Restaurant Business Plan

This assignment presents a detailed business plan for a hypothetical restaurant. It includes aspects like target market analysis, mission and vision statements, a SWOT analysis, marketing strategies, operational plans, financial projections, and risk management. The plan aims to demonstrate a comprehensive understanding of business planning principles within the food service industry.

BUSINESS PLAN
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EXECUTIVE SUMMARY
Company overview
The name of the company that would be incorporated in the present business plan is “La
Bucuresti. The date of the incorporation would be 21st January 2017. For registration license, will
be obtained. The location of the restaurant would be Kent, UK. The main products of the
restaurant include several kinds of Romanian meals and coffee, tea that are required by the
customers during morning as well as evening time. The restaurant is offering home delivery
services to the customers within economical cost. This would assist the customers in taking the
experience of the food without visiting the outlet.
Market
The target market of the firm would be business customers who can organize informal
meetings and youngsters who show keen interest in intake of Romanian snacks. It has been
examined that restaurant industry forms the part of broader hospitality sector within the national
economy. More than three quarters of the UK restaurateurs expects the overall number of
restaurant to expand over the next 12 months. There is greater need for the product as there is
greater number of Romanian migrants in UK. Along with this through Romanian Cuisine the UK
people can gain unique experience that would assist them in enhancing their experience. 15%
market share is intended to attain in the year 1 to year 3
Unique selling proposition
The Unique selling point of the business is organic food from Nutra ingredients limited.
This implies that the quality of raw material that is being used in food would not be unhygienic
and unhealthy. The environmental aspect would be considered (Garayoa et al., 2011). Further the
firm would sell unique Romanian food items to the target market.
OWNERSHIP AND MANAGEMENT
The owner of the business is irina dumitru. To operate La Bucuresti in an efficient and effective
manner (20) employees shall be employed, which shall consist of 6 kitchen staff, 2 delivery
personnel, 6 waiters, 2 counter clerks and 4 cleaning staffs.
Skills Gap Analysis
 Good teamwork
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 Cooking skills
 Communication skills
 Open to learning new ideas and ways of cooking
 Attention towards excellent hygiene standards
 Marketing skills
 Business management skills
Skills required Skills available Needed? Yes/ No Action
Expertise in
Romanian cooking
for kitchen staff
Known to this style
of cuisine. The skills
are already existing.
But still there is
certain improvement
needed.
Yes Special Training from
experts
Excellent
Communication skills
in waiters as well as
counter clerks
There is scope of
improvement that can
help in enhancing
communications
skills
Yes Internal training and
monitoring. This
training will be done
within a week time
after recruitment.
Inter-personal Skills
among the front-line
personals
Presence of some
level of these skills
Yes Internal Training and
experience
Management skills
among the counter
clerks
There is presence of
such skills
Yes This can be learned by
the means of
experience and
attending training
which is given by
experts.
Procurement of raw Such skills is existing Yes It can be learned by
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material by kitchen
staff
in them but scope of
improvement can be
seen that can help in
enhancing the overall
performance
the means of gaining
knowledge regarding
organic food
PRODUCTS
La Bucuresti shall be only engaged in providing Romanian meals in the form of some
specific products : Aubergine salad, Rustic salad, Grilled mincemeat, Mincemeat and rice
wrapped in cabbage leaves. The restaurant provides beverages in the form of Espresso Coffee,
Latte, Mocha Coffee, Green Tea, Tea and Lemon Tea. The restaurant will offer home delivery
services to the customers. Further diverse recipes would be utilized in development of the
products to offer customers with lot of varieties for selection. In relation to customer orientation.
Much more customer focused strategies would be considered to meet their requirement level that
can satisfy them.
One of the factors which shall render competitive advantage to the product shall be that
the whole project is completely environmental friendly, to the extent that the products used for
preparation of the meals shall also be completely organic and healthy in nature.
