
Figure 1: Break even chart.............................................................................................................16
LIST OF TABLES
Table 1: Sales forecast for healthy food restaurant.......................................................................13
Table 2: Cash flow statement........................................................................................................13
Table 3: Profit and loss account.....................................................................................................14
Table 4: Break even analysis.........................................................................................................15

EXECUTIVE SUMMARY
There are number of health issues which affect the physical and mental health of Children
and young adults of UK. So, it increases the requirements of healthy restaurant in UK. The
current business plan will focus on establishing a new restaurant for providing healthy and
nutritious food to target customers. Mission of this business will increase profitability, sales
revue and resolve health issue of children and young adults of UK. Suggested name of this
restaurant is Natural diet Mart (NDM). Business plan has forecast that this business will require
£250000 and for raising financial capital NDM will use owner’s capital and bank loan. Along
with this, for marketing of products and services NDM will use social media and online
marketing for promoting healthy food. In addition, business plan has proposed that organization
needs to use online recruitment and selection process for hiring new staff members for this
restaurant. Therefore, all these sub plans will play important role in attaining aim and objectives
in effective manner.
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RATIONALE OF BUSINESS IDEA
Many aspects of today’s society leads increment in mental and physical health issues in
children and young adults in UK. With the growth and development of children and young adults
these problems become challenge for living their lives. There are number of reasons behind these
issues in which one of the important causes if inappropriate and unhealthy diet habits. Due to this
reason these problems cannot resolve in appropriate manner. Along with this, at present there are
number of restaurant in each and every street of UK but they offer unhealthy and unnatural food
to their customers (Henley, Raffin and Caemmerer, 2011). It leads increment in mental and
physical health issues. Along with this, restaurant food such as junk and fast food are major
reason behind obesity among children and young people. So, every restaurant needs to pay
attention towards the health issues. So, providing healthy food products and services and
resolving different physical and mental health of children and young people of UK is the major
reason behind starting a new healthy restaurant. For getting success in this business idea new
healthy restaurant will focus on healthy and nutritious diet.
INTRODUCTION AND BACKGROUND
Eating a healthy and balanced diet is required for each and every one but in case of
children and young adults is it necessary to consume all-important nutrients for growth and
development. At present physical and mental health issues are increasing day by day and
inappropriate eating habits are major reason behind these problems. So, the current business plan
focuses on establishing a new restaurant for providing healthy and nutritious diet to children and
young adults of UK. Regarding this, it will include marketing, operations and financial plans for
starting new restaurant in UK (Van Auken, 2015). It will also promote healthy eating strategies
by the food products and services of new restaurant.
As per the statistical facts and figures mental health issues affect about 1 in 10 children
and young adults in UK. These problem includes depression, anxiety and mental disorder and are
often a direct responses to what is eating in daily routine and happing in their daily lives. Along
with this, overweight, obesity and type 2 diabetes are also considered as major issues for these
segments. So, each and everyone needs to focus on food products as per their own health issues.
Generally, children and young adults like to eat food of restaurants which do not pay attention
towards the nutritious of food. They just focus on taste and appearance of their services. It harm
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health conditions of customers in negative manner (De Mel, McKenzie and Woodruff, 2014). So,
all these problems and issue have increased the needs and requirements of a restaurant which can
provide healthy food products to its customers.
AIMS AND OBJECTIVES OF BUSINESS PLAN
Aim:
“Starting a new food restaurant in UK for selling healthy foods for children and young
adults to avoid future health issues”.
Objectives:
 To establish a new restaurant with healthy food for reducing health issues of children and
young adults in UK.
 To critically analyze the needs and requirements of children and young adults of UK with
respect to the healthy food.
 To keep the cost of food products and services at less than 40% of sales revenue.
 To increasing gross profitability of restaurant by 60% in coming 2 years.
 To promote the healthy eating strategy by establishing new and healthy food restaurant in
UK.
 To obtain profitable return on initial investment in future 2-5 years.
BUSINESS CONCEPT
Starting a new restaurant in UK is not an easy task for entrepreneur and regarding this,
business needs to focus on different aspects which are described as under:
 Menu and product: Healthy and nutritious food products and services will take place in
menu list of new restaurant. Along with this, business will focus on quick and serve
selection concepts for serving services to customers. Reduction of wastage and use of
ingredients is variety of dishes are also major concern of this business. Profitability and
health improvement are major objective of new healthy restaurant (Baldwin, Wilberforce
and Kapur, 2011).
