Project Management for Establishing a Restaurant in GTA

This project is based on setting up a new restaurant in Greater Toronto Area (GTA). The project plan includes project timeline, budget management, risk management, human resource management, communication management and project control plans.

Running Head: PROJECT MANAGEMENT
PROJ 5001: Establish a Restaurant in the GTA
Name of the Student
Name of the University

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Table of Contents
Executive Summary.........................................................................................................................2
1. Phases of Project Management....................................................................................................2
2. Project Timeline and Work Breakdown Structure.......................................................................8
3. Project Costs, Operating Budget and Start Up Budget (Budget Plan)......................................14
4. Human Resources Plan..............................................................................................................15
5. Communications Plan................................................................................................................16
6. Risk Management Plan..............................................................................................................17
7. Project Control Plan...................................................................................................................18
References......................................................................................................................................20

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Executive Summary
This project is based on setting up a new restaurant in Greater Toronto Area (GTA). In
order to undertake this particular project, there are several work requirements including hiring or
constructing a new building where the restaurant will be set up, installation of cooking
equipments, preparation of dining space, recruitment of chefs, preparing an appropriate menu for
the restaurant, preparation of appropriate prices for the dishes and others. Based on the
requirements of the project, a project plan has been developed in this report that includes project
timeline, budget management, risk management, human resource management, communication
management and project control plans.
1. Phases of Project Management
The five main phases of project management that will be followed for this project are as
follows.
Project Initiation Phase – This is the starting phase of a project in which the most
common activities include discussion regarding progressing with project, feasibility testing,
project proposal submission and others (Harrison & Lock, 2017). For this particular project, the
list of activities under this phase is specified as follows.
Project Initiation Phase
Discussion between Project Board Members
Discussion Regarding Feasibility of Project

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Discussion Regarding Selection of Area for Setting Up Restaurant
Agree on an Appropriate Plan
Submit Project Proposal
Receive Approval on Project Proposal
Project Planning Phase – This is one of the main phases of the project where detailed
planning is done regarding further work. The planning includes development of project charter,
specification of project scope, determination of budget, schedule, risk management plan and
others (Kerzner & Kerzner, 2017). For the establishment of restaurant in GTA, the following
activities are required for the planning phase.
Project Planning Phase
Prepare Project Charter
Develop Project Budget
Develop Project Schedule
Prepare Human Resource Management Plan
Prepare Risk Management Plan
Prepare Project Control Plan
Prepare Quality Management Plan

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Appoint Project Team
Project Execution Phase – The execution phase constitutes all the major work packages
that are required to reach the goals of the project. In other words, this is the most important part
of a project and is also the lengthiest one (White, 2018). For this project, the execution phases
requires the following activities.
Project Execution Phase
Restaurant Building
Survey Target Area
Rent Building for Restaurant
Contact Local Council
Acquire Trade License
Acquire Permission for Proceeding with the Project
Procurement
Prepare List of Necessary Resources
Hire Project Working Team

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Purchase All Necessary Equipments
Installation Works
Installation of the Equipments in the Kitchen Room
Electrical and Plumbing Works in Kitchen Room
Dining Area Design
Prepare Floor Plan
Electrical Works
Place Tables and Chairs as per Floor Plan
Set Up Counter for Ordering Food and Bill Payment
Installation of Air Conditioning System
Utilities
Restroom Development
Installation of Restroom Essentials
Plumbing Works
Install Hand Wash Equipments
Decoration Design and Implementation

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Interior Decorations As Per Restaurant Theme
Exterior Decorations
Setting Up Restaurant Title Banner
Menu
Decide Theme for Restaurant
Hire Masterchef and Cooks
Discussion Regarding Standard Menu for the Restaurant
Approve the Menu
Finalization and Printing of Menu
Project Control Phase – In this phase, the project is controlled along with some
additional works like marketing, checking of quality standards, testing and others (Madar, 2014).
For this project, the control phase requires the following list of activities.
Project Control Phase
Marketing
Promote the Restaurant via Social and Digital Media
Announce Discounts and Offers for First Customers

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Testing
Safety Testing
Testing of Cooking Equipments
Checking Quality of Cooking Utensils
Check Food Preservation System
Project Handover
Project Closing Phase – This is the final phase of the project where appraisal and review
are performed and stakeholders sign off from the project (Binder, 2016). Following is the list of
activities required for the closing phase of this project.
Project Closing Phase
Review and Appraisal of the Project
Pay Remaining Dues
Stakeholder Sign Off
Grand Opening

