Business Plan Report: BRIT Foodie Restaurant in London, EBD Course

This business plan provides a detailed analysis for BRIT Foodie, a fast-food restaurant situated in London. The plan encompasses a comprehensive overview of the business, including a description of the target customer base, services offered, and the competitive landscape. It delves into the macro and micro environmental factors, market and industry analysis using Porter's Five Forces, and a thorough competitor analysis. The plan outlines marketing and pricing strategies, operational plans, and a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. Furthermore, the report addresses financial requirements, including cost structures, to ensure the restaurant's viability and success in the competitive London market. The report concludes with a summary of key findings and recommendations for future growth and development.

EBD-BUSINESS
PLAN

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business detail.................................................................................................................................1
Macro Environmental Overview......................................................................................................1
Market & Industry Analysis.............................................................................................................3
Competitors analysis .......................................................................................................................4
Marketing & Pricing strategy ..........................................................................................................4
Operational Plan...............................................................................................................................5
How the product/service will be produced and what facilities or equipment are needed. .........5
Give details on the location of the premises, transport links :....................................................5
General site information, external considerations, building, parks and premises details. ........5
You also need to mention any legal considerations with respect to the business or premises.. .5
SWOT Analysis...............................................................................................................................6
Opportunities:..................................................................................................................................7
Financial requirements.....................................................................................................................7
Cost structure:..................................................................................................................................7
CONCLUSION .............................................................................................................................11
REFERENCES.............................................................................................................................11

INTRODUCTION
Business plan is define as a formal document which contains goals, objectives, methods
of how these goals can be attain and time frame in which these goals can be achieved. It
describes nature, background, financial projections and strategies that are intended for implement
for achievement of targets which are stated (Katz, 2018).
In this report new business named BRIT foodie , which is situated in London. This
business mainly deals in fast food restaurant which is for middle class and upper class citizen. It
mainly centre stated organisation which attracts potential customers.
This report covers Business detail which involves summary of needs of customers by
including services & products which are offered by company. Micro & macro environmental,
market & industry, competitors, marketing & pricing strategy. Operational plan, SWOT analysis
and financial requirements of business.
MAIN BODY
Business detail
This business plan includes BRIT foodie Restaurant which is situated in London. In this
firm almost 15 employees are working which have efficient knowledge about how to run a new
business. They are high skilled labourers which covers all part of business and they work in
effective manner for gaining profitability and attraction of potential customers.
Customer needs is a main aim or motive which prompts a customer to buy a service or
products. Need is considered as driver of customer's decision of purchasing. This BRIT foodie
restaurant offers food which are mainly fast food by online and offline medium. As customers
mainly looking for services or products which are fast and cheap (Alonso-Vazquez, del Pilar
Pastor-Pérez and Alonso-Castañón, 2018). So this restaurant offers food for both upper & middle
class people. This business expected to grow in market segment because taste and preferences of
people in relation to food are changes. So when firm provide quality of services this will attract
more customers.
Macro Environmental Overview
PESTEL ANALYSIS : It is a framework for examining influential conditions and forces
in a given environment. This framework have regards to political, economic, social,
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technological, environmental and legal dimensions which helps in identified the changes that can
be assessed and identified. Below is macro environmental overview of BRIT foodie restaurant
are discussed: Political factors: These factors have great influence on restaurant business in London.
There are many factors which includes in political such as health & safety guidelines and
tax reforms. In terms of BRIT foodie restaurant, managers are follow all regulations
which minimises the impact from cooking, purchasing, packing to delivery and all
services which are provided in restaurant services (Jukova and et. al., 2019). Economic factors: In London where respective restaurant is opening there inflation rate
affects prices of ingredients. So mainly prices of products are high but quality food is
considered as best. On other hand price on food menu is relevant as in London consumer
disposable income is more so they can afford all types of prices on food. Social factors: These forces have indirectly or directly have impact on business. As now
a days people are becoming more conscious about their health. This means as now people
of country prefers to organic food instead of junk food. This factor of social affects the
restaurant menu. Technological factors: This factor is considered as most dynamic factor of Pestel
analysis. Due to rapid advancement in technology this have impact on restaurant
business. In terms of BRIT foodie restaurant, there are several technological factors
includes such as CCTV cameras, accounting software, check ins and check out & so on. Environmental factors: This factor includes both internal and external environment
forces of respective restaurant is very important for considering. This firm mainly uses
indoor plants and on regular basis there is cleanliness facility is done. Company try to
recycled materials and also implemented proper food waste management policy. With
this there is a loyal customer base is obtained (Götz, 2020).
 Legal factors: These factors mainly includes local and legal bodies of London. So in
country there are many legal authorities which frequently visits different areas of food
restaurant such as kitchen, quality of food, staff and other conditions which is related to
hygiene factors.
