Detailed Business Plan for Brag Cafe & Restaurant Venture

The provided document is a detailed business plan for Brag Cafe & Restaurant, a new venture aiming to offer a unique dining experience. The plan includes an executive summary, vision, mission, and goals. It presents a SWOT analysis, marketing strategies, sales, and customer management approaches. The business plan includes financial forecasts, such as set-up costs, profit and loss, cash flow, and balance sheet projections. It also covers the competitive landscape, target market, and pricing strategies, providing a comprehensive overview of the restaurant's operations and strategic direction. The plan outlines the products and services, business organization and financial structure, premises, equipment, information systems, intellectual property, and licensing. This document thoroughly analyzes the business environment, market competition, and financial forecasts to support the venture's success.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Executive summary
The report widely discusses the business plan of a new venture of restaurant and
café named, Brag café and restaurant. The report includes the marketing strategy of
the new venture; it includes the innovative strategy as well. It includes the financial
calculation that gives a brief idea of the investment that is required for the new
venture. The report analyses in detail the marketing strategy and the pricing strategy
that the company should adopt. Brag café and restaurant is innovative as it holds the
concept of fine dining as well as the café which will have new styles of beverages
and they will have customized drinks for the customers that will increase their market
trend.

2STRATEGIC MANAGEMENT
Table of Contents
Business environment............................................................................................................2
Vision, mission and goal.....................................................................................................2
Products and services........................................................................................................2
Business organizations and finance structures..............................................................3
SWOT analysis....................................................................................................................3
Premises, plant and equipment.........................................................................................4
Information system and telecommunication....................................................................4
Intellectual property, licenses and memberships insurances.......................................4
Goals, milestones, strategies................................................................................................4
Goals and milestones.........................................................................................................4
Marketing..............................................................................................................................4
Sales......................................................................................................................................5
Customer management and retention..............................................................................5
Pricing....................................................................................................................................5
Suitable business strategy.................................................................................................5
Business competition..............................................................................................................6
The industry..........................................................................................................................6
Target market.......................................................................................................................6
Market competition..............................................................................................................6

3STRATEGIC MANAGEMENT
Five forces............................................................................................................................6
Financial forecasts..................................................................................................................7
Set-up cost............................................................................................................................7
Profit and loss forecast.......................................................................................................9
Cash-flow forecast...............................................................................................................9
Balance-sheet forecast.....................................................................................................11
Break-even analysis..........................................................................................................12
References.............................................................................................................................15

4STRATEGIC MANAGEMENT
Business plan of brag café and restaurant
Business environment
Vision, mission and goal
The report is a business plan that includes the new venture of a restaurant
named, Brag café and restaurant. The vision of the venture is to set up a good café
and restaurant that would have an ideal environment to spend time with friends and
family. The venture is a joint venture and the aim of the venture is to create a place
of hang out that will have quality environment as well as quality food.
The venture would include the mission to have huge amount of patent
customers and the company intends to serve the customers with best food and best
service. The mission of the company is make the venture a successful one and to
make maximum amount of revenue.
The goal of the company is to become a leading and most famous restaurant
and café in UK. The venture is initially launched in the suburb area of UK. The goal
of the company is to launch the restaurant in other parts of the country.
Products and services
The products of the venture are good food and good environment. The food
includes various cuisines; more concentration is laid on the cuisine of UK. The
restaurant plans to have a stage that will be utilized to have regular performances by
the artists. It would have also had different sports activity like pool, billiards where
the clients would feel relaxed.