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2. Project Timeline and Work Breakdown Structure
The project timeline along with the work breakdown structure is presented in the
following table.
WBS Task Description Duration Resource Names Cost
0
Establishment of New Restaurant
in GTA
227 days $616,400.00
1 Project Initiation Phase 14 days $28,400.00
1.1
Discussion between Project
Board Members
3 days
Project Manager,
Project Supervisor
$7,800.00
1.2
Discussion Regarding Feasibility
of Project
2 days
Project Manager,
Project Supervisor
$5,200.00
1.3
Discussion Regarding Selection
of Area for Setting Up Restaurant
2 days
Project Manager,
Project Supervisor
$5,200.00
1.4 Agree on an Appropriate Plan 2 days
Project Manager,
Project Supervisor
$5,200.00
1.5 Submit Project Proposal 5 days Project Supervisor $5,000.00
1.6
Receive Approval on Project
Proposal
0 days $0.00

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2 Project Planning Phase 20 days $21,200.00
2.1 Prepare Project Charter 4 days Project Supervisor $4,000.00
2.2 Develop Project Budget 4 days Project Supervisor $4,000.00
2.3 Develop Project Schedule 2 days Project Supervisor $2,000.00
2.4
Prepare Human Resource
Management Plan
2 days Project Supervisor $2,000.00
2.5 Prepare Risk Management Plan 2 days Project Supervisor $2,000.00
2.6 Prepare Project Control Plan 2 days Project Supervisor $2,000.00
2.7
Prepare Quality Management
Plan
2 days Project Supervisor $2,000.00
2.8 Appoint Project Team 2 days Project Manager $3,200.00
3 Project Execution Phase 150 days $470,800.00
3.1 Restaurant Building 60 days $116,000.00
3.1.1 Survey Target Area 10 days Project Manager $16,000.00
3.1.2 Rent Building for Restaurant 30 days
Project Manager,
Building Rent Cost
Per Month[1]
$58,000.00
3.1.3 Contact Local Council 5 days Project Manager $8,000.00

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3.1.4 Acquire Trade License 10 days
Project Manager,
Building Rent Cost
Per Month[1]
$26,000.00
3.1.5
Acquire Permission for
Proceeding with the Project
5 days Project Manager $8,000.00
3.2 Procurement 30 days $117,000.00
3.2.1
Prepare List of Necessary
Resources
10 days
Project Supervisor,
Project Team Leaders
$46,000.00
3.2.2 Hire Project Working Team 5 days Project Team Leaders $18,000.00
3.2.3
Purchase All Necessary
Equipments
15 days
Procurement
Manager, Equipment
Costs[1], Building
Rent Cost Per
Month[1]
$53,000.00
3.3 Installation Works 20 days $46,000.00
3.3.1
Installation of the Equipments
in the Kitchen Room
10 days
Worker Group 1,
Building Rent Cost
Per Month[1]
$22,000.00

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3.3.2
Electrical and Plumbing Works
in Kitchen Room
20 days Worker Group 2 $24,000.00
3.4 Dining Area Design 40 days $47,000.00
3.4.1 Prepare Floor Plan 5 days Project Supervisor $5,000.00
3.4.2 Electrical Works 10 days Worker Group 2 $12,000.00
3.4.3
Place Tables and Chairs as per
Floor Plan
5 days Worker Group 3 $6,000.00
3.4.4
Set Up Counter for Ordering
Food and Bill Payment
15 days Worker Group 3 $18,000.00
3.4.5
Installation of Air
Conditioning System
5 days Worker Group 2 $6,000.00
3.5 Utilities 25 days $30,000.00
3.5.1 Restroom Development 5 days Worker Group 4 $6,000.00
3.5.2
Installation of Restroom
Essentials
5 days Worker Group 4 $6,000.00
3.5.3 Plumbing Works 10 days Worker Group 2 $12,000.00
3.5.4 Install Hand Wash Equipments 5 days Worker Group 4 $6,000.00

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3.6
Decoration Design and
Implementation
35 days $62,000.00
3.6.1
Interior Decorations As Per
Restaurant Theme
15 days
Worker Group 1,
Building Rent Cost
Per Month[1]
$28,000.00
3.6.2 Exterior Decorations 15 days
Worker Group 1,
Building Rent Cost
Per Month[1]
$28,000.00
3.6.3
Setting Up Restaurant Title
Banner
5 days Worker Group 1 $6,000.00
3.7 Menu 30 days $52,800.00
3.7.1 Decide Theme for Restaurant 5 days Project Manager $8,000.00
3.7.2 Hire Masterchef and Cooks 15 days Project Manager $24,000.00
3.7.3
Discussion Regarding Standard
Menu for the Restaurant
2 days Project Manager $3,200.00
3.7.4 Approve the Menu 4 days Project Manager $6,400.00
3.7.5
Finalization and Printing of
Menu
4 days
Procurement
Manager, Project
Manager
$11,200.00

