Food Planet Restaurant Business Plan and Feasibility Report

This report provides a detailed analysis of a business plan for a restaurant named "Food Planet," focusing on its marketing and financial feasibility within the Australian market. The report outlines the business plan, including the restaurant's products (beverages and fast food with healthy options), target market (youth and children), and strategic location in a shopping mall. It delves into marketing strategies such as competitive pricing, targeted location selection, print media promotion, and competitive product analysis. A significant portion of the report is dedicated to financial feasibility, including break-even analysis, profitability projections over six months, and a detailed cash flow analysis. The break-even analysis identifies the minimum sales required to cover costs, while the profitability section forecasts potential profits and losses based on sales and expenses. The cash flow analysis tracks the inflow and outflow of cash to assess the financial health of the business. Finally, the report identifies challenges and suggests strategies to maintain business performance, concluding with an overall assessment of the business plan's viability.

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Project Head: Business Entrepreneur

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Executive Summary
This business report has been prepared to analyze the business plan of a restaurant and
further the marketing feasibility of the business plan has been analyzed through identifying
the marketing process and the marketing tactics of the business. More, the financial
feasibility of the organization has been analyzed to identify the performance of the business
in the market. Lastly, various challenges of the business have been analyzed and the
strategies have been suggested to the business to maintain the performance in the business.
Lastly, a conclusion has been given about the business plan.

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Contents
Introduction.......................................................................................................................3
Business plan....................................................................................................................3
Marketing strategies..........................................................................................................3
Price..............................................................................................................................4
Place..............................................................................................................................4
Promotion.....................................................................................................................4
Product..........................................................................................................................4
Financial feasibility..........................................................................................................4
Break up analysis..........................................................................................................5
Profitability position.....................................................................................................6
Long term goals and exiting strategies.........................................................................7
Financial evaluation and strategies...................................................................................8
Challenges and strategies..................................................................................................8
Conclusion........................................................................................................................9
References.......................................................................................................................10

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Introduction:
This report depict about a business plan and the financial and marketing feasibility of
a comapny. In this report, the performance of the finance and market has been evaluated on
basis of various strategies and techniques which would helot eh entrepreneur to make a better
decision about the implementation of the business. For this report, assistance has been taken
from various sources so that a better business plan could be made and the feasibility analysis
is also done in a good and proper manner.
Business plan is the blueprint of a new start up in which entire aspects and the related
factors are stated properly and it has been evaluated that what would be the products of the
comapny, where would the comapny sell it product, what would be the target market, how
much cost is required etc. at the same time, feasibility is a process which is done to identify
that whether the business would be able to meet all the expected requirement in the market or
in terms of finance or in terms of technology etc.
Business plan:
Business plan depict about a start up in the hospitality industry. This business plan has
been prepared to start a restaurant in the Australian market by the name of “Food Planet”.
This restaurant would be start in a shopping mall so that the footfall of the business would be
higher. The main products of this restaurant would be beverages and the fast food. This
restaurant would sell out the healthy choices in the food to its clients. Mainly, this business
plan would offer the high profit and more clients to the comapny. The business would focus
mainly over the youth and the children to enhance the target market (Ward, 2012). This
business plan mainly depict that the business would be started at the time of Christmas so that
the advertising and promotion of the company could be done in a better way. For the site
selection, it is important for the business to evaluate and analyze the competitors and the
products offered by the competitors (Cadez and Guilding, 2008).
Further, the business plan expresses that the process of implementing this business
would start from the month of the Oct but the sales of the restaurant would start from the
December and the sales of the food and the meal would enhance day by day. The fixed cost
of the comapny would be lesser as the less space is required by the restaurant to start up tie
business and labour of the comapny would also be lesser to manage the cost of the comapny.

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Marketing strategies:
For this business report, marketing strategies has been evaluated and it has been found
that how the business must be implemented in the market and set a better position in the
market and in the mind of the customers so that the better market position could be found
through the company. The following marketing strategies could be adopted by the comapny
to manage the marketing position and set a better market for the “FOOD PLANET”:
Price:
Firstly, the business is required to set the price of the food and its beverages in such a
manner that the entire market and opportunities could be grabbed in the market. The
comapny is suggested to adopt the competitive pricing strategy. This strategy depict that the
price must be set according to the market condition. This strategy would help the comapny to
grab more opportunities from the market (Simmonds, 2010).
Place:
Further, the business is required to set the business at a location from the entire
market and opportunities could be grabbed in the market. The comapny is suggested to adopt
the target strategy. This strategy depict that the comapny must start the business at the place
from where the target market could be grabbed easily (Shim, Siegel and Shim, 2011).
Promotion:
In addition, the business is required to set the promotional strategy of the food and its
beverages in such a manner that the entire market and opportunities could be grabbed in the
market. The comapny is suggested to adopt the print media to promote the business. This
strategy depict that the comapny could take the help of Flyers, newspapers, magazines etc. to
promote the business (Weaver, Weston and Weaver, 2001). This strategy would help the
comapny to grab more opportunities from the market.
Product:
Lastly, the business is required to analyze and set the products and the drinks in such
a manner that the competitive product could be offered in the market. The comapny is
suggested to do the competitive analysis and set the products list accordingly. This strategy

