Detailed Business Plan for Cosmos Restaurant in the UK

This report details a business plan for Cosmos Restaurant, a new venture in the UK offering Asian, Italian, and UK cuisines. It includes an executive summary, business overview, and a comprehensive marketing analysis, examining market size, micro and macro environmental factors (political, economic, social, technological, legal, and environmental), competitive analysis, and market segmentation using the ACRON consumer classification system. The marketing plan outlines product offerings, pricing strategies, distribution channels, and promotional activities. Financial projections, including cash flow and break-even analysis, are provided for the upcoming five years, along with a startup cost analysis. The plan emphasizes the restaurant's mission to provide an enriched customer experience and its vision to become a leading restaurant in the UK market within five years. The report highlights strengths, weaknesses, opportunities, and threats, alongside strategies to achieve business goals and address potential challenges, including competition and market dynamics.

Name of the student
Topic- Business plan
University Name-
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Table of Contents
1.0 Executive Summary...............................................................................................................................3
2.0 Business overview.................................................................................................................................3
3.0 Marketing Analysis and Marketing Plan................................................................................................4
Size of market..........................................................................................................................................4
Micro Analysis........................................................................................................................................5
Macro Analysis........................................................................................................................................6
Political................................................................................................................................................6
Economic.............................................................................................................................................6
Social...................................................................................................................................................6
Technological......................................................................................................................................6
Legal....................................................................................................................................................7
Environmental.....................................................................................................................................7
Competitive Analysis..............................................................................................................................7
Market Segmentation...............................................................................................................................8
Marketing Plan........................................................................................................................................8
Financial projection of the Cosmos Company for the upcoming five years...............................................10
Cash Flow projection.............................................................................................................................10
Loan Requirement Calculations (Start up Cost Analysis)..........................................................................14
Breakeven analysis – including graph and explanation.........................................................................15
References.................................................................................................................................................17
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1.0 Executive Summary
Under this report, a business plan will be discussed for a new startup in the UK. The new startup
is a restaurant which will be soon introduced in UK market. The restaurant will be opened in the
name of “Cosmos”. In order to establish this restaurant in UK market, a budget of £20 million
has been set and amongst this budget, almost 40% of the budget will be spent for promoting the
restaurant in the target market.
This business plan will include several aspects which are required to execute the operations of
the organization in the physical market. The first part of the report will focus on the business
description and other details which will make the business unique. Further, the report will focus
on the marketing analysis and marketing plan under which internal and external business
environmental factors will be discussed in relevance with the restaurant industry in the UK.
2.0 Business overview
In order to make the business idea unique and innovative, major product offering of Cosmos
Restaurant will be Asian cuisine and Italian cuisine along with the famous dishes of UK. Asian
cuisine has been added to the menu of Cosmos Restaurant with reviewing the demand of Asian
food in western countries. Taste of Asian food is quite impressive as well as unique from other
food items. Apart from this, it is a bit spicier from other food items, thus, it is included in the
menu range of Cosmos Restaurant. This restaurant will provide relished experience to the target
audience.
Initially, it will be launched as a private company as legal compliances for private companies are
less in comparison to the private companies. Apart from this, a separate R&D team has been
created which will focus on customer relationship, customer experience and their satisfaction
level. To gain a competitive advantage in UK’s market, Cosmos restaurant has also adopted the
online platform to distribute their food items. This will help the organization to cover a large part
of the market along with this; it will increase customer base and reliability over target audience
(Finch, 2016).
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Cosmos Restaurant is a new and innovative business idea and in order make this idea effective in
the physical market, experienced, knowledgeable and talented candidates will be appointed from
the same industry. As budget of the organization is sufficient enough, hence, compromise will
not be made in relation to the recruitment and selection of key candidates. Operational
capabilities of Cosmos Restaurant will be huge due to the appointment of talented candidates as
well as a due huge investment made in order to set up the restaurant in UK market.
The mission statement for Cosmos Restaurant will be “Creating an Aura of enriched and
delightful experience for the customer by serving high-quality dishes handpicked from some of
the best chefs of the world” (Finch, 2016).
The vision of Cosmos Restaurant is to grab the leading position in the restaurant industry in UK
market within coming 5 years. To acquire this position, the organization has focused over
fulfilment of large customer segment’s demand and for the same; varieties of dishes from all
over the globe will be served in the restaurant (Boshyk, 2016).
