Café-Daily Business Plan

This business plan outlines the goals, strategies, and financial forecasts for Café-Daily, a restaurant in Beverly Hills, California. The menu features French and African dishes, and the restaurant aims to provide quality services and customer satisfaction.

Running head: Café-Daily Business Plan 1
Café-Daily Business Plan
Student’s Name
Institution

Business Plan 2
Executive Summary
The founders of the business are Augustine Ceaser and Philip Mule. Both are equipped
with the right skills for running a restaurant after running several restaurant businesses in
America. The café-daily restaurant will be situated in the Beverly Hills in California. The
restaurant includes a full menu prepared by French and African methods, yet in view foods’
preparing procedures from all over the world.
Table of Contents

Business Plan 3
Executive Summary..................................................................................................................... 2
1.0 Introduction............................................................................................................................ 4
2.0 Business Environment........................................................................................................... 4
2.1 Mission, Vision, and Goals..............................................................................................4
2.2 Products and Services....................................................................................................5
2.3 Business, organization and Finance structures...............................................................5
2.4 SWOT Analysis..............................................................................................................6
2.5 Premises, Plant, and Equipment.....................................................................................7
2.6 Information systems and telecommunication..................................................................8
2.7 Intellectual property licenses and membership insurances.............................................8
3.0 Goals, Milestones, and Strategies.........................................................................................8
3.1. Goals and Milestones....................................................................................................8
3.2 Marketing Strategy..........................................................................................................9
3.3 Sales.............................................................................................................................. 9
3.4 Customer management and retention.............................................................................9
3. 5 Pricing.......................................................................................................................... 10
3. 6 Suitable Business Strategy..........................................................................................10
4.0 Business Competition..........................................................................................................10
4.1 The industry.................................................................................................................. 10
4.2 Target market............................................................................................................... 11
4. 3 Market competition......................................................................................................11
4. 4 Influence of five factors................................................................................................11
5.0 Financial Forecasts.............................................................................................................. 11
5.1 Set up costs.................................................................................................................. 11
5.2 Profit and Loss Forecast...............................................................................................11
5.3 Cash Flow Forecast......................................................................................................12
5.4 Balance Sheet Forecast...............................................................................................12
5.5 Break-Even Analysis.....................................................................................................14
References................................................................................................................................ 15
1.0 Introduction

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The restaurant will be created in a way that it presents a unique and lively environment
for customers to enjoy their meals comfortably. The menu will be simple at affordable prices. It
will include a variety of dishes that give the customers a wide variety of options to choose. The
setting of the restaurant will include a 50- seater furnished with attractive lighting and a good
entertainment system. Plans include opening several branches in other countries and provision
of delivery services. Covello, & Hazelgren (2006), came up with simple business plans steps that
ensure the success of any business to be started. These steps will be included in my business
plan.
2.0 Business Environment
2.1 Mission, Vision, and Goals
2.1.1 Mission
To provide the best services in the hospitality industry by setting an example
2.1.2 Vision
To be the most outstanding restaurant by providing quality services and satisfaction to
customers to ensure that customer satisfaction comes first.
2.1.3 Goals
 To attract new dinners in California
 To increase the sales volume thrice within the first three years of operation
 To ensure customer retention by offering quality foodstuffs and services

Business Plan 5
2.2 Products and Services
The Café- Daily menu will feature dishes following French and African food preparation
methods. The delicacies will offer a unique type of food preparations from that offered in other
restaurants. Additionally, the coffee shop will offer a special type of coffee ranging from
espresso drinks, pastries and desserts, and sandwiches.
Newspapers and magazines will also be readily available for purchase. Music
entertainment will involve jazz, RnB's, hip-hop and classical to engage customers while taking
their meals.
2.3 Business, organization and Finance structures
Since the restaurant is small and new in the business environment, it requires simple
organizational and financial structure. Implementation of this business structure calls for ten
experts to make the main business decisions and monitor all the business activities. As we
expand our company, each restaurant will have an experienced manager to ensure a proper run
of the business.
Our first employees will include one cashier, three cooks, two cleaners and four waiters
during working time. It is a perfect number for support staff to run the restaurant outlets
comfortably.Plans will be to increase the number of outlets as well as the number of employees
consecutively.
Payroll plan
Year one Year two Year three Year four Year five
Managers $0 $400 $700 $750 $850
Cashiers $250 $750 $800 $900 $1000

