Lean Start-Up for Fresco Restaurant: Business Objectives, Value Proposition and Business Model Canvas

This proposal outlines the lean start-up approach for Fresco Restaurant, including business objectives, customer value proposition canvas, and lean business model canvas. It also includes a detailed development plan covering marketing, information technology, human resources, and financial planning.

Entrepreneurship
Development

Contents
Contents...........................................................................................................................................2
INTRODUCTION TO LEAN START-UP.....................................................................................1
BUSINESS OBJECTIVES..............................................................................................................1
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS....................................2
VALUE CAPTURE: ‘LEAN’ BUSINESS MODEL CANVAS.....................................................4
DETAILED DEVELOPMNET PLAN............................................................................................6
Marketing plan.............................................................................................................................6
Information technology plan........................................................................................................7
Human resources and organisation plan......................................................................................8
Financial plan...............................................................................................................................8
CRITICAL EVALUATION OF PLAN..........................................................................................9
SUMMARY.....................................................................................................................................9
REFERENCES..............................................................................................................................11
APPENDICES...............................................................................................................................12

INTRODUCTION TO LEAN START-UP
Lean start up is an approach to establish a new enterprise along with launching a new
product which consumers demonstrated they desire. It enables recovery from losses or failure
than traditional methods related to developing a commodity or service (Allen, 2022). Fresco
Restaurant is new business concept concerned with eating healthy along with enjoying food at
same time. The business is established for food lovers that are undertaking attempt for healthy
lifestyle, maintaining or losing weight. It is a creative business idea which entails mobile app
which calculates amount of calories a person can eat on the basis of their age, height along with
weight. Once all these information or details are inserted by an individual, the app of the
business will offer people to select 1 to 5 meals as well as they can come collect or make pre
orders from full week. The idea of healthy fast food business, namely, Fresco Restaurant is a
lean business opportunity because there are restricted number of such business in the market.
The CEO of new business is responsible for making top level decisions, accountable for overall
performance, leading development and implementation of all strategies, etc. Moreover, with
meticulous planning together with moderate investment, entrepreneurs can plan to open healthy
fast food restaurant as it is highly profitable when planned as well as managed in proper manner.
The assessment covers business objectives for first three operational years, customer
value proposition canvas and lean business model canvas. It further entails detailed business plan
and evaluation of lean start up business plan.
BUSINESS OBJECTIVES
In a business, objectives assist in decision making of future operations (Balocco, and et.al
2019). In aspect to Fresco Restaurant, business objectives show stakeholders, including investors
and employees, directions the establishment is planning to take. Establishing business objectives
is key for a lean startup as it can assist in enhancing market share, making it easier to control
costs, strengthen relationship among superiors and subordinates, enhance worker output, etc. In
aspect to Fresco Restaurant, business objectives devised by CEO are mentioned underneath:
 To attract larger number of customers for generating higher revenues.
 To offer healthy fast food services and healthier tasty food.
 To enhance profits by 5% each year for coming consecutive three years for making
proper arrangement of required funds to carry out desired tasks.
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For Fresco Restaurant, projected sales volume for first year is approximate 2000 units. It
is predicted that it will enhance in upcoming years by 10% per annum. Calculations
related to sales, profit and profit margins for Fresco Restaurant are below:
Particulars First year Second year Third year
Units sold 2000 2200 ( 2000 + 10 % ) 2420 ( 2200 + 10 % )
Sales ( 30 Per unit ) 60000 66000 72600
Less: cost ( 10 per
unit )
20000 22000 24200
Profit: 40000 44000 48400
Profit margin:
Profit / sales * 100
40000 / 60000 *100 44000 / 66000 * 100 48400 / 72600 * 100
66.67 % 66.67 % 66.67 %
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS
The value proposition canvas includes pains as well as gains which the customers will
experience from product and services of company addition it attracts target customers to catch
goods and services. It is made by identifying main issues of customers, plus point of existing
product and services that the organisation provides them (Bortolini, and et.al 2018). Moreover,
entrepreneur of Fresco Restaurant analyses the value of their plus points in order to meet
expectations and needs of customers. Further they conduct comparison of their product
effectiveness with problems of customers to provide value to them. In Fresco Restaurant, they
provided various product and services such as vegan, organic and customised food in order to
promote healthier life style among customers. They also offer variety of services such as online
pre order or on the spot order by using mobile apps, take away services, online and card payment
for the people who have busy life schedule.