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depict that the product must be set according to the market condition (Hoque, 2002). This
strategy would help the comapny to grab more opportunities from the market.
Financial feasibility:
Financial feasibility is the process in which it is identified that whether the business
would be able to meet the entire expected requirement in the market or in terms of finance?
Would the profitability of the comapny be according to the expectation? (Hansen, Mowen
and Guan, 2007) How the performance of the comapny would would be in terms of finance
etc.
This feasibility study has been done to analyze and identify the performance of the
new business in the Australian market. According to this report, it has been analyzed that it is
required for every business to identify and analyze the financial feasibility so that the goals
and objectives of the comapny could be got easily.
Break up analysis:
Break up analysis is a study which is performance by the companies and the start up
to analyze the minimum sales which must be done to reach over a point where the loss and
profit of the comapny would be nil. It is the point where the company would not face nay
loss. At this point, the revenues and the expenses of the comapny are at equilibrium point.
This report explains the user about the minimum sales.
The calculations of breakeven point are as follows:
calculation of break even analysis
Total Per unit
Contribution $ 2,76,000 9.2
Fixed cost $ 1,80,000 $ 1,80,000
Break even 0.652173913 19565.2174
In amount In units
This breakeven point depict that the comapny is required to sell at least 19,565 units
of the meal and the food to the clients to reach over a point where the expenses and the
revenues of the comapny would be similar. This report depict that it becomes important for
every company to analyze this point (Bromwich and Bhimani, 2005).

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In this start up, the contribution of the comapny would be $ 2,76,000 and $ 9.2 per
unit. The fixed cost of the comapny would be $ 1,80,000 which depict that the comapny is
required to earn that much amount that the fixed cost could be covered and if the comapny
would sell more than 19565 units than the comapny would be able to earn profits (Garrison et
al, 2010). This depict that at the initial stage, comapny must be concerned about the
breakeven point but after a period of time, when this level has been achieved, comapny must
enhance the level of the sales so that the profits could be earned by the company.
Profitability position:
After analyzing the breakeven level, the profitability position of the comapny has
been analyzed that depict that once the comapny reach over a point where the expenses and
the revenues of the company has been equal, it becomes mandatory for the company to think
more and enhance the level of the profitability position (Davies and Crawford, 2011).
The calculation of the profits of the comapny in next 6 months is as follows:
Calculation of profit
Oct Nov Dec Jan Feb Mar
Total sales
$
1,35,000
$
1,35,000
$
1,35,000
$
1,35,000
Less:
Material 1 Cost 15000 15000 15000 15000 15000 15000
Material 2 Cost 14000 14000 14000 14000 14000 14000
Labour cost 15000 15000 15000 15000 15000 15000
Contribution
Less:
Fixed cost
$
55,000
$
25,000
$
25,000
$
25,000
$
25,000
$
25,000
Profit -99000 -69000
$
66,000
$
66,000
$
66,000
$
66,000
This profitability position depict that the comapny is required to sell more than 19,565
units of the meal and the food to the clients to enhance the level of the profits in the company.
This report depict that it becomes important for every company to make more profits after a
period of time (Damodaran, 2011).

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In this start up, the total sales of the comapny would be start from the December. The
fixed cost of the comapny would be different in the first month and from that $ 25,000 would
be paid by the comapny. The contribution of the comapny would be different from first two
months. According to the evaluation and the calculations, it has been analyzed that the total
profits of the comapny would be $ 96000 in 6 months of the comapny (Bodie, 2013).
Following table depict about the cash flow of the company:
Cash Flow analysis
Cash Flow Analysis
Oct Nov Dec Jan Feb Mar
Beginning cash
balance
-$
25,000
-$
1,24,000
-$
1,93,00
0
-$
1,94,500
-$
1,42,000
-$
89,500
Add: budgeted cash
receipts
$
67,500
$
1,21,500
$
1,21,500
$
1,21,50
0
Total cash
available for use
-$
25,000
-$
1,24,000
-$
1,25,50
0
-$
73,000
-$
20,500
$
32,000
Less: cash
disbursements
Material 1 Cost
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
Material 2 Cost
$
14,000
$
14,000
$
14,000
$
14,000
$
14,000
$
14,000
Labour cost
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
$
15,000
Fixed cost
$
55,000
$
25,000
$
25,000
$
25,000
$
25,000
$
25,000
Total
disbursements
$
99,000
$
69,000
$
69,000
$
69,000
$
69,000
$
69,000
Cash surplus
-$
1,24,000
-$
1,93,000
-$
1,94,50
0
-$
1,42,000
-$
89,500
-$
37,000
budgeted ending
cash balance
-$
1,24,000
-$
1,93,000
-$
1,94,50
0
-$
1,42,000
-$
89,500
-$
37,000
This depict the cash flow position of the comapny must be required to manage in a
proper manner. This depict that the financial feasibility of the company must be rectified.

