Innovation and Entrepreneurship: Business Idea Report

This report details the development of a new business idea for a themed restaurant, "Ice N Spice," focusing on innovation and entrepreneurship. The report outlines the business idea using the Business Model Canvas, covering key partnerships, activities, resources, value propositions, customer relationships, channels, customer segments, cost structures, and revenue streams. It then presents a comprehensive business plan, including market analysis using the PESTLE framework, industry analysis using Porter's Five Forces, operational details, and a SWOT analysis. The market analysis evaluates political, economic, social, technological, environmental, and legal factors impacting the restaurant. The industry analysis assesses the threat of new entrants, bargaining power of buyers and suppliers, threat of substitutes, and competitive rivalry. The report emphasizes the importance of location, customer satisfaction, and online delivery systems. The SWOT analysis identifies the strengths, weaknesses, opportunities, and threats for the themed restaurant, providing a complete overview for the business venture.

INNOVATION AND
ENTREPRENEUR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1 Business Idea Development.............................................................................................3
Task 2 Business Plan...................................................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is the applicator execution of ideas that comes forward along with the
outcome of introduction of new or innovative goods and services or improvement in products
offered by the company (Kahn, 2018). In context of entrepreneurship, an entrepreneur have to be
like easy adoptable, risk taker and quick at the time of searching for milestones on the path of
success. Candidate will able to improvise their work without any extra efforts with the help of
pushing their boundaries.
This report will consist of development of new business idea in order to start new themed
restaurant. Along with the business idea development, this report will also highlight the
evolution of business plan.
MAIN BODY
Task 1 Business Idea Development
Business idea development is a concept that can be used for financial advantage that is
usually based on certain product and services that has been offered by the company in return of
money. An idea generation is the primary stage in the process of structure a booming enterprise
(Ojasalo, 2018). The major characteristic of appropriate business idea is their innovative and
unique nature. The business idea of introduction of themed restaurant has been explained with
the help of Business Model Canvas which is a business model that enables the company to
describe the reason of the way in which an organization generates, delivers and gaining control
over values. There are nine constructive steps that describes the business model effectively are: Key Partnership: The key partners of themed restaurant i.e. “Ice N Spice” are the
restaurant equipment suppliers, consultants, food suppliers, investors, famous and well-
known chefs, food vendor markets, lawyers, restaurant designers food bloggers, PR firm
and restaurant investors. Key Activities: The key activities of the restaurant is that it starts functioning as full
themed service restaurant along with providing restaurant space for displaying theme
concept effectively (Sparviero, 2019). Another activities include providing platform to
develop and intensify theme concept to become famous in addition to provide effective
training and resources to restaurant entrepreneur.

 Key Resources: There are four major variety of resources which affects the restaurant
business is physical resources which includes restaurant space and point of sale system
which describes the main computer linkage with various checkout terminals and
supported by different hardware. Next is human resources which includes skilled
employees along with restaurant operators (Medina-Salgado, 2020). Third is financial
resources in which equipment lease line has been covered and the last one is intellectual
resources which includes the brand value of the restaurant. Value Proposition: There are different value of restaurant to different persons i.e. value
to customer includes developing, experimentation and processing themed restaurant
concept in a low risk financial environment, equipping physical restaurant space,
transaction of effective or high level data, connecting the concept based teams with an
experienced support system network, providing high quality dining experiences,
providing a platform for key feedback, allowing frequenters to feel as a part of the
development process and offering supportive special event services to them. Another one
is value to investors which includes examination concept teams that have a higher
likelihood of success (Carter, 2020). Customer Relationship: For effective customer relationship the entrepreneur have to
develop concept based teams which includes dedicated personal assistance, communities
of other concept based teams and co-creation of new themed restaurant. Another one is
restaurant supporters which considers communities who give permission for reviewing
the restaurant theme concept and ability to co-create on next new restaurant concept. Channels: The channels involved in the themed restaurant is for recruitment outreach
who tries their best to select highly efficient employees within the restaurant and also
develop brand awareness campaigns with the help of food blogs, magazines, newspaper,
etc. Customer Segments: Customers segmented into multi sided platform and restaurant
supporters. Multi sided platform includes recent pass out hotel management students who
do not have any business experience but have advanced and complete knowledge about
the taste and preferences in recent scenario, candidates who have business idea but no
formal experience and wants to invest in some business activity also will be involved.
Restaurant supporters involves the customers who have mass market in urban area or

