Innovation and Entrepreneurship: Business Plan for an Italian Restaurant

This project report defines a new business plan and strategies for operating a successful Italian restaurant in London. It covers the business idea, industry profile, business model, differentiation, challenges, marketing, and more.

INNOVATION AND
ENTREPRENEURSHIP

EXECUTIVE SUMMARY
The project report aims to define new business plan and define strategies which will be
opted by the entrepreneur for operating a successful business in this changing competitive
scenario. The report is based on different stages which are necessary for an entrepreneur to
identify and execute plan after identifying such factors. The report defines the business idea,
profile of industry, business model which will be followed by the entrepreneur, point of
differentiation which will make the business unique from other existing business in the industry,
challenges which will be faced by the company and how the venture will market their products
and services by using effective marketing mix technique.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
BUSINESS IDEA........................................................................................................................4
INDUSTRY PROFILE................................................................................................................5
BUSIENSS MODEL...................................................................................................................6
POINT OF DIFFERENTIATION...............................................................................................7
CHALLENGES...........................................................................................................................7
CUSTOMERS.............................................................................................................................8
MARKETING.............................................................................................................................8
COMPETITOR ANALYSIS.......................................................................................................9
SOURCE OF FUNDING..........................................................................................................10
INTELLECTUAL PROPERTY................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the ability to establish, develop and operator new corporation.
Entrepreneurial vision is a key component which helps in determining changing business
environment which can help business venture in making decisions that can create benefit and
advantages for the organisation. Innovation and entrepreneurship are interlinked as an
entrepreneur use their innovative ideas for developing a business which can help in gaining
competitive advantage and maximize the profits (Ferreira, Fernandes and Ratten, 2017).
Business venture is the formation of a new business enterprise which is developed after
identifying the market trends related to the business industry in which the new venture will
operate. The report aims to define the business plan through which they can create a new
business venture and identify the factors which can influence the business environment. The
report will also define a strategic marketing plan and helps in identifying competitors through
competitor analysis technique.
TASK
BUSINESS IDEA
The business plan detailed in this project report is for the establishment of an Italian
restaurant “The Diners Club”.
The Italian restaurant will be introduced in the most famous streets of London, Bakers
Street which will be serving different varieties of Italian dishes. The restaurant will use organic
raw material which will help them in maintaining the quality of their dishes and the business
venture will be focusing on delivering quality customer service and high quality hygienic food
products that can meet their demands. The restaurant will also offer dine-in, take away and
online ordering services which will help them in enhancing business growth and cover a wide
area of market share.
Location- 221, Baker Street, London, UK
Products- The products which will be offered by the café are listed in the menu which has been
discussed below:

The Diners Club
MENU
Starter
Rocket and Parmesan Salad
Baked Mushroom with Mozzarella
Mains
Pollo al Mattone
Courgette Fritto
Pasta
Penne Arrabbiata
Rissotto Pollo Funghi
Lasagne Al Forno
Pizza
Pepperoni maximo
Quattro Formaggi
Dessert
Pannacotta
Gelato affogato or ice cream
Services- The café will offer dine-in, take-away services and online ordering services through
which they can meet the demands of their customers and build their brand image in the industry
and also help the business in attracting more customers that can help the business venture in
gaining a competitive advantage.
INDUSTRY PROFILE
Italian food industry has continuously grown and this opportunity will help in operating
in the industry and sustaining for longer period of time span. The Italian food industry has been
rapidly changing and by bringing innovation and change to the existing recipes will help the
venture to sustain for longer period of time span in the industry (Galindo-Martín and Méndez-
Picazo, 2020). As per the incline in demand for Italian food has rapidly increase and this has

covered wide market share. The Italian food industry has been most popular restaurant type in
UK and it is one of the major segment of food delivery industry and overall food industry.
BUSIENSS MODEL
Business model is a plan of action which supports business in forming strategies and
ensuring effective execution of all strategies that can help in gaining competitive advantage. The
business model which is used by Italian restaurant is discussed below-
 Pricing strategy- The pricing strategy of the business venture is cost-plus pricing
strategy. This strategy is based on the selling price of goods and it involves a fixed
percentage of profit that can help a business in generating higher revenues and maximize
their profit. By using this cost structure, the business venture will be able to add a markup
to the products original unit cost and create a final selling price which will involve profit
and through this business can maximize their profits (Hatef, Sharfstein and Labrique,
2018).
 Resources- The resources from raw material to financial resources which will be used by
the organisation will be continuously monitored and controlled through which the
business venture can make optimum utilization of all resources and avoid wastage.
 Services and channels- Business venture will use online ordering as well as offline
mediums such as dining and takeaway services. The venture will also use social media
platform by which they can promote their products and services and attract more
customers.
 Activity-The daily operations of business venture will be planned strategically which will
help them in making effective execution of all plans that can be a helpful approach for
meeting customer demand and satisfaction. Such operation management strategy will
support business in performing all activities effectively which will also support in
creating and maintaining their position in the industry (Hillner, 2021).
 Customer relation- The startup will aim to maintain effective customer relationship by
taking regular feedbacks and while listening their opinions regarding the products and
services of the organisation and valuing them. Such strategies enabled business venture to
create and maintain and effective customer relation that can enhance customer
engagement and support business in creating a good brand image in the industry.

