Business Development Plan for Eat-O-Bowl Restaurant in London City
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Added on 2023/06/11
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The report covers the business development plan for Eat-O-Bowl restaurant in London City. It includes market analysis, industry analysis, operations details, SWOT analysis, and financial requirements. The report aims to help the restaurant gain a competitive edge in the food and beverage industry.
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 An idea of business development...........................................................................................3 Market analysis.......................................................................................................................4 Industry analysis.....................................................................................................................5 Operations details...................................................................................................................6 SWOT analysis.......................................................................................................................6 Financial requirements...........................................................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11 Books and Journals:..............................................................................................................11 Online:..................................................................................................................................11
INTRODUCTION With the increase in competition, most of the entrepreneurs have begins with innovation. Innovation basically aims to improving or replacing something. Innovation denotes as the specific instrument of entrepreneurs with the support of which a person uses the changes as a chance for a different business. Innovative entrepreneurship can be understood as the practice of setting generating new ideas of business aiming to gain profits from the business, help their community and attain business goals(Amorós, Poblete and Mandakovic, 2019). Entrepreneurs whoareinnovativecreatebusinessmodelstoacknowledgetomeettheorganisational requirements while enhancing their competitiveness in the market. An innovative entrepreneur can be a person who have the ability to manage to produce innovative products to meet the demands as well as trends of the market. The following report aims to build a business development plan for a business. In this report, various aspects of business development plan are covered such as business models, market analysis, industry analysis, operational details, SWOT analysis and many more. TASK An idea of business development. The business development plan is prepared for the“Eat-O-Bowl”company. It will be a restaurant establishes in London City, UK. This will be one of the famous restaurants known for its various food such as a range of different sandwiches, soft drinks, mock-tails, pizzas, burgers, pasta, chocolate brownies and many more. This restaurant will serve its products and services to a greater number of customers in the city. It will have professional chefs and cooks who will be able to serve delightedfood and beverages on the table. It will be a rooftop cafe with exciting and chasing decorum in the restaurant. This company will hire 5-7 professional chefs and 10 junior chefs to support the head chef, 7-8 waiters, one manager and one receptionist. The plan is made so that this restaurant will be able to serve quality of various snacks, desserts and drinks to its customers(Business, 2019). The restaurant will have its speciality on its products such as theseproductsaremadefromveganingredientsthathelpsincreatinguniquenessand differentiation. As this is a trend in the market that customers are more likely to consume food which are vegan in nature, it will in gaining customer attention.
Market analysis A market analysis can be used a thorough assessment of a marketplace within a certain industry. With this analysis, the market dynamics are studied such as potential customer segments, value and volume, buying patterns, competitors and many more. The market analysis in Eat-O-Bowl's context is as follows: Industry overview:The business Eat-O-Bowl comes in food and beverage industry whichisoneofthegrowinganddevelopingindustries.Theremanybusiness entrepreneurswhoinvestedinrestaurantbusinessasithelpsingeneratingmore customers base as well as profits. It has high competition in the industry so it is necessary for the respective business to create uniqueness in its services as well as products. It is seen that nowadays, people are also like to take their meals and eat outside the premises due to maintaining social distancing and hygiene purpose(Chou and et.al., 2020). Vegan and less oily products are in high demand by the customers. All such considerations will be taken into mind for the launch of new business. Define target market:It is mainly considered with the market size, demographics, location psychographic, trends, behaviours and many more. The products and services will be limited up to regional area so that better the services can be indulged to customers. The customers are targetted on the basis of behavioural, demographic and psychographic segments. Customers