Restaurant Business Plan: Australian Medium-Sized Restaurant Proposal

This project presents a comprehensive business plan for a medium-sized restaurant, focusing on the Australian market. The executive summary outlines the concept, emphasizing diverse food options, including fast food, Australian cuisine, and Chinese food, along with accommodation and drive-through services. The plan details capital sources, including personal investments, 'love money,' and bank loans, while also addressing potential challenges such as legal, political, economic, technological, and environmental issues. It further explores risk management strategies and concludes with a discussion on business registration, compliance with fair trading laws, and intellectual property. The assignment analyzes the importance of political and economic stability, technological innovation, and environmental considerations. The plan also incorporates key aspects like marketing, hiring employees and creating a menu.

Running head: MEDIUM-SIZED RESTAURANT BUSINESS IDEA 1
Medium-Sized Restaurant Business Idea
Name
Institution Name

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 2
Medium-Sized Restaurant Business Idea
Executive Summary
The medium-sized restaurant is expected to serve a wide range of foods and provide
services such as accommodation and entertainment, and for convenience purpose of those
willing to carry food, the business is projected to establish a drive-through for this purposes. For
that reason, the business venture will be established for dining, holding individual casual
meetings, and accommodation as well as purchasing food for takeaway. It is essential to note the
increase in the demand for such a small restaurant as they are convenient in terms of booking,
checking in and most of all, quite cheap compared to their high-star restaurants. In addition, the
food that will be prepared in this restaurant will be tailored to suit the preference of the person
ordering since there will be a wide set of options to choose from including fast food, common
Australian meals as well as Chinese food all under one roof! For convenience, and diversity. To
come up with this restaurant, a number of factors will have to be considered such as the capital
sources required for the new business venture, the challenges as well as difficulties that are
expected and lastly how to involve the potential risks of the venture. Other important
considerations include the specific location to set the business, plan of curving the niche, creating
a menu, hiring employees and methods of marketing as well as promoting the business.

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 3
Table of Content
Executive Summary………………………………………………………………… pg. 2
Introduction…………………………………………………………………………. Pg. 4
Discussion…………………………………………………………………………… Pg. 5
Capital Sources for new Venture……………………………………………. Pg. 5
Challenges and Difficulties Expected………………………………………. Pg. 7
Involving Potential risk of the business venture……………………………. Pg. 10
Conclusion………………………………………………………………………….. pg. 10
References………………………………………………………………………….. Pg. 11

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Introduction
With the increasing numbers of consumers who want to dine out or those willing to take
prepared food home, it was essential to come up with a small restaurant that could cater for these
needs. Australia is increasingly becoming a tourist destination of choice for many people across
the world and with the high rates of food and accommodation in the high-end restaurants, many
people are now seeking to find alternative ways to spend less in this sector when they come to
make their visits in the country either as tourists or for business. The shifting demographics as
well as changing lifestyles have driven a sudden surge in the food-service business (Maeley,
2018). Many busy consumers increasingly lack the time or even any inclination to cook. With
the current nature of the economy and life, many people are on the move for business or
pleasure. Providing a premise where people could wine and dine and be merry, could go a long
way in establishing a lasting business brand as these are some of the things that such people on
the move require. As opposed to this, some individuals could have the need or desire to explore
certain types of foods or even to develop a given taste for specific foods and thus the importance
of establishing this kind of restaurant.
The first step in establishing this restaurant is to come up with the type of restaurant that
we want to establish. In this case, the best idea for a restaurant is one that combines all the
aspects of the food that is commonly loved by Australians as well as other people coming from
different parts of the world. For this reason, three categories of food have been selected to ensure
uniqueness, variety, as well as diversity as earlier, pointed out. In many countries, including
Australia, it is easy to find a restaurants that are exclusively for fast food, another for Chinese
food and another for the local cuisines. In many scenarios, therefore, these are three business
with each having its nature of operations. However, for our medium sized restaurant, all these