POINT OF DIFFERENTIATION
The point of differentiation or USP of the business venture will aim to target customers
from middle class to high class groups by offering premium quality of products and services. The
main focus of the cafe will be on maintaining hygiene level, cleanliness, effective customer
service, quality, quantity of food and focusing on delivering quality customer experience which
will help them in maintaining a cordial interpersonal relation with the customers that will lead to
some potential and loyal customers to the restaurant (Hisrich and et.al, 2016). The restaurant will
follow competitive and cost-plus pricing strategy which will make them sustain for longer period
of time in the industry as there are several other competitors who are currently operating in the
food industry and serving Italian food. Infrastructure of cafe will be based on simple and decent
theme and such decency deliver utmost customer satisfaction. Due to changing business
environment and technological advancement, the cafe will also use digital payments and
transactions virtual help customers to make digital payments and this approach will make them
unique and more customer friendly.
CHALLENGES
There are various challenges which were faced by the business venture while they were
operating in the industry, some of these challenges which were faced are discussed below:
 Raw material- The management of raw materials was one of the challenges which was
faced by the business venture as due to ineffective allocation of resources was major
factor which made business face wastage of raw material and involved high cost.
 Management of resources- Due to not being able to manage all financial and non-
financial resources, this affected the performance and ability of the business to regularly
meet the demands of their customers.
 Pricing- The pricing strategy of the business was competitive pricing strategy which
affected the performance and position of the company, for facing such challenges the
business venture changed their pricing strategy to cost plus pricing strategy (Jay and
Gerard, 2015).
 Lack of customer retention- Lack of customer retention has been one of the biggest
challenge which was faced by the business venture and this also affected the profitability
and success of the restaurant. As there are many other restaurants which are operating in

in the same industry, this offers a wide variety and choice for customers to choose other
restaurants and such approach of customers affect the profitability of business venture.
CUSTOMERS
The business venture aims to target middle and high class families. The venture will
divide the market into three categories which involves- dine in, takeaway and online services.
The restaurant will focus on targeting three populations which involves- individual, families and
take-away services, where they can meet and attract more customers that can lead to generate
higher revenues and more profitability for the business.
MARKETING
Marketing mix is marketing strategy which have the business to improve their sale in the
current dynamic business environment. The four strategies which are involved in marketing mix
strategy are- price, place, product and promotion (Lee, Hallak and Sardeshmukh, 2016). In
relation to the business venture, the marketing mix is discussed below:
 Price- As restaurant will target middle and high class customers, the pricing strategy is
cost plus strategy which will help them in offering products and services at reasonable
and moderate prices where they can attract and retain more number of customers. This
strategy will also help in dealing with customers and gain maximum benefits by offering
various discounts that can attract more customers and enhance their brand image in the
industry.
 Product- The venture will define their products and services and clearly provide
information regarding the dishes which are offered by the restaurant in their menu as this
will help customers to gain better insight of the services provided by the business venture
(Lu, C. and Zhu, H., 2017). In relation to the above-mentioned restaurant, it can be seen
that the venture will offer various products which includes- starters, main course, pasta,
Pizza and desserts such as- gelato, ice cream, pepperoni maximo, penne arrabiata, lasagna
Al forno and many dishes. All these dishes will be provided to customers with effective
presentation, sufficient quantity and by maintaining the quality which will help the
restaurant in meeting customer demand and maximizing profits.
 Place- This factor of marketing strategy plays a crucial role as it helps venture in
attracting more customers and generating higher revenues. In relation to the business

