Bays Waterfall Restaurant: A Detailed Business Development Plan

This comprehensive business plan details the establishment of the Bays Waterfall restaurant in London, focusing on a unique dining experience with multi-cuisine offerings and a waterfall ambiance. The plan includes an executive summary, business overview encompassing vision, mission, core values, and objectives. A thorough literature review, research methodology, and findings are presented, followed by a detailed business environment analysis, including PESTLE and SWOT analyses. Marketing strategies, segmentation, competitor analysis, and risk assessment are outlined. The plan further covers management, operational plans, key resources, and a detailed financial analysis, including cost structure, start-up capital, and break-even analysis. The plan concludes with recommendations and references, providing a complete framework for the restaurant's success.

Business Development Plan

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
BUSINESS OVERVIEW ...............................................................................................................1
The vision....................................................................................................................................1
The mission.................................................................................................................................2
Core values..................................................................................................................................2
Business objectives.....................................................................................................................2
Product or service description.....................................................................................................3
Rationale for business idea..........................................................................................................3
Critical success factors ...............................................................................................................4
LITERATURE REVIEW ...............................................................................................................6
RESEARCH METHODOLOGY ..................................................................................................10
FINDINGS.....................................................................................................................................11
BUSINESS ENVIRONMENT ANALYSIS.................................................................................11
Pestle analysis...........................................................................................................................11
SWOT analysis.........................................................................................................................13
MARKETING STRATEGIES ......................................................................................................14
Focus for market segment.........................................................................................................14
Core Business segments............................................................................................................14
Market timing............................................................................................................................14
Market penetration....................................................................................................................14
Market development................................................................................................................15
Marketing mix...........................................................................................................................15
Segmentation, targeting and positioning (STP approach).............................................................17
Competitor analysis...................................................................................................................18
Risk assessment.........................................................................................................................20
MANAGEMENT ..........................................................................................................................22
Operational plan .......................................................................................................................23
Key resources ...........................................................................................................................24

FINANCIAL ANALYSIS ............................................................................................................25
Cost structure ...........................................................................................................................25
Start-up capital .........................................................................................................................26
Gross and Operating Margins...................................................................................................27
Profit Potential and Duration....................................................................................................27
Fixed and variable cost.............................................................................................................27
Break even analysis...................................................................................................................27
Time to break even....................................................................................................................30
Time to positive cash flow........................................................................................................30
Venture and working capital needs...........................................................................................31
CONCLUSION & RECOMMENDATIONS................................................................................31
REFERENCES..............................................................................................................................32

EXECUTIVE SUMMARY
The present business plan is based on coming up with the new business named as Bays Waterfall restaurant in London
introducing in busy location of the Bayswater, within which the market is having a concentration of the restaurants at all the levels in
order to serve all the market segments. The restaurant industry in the UK has been seen as growing strongly over the years but due the
increase in cost and poor demand of the consumer in respect to the UK's decision for leaving a European Union had reversed such
trend in the other half. The performance of an industry is been influenced by the trends in the consumer preferences because the
disposable income and the confidence of consumer has been declined in the year 2016-17 and the households resulted a increase in the
weekly expenditure on the restaurants. The study will be throwing a deeper insights towards the product and service description and
the cost volume analysis and strategies that the business will be adopting for the purpose of attaining a competitive edge against its
rivalry. Furthermore, financial projections will also be made for making the feasibility study that the business will generate sufficient
profits or not. Moreover, the report will be presenting marketing, operational and development plan that are the major elements of the
new business which leads the business towards achieving a growing success in the future and in increasing the market share with loyal
customer base.
BUSINESS OVERVIEW
The vision
Vision of Waterfall luxury restaurant is to attain growth by delivery quality food experience to consumers of different cuisines.
The vision of restaurant is based on hanging lifestyle and food preferences of people. The aim of fine dine will be on serving extra
ordinary luxurious and refreshing experience to gain people with different preferences.
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The mission
The mission of restaurant is to set luxurious environment of fine dine keeping in mind the concept of waterfall which will be
managed by focusing on the seating arrangement of restaurant. In this focus of fine die will be on privacy of guest and view of
waterfall. The restaurant will offer significantly different taste of dishes from Italy, Mexico, Afghan, Asia, Australia, Philippians and
Finland.
Core values
 Consistency in quality of services will be foremost priority of waterfall luxury restaurant. However, to main consistency of
services the managing staff of restaurant will brief guest about the different services and quality of food. This will be done to
create value of services and for serving food which will help in delivering value for money.
 Foremost priority of Waterfall restaurant will be customers and therefore will be involved in decision making like changes in
cuisines, price, quality, etc. This will help in deriving interest of potential guest and will aid in developing loyal customer base.
