Think Big Assignment - Business Model

Running head: THINK BIG
Think Big
Name of the Student
Name of the University
Author Note

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Executive summary
The aim of this study is to present a business model of an upcoming restaurant in Australia. The
study discusses how the restaurant FreshToast will use different strategies so that the restaurant
can successfully position itself within the industry. The paper states that location plays an
important part for a successful establishment of a restaurant thus the proposed restaurant will be
located in one of the most popular places, Opera house so that the customers feel attracted to
visit the restaurant. The study gives a general introduction of the interior decoration of the
restaurant and then proceeds with stating the benefits that the restaurant can contribute.
Additionally, it gives the business model of the proposed restaurant and the critical research
factors. Finally the study concludes with the feasibility of the idea. In order to maintain the
credibility of the paper, it adds references.

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Table of Contents
Introduction..........................................................................................................................2
Business model canvas of FreshToast.................................................................................3
Critical success factors........................................................................................................5
Feasibility of the idea...........................................................................................................6
Conclusion and recommendation........................................................................................6
Reference List......................................................................................................................8

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Introduction
In today’s world, people are becoming inclined towards the trend of being healthy, eating
healthy and living healthy. This health trend is also increasing among the Australian people. The
citizens prefer eating fresh, healthy food even when they dine out. Presently most restaurants
serve canned food and frozen raw materials which can bring adverse effect on human health.
Thus the restaurant, FreshToast has come up with the idea of serving fresh food. Food and
beverage industry is an ever growing industry globally and the situation is not different in
Australia. Rather it can be asserted that an average Australian household spends an approximate
of $4900 per year in eating out. No less wonder that restaurant industry is blooming and growing
in Australia. There are a total of 85,000 restaurants as recorded in the year 2017. 4.5 billion
dollar was the total revenue that was generated in the same year from restaurant industry. In this
context it would be worth asserting that new restaurant and chain of restaurants opening in
Australia are likely to anticipate a huge success. Such will be FreshToast, which will be
following certain principles when it comes to food and beverage. Thus the restaurant will be
serving fresh food while changing the scene of the industry. The most fascinating fact about the
restaurant will be its location which is a heritage location. The restaurant will be situated in
Sydney’s Opera House. Thus it will be perfectly coordinating with the ambience of the
restaurants as well as the menu the restaurant will be serving. Top-notch chefs will be hired to
design the menu of the restaurant. They will not only design the menu but they will assure that
the visitors have such an experience which will make them revisit the restaurant again and again.
The chefs will be the one of the key inspiration of the concept of the restaurant. Another
interesting feature the restaurant will have is that the essentialraw materials will be taken in
partnerships as Gagic et al. (2013). That is, the restaurant will be partnered with fishermen,

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farmers, grocery shops, breeders and poultry providers. The restaurant will take the inventories
from these authenticate sources only. Thus it can be said that the maintenance of quality will be
the prime priority of the restaurant. FreshToast will target mainly the fitness enthusiasts and
health conscious people.
Benefits to be generated by the idea
The food chain industry of Australia will be highly benefited by this food chain.
Nowadays not only the citizens of Australia but also the people across the world are inclining
towards being healthy. Thus it has been largely observed that the people are switching towards
the food that is healthy and fresh. Therefore, the restaurant FreshToast will contribute to the
industry of food chain significantly (Gagić, Tešanović & Jovičić, 2013). The restaurant will
bring back the people who avoid outside food as most restaurants use frozen materials. As the
health conscious customers exist in large number, it can reach out to the most customers while
setting an example for other restaurants. Along with that the restaurant will design its menu
especially keeping the college students and college goers in mind in order to offer them fresh and
healthy food. As the college goers tend to eat unhealthy fast food more than others, FreshToast
especially decided the food range for them. They serve their food in a way which is tasty yet
healthy. The restaurant will not only bring back the old customers who had stopped visiting
restaurants due to being health conscious but also it will attract the customers who belong to the
young generation. Thus it can be said that the restaurant will contribute to the economy
significantly.

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Business model canvas of FreshToast
Key Partners: FressToast’s partners will be the authentic source owners of the raw
materials that it uses in its regular menu. For instance, the fishermen, breeder poultry provider,
farmer, brands like Coca-cola and so on. Some major and reputed interior decorators will be
partnered in order to maintain the décor of the restaurant.
Key Activities: Some key activities can be undertake like cooking, promotional activities,
branding the restaurant through social networking sites, tourism sites and in the restaurant’s own
online portal and website (Lee, Hallak & Sardeshmukh, 2016), taking feedback from customers
and adhering to the feedbacks.
Value Proposition: Restaurant industry is all about hospitality. It is all about proving a
great deal of satisfaction to its customers. It will take negative feedback and comments in an
optimistic manner to keep its rates a little less than competitors. Special attention will be given
towards kids’ meal.
Customer Relationship: It will maintain a healthy relationship with the customers through
social media sites, like Facebook, Instagram and Twitter. FirstToast restaurant will create its own
Whatsapp group. The customers will be notified about offers and deals over the social media.
Customer Segment: The food lovers who love to eat fresh and healthy food. Since the
restaurant also has a health trend motif, it will mainly target the health conscious customers to try
its menu. The restaurant will also target the lip smackers who wish to try out different cuisine.

