Business Plan for The Barbary Restaurant

This report discusses the development of a new and innovative restaurant, The Barbary, through the implementation of a comprehensive business plan. It covers market analysis, target audience, pricing strategy, and future development.

BUSINESS PLAN

Executive Summary
This report is abut the development of new productive business plain, the business plan is
for the development of new and innovative restaurant. This project is done by the aid of
marketing analysis, market opportunity evaluation, along with the study of its present milestone,
there for the development of effective business plan it involves the study of present market
industry related to the organisation with the help of different management and analysis tools, for
producing the marketing strategies along with the effective targeting of the audience. For making
the strong position in the market organisation need to meet comparative edges with the analysis
of competitive force of the market.

Table of Contents
INTRODUCTION ..........................................................................................................................4
Company overview..........................................................................................................................4
Market opportunity......................................................................................................................4
Key factors and benefits..............................................................................................................4
Pricing and revenue ....................................................................................................................4
Milestones of The The Barbary...................................................................................................5
Future development.....................................................................................................................5
Industry overview............................................................................................................................5
Industry analysis..........................................................................................................................6
Target audience...........................................................................................................................6
Market strategy............................................................................................................................7
Competitive landscape................................................................................................................7
Differentiating factors.................................................................................................................7
Investment opportunity and finance............................................................................................9
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Business plan is defines as set of actions & tactics in written documents to achieve
objectives. The Barbary, a British cuisine small sized based restaurant located in U.K. The
restaurant provides open see served dishes to their customers with fine dining services. Main aim
of this report is to implement a business plan to achieve objective. This report comprises of
PEST analysis, competitors analysis, business overview, SWOT analysis, financial requirement
& operational plan.
Company overview
The The Barbary is there in the Convent garden, which has taken inspiration through the
The Barbary Coast which is identified by Berbers which is on the Atlas mountains.
This is restaurant which is there in the UK where it is going to start the vegan restaurant which is
one of the best demanded food references by the people of London. There are many things in the
menu which is going to be offered to the customer of the restaurant (Ampountolas, 2019).
Market opportunitybarbara restaurant
In London there are very less restaurant where there is availability of the vegan food
which is there need to have much demand of such food. So, the restaurant need to have such
quality food for their coaster where they are able to full fill the demand of their customer for the
higher benefits for the company. Due to having very less vegan food provider The The Barbary
have the high level of benefits for attracting more customer for their business.
Key factors and benefits
There are many key factors which are there for the company. Where main factor is the
availability of the vegan food in the London. High quality of food which is provided by the
restaurant to their customer. This leads to the higher benefits for the company which can make
high profit.
Benefit for the target market:
The new food range that is being developed by The Barbary restaurant that is based on a
complete vegan range of products is going to benefit their target segment of customers. The
products are specially developed for the target segment that is having preferences for vegan food
range.

Pricing and revenue
The concept is arises like in the country many of people facing lot of health related issue
which is generally diabetes and obesity. This problems are creating loss of health related
problem so in this, the idea of organic food is growing in UK. On of restaurant, The The Barbary
started this business eventually and dealing with organic food. The marketing of this organisation
is by their idea which is organic matter life (Dye, 2016). After a while, the pricing decision is
fixed by senior executive of the company which is based on the different product. Price of
product varies in different form, where organic and healthy food is prepared by fresh fruits or
vegetable without adding no chemical and filters. So the pricing strategies are sometime taken by
expensiveness of raw material and sometime depend on marketing management like how the
organisation ads help to promote organisation. So, their pricing strategy is differential and
changes upon the availability and situation. The The Barbary has set their own price based on the
creativity with product, innovation which type of ingredients are used and component of
experience.
Milestones of The The Barbary
The The Barbary restaurant has proved to become one of the most beloved dining places
by the British public. The establishment has gained several awards from prestigious
organisations in the culinary world by providing there customers best dining experience with the
help of talented staff at all departments in the restaurant (Emuchay, 2020). The establishment
was able win title of Time Out London best restaurant consecutively in the year 2017 and 2018.
The enterprise gained Michelin Bib gourmand for giving exceptional dining experience to their
customers for three years in a row from 2017 to 2019. The organisation was recognised as part
of the 100 National restaurant in 2018 and has been part of such lists which praise enterprises
with excellency in field of culinary service since many years.
Future development
There are many future development which is there in the company which can help in
maintaining the high quality this can help in creating the huge number of customer base which
can help in expanding the business. Company is able to retain their customer which is one of the
hardest work in the food industry which can be the big benefit to the The Barbary (Hänninen,
2017).