work lunchtime crowd of working customers and people who order in for dinner or
picking up dinner on their way to home while returning from their office (Nguyen, 2017). Cost Structure: Cost structure includes the restaurant space rent and equipment costs,
food costs, salaries, advising fees, public relation or marketing fees, point of sale system
fees and change over costs which describes each time switches made between offered
products and food items by restaurant (Ladd, 2018).
 Revenue Streams: Revenue streams includes renting fees charged to themed restaurant
concept teams for restaurant space, revenue share framework of restaurant food sales to
restaurant supporters and equity ownership of theme based team members.
Task 2 Business Plan
Business plan is a formal written document consists of goals and objectives of the
business along with the methods for attaining those goals within the prescribed time-frame.
Business plan includes various stages such as:
Stage 1- Market Analysis
Market analysis is a way to study market or gather information about the customers
preferences, similar industries, competitors and other market variables as well. Here the market
analysis for the theme based restaurant i.e. “Ice N Spice” has been evaluated with the help of
PESTLE. Description are: Political Factor: The political factors influences greatly the restaurant as the government
wants to have influence over the business activities, and they announce various rules and
regulations from time to time in order to take care of the customers' health. The
government have to check the standard of cleanliness in the restaurant along with
following the rules i.e. tax rates, labour laws, etc. The quality of food and food
ingredients also has been checked by officers quite some times because the preservation
of food is also very necessary by keeping the place clean and tidy. Government also
imposes some employment laws for safety of employees working within restaurant and
also ensures the environmental regulations in order to adhere environment policies in
order to follow trade restrictions appropriately and political stability to maintain food
standard (Liu, 2018).

 Economical Factor: With the economic changes, the stable growth of the income of
customers also enhanced. If the economy of any country is strong then the industry can
flourish there quite rapidly. With the increase in demographic factors the customers are
more able to go for food outside their home premises i.e. at restaurants (Adelakun, 2020).
On the other hand, implement of taxes on the consumers items results in enhancement of
rate of food items at restaurants. But along with the increase in lifestyle of consumers, the
people are bale to spend more on such kind of activities. Social Factors: In context of social sector, it has been analysed that people are now
becoming more aware about their food habits. People look for good quality of food items
and increase in population gives an opportunity to restaurant business to spread
worldwide in order to serve consumers (Mazumdar, 2018). With the enhancement of
lifestyle, in certain cities people like to dine out and enjoy their meals outside. Technological Factor: In context of technological changes' restaurant nowadays use IT
technology for their publicity. With the advancement of technological factors, restaurant
will able to give the detail of food items along with their speciality on digital media in
order to grab the attention of consumers. Customers are able to get information related to
food item availability online as well (Smarandache, 2018). With the help of effective
research and development activities business automation also increased. In order to
promote “Ice N Spice” restaurant effectively, mobile delivery system has been
implemented through which restaurant staff will able to provide mobile delivery facility
to their customers. Environmental Factors: There are various ecological environmental factors which are
implemented on the customers of the food companies. The government have made
various rules and regulations in order to keep the food healthy and nutritious for the
health factor of the people. All the business activities within the environment have more
or less contributes in the environmental problems and all businessmen have to take
necessary actions in order to minimize the effects.
 Legal Factors: The restaurant have to fulfil certain rules and regulations related to wages
and welfare of their employees to make them feel important and satisfied. Also have to
adopt overall lawful atmosphere with keeping the high food quality.

From the above market analysis it has been identified that the target market of the theme based
restaurant i.e. Ice N Spice is majorly the medium class customers of UK which prefers to dine
out for lunch and dinners and also at weekends with their family, friends and individual as well.
The restaurant business give their maximum values in order to provide extra value services such
as parking facilities, free Wi-Fi, etc. in order to make their customers satisfied with their
surrounding facilities along with food. The location has been selected for Ice N Spice is the
centre of the city which highly able to attract the customers attention and also easy to approach
place for everyone (Hopper, 2018). According to the demographic factor, the restaurant target
young age group of people in order to make the business successful.
Stage 2- Industry Analysis
Porter's five force is the valuable tool in order to understand the dynamics of the themed
restaurant: Threat of new entrants (Medium): One possible way in which new entrants attain cost
advantage in this industry is through making bulk purchase and getting discounted prices.
However, the high fixed cost is still a concern for new players in a manner to manage
their operation despite having low profitability at the primary stage. Bargaining power of buyers (Medium): Buyers hold the power to influence the pricing
decisions of the company, so as the restaurant industry as well. Changes in prices, items
offered by restaurant, quality of items, etc. are some factors which affect the buyers
decision (Genoveva, 2017). Bargaining power of suppliers (Low): The region in which the Ice N Spice offer services
includes various number of suppliers of similar raw ingredients, due to which the
suppliers have lower power. Threat of substitute products (High): The restaurant industry have various options
within the market space makes it easier for the customers to make a choice while
switching from one restaurant to another. The ease of switching make it high risk for
restaurant owners of substitute products.
 Competitive rivalry (High): The restaurant industry have high rivalry of threat due to
which sometimes it becomes difficult to maintain high profitability for restaurants who
start their business activities initially (Gurung, 2018).

