China Gate: A Business Plan for a Chinese Cuisine Restaurant

This article presents a business plan for China Gate, a Chinese cuisine restaurant in Canada. It includes a description of the company, mission, objectives, location, target market, menu, pricing strategy, and marketing strategies. The article also discusses the policies in the food and beverage industry of Canada, the market needs, and the analysis of China Gate's competitors.

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Title and Code of the Module:
HM604MR-20S1A
Food And Beverage Management

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Table of Contents
"CHINA GATE" ........................................................................................... Error! Bookmark not
defined.
Description of Company: .............................................................................................................................. 3
The Business Plan:......................................................................................................................................... 4
The mission of China Gate: ........................................................................................................................... 4
Objectives of China Gate: .............................................................................................................................. 5
Location:........................................................................................................................................................ 5
Target market: .............................................................................................................................................. 5
Market Needs: .............................................................................................................................................. 6
Restaurant St yle: ........................................................................................................................................... 6
Analysis of China Gate competi tors: ............................................................................................................. 8
Products: ....................................................................................................................................................... 8
Price: ............................................................................................................................................................. 8
Food Cost Formula Example ......................................................................................................................... 9
Table 1: calculation of food cost................................................................................................................. 10
Pricing Strategy: .......................................................................................................................................... 10
Items on The Menu Card: ........................................................................................................................... 10
China Gate Menu Card: ............................................................................................................................... 11
Promotion And Marketing Strategies: ........................................................................................................ 14
Food production methods: ......................................................................................................................... 15
Planning And Operational Management: ................................................................................................... 15
Service and Quality: .................................................................................................................................... 15

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China Gate offers three kinds of services: .................................................................................................. 16
Training of staff and Customer services: .................................................................................................... 16
Legal Aspect s: .............................................................................................................................................. 16
References: ................................................................................................................................................. 17
Description of Company:
The plan is to open a Chinese Cuisine restaurant- providing Chinese food & beverages
along with a mesmerizing environment. The name of the restaurant chosen is "China
Gate". It is an eating place for people who love to eat Chinese Cuisine in Canada.
First step Before Launch: conduct a market survey
The food industry is one of the fast-growing industries that are enhancive and are
authentic. The perpetual orientation that is brought about by the food industry is the
ruling factor these days. Before opening and jumping into the market, first, we would
conduct research. This research would take one to two weeks. To get a deeper
understanding of the Chinese food & beverage industry in China Town, Canada, we
plan to open. Next, we would collect the data on who our target would be( Chinese and
other people who love to eat Chinese Cuisine), latest trends of the competitors already
working in the industry.
Policies in the food and beverage industry of Canada:
The Canadian people are conscious of the quality of food they eat. There is no room for
an unhealthy diet in the country. Keeping this trend in mind, it is wise to open up a food
& beverage restaurant, which provides high-quality food prepared according to the rules

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and legislations sets by Health Canada, at nominal prices. Quality with along
uniqueness in the Food & beverage industry bring in more customers.
There are a set of policies that are put forth like that of food consumption policy, sound
development of food industry, policies on imports and exports that are vital to be
considered.

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The Business Plan:
The business plan of the China Gate is designed to compel the potential stakeholders to
invest. It also gives them security about how the Food & beverage project will move
forward.
China Gate is a new addition to the most admired Chinese restaurants in China
Town to give a home-like feeling to the Chinese community in Canada. It also
warm-heartedly welcomes the foreigners to try the Chinese Cuisine and
experience traditional China while sitting in Ontario, Canada.
The story of selection is to justify the probability to let the organization get stapled on to
the wide country policies and the enormous growth prospect.
The mission of China Gate:
China Gate aims to give the best Chinese Cuisine with high-quality service to the
foodies at nominal prices.
China gate aims:
 To give the trendy yet hygienic Chinese Cuisine.
 Provide a great working environment to the staff with dignity and respect.
 Includes diversity in its workforce.
 Incorporate the highest standards of excellence in food production, preparation,
and service to potential clients.
 To build and maintain long-lasting relations with the clients.
 Contribute positively to the welfare of society and the environment.
 Acknowledge that profitability is essential to the success of China Gate.

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Objectives of China Gate:
There is a list of main objectives of the new venture. To complete construction in 6
months after the final OK to the project is given. This helps to attain a positive net profit in
the first quarter. To Become a market-leading Chinese Restaurant in China Town and to
expand in other parts of the country after two years by generating an average $70,000
plus in revenues monthly. This helps to increase annual sales between 7-10%.
Location:
The location was chosen for the restaurant China Town in Ontario, Canada. The
restaurant covers a total area of 400 sq. yards, and it is located on a busy road of China
Town. The population residing in China Town is the Chinese community and belongs to
Upper-middle-class or middle-middle class. The reason to choose Canada is to ensure
the fact that that the business flourishes with the better identity that will get to stay
enhancive over time with the proper customer base.
The plan highlights that the restaurant will be opened for customers after eight months.
The initial six months would be spent on the restaurant's interior décor and two months
for marketing through various platforms.
Target market:
Who are our target customers? •once the target market is defined, we have to
understand what they buy, why they buy, where they buy from? This would help us to
offer the best and unique items on the menu card to our clients. The target market of

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China Gate is the Chinese community living in Canada, who wants their desi cuisine.
The target market are the youth and the elders that are mostly favorable to go with the
ideology of food approaches.