5STRATEGIC MANAGEMENT
Business organizations and finance structures
The business requires a little high investment in the beginning. It requires
huge investment to set up one branch. The area in which the investment is required
is the investment in setting up the shop that is in the place where the shop is
intended to launch. The other investment are planned for the equipments that are
required for the venture that is the tables, chairs, the maintenance of the staffs, the
annual tax, the investment required to purchase the raw materials and similar other
requirements (Krishna, 2014).
SWOT analysis
The strength of the company is that it has the unique concept of having
restaurant as well as the café. It has a place that is made for the amusement of the
customers which is a unique idea.
The weakness of the company is that it is located in the highway near the
suburb. The company has no branch for which it might not have huge profit in the
beginning.
The company is located in the highway which has the opportunity to attract
many flying customers.
The biggest threat of the company is it has many competitors. There are
many restaurants and cafés in the same area (Truc, 2017).
Premises, plant and equipment
The restaurant has planned to recruit highly skilled chef, the executive
manager and it has planned to equip the restaurant with well designed interior. The

6STRATEGIC MANAGEMENT
restaurant has planned to have peaceful premises having the facility of different
forms of entertainment like sports and music.
Information system and telecommunication
The restaurant has planned to register itself in different food apps where the
customers can book the table or order online food from the restaurant through the
app. It plans for a digital progress.
Intellectual property, licenses and memberships insurances
The restaurant would have trade license that would enable the company to do
business in a legal way. The logo of the company should be registered under the
trademark so that it cannot be copied by other company. It should be renewed every
year (Ketchum, 2016).
Goals, milestones, strategies
Goals and milestones
The company aims at bringing a new and innovative concept of café and
restaurant. The goal of the company is to attract maximum crowd and make the
concept famous. The ultimate goal of the company is to make huge profit from the
new venture and create milestones.
Marketing
The company intends to have an effective advertisement plan. The
advertisement would include the advertisement would be done in the social media,
newspapers and hoardings. Apart from this it would include the promotional offers
that the clients would enjoy. These are the marketing strategies that would attract
maximum amount of clients to the restaurant (Hermann, 2015).

7STRATEGIC MANAGEMENT
Sales
In order to increase the sales of the company, it has to promote the products
more and it has to concentrate on the quality of the product. Apart from this it has to
plan for additional discounts to the customers (Sharafutdinova, 2016).
Customer management and retention
In order to manage the customers the company should customize their
product. They plan to offer variety of choice in the cuisines. The café would have
attractive choice of beverages that would majorly attract the college students. The
usual cuisine would not attract customers. This is the reason the restaurant and the
café plans to have cuisine of different choices.
Pricing
The restaurant plans to keep the cost of the food low and medium so that it
can be afforded by all types of people. It can be afforded by the people who are
working and as well as by the students (Roundy, 2017).
Suitable business strategy
The business strategy would include strategic market entry into this industry
by bringing an innovative plan of café and restaurant. The company plans to have a
different area of café and a different area of restaurant within the same premises.
The business strategy of the restaurant includes having variety of cuisine at
affordable price. It would include a planned pricing strategy, product strategy and
innovative strategies that would make the company popular (Burns, 2016).

8STRATEGIC MANAGEMENT
Business competition
The industry
Restaurant and café industry has remained a popular industry. This has
become a trendy industry and it intends to be more famous and popular with the
passing years. In the busy world every individual intends to spend some quality time
with their family. There has been an increase in the number of working women as a
result they don’t get time to cook food at their homes. This is the reason the
restaurants are in great demand. Brag restaurant and café plans to make every
evening of their clients special and memorable (Lee, Sardeshmukh & Hallak, 2016).
Target market
The restaurant intends to target the working people, the entire family and the
students. In the busy world the family members do not get enough time to spend with
each other this is the reason they intend to go to restaurant and intend to spend
quality time with their family. The students find for some places to hang out. The
restaurant intends to target them (Burns, 2017).
Market competition
The restaurant plans to open the first branch in the Dudley area of Midland
town. There are many such cafes and restaurant that has the same concept. In order
to face the competition, the company has to maintain the quality and the service
(Miles et al. 2016).
Five forces
There are five forces that can be included in the analysis of the restaurant:
a). competitive rivalry

