Comprehensive Business Plan for Spicy Treat Restaurant in Canada

This report presents a detailed business plan for the "Spicy Treat" restaurant, focusing on its launch in Ottawa, Canada. The plan encompasses various crucial aspects including the Business Canvas Model, cost analysis (fixed and variable), service rates, and daily operational routines. It also includes a comprehensive financial plan with income and expenditure projections, break-even analysis, and identifies sources of funding. The marketing plan outlines objectives, pricing strategies, and location analysis. Furthermore, the report addresses operational strategies, risk analysis, and SWOT analysis. The report concludes with recommendations to ensure the restaurant's success, providing a thorough overview of its potential for profitability and market share acquisition. The restaurant aims to provide high-quality food and excellent service to its customers and also plans to take contracts for parties and marriages to increase its revenue.

Business Plan

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Table of Contents
INTRODUCTION...........................................................................................................................3
Business Canvas Model...................................................................................................................3
Fixed and Variable Costs in Spicy Restaurant.................................................................................4
Service Rates Provided by Spicy Restaurant ..................................................................................5
Daily Routine Work of Spicy Restaurant........................................................................................5
Operational Plan of Spicy Restaurant ( Day to Day).......................................................................5
Report Abstract................................................................................................................................6
Executive Summary.........................................................................................................................6
Company Background + Types of Business And Location.............................................................6
Management Team...........................................................................................................................7
Job Descriptions..........................................................................................................................7
Financial Plan...................................................................................................................................8
Break Even Analysis........................................................................................................................9
Capital Required............................................................................................................................10
Sources of Fund.............................................................................................................................10
Marketing Plan...............................................................................................................................12
Marketing Objectives:...............................................................................................................12
Pricing Strategy:........................................................................................................................12
Marketing Communications:.....................................................................................................12
Location Analysis..........................................................................................................................13
Manufacturing Plan........................................................................................................................13
Operational Plan ............................................................................................................................14
Risk Analysis and SWOT Analysis...............................................................................................15
CONCLUSION..............................................................................................................................17
Recommendations..........................................................................................................................17
Terms and Glossary.......................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business Plan can be defined as a document which describes about new launches of
products or services to be made by a company (Business Plan, 2019). It includes various tasks to
be included in the new launching of the business such staffing, planning, organising, leadership,
controlling, financing, feasibility, etc. all are taken into consideration in the launch of a new
business. The new restaurant is launched with the name “Spicy Treat”. The assignment will
focus on the launching of a new restaurant business in Canada. Further the feasibility of the new
business project will also known with the help of doing Business Canvas model, Cash Flow, Job
Descriptions, Financial Plan of the new business, marketing plan which will focus on marketing
objectives, the pricing strategy which it will use for fixing the price of their products, Location
Analysis will also be done (Ullah and Lai, 2013). In addition to this, the location analysis will
also be done, risk factor related to the new business proposal will also be done by doing SWOT
Analysis on the new business and the manufacturing plan will also be prepared in this
assignment. The following document will also outline the overall business plan proposed
whether it will earn sufficient to make the restaurant survive in the market and capture sufficient
market share.
Business Canvas Model
The following Model was propounded by Alexander Osterwalder. The following
provides the knowledge about various aspects which business has to look upon while opening
any new business venture. and it is divided into nine segments (Alexander, 2012). The Model is
applied to the Spicy Restaurant which will provide it with overhead and improvisation in the
project of new business launch:
Key partners
-Food Suppliers
-Government
-Wine Suppliers
-Interior Designers
-Kitchen Rental
Key
Activities
-Good
Customer
Service
-Fast and
Value Proposition
-Oil free food.
-Providing high Quality
goods at lower prices
-Minimize cost and
maximize profit.
Customer
Relationship
-By registering
the likes and
dislikes of regular
customers and
Customer Segments
- Medium Class
People
-High Class People
- Students and Adults