Short terms of goals for the Cosmos Restaurant will be the development of the effective image in
the target market along with spreading awareness amongst the target audience. Initial stage i.e.
introduction stage for every organization or for a product is quite important. If at this stage,
appropriate marketing and promotion will be done regarding the business, chances for
sustainable development and growth increases. Thus, in the introduction stage of the restaurant,
appropriate and advanced measures will be adopted to promote the restaurant in the target
market. This will help to spread awareness amongst the target audience in relevance along with
increasing the chances of approaching to them.
For corporate social responsibility and fulfilment of business ethics, expertise agencies will be
outsourced in order to reduce the cost of production as well as to gain expected outcomes in an
effective manner (Conway, 2013).
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3.0 Marketing Analysis and Marketing Plan
Size of market
The restaurant industry in the United Kingdom is has grown at a rapid rate in recent years. This
has increased the opportunities for new entrants in this industry to set up their distinctive image
as well as to earn higher profits. In 2015, consumer expenditure on restaurants and cafes has
reached over £77 billion and along with this, a number of enterprises have also been increased
with a contribution to the non-financial business economy over £17.6 billion. These stats
showcase that the opportunities for Cosmos Restaurant in UK market is high and with a £2
million investment, the organization will be able to set up an effective place in the target market
(Finch, B. 2016).
Micro Analysis
Strengths
A wide range of menu along with the assurance
of relished experience
Asian and Italian cuisine will be major
highlights for the restaurant
Huge investment
Centralised location will be chosen for setting
up the outlet
Online presence
100% organic ingredients will be used for
making delicious dishes (Fernandes,
Ferreira, and Moura, 2016).
Weaknesses
Lack of experience in restraint industry
Lack of knowledge regarding restaurant
business
No goodwill
Competition
Opportunities
Acquire huge market share
Threats
Huge competition
Aggressive competitive strategies by
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Customer relationship
Reliability of the target audience
Fulfilling vast customer segment’s demands
Enriched customer experience
competitors
Failure of new business idea
Generating demand for Asian food in the target
market.
Macro Analysis
Political
The government of UK has imposes several laws such as employment laws in relation to ensure
safety and right of employees, and environmental laws so that organizations could follow
environmental policies while performing their operations. Political factors have a high impact on
the restaurant industry and in order to ensure the cleanliness and hygiene in restaurants, regular
checks are conducted by UK government. Considering all these factors, Cosmos Restaurant
needs to develop its strategies to ensure smooth functioning in the competitive business
environment (Conway, 2013).
Economic
Fiscal policies by UK government could affect Cosmos’ operations such as the imposition of
taxes over consumer items which will lead the organization to enhance the prices of their food
items which will be served in the restaurant. Apart from this, inflation rate also plays a crucial
role in the performance of the restaurant. Increasing the food items prices will affect the demand
while bearing the cost of taxes will decrease profit margins of the restaurant. Thus, to ensure an
appropriate profit margin along with high demand, an effective pricing strategy needs to be
adopted by Cosmos restaurant such as cost leadership; value-based pricing technique (Goi,
2015).
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Social
Social factors play a crucial role in the restaurant industry because consumers are the end users
of the restaurant industry. The demand of consumers, the latest trend, product offering by
competitors, the interior of the restaurant, the location of the restaurant, etc. are certain crucial
measures which could affect the performance of newly established restaurant in the target
market.
Technological
Technological measures in the restaurant industry are used for promotion, marketing as well as
for entertaining its customers. Website promotion, email marketing and online presence of
restaurant are certain measures through which consumers could take appropriate information
about the restaurant. Thus, technological factors play a crucial role in spreading awareness
regarding amongst the target audience (Johnston, and Bate, 2013).
Legal
A number of agencies have been set up by the government of UK in order to go for random
check in the restaurant regarding food quality served to the customers. A number of regulations
have been imposed by the government in order to control the supply of food products in the
restaurant market. In order to perform in an effective manner, Cosmos Restaurant will be
required to adopt these rules and regulations to create a lawful atmosphere (Mohd, Idris, and
Momani, 2013).
Environmental
Certain ecological compliances are implied over consumers of the restaurant which are being
referred as the ecological issues. The government has taken various steps to control the food
quality and health safety of the consumers and in order to consider environmental factors; a
certain amount of earnings should be invested in the development of an effective environmental
around the restaurant. Apart from this, climate change is a major issue for restaurant industry
(Rashid, and Ghose, 2015.).