 Authenticity of restaurant will be another major focus of restaurant which aid in managing relationship with customers
(Hwang, Han and Kim, 2015). The authenticity standards of restaurant will be focused engaging staff of restaurant with
consumers, being honest on quality of food, test of the food quality on the basis of quality parameters.
 Group work in the restaurant play a crucial role and therefore Waterfall luxury restaurant will be focused on diving work of
staff in synchronised ay and will focus on continuous training and monitoring. This will be done to manage conflicts and maize
the risk of errors in consumer services.
Business objectives
 To attain competitive position in London against all restaurant business within 8 months.
 To increase sales of services by 5 % within 6 months
 To attain loyal customer base of at least 6 % within 1 year
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 To grow business sin London in with 3 years to increase availability of quality food and the concept of waterfall luxury fine
dine
Product or service description
The restaurant will be offering a multi cuisine dishes that includes Asian, Thai, Mexican, Italian etc with different flavours
served with unique presentation to the visitors. It will serve all types of salads, starters, beverages, drinks and main course with wide
variety and delicious taste served as the classical traditional cuisine with a flavour of different sauces. The services of the restaurant is
different in terms of its location as it will be serving the food to the visitor within the location or area where they can enjoy the
waterfall and could have a dinner. Services with regards to the payment facility will include accepting the payments through the use
of debit or the credit cards or an online payment form by making use of the payment app. The restaurant will not give online services
and provides for only in-store services where the guest or the visitors can experience the place and have their dinner and lunch with
soft music and waterfall. The restaurant will also involve photo booths for the guest at various points so that they could take good
pictures with their family and the friends that in turn creates memories. Bays waterfall will be serving the dishes to the guest that
contains a mix of Indian and Asian flavours and its menu will comprise of the dishes relating to different cuisine. Visiting the
restaurant guest could enjoy free WI-FI facility, transparent food preparation facility, DJ, Games, screening etc. so that visitors will be
enjoying all the things at one place and it induces them to visit the place on a frequent basis. It also provides natural and live dishes
that will be prepared instantly in terms of deserts, starters and Mock-tails. Such food and drink dishes are made up of the natural
ingredients with wide range of flavours that involves mint, fruit and dark chocolates.
Rationale for business idea
The fact behind choosing this business idea is to bring a unique experience for the customers by serving them food besides a
rainfall that is not been used by any other restaurants in London. In today's evolving world people prefer to go in a restaurant for
having a dinner with the family and the friends. People actually cook their foods on its own at the home but there are many of the
people specifically youth chooses to eat in the restaurant, particularly busy people. As such people do not have enough or sufficient
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time in cooking at the home, they mainly prefers to go outside and have their food. Moreover, at the time of special occasion or an
events there are many people who chooses in celebrating a place other than its home and desires to taste different kinds of the foods.
As Bays waterfall restaurant tend to be imaginative and creative when it comes to foods and waterfall experience that the business is
preparing for in comparison to other restaurant businesses in London.
Critical success factors
There are various factors that the restaurant needs to considers for attaining success in the near future or the future periods are as
follows-
Targeted marketing- For achieving success, Bays Waterfall restaurant has to make sure that its marketing strategies focuses on
its trade are, customer demographics and its buying behaviours. It needs to find several ways in measuring the success for each of the
marketing program.
Quality food- It is very important for the restaurant to focus on providing a quality food in order to ensure the good health and
safety of the guests. This in turn helps the restaurant in achieving success with well known brand value in the future periods or in long
term.
Quality services- The restaurant is said to be good as its lasts with the better customer interaction by greeting them and
offering them the best taste which meets their expectation (Chitty, D'Alessandro and Gray, 2019). By facilitating them an ease in the
services such as providing them Wi-Fi facility and the online payment services, company can attain success.
Flawless implementation- By doing all elements of an experience, it is expected from the restaurant in providing to the
customers and taking an action for providing a flawless services to the guests.
Customer data- Before opening a restaurant, it has to make a research on analysing its targeted customers that is information
relating to their demographic profile, their preferences and the needs. Thereafter, in accordance to the desire of a customer,
restaurants have to plan its strategies and setting the menu accordingly so that they will prefer to visit the restaurant on a quick basis.
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Customer feedback- It relates to encouraging the customers in facilitating the feedback at times they are been served and in
relation to the experiences that they feels regarding the services that are provided by the restaurant. This helps in attracting more
customers which leads to achievement of success in the future.
