Developing a Business Plan for Airport Cafe, Heathrow Terminal 5

This report presents a comprehensive business plan for an Airport Cafe located in Heathrow Terminal 5, owned by Mr. and Mrs. Smith. The plan includes a rationale for the project, focusing on the target market, which consists of travelers and tourists. It details the cafe's concept of providing British comfort food and beverages. The plan covers operational requirements, including financial analysis, product and service offerings, and market research. It examines the cafe's organizational structure, addressing staffing, cultural diversity, recruitment policies, and compliance with legislation. The report outlines promotional activities, pricing strategies, and financial forecasts, including funding requirements and estimated expenses for initial setup and operations. It also emphasizes the importance of location, ambiance, and customer experience to achieve a competitive advantage within the hospitality industry.

HPPT

Table of Contents
TASK 3............................................................................................................................................1
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market..........................................................................................................................................1
3.2 Develop a plan for a hospitality business including the operational requirements of the
business’ organisational structure in relation to human resource allocation...............................1

TASK 3
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market.
The hospitality firm that is been taken in the consideration here is Airport cafe, situated at
Heathrow, Terminal 5. It is a moderately priced comfort food place that provide the better
British food to its customers. It also provides the facilities like books and magazines and Plasma
screens to watch matches. As the hospitality restaurants consists of £5m per year industry and
has a growth rate of about 20% annually. The cafe is owned by Mr. and Mrs. Smith and also
operates at a high class areas in UK. The firm provides the facility of “All day breakfast” and hot
and cold beverages. They also add seasonal items in the menu that is very beneficial for
attracting the customers from target market. It helps in providing the better and good quality food
or products that help in giving out the high level services to its customers. It also helps in gaining
a good customer experience to have a better satisfaction level. As the operational efficiency of a
location is much better, this will help in gaining the good products and services that will help in
better rise in operational quality of services and gain a good control over its functionality. The
firm also offers a wide range of products and services, which helps in effective rise in the
operational capacity of firm. Other than this, a good grasp on its products and services will lay a
very deep impact on the growth and establishment of a high quality product and services and
gain a good control over the other functionality management measures that involves the better
marketing of goods and services, managing the stock and maintaining the product quality and
services. This approach will help the firm to meet its operational requirements in a much better
way, helping Airport cafe to have a good customer base.
3.2 Develop a plan for a hospitality business including the operational requirements of the
business’ organisational structure in relation to human resource allocation
Executive summery
The business plan that is been developed will lay a very deep impact on the overall
operations that will be lead a deep impact on the operational impact on the establishment and
development of Airport cafe at Heathrow, terminal 5. Owned by Mr. and Mrs. Smith, it is a
British hospitality firm, that provide the food and beverage services to its customers. The market
plan will include effective details of the financial analysis, product details and other factors that
lay a very deep and significant impact on growth and development of the restaurant. The
different factors like financial resources, product quality details, marketing management and
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other customer related factors that will act as a catalyst in growth and development of Airport
Cafe.
Stage 1
Concept: The core concept behind the restaurant is that it will help in suitable promotion of UK
food culture and as travelling is a long process, tourist or customer of the firm will get very easy
access to have breakfast or lunch in a proximity of Airport terminal 5.
The Airport cafe and Operations
Airport cafe is a British hospitality firm that works in restaurant sector, offering food and
beverage services. It is owned by Mr. and Mrs. Smith. It mainly works in the providing “All day
breakfasts” to the clients or customers. It has been successful to gain a 10% growth and
development in past 3 years and this has helped the firm to gain a better operational efficiency
and customer satisfaction level. It is open seven day of week from morning 5 AM till 11 PM in
night. The major spend spilt that is been followed by the firm is on beverages, food and other
services that is been provided by the restaurant. It also provides the sittings to its customers and
other facilities like newspaper and magazines. It is on a moderate lease term and thus helps the
firm to have a cost effective approach in operations. Also, it has a good relationship with the
suppliers, which help the firm to have an adequate amount of consumables. Airport cafe will
help in following the economies of scale and thus will help in better negotiation. The good
ambiance and location near the Entry and exit point of terminal 5 will be the major positive point
for the restaurant.
The effective placing on location and better management of operation will help the firm
to increase its effectiveness. A good positioning and terminal 5 will give the restaurant a good
ambiance, which will help the firm to attract more and more potential clients. The effective
interior and exterior will help the customers to get good view of flights and a better option of
resting, ensuring a constant customer flow and sustainability.
In order to becomes a big brand in hospitality industry in UK. I need to be taken various