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Figure 1: Value proposition canvas for Fresco Restaurant. 2022
(Source: Value proposition canvas for Fresco Restaurant. 2022)
Customer segment Customer jobs- In Fresco Restaurant, customer jobs are they offered many innovative or
unique product and services such as online order, cash and card payments for working
and busy schedule people. Also, they encouraged to maintain a healthy lifestyle among
customers to provide vegan food. Pains- The various problems and pains of Fresco Restaurant are they suffered from
shortage of time to make customised food as per taste and demand of people. Along with
that, employees feel demotivated to provide better services as absent of demand in
customer for low fat and carbs food (Caldwell, 2020). Gains- Plus points and gains of Fresco Restaurant is they promoted and maintained
healthy lifestyle by offering low fat and vegan food, along with that they provide healthy
fast food as compare to regular unhealthy fast foods for better life of people. The main
motive to Fresco Restaurant is promote healthier mind and happier life among customer
so they can enjoy healthy or tasty food without gaining weight.
value proposition Product and services- In Fresco Restaurant, it includes low fat tasty meals, snacks and
desserts, food prepared specifically for every customers based on weight, height and age,
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meal prepared with organic& raw healthy ingredients as well as vegan or gluten free
products to maintain better health of customers. Gain creators- In Fresco Restaurant, entrepreneur offers low fat tasty snacks and desserts
to attract large number of fitness freak customers. Also, they provide many beneficial
services to customers such as pre order and order online through mobile app and eat or
take away services also available at store for busy schedule people.
 Pain relievers- Fresco Restaurant provided their services in order to reduce problems
and pain of customers as they promoted and committed to provide healthier lifestyle.
They also offer beneficial services like fast delivery services at home by taking order
from online app as well as prepared food as per customer demand by using finest organic
ingredients to make life of customer better and diseases free.
VALUE CAPTURE: ‘LEAN’ BUSINESS MODEL CANVAS
For a business entrepreneur it is essential to work on lean business canvas model as well as
it focuses on key activities, key partners will be analysed and explored in it addition to value
proposition will be also part of this model (Cruz and et.al 2020). The channels, relationship of
customers, key resources, market segmentation will be the main area of focus. Entrepreneur of
Fresco Restaurant used this tactical tool to take proper direction to put their business idea into
action. Mentioned below is the discussion and analysis for lean canvas model in context to
Fresco Restaurant-
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Figure 2 Lean canvas model in context to Fresco Restaurant. 2022
(Source: Lean canvas model in context to Fresco Restaurant. 2022)
 Key partners- Key partners of Fresco Restaurant includes suppliers of raw and organic
food, suppliers of coffee beans, business investors, suppliers of cooking tools, organic
ingredients delivery company, espresso roasted coffee as well as pro cook and MBS
wholesalers which helps in conducting day to day working. Key activities- Business activities of Fresco Restaurant includes establishing business
ideas of Fresco, creating food and drinks menu, fixing delivery and order methods,
designing mobile app, taking orders from customer. Further, they conduct various
activities like preparing and serving food, making most suitable marketing plan as well
as taking payment from customers in order achieve goals effectively (De Cock, Bruneel,
and Bobelyn, 2020). Value proposition- Value proposition of Fresco Restaurant consists smart healthy eating,
fresh raw organic ingredients, low fat tasty food and dessert, fresh fruit juices,
smoothies, iced tea as well as hot beverages to meet customers demand. It also includes
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fast services like pre order or order online by mobile app or with a staff member in
restaurant as they offer click and collect services to add value to customers. Customer relationship- In Fresco Restaurant, they develop strong relationship with
customers by implementing a loyal customers strategy like loyalty cards with many
offers and discounts such as by 5 meal and get 1 free. Channel- In Fresco Restaurant, marketing and distribution channels includes samples
distribution, social media and radio ads, words of mouth, online website, developing
mobile app and offer sample products to relatives, customers and public in order to
attract them towards their restaurant. Market and customer segmentation- In Fresco Restaurant, it includes people who
follow healthy life style, fitness or gym addicts, persons who looking for change in their
diet as well as office workers, tourists, students and many people which live in the area
near restaurant. Key resources- Key resources of Fresco Restaurant consists high quality ingredients,
main location in market, valuable equipment, mobile app or website, well managed
kitchen as well as well manned or skilled staff which foster the growth of company. Cost structure- Cost structure of Fresco Restaurant involves many activities and items
which are rent for business premises, wages and salary of staff as well as fund invested
on equipment or kitchen tools in order to provide best product and services to increase
experience of customer.
 Revenue streams- The main source of revenue of Fresco Restaurant is they offers high
quality fresh low fat food and drinks to customers so they are ready to pay fixed amount
of these item. Also, they generate revenue by partnership with universities and offices
through rending online order or payment and home delivery services to them.