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4 Project Control Phase 66 days $57,600.00
4.1 Marketing 31 days $30,000.00
4.1.1
Promote the Restaurant via
Social and Digital Media
10 days Marketing Manager $10,000.00
4.1.2
Announce Discounts and
Offers for First Customers
10 days
Marketing Manager,
Building Rent Cost
Per Month[1]
$20,000.00
4.2 Testing 11 days $27,600.00
4.2.1 Safety Testing 5 days Worker Group 2 $6,000.00
4.2.2
Testing of Cooking
Equipments
2 days Project Team Leaders $7,200.00
4.2.3
Checking Quality of Cooking
Utensils
2 days Project Team Leaders $7,200.00
4.2.4
Check Food Preservation
System
2 days Project Team Leaders $7,200.00
4.3 Project Handover 0 days Project Team Leaders $0.00
5 Project Closing Phase 12 days $38,400.00
5.1 Review and Appraisal of the 5 days Project Manager $8,000.00

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Project
5.2 Pay Remaining Dues 5 days
Other Additional
Costs[1], Project
Manager
$18,000.00
5.3 Stakeholder Sign Off 2 days
Project Manager,
Project Supervisor,
Project Team Leaders
$12,400.00
5.4 Grand Opening 0 days $0.00
3. Project Costs, Operating Budget and Start Up Budget (Budget Plan)
There are several types of costs associated with this project as this is a new start up
restaurant business. In order to develop a budget plan, these costs are to be considered and
explained as follows.
Project Costs – As shown in the previous table, the total estimated cost for the project is
$616,400. Considering contingency and other miscellaneous spending, the total project cost can
be set at $750,000.
Operating Budget – This budget will be required once the project is complete and the
restaurant is opened for the public. The operating budget breakdown is shown in the following
table.
Operating Cost Estimated Cost ($/Month)

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Building Rent 10,000
Staff Wages 150,000
Maintenance Costs 5,000
Purchasing Costs of Food Materials 32,500
Other Variable Expenses 2,500
TOTAL $200,000
Start-Up Budget – This budget is required for initiating the business including the project
and operations after the project until there is sufficient revenue generated to cover for the
expenses. Hence, the start-up budget is calculated as the sum of the project cost and six months
operational cost i.e. $(750,000+6*200,000) = $1,950,000. So, the total start up budget can be
considered to be $2million.
4. Human Resources Plan
The main human resources associated with the project including the stakeholders and
project workers are shown in the following table.
Human Resource Roles and Responsibilities
Project Manager Management and control of the project
Project Supervisor Supervision of the project as per requirements
Project Team Leaders Managing working teams to perform various activities in

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the project
Worker Group 1 Performing various works in the project
Worker Group 2 Performing various works in the project
Worker Group 3 Performing various works in the project
Worker Group 4 Performing various works in the project
Procurement Manager Procurement of necessary resources for the project
Marketing Manager Promotion of the restaurant before grand opening
5. Communications Plan
The communication plan for the human resources associated with the project is
developed as follows.
Human Resource Communication Need Frequency of
Communication
Medium of
Communication
Project Manager Request guidance and
assistance in project
Weekly Face to Face, Written
Reports
Project Supervisor Request supervision and
assistance in project
Daily Face to Face
Project Team Leaders Instructions regarding
the work requirements
Daily Face to Face
Worker Group 1 Instructions regarding Daily Face to Face

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work requirements
Worker Group 2 Instructions regarding
work requirements
Daily Face to Face
Worker Group 3 Instructions regarding
work requirements
Daily Face to Face
Worker Group 4 Instructions regarding
work requirements
Daily Face to Face
Procurement Manager Procurement
requirements
As required List of requirements
Marketing Manager Promotional
requirements
Before start of project Emails
6. Risk Management Plan
The risks of the project are identified and the management plan is developed as follows.
Risk Description Likelihood Impact Management Strategy
Budget overshoot in this
project may lead to
bankruptcy of the
owners
High Very High Control budget
throughout the project
and ensure there are no
unnecessary costs
Errors in installation
works may lead to
serious accidents
harming the workers
Medium Very High Follow safety standards
and guidelines during
working in the project
The project may not Low High Assign a legal

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follow standards and
guidelines regarding
restaurant business and
may face legal action
and cancellation of
license
consultant for advice
regarding restaurant
business standards and
guidelines
Lack of sufficient
customers may lead to
significant losses and
ultimately bankruptcy
Medium Very High Conduct promotions
through various digital
and social media with
attractive offers
7. Project Control Plan
Project control is required to ensure it is executed in the right way as per the developed
plan. Generally, the project manager is responsible for controlling the project as per the
requirements. For this project, the project manager will control the project along with the
assistance of the project supervisor (Alfagi, Purnaweni & Setiani, 2015). Some of the main
controlling activities include the following.
 Review of project proposal
 Review of project charter
 Discussion of requirements with the working team
 Supervision of activities in the project
 Review and appraisal of the project

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From the discussions to the handover of the restaurant to the project manager, the control
process will continue to occur to ensure all milestones are reached and all requirements are
delivered with appropriate quality standards.

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