Business Plan 6
Cooks $500 $400 $500 $650 $700
Cleaners $450 $550 $600 $700 $850
Waiters $1200 $1500 $2000 $2400 $3000
Employees 10 15 22 30 36
Payroll $2400 $3600 $4600 $5400 $6400
2.4 SWOT Analysis
On the side of strengths, the business has adequate financial resources that can make it
sustain itself. Qualified personnel is another strength of the restaurant thus delivery of quality
and services to the customers. Offering affordable prices for the meals can also be strength as it
will give the restaurant a competitive advantage over the other restaurants surrounding it.
Weaknesses will give insights on areas to improve on. Insufficient or lack of proper
training to the employees can be a weakness to the firm as they may end up producing low-
quality services which then may affect the smooth running of the business (Pearce, 2008). Use
of paperwork rather than new technology to master food usage in the restaurant to maintain
constant supply can be a great weakness.
Opportunities can include; trying as much as possible to provide a wide a variety of
meals and drinks to cater for customer needs adequately. Coming up with a strategic way to
attract a wide market as well as maintaining the usual customers.

Business Plan 7
Some of the threats associated with the business can include the presence of numerous
restaurants offering similar products and services in the nearby location thus posing a
competition challenge. Government legislation which limits restaurant activities can be a
threat.
2.5 Premises, Plant, and Equipment
The restaurant building will be the only facility at the moment located in Beverly Hills’,
California. All the necessary equipment and appliances required for smooth running of the
business will be fitted on the premise.
The following equipment will be required: oven, grill, freezer, refrigerator, range,
commercial kitchen tools, furniture, signboards, and fittings (lights, TV, etc.), cutlery setting and
computer equipment. The estimated cost of the above plant and equipment will amount to
$40000.
2.6 Information systems and telecommunication
The accounting department will be equipped with computerized programs to
facilitate processing of vouchers, credit cards, and debit cards and cash transactions in the
system. The systems will ensure paperwork is reduced and quick retrieval of records in the
future.

Business Plan 8
2.7 Intellectual property licenses and membership insurances
The business will ensure all the properties and assets are legally acquired and registered
according to the law (Pearce, 2008). The business name will be legally registered, and the
relevant licenses will be acquired and kept to date. E.g., Food Business License.
Relevant insurance covers will be obtained to cater for any risks arising. It will include
theft, fire, public liability and business interference insurance covers. Additionally, the staff
members will have income protection and life insurance.
3.0 Goals, Milestones, and Strategies
3.1. Goals and Milestones
The goals of the business will be;
 To be known and become popular in the target market within one year.
 To ensure the business is stable within one year.
The milestones of the business will be:
 To be the best supplier to the target market within 3-4 years
 To achieve a high-profit level to enhance the full success of the business and put
more efforts on other income generating projects
 To be award-winning and a recognized business in the hospitality sector in
California.
These milestones will be achieved through benchmarking in similar successful
businesses offering the same services and a regular and consistent training to
the staff members to keep up to date their skills and knowledge.

Business Plan 9
3.2 Marketing Strategy
Doole & Lowe (2008), suggest that a good marketing strategy should foster on the
environment for trade, market motives, research and opportunities. Advertising campaign will
be launched to inform the residents and other businesses of a new business entry in the
market. The restaurant will aim to reach its potential customers with persuasive messages that
its products are the best and that it exceeds that offered by its competitors (Doole & Lowe,
2008). This technique will adopt well-tailored messages through the radio, television, social
media and other advertising channels to reach its target customers.
3.3 Sales
Sales analysis methods show we will be able to serve an approximate of 4000 customers
per month is expected. This figure is likely to double during celebration days such as Christmas,
Easter and other celebrations. Projected sales of around $ 100,000 are expected on the first
year which will be expected to double by the second year.
3.4 Customer management and retention
In order to retain customers, the deployed personnel will work in close relation with the
Public relation officer to ensure that quality services are offered to the existing customers (Ngai,
xiu & Chau, 2009). With customers interests and satisfaction vested in the heart of the
management, ensures that the business has a disciplined growth curve with more sales and
quality output. Ngai et al., (2009), suggests that marketing and loyalty programs ensures
customer retention.