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We also target people who are fond of eating Chinese Cuisine. Our restaurant is for
people coming from upper middle class and middle -middle-class families.
Market Needs:
In China Town, Ontario, there are several high-quality Chinese food restaurants, but
these are expensive. They also use canned foods like prawns, chicken, or fish for food
production. . the China Gate food will be 100% freshly prepared by the chefs in front of
its customers. The China Gate also allows its clients to customize their food to their
specific tastes. There are several trends that are highlighted to make sure that the
needs are all perpetual. The aspiring varieties of foods and variable flavors are all the
requirements of the market.
Restaurant Style:
A Chinese layout restaurant- such an interior of the restaurant would let the China Gate
stand out from the crowd with unique design ideas and layouts that will make the
establishment remembered by the customers.
The main idea of the atmosphere of a layout isn't only to make the customers feel
welcome—the management of China Gate also wants to provide its customers with a
memorable experience they'll want to come back to.
Branding- China Gate needs a brand logo. We plan to design the China Gate menu,
background music in the restaurant, cutlery, and even and uniforms of restaurant staff
to comply with the Restaurant logo. China Gate's staff uniform would be black. The
restaurant's layout would have red as the prominent colour, from chairs to table clothes;

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all would be red. China Gate would play traditional Chinese folk music in the

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background, but in a low tone, so that the customers can enjoy food while listening to
the background music. The walls of China Gate would be beautified with Chinese arts.
The China Gate logo would let its customers know what the restaurant is all about.
China Gate's logo includes a large red-colored Chinese Dragon with a black
background. This logo sets the tone of the Chinese restaurant and lets the customers
know what they can eat here. A three-stage theory can be taken in this regard. It
includes:
Design: A favorable logo is one of the finest measures of branding that can be
inculcated.
Value proposition: the products and services will bring in the category that is being
defined. It will also highlight the prominence of the organization along with the clarity of
the brand.
Positioning statement: This entirely goes with the interface of customers and how far
they are been able to tackle with the needs of customers.

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Analysis of China Gate competitors:
As the name indicates, China Town is a place of the Chinese community in Canada.
There are almost 20 other small and large Chinese restaurants offering multiple
Chinese cuisines and beverages in China Town. Among them, WangFu, Dragon City,
Mei-Kong, and China Grill are a few. All of them are highly acknowledged by the
customers and have a large target market. It is important to check what our competitors
are offering? China Gate needs to create its point of competitive difference- Chinese
Dishes: Dumplings, Chow mein, Yangzhou Fried Rice. It doesn't have to be radical
here, but it does have to be relevant. A perfect market research is one of the prominent
factor that will let to understand about the competitors. This can also help to deal with
the prominence of market criterion that can enhance a business.
Products:
China Gate is almost providing the same number of dishes just like other Chinese
restaurants in the market. Still, China Gate believes in differentiating its items on the
menu card through high quality. Quality is the only factor that can make the product
unique from its competitors. The number of servings is also unique for China Gate. The
uniqueness about the products is that there is a specialty in the taste of the recipes that
are contained. The continental recipes are contained in the firm.
Price:

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China Gate is for upper-middle-class or middle-middle class families. Its prices are
nominal, keeping in mind the financial position of its clients. The prices of each item are
mentioned on the above menu card. The newly opened restaurant plans to keep

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minimal prices in comparison to its competitors to attract more customers. Of course,
people want to spend less and eat more yet high-quality food while sitting in a
charismatic environment. The price of the items that are contained include 11.9 dollars
around.
Food Cost Formula Example
Food Cost Percentage = (Beginning Inventory + Purchases – Ending Inventory) ÷
Food Sales
Meat items $ 8000
Spices $ 4000
Crockery $ 7000
Food Sales $ 14000
Overhead Cost $ 3300 ( 33 % )
Food Cost $ ( 8000 + 4000 –
7000 )
Food Cost $ 5000
Costing Percentage $ 8300 / $ 14000
Food Item Percentage 59.28 %

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Table 1: calculation of food cost
Pricing Strategy:
According to assumptions and forecasted pricing, according to the food conversion
ratio, after the market survey of different Chinese restaurants in the same town and
particularly the same locality, we will design each item sale price with a 59.28 % profit
margin.
Example
Item Total Cost Formula Menu Card Price
Rice Bowl $ 60 59.28 % * 60 =
35.56
$ 95.56
Items on The Menu Card:
The menu of China Gate is important to attract a massive number of people of Ontario.
First, we would discover the latest menu trends in Chinese Cuisine, what other Chinese
restaurants are offering, and what Chinese dishes and beverages our customers want.
Some of the hottest Chinese Cuisine include Chow Mein, Chicken Manchurian, egg-
Fried rice, Dumplings, Chinese Soups.