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Critical success factors
In order to reach out to the target audience, the restaurant can plan some measures. The
major key success factor is the quality of food. The other key success factors are quality service,
hospitality management, targeted marketing (Gagić, Tešanović & Jovičić, 2013). Additional
factors are also there like well trained staffs and promotional strategies. While discussing about
the quality of food, it needs to be mentioned that the main motto of the restaurant is to serve
fresh food. Thus it is necessary for the restaurant to focus on the quality of the food. As
hospitality is an integral part of this industry, hospitality and customer service cannot be ignored.
Therefore, costs will be invested in advertising and promoting the restaurant, on the labors like
the cooks, waiters, managers and other employees, on researches and experiments that will be
made to improve the quality of food and to bring more modifications and innovation.
Feasibility of the idea
The major risk relate to the customer is the maintaining the quality of the food.
Employees tend to compromise with the fresh and healthy raw materials. There are certain other
risks that are related to the restaurant. Since FreshToast is not only a restaurant but also at the
same time have a plan to run banquet business, it will have to suffer from a huge competition.
Some of the competitors of the restaurant are Mr. Wong, LuMi bar and Dining, Tetsuya’s
Restaurant and ester restaurant and bar. Since these restaurants are very much popular and long
established, it will give FreshToast a tough competition. Apart from that being a new comer in
the industry, the prices of the food will be less as compared to the already established restaurants
in the town (Rodriguez, Peterson & Ajjan, 2015). The restaurant will be adopting lean
management strategy in its business through which it will keep improving its business strategy.
As part of the lean management, the customers will be asked give their honest feedbacks. Based

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on the feedbacks, the restaurant will take a close look at the problems or issues and mainly the
dissatisfaction area which will be identified by the customers. Measures will be taken
accordingly in order to address the issues. Apart from the customers feedback internal
observation will be carried to ensure the effective performance of the employees.
Conclusion and recommendation
Some recommendations can be stated so that the restaurant can achieve its target. These
are: price cutting measure as part of low cost strategy; in order to attract a larger section of
customers the restaurant can offer several discounts and combo offers during festive seasons; the
restaurant can adopt innovative strategy by introducing kid’s play area within the restaurant and
it an offer theme dining on special occasions like Christmas, ester etc. apart from these, it is
strongly recommended that the management of the restaurant needs to be well-organized in order
to ensure the effectively in its business practices.
To conclude, it can be said that the purpose of this study is to give a business model of an
upcoming restaurant in Australia. The study discusses how the restaurant FreshToast will have
all the possibilities to be no less than a leading restaurant in Australia and will be able to manage
its name and fame. The paper stated location plays a crucial role for a successful establishment
of a restaurant thus FreshToast will be located in one of the famous places, in Opera house so
that the restaurant will become more attractive to the customers. The study gives a clear
understanding of the business strategy of the proposed restaurant. The paper tried to cover nearly
all the aspects while discussing the business model of the upcoming restaurant FreshToast.
Hence, it can be asserted that business model has a significant importance not only for the

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proposed restaurant but for any other kind of business so that the effective business practices can
be ensured.
PART B
Collaboration and contribution
In order to acknowledge the contribution of my classmates, I would like to mention member 1
and member 2 whose contribution in the completing the project is worth mentioning. The entire
report could not have been completed without their participation. Rather it can be said that it was
a collaborative assignment where member 1 has given his efforts in outlining the business model
canvas and the feasibility of the idea. At the same time, member 2 has contributed significantly
by identifying the critical success factors related to the restaurant. It was group effort while
deciding the location of the restaurant which is most important part of planning the business
model for the restaurant so that the restaurant can attract the maximum number of customers.
Above all the theme of serving fresh food which is the main theme of the restaurant to attract the
target audience was decided by me and the whole assignment was thus designed accordingly.
Therefore I acknowledge both of their contribution and collaboration in completing the
assignment. I also acknowledge others who have directly and indirectly assisted in this
assignment.