-Food Delivery Firms Efficient
Service
-Excellent
Food Quality
-Qualified
Employees
- Customer Satisfaction
- Time and Cost Saving
providing them
according to their
demand.
-Taking Customer
Reviews
Distribution Channels
-Web page
-Hoardings
-Bill Boards
-Emailing
-Direct Contact
Key resources
-Human capital
-Food Providers
-Employees
-Utensils
-Food Making Equipment
-Raw Materials
Cost Structure
-Marketing Expenses
-Salaries to Employees
-Office rental expenses
-Operating Expenses
-Basic Services
-Miscellaneous Expenses
Revenues
-Will earn money by
providing food and wine
to the customers.
-By taking contracts of
parties and marriages.
-Number of visitors of
website
Fixed and Variable Costs in Spicy Restaurant
In opening a new business, it has to occur some costs (Anderson, 2015). Costs can be
defined as amount which his paid for completing the purchase or exchange process in between

two or more persons. The are different types of costs but a business have only two types of costs
which are fixed and variable costs. Fixed costs are those costs which are which remain
unchanged and are not affected by the change in the production. It includes the rent of building,
depreciation on machinery, etc. On the other hand Variable Costs are those costs which vary
with the output and also changes as there comes a change in the production. These costs totally
depends upon the production (Baliga and Rodrigues, 2015). It includes costs such as wages,
salaries, mobile bills, miscellaneous expenses, etc. are included in the variable costs.
Service Rates Provided by Spicy Restaurant
Spicy Restaurant will provide their customers with a number of services such as lunch,
dinner, weekend dinners. The description of these services and their prices are discussed as
under:
Description Price per Guest No. of Guests Total
Lunch Per Day C$9.00 200 C$1800
Dinner Per
Day
C$17.00 60 C$1020
Dinner
Weekend
C$17.00 100 C$1700
Total Sales Per
Day
C$2820
Total Sales Per Month 20 Days (Working Days) = 20 * C$2820 = C$ 56400
Total sales Per Month 8 Days (Weekends) = 8 * C$1700 = C$13600
Total Sales Per Month (Including Both Working Days as well as Weekends) = C$70000
Daily Routine Work of Spicy Restaurant
For properly maintaining and completing the work on time, the schedule for the day has
been prepared of Spicy Restaurant (Bell, Bryman and Harley, 2018). The following are the
details provided for the daily work routine and time at which different tasks of the restaurant will
be carried out:

Operational Plan of Spicy Restaurant ( Day to Day)
The Spicy Restaurant will remain operate only for five days in a week and the description
of the timing is provided as under:
Days Time
Monday 11:00 A.M.-09:30P.M.
Tuesday 11:00 A.M.-09:30P.M.
Wednesday 11:00 A.M.-09:30P.M.
Thursday 11:00 A.M.-09:30P.M.
Friday 11:00 A.M.-09:30P.M.
Report Abstract
The following report is on opening a new business venture. It is about opening a new
restaurant in Ottawa, Canada. For this business plan has been prepared which covers various
aspects which affects the business such as SWOT Analysis, Business Canvas Model, Break Even
Analysis, Sources of Funds, Operational Plan of the Business, etc.
Executive Summary
“Spicy Treat”, a newly launched restaurant business. This restaurant is providing food services
as home delivery as well as in their restaurant. It is dealing in both fast foods and meals to their
customers which are lunch and dinner to the customers. The Restaurant is also providing their
customers with the facility of bookings in marriage and parties. The restaurant provides good
quality foods to their customers in cost effective manner. The goal of this business to earn profit
by satisfying the needs of their customers.
Company Background + Types of Business And Location
“Spicy Treat” is a restaurant which will be established in Ottawa, Canada. This restaurant
will deal in providing food and meals, drinks and wines, lunch and dinner to their customers. As
the restaurant is dealing in a variety of food services to their customers so it will also provide
these services at different times of the day. Also, the restaurant also do have five day a week
working (Bridge and O'Neill, 2012). The target market of this company are the middle class,
upper class and the adults and students of this area.