DETAILED DEVELOPMNET PLAN
Marketing plan
In the marketing plan the working people with busy lifestyle as well as customers who are
fitness freak will be most targeted segment (Faltin, 2019). So the effectiveness of marketing
plan will enhance as well as it will benefit whole business and there will be more possibility for
development and growth of company. In order to promote healthy lifestyle and unique services
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offered by Fresco Restaurant it is important to make effective marketing plan as well as
implement it effective way by providing better training programme to staff for increase their
performance. The marketers of Fresco Restaurant can use digital and social marketing tools by
gaining proper knowledge about market and customers trends due to its more popularity among
people in nowadays which leads to increase in customer base, market share, brand value and
profitability.
Operational plan
Every stakeholders of Fresco Restaurant will get positively influenced with operations and
services due to better quality low fat vegan food as well as very fast and online services which
assists them to maintain their health. It is more important for management of Fresco Restaurant
to make effective business operational plan because every activities in business is directly related
with health of people so staff member must highly experience and skilled. As entrepreneur must
provide training to their kitchen and serving staff in order to earn trust of customers in order to
increase customer base for the success in long run (Ojasalo,and Ojasalo, 2018). In Fresco
Restaurant, proper communication and coordination between employees and service providers so
that effective management of outdoor and indoor activities will be conducted from it.
Operational plan make sure that customers will get better quality food and services to increase
their experience as well as maintain healthy lifestyle. Every employees will get clear duty and
responsibility in order to conduct effective performance for the achievement of desired goals of
company.
Information technology plan
It is necessary for the business organisation to use cost effective social media tools in order
to enhance their customers base. The use of social media is not only cost effective but has high
reach in market. It helps Fresco restaurant to enhance the customer base and attract them towards
the business. Most of the customers have presence on social media platform and there is need for
the restaurant to attract the customers (Shepherd, and Gruber, 2021). The restaurant also keeps
records of the information related to customers and analyse the data. By understanding the trend,
they are able to serve the customers effectively and enhance their experience.
There is need of using latest technology as this helps them to gain advantage over the
competitors (Rodríguez, and et.al 2019). In today’s time, the customers are attracted towards the
firm that use latest technology to serve them. It creates positive image of the company in market
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and builds trust of the firm. It is also analysed that the use of latest technology enhances the
safety and security of the restaurant. This enhances the customer base of the company and are
able to retain the customers for longer duration of time. In present time the use of latest
technology is important and beneficial for growth and success of business.
Human resources and organisation plan
Financial plan of business is crucial for company as it they need to maintain it accurately to
effectively manage available funds in all activities. It has the power to directly affect
stakeholders of business as they are invested in company to gain profits. Financial plan of Fresco
Restaurant includes making of profit and loss statement as well as balance sheet to assess income
and expenses of restaurant. Whereas, predicting sales in advance helps restaurant to better
manage its funds in certain activities (Somi, 2021). Financial plan also includes comprising
every expense related to insurance, rent, marketing activities, food suppliers and equipment.
Finances putting for marketing activities should clearly identify firms purpose behind it and how
much it evaluates to earn in exchange for that. The costing for equipments maintenance are also
important for company as it leads to increasing cost if not handled properly.
Financial plan
Human resource are one of the important aspect of organisation, thus it makes it essential for
management to have impelling human resource plan. Human resource of Fresco Restaurant
should be very skilled so that they can effectively communicate with customers and leads to
increase their experiences. Recruitment practices of workforce should be taken by evaluating
skills of employee and assessing whether they will be successful in delivering desired results or
not. To provide familiar and healthy environment to employees, Fresco Restaurant will adopt
functional structure where every employee will be assigned with activities according to their
skills and report to one specific manager. Restaurant management will strive to maintain balance
between staff employed on different terms and conditions. The managers will specify duties,
roles and responsibilities of each employee at time of hiring to minimise overlapping of work
(Tanev, and et.al 2019). Fresco Restaurant will provide proper training and development
activities to each of its employees so that they can gear up them to face any kind of situation.
Management will encourage human resource to properly communicate and coordinate with
restaurant to maximise its efficiency. Impelling human resource plan can result in great profits
for Fresco Restaurant which will also improve brand recognition in market. Maximise customer
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satisfaction and effectively carry out restaurant practices can result in achieving competitive
advantage for Fresco Restaurant. Management will frequently monitor and track that all the
efforts of human resource are projected towards one specified direction only which will assist
Fresco Restaurant to attain their predetermined goals.