are targeted mainly between the age group of 18-40. by analysing behavioural factors, the services also be customized so that every customer can have better services. Competition:There are many local and multinational companies established in UK which sells high standard services and products to attract customers. Some of main key competitors Costa Coffee, Fox Cafe Lounge and so forth. Hence, this becomes very essential for the Eat-O-Bowl to be differentiated in its way so that more customers attracted towards the brand. It is also identified that there are least barriers to entry in the industry so it will also must be taken into account. Pricing and forecast:This is the last step in the market analysis in which prices are figure out in order to boost out the sales of business. After analysing all the facts and figures, the prices will be kept reasonable and affordable so that more customers can
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enjoy the services and do not stress out on the price factor. It will not limit the profits of the business(How to Conduct a Market Analysis in 4 Steps — 2022 Guide, 2021). Industry analysis Porter's five forces is known as the model to analyse the industry. This analysis focuses on the five key forces that determine the attractiveness of the particular sector or industry. In case of Eat-O-Bowl, the explanation on five forces are as follows: Threats of new entrants:Establishing a new restaurant business needs moderate amount of investment, making it an easy to enter industry. Another aspect that needs to be addressed is the ease of entry for new restaurant companies is economies of scale, which can be set once the production as well as other operations attain efficiency. The new entrants have to address the operating cost and fixed cost while ensuring to establish the cost benefits. After seeing all such facts, the threat of new entrants for Eat-O-Bowl will be moderate. Bargaining power of buyers:Customers have the power to influence the brand's pricing decisions and the restaurant sector is also impacted by the choices of customers and their switching behaviour. Some major factors are items offered by restaurant, changes in prices, the quality and quantity offered by company and many more. If all such needs are not passed by the customers, then, customer can easily switch the brand. Therefore, th impact of bargaining power of customer will be high to the respective business. Bargaining power of suppliers:In UK, there are number of suppliers available to the businesses who can supply all the raw materials such as bread, coca power, butter and and many more. Having a number of suppliers will decrease the bargaining power of suppliers as companies can easily switch to the supplier who sells products on affordable range. Threat of substitution:The restaurant sectors has number of entities which creates an ease to the customers to make a choice and switch from brand to another brand. The low switching cost is another variable which makes customers to move their loyalty from one brand to another(Dahlin, 2020). In case of Eat-O-Bowl, as they set the prices affordable, it helps in gaining customer base and therefore, the threat of substitution will be less to moderate.
Competition:There are high number of key players in the restaurant industry which creates tough competition to the local as well as international businesses. In UK, these competitors are Hidden Hound, Sweet Noon, Dark Arts Coffee and so forth. All such leading players keep a bigger amount of market share while maintaining a good amount of profit and growth. Operations details The restaurant “Eat-O-Bowl” will be established in the streets of London City as this is the place where most people visited to eat snacks and other eatable things. Customers can easily move into the premises by taking their cabs, taxis or their own private vehicles as there is not difficulty to park vehicles(Eid, 2019). There will be a parking area where customers can park their vehicles. Customers will easily find out the restaurant as the it will be standout in the streets of London City. SWOT analysis SWOT analysis is a strategic tool used by organisation to measure its competitive position and to generate strategic planning. It involves strengths, weaknesses opportunities and threats of business. This analysis helps in analysing internal as well as external factors, as well as present and future potential(Li, Wen, and Yu 2021). StrengthsWeaknessesOpportunitiesThreats Thekey strength is the affordable pricerange with great taste offoodand drinks. Convenience ofparking where customerswill nothaveto Due to having a small amount ofmarket share,the customerscan beleast attractedand movetothe competitors. Therestaurant mayhave lesseramount Thecompany alsograbthe opportunities bytaking online services as these are the new way where customer place orderandget deliveryat home. Itmayoffer Beinganew establishment, thereisthreat ingaining customer's trust. Customersare alwayshaving fearof experimenting something new ormoveto
