Business Plan of a Restaurant

Running head: BUSINESS PLAN OF A RESTAURANT
Business Plan of a Restaurant
Name of the Student:
Name of the University:
Author Note:

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BUSINESS PLAN OF A RESTAURANT
Table of Contents
a) Introduction to the actual issue:...................................................................................................2
b) Business Mission / Vision:..........................................................................................................2
c) Research Goal and Objectives:....................................................................................................3
d) Evidence of collecting of data:....................................................................................................4
e) Detailed analysis of findings in regards to the environment/culture/competition:......................4
Political Factor –..........................................................................................................................4
Economical Factor –........................................................................................................................5
Technological –...........................................................................................................................9
Environmental –.........................................................................................................................10
Legal..........................................................................................................................................10
f) Graphs/diagrams and tables:......................................................................................................10
g) Justification choosing a specific computerized statistical system:............................................13
h) Main analysis and discussion of the recommended solutions:..................................................13
Training and development of suppliers of raw materials:.........................................................13
Strict supply chain management:...............................................................................................14
Restructuring of inventory management:..................................................................................16
i) Suggested strategies of improving and/or change a current business situation (marketing mix,
SWOT Analysis etc.):....................................................................................................................17
Marketing Mix...........................................................................................................................17

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BUSINESS PLAN OF A RESTAURANT
SWOT analysis..........................................................................................................................19
j) Ethical Consideration in regards to research and recommendations:........................................20
k) Conclusion/Summary/Critical evaluation:................................................................................20
References:....................................................................................................................................22
Appendices:...................................................................................................................................26

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BUSINESS PLAN OF A RESTAURANT
a) Introduction to the actual issue:
The chains of multi cuisine suffer from several issues pertaining to food safety, supply
chain issues, dynamic condition of the labour and mounting market conditions. These factors are
of serious concern to the restaurants have negative impacts on their businesses like lowering of
revenue, demeaning customer satisfaction and devaluation of their market goodwill. This means
that the management of the restaurants have to take steps to counteract these issues. The aim of
the paper would be exploring the issues faced by multinational chains of restaurants to
recommend feasible solutions. The study would take into account the Chipotle Mexican Grill
Inc., which is based the United States of America and is listed on the New York Exchange
(Bloomberg.com, 2019). The restaurant is present in the United Kingdom, Canada and Germany
other than its home country, the US (Chipotle.com, 2019). The report would emphasise on the
issue of food safety the restaurant and its impact on the operations of the restaurant.
b) Business Mission / Vision:
The mission of the Chipotle Mexican Grill Inc. is to offer fast food products which are
made without with additives and preservatives. The official website of the restaurant claims that
the restaurant prepares the fast food items in the ‘classical’ methods which ensures the nutritional
values of the ingredients remain intact. The company also aims to provide food products to
customers at reasonable rates which would allow it to create value for them. This would also
allow the company to earn high revenue (Chipotle.co m, 2019).
The vision of the Chipotle Mexican Grill is to bring about disruptive innovation in the
fast food market and how consumers perceive fast food. The restaurant chain aims to provide
organically fresh fast food products instead of highly cooked and spiced fast food. This would

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BUSINESS PLAN OF A RESTAURANT
enable the firm differentiate itself from its competitors like Dominos. The firm caters organically
prepared fast food items containing natural ingredients (Khan et al., 2016). This would enable
the fast food company to cater to health conscious customers and establish itself as company
offering fast food items which benefit the customers.
c) Research Goal and Objectives:
The goal of the research is to delve into the issues from which the fast food chains are
suffering and are facing long term problems. The objectives of the study would be investigating
deeper into the issue of food safety to uncover the impacts which the issue has on the business
operations of the company.
The first issue which the restaurant chain faces in its home country as well as host
country is issues pertaining to food safety. The poor food safety creates several problems.
Boyland and Whalen (2015) opine that poor quality of food effects the health of the consumers
negatively which results in illness. This results in low customer satisfaction which leads to
customers shifting to other restaurants. Thus, it is evident that food safety is a crucial aspect of
the business of restaurants because poor food safety results in preparing of low quality food
which results in low revenue generation. Wilson et al. (2016) supporting the previous author
opine that poor food safety does not only hit revenue generation but also capital generation
(Bloomberg.com, 2019). Thus, it clear that the goal of the restaurant should be improving food
safety to boost its market performance.
d) Evidence of collecting of data:
The method used to collect the data about the issues which the Chipotle Mexican Grill
faces pertaining of safety of food products is qualitative interview. The interview of Steve Ells,

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the founder of the restaurant chain is the evidence of the use of interview to gain information
about the topic. Steve Ellis, the founder of Chipotle Mexican Grill reveals in an interview how
the restaurant chain was formed (CNBC.com, 2017). The founder of Chipotle in an interview he
took in 2017 from the Denver Post spoke about a salary reduction which he had suffered after
being appointed as the executive chairman (Denverpost.com, 2017) (Figure 5). The information
about the effect of food safety at Chipotle can be obtained from an interview of Brain Niccol, the
new CEO. The interview clearly mentions that Niccol wanted to revive the market position by
dealing with the food safety issue. The graph of stock indices of Chipotle attached with the
interview also showed that the company’s share prices dropped due to food safety issues.
(Bloomberg.com, 2019). The Forbes also reports the fall of share prices of Chipotle due to food
safety issues (Forbes.com, 2017). The interview of apex managers of Chipotle can also be
obtained from Youtube. The method of interview was chosen over questionnaire because unlike
the latter interview allows more extensive discussion about the topic. For example, the topic
under consideration is food safety at the Chipotle. It would be prudent to use interview in this
case because it would allow the interview to gain more knowledge about the topic from the
respondent by asking pertinent questions. An interview unlike a questionnaire follows no
predetermined questioning pattern and can be adapted according to the need of the situation. This
advantage of interview over questionnaire makes it more appropriate to choose the former over
the latter. The analysis of the findings from the interviews show that food safety issue is the
main issue which is affecting Chipotle. The negative effect of the food safety issue on the
international restaurant is evident from the fact it has led to fall in the share price of the
restaurant (Bloomberg.com, 2019). This means that the issue of food safety has hit the very
capital base of the restaurant.