It will also provide other facilities to their customers such as the home delivery of food
products, one month subscription free, customised food products as per the demand of their
customers. Further, it will give more attention to the regular customers of the company. The
restaurant will also need a license for doing this business. In addition to this, the restaurant is
also moving on to other ways of earning which will done by taking the order of parties and
marriages.
There are also some risks attached with the opening of restaurant as the customers of that
area do not like the taste and quality of food and meals provided to them which can make the
restaurant a heavy loss and may even cause to its shut down. Further, the risks such as change in
the technology, change in trends and behaviours of people can also cause a negative impact on
the working of restaurant. So it will first make the food and with the help of surveys it will check
the quality of food which they are going to provide to their customers (Chan and Park, 2015).
The main aim of this restaurant is to keep the customers of Ottawa happy by providing
them with the best service that they can provide and keep their satisfaction level at the first.
Management Team
Job Descriptions
Restaurant Supervisor:
 Supervising the floor during meal periods to ensure that all standards and steps of
services are met while interacting with the customers.
 Effective communication must be done with the employees both in the verbal and written
form to give them clear direction about what they have to do.
 Doing observation of the work of employees so that continuous evaluation of their
progress can be done and improvements can be made.
 Ensuring that all standards and hotel cash handling procedures are met successfully.
 Ensuring that all steps of services as told during the training session are met properly on
daily basis (DaSilva and Trkman, 2014).
 Doing communication with both the employees and the customers for making the
understanding clear and good relation can be maintained in between them.
Restaurant Manager:

 Ensuring about the security procedures and cash control regarding restaurant's safe or
disbursement of funds.
 Making sure about following of all the policies of the company by all the employees
working in the restaurant.
 Helps in any area of operation as circumstances are dictated.
 Making balance in the restaurant's safe before and at the end of the shift.
 Co-ordinates with all the area of operation including the restaurant, beer garden area.
Assistant Manager:
 Managing the restaurant efficiently and effectively so as to meet the required standards of
production and providing the customers with the best quality of products possible.
 Preparation of end shift records including daily labour, food control and daily sales.
 Protection of the restaurant's assets and prevent the restaurant from the situation that
creates potential risks for them (Driscoll, Comm and Mathaisel, 2013).
 Increasing sales by customer satisfaction and providing them immediate resolution for
their problems.
Financial Plan
Financial Plan can be defined as the process of forecasting the future financial activities
of a company. The Restaurant has also forecasted about its incomes and expenditures for future.
Spicy Treat Restaurant has also forecasted its future financial activities and has break down the
income and expenses of the restaurant as under:
Income:
The following are the sources of income for the Spicy Treat Restaurant which are
described as under:
 Payment received from the customers.
 Payment received from the contracts of marriages and parties taken (Evans, 2015).
Expenditures:
For the particular month the following are the expenses which the company have are
explained as under:
 Uniforms
 Premises
 Rent

 Insurance
 Wines and Drinks
 Furnitures
 Refrigeration
 Computer Systems and Internet Connection
 Mobile Bills
Break Even Analysis
Break Even Analysis is a financial tool which helps in the determining the stage which
the new company or project will be profitable for the company (Färber and et. al., 2012). Spicy
Restaurant has also applied this analysis in the working of its restaurant so as to make the know
about the profitable situation for the restaurant.
Fixed Costs Per Month
Basis/ OTI
Premises Rent C$ 2000
Uniforms/Insurance/Wines and
Drinks/Decoration and Lamps
C$ 1500
Salaries C$ 5000
Marketing Team C$ 500
Licensing C$ 300
Furnitures/ Kitchen Fit out/ Ovens/
Refrigeration/Food Making Equipment
C$ 2500
Computer Systems and Internet Connection C$ 3700
Printer/ Paper/ Scanner/Mobile Bills C$ 600
Total Fixed Costs C$ 16100
Variable Costs
Miscellaneous Expenses C$ 300