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Long term goals and exiting strategies:
Further, the long term objectives and the strategies for achieving those objectives have
been analyzed. Through the business plan, it has been found that the main objective of the
comapny is to enhance the level of the sales, make loyal customers mad open franchises in
the country. The main function and the goal of the comapny are to enhance the level of the
profits and make loyal customers through offering them the best of the products.
For achieving the long term goals of the comapny, comapny is required to make
various new strategies sand polices such as promotional strategies, products strategies,
corporate social responsibilities, sponsorship, best taste, hygienic food etc. These strategies
would help the comapny to grab more market share and would help the comapny to achieve
the level of the objectives and the goals of the comapny (Horngren, 2009).
Further, it has been found that entry and exiting both are easy in a restaurant business.
If the “FOOD PLANET” wants to exit from the industry than it could easily exit from the
industry through sell out the shares of the restaurant to someone else or through winding up
the restaurant. It is the perfect competition market from where the entry and existing could be
done and no special strategies and policies are required to do the same (Kaplan and Atkinson,
2015).
Financial evaluation and strategies:
Through analyzing the above business plan, calculations, break even analysis, cash
flow analysis, profitability position etc, it has been found that the business would perform
better in the market. It would be easier for the comapny to reach over a breakeven point and
make extra profits from the market (Lumby and Jones, 2007).
The comapny is required to set a good strategies plan for the debtor’s receivable
collection as this is impacting over the cash flow of the comapny and due to which the cash
flow of the comapny is negative. Further, it has been found that the overall performance of
the business would be way better in the Australian market and the goals and objectives of the
comapny could be achieved easily and quickly.
Challenges and strategies:
Further it has been analyzed that various challenges and strategies could be faced by
the company. According to this business plan the financial and marketing feasibility of the

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company depict that the performance and the profitability position of the comapny would be
better. Though, it has been found that huge competition is there in the market in the
hospitality industry. It would also be tough for the entrepreneur to get the amount for the start
up (Moles, Parrino and Kidwekk, 2011).
Various shopping malls are already full and thus they do not have space for another
stall. Further, it has also been found that the company is required to manage and set the
business plan in such a way that the entire Australian people could be the target market. The
food and beverages of the restaurant must be in such a manner that it could be liked by the
children, youngsters and the old people (Lord, 2007). Through this report, it has been found
that the performance and the profitability of the comapny would be way better if the comapny
resolve these issues. Rest, the business plan is quite good and would offer the high profits to
the comapny in near future.
Conclusion:
To conclude, this business plan would offer the high profits to the entrepreneur. This
study depict that the performance and the position of the comapny depict that the business
plan would offer the high returns to the entrepreneur. Further it has been analyzed that
various challenges and strategies could be faced by the company. According to this business
plan the financial and marketing feasibility of the company depict that the performance and
the profitability position of the comapny would be better. Though, it has been found that huge
competition is there in the market in the hospitality industry. It would also be tough for the
entrepreneur to get the amount for the start up.
It is required to manage and set the business plan in such a way that the entire
Australian people could be the target market. The food and beverages of the restaurant must
be in such a manner that it could be liked by the children, youngsters and the old people.
Through this report, it has been found that the performance and the profitability of the
comapny would be way better if the comapny resolve these issues. Rest, the business plan is
quite good and would offer the high profits to the comapny in near future.

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References:
Barlow.J.F.,2006, Excel models for business and operations management, 2nd edition, John
Wiley and sons ltd, England
Bodie, Z., 2013. Investments. McGraw-Hill.
Bromwich, M. and Bhimani, A., 2005. Management accounting: Pathways to progress. Cima
publishing.
Cadez, S. and Guilding, C., 2008. An exploratory investigation of an integrated contingency
model of strategic management accounting. Accounting, organizations and society, 33(7),
pp.836-863.
Damodaran, A, 2011, Applied corporate finance,3rd edition, John Wiley and sons, USA
Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.
Garrison, R.H., Noreen, E.W., Brewer, P.C. and McGowan, A., 2010. Managerial
accounting. Issues in Accounting Education, 25(4), pp.792-793.
Hansen, D., Mowen, M. and Guan, L., 2007. Cost management: accounting and control.
Cengage Learning.
Hoque, Z., 2002. Strategic management accounting. Spiro Press.
Horngren, C.T., 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education
India.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Lord, B.R., 2007. Strategic management accounting. Issues in Management Accounting, 3.
Lumby,S and Jones,C,.2007, Corporate finance theory and practice, 7th edition, Thomson,
London
Moles, P. Parrino, R and Kidwekk, D,.2011, Corporate finance, European edition, John
Wiley andsons, United Kingdom

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Shim, J.K., Siegel, J.G. and Shim, A.I., 2011. Budgeting basics and beyond (Vol. 574). John
Wiley and Sons.
Simmonds, K., 2010. Strategic management accounting.
Ward, K., 2012. Strategic management accounting. Routledge.
Weaver, S.C., Weston, J.F. and Weaver, S., 2001. Finance and accounting for nonfinancial
managers. New York: McGraw-Hill.