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Competitive Analysis
It is an effective tool for a marketing plan. It evaluates strengths and weaknesses of the primary
competitors and with the help of this, appropriate measures could be adopted to differentiate
newly established restaurant unique from existing ones. Primary and direct competitors for
Cosmos Restaurant in UK market will be Gaylord Restaurant, Yuu Kitchen and Zaibatsu. All
these three are famous for serving Italian and Asian cuisine and in recent years, demand for
Asian cuisine has grown rapidly.
Major questions which occurred in the competitive analysis are who are the primary competitors,
their speciality, their key strengths, their weaknesses, market share acquired by them, their past
strategies, their current strategies, marketing strategies used by them, etc. In relevance to these
questions, it has been evaluated that all these three restaurants have acquired almost 55% share
of the Asian cuisine restaurant industry (Schmidt, Spann, and Zeithammer, 2014).
Primary strengths of these organizations are:
 Gained experience in the UK restaurant industry
 Knows the taste and preferences of the target audience
 Consumer insight
Weaknesses of these organizations are:
 Lack of focus on other food dishes
 Irregular marketing and promotional strategies
 Lack of measures to develop PR and customer relationships.
Market Segmentation
ACRON consumer segmentation is a geodemographic UK consumer classification system.
Under this method, the population is being classified on the basis of their location. ACRON
segmentation technique helps to Cosmos Restaurant to determine the areas in the UK in which
population of Asians are high. This is because organization’s major focus is on Asia cuisine and
it will be majorly preferred by Asians. This method does not rely on census data; it has its own
methods to determine the density of population. There is six categories, 18 groups and 62 types
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under ACRON consumer classification approach. With the help of this approach, the
organization will be able to determine the most appropriate area to target for getting desired
outcomes. With the help of Acron segmentation approach, smarter target market could be
determined along with understanding the customers. It will help the Cosmos Restaurant to set up
an effective image in the target market along with gaining competitive advantage (Siguaw, and
Simpson, 2015).
Marketing Plan
Marketing plan comprises set of effective strategies to promote the new business or new product
in the target market. It helps to spread the awareness amongst the target audience relevance with
the new business establishment. It is made for a certain time period and the objectives in relation
to the marketing plan should be attained in that particular time period in order to fulfil the
expectations of management. A major part of the marketing plan is marketing mix technique.
This helps the organization to communicate its target audience in relevance with determining the
perfect place of distribution, showcasing features of the product and appropriate promotional and
advertisement strategies. Following is comprehensive marketing mix technique in relation to the
promotion of Cosmos Restaurant in the target market (Wei, Samiee, and Lee, 2014).
 Product: Asian, Italian and other famous cuisines across the globe will be served under the roof
of Cosmos Restaurant. Primary key features of their menu range are that they will provide a wide
range of food dishes to its target audience.
 Price: In the initial stages, the organization will focus on fair pricing strategy; value-based
pricing strategy as well as over cost leadership strategy. These pricing techniques have the
potential to increase the market share of the organization along with gaining competitive
advantage in the target market.
 Place: Place of distribution plays a key role in terms of setting up an effective position in the
competitive business environment. UK’s restaurant industry is quite complex and intense and in
order to gain competitive advantage along with developing a separate position in the target
market, it is essential to set up the outlet at the centralised location which could be easily
approachable for the target audience (Solomon, 2014).
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 Promotion: In terms of promotion, the organization will focus on trending digital strategies such
as Facebook, Twitter, Instagram, etc. traditional marketing techniques like television, radio,
newspaper advertising, etc. Apart from this, the organization could also use email marketing,
event marketing and other several sources to promote Cosmos Restaurant in the target market.
 People: Key employees play a crucial role in the success and growth of the organization.
Cosmos Restaurant is about to set up their outlet in UK’s restaurant industry, thus, it is necessary
for them to hire crucial and talented employees who could help the organization to attain its
desired goals and objectives in an appropriate manner.
 Processes: It should be focused that consumer should get the equivalent value as per their
spending. Until and unless, consumers will not feel worthy of values as per their spending, their
satisfaction level will not enhance. Thus, it is necessary to make sure that the services could
enhance customer satisfaction level.