Bills of Internet Connection and Mobile C$ 400
Total Variable Costs C$ 700
Total Cost = Fixed Cost + Variable Cost (16100+700) = C$ 16800.
Capital Required
As for the successful accomplishment of all the tasks of the restaurant, it is necessary to
have sufficient amount of capital (Gabler and et. al., 2017). There are various functions which
need to be performed and requires some amount of capital in order to fulfil these tasks.
The restaurant requires capital for making purchase of different assets needed in the
restaurant such as furniture, computer system, raw materials, labours, refrigeration, uniforms of
employees, rent of the premises. These all expenses create the requirement of capital for the
business of Spicy Treat Restaurant. Optimum allocation of capital in all the parts will lead to the
efficiency in working. It is also required to pay salary to employees which is a reason of their
working and motivation so that they can give their contribution towards the success of the
restaurant self dedicatedly.
Finally, it can be said that the restaurant will need an amount of C$ 10000 in order to
compile with all the above mentioned requirements in order to make the business to run
smoothly (Galbraith and et. al., 2013).
At first, the amount will be spent on taking the premises on rent for carrying out the
business and after that some amount will also be invested for the purpose of doing advertising of
the restaurant in order to make the people aware about the products and services offered by the
restaurant. After setting up the business, it will also start maintaining proper records of working
of their employees and will also maintain the day to day activities of the business.
Sources of Fund
It is not possible for a single to acquire this much amount for starting a business. So this
will require to acquire this amount from any other source. The amount can be acquired from a
number of sources such as taking partnership of any other known person and make him to
contribute in the business. Another source of getting the funds invested in the restaurant business

is from the bank. It is also possible to get the loan from the bank for starting the business. For
starting this business, loan from bank has been taken. In starting the following business venture
of Restaurant, the use of two sources of getting the fund are used which is taking loan from the
bank and making the investment from a private businessman by providing him with a share of
20% in the business (Gilmore, 2012).
It is so because the interest rate is also lower than from other sources of getting fund. In
addition to this, there is also another reason for making this as a final decision for getting the
finance. It is that when there are more number of partners in a business the decision making
process gets very complex and time consuming. For every short and big issue it is necessary to
consult from other partners. So in order to avoid all these obsessions the loan has been taken
from the bank. The loan amount which has been taken from the bank is C$ 10000.
Pre launch cash budget
Cash Flow budget
Particulars Jan
Cash inflows
Investment 8000
Insurance 2000
Total inflows 10000
Cash outflows
Fixed : Equipment’s 2000
Variable : Direct material 300
Total outflows 2300
Net cash flow 7700
Opening balance 0
closing balance 7700
Post launch cash budget
Particulars Jan

Cash inflows
Investment 8000
Insurance 1200
Total inflows 9200
Cash outflows
Fixed : Equipment’s 2500
Variable : Direct material 350
Total outflows 2850
Net cash flow 6350
Opening balance 0
closing balance 6350
The following Cash Flow has been prepared for the month of January.
Marketing Plan
Marketing Objectives:
 To provide combo offers to customers for making an increase in the sale of products.
 To provide quality of meals, drinks to the customers at reasonable prices.
 To achieve Prime Cost Ratios lower than 65%.
 To expand the business in other cities of Canada.
Pricing Strategy:
It is also a very important decision which the restaurant has to make while deciding about
the prices of their products to be offered in the market. The Spicy Treat Restaurant will choose
that pricing strategy which will help in capturing the market share for the business such as the
penetration pricing strategy (Halme, Lindeman and Linna, 2012). In accordance with this pricing
strategy, the business will keep their prices down so as to cover more market share and attract the
customers towards the products of the restaurant. Low prices will attract the customers and help
in capturing the market share. In this way choosing this as a pricing strategy is helpful for the

business. However it can effect badly to the financial condition of the business but in the long
run it will only have positive effect on the overall condition of the business.
Marketing Communications:
It can be defined as the communication in between the company and its prospective
market and customers. In other words it is the way by which the company interact with their
customers and provides them with the knowledge of their products and services. The Spicy
Restaurant will also make contact to their customers. The restaurant will use the method of direct
mailing in bulk to the potential customers or it can be done with the help of postcard in value
pack type mailing.
Further the restaurant will also organise an event in which all the products and services
provided by the restaurant will explained to the customers and their related doubts will also be
made clear. The use of online presence will also be done such as staying alert with the current
trends going on in the market. It includes Facebook page, twitter site, uploading videos on
YouTube, etc. all are included and carried over for making the people aware about the services
of the restaurant (Healey and et. al., 2015). The restaurant will also introduce an app with the
help of which customers can make their order online while sitting at their homes or any other
place, but this will be done later.
Location Analysis
Location Analysis can be defined as the technique of finding the best appropriate place to
settle the business. It is also an analysis of a number of aspects such as the trends of that area,
taste and preferences of the people of that area, choices of customers, culture and demographics,
etc. are the factors that help in the determination of the best place in order to establish the
restaurant.
The location of the restaurant has been chosen Ottawa in Canada and t has been chosen
by doing a lot of analysis on different factors. As suggested earlier, the selection of the location
for the establishment of the business is a very crucial decision in the business planning cycle that
have to be decided with the utmost care and research (Hoy, 2012). For deciding about this
location, many important information has been gathered so that the best can be selected. The use
of statistical data is done, description provided by the local authority is also taken into
consideration. Further the location traffic counts, traffic generators, residential and business

