Business Plan for Drinks and Doughnuts

This business plan discusses the details, market analysis, competitor analysis, marketing and pricing strategies, operations plan, SWOT analysis, and financial requirements for a new venture named Drinks and Doughnuts in the food and beverage sector in the UK.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The business details.....................................................................................................................3
Macro- environmental overview.................................................................................................3
Market & industry analysis.........................................................................................................4
Competitor analysis.....................................................................................................................5
Marketing & Pricing strategies...................................................................................................6
Operations plan...........................................................................................................................6
Swot analysis...............................................................................................................................7
Financial requirements................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Undertaking the competitive market area, each and every business need to operate in the
suitable business environment undertaking the innovative business ideas. Moreover, undertaking
the innovative and unique idea in the market is useful in terms of capturing the prominent
attention of customers (McKenzie and Sansone, 2019). In regard of this, it is beneficial in order
to enhance the competitive image in market area and effective analysis of market is done as it is
essential due to offering and enhancing significant brand image of company by providing
qualitative services to its customers according to the requirements and wants. The present report
is based on the suitable business plan which is a new venture named Drinks and Doughnuts who
tends to operate in food and beverages sector in UK with the objective of enhancing their
business performance.
MAIN BODY
The business details
Drinks and Doughnuts is the new business venture which is a food and beverage
company situated in London, UK and also tends to serve food products in the dynamic market
area. For this, it is the small company who tends to develop business plan in order to achieve
competitive benefits. For this, they tends to offer wide variety of food products in market
according to the preferences of customers and menu of product in which organisation tends to
add few additional items like Strawberry Doughnuts, Chocolate Doughnuts and so on in terms of
enhancing the positive and enhanced brand image. For this, company tends to capture suitable
attention towards the innovative food products. Therefore, organisation tends to enhance the
profitability level in terms of sustaining in market for the long time.
Macro- environmental overview
Drinks and Doughnuts is the suitable restaurant who tends to provide effective quality of
food products and services to their potential customers in terms of analysing the basic needs and
requirements towards the Mixed Fruit Doughnuts. Therefore, in terms of offering suitable
services in UK, it is required for the company to organise PEST analysis regarding the impact of
macro environmental factors over the business which are as follows: Political: In UK, they tends to follow the constitutional monarchy running for the
suitable control for the effective structure. It is analysed that the UK is a decent country

who has prosperous environment with wide range of opportunities in the country and
outside the world (Jukova and et. al., 2019). Therefore, it tends to represent the suitable
opportunity for the Drinks and Doughnuts in terms of establishing their business in the
market of UK. Environmental: By considering the economic factor of UK tends to depict the effective
economic role and for this, UK tends to have strong and effective GDP, diverse economic
factors and by this they tends to face prominent challenges as well (Matović, 2020).
Therefore, in terms of Drinks and Doughnuts they tends to offer wide range of
contribution for the economic development in terms of increasing overall opportunity by
the several employment practices in UK. For this, it represent the huge population that
tends to make things more viable for the small market conditions which is beneficial for
them. Social: It effectively represent the needs and preferences of customers by considering the
requirements towards the products of business. In terms of Drinks and Doughnuts they
tend to offer Mixed Fruit Doughnuts at the wide range of quantity considering the quality
as well which is beneficial to sustain in market prominently (Götz, 2020).
 Technological: In terms of Drinks and Doughnuts they tends to execute suitable digital
transactions for the secured payment mode considering the government of UK regarding
the promotion of suitable practices.
Market & industry analysis
It is essential for new business ventures in order to effectively analyse the overall
industry as by this company tends to operate effectively for the operational activities at the
market area in terms of achieving competitive advantage from their competitors. In regard of
this, Drinks and Doughnuts tends to use Porter's five forces as the effective analysis tool which is
mentioned as: Industry Rivalry: Competitors in the market area tends to drive down for the suitable
prices of the commodities and also tends to eliminate the profitability factor of company.
In terms of Drinks and Doughnuts they tends to operate their business for the competitive
sector (Mariani, Morelli and Bartoloni, 2019). For this, company tends to enhance their
overall performance and need to develop sustainable differentiation for their products in
terms of competing with their competitors.