Realistic financial formula- Restaurant has to assess that its business will generate a sufficient revenues in meeting fixed cost
and a estimation of the profits after the variable cost are reduced (Alves, Fernandes and Raposo, 2016). By applying an investment
appraisal technique, it can analyze the feasibility and viability of the study which is very important for analyzing the success of the
company in the future periods.
Labour balanced as per demand- In order to open doors, a business requires evaluating basic labour needs as its cost reflects as
the fixed cost. The profits are often been squandered through the poor scheduling of the variable cost that represents an additional
labour which need to meet an anticipated demand and knowing the requirements of the labour in respect of hour and the schedule
accordingly.
Winning attitude- For gaining success, Bays Waterfall must seek for a winning attitude in terms of its staff by showing a
positive attitude towards the guest or the visitors.
Competitive advantage- It has to analyze competitor of the business who offers same kind of the services and the products to
the consumers. Bays waterfall restaurant need to check out its location, customer service, prices and significantly relating to its food
quality and menu. By identifying the creative and unique dishes that can be offered to the consumers where its competitor lacks like
better discounted prices, several cuisines with different flavours etc.
Employees- It has to be taken care by the restaurant for gaining success in the long run that highly reliable employees are hired for
running its business. In case its cooks, servers, bus-boys are not performing their job effectively then it would be charging a high cost
for the business. By setting higher standards for its employees is seen as critical factor for attaining success. By setting higher
standards for its employees are counted as the real people and not a commodity. By treating employees as a member of an
organization is very critical for retaining a best or large talent at the workplace.
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Sanitation- By keeping an entire restaurant not only clean but also sanitary is very essential for the restaurant. Floors, restrooms,
table tops and the kitchen must be disinfected with an effective solution for cleaning. Restaurant should consider a strong odour of the
cleaning chemicals so as to make sure that the substances like bleach are diluted in a well manner. It is critical that all the employees
are educated on standards of local health department and in looking towards that the business meets each of the critical factors.
LITERATURE REVIEW
To identify the growth of food industry and their impact on planning strategy for opening waterfall luxury restaurant.
According to Jang, Zheng and Bosselman, (2017), food industry is growing at approximately 5% every year. The global
expenditure on the food and beverage products are expected to reach around US$20 trillion by the year 2030. The food industry tends
to offer several benefits beyond the basic nutrition. It is considered to be one of the growing global segment within the global food
industry. According the market research done by the MCA, they sought to evaluate that, fast food industry has doubled the growth of
its products and services over the past 3 years and is expected to be worth around £9.8 billion by 2021. Lee, and Barker, (2017) sought
to analyse the fact that, the food industry is expected to be one of the largest sectors in the United Kingdom. It has led to higher
economic contribution which mainly accounts for 17% of all UK manufacturing GVA. , the restaurant business in the UK has faced
major decline in the UK restaurant market. The worth of restaurant industry in United Kingdom is estimated to be £38 billion. UK has
approximately around 86000 restaurants which tends to participate in the restaurant sector. Brits tend to spend around £18 on eating
out on a weekly average. This industry tends to play a key role in improving the functioning of the economy. It is one of the crucial
sector which tends to employ around 988,000 people within the restaurant sector. Bonn, Cho and Um, (2018) critically investigated
that, Growing food industry tends to demonstrate that, opening of innovative waterfall restaurant in the UK tends to result in
effectively carrying out several business operations with ease. This helps in offering innovative ambience with the view of the
waterfall by offering wide range of food and drinks with the scenic and eye catching view. Increase in food industry tend to result in
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expansion and establishment of various restaurants which in turn has positive impact and aids to greater opportunity to food sellers
and manufacturers. The annual growth in the sales of the UK which mainly leads to £230 billion spending on food and drink in the
United Kingdom each year. With the growing rate in food industry, UK based manufacturers are pushing boundaries for food
production by effectively adapting to the diverse customer taste and preference.
To determine the current trends within UK which affects the profitability of restaurant.
Jogaratnam, (2017) critically investigated that, there has been increasing trend associated with the total factor productivity in
UK food industry. The GVA of the food industry has increased to 2.7 in year 2016, in 2017 GVA increased to 3.9%. Increase in the
total factor productivity tends to improve the competitiveness. Kraak and et.al., (2017) argued that Veganism is considered to be one
of the increasing trend which tends to show the growing popularity to eat meatless and dairy free products within the restaurant
industry. Use of advanced and digital technology is trending which helps in enabling and managing competition within the restaurant
sector. Technology helps in reducing cost and increasing convenience and profitability for the business. Sustainability, trust and
transparency is an increasing trend which in turn largely influence the profitability business within the particular sector. Tripathi and
Dave, (2017) established the fact that, the increasing trend towards healthy eating and counting calories are considered to be an
effective measure which in turn influence restaurant to move towards producing food which are healthy and are low in calorie.