population and proximity has also been taken into consideration for choosing Ottawa as a place
of location.
Manufacturing Plan
It is an outline which provides an estimation about the amount of production to be carried
out for fulfilling the needs and requirements of the customers. For establishing the premises of
the restaurant, it needs a separate place in the area whee the level of population is high. Spicy
Restaurant is taking a two floor building on rent in which at the ground floor it will serve the
food products to their customers and at the upper floor it will continue with the food production
process. It will carry out the preparation of foods as per the demand of the customers. The
estimation about the level of production to be carried out depends upon many factors. For
assessing about the demand of the food product, restaurant will make use of marketing activities
such as the marketing campaigns, advertising, sales promotion. With the help of these activities,
restaurant will the people aware about the different products and services provided by them to
their customers (Kirkpatrick and KirKpatricK, 2015). The queries related to the food provided by
them will be solved in the marketing campaigns and also when the customer directly makes their
visit to the restaurant.
Operational Plan
Time Tasks
10:00 A.M. Arrive. Checking the work of Cleaning Crew such as clogs in burners,
stoves, ovens, etc. for overall cleanliness.
10:15-10:40 A.M. Setting Production Level for all stations which are vegetable preparation,
baker preparation, tables, linens, table clothes, line preparation, pantry, sea
food portioning, drinks, wines.
11:00 A.M. First cooking begins.
12:00 P.M. Produced item arrives for checking the quality, taste, quantity produced
properly or not.
01:45 P.M. Final check of the line production to ensure readiness.

02:30-04:00 P.M. Customers visit to the Restaurant. Follow up on Production process.
04:00-04:30 P.M. Production process and cleanliness all are going on from time to time as per
the demand of the customers. Lunch time for some employees from 01:30-
02:30 P.M.
04:30-05:30 P.M. Lunch Time for some employees and production is in continue according to
the customers in the restaurant.
05:30-07:30 P.M. Checking the day's collection and making records and then submitting to
the Manager. Food preparation process is still continuing.
07:30-09:00 P.M. Doing the cleanliness process again. With this customer are also provided
with dinner.
09:30 P.M. Restaurant Closes for the Day.
The Restaurant is running only five days in a week (Laudon and Traver, 2016). The description
of these days are provided as under:
Days Time
Monday 11:00 A.M.-09:30P.M.
Tuesday 11:00 A.M.-09:30P.M.
Wednesday 11:00 A.M.-09:30P.M.
Thursday 11:00 A.M.-09:30P.M.
Friday 11:00 A.M.-09:30P.M.
Risk Analysis and SWOT Analysis
SWOT Analysis can be defined as a technique which help in knowing about the
strengths, weaknesses, opportunities and threats that can be faced by a business. With the help of
this analysis the following can be assessed and their impacts on the business can be judged. In
launching a new business the Spicy Restaurant will also have to face several threats and also
have opportunities (Léger-Jarniou and Kalousis, 2014)(NA, 2016). These risks can also be of
other types such as the financial risk. These are the risks which effect the working of the