9STRATEGIC MANAGEMENT
There is a chance that the company will face high competition as there are
many restaurants and cafés in the nearby area as it is one of the most growing and
the trendiest industry.
b). bargaining power of the customers
The buyers have many choices of restaurant and cafes therefore if they do
not get good offers and good quality and service they can shift their choice to some
other restaurants.
c). bargaining power of the suppliers
the weak bargaining of the suppliers are based on the large number of
suppliers, low forward vertical integration and high overall supply.
d). threat of substitution
this includes the substitute choice that the clients can have. There are many
restaurants who have fine dining, fine café area with some good music and place to
have fun and enjoy with friends and family (ollins et al., 2016).
e). threat of new entrants
the new entry can impact the market share of brag restaurant and café. The
restaurant with similar concept and better service can take away the potential
customers of the company (Lee, Hallak & Sardeshmukh, 2016).
Financial forecasts
Set-up cost
Particulars Amount Residual
Value

10STRATEGIC MANAGEMENT
Non-Current Assets:
Trademark 500000 0
Patent 750000 0
Property,Plant & Equipment 1500000 450000
Furniture & Fittings 100000 15000
Motor Vehicle 1500000 600000
Computer Equipment 1500000 0
Preliminary Expenses:
Business Registration 100000
License Fees 150000
Deposit for Electricity 100000 100000
Deposit for Telephone &
Internet
50000 50000
Recruitment Cost 30000
Share Issuance Cost 35000
Bond Issuance Cost 20000
Other Miscellaneous Expenses 75000
Working Capital:
Purchase of Raw Material 30000000
Wages & Salaries 20000000
Manufacturing Overhead 13000000
Selling & Marketing Expenses 690000
General Administrative
Expenses
293250 63983250
TOTAL START UP COST 70393250
Capital Funding:
Equity Capital 31676963
5 yrs. Bond 23229773
Loan From Bank 15486515
TOTAL CAPITAL EMPLOYED 70393250
Figure 1: estimated budget for start-up
Source: created by author
The total start-up cost is expected to be 8,48,38,250, which can be considered as
huge amount for the business.

11STRATEGIC MANAGEMENT
Profit and loss forecast
Net Profit
before Tax $6,110,617 $7,409,317 $8,822,867 $10,363,712 $12,045,348
Income Tax
Expenses ($1,833,185) ($2,222,795) ($2,646,860) ($3,109,114) ($3,613,605)
Net Profit
after Tax $4,277,432 $5,186,522 $6,176,007 $7,254,599 $8,431,744
Gross Profit
Margin 28.57% 28.57% 28.57% 28.57% 28.57%
Net Profit
Margin 3.06% 3.38% 3.67% 3.93% 4.16%
Return on
Equity 11.20% 13.59% 16.18% 19.00% 22.09%
Figure 2: profit and loss forecast
Source: created by author
The net profit and equity is higher as shown in the table. Therefore the start up is
expected to have good amount of profit from the business.
Cash-flow forecast
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow from
Operating Activities:
Cash Sales
$56,000,0
00
$59,983,0
00
$64,249,2
91
$68,819,0
22
$73,713,7
75
Collection from Debtors
$77,000,0
00
$89,476,6
25
$95,840,6
50
$102,657,
316
$109,958,
818
Cash Purchase
($24,000,
000)
($25,707,
000)
($27,535,
410)
($29,493,
866)
($31,591,
618)
Payment to Suppliers
($30,000,
000)
($38,133,
750)
($40,846,
013)
($43,751,
186)
($46,862,
989)
Direct Labor Cost
($36,666,
667)
($42,607,
917)
($45,638,
405)
($48,884,
436)
($52,361,
342)