Industry overview
Food industry is the huge filed for the business as it involves the opportunities for the
development of different variety of food at different level. It is subdivided in to different type of
the food industry, and it very complex because it involves the multiple activities for the
accomplishment of business. In the world there are the different type of culture and food items
related to it which is the biggest filed of business opportunities, entrepreneurs can chosen one of
the food industry type for their business plan. Food industry functions and activities are divided
into processing, resourcing, packaging, quality analysis, preservation and stoke management.
Restaurant and packed food product industry's are one of the leading type of food industry (Lau,
2018).
Industry analysis
The market & industry & hospitality sector is changeable & is increasing at rapid scale.
In relevance of chosen company, it their target market is based on geographic variable. This is
because they mostly target professional people & urban areas. To examine market & industry
analysis BCG Matrix has been discussed as follows-
Dogs- It is first element in which it shows whether market is low market share & low
growth rate. In relevance of chosen restaurant, their market target market does not fit into this
category.
Question marks- It reflects higher demand & income but low market share. In reference
of geographic market of selected restaurant demand of vegan restaurants & product is higher but
market share is low due to which survival become difficult. For example- in many geographic &
demographic markets non vegan products has large market share (Namin, 2019).
Stars- It is another component in which market has high cash generation & high growth
rate. IN relevance of selected restaurants, they their targeted market of geographic & urban areas
come under this category.
Cash cows- It is last element in which market of geographic is stable of selected
restaurant. In this, cash is generated to support business for survival. In relevance of The The
Barbary, during this pandemic situation they have been entering into cash cows. The chosen
restaurant has many competitors such as Evelyn’s table, Casamia, The TUDOR room etc.
Competitor analysis:

Threat of new entrants: For The Barbary presently there is low threat of other new entrants as
initially no threat of any new brand entering the vegan range of products. They are having a build
up brand image as it is known as a vibrant spot that has a benefit of being a contemporary spin.
So it is going to benefit the restaurant in enhancing their present market share.
Threat of substitution: In The Barbary the vegan range of products will include a plant based
range that consist of animal products dairy, meat and eggs. The main aim will be to market their
new menu by means of offering a highly nutritious food products that will lead to reduction of
chronic diseases for the target segment of customers of The Barbary. So it can be said that
overall threat of substitution for The Barbary is low.
Bargaining power of buyers: The bargaining power of buyers will be low in the instant
situation as there is a wide range of vegan products that is not present in other competitors of The
Barbary. So, customer will be having limited options available to fulfil their requirement for
vegan products.
Bargaining power of suppliers: Vegan menu of The Barbary restaurant will consist of
requirement for plenty of fruits and vegetables that consist of beans, nuts, seeds. All this has to
be fresh so the bargaining power suppliers is high because it is not easy to easily switch between
suppliers for The Barbary restaurant as the special menu of vegan products requires some special
category of vegetables & fruits.
Competitive rivalry: There is high competitive rivalry for The Barbary restaurant as they are
having a competitive advantage in terms of new innovation that they are making in their present
product range.
From the above discussed analysis it can be said that The Barbary is having a higher
competitive advantage as the present business plan will benefit them to successfully launch their
products.
Target audience
This is the one which are there in the place for having such type of food which is there
the vegan foods. One of the main target audience are the visitors or say tourist which are there
for the visiting purpose and like to have some good quality of food in different restaurant which
is able to spread good word of mouth for the restaurant which is ultimately able to create the high
benefits as the high customer base (Nejad, 2017).