 Prospective customers: As per the above discussion children and young adults of UK
will be considered as potential customers because they require healthy food products for
their growth and development.
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 Aesthetic: Artistic view of restaurants are very appealing for customers of UK. So, new
restaurant will use the green and natural concept for decorating the whole restaurant. Its
logo will also focus on green and natural food products and services. So, it will
communicate the message of healthy food to customers (Huang and et.al, 2011).
 Costs: Generally healthy and natural foods and costly as compare to fast and junk food
because of the inclusion of lots of expenses such as natural ingredients, cleaning,
inspection, product delivery, marketing and different techniques for maintaining
nutritious of food products, etc. Labor cost and production cost will also be considered by
new healthy restaurant at the time of deciding cost of healthy food and dishes. But new
restaurant will charge reasonable price for every product which can cover the expenses
rather than generating high profitability (Armstrong and et.al, 2014).
BUSINESS MODEL
Restaurant generally focuses on the profitability concepts and model by which they can
make money more and more. But, new restaurant wants to reduce the health issues of children
and young adults of UK, so, it focuses on customized model of business rather than profitability
concepts. As per this model new restaurant aligns with more personalized dishes as per the health
issues and needs of every customers (Angell and et.al, 2012). Along with this, seating
arrangement in will also be based on health conditions of children and young adults. They can
chose required seating areas as per their comfort. This model will be worked in UK because
children and young generation of UK are facing number of health issues and which will raise the
demand of healthy food. So, it will be significant with respect to health and social care as well as
profitability.
DESCRIPTION OF BUSINESS
New healthy restaurant will focus on offering healthy diet for children and young adults
of UK. Major purpose of this business is promoting healthy eating habits and resolving different
health issues of young youth of the nation. Majorly NDM will include protein, carbohydrates,
iron, vitamins, fiber, fats and calcium in every dish because appropriate quantities of all these
minerals are required for physical and mental health of children and young youth for resolving
their health issues (Alexander, Skyrms and Zabell, 2012). Menu list of NDM will be as follows:
Breakfast Lunch Dinner
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 Baked beans on whole
meal toast.
 Greek or natural
yogurt drizzled with
honey.
 Apple juice, yogurt
and a little ice.
 Tortilla breakfast
wraps.
 Boiled egg and
soldiers.
 Whole meal muffin
with grilled bacon.
 Top a Whole meal
toasted bagel with
apricot jam and sliced
bananas.
 Whole meal pitta.
 Whole meal bagel with
sliced hard boiled
eggs.
 Vegetable soup.
 Top crumpets with
tomato puree.
 Italian pasta salad by
adding tomato.
 Whole meal wrap with
low-fat soft cheese.
 Mediterranean Bento
box
 Roasted veg and
couscous salad.
 Hearty sausage and
bean stew.
 Grilled salmon with
spring onion mash and
broccoli.
 Child friendly pasta by
cooking dried pasta
shapes and stirring
through cooked sweet
potato chunks.
 Cottage pie thatched
with sweet potato
mash.
 Healthy turkey
escalope.
 Fish sticks.
INTERESTING CAPTIVATING NAME
 “Name of new healthy restaurant: Natural Diet Mart (NDM)”.
 Punch line: Our Food Your health.
MISSION
Our guest:
Natural Diet Mart wants to offer healthy food products and services to children and
young adults of UK for resolving different health issues. It is committed in satisfying needs and
requirements of their guest as per by its unbearable dedication to every aspect of restaurant food
and services. The mission of this restaurant is providing nutritious and healthy food to guests and
resolving their physical and mental health issues. Satisfaction of children and young adults of
UK is one of the major objective of NDM.
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Our employees:
Employee development, growth and welfare are very important aspect of NDM for
getting success in future. As per the mission of NDM employee will be a part of success of this
healthy restaurant in UK.
Our distinctiveness:
Healthy and nutritious food is one of the major distinctiveness of NDM from rest of the
restaurants of UK. It will target as pacific segment such as children and Young adults and offer
healthy food services to them for resolving their health issues.
VISION
Children and young adults of UK are affected by different mental health issues and
obesity problems. For resolving these issues they need to focus on healthy diet. So, vision of
NDM is resolving these issues by providing healthy food diet to children and young youth of
UK.
