Business Plan for Eat & Treat: A Startup in the Food and Beverage Industry
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Added on 2023/01/04
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This business plan focuses on the strategies and operations of Eat & Treat, a startup in the food and beverage industry. It includes an executive summary, industry analysis, operations and management team plan, marketing plan, and financial plan.
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ENTREPRENEURSHIP 1
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Table of Contents INTRODUCTION.......................................................................................................................................3 MAIN BODY..............................................................................................................................................3 Executive Summary.................................................................................................................................3 Industry Analysis.....................................................................................................................................3 Operations and Management Team Plan.................................................................................................4 Marketing plan........................................................................................................................................5 Financial Plan...........................................................................................................................................5 CONCLUSION...........................................................................................................................................7 REFERENCES............................................................................................................................................8 2
INTRODUCTION In this competitive business environment every business unit want to grow and develop in the marketplace and for that they need to come up with the new and innovative ideas to attract the large number of customers (Parker, 2018). The innovative and creative ways of carrying the business operations helps in improving the brand image of the company in the marketplace. Market research and analysis provides support in order to identify the present trend in the marketplace and customer needs and desires. The report is based on business plan in which organization chosen is Eat & Treat. The organization is operating in food and beverage sector in UK with the main objective of improving its market performance. MAIN BODY Executive Summary The report is based on the business plan of new startup business named as Eat & Treat which is belonging to food and beverage industry. The business is small and is operating in London market only. The company is identifying the various methods and strategies which they can use in order to make their brand name in marketplace. The level of competition is quite high hence they need to use various creative and innovative ways to attract the potential customers. The focus of the company is to establish its brand name in UK market and is using various methods to attract the potential customers. Industry Analysis Eat and Treat is a newly opened business belonging to food and beverage sector located in London, UK. Moreover in order to make people aware about their presence they are selling food products in the marketplace (Kirzner, 2015). They provide delicious home baked food to its potential customers and provide relaxing environment in their licensed café. The business is established at small scale and focusing on the London market. In order to grow their business company is introducing new item in its food range which is Pizza loaded Pasta. The special quality of this food type is that is Pizza full of pasta and cheese in order to provide two different taste in one product. This new item would help in attracting new potential customers and help in increasing the sales and profit of the company. Moreover they are researching and evaluating the strategies of competitors with the motive to come with effective strategy to cover the large area of market. The evaluation of Porter’s five force model is been explained below- Competitive Rivalry- In context of the Eat & Treat they are operating in the industry where the level of competition is high. In order to maintain its position in the marketplace they are focusing on sustainable differentiation strategy within its range of products in order to provide tough competition to its competitors. 3
Supplier Power- In food and beverage industry the raw material is been acquired from different supplier in order to provide variety of different taste to its customers. It is important for Eat & Treat to make the strong relation with its suppliers so that they do not face problem in acquiring raw material and able to increase its profits in the marketplace. Buyer Power- In marketplace buyers pay important role as they focus on buying best product at the minimum possible price. Ear & Treat is facing problem as the bargaining power of the buyers is quite high as they have to take step in order to satisfy the needs and design of customers at the minimum possible price. Threat of substitution- There are many other companies which are providing the similar products to the customers so Eat & Treat need to focus on providing quality products and services to its customers. Threat of new entry- In food and beverage industry the threat of new entry is high as with the increasing demand of customers new businesses are coming up. In order to maintain its position in the marketplace they have to provide quality food products to its customers at affordable prices with the motive to increase the profit. Operations and Management Team Plan The operational plan for a business is been developed on the bases of customers need and preferences with the motive to satisfy them (Venkataraman, 2019). In context of Eat & Treat they are providing eating area to its customers where they can set and have their food. Hence its operational plan consist of such type of services. The customers can simply order its food from the menu offered by the restaurant and the staff members would provide the quality services to the customers. They are providing the authentic taste of food to its customers as most of the material they are forming on their own that is have their own pasta making machines. The outlet is located in Regent Park as it is one of the popular and crowded place in London and they are providing online services to its customers who find it difficult to visit the café. Customers can order form the company website and other food mobile base applications. The management team of the company is efficient and effective as they have small staff where the chefs are making good food and the staff is providing quality services to the customers. Moreover the issues or quires of the customers are consider and due attention is been provided in order to make them satisfied and happy. The company need to work on its weaknesses which are Eat and Treat is totally new in market because of which less clients know about its administrations. This become a significant shortcoming before organization at commercial center. Competitors of Eat and Treat has solid clients base because of its assortment of product offering. They should work on converting their weakness into strength by building effective and productive team. Moreover by improving its management system they would be able to carry it business operations in most effective and efficient manner (Hjorth, Holt and Steyaert, 2015). The efficient team management helps in accomplishing the desire goals and objectives of the business. In context of Eat & Treat they have strong team which is working in coordination with each other in order to accomplish the desire results. They focus on building strong relation with the team members and consider them as the part of the business where in the business decisions the staff members are included. 4