Name of the Product Pricing in Year 1 (in GBP)
Pan Fried cheddar cheese
200g
9.30
Pan Fried courgetti 150g 4.50
Aubergine salad
200g
5
Vegetarian salad 6.60
Main salad 8.20
Rustic salad 8.40
Tuna salad 7.8
4

Grilled mincemeat£6.00
200g
6
Mincemeat and rice wrapped in cabbage leaves
300g
7.80
Traditional pork stew with polenta
Pork loin, sausages, bacon, ewe cheese, egg,
pickles / 700g
12.20
Cottage cheese with sour cream and polenta
300g
7
Fried lamb served with polenta, ewe cheese
and pickles 700g
13.40
Cheese tarts with cream and blueberry
confiture
300g
4.80
Pancakes with cream and blueberry
confiture£3.40
200g
3.40
Cheesecake with wild berries 200g 4.50
Espresso Coffee 1.4
Latte 1.4
Mocha Coffee 1.3
Green Tea 1.2
Tea 1.1
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Lemon Tea 1.1
INDUSTRY ANALYSIS
The restaurant industry is highly fragmented as well as competitive. Every firm within
this possess lower capital cost and low margins that is creating higher intensity of competition.
The restaurant industry has seen greater boom and there is greater increase in the number of staff
who is working in this sector. To survive in the market diverse strategies in relation to product
orientation as well as customer orientation will be carried out in relation to meeting the growing
market. On basis of product total quality management approaches would be considered which
makes sure that each pack of the product is meeting the higher level of quality which is being
desired by the customers.
Customers
In the present era restaurant sector is growing to a significant level. It is regarded as the
market that never dies. This is regarded as the demanding industry wherein the customers
possess willingness to make purchase of the products as they are part of human lives. Kent’s
growing population. There are currently estimated to be 1524700 people living within the Kent
County Council area. (as of 2015) (Facts and Figures about Kent. 2016). The entire market size
is 0.5 percent of Kent's population. 76235. In the modern era, there is existence of greater
number of customers who desires for healthy and organic food which can be provided in sound
atmosphere. The target market includes the people who prefers to in take organic food. This is
specifically in case of elderly people.
Competitors
The competition that is being faced by La Bucuresti is vast (Doganova and Eyquem-
Renault, 2009). This is comprised of every restaurant that has been established in Kent. The main
competitor is Trattoria Romana who is operating in similar line of business. Moreover, there is
presence of some more restaurant such as KFC, Yama’s, Casa Da Claudia which would give
tough competition to the business. In addition to this the road side sellers because of absence of
funds are unable to conduct profitable strategies of marketing. The company would intend to
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leverage locational advantage to create higher profits. The market share of KFC is higher in
comparison with all other. Thus this would give tough competition to new business.
Areas of
comparison
La Bucuresti KFC Casa Da Claudia
Strength Weakness Strength Weakness Strength Weakness
Range of
products
High
product
range
Taste of
food is not
as per UK
High range
but lower
than La
Bucuresti
Does not
focus on
Romanian
cuisine
Romanian
taste
Lower range
Quality of
products
Organic raw
material
Difficulty in
getting
supplier
offers
quality food
Does not
focus on
organic food
Higher
quality
Lacks skills
in
presenting
the food
Price Economical
prices
Can gain
loss at initial
stage
High prices Cannot be
afforded by
all social
classes
Moderate
price range
Lower
popularity
STRATEGIC POSITIONING
To determine the exact position in the market Ansoff Matrix has been utilized which shall
assist La Bucuresti to undertake an in-depth study of the way the project shall be developed and
placed in the market.
Market Penetration
La Bucuresti to penetrate in the market shall develop promotional strategies based on
environment friendly logos and in addition, shall offer promotional offers in the form of combo
packs.
Product development
The products available at The Green World shall be very specific, but shall be supreme in
quality and taste (Powell, Jacob and Chapman, 2011). The point of uniqueness which every
customer shall realize would be that each of the product shall be prepared from organic raw
materials and be served in good portion size.
Market development
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Once the brand has achieved success in the current market, it shall expand in a new
market by adopting more innovations and diversifying the available services (Anderson and
Khedair,2009).
Diversification
Adoption of this strategy could be a highly beneficial option for La Bucuresti, if it
diversifies in related sectors such as opening up a full meal restaurant.
REGULATORY AND OTHER REQUIREMENTS
Commencing a restaurant in the nation would require the owners of the La Bucuresti to
obtain all relevant licenses in relation to the usage of the property, operations of the business and
so on from relevant authorities (Boldrin and Levine, 2008). In addition, the management shall be
required to adhere to provide a safe working environment to the employees as well as prove a
hygienic services and food to the customers. Further the procedure of process online payment is
also applied
FINANCALS
Start up capital
The initial expenditure of the restaurant would be £100,000. This will be comprised of
setting up the place of the firm, acquisition of equipment as well as working capital.