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Market & Industry Analysis
Porter's Five forces analysis: This analysis have five forces which determine
competitive intensity and attractiveness of market segment. These forces helps business to shape
it and every market place and also determines intensity of rivalry and productivity. In terms of
BRIT foodie restaurant these forces are discussed below: Threat of new entrants:When new restaurant is opening it requires moderate level of
investment which helps in easy for entering into industry. Due to economies of scale this
can established the production and other operations in effective manner. In terms of BRIT
foodie restaurant, there is high threat of new entrants as customers prefers always to go
to new food sector in which they are potential (Xu, 2020). Bargaining power of buyers: The bargaining power of buyers are important factor
which are considered when new business plan is implemented. As buyers have power for
influencing the pricing decision for organisation, the restaurant is also affected by buyers
switching behaviours and their choice. In terms of respective restaurant, there is high
bargaining power of buyers as they switch to other restaurant due to high prices in menu
card. Bargaining power of suppliers: In this factor suppliers mainly includes organisation
which offer raw material to restaurant. The number of suppliers in industry are
determines for influencing the supplier that have on purchase decisions. In terms of BRIT
foodie restaurant, there is high bargaining power of suppliers because of limited order
which are generating in restaurants. Threat of substitute products: The restaurant industry have various entities which helps
in making it easy for customers for choose while switch from one industry from other. In
terms of respective restaurant, there is high threat of substitute products, as now people
are becoming foodie so they have to make proper products or quality products that
attracts customers.
 Competitive rivalry: As in terms of restaurant, there are higher number of competitors so
this leads to high competitive rivalry (Masciocchi, 2019). These players have to strive at
high market share by rivalries they have to make high quality products which attracts
customers. In terms of respective restaurant, there are high competitive rivalry as in
London there are many restaurant are open so company have to make sure that products
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or services which is offer to customers must be in quality. This leads to hard for
organisation for making profitability in high level.
Competitors analysis
This analysis in strategic and marketing management which helps in assessment of
strengths and weaknesses of potential and current competitors. In terms of BRIT foodie
restaurant, there are many competitors in London in terms of competitive analysis. There are
high competitive environment in this country. As people now become foodie they always prefer
to crunchy food. Competitors product mainly includes junk food, crunchy, crispy food so
respective restaurant are also pitched in relations to competitors (Nicolò, 2018).
Mainly in restaurant customers of age between 16-40 are considered. As these age group
people are attracted for food so restaurant industry mainly involves customers as they are
attracted towards quality of foods so they always prefer to eat healthy food and hygiene food.
Marketing & Pricing strategy
Marketing strategy: These strategy are long term forward looking approach and also
overall game plan of any organisation which have fundamental goals of achievement of
sustainable advantage by understanding wants and needs of customers. There are many types of
marketing strategies is business to customer which are discussed such as paid advertising which
mainly includes many types of advertisement such as tv adds and so on.
There are four types of market segmentation: Demographic segmentation: This type of segmentation mainly includes splitting
audiences on basis of age, sex, family size, nationality, religion and so on. Combining the
demographic segmentation helps to narrow down the market more. There is a benefit of
this segmentation as information can be easily obtain by low cost. Behavioural segmentation: This segmentation mainly based on behaviour of customer's
regarding the products. These behaviours mainly includes online shopping habits, loyalty
and so on. Geographic segmentation: This segmentation mainly includes splitting market on based
on their locations is basic but this element is consider as highly useful strategy (Moro
Visconti, 2019). There are many geographical segmentation are considers such as
country, state and son.
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 Psycholographic segmentation: This segmentation mainly deals with characteristics that
are more emotional and mental. These attributes are not easy for identifying such as
personality traits, beliefs, interests, lifestyles and so on.
From above segmentation demographic strategy can be undertaken.
There are many markets which are targeting for business.
Pricing strategy: These strategies determines price of company to their products. There
are many pricing strategies which is based on target customer segment, competitors and market
analysis which are discussed below:
Penetration Pricing: This is a marketing strategy which is used by business to attract
buyers for there new products or by offering a low price in their initial services. In terms of
restaurant, the goal of this strategy is to attract new customers for try new products (Tipu, 2019).
Operational Plan
How the product/service will be produced and what facilities or equipment are needed.
The business produces its services as with this they have manufacture their products and
services as with this relative services are processed in systematic manner. The product which are
produced by the restaurant is food related with cuisine and cultural dishes etc.
Give details on the location of the premises, transport links :
This restaurant having their location in city mall UK linked with railway station so its easy to
the customer to reach the restaurant by ease and that will be the edge for the BRIT foodie to ease of
location for the customers .
General site information, external considerations, building, parks and premises details.
The site of information regarding the restaurant is in city near the multinational complex to reach the
customers base in large with nearby of central park .