FEASIBILITY ANALYSIS
Feasibility analysis means assessment of the practicality of a proposed project of healthy
restaurant in UK. As per the market condition of UK it is feasible to start a restaurant which can
offer health food to children and young adults. Because demand of healthy food is increasing day
by day. Along with this, children and young adults use healthy food on regular basis so, it will be
profitable for NDM also because it will provide appropriate return on initial investment. In
addition, there are no legal complications because it will help in improving health of children and
young adults of UK (Ries, 2011). Preparing healthy and nutritious food products and services
will be very easy so, starting a healthy restaurant will be feasible business plan. Therefore it will
attain all objective sin effective manner.
MARKET RESEARCH-BUSINESS/SOCIAL NEED/MARKET FAILURE
Market research of UK has reflected that there are number of restaurant which are trying
to offer healthy food products to customers abut they does not focus on specific segment. So,
they are not able to satisfy needs and requirements of customers. As per the social needs and
demand children and young adults focus on healthy food. So, NDM will target this specific
segment. In contrast, there will be many reasons behind the market failure such as inappropriate
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analysis of needs and requirements of customers (Food variety and a healthy diet, 2016). Along
with this, inappropriate planning and marketing techniques will also be considered as major
reason behind failure of NDM. So, this restaurant will use appropriate strategies to resolving all
these issues in effective manner and getting success in future.
HUMAN RESOURCE
NDM will hire 5 human resources with strong skill and professional experience for
providing appropriate services and healthy food to customers. These staff members will include
manager, cool, head cook, waiter and housekeeping. NDM will arrange online recruitment and
selection plan which will reduce time and cost of the new and healthy restaurant (Tomaro, 2015).
CV attached in appendix
GOVERNANCE, LEGAL AND MANAGEMENT STRUCTURE
As per the corporate governance NDM needs to follow different corporate social
responsibilities towards different stakeholders. Along with this, NDM will also focus on different
laws and regulation regarding health consciousness, tax, employment and other trade restriction.
In addition, there are no specific management structure because each staff members will make
direct communication with other staff members (Lilien, 2013). But after some time and with the
expansion of the business NDM will follow hierarchical structure of the organization.
OPERATIONAL MODEL
For starting new and healthy restaurant in UK business needs to take license from Food
Standard Agency UK. In addition, NDM will follow go green concept for operation, production
and Infrastructure of the restaurant. In addit6ion, appropriate training and development program
will improve skills and knowledge of employee which will help in daily operation and
production process (Kotler, 2008). In addition, for effective operation and production
management NDM will focus on appropriate management of inventory and supply chain as well
as organization will also try to reduce the defects and wastage of raw materials and final food
products.
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MARKETING
Advertising and promotion of NDM are required for increasing awareness of customers
about the products and services of the new restaurant. There are number of tools and techniques
but it is a startup so, organization needs to focus on cost effective marketing strategy. So, online
marketing and social media marketing are best channels for marketing and promoting new
healthy restaurant in UK. NDM can develop its own website which will provide all information
to customers about the menu list and price of food products and services. Along with this, it will
also increase the opportunity to sell its products and services on online order for specific
locations at the time of starting (Baldwin, Wilberforce and Kapur, 2011). Moreover, in social
media marketing NDM needs to develop its own page on Twitter, Facebook, Instagram and other
social networking sites. It will help in targeting all children and young adults of UK at low cost.
Regular updates of Social media help in attracting customers. It will raise the number of
customers, sales revenue and profitability of NDM.
FINANCE- SALES FORECAST, CASH FLOW, BUDGET
Attached in appendix
FUND RAISING STRATEGIES (BULLET POINTS)
Natural Diet Mart will require £250000 for starting a new restaurant for healthy food
products and services. Regarding this, it can raise its funds by using following strategies:
 Owner’s capital will be £100000.
 Remaining, £150000 will be taken by NDM musing bank loan @ 7% interest rate for five
years.
EXIT/SUSTAINABLE STRATEGY
NDM will focus on CSR policies of the restaurant as well as also focus on health issue of
children and young adults. Along with this, for sustainable development of the restaurant NDM
will also focus on economic, social and environmental factors that can improve the overall
performance of the organization (Huang and et.al, 2011). Therefore, these strategy will be
appropriate for sustainable development of NDM.
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CONCLUSION
Above discussed business plan will be effective for attaining aim an objective of NDM
restaurant by which it can help in resolving different health issues of children and young adults
of UK. Along with this, it has also helped in getting success and appropriate profitability in
coming future which will raise the market and expansion opportunities for the organization.