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Appendix
Key
Partners
 FressToast’s
partners will
be the
authentic
source
owners of
the raw
materials
that it uses
in its regular
menu.
 The
fishermen,
breeder
poultry
provider,
farmer etc
 Coca-cola
and other
likely
beverages
 Angry birds
 Some major
and reputed
interior
decorators
in order to
maintain the
décor of the
restaurant
 Engineering
agency, to
maintain the
interior
structure, its
ambience
and lighting
Key Activities
 Cooking
 Promotional
activities
 Branding the
restaurant
through
social
networking
sites, tourism
sites and in
the
restaurant’s
own online
portal and
website (Lee,
Hallak&Sard
eshmukh,
2016)
 Taking
feedback
from
customer
 Adhering to
the
feedbacks,
that is taking
pride in the
positive
feedback and
working upon
the negative
feedbacks
Value
Proposition
 Restaurant
industry is all
about
hospitality.
 It is all about
proving a
great deal of
satisfaction to
its customers.
 Adhering to
customer
feedbacks
 Taking
negative
feedback and
comments in
an optimistic
manner
 Keeping its
rates a little
less than
competitors
 Maintaining
happy combo
packs and
paying
special focus
towards kids
meal. For
instance
special meal
for kids, kid
combos etc
 Providing the
customers
with a
number of
choices to
choose from
Customer
Relationships
 Maintaining
a healthy
relationship
with the
customers
through
social media
sites, like
facebook,
instagram
and twitter
 FirstToast
restaurant
will create
its own
whatsapp
group.
 The
customers
are notified
about offers,
deal and
promotional
offers
through not
only e-mails
but also on
whatsapp
group.
Notification
is also done
on
facebook,
instagram
and twitter
 FirstToast
willremain
very clear to
its
customers
about the
Customer
Segments
 The food
lovers who
loves to eat.
 Since the
restaurant
also has a
health
freak’s
motif, it
also targets
the heal
conscious
customers
to try its
menu
 The
restaurant
also targets
the lip
smackers
who wishes
to try out
different
cuisines

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nutritional
value of the
meal that is
provides to
its
customer.
The
nutritional
values of
kids meal
specifically
is presented
to the
customers
along with
the menu.
 Not only
that, all the
waiter and
order takers
are well
aware of the
nutritional
values of
each meal s
well.
 Apart from
that, the
customers
will be also
made to rate
and review
he
restaurant o
Google and
other social
media
websites
Key
Resources
 Its suppliers
 The human
resources
 The
management
Channels
 Presence of
the
company’s
own website
 Advertisem
ents on
television

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 Advertisem
ent on
tourism
sites since
the
restaurant is
in the opera
house
(Table: business model)

Running head: THINK BIG
Tangible Changes in Program Operations resulting from Project Implementation
Program Operational Cost
Elements
F
Y
F
Y
F
Y
FY F
Y
Changes in Program Operational Costs (Negative Values = Decreased Costs) 2
019
2
020
2
021
202
1
2
022
TO
TAL
A. Personnel -- Operational Costs $10,000 $
10,000
$
10,000
$
10,000
$10
,000
$
50,000
A-1.a. (Salaries & Benefits) $10,000 $
10,000
$
10,000
$
10,000
$10
,000
$
50,000
B. Plant & Facility -- Operational Costs $1,000 $
1,000
$
1,000
$
1,000
$1,
000
$
5,000
C. External Service Provider -- Operational Costs $14,300 $
14,300
$
14,300
$
14,300
$14
,300
$
71,500
C-1. Contractor Services $1,000 $
1,000
$
1,000
$
1,000
$1,
000
$
5,000
C-2. Maintenance & Support Services $650 $
650
$
650
$
650
$65
0
$
3,250
C-3. Network / Hosting Services $5,000 $
5,000
$
5,000
$
5,000
$5,
000
$
25,000
C-4. Data Communications Services $7,500 $
7,500
$
7,500
$
7,500
$7,
500
$
37,500
C-5. Other $150 $
150
$
150
$
150
$15
0
$
750
D. Data Processing -- Operational Costs $15,000 $
15,000
$
15,000
$
15,000
$15
,000
$
75,000
D-1. Hardware $10,000 $
10,000
$
10,000
$
10,000
$10
,000
$
50,000
D-2. Software $5,000 $
5,000
$
5,000
$
5,000
$5,
000
$
25,000
D-3. Other $0 $
0
$
0
$
0
$0 $
0
E. Others -- Operational Costs $750 $
750
$
750
$
750
$75
0
$
3,750
E-1. Training of the given software $0 $
0
$
0
$
0
$0 $
0
E-3. Other $750 $
750
$
750
$
750
$75
0
$
3,750
Subtotal of Operational Costs ( Rows A through E) $41,050 $
41,050
$
41,050
$
41,050
$41
,050
$
205,250
F. Revenues / External Contribution / Fiscal Offsets $50,000 $
55,000
$
60,500
$
66,550
$73
,205
$
305,255
F-1. Revenues $50,000 $
55,000
$
60,500
$
66,550
$73
,205
$
305,255
Total Changes in Program Operational Costs (Sum of Rows A through E minus Row F) (
$8,950)
($
13,950)
($
19,450)
($2
5,500)
($
32,155)
($1
00,005)
Cumulative Change ($8,950) (
$22,900)
($
42,350)
($
67,850)
($1
00,005)
(Table: Budget plan)

Running head: THINK BIG
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