12STRATEGIC MANAGEMENT
Manufacturing Expenses
($26,000,
000)
($27,849,
250)
($29,830,
028)
($31,951,
689)
($34,224,
252)
Insurance ($12,000) ($12,300) ($12,608) ($12,923) ($13,246)
Rates & Taxes ($6,500) ($6,663) ($6,829) ($7,000) ($7,175)
Salary of Office Staffs ($91,667)
($102,292
)
($104,849
)
($107,470
)
($110,157
)
Cleaning Charges ($5,000) ($5,125) ($5,253) ($5,384) ($5,519)
Electricity for Office ($13,750) ($15,344) ($15,727) ($16,121) ($16,524)
Telephone & Internet ($7,333) ($8,183) ($8,388) ($8,598) ($8,813)
Salary of Marketing Staffs
($137,500
)
($153,438
)
($157,273
)
($161,205
)
($165,235
)
Sales Commissions
@1.5% on Sales
($700,000
)
($749,788
)
($803,116
)
($860,238
)
($921,422
)
Travelling charges @2%
on Sales
($350,000
)
($374,894
)
($401,558
)
($430,119
)
($460,711
)
Income Tax Expenses
($2,617,8
59)
($2,905,2
16)
($3,210,5
85)
($3,535,5
53)
($3,881,7
83)
Cash Inflow/(Outflow)
from Operating Activities
$12,391,7
24
$10,828,4
67
$11,513,8
98
$12,250,5
50
$13,041,8
08
Cash Flow from Investing
Activities:
Purchase of Non-Current
Assets
($5,850,0
00)
Preliminary Expenses
($560,000
)
Sale of Assets
$1,065,00
0
Return on Deposits $150,000
Cash Inflow/(Outflow)
from Investing Activities
($6,410,0
00) $0 $0 $0
$1,215,00
0
Cash Flow from
Financing Activities:
Share Issue
$31,676,9
63
Bonds Issue
$23,229,7
73
Loan From Bank
$15,486,5
15
Interest Payment
($3,097,3
03)
($3,097,3
03)
($3,097,3
03)
($3,097,3
03)
($3,097,3
03)
Dividend Payment
($2,137,9
18)
($2,372,5
93)
($2,621,9
78)
($2,887,3
69)
($3,170,1
23)
Repayment of Bond
($23,229,
773)

13STRATEGIC MANAGEMENT
Repayment of Loan from
Bank
($15,486,
515)
Cash Inflow/(Outflow)
from Financing Activities
$65,158,0
29
($5,469,8
96)
($5,719,2
81)
($5,984,6
72)
($44,983,
713)
Net Cash
Increase/(Decrease) for
the period
$71,139,7
53
$5,358,57
1
$5,794,61
7
$6,265,87
9
($30,726,
905)
Add: Opening Cash
Balance $0
$71,139,7
53
$76,498,3
24
$82,292,9
41
$88,558,8
20
Closing Cash Balance
$71,139,7
53
$76,498,3
24
$82,292,9
41
$88,558,8
20
$57,831,9
15
Figure 3: cash-flow statement
Source: created by author
Balance-sheet forecast
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Selling Price per unit $3,500 $3,588 $3,677 $3,769 $3,863
Variable Expenses per unit:
Raw Material ($1,500) ($1,538) ($1,576) ($1,615) ($1,656)
Direct Labor Cost ($1,000) ($1,025) ($1,051) ($1,077) ($1,104)
Variable Manufacturing
Overhead ($650) ($666) ($683) ($700) ($717)
Sales Commission ($18) ($18) ($18) ($19) ($19)
Travelling Expenses ($26) ($27) ($28) ($28) ($29)
Toatl Variable Costs per Unit ($3,194) ($3,274) ($3,355) ($3,439) ($3,525)
Contribution Margin $306 $314 $322 $330 $338
Fixed Costs:
Depreciation on Property,Plant &
Equipment
$210,00
0
$210,00
0
$210,00
0
$210,00
0
$210,00
0
Depreciation on Furniture &
Fixtures $10,000 $9,000 $8,100 $7,290 $6,561
Depreciation on Computer
Equipment
$180,00
0
$158,40
0
$139,39
2
$122,66
5
$107,94
5
Amortization of Patent $100,00 $100,00 $100,00 $100,00 $100,00