Market strategy
An organisation uses various kinds of strategies in market to sell their product or service.
The identification of effective and probable pricing is defined by strategies which are being
acceptable & has good impact on company & positive effective on customer. Usually before
making pricing decision the head of organisation fixed some and amount of product which is
minimum to sell. As per this context, in UK a venture is going to introduce a restaurant called
vegan restaurant (Nejad, 2017). This firm will decide to take the advantage of recent time. Which
initially target the market by providing organic food to customer and make a concept of change
lifestyle of UK people.
Marketing strategy: There is a new product development process that s taking place in The
Barbary and is going to benefit this restaurant in long run. But at initial stages in order to create
awareness amongst the target segment of customers there is need of use of some innovative
marketing strategy such as there will be adoption of digital marketing strategy by The Barbary
supernature where they will be a social media campaign that will be used for laying down of
communication channels with their customers. In this the overall health benefits of vegan range
of food will be highlighted for the target market and then according to that there will be further
development of hoardings, personal indirect form of marketing strategies in order to lay down
communication channels with the customer.
Pricing strategy: There will be use of a price penetration strategy as in the initial stages for
occupying a larger share of market customers have to be attract by using a lower prices for their
new products in the menu.
Competitive landscape
The competitive environment of respective selected restaurant is increasing at higher
level as due to changing needs & demand of customers. Main competitor of The The Barbary
restaurant is The Tudor room & Casamia (Peng, 2018).
Direct competitors
The Tudor Room strength
Main strength of this restaurant is that it provide both vegan as well as non-vegan dished
to people & with at affordable prices (Lau, 2018).
Weaknesses

Main weakness of this restaurant is that it targets market on demographic market which
makes it difficult for them to make decisions.
Indirect competitors-
Evelyn’s table
Strength
Strength of restaurant is that it is run by skilled employees which gives them competitive
edge.
Weakness
This restaurant ambience is not much attractive as compared to The The Barbary mainly
because of open served dishes to customers.
General site information:
The barbarry restaurant will launch their new vegan range of products in their present physical
location only. According to the success at this location there can be further expansion of this
restaurant to a completely new location.
Ethical considerations:
Some of the ethical considerations that have to be taken care by the Barbarry restaurant while the
new product are being launched includes positive employee relations, food safety that includes
the firm commitment to food safety. The code of ethics for Barbarry restaurant will also include
the attention to any type of harmful additives.
Legal considerations:
Some of the legal considerations that have to be taken care of by Barbarry restaurant includes
rules regarding updating of regulations, administrative, executive, minimum wages laws. Health
and safety act regulations have to be considered as there can be scenario of critical risk to health
of customers of there is any situation of negligence. There should be no instances of wage
disparities or pay gap situations.
PEST ANALYSIS
It is significant for an organisation to conduct an external analysis as it Help Company to deal
with the complex situation and gain knowledge about factors that impact on the performance as

well as operations. In context to this, The The Barbary is open dishes served restaurant which
would provide western & traditional starters, desserts and main course along with the touch of
veganism in it. All the products is made up of fresh fruits, fresh vegetables & other required
ingredients. In context to The The Barbary, it will be able to fulfil the demand and requirements
of people prevailing in London. The PEST analysis of The The Barbary is given below:
Political Factors: It consist of factors such as taxation policies, corruption level,
exchange rates and many more. Positive: It is determined that the political stability of UK is quite well which support
new ventures to expand its operations in a proper manner (Thorpe, 2017).
 Negative: BREXIT is considering as one of the factor which has been affecting the
political stability of UK and impacting a state of unrest on confines of whole chain.
Economic Factors: It is significant for the entrepreneurial venture to undertake
economic factors such as inflation rate, currency rate, economic development and so on. Positive: Usually, the effective development of economy of UK develops opportunity for
The The Barbary to capitalise on the infrastructural facilities.
 Negative: It is analysed that because of Brexit, the purchasing power of people living in
UK is decline that affect negatively on the sales and profitability of company.
Social Factors: It involves factors such as lifestyle, trends, likelihood and other aspects
as well. Positive: It is stated that shift in preferences of customers from junk food to healthy food
will develop an opportunity for The The Barbary to fulfil the demand of customer and
gain success as well.
 Negative: It is determined that the taste as well as preferences of customer is
continuously change and to cope with this impact negatively on activities of The The
Barbary.
Technological Factors: It is significant for companies to make use of new technology as
it help in attracting people and sustain in market for longer time period. Positive: The people of United Kingdom prefer to make use of new technology and
adoption of new technology will assist The The Barbary to retain and attract large
number of people.