 Supplier power: Considering the market area of food and beverages, they tends to
purchase raw materials from various suppliers and it become the suitable reason for why
suppliers are more powerful and also tends to effectively use bargaining power in order
extract suitable process from the company. For this, it is essential for Drinks and
Doughnuts to develop effective supply chain with various suppliers in terms of having
effective profitability that can be easily enhanced in market. Buyer power: Undertaking the market area, the buyers tends to considering the suitable
demand for the buying the best regarding the suitable offering for paying effective prices
as much as possible (Tanev, Rasmussen and Hansen, 2020). It also tends to create
pressure for Drinks and Doughnuts regarding the power of Buyers which is relatively
high. In terms of enhancing their customer base, organisation tends to effectively
undertake new products for their customers at the low prices. It effectively tends to
contribute for the suitable contribution for the strong customer base in the market area. Threat of substitution: In terms of food and beverage sector, new products and services
tends to meet similar requirements of customers in prominent manner considering the
profitability and its impact. Therefore, it is essential for company to become service
oriented instead of product. Besides this, company also need to understand prominent
requirements of customers regarding the suitable quality of products. It also tends to
contribute for effective enhancement of profitability level in market.
 Threat of new entrants: Within the food and beverage sector, several new organisations
tends to operate their businesses undertaking the objectives of creating effective
profitability (Sheffield, 2019). Moreover, it tends to become the suitable reason for the
high power of new entry and also directly impact the functioning of Drinks and
Doughnuts. For this, organisation also tends to serve for the prominent quality of food
products at the affordable cost to enhance the profitability.
Competitor analysis
Within the food and beverage market, there are several competitors are present including
Starbucks, Subway and so on who tends to give tough competition in market area. Moreover, it
tends to put negative impact of the profitability of company. For this, the target customers of
company also tends to effectively prefer to eat fast food and the suitable target of customers are
kids and youth in order to provide their services for new product including Mixed Fruit

doughnuts. Besides this, company also undertake competitors strategies before developing their
plan and implementing prominent business activities (Svetlova and et. al., 2020). Considering the
needs and wants of customers it is identified that prominent strategies are useful in order to
accomplish effective satisfaction. It also tends to directly contribute for the improvement in the
profitability of market at the same time and also leads to capture market share from competitors.
Along with this, organisation also undertake effective innovation and uniqueness for the product
line which is beneficial in order to impact their customers to purchase suitable commodities that
leads to enhance the competitive brand and image of company in market.
Marketing & Pricing strategies
In terms of enhancing the suitable brand image is undertaken as the essential task that
tends to be supported for having prominent development of brand image considering the large
number of customers to attract towards the products and services. Company also focus on the
requirements of customers to identify the market situation and tends to target their customers
who like and prefer eating fast food according to the requirements (King and et. al., 2020).
Besides this, there are several competitors of company who also tends to have strong presence in
market area and because of Drinks and Doughnuts they tends to use competitive pricing strategy
by which they effectively consider suitable offerings of products in market place. They also leads
to contribute for the enhancement of profit and also compete for the famous brand image,
effective advertising strategy and so on which are followed by organisation in order to promote
their overall performance. Along with this, effective promotion, personal selling and direct
marketing tends to impact customers for having suitable purchasing and also enhance their
profitability.
Operations plan
The prominent operational plan of restaurant is described according to the choices of
customers by which they tends to replenish prominent dishes in terms of considering the
requirements and demands. For this, the objective of Drinks and Doughnuts is to effectively offer
space to their customers in terms of considering the prominent space in which customers can eat
food effectively. Therefore, the prominent operational plan of company undertake various
services and customers also tends to order prominent variety of commodities considering the
menu of the staff members (HAN and Kang, 2020). Besides this, Drinks and Doughnuts also
tends to has their own conventional equipments in they make Mixed Fruit Doughnuts