restaurant in a negative way due to deficiency of finance available to them. As the restaurant is
choosing the penetration pricing strategy, so there is a possibility of this kind of risk to occur. So
the Restaurant also has to make some policies to deal with the situation which occur to due to
deficiency of finance. To deal with this situation, the restaurant is keeping some of the amount in
reserves so that the future discrepancies can be dealt.
So for analysing them Spicy Restaurant is also making use of SWOT Analysis to know
about its competitive position and to develop strategic planning to deal with these situations. The
below is the description of Strengths, Weaknesses, Opportunities and Threats of Spicy
Restaurant:
Strengths: The Strengths of Spicy Restaurant are provided below:
 Prime Location has been chosen for setting up the premises of the Restaurant.
 Small size helps in checking all the works of the restaurant completely so that the best
quality of products and services can be provided to the customers.
 Experienced employees and chefs are also a part of strength of the restaurant.
 Clear vision of the market needs such as knowing properly about the needs and demand
of the customers, available of the latest technology in preparing the food products.
 Energy efficient Food production equipment available which will reduce the overall cost
of production of the restaurant.
Weaknesses: The Weaknesses of Spicy Restaurant also discussed as under:
 In the new venture, it is not easy to retain the employees unless they are provided with
good salary and incentives (Papadopoulos and et. al., 2013).
 Keeping pricing low will impact badly on the financial condition of the Restaurant.
 Cost of being updated with the latest technology is very high..
 Unable to operate in peak seasons due to less availability of staff.
 Lack of knowledge about the new place where the restaurant is established. However, the
market analysis will be done but the perception always do not go in the right direction.
Opportunities: The following are the opportunities for the Restaurant:
 Low barrier to entry in this industry also provides opportunities to the Restaurant.
 It can also entertain the opportunity to provide breakfast also to their customers with
lunch and dinner.

 The area chosen for building up the Restaurant is highly populates area and also the
population increases more fast than other cities of Canada.
 The industrial area of this place is also a target the restaurant which is also another source
of revenue for the restaurant. It is an opportunity for the restaurant.
 It has also an opportunity to attract the corporate people for meetings as in the five
kilometres radius there are no other restaurants available which are providing the same
facility as Spicy Restaurant is providing (Pretorius and Rosslyn-Smith, 2014).
Threats: The following are the threats to the Restaurant:
 The rules and regulations of the government also increase the intervention of government
in the working of restaurant such as the Food and Safety Act, etc. are threats to Spicy
Restaurant.
 Supermarket and the Convenience Stores are also threat to the restaurant as they also
provide food products which can effect the sales of the restaurant.
 Those customers who believe in food better to be prepared at home are also threats to
Spicy Restaurant.
 There are also some chances of increase in the taxes in future as the number of businesses
in this industry is growing on regular basis so the government can increase the tax rate.
 The property is also taken on lease which can be anytime taken by the owner in a short
notice . So it is also a threat to the restaurant (loughter and et. al., 2016).
 The regular changes in the business environment can also reduces the sales of the
restaurant.
CONCLUSION
From the above given data it can be concluded that business plan plays a very important
role for opening any new business venture. It covers various aspects that affects a business in a
positive or negative way and provides an estimation whether to choose or not the business
venture.
Further it is also concluded that with the help of making business plan, all the activities
related to performing the tasks of the restaurant also divided and their proper schedule can be
maintained. Overall, it increases the efficiency of the restaurant in providing the customers best
quality. Various types of food services provided by the restaurant also help the restaurant to get a
step closer to the success. Looking on the cultural backgrounds of the customers will also help

the restaurant in identifying their needs and demands and the type of food products that they tend
to prefer.
Moreover, it is also concluded that business plan is helpful for the identification of
potential customers of the business and the requirements needed to start-up a business. The
analysis of all these aspects help in making a business venture to be successful one.
Recommendations
The business plan in launching any type of business venture is helpful so before staring
any business it is recommended to prepare firstly the business plan to get an idea about all the
aspects required in the opening the business and also know about their related impacts on the
working of that business. When business plan is prepared in order to open a new business
venture of Restaurants, it is must to focus upon the customers needs in order to get sustainable
project success. The business plan must also focus upon those factors which may prove to be a
challenge for the business and ways to overcome them.
Further it is also recommended that restaurants must offer a variety of food products to
offer their customers for attracting and retaining the customers for a long period of time. The
managers must make the project in a way which is easy to lead and also the improvements in the
project as and when needed. The recommendations are also about to follow the rules and
regulation laid down by the government so that the negative intervention of the government can
be reduced.
Moreover, it is also concluded that starting a business should also concentrate on
planning as it is related to the performance of the company as a whole. Good planning will lead
to good performance of the venture as the business will come to know about the environment in
which it is operating.
Terms and Glossary
Terms Definition
SWOT Strengths, Weaknesses, Opportunities, Threats
OTI One Time Investment

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