You also need to mention any legal considerations with respect to the business or premises.
The legal considerations which are taken by the restaurant in respect of the customer serving is that to
deal in the organic product by safety in respect of quality servicing to their customers ,food
safety ,traceability and packaging regulation taken into consideration.
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SWOT Analysis
This analysis works on the principle of determining the organisation or company with a view to
determine the internal and external factor which will defines the
strength,weaknesses ,opportunity and threats on the basis of working structure of the
organisation. This will leads to the effectiveness in the company by determining the company
status where they are properly stronger and where they should adopt the changes in according to
deals with their weaknesses all the factor related to the internal sources are considered with the
strength an d weaknesses and external factor includes the opportunities and threats for the
company or any industry (Hopp and et. al., 2018). By getting SWOT analysis lots of operational
activities will be implement quite effectively with a view to achieve the specific target and goals
which are considered with the industry ,so there is a SWOT analysis of the food industry a
restaurant BRIT foodie through understanding their internal as well as external factors in the
market is that:
Strength :
 Due to their nature of business is that food industry which attracts the customer in large
and because of their recent start up lots of new foods stuffs are serving by this BRIT
foodie restaurant this will leads to generate more customer base for them their strong
value is a local taste with the serving of complimentary deserts to each customer .
 Strength of this restaurant is there different dishes segment is that they are offerings
different culture food like Asian dishes and American dishes too by the motive to serve
customers from other countries by which they are getting more popular in other countries
too. This is the USP of this start-up.
Weaknesses:
 Due to their newly entrant food restaurant in the UK large customers are move to existing
restaurant in the market and because of their new start-up plan this will take time and
even losses will emerge in this business due low margins of profits (Rocafull Piqueras,
2018).
 This food industry will not able to cope up with the different customer taste and
preferences due to the start up this BRIT foodie will not arrange that much in the
restaurant.
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Opportunities:
1. This industry will work for the attainment of as much customer as they can by offering
them more services by discounting on foods product giving complimentary services will
provide to the customer this will enhance the awareness in the customer mind by low
price on their food product as compared to the existing restaurants in the city .
2. After analysing the food market what sort of requirement that customer need in respect of
taste and preferences for food stuffs is that by providing the sample segment of food to
the local customers.
Threats:
 Existing food industries is the main threats for the BRIT foodie because start-up need a
good amount of funds to run their business in respect of changing needs of the changing
needs of the customer they have to act accordingly.
 If other new start-up business will also enter in the market of food industry that will be
the competitor threat for this restaurant.
Financial requirements
Cost structure:
Particulars 2020 2021 2022
Variable costs
Salaries to staff 10000 55000 52000
Advertisement 5000 28000 25830
Rent of building 5000 28000 21800
Fixed costs
Equipment 20000 60000 58000
Cost of material 30000 80000 72000
Total cost 70000 251000 229630
Revenue stream:
Particulars 2020 2021 2022
Selling of ingredients 35000 150000 152000
Online bookings 25000 95000 96000
Advances from clients 20000 51000 52000
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Further developments 20000 50000 50000
Total revenues 100000 346000 350000
Break even analysis: It has been estimated that cost of one designer cost will be around 5
pounds and in first year 20000 ingredients will be designed. So, the calculation of BEP is as
follows:
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 4
= 12500 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 80%
= 62500
Second year
BEP in units
= 140000 / 7.83
= 17880 units
BEP in Pound
=140000 / 67.92%
= 206125
Third year
BEP in units
= 130000 / 4.64
= 28017 units
BEP in Pound
=130000 / 71.53%%
= 181742
Calculation of contribution:
Formula = Sales – variable cost / total units
First year:
= 100000 – 20000 / 20000
= 4
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Second year:
= 346000 - 111000 / 30000
= 7.83
Third year
= 350000 - 99630 / 54000
= 4.64
Calculation of PV ratio:
Contribution / sales *100
First year:
= (100000-20000) / 100000 * 100
= 80000 / 100000 * 100
= 80%
Second year
= (346000 – 111000) / 346000 * 100
= 235000 / 346000 * 100
= 67.92%
Third year
= (350000 – 99630) / 350000 * 100
= 250370 / 350000 * 100
= 71.53%
Cash flow analysis:
Particulars 2020 2021 2022
Receipts
Selling of ingredients 35000 150000 152000
Online bookings 25000 95000 96000
Advances from clients 20000 51000 52000
Further developments 20000 50000 50000
Total receipts 100000 346000 35000
Payments
Salaries to staff 10000 55000 52000
Advertisement 5000 28000 25830
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Rent of building 5000 28000 21800
Equipment 20000 60000 58000
Cost of material 30000 80000 72000
Total payments 70000 251000 229630
Cash at the end 30000 95000 120370
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