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The team members are free to put their viewpoints and provide suggestion in business operations in order to improve the performance of the business. These small steps help the business in accomplishing the success and to make their brand name in marketplace. Marketing plan Marketing strategy of Eat & Treat is to focus on improving its brand image on the marketplace by providing wide range of different and delicious food to customers. It help in attracting the new customers as they are providing good quality food with great taste. Moreover they are analyzing the need of customers and the market conditions in order to formulate better strategies to cover the large share of market (Burns, 2016). The company is positioning its products with unique and core values in order to strong their brand. Moreover they are taking step to visuals its existence in market before positioning their business against competitors. The name, logo design of the restaurant is having meaning behind and they are taking support of media in order to position itself successful in the food and beverage industry. The company is positioning itself in the fast food chain in the UK market where they are serving good quality and delicious fast food like pizza, pasta and many more to its customers. The company is taking step to make its product different from that of competitors by providing new type of food with different flavors and taste. There are various well established brands in the food and beverage sector hence they have to face high competition in the marketplace. The company is mainly targeting those customers who prefer fast food and understanding the needs and desires of customers in order to satisfy their needs (Carraher, Welsh and Svilokos, 2016). They are able to increase its number of customers by providing them different and innovative dishes which is not provided by its the competitors. The price used by the company is quite affordable as they are new in the market so initially with low pricing strategy they are covering the large market area. Mainly they are targeting teenagers who can spend less amount hence they are providing different types of dishes at minimum possible prices. The company is using various promotional strategies in order to make people aware about its presence and the range of food dishes they are providing with good taste and different flavors. They are using social media marketing to attract large number of customers that is promoting their business on various popular social media channels such as facebook, instagram amd many more. With the help of their own website they are engaging people with help of visual context and the new dishes. The sales process of company is they are selling their food products in their own outlet and also providing the online services to its customers. From their website and popular mobile application the customers can order their favorite food. The distribution strategy used by the company is quite simple as they are serving in the London market only so with the help of their delivery partners and with the collaboration with other food service mobile application they are distributing their food product to customers (Siqueira, Webb and Bruton, 2016). Most of the raw material is been made by them hence have less number of suppliers and able to effectively maintain strong connection with them. 5
Financial Plan Eat & treat restaurant is introducing new dish in its menu that is pizza loaded with pasta and its statement for financial requirements is explained below- Business start up cost- It is fundamentally that cost which includes the underlying fuel for firing up a business and its activities. In the given business, beginning expense is separated in after portions: Tools = £ 2000. Essential material = £ 1500. Expenses (will be acquired on rent) Security deposit = £ 100. Advance rent for 1 month = £ 100. Sales Estimated cost = £10 per unit. Selling price per unit = £50. Fixed cost = £ 1500. Variable cost = £3 per unit Based on examination of market patterns and different elements that may affect the deals. It is guage that eatery will have the option to produce a business identical to 200 units in a month. Based on this estimating following is a cost explanation: ParticularsCalculationAmount Sales£50*200£10000 Less: variable cost£3*200£600 ContributionSales-variable cost£9400 Less: fixed cost£1500 Less: estimated cost of sales£10*200£2000 Net profit£5900 From the above table, following is productivity and break-even analysis examination, Break-even analysis examination It is essentially that volume of deals, at which the organization has no benefit and no misfortune. It is a nonpartisan circumstance. To acquire benefits, organization needs to outperform this purpose of deals. In given case, breakeven point is: 6
Breakeven point= Fixed cost/ (selling point – variable cost) = 1500/(50-3) = 31.91 units or 32 units (approx.) Profitability analysis= from the above calculation, it has been identified that, company is earning profit on 168 units (200-32). Therefore, profit is earned on these units only. Net profit margin for the company = net profit / sales*100 = (5900/10000)*100 = 59% CONCLUSION From the above report it has been concluded that it is significant for organization to build up an unmistakable mission and vision prior to beginning another business. As it gives help with catching consideration of client towards its new product offering. In this there are different perspective that can be examined by organization is Macro climate investigation for which Pest examination will be utilized to dissect the outside factor that can be influence the organization. Furthermore, market and industry examination is likewise help in deciding the zone in which achievement can be accomplished in a viable manner. With the assistance of this, organization can produce bigger piece of the overall industry and simultaneously likewise support in commercial center from wait timeframe. 7
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REFERENCES Books & Journals Parker, S.C., 2018.The economics of entrepreneurship. Cambridge University Press. Kirzner, I.M., 2015.Competition and entrepreneurship. University of Chicago press. Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. InSeminal ideas for the next twenty-five years of advances. Emerald Publishing Limited. Hjorth, D., Holt, R. and Steyaert, C., 2015. Entrepreneurship and process studies.International Small Business Journal.33(6). pp.599-611. Burns, P., 2016.Entrepreneurship and small business. Palgrave Macmillan Limited. Siqueira, A.C.O., Webb, J.W. and Bruton, G.D., 2016. Informal entrepreneurship and industry conditions.Entrepreneurship Theory and Practice.40(1). pp.177-200. Carraher, S.M., Welsh, D.H. and Svilokos, A., 2016. Validation of a measure of social entrepreneurship.European Journal of International Management.10(4). pp.386-402. 8