14STRATEGIC MANAGEMENT
0 0 0 0 0
Amortization of Trademark
$150,00
0
$150,00
0
$150,00
0
$150,00
0
$150,00
0
Insurance $12,000 $12,300 $12,608 $12,923 $13,246
Rates & Taxes $6,500 $6,663 $6,829 $7,000 $7,175
Salary of Office Staffs
$100,00
0
$102,50
0
$105,06
3
$107,68
9
$110,38
1
Cleaning Charges $5,000 $5,125 $5,253 $5,384 $5,519
Electricity for Office $15,000 $15,375 $15,759 $16,153 $16,557
Telephone & Internet $8,000 $8,200 $8,405 $8,615 $8,831
Interest on Bond
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
Interest on Loan From Bank
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
Depreciation on Motor Vehicle
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
Salary of Marketing Staffs
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
Total Fixed Costs
$6,991,1
06
$6,972,1
69
$6,956,0
15
$6,942,3
25
$6,930,8
21
Break-Even in Units 22828 22211 21619 21050 20503
Break-Even in Dollars
$79,898,
354
$79,681,
926
$79,497,
309
$79,340,
862
$79,209,
380
Figure 4: balance sheet forecast
Source: created by author
Break-even analysis
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Selling Price per unit $3,500 $3,588 $3,677 $3,769 $3,863
Variable Expenses per unit:
Raw Material ($1,500) ($1,538) ($1,576) ($1,615) ($1,656)
Direct Labor Cost ($1,000) ($1,025) ($1,051) ($1,077) ($1,104)
Variable Manufacturing
Overhead ($650) ($666) ($683) ($700) ($717)
Sales Commission ($18) ($18) ($18) ($19) ($19)
Travelling Expenses ($26) ($27) ($28) ($28) ($29)
Toatl Variable Costs per Unit ($3,194) ($3,274) ($3,355) ($3,439) ($3,525)

15STRATEGIC MANAGEMENT
Contribution Margin $306 $314 $322 $330 $338
Fixed Costs:
Depreciation on Property,Plant &
Equipment
$210,00
0
$210,00
0
$210,00
0
$210,00
0
$210,00
0
Depreciation on Furniture &
Fixtures $10,000 $9,000 $8,100 $7,290 $6,561
Depreciation on Computer
Equipment
$180,00
0
$158,40
0
$139,39
2
$122,66
5
$107,94
5
Amortization of Patent
$100,00
0
$100,00
0
$100,00
0
$100,00
0
$100,00
0
Amortization of Trademark
$150,00
0
$150,00
0
$150,00
0
$150,00
0
$150,00
0
Insurance $12,000 $12,300 $12,608 $12,923 $13,246
Rates & Taxes $6,500 $6,663 $6,829 $7,000 $7,175
Salary of Office Staffs
$100,00
0
$102,50
0
$105,06
3
$107,68
9
$110,38
1
Cleaning Charges $5,000 $5,125 $5,253 $5,384 $5,519
Electricity for Office $15,000 $15,375 $15,759 $16,153 $16,557
Telephone & Internet $8,000 $8,200 $8,405 $8,615 $8,831
Interest on Bond
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
Interest on Loan From Bank
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
Depreciation on Motor Vehicle
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
$1,626,0
84
Salary of Marketing Staffs
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
$1,471,2
19
Total Fixed Costs
$6,991,1
06
$6,972,1
69
$6,956,0
15
$6,942,3
25
$6,930,8
21
Break-Even in Units 22828 22211 21619 21050 20503
Break-Even in Dollars
$79,898,
354
$79,681,
926
$79,497,
309
$79,340,
862
$79,209,
380
Table 5: break-even analysis
Source: created by author

16STRATEGIC MANAGEMENT
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17STRATEGIC MANAGEMENT
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