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 5
three aspects would be combined and bestowed under one roof. In addition to this, if the
customers are from outside the city or country and are in town for the night, there would also be
an extra option of booking an affordable room to spend the time. In the end, this business is to be
all rounded and therefore required a lot of input, effort, and considerations to establish. Coming
up with this type of business naturally comes with many challenges which will be discussed in
the course of the paper including the capital sources for the new restaurant, expected difficulties
as well as how to effectively involve the potential risk of the business.
Discussion
i) Capital Sources for the new business Venture.
a. Personal Investments
This will be the first source of capital for establishing the business. Personal investment is the
money that is saved by an individual on their part towards meeting a given end, in this case,
starting a medium-sized restaurant. It is essential to note that when starting any business, the first
investor should be yourself. This investment could be in terms of personal cash or collateral on
assets. A big part of personal investment is the money that is accrued by the investor over a
certain period from other ventures to create capital for a new opportunity if it arises. In this
cases, I have had skills in web creation, and over time, I have been able to accrue a substantial
amount that would help in contributing towards the capital for this business. In addition to this, I
am planning to sell a number of my assets such as some electronic gadgets and appliances as
well as my car. However, this amount is not merely enough for the whole project and therefore
the importance of exploring other areas for the capital. Personal investment is essential as it
proves to banks as well as other investors or money lenders to see the long-term commitment of
the project and the fact that the business owner is ready to take risks.

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 6
b. Love Money
Love money can be defined as money that is loaned from a spouse, Friend, immediate family
or close relatives. Bankers tend to refer this to as patient capital which can be repaid back as the
business grows and profits, and thus does not necessarily have interests, or a time duration within
which the amount can be paid (Kennon, 2018). In opening a medium-sized restaurant such as
this, it is essential to have substantial capital. Since the personal investment capital is not
adequate, love money had to be sought from immediate family. Asking my father for a small
loan would go a long way in contributing towards my dreams of establishing this business. The
money could be repaid later when the business starts to profit as I am confident that he would not
pressure me into refunding the money when the business has not broken even. Love money is a
good source of capital, but there are a number of considerations that a person must be aware of
before opting for it.
First, it is important to note that family, as well as friends, rarely do have much capital for
your business endeavors. For that reason, it would be advisable to overly depend on them as this
is bound to generate little boost towards financing the new business venture. Second, a person
has to know that dealing with family and friends could affect relations if there is not sufficient
understanding and plan of execution, or even when losses are incurred. Lastly, if these people
invest money in your business, they might want some type of equity in the venture. Due to this, it
requires a person to be comfortable with the idea. In this case, I am not willing to involve too
many people in the business in as much as I want to open it, I would have to consider my father
only, and from that, I can top up the remaining amount from other sources apart from love
money.

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 7
c. Government Grants and Subsidies
In Australia, government agencies have the potential of providing grants as well as subsidies that
could be available for business. These could prove essential for acquiring some funds for the new
business venture.
d. Bank Loans
These are the conventional sources of funding for small as well as medium-sized business such
as this. A bank can analyze the nature of business and other factors that would help it in
establishing the creditworthiness of an individual (Victoria State Government, 2018). If they feel
that you are the right person for them to invest in, then it would be easier to acquire a loan. In
this case, having ensured everything is in order and having come up with a great business plan, I
could present my business idea to the bank for financing.
ii) Challenges and Difficulties Expected (Legal, Political, Technological, economic,
environmental, social and cultural challenges)
a. Legal Challenges
The first legal challenges that we have to deal with in any nature of new business venture
including this is the registration of the business name. In Australis, this could also involve
Australian Business Number (ABN), the Good service Tax (GST), Pay as you Go (PAY G)
withholding and Tax File Number (TFN) (Australian Government, 2018). It is important to note
that all the business owners in Australia must have registered their business before starting any
type of operations. The second legal consideration is to ensure compliance with fair trading laws.
This law ensures the business venture operates fairly and competitively as well as make sure that
your consumers/customers are well protected. Finally, intellectual properties in Australia are

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 8
quite fundamental and must be adhered to always as a legal measure. For this reason, we shall
ensure that we do not infringe on any other business rights for our case.
b) Political and Economic Challenges
Political instability or political upheavals could be detrimental to any new business. For a new
venture to flourish, it must be established in an area where the politics of the land is settled. In
Australia, the political situation is not that tense, and this provides an excellent ambiance for
starting a new business. When there is political instability, not many tourists are bound to visit
the country, and thus this is bad for business. In addition, political instability has a negative
impact on the economy forcing people to stay away from luxurious places such as restaurants
another political issue that is bad for business. The last political challenge that is likely to affect
the new business venture is tax reforms. Restaurants could be affected by a wide range of
politically motivated taxes as well as financial regulations like credit-card swipe fees, restaurant
depreciation write-offs as well as rules for food donations (Perkins, 2018). For this reason, some
issues that warrant a close watch in terms of politics of the area is the work opportunity tax
credits, lodging taxes, sales taxes among others.
c) Technological Challenges
When creating a new business, the technological issues are essential to consider as they bring
about the nature of innovation in the work area. In this case, since the business is new and there
is no much capital to work with, there could be challenges in acquiring the right technology to
drive the opportunity. In the hospitality industry for instance and having this nature of the
business, it would be ideal to do digital market, advertise, create a website and well as a means