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REFERENCES
Books and journals
Alexander, J. M., Skyrms, B. and Zabell, S. L. 2012. Inventing new signals.Dynamic Games and
Applications. 2(1). pp. 129-145.
Angell, S. Y. and et.al, 2012. Change in Trans fatty acid content of fast-food purchases
associated with New York City's restaurant regulation: A pre–post study. Annals of
internal medicine. 157(2). pp. 81-86.
Armstrong, G. and et.al, 2014. Principles of Marketing.Pearson Australia.
Baldwin, C., Wilberforce, N. and Kapur, A., 2011. Restaurant and food service life cycle
assessment and development of a sustainability standard. The International Journal of
Life Cycle Assessment. 16(1). pp. 40-49.
De Mel, S., McKenzie, D. and Woodruff, C. 2014. Business training and female enterprise start-
up, growth, and dynamics: Experimental evidence from Sri Lanka. Journal of
Development Economics. 106. 199-210.
Henley, N. Raffin, S. and Caemmerer, B., 2011. The application of marketing principles to a
social marketing campaign. Marketing Intelligence & Planning. 29(7). pp.697-706.
Huang, C. Y. and et.al, 2011. Decision making in online auctions.Management Decision. 49(5).
pp.784 – 800.
Kotler, P., 2008.Principles of Marketing. Pearson Education India.
Lilien, L.G, 2013. Principles of Marketing Engineering, 2nd Edition. Decision Pro.
Ries, E., 2011. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to
Create Radically Successful Businesses. Crown Business
Van Auken, H. E., 2015. The business launch decision: An empirical investigation of reasons for
not starting a new business. Journal of Small Business Strategy. 10(2). pp. 43-55.
Online
Food variety and a healthy diet. 2016. [Online]. Available Through :<
https://www.betterhealth.vic.gov.au/health/healthyliving/food-variety-and-a-healthy-
diet>. [Accessed on: 10th April 2016].
Tomaro, N., 2015. Proven Business Models to Consider for Your Startup. UK restaurant
industry. [Online]. Available Through :< http://www.huffingtonpost.com/entry/9-proven-
business-models-_b_7949932.html?section=india>. [Accessed on: 10th April 2016].
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APPENDIX: 1 FINANCIAL STATEMENTS
Sales forecast:
Table 1: Sales forecast for healthy food restaurant
Sales Forecast
Particular Year 1 Year 2 Year 3
Average Customers
per day 60 90 120
Average spend 20 30 40
Sales 60*20* 30 days * 12
months
80*25*30 days*12
months
112*25*30 days*12
months
Sales £ 432000 972000 1728000
Cash flow statement:
Table 2: Cash flow statement
Cash Flow Statement
Cash
flow
stateme
nt in
Pound
£
Year
0 Jan Feb Mar Apr Ma
y Jun Jul Aug Sep Oct Nov Dec Year
1
Year
2
Openin
g
Balanc
e
0.00
430
00.0
0
340
25.0
0
260
90.0
0
192
99.0
0
137
66.4
0
961
8.04
6992
.34
6041.
58
6933.
24
9851.
56
14999
.22
22599
.14
2572
8.55
Cash
Inflow
Cash
Sales 0 200
00
220
00
242
00
266
20
292
82
322
10.2
3543
1.22
3897
4.342
42871
.7762
47158
.9538
2
51874
.8492
57062
.3341
2
4276
85.6
8
8100
00.00
Owner's
capital
1000
00 0 0 0 0 0 0 0 0 0 0 0 0
1000
00.0
0
0
Bank
loan
1500
00 0 0 0 0 0 0 0 0 0 0 0 0
1500
00.0
0
0
Total
Cash
Inflow
2500
00.0
0
200
00.0
0
220
00.0
0
242
00.0
0
266
20.0
0
292
82.0
0
322
10.2
0
3543
1.22
3897
4.34
42871
.78
47158
.95
51874
.85
57062
.33
6776
85.6
8
8100
00.00
Cash
Outflo
w
0.00
Fixed
Assets
1000
00 0 0 0 0 0 0 0 0 0 0 0 0
1000
00.0
0
1200
00
Long
terms
assets
includin
g
technic
al
equipm
ents
9000
0 0 0 0 0 0 0 0 0 0 0 0 0 9000
0.00
9000
0
Market
researc
5000 0 0 0 0 0 0 0 0 0 0 0 0 5000
.00
0
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h of
restaura
nt
industry
of UK
Trainin
g fee 2000 0 0 0 0 0 0 0 0 0 0 0 0 2000
.00 0
Cost of
sales
800
0
880
0
968
0
106
48
117
12.8
128
84.0
8
1417
2.48
8
1558
9.736
8
17148
.7104
8
18863
.5815
3
20749
.9396
8
22824
.9336
5
1710
74.2
7
3240
00
Service
Fee 0 600 660 726 798.