undertaking the suitable taste. Along with this, with the prominent help of equipments and
machines, company leads to make fresh Doughnuts without use of preservation. For this,
customer tends to find restaurant near the busy area in terms of connecting various people with
company in order to enjoy their new food product. For this, customers also order food through
online which is convenient for company itself. Besides this, the prominent location for the
suitable area is connected with customers in terms of considering the physical stores and also
order their food product.
Swot analysis
It is essential for Drinks and Doughnuts to analyse the overall performance with the help
of SWOT analysis as it tends to offer effective help to identify various factors and for this, the
suitable analysis for company is discussed as considering the abilities for prominent operations
of business: Strengths: Drinks and Doughnuts tends to serve effective quality of products to their
customers considering the demand of customers as it depict the prominent competitive
pricing strategy of products which is provided at the affordable cost (Jukova and et. al.,
2019). Company also undertake the attractive commodities undertaking the USP in terms
of differentiating from competitors. Weaknesses: Drinks and Doughnuts arrive in new market and because of this they tends
to have less customers who are familiar to their services. For this, it become the major
weakness of company and the prominent competitors of Drinks and Doughnuts also tends
to have strong customer base because of the wide variety of product line. Opportunities: Offering new product in market tends to provide suitable opportunity for
Drinks and Doughnuts in order to invite large number of customers (Matović, 2020). For
this, hygienic and positive environment tends to impact individuals in order to have
effective visit to their place considering the effective consumption of services.
 Threats: It represent the suitable competition in market which become the biggest threat
for Drinks and Doughnuts and prominent changes in Political environment tends to
impact the whole activities of restaurant.
Financial requirements
Drinks and Doughnuts deals in doughnuts which are extra loaded with chocolates and for
this, the prominent financial statement has been mentioned as:

Initial cost of business: It prominently depict the cost which is included for starting a
business and its operations. For this, the stating cost is classified as below:
Cost structure:
Particulars 2020 2021 2022
Variable costs
Salaries to staff 10000 55000 52000
Advertisement 5000 28000 25830
Rent of building 5000 28000 21800
Fixed costs
Machines 20000 60000 58000
Cost of material 30000 80000 72000
Total cost 70000 251000 229630
Revenue Stream:
Particulars 2020 2021 2022
Selling of Doughnuts 35000 150000 152000
Online bookings 25000 95000 96000
Advances from clients 20000 51000 52000
Further developments 20000 50000 50000
Total revenues 100000 346000 350000
Break even analysis: It has been estimated that cost of one designer cost will be around 5
pounds and in first year 20000 clothes will be designed. So, the calculation of BEP is as follows:
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 4
= 12500 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 80%
= 62500
Second year

BEP in units
= 140000 / 7.83
= 17880 units
BEP in Pound
=140000 / 67.92%
= 206125
Third year
BEP in units
= 130000 / 4.64
= 28017 units
BEP in Pound
=130000 / 71.53%%
= 181742
Calculation of contribution:
Formula = Sales – variable cost / total units
First year:
= 100000 – 20000 / 20000
= 4
Second year:
= 346000 - 111000 / 30000
= 7.83
Third year
= 350000 - 99630 / 54000
= 4.64
Calculation of PV ratio:
Contribution / sales *100
First year:
= (100000-20000) / 100000 * 100
= 80000 / 100000 * 100
= 80%
Second year

= (346000 – 111000) / 346000 * 100
= 235000 / 346000 * 100
= 67.92%
Third year
= (350000 – 99630) / 350000 * 100
= 250370 / 350000 * 100
= 71.53%
CONCLUSION
By undertaking the above discussion, it is identified that development of company is
essential for having clear mission and vision before starting a new business. It also tends to offer
help in order to acquire attention of customers for their new product. Moreover, there are several
factors that can be identified by company for the external environmental analysis that tends to
impact company. For this, market and industry analysis is useful in order to identify the suitable
area for having prominent success in order to achieve things in effective manner. For this,
company tends to generate itself in large market area to have effective share in order sustain
them for longer period of time.

REFERENCES
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