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 9
of booking and making reservations when needed. All these could come in time but are a great
challenge during the initial stages of launching the venture.
e) Environmental Challenges
In Australia, the federal, as well as local governments, can jointly work on administering the
environmental protection law. As a new business owner, it is essential to note the business laws
that apply to you depending on your location and the surrounding. For instance, in the restaurant
business, it is perfectly okay to open near other facilities such as hospitals or schools. If this
business were a liquor store, then the considerations would be different. The environmental
challenge for a restaurant is, therefore, establishing the location in which to set up.
f) Social and Cultural Challenges
The type of society in which business exists as well as the cultural challenges tend to have a
significant influence on the success of the venture. If the society and their cultural believes are
not supportive to the business, then it would be a stupid idea to set up such a business. For
instance, setting a pork shop in a Muslim community or beef joint in India. For this reason, to
avoid wasting resources, it is essential to conduct a proper study of the society in a specific area
as well as their cultures. Considering that Chinese food is part of what will be served at this
restaurant it could be a challenge in getting enough of the customer base in that area of the menu
as opposed to the common Australian food as fast food due to the society and culture of the
people of the nation.

MEDIUM-SIZED RESTAURANT BUSINESS IDEA 10
iii) How Potential Risks are Involved
In addition to all the challenges that have been mentioned above, there are a number of risks
that are involved in this nature of business. For instance, if there is a potential for a political
unrest or collapse in the economy, there should be ways to ensure that the business does not
collapse as well. One consideration that has been made in this regard is that through
diversification, the restaurant is able to continue operating regardless of the political or
economic situation. Another way of mitigating the potential risks is to monitor and review
and risk or challenge and analyze the consequences. Some risks are good for business while
others could be detrimental to the venture and thus the importance of coming up with
structures that would minimize the negative effects of risks and upscale the positive impacts
(Watkins, 2018).
Conclusion
A restaurant business that is diverse and unique such as this could go a long way if
successful. There are many challenges that could be witnessed in starting the venture such as the
capital for beginning as well as external factors that affects ant type of business. These
challenges could be political, economic, social, cultural, technological or legal. Understanding
the challenges and knowing how to best overcome them could prove useful in starting this
venture. In addition to this, risks are an essential part of any business and must be considered at
all times. They could be positive or negative. Regardless of the type of risk, they should be
involved in the considerations for starting a new venture. Risks should be strategic and
measurable at all times.

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References
Australian Government. (2018, August 14). Legal essentials for business. Retrieved September
13, 2018, from Business: https://www.business.gov.au/planning/new-businesses/legal-
essentials-for-business
Kennon, J. (2018, August 27). The 3 Primary Types of Financial Capital. Retrieved September
13, 2018, from The Balance: https://www.thebalance.com/the-three-primary-types-of-
financial-capital-357332
Maeley, L. (2018, July 4). How to Start a New Restaurant. Retrieved September 12, 2018, from
Small Business: https://www.thebalancesmb.com/how-to-open-a-new-restaurant-
2888644
Perkins, C. (2018). Political Problems Affecting the Restaurant Industry. Retrieved September
12, 2018, from Chron: https://smallbusiness.chron.com/political-problems-affecting-
restaurant-industry-62098.html
Victoria State Government. (2018, July 30). Apply for a Business Loan. Retrieved September 13,
2018, from Business Victoria: http://www.business.vic.gov.au/money-profit-and-
accounting/raising-capital/small-business-and-commercial-loans
Watkins, D. (2018). Risks Associated With Running a Restaurant. Retrieved September 13, 2018,
from Chron: https://smallbusiness.chron.com/risks-associated-running-restaurant-
20838.html