worryabout theircar parking. Itwillhave goodmenu qualitywhere thereare numberof choices of food tothe consumers. Good ambienceand environment where consumers will eatfoodand listening soothing music tochaseand uplifttheir mood. It has a rooftop viewwhich offersan excitingand overwhelming viewtothe customers.It willhelpin attracting more ofcustomer baseas customersare addictedto brandwhere they find tasty andhygienic food. Onlinefood orderingby peoplewill createa drawbackto therespective business. Similar cuisine typeisalsoa weaknessto therespective business.As the vegan food istrending, everynext player trying to adoptthe strategyand serve customers with veganfood (Galindo- Martín, variousoffers, discountsor prizestogain thecustomer base. Indulging training to staff memberswill helpin improving better customer experiences. More personalised experience will alsohelpin creatingbetter customer servicesand experiencesas theycansee theeffortsby the business. Socialmedia campaigns will helpin increasing customerbase. These platformscan beTwitter, somenew brand(Gao, Guo and Xiao, 2021). Key competitors are themajor threat. All local andglobal companiesin therestaurant industryarea bigger threat to Eat-O-Bowl business. Threatofbad rating is also a threattothe business.As the company is a new start-up, thereisa chancethatit will not able to matchtastes and preferencesof customers.It may down the customer rating andwhich
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masses. Itwillalso provide outdoordining withindoor diningforthe customers who wanttoenjoy food and meals withfreshair (Yao,Zhang and Mu, 2020). Méndez-Picazo andCastaño- Martínez, 2019). Facebook, YouTubeand manymore. Almostevery customerhas anaccounton suchplatforms whichhelps them in getting knowledge aboutthe nearby places. ultimately affectthe future customers. Financial requirements
Business Plan for new firm Start up costs for restaurant business: Sales: $ 500000 for 5000 units Cost of sales: $ 170000 Commercial space (Land): $ 150000 Renovation and Décor: $ 230000 Kitchen appliances: $ 115000 Furniture : $ 40000 Restaurant Technology: Software: $40/ month Hardware: $450 Fixed cost - Licenses and Permits: $ 41500 Insurance coverage: $ 1000 Variable expenses - Administrative charges: $1850 Marketing: $200 Insurance Coverage: $$10000 Salary: $ 30000 Utility expenses: 20000 Income statement (Forecasted) Particulars$$ Sales500000 Less: Cost of goods sold170000 Gross Profit330000 Less: variable expenses62050 Administration expenses1850 Marketing200 Insurance coverage10000 Salary30000
Utility Expenes20000 Less: Fixed Expenses42500 Licenses and Permits41500 Insurance coverage1000 Net Profit225450 Break even point = Fixed Expenses / Sales – Variable cost 42500 / (500000 – 170000 – 62050)/5000 = 42500 / (267950/5000) = 42500/53.59 = 793 units This is required for the firm to sell at least 793 units for earning its profits. CONCLUSION From the above study, it can be concluded that innovation plays an essential role in order to get the maximum out of the business. When developing a new business start-up, it is essential for the entrepreneur to pay close attention on the creativity or innovation in the existing services to build customer base. A good business development plan will help businesses to stand out in the market, having high number of customer base, give hard competition to the existing players and many more. Business plan involves various considerations such as market analysis, industry analysis, operational details, SWOT analysis and many more.
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REFERENCES Books and Journals: Amorós, J.E., Poblete, C. and Mandakovic, V., 2019. R&D transfer, policy and innovative ambitious entrepreneurship: evidence from Latin American countries.The Journal of Technology Transfer,44(5), pp.1396-1415. Business,D.,2019.InnovationandEntrepreneurship:ANewMindsetforEmerging Markets.challenge,142, p.152. Chou, S.F. and et.al., 2020. The critical criteria for innovation entrepreneurship of restaurants: Considering the interrelationship effect of human capital and competitive strategy a case study in Taiwan.Journal of Hospitality and Tourism Management,42, pp.222-234. Dahlin, E., 2020. Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in Asia by Kathryn C. Ibata-Arens.Social Forces,99(1), pp.e18-e18. Eid, H., 2019.Museum innovation and social entrepreneurship: A new model for a challenging era. Routledge. Galindo-Martín, M.A., Méndez-Picazo, M.T. and Castaño-Martínez, M.S., 2019. The role of innovation and institutions in entrepreneurship and economic growth in two groups of countries.International Journal of Entrepreneurial Behavior & Research. Gao, J., Guo, Z. andXiao, Y., 2021, May. Researchon Cultivationof Innovationand Entrepreneurship Ability of Applied Talents under the Concept of" New Engineering". In2021 2nd International Conference on Computers, Information Processing and Advanced Education(pp. 757-759). Li, A., Wen, C. and Yu, J., 2021. Study on the Value Dimension and the Integration Path of IdeologicalandPoliticalEducationinCollegeStudents'Innovationand Entrepreneurship Education.International Journal of Social Science and Education Research,4(9), pp.496-501. Yao,W.,Zhang,Z.andMu,X.,2020.ResearchonImprovementofInnovationand Entrepreneurship of University Students Based on Studio Cultivation with Tutorial System.International Journal of Social Science and Education Research,3(8), pp.190- 196. Online: How to Conduct a Market Analysis in 4 Steps — 2022 Guide, 2021. [Online] Available Through: <https://www.liveplan.com/blog/market-analysis-in-4-steps/>