 Negative: It is determine that adoption of new technology arise cost to company that
effect on its profitability and revenue in a negative manner (Emuchay, 2020).
SWOT analysis:
Strengths:
The main benefits that are associated with the vegan product range of The Barbary is that the
vegan dishes will be proving all the nutrients that is required by a person by eliminating all the
possible risks that are associated with harmful animal fats.
Some of the major benefits include reduction in risk of heart diseases. Plant foods are rich in
fibre that will lead to better heart health.
Lower calorie food will lead to managing of weight as obesity has been one of the major issues
faced by majority of citizens across London from different age groups.
According to review of 2017 vegan food is very helpful in reduction of cancer risk by 15 percent
as it includes food rich in fibre, phytochemicals and vitamins that includes biologically active
plant compounds.
Weakness:
The weakness is associated high cost of raw materials that has to be incurred by The Barbary
restaurant in order to launch a new vegan menu of products.
Opportunities:
There is opportunity to further expand the product range by focussing on a development of a new
menu that just focusses on weight loss criteria of people. There can be emphasis on the way
vegan diets can help people more as compared to semi vegetarian, omni-virus and pesco
vegetarian diets.
Threats:
The major threat is from the existing competitors who can launch a similar food range menu of
vegan products and can affect the present sales of Barbarry restaurant. It is a big threat in long
run as it may affect the present sales and customer base of Barbarry restaurant.

Investment opportunity and finance
The start-up costs of restaurant in range $15000 to $48,000 which is good in initial stage
through which many of it invested in the premises which includes the cost like furniture, in
decoration and in many more where the investment is done. In reference to the competitors the
Vegan restaurant has the high price for its food which is seen to be negative point and the
restaurant is trying to overcome through it by reducing the cost. For this they are reducing the
raw cost of the product. There selling price is higher in compare to their competitors and due to
decreasing the cost of the product they are able to deliver the same quality product to their
customer. Fixed and running cost of the business is getting high due to running business and
restaurant is able to maintain its revenue by selling their quality and healthier product to the
health conscious customer. Restaurant is getting more profit by reducing its cost and due to
standard pricing the sale increased and the profit of the restaurant is getting higher day by day.
The restaurant is easily able to recover the cost and is able to reach the break-even point in just
few months which is good for any restaurant. Break-even point shows the point through where
the restaurant or any business is able to make profit (Zhou, 2017).
Calculation- Business plan
Cost sheet
Particulars Year 1 Year 2
Fixed cost
Rent 5000 5000
Insurance 2500 2500
Salary of managers 3500 3500
11000 11000
Variable costs
Food material cost 2000 2800
Wages 900 1200
Advertising cost 550 300
Electricity cost 950 1000
Other expenses 90 100

4490 5400
Income statement for two years
Particulars Year 1 Year 2
Sales (Revenues from food
sales) 25000 28000
Less: Cost of sales
Fixed cost
Rent 5000 5000
Insurance 2500 2500
Salary of managers 3500 3500
Variable costs
Food material cost 2000 2800
Wages 900 1200
Advertising cost 550 300
Electricity cost 950 1000
Other expenses 90 100
Net margin 9510 11600
BEP calculation
BEP in units Fixed cost/PV ratio
PV ratio
Contribution/
sales*100
Year 1 Year 2
Contribution 20510 22600

PV ratio 82.04 80.71
BEP 13408 13628
From the above stated table, it is seen that business plan has been prepared for for 2
years & BEP as well as net profit has been calculated.
CONCLUSION
From the above discussion the restaurants macro-environmental overview and through
the market and industry analysis it can say that this restaurant is having going through the high
competition and due to having the higher pricing of the food they are suffering the high
competition. The restaurant is planning for better operation for the restaurant and through the
SWOT analysis the restaurant is able to find the opportunity and the threads for better
profitability and productivity. The financial state and the break-even-point analysis says that
restaurant is making high profit which is good for the business.

REFERENCE
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