Customers tend to focus on experiencing customer satisfaction which in turn leads to higher sustainable growth. The gap between the
quality offered to the customers and the expectations of the customers tend to play a key role which largely influence the restaurant
industry. The restaurant sector must tend to focus on hiring experienced employees who can deliver effective customer experience
which in turn leads to higher customer experience. There are various key trend which in turn affects the profitability of the restaurant
is mainly associated with the weakening of sterling in order to increase the cost of the food which is sourced abroad. Increase in the
rates of the revaluation of the business in Wales and England which in turn increases the cost of the property in cities like London.
Another major trend is that, increase in the labour cost in turn largely affects the business operations.
To critically evaluate the current needs, expectations and preference of customers within hospitality industry.
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Nguyen and et.al., (2018) critically investigated that, the customer trends tend to change with time which is considered to be one
of the major factor which in turn influences the operations of the hospitality industry. The change in the preference of the customers to
visit restaurants with high interior and luxury layout largely influence the restaurant industry in UK at a large scale. Boella, (2017)
argued that, Competitors who are offering wide range of quality products and services to the customers in turn largely influence the
working of the hospitality industry within UK. This in turn hampers the performance and profitability of the business. This gap in the
changing customer needs and expectation, influence entrepreneurs of the hospitality industry to come up with the innovative idea by
effectively introducing attractive ambience, quality and delicious dish, improved hospitality services, etc. in order to engage and
attract customers from all over the world. Technologies are changing at a greater scale where they tend to choose the restaurants which
have been suggested by the friends and family members and also by the online rating of the restaurant. This in turn largely influence
the preference of the customers while choosing particular restaurant. There is an increasing customer demand for home delivery of
food by making orders through online mobile application and personal website of the particular restaurant brand. Jang, Zheng and
Bosselman, (2017) sought to analyse the fact that, Customers tend to prefer clean environment where they tend to have positive,
soothing and ravishing experience. Customers tend to prefer that, they must be treated with mutual respect and timely services in order
to deliver effective services to the customers. This helps in attracting large number of customers from across the globe which in turn
leads to higher professional growth and sustainability of the business. Enhancing the customer experience in turn helps in setting
accurate picture in the minds of the customers from across the globe. Customer expectation within the restaurant industry helps in
delivering perceived value to the customers in order to seek benefits while availing goods and services from the specific restaurant. In
order to improve the customer expectation and bridge the gap, the restaurant industry tends to focus on upgrading the loyalty program
by giving customers effective customer discount. Boosting up and prioritizing guest security and safety helps in mitigating the needs
and expectations of the customers within the hospitality industry.
To analyse the challenges faced by waterfall restaurant in planning stage of business development plan.
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Tripathi and Dave, (2017) said that, Restaurant business can seem to be a very easy market to break in, however things can take a turn
when opening a waterfall restaurant. Many unseen challenges come in the way which require unique strategies to solve. Dealing with
the changing market trend and mitigating the needs of the customers are considered to be one of the key measure which are considered
to be one of the major challenge faced by the restaurant business in the UK. Kraak and et.al., (2017) argued that, Capital investment
can also become a problem as a waterfall as to created artificially which costs huge capital and if it is constructed on a natural
waterfall then a permit may be required from the government to operate which takes a huge toll on earnings and can hinder long term
financial goals.
The ambience of a restaurant is a key aspect which is deciding factor for a customer. Some people may like the sound of a waterfall
but some may hate it as the sound of water can be too much distracting for some customers . The water may also attract insects like
mosquitoes ,moths and other water breeding insects. Pest control can become very tricky and the reputation of the restaurant can
decrease dramatically if any customer gets an insect in the food . It can potentially affect the entire business and customer trust
forever.
Jang, Zheng and Bosselman, (2017), critically investigated that, All the restaurants nowadays efficient air ventilation systems
that purify air and put fragrance in the air. It is very difficult to achieve with a waterfall restaurant as water can have a pungent smell
and if water is not replaced or replenished timely then it will have a foul smell that is a deal breaker and in the cut throat competition
in the restaurant business this means shut down . Its architectural layout is also problematic as the ground near a natural waterfall will
contain big hard rocks that are risky and difficult to get rid of . The land itself is muddy and unfit for high building constructions.
Therefore structures have to be built with high quality material that is generally more expensive and harder to maintain. Also
structures have to built with furniture that is waterproof and does not rust. If materials are not rust resistant then they will corrode over
time and will cause loss of property which is not a problem in traditional restaurants. Another major challenge is associated with the
rivalry competitors which in turn largely influence the operations and setting up of the waterfall restaurant business.
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