Item Amount (£)
Office building 30,000
Furniture and fitting 24,750
Working capital 45,250
------------
100,000
Profit and loss
Year 1 Year 2 Year 3
Revenue 505,600 557,419 670,350
Cost of sales 151,192 158,752 169,335
-------------- -------------- --------------
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354,408 398,667 501,015
Administrative expenses 84,930 88,899 168,578
Selling expenses 58,200 72,360 163,934
-------------- -------------- --------------
Operating profit 211,278 237,408 168,503
Corporate tax 52,820 59,352 42,126
-------------- -------------- --------------
Net income 158,459 178,056 126,378
Statement of financial position
Year 1 Year 2 Year 3
Non-current assets
Property, plant and equipment 49,200 77,400
666,10
0
------------- ------------- -------------
Current assets
Cash and cash equivalents 489,636 931,528
659,53
5
------------- ------------- -------------
Total assets 538,836 1,008,928 1,325,635
========= ========= =========
Equity
Stated capital 107,750 107,750
107,75
0
Retained earnings 131,504 265,046
359,82
9
------------- ------------- -------------
239,254 372,796
467,57
9
------------- ------------- -------------
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Non-current assets
Deferred tax 182,716 405,176
578,64
5
------------- ------------- -------------
Current assets
Current tax liability 52,820 59,352
42,12
6
------------- ------------- -------------
Total equity and liabilities 474,790 837,324 1,088,350
Statement of cash flow
Items Pre-operating year Year 1 Year 2 Year 3
Cash inflow
Owner-s contribution 100000
Share issuances 10000
Revenue 505,600 557,419 670,350
Total cash inflows 100000 515600 557419 670350
Cash outflow
Legislation requirement 10000
Initial research 8000
Property, plant and equipment 40000
Furniture 20000
Cost of sale 151,192 158,752 169,335
Administrative expenses 79380 72099 57278
Selling expenses 58,200 72,360 163,934
Corporate taxes 52,820 59,352 42,126
Dividends paid 39615 44514 31594
Property, plant and equipments 45000 700000
Total cash outflow 78000 381207 452077 1164267
Net cash flows 22000 134393 105342 -493917
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Opening cash balance 22000 134393 105342
Closing cash balance 22000 156393 239735 -388575
MILESTONE
The business plan is targeting to gain market share of at least 15 percent till the end of the
year 2017. Along with this it has aim to increase the customer experience with respect to services
of La Bucuresti, for building brand loyalty.
PERFORMANCE EVALUATION AND CONTROL
The success of the business would be judged by the means of customer satisfaction.
Further the technique of TQM would be used for controlling the quality of the products. This has
greater importance in reducing the number of defects to a significant level. Monitoring and
control has significance in enhancing the performance for future course of time by the business.
VISION AND MISSION
The mission of the restaurant is to delight the customers every time by the means of their
engagement in offering greater experience.
The vision is to become the first choice of customers.
Gantt chart
Activity/Years 1 2 3
6
Months
6
Months
6
Months
6
Months
6
Months
6
Months
Generating business idea
Reading and understanding the scope of
the plan
Finalization of the objectives
11

Setting mission and vision
Collection of secondary data
Analyzing the secondary data
Development of research approach
Analysis of the target market
Forecasting budget
Implementation of the plan
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REFERECNES
Books and Journals
Anderson, M. and Khedair, J., 2009. Successful Business Plans: Get Brilliant Results Fast.
Crimson Publishing, Limited.
Boldrin, M. and Levine, D. K., 2008. Against intellectual monopoly. Cambridge: Cambridge
University Press.
Doganova, L. and Eyquem-Renault, M., 2009. What do business models do?: Innovation devices
in technology entrepreneurship. Research Policy. 38(10). pp.1559-1570.
Garayoa, R. and et al., 2011. Food safety and the contract catering companies: food handlers,
facilities and HACCP evaluation. Food Control. 22(12). pp. 2006-2012.
Powell, D. A., Jacob, C. J. and Chapman, B. J., 2011. Enhancing food safety culture to reduce
rates of foodborne illness. Food Control. 22(6). pp. 817-822.
Online
Facts and Figures about Kent. 2016. [Online]. Available through:
<http://www.kent.gov.uk/about-the-council/information-and-data/Facts-and-figures-about-
Kent#>. [Accessed on 21st November 2016].
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APPENDICES
PRODUCTS
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