Stage 3- Operations Detail
The Ice N Spice restaurant is basically a theme based restaurant situated in centre of the
city premises which helps the entrepreneur to attract more and more customers towards their
business. The location is chosen by the entrepreneur is near a soothing view which draw
attention of more customers towards the restaurant so that they can feel relaxed while sitting and
having their food over there (Gürel, 2017). Spacious parking facilities also has been given to the
visitors along with online delivery facilities in order to serve the customers while sitting at home
as well. Restaurant owner spend large amount of money on the website of the restaurant in which
all the features has been included which satisfies the customers through each medium. External
factors also has been taken into consideration while starting the business activity which satisfies
the customers through various medium such as prices, food variety, theme, soothing
environment, relaxed ambiance, nice view, comfortable sitting structure, etc. Restaurant building
and premises has been developed in a manner which attract attention of large amount of
customers.
Stage 4- SWOT Analysis
Strength
 Effective price range
 Clean and tidy
 Premium location
 Presentable environment and side view
 Better services than others
 Wide variety of products available
Weaknesses
 New establishment
 Limited funds available
 Time consumed in order to build brand
image
Opportunities
 New residential development nearby
 New market in the premises
 No same theme restaurant in the city
 Expansion
Threats
 Big brands in similar area
 Increment in operational cost
 Reduce prices by competitors
 Another might copy the same concept

Stage 5- Financial requirements
Buget
Requirements Cost in £
Construction cost 5000
Furniture 1500
Kitchen \ Bar equipment 700
Signage 200
Point of sale \ Office electronics 350
Security 550
Music system 100
Liquor licence 300
Insurance 500
Small-wares 150
Opening inventory 500
Pre-opening hiring\ training 1350
Web development 1400
Social media setup 400
Opening marketing cost including PR, social
media
500
Initial operating capital 1500
Total £15000
Estimated cost of sale and selling price table of theme restaurant
Dishes Estimated cost of sale in £ Expected selling price in £
Roast chicken 30 60

Fish and chips 15 25
Shepherd pie 25 50
Full English breakfast 35 65
Bangers and mash 30 45
Haggis 20 45
Ploughman's lunch 25 56
Lancashire hotpot 25 55
Apple crumble 15 38
Cream tea 10 25
Mashed potatoes 15 40
Liquor 50 150
Soups 35 55
Beans on toast 15 40
Roast pork 25 50
Whole scampi 35 70
Lemon chicken 40 80
Tuna mayonnaise sandwich 30 68
Smoked haddock 30 45
Al Chigae 24 56
Hot cross bun 25 50
Mineral water 10 25
CONCLUSION
From the above report it has been concluded that while developing any business idea new
and innovative thinking plays a vital role. In this file a theme based restaurant has been opened

by the entrepreneur at the prime location of the city i.e. UK which has been described on the
basis of development of business idea and business plan which describes the different analysis
along with SWOT and budget synthesis.

REFERENCES
Books and journals
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4),
p.116.
Adelakun, A., 2020. Should Porters Five Forces have value in Businesses today. Computing for
Business (BSC) Aston University Birmingham.
Carter, M. and Carter, C., 2020. The Creative Business Model Canvas. Social Enterprise
Journal.
García-Muiña, F.E., Medina-Salgado, M.S., and Cucchi, M., 2020. Sustainability transition in
industry 4.0 and smart manufacturing with the triple-layered business model
canvas. Sustainability, 12(6), p.2364.
Genoveva, G. and Siam, S.T., 2017. Analysis of Marketing Strategy and Competitive
Advantage. International Journal of Economic Perspectives, 11(1).
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Gurung, S.K., 2018. Fiseability study of nepalese fast food and restaurants in Tampere region.
Kahn, K.B., 2018. Understanding innovation. Business Horizons, 61(3), pp.453-460.
Ladd, T., 2018. Does the business model canvas drive venture success?. Journal of Research in
Marketing and Entrepreneurship.
Liu, P. and Tse, E.C.Y., 2018. Exploring factors on customers’ restaurant choice: an analysis of
restaurant attributes. British Food Journal.
Nguyen, T.T., 2017. Management education as an industry and MBA as a product: revisiting
joint MBA programs using Porters five forces model. Global Business and Economics
Review, 19(3), pp.356-377.
Ojasalo, J. and Ojasalo, K., 2018. Service logic business model canvas. Journal of research in
marketing and entrepreneurship.
Sinha, N., Chaudhuri, H.R., and Mazumdar, S., 2018. Market-mediated authenticity in culturally
themed culinary space. Qualitative Market Research: An International Journal.
Sparviero, S., 2019. The case for a socially oriented business model canvas: The social enterprise
model canvas. Journal of Social Entrepreneurship, 10(2), pp.232-251.
Zhang, J. and Hopper, D., 2018. Facebook used as an active marketing channel to expand
customer base at a restaurant.
1