venture discussed above, the restaurant is operating in Baker Street of London which acts
as one of the most beneficial strategy, as it is famous street which will help the venture in
getting high customer engagement and it will help up restaurant in targeting customers of
their choice.
 Promotion- This marketing mix factor helps a business in forming effective marketing
and sales strategy which will enhance the profitability of the business and lead to increase
customer engagement (Mitra, J., 2019). In relation to the business venture, the restaurant
will use all social media platforms, connect with influencers and advertise through
newspapers. Such promotional strategies help the restaurant in targeting wider market
share. The business venture will also use promotion strategies such as attractive offers
and discounts for the customers which will make it customers centric process and build a
strong network of customers.
COMPETITOR ANALYSIS
Competitor analysis supports business owners in analyzing the trend and recognizing
competitors and rivalry among existing competitor’s firms that will have an adverse effect on the
business operations. It ensures that the organization's products meet current customer demands
and industry standards, enabling the company to gain a competitive advantage (Nieto and Mateo,
2020). By analyzing customer reviews and meeting the competition, competitor analysis also
assists the business in defining the benchmark and evaluating the growth of the business, as well
as identifying opportunities that will aid in business growth and identifying threats that can
hinder the growth of the firm. Competitor analysis helps in analyzing several factors of other
companies, some of these aspects and attributes are discussed below:
 Detecting possible competitors- Competitor analysis helps a business to identify the
potential and most possible competitors of the business venture which can create a
negative influence on the managerial activities and operations of new business venture.
This helps in determining who the competitors are and how these competitors can make
new business venture face challenge affect their profitability and their goodwill in the
industry.
 Determining pricing strategy of competitors- Identification of the pricing strategies
followed by rivalry companies plays a crucial role as by conducting a market research

this support business venture to effectively perform and set prices accordingly which can
make the business venture face high competition in the industry and sustain for longer
period of time span.
 Do effective research regarding competitive sale tactics- By identifying the sales
strategy process and mediums of the competitor companies, it will help the business
venture to collect valuable information that can be used for effective positioning of
products and services which are offered by the company itself and this will lead to
positioning products and services by targeting customers at right time and right location
(Sudrajat and et.al, 2018). Such research will help in meeting customer demands timely
and maintain the brand image in the industry.
SOURCE OF FUNDING
The source of funding and investment which was used by weather for opening a cafe in
London involves personal investments and venture capitalist. These two sources were the
mediums for capital investment in business and helped in opening and running the business
venture. Therefore, both of the sources of funding are discussed below:
 Personal investment- For starting the business venture, personal investment has been a
source for establishing a successful business venture in London. The individual
investment has been a source of funding, as I was saving for establishing this business
venture in London.
 Angel investor or venture capitalist- Angel investors or venture capitalist been a source
of investment for starting a business in London. These are the companies which offers
capital investment to small and start a business as they have accredited investors who use
their personal financial funds to invest in small businesses or startups (Todeva and
Ketikidis, 2017).
INTELLECTUAL PROPERTY
The approaches and strategies which were followed by the business venture for maintaining
the position in the changing business environment, the approaches which were followed by
venture are discussed below:
 Use of social media channels- By using the social media platform and different
mediums such as Twitter, Instagram and Facebook through which business venture was

able to attract more customers and spread awareness regarding the products and services
offered by the restaurant. With the help of using effective social media channels, business
venture can attract more customers through which they can also gain higher engagement
and promote the products and services offered by the venture.
 Promoting products and services with the help of influencers- Through promoting the
products and services with the help of influencers and posting contents on social media
platforms, it can attract more customers and gain more customer engagement which can
be an effective strategy for generation of higher revenues, profits and brand image
(Wagner ed, 2017). By collaborating with influencers and idols and posting content on
social media will be a tech friendly and effective approach for today’s business
environment as the venture can attract followers of influencers and can also gain
reputation globally.
 By using cost plus pricing strategy- By using cost-plus pricing strategy, the business
venture has focused on maintain the effective pricing strategy for the business through
which they can offer reasonable prices and meet customer demands and maintain the
profits. By using this pricing strategy, the business venture will always be able to
maximize their profits and thus, such strategy will help them in sustaining in the industry
for longer time span.
CONCLUSION
In a nutshell it can be summarized that, entrepreneurship is an ability of a person which is
inherited and such an ability to take risk and start a new business venture with an innovative idea
as an individual to bring something new to the market or introduce existing product with
innovation that can attract customers to the business venture. There are various marketing
techniques such as marketing mix strategy, which helps a business to identify the changing
external environment and how business can gain competitive advantage from forming strategies.
Through competitor analysis, it also helps the organisation in identifying the competitor
companies and how such companies will influence positively as well as negatively on the
revenues and profits of the new business venture.

REFERENCES
Books and journals
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competitiveness: what is the connection?. International Journal of Business and
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Entrepreneurship: Feedback Effects. In Analyzing the Relationship Between Innovation,
Value Creation, and Entrepreneurship (pp. 1-20). IGI Global.
Hatef, E., Sharfstein, J. M. and Labrique, A. B., 2018. Innovation and entrepreneurship:
harnessing the public health skill set in a new era of health reforms and
investment. Journal of Public Health Management and Practice. 24(2). pp.99-101.
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