stages in order to promoting good services. Culture is one of the essential factor which make
impact on productivity and profitability of the business in market. As per the business strategy
about opening restaurant business, it is needed to, restaurant's interior and exterior must be in
attractive form, which will attract its customers to market more. Variety of foods services will be
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furnished by my business catering services and I need to identified that, it will be done in
business as per customer's requirements.
It involves the better staffing and specialist that will help the firm to mitigate the disputes and
practice a better compliance with legislation that will help in setting of good pricing and policies
in cafe.
Market/ Competitor analysis (Market research)
As UK has one of the major emerging market for hospitality industry, The Airport Cafe
will have a great opportunity to grow and develop more extensively. In the past five years, the
Airport cafe has provided a better opportunity like food and beverages. The major customers
base will consist of business traveller, transit travellers, tourists and airport staff. With the
growth of flights and number of tourists, the cafe can have an effective growth of 10% minimum
on an annual basis, having a competitive advantage by maintaining the quality. This will help the
firm to improve its core competencies and handle the overall operations of the company in a
better way. The firm will use various tools and techniques like questionnaire, market survey that
will help in better growth and development of business operation.
Target Market
This will involve the customers from the flights and those who will arrive at the terminal
to depart and are waiting for their flight. In other words, the target audience of the Cafe will be
the tourists and travellers arriving at the Terminal 5.
Location
The location is quite accessible that makes the Cafe a approachable place for the
customers.
Scale
The size and the market for the cafe will be based on the size of terminal 5 and the flights
received by the Airport. Higher the number of flights, more the number of customers the cafe
will have.
Funding
Mr. ad Mr. Smith will either invest their personal saving funds or will opt for a loan from
bank to establish the cafe.
Product and services
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The cafe will provide the food and beverages as per the availability and requirements of
the customers. This will involve tea, coffee, sandwiches, salads, drinks, juice etc.
Licensing
The proper placing of the rules and regulations and gaining a license to carry out the trade
will help the firm to execute their business operations in a more innovative, legalised and
effective way.
Stage 2
A good ambiance and development or adoption of various cultures to cater the need and
requirements of various customers. This will help in developing a better interior and exterior
environment, ensuring a better customer flow linking the targeted market. And will help the cafe
to develop as a brand. It will help the organisation to have a better access to its functional areas,
develop a link with their target market and cater the customers with individual needs.
Stage 3
Staffing by functional areas
This approach will help in suitable meeting of the targeted demands of the organisation.
The firm will look after the good staffing in the functional area. This will involve the getting of
work force like shift manager, chefs, waiting staff etc to work at the cafe.
Specialist Qualification
For the executive work force they will look after the better qualification for the operation,
that will cause the rise in effectiveness in company's operation.
Staffing issue related to seasonality
Some work force will be available during a period or season for example part-time job
seeker etc. Thus, in this case, Mr. and Mrs Smith has to look after their better management and
mitigate any sort of issues related to seasonality.
Cultural diversity and ways to deal with conflicts
The employee's and the customer's can be of vivid culture that may lead to conflict thus
in this case, the cafe firm has to take different measures to deal and kerb the issues related to it.
Recruitment policies and procedures
Beside this, Mr and Mrs. Smith will look after the effective recruitment policies and
procedures to have a specific qualification in their staffing that will help them to attain a good
customer satisfaction level
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Compliance with legislation
Proper following of the policies will help in suitable rise in the functionality of the
organisation. This will improve their legal compliance and will support a better rise in the UK's
Market.
Promotional activities
Mr and Mrs. Smith will look after the different operation and advertising measures that
will help in better management of the business operations and create an awareness among their
customer base.
Pricing
The effective pricing will attract numerous customers that will lay a very deep impact on
the business operation of the Airport restaurant and will help in effective revenue generation
along with a good sustainability in the market that will help in better rise in functional capability
of the firm.
Management and owners
It is owned and managed by a couple named Mr. And Mrs. Smith. And will have
different employees and manager to carry out the operation.
Financial forecasts and requirements
It is been assumed that the cafe will have the adequate growth without being affected by
the recession. Also, the adoption of high quality of technology to gain a good control over the
operations and thus help in gaining a good equity and finance to maintain its operations. The
estimated expense that will be followed by the firm for operation in the market is £100,000
approximately including the expenses on equipments and raw material, working capital of 3
months, staff training expenditure, marketing, recruitment of staff and purchasing of initial
inventory. A good prising and marketing will help it to establish a link with its target market.
Also, it will help in gaining a good funding from the investors and better utilization of budget.
Other than this, the proper licensing of firm and compliance with legislation will help in better
functioning of business organisation helping it to get a good.
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