China Gate Menu Card:
*All prices mentioned are in Canadian * All prices mentioned are in Canadian
Dollars Dollars
Soups:
Chicken corn soup
Hot & sour soup
Creamy soup
Rice:
Egg fried rice
Vegetable fried rice
Prawn fried rice
Fish fried rice
$95.6
$95.6
$95.6
$ 100
$ 100
$ 150
$ 150
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Chicken fried rice
Chicken chili dry
Beef chili dry
Pineapple Chicken with sauce
Mushroom sizzling chicken
Dumplings
Cold drinks:
Soft drinks
Mint Margarita
Malts
Mineral water
Desserts:
Ice creams
One scoop
Two scoops
Flavours: Mango, strawberry,
chocolate, vanilla, coconut.
*All prices mentioned are in Canadian
Dollars
$ 120
$ 150
$ 150
$ 100
$ 80
$ 40
$ 50
$ 40
$ 20
$ 50
$ 80
*All prices mentioned are in Canadian
Dollars
$ 150
Total Project Fixed Cost

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Item Cost
Advance Rent for 1 Yr $ 12000
Machinery $ 6000
Furniture $ 5000
Interior Decoration $ 3000
Delivery Vehicles $ 4000
Total $ 30000
Table 2: Total project fixed cost
Revenue Stream
Type Total Sales %
Dine-In 75 %
Take Away 25 %
Table 3: Revenue system
Projected Income Statement per Month
Total Sales $ 60000
Cgs/ Food Purchases $ 10000
Worker Salary $ 5000
Rent $ 1000

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Repair/Maintenance $ 500
Delivery Fuel $ 500
Bills & Deprecation $ 2000
Marketing Expense $ 1000
Total Expense $ 20000
Gross Revenue $ 40000
Tax $ 8000
Net Profit $ 32000
Table 4: income statement
Promotion And Marketing Strategies:
Since this is a new venture in a highly competitive market, the restaurant would require
heavy promotions. China Gate would send out promotions in both ways: through
Billboards in the nearest locations, spreading pamphlets or brochures in the shopping
malls and general public places, and digital marketing, including social media tools,
SMS marketing, and E-mail marketing. Social media tools are used by people from
multiple demographics and allow businesses to reach their potential clients in less time,
with the least marketing costs.

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The business aims to provide high quality to its first-month clients to lead to positive
word of mouth. The marketing campaign through satisfied clients is the best thing a
business can do.
Including in heavy promotions, China Gate would give a 40 per cent OFF for the first
one month. This promotional activity attracts massive people and lets them know about
the China Gate and its offerings.
One week before opening, China Gate would give away free coupons to its target
clients. This promotional activity is spread brand awareness among the target clients.
Free coupons would bring in more customers to the business.
Food production methods:
The rate of production and efficiency of a restaurant depends on the creativity of the
chefs and the kind of machinery they use for the production of food. The kitchen of the
China Gate is equipped with grills, an oven, and microwaves. Those chefs are hired
who are experts in Chinese Cuisine.
Planning And Operational Management:
Service and Quality:
The management of China Gate aims to provide high-quality services to its valuable
clients. The restaurant staff would be trained in Customer services' niche to give out the
maximum service quality.

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China Gate offers three kinds of services:
Dine-in Courteous staff- the restaurant can accommodate 100 customers at a time,
providing the mentioned Chinese cuisines on the menu card.
Take-away: the restaurant has the facility of takeaway services. Those clients who do
not want to eat at the restaurant place the order at the drive-through and take away the
food within just five minutes.
Door-step delivery and cash-on-delivery: China Gate would be the first Chinese
restaurant in the local community to provide the door-step delivery. Most clients want to
enjoy the Chinese Cuisine from the comfort of their homes, or for parties, they can order
the food and beverages from China gate. The restaurant also provides the facility of
cash-on-delivery.
Training of staff and Customer services:
The restaurant staff is well-trained about the importance of customer services. From
management to chef and waiters, every staff member is courteous and open to provide
high-quality Chinese Cuisine to the customers.
Legal Aspects:
Some Canadian Legal aspects shall be followed:
 Get a license of selling food in the Canadian market from Health Canada.
 The items on the menu list, the ingredients shall be according to the quality and
safety regulations of Health Canada.

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 The tax of the China Gate will be paid under Canadian law. The total tax of the
business would be paid on the 20percent of the total earnings of the restaurant.
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