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3.5 Pricing
Drinks will be sold ranging from $5 - $10. Any other meal will be sold ranging from $10 -
$50. Considering the prices from suppliers, the price can increase or reduce in different times.
Only mid-range prices will be offered.
3.6 Suitable Business Strategy
The business will operate on a winning strategy pegged on quality. This will ensure that
Café-Daily remain relevant in the market despite the stiff competition from its competitors,
who might be dealing with similar products. Product differentiation plays a great deal in
ensuring that certain products are branded in accordance with business goals and objectives.
Additionally, it helps identify products with the business thus avoiding confusion and chances of
counterfeit.
4.0 Business Competition
4.1 The industry
The restaurant industry will ensure high concentration of top incomer areas compared
to the average earners areas. It will also be considerate about the changes in household
incomes. The present general pattern is for eateries to focus on offering an incentive for cash
with an accentuation on family eateries. The business will keep on benefitting from higher
livelihoods and time requirements on a few families and additionally way of life changes. This
will incorporate all the more feasting out or take away nourishment utilization.

Business Plan 11
4.2 Target market
The general target market will be the entire population in California. The specific target
market will be high income earners because most residents in that location have high income
per capita income. Another specific target market will be tourists as tourism sector is growing
daily in California. Families probably with kids will also a targeted market due to the services to
be offered for different ages.
4.3 Market competition
Value for money will give the business a competitive advantage. This means offering
goods and services that are worth the pricing. Providing quality food stuff and ensuring high
customer service will offer a competitive advantage over the competitors.
4.4 Influence of five factors
The five factors which include: engagement, communication, innovation, project
management and culture will be tightly integrated to ensure the success of the business.
5.0 Financial Forecasts
According to Brown (2016), every business invests in start-ups to as-as to acquire capital
gains through the accumulation of profits. Though profit maximizing is the key goal, losses can
still occur.
5.1 Set up costs
Set-up cost of approximately $500,000 is anticipated. $100,000 will be the owner’s
entity whereby the rest $400,000 will be acquired through loans which will be repaid at an
average rate of 8% in 5 years.

Business Plan 12
5.2 Profit and Loss Forecast
The expected net returns for year one is $55,323, second year $80,435, third year
$120,077, fourth year $143,500 and the fifth year $200,440. These profit projections are based
on profit and loss budget which is drafted for each year of operation (Brown, 2016).
5.3 Cash Flow Forecast
The projected cash flow is as indicated.
Year 1 Year 2 Year 3 Year 4 Year 5
Cash received
Cash from
Operations
Cash Sales $100,000 $145,670 $250,450 $300,112 $375,879
Subtotal cash $100,000 $145,670 $250,450 $300,112 $375,879
Additional Cash
Received
Sales Tax $0 $0 $0 $0 $0
Current
Borrowing
$0 $0 $0 $0 $0
Other Liabilities $0 $0 $0 $0 $0
5.4 Balance Sheet Forecast.
The following is a projected balance sheet for café Daily’s Restaurant
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current $18,750 $9,567 $25,150 $27,556 $30,964

Business Plan 13
Cash $18,469 $60,118 $65,120 $70,150 $75,350
Accounts Receivable $4,720 $15,611 $21,266 $25,116 $35,330
Inventory $5,124 $12,450 $17,357 $22,333 $28,784
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $47,063 $97,736 $128,893 $145,155 $170,428
Long-term
Assets
$68,000 $68,000 $68,000 $668,000 $68,000
Accumulated
Depreciation
$13,450 $17,843 $31,200 $35,550 $47,458
Total Long-
term Assets
$81,450 $85,843 $99,200 $103,550 $115,458

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5.5 Break-Even Analysis
Break-even analysis operates on the idea of the average of the initial (first year) figures
for total sales by units and business running costs. It is estimated as unit cost and fixed costs
respectively.
Break-Even Analysis
Monthly Units Break-even $19,540
Monthly Revenue Break-even $48,690
Assumptions
Average per Unit Revenue $3.75
Average per Unit Variable Cost $1.86
Estimated Monthly Cost $36,457

Business Plan 15
References
Brown, K. D. (2016). Financing for Small Business Southern Style Restaurants (Doctoral
dissertation, Walden University).
Business plans, business models, and elevator pitch competitions. (nod.). Entrepreneurship
Programs and the Modern University, 141-163.
Covello, J., & Hazelgren, B. (2006). The Complete Book of Business Plans: Simple Steps to
Writing Powerful Business Plans. Sourcebooks.
Doole, I., & Lowe, R. (2008). International marketing strategy: analysis, development, and
implementation. Cengage Learning EMEA.
Ngai, E. W., Xiu, L., & Chau, D. C. (2009). Application of data mining techniques in customer
relationship management: A literature review and classification. Expert systems with
applications, 36(2), 2592-2602.
Pearce, L. (2008). Business Plans Handbook: A Compilation of Actual Business Plans Developed
by Small Businesses Throughout North America. Thomson Gale.