6
878.
46
966.
306
1062
.936
6
1169.
2302
6
1286.
15328
6
1414.
76861
5
1556.
24547
6
1711.
87002
4
1283
0.57
9911.
62
Marketi
ng/
Promoti
on/
Adverti
sement
5000 300
0
300
0
300
0
300
0
300
0
300
0 3000 3000 3000 3000 3000 3000 4100
0.00
4738
0.00
Rent 0 900
0
900
0
900
0
900
0
900
0
900
0 9000 9000 9000 9000 9000 9000
1080
00.0
0
1101
60.00
Interest
on bank
loan
0 875 875 875 875 875 875 875 875 875 875 875 875 1050
0.00
1050
0.00
Insuran
ce fee 0 500 500 500 500 500 500 500 500 500 500 500 500 6000
.00 6000
Tax 0 0 0 0 0 0 0 0 0 0 0 0 7168 7168
.00
4110
5.44
Salary 0 350
0
350
0
350
0
350
0
350
0
350
0 3500 3500 3500 3500 3500 3500 4200
0.00
4494
0.00
Miscell
aneous
or other
Expens
es
5000 100
0
110
0
121
0
133
1
146
4.1
161
0.51
1771
.56
1948.
72
2143.
59
2357.
95
2593.
74
2853.
12
2638
4.28
3358
1.18
Repay
ment of
loan
0 250
0
250
0
250
0
250
0
250
0
250
0 2500 2500 2500 2500 2500 2500 3000
0.00
3000
0
Total
Cash
Outflo
w
2070
00
289
75
299
35
309
91.0
0
321
52.6
0
334
30.3
6
348
35.9
0
3638
1.99
3808
2.68
39953
.45
42011
.30
44274
.93
53932
.92
6519
57.1
2
8675
78.23
9
Net
cash
flow
4300
0
-
897
5.00
-
793
5
-
679
1.00
-
553
2.60
-
414
8.36
-
262
5.70
-
950.
77
891.6
6
2918.
32
5147.
66
7599.
92
3129.
41
2572
8.55
1677
578.2
4
Closing
balance
4300
0.00
340
25.0
0
260
90.0
0
192
99.0
0
137
66.4
0
961
8.04
699
2.34
6041
.58
6933.
24
9851.
56
14999
.22
22599
.14
25728
.55
2572
8.55
1703
306.7
9
Profit and loss account:
Table 3: Profit and loss account
Profit and Loss account
Profit and loss account (£) Year 1 Year 2
Revenue
Sales from Products and services sold 427685.68 810000.00
Less: COGS (40%) 171074.27 324000.00
Gross Profit 256611.41 486000.00
Operating Expenses
Market Research 5000.00 0.00
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Marketing/ Promotion/ Advertisement 41000.00 47380.00
Rent 108000.00 110160.00
Insurance 6000.00 12000.00
Salary 42000.00 44940.00
Employee training fee 2000.00 0.00
Service Fee 12830.57 9911.62
Miscellaneous Expenses 26384.28 33581.18
Depreciation 12000.00 12000.00
Total Operating Expenses 255214.85 269972.80
Operating Profit (Gross profit- operating expenses) 1396.55 216027.20
Less: Interest 10500.00 10500.00
PBT -9103.45 205527.20
Less: Tax -1820.69 41105.44
Net Profit -7282.76 164421.76
Break even analysis:
Table 4: Break even analysis
Break Even Analysis
Particular Amount (£)
Year 1
Amount (£)
Year 2
Average Selling Price per meal 20 30
Variable Cost 10 10
Contribution 10 20
BEP in sales
Total Fixed cost 100000 120000
Contribution 10 20
BEP = Fixed cost / Contribution 10000.00 6000
Break Even Point
Average Customer Per Day 60 90
Number of Days = BEP in meals / customer per day 166.67 66.67
BEP in weeks 41.66 weeks 16.66 weeks
BEP in months
3.47 months
means in
month of
April
1.38 months
means in
month of
February
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Figure 1: Break even chart
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