CRITICAL EVALUATION OF PLAN
It has been evaluated that the lean startup business plan is developed considering future
chances of growth. With this plan, Fresco Restaurant can achieve success in meeting needs and
choices of target population following healthy lifestyle which do not have time for cooking food
from scratch because of busy work life. With growing obesity pandemic, more and more number
of people are looking towards healthier options at the time of dining out or take away (Yang,
Sun, and Zhao, 2019). The business with offering heathier restaurant menus can leverage habits
of millennials that outspends on offerings. Fresco Restaurant needs to develop its menu to offer
consumers clean eating, more low carb along with gluten free options. It also need to support
local organic growers addition to other suppliers. Rise of popularity of healthy food is been fast,
it is analysed by entrepreneur of Fresco Restaurant that changing values of consumers drives
important function in shifting of healthy eating. Fresco Restaurant needs to focus towards
changing requirements of customers, including reliance on day part occasions, offer more
number of plant based dishes, variant of healthy drinks and so on. Through providing current
services to target audiences, managers will understand significance of it in existing
circumstances which will give higher chances of growth in future.
SUMMARY
The business idea of Fresco Restaurant is profitable as it offering healthy food yields higher
profit margins. It is because nowadays, people are demanding more of healthier dishes so to
follow and maintain healthy lifestyle. It is concluded that there are limited number of restaurants
at Birmingham that offer healthier options. The healthy fast food business would be new concept
of takeaway in the location that can bring attention of vast investors to make investment
decisions and attain higher returns that shows that it is investable business opportunity. As there
are not many of restaurants offering healthy fast food, Fresco Restaurant is competition beating
business through opening more branches and achieving higher market share. Investors devise
decisions to make investment in Fresco Restaurant as it positions healthy food that make ample
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number of business sense. If the start-up business of healthy fast food offering never existed, the
world would worse off as plenty of individuals would lose source of happiness. With heathy fast
food products, the business is able to meet needs of people that lacks time to cook and also help
them to maintain their weight as well as develop heathy lifestyle.
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REFERENCES
Books and Journals:
Allen, G .J., 2022. Concepturealize™: a new contribution to generate real-needs-focussed, user-
centred, lean business models. Journal of Innovation and Entrepreneurship. 11(1). pp.1-
33.
Balocco, and et.al 2019. Lean business models change process in digital entrepreneurship.
Business Process Management Journal.
Bortolini, and et.al 2018. Lean Startup: a comprehensive historical review. Management
Decision.
Caldwell, G., 2020. Lean Analytics: How to Use Data to Track, Optimize, Improve and
Accelerate Your Startup Business (Vol. 1). Alakai Publishing LLC.
Cruz and et.al 2020. Identification of key performance indicators in project-based organisations
through the lean approach. Sustainability. 12(15). p.5977.
De Cock, R., Bruneel, J. and Bobelyn, A., 2020. Making the lean start-up method work: the role
of prior market knowledge. Journal of Small Business Management. 58(5). pp.975-1002.
Faltin, G., 2019. Brains vs Capital: Entrepreneurship for Everyone Lean, Smart, Simple.
Ojasalo, J. and Ojasalo, K., 2018. Lean service innovation. Service Science. 10(1). pp.25-39.
Rodríguez, and et.al 2019. Advances in using agile and lean processes for software development.
In Advances in Computers (Vol. 113, pp. 135-224). Elsevier.
Shepherd, D. A. and Gruber, M., 2021. The lean startup framework: Closing the academic–
practitioner divide. Entrepreneurship Theory and Practice. 45(5). pp.967-998.
Somi, T., 2021. Scaling social business models: a lean startup perspective (Master's thesis,
University of Twente).
Tanev, and et.al 2019. Lean and global technology start-ups: linking the two research streams. In
Managing Innovation: Internationalization of Innovation (pp. 199-239).
Yang, X., Sun, S. L. and Zhao, X., 2019. Search and execution: examining the entrepreneurial
cognitions behind the lean startup model. Small Business Economics. 52(3). pp.667-679.
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APPENDICES
Primary and secondary research
Elements Descriptions
Market size Market size of Fresco Restaurant is very big as the
innovation in it is very low.
Market growth Growth in the Fresco Restaurant is very high. It is because
people tends to order food that develops and maintain
healthy lifestyle.
Customer preferences Customers give preferences to innovative ideas as it attracts
them to improve their experience.
Customer segments The targeted segment of Fresco Restaurant includes people
following healthy lifestyle, fitness addicts, students, office
workers and tourists visiting Birmingham.
Segment size The size of segment of Fresco Restaurant is large.
Competitors Within Birmingham, there are no many of start-ups or
established ventures that offer healthy fast food options that
gives Fresco Restaurant low competition.
Key partners The key partners of Fresco Restaurant are suppliers of raw
and organic food items, business investors, delivery
establishments and many more.
Channels Mobile App, Social Media and official website of company,
samples, word of mouth and radio advertisements are
channels for Fresco Restaurant.
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Net Revenue or Sales forecast of Fresco Restaurant
Profit Margin of Fresco Restaurant
Cash Flow Analysis of Fresco Restaurant
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Cost Structure of Fresco Restaurant
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Break Even Point Analysis of Fresco Restaurant
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