 Physical evidence: There is some physical appearance always exists for intangible services. For
example insurance company also provides documents in which all terms and conditions are
mentioned. Thus, in order to provide some physical appearance in relevance to the services
offered to the customers, Cosmos Restaurant needs to provide some physical evidence such as an
invoice to its target audiences.
Financial projection of the Cosmos Company for the upcoming five years
Cash Flow Projection
Cash Flow Statement
Cash flows from
Operations
All amount is
shown in
Million
10

Cash receipts
from customers 2018 2019 2020 2021
202
2
202
3
Cash Sales
£
-
£
1.07
£
1.09
£
1.10
£
1.12
£
1.14
Cash collected
from customers
(debtors)
£
-
£
1.07
£
1.09
£
1.10
£
1.12
£
1.14
Funding from
Creditors
Stock
purchased, not
yet paid
£
-
£
0.64
£
0.65
£
0.66
£
0.67
£
0.68
Cash paid for
(enter negative
amounts) Total Expenses
£
0.04
£
0.04
£
0.04
£
0.05
£
0.05
£
0.06
Inventory
(stock)purchase
s
Funding to
Debtors
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Sales made not
yet collected
£
-
£
-
£
-
£
-
£
-
£
-
Net Cash Flow
from
Operations
-£
0.04
£
0.39
£
0.39
£
0.39
£
0.40
£
0.40
Investing
Activities
Cash receipts
from
(enter positive
amounts)
Sale of property
and equipment
£
-
£
-
£
-
£
-
£
-
£
-
Matured
Investments
£
-
£
-
£
-
£
-
Cash paid for
(enter negative
amounts)
Purchase of
property and
equipment
£
0.50
£
-
£
-
£
-
£
-
£
-
Other
investments
£
0.80
£
-
£
-
£
-
12

Net Cash Flow
from Investing
Activities
£
1.30
£
-
£
-
£
-
£
-
£
-
Financing
Activities
Cash receipts
from
(enter positive
amounts) Issue of share
£
0.30
£
-
£
-
£
-
£
-
£
-
Funds raised
from banks
£
1.00
£
-
£
-
£
-
£
-
£
-
Cash paid for
(enter negative
amounts)
Repayment of
loans
£
-
£
-
£
-
£
-
£
-
£
-
Dividends
£
-
£
-
£
-
£
-
£
-
£
-
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Net Cash Flow
from Financing
Activities
£
1.30
£
-
£
-
£
-
Change in cash
£
2.57
£
0.39
£
0.39
£
0.39
£
0.40
£
0.40
Opening
balance
£
-
£
2.57
£
2.95
£
3.35
£
3.74
£
4.14
Cash at End of
the year
£
2.57
£
2.95
£
3.35
£
3.74
£
4.14
£
4.54
Loan Requirement Calculations (Start-up Cost Analysis)
Particular
The amount in Million
(£)
Private funding 0.3
Owners shares 0.2
Bank loan 1
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Computation of the interest rate
Debt capital £ 1.00
Interest amount £ 0.03
Total Long-Term
Liabilities required in
business
£
4.00
£
4.50
£
4.50
£
4.50
£
4.50
£
4.50
Note- For more information, please look at the attached Excel file.
Funding of the capital of the Calgary Flames
Private funding £ 0.30
Owners shares £ 0.20
Bank loan £ 1.00
Computation of the interest rate
Debt capital £ 1.00
Interest amount £ 0.03
Plants and machineries £ 0.50 0.0
Store Fit Out £ 0.20 0.0
Office Equipment £ 0.30 0.0
Buildings & improvements £ 0.70 0.0
Furniture & Fixtures £ 0.50 0.0
Total Fixed Assets £ 0.60 0.1
Total Assets £ 0.60
Total Long Term Liabilities required in business £ 4.00 £ 4.50 £ 4.50 £ 4.50 £ 4.50
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Breakeven analysis – including graph and explanation
It is evaluated that the breakeven point is the point at which Cosmos will have no profit any loss
from selling its products and service in the UK.
The below graph reflects that only in the initial year company will have a loss and after that, it
will continue having profited from its business
Note – Please see the attached excel file.
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References
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Conway, J.B., 2013. A course in functional analysis (Vol. 96). Springer Science & Business
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Fernandes, C., Ferreira, M. and Moura, F., 2016. PPPs—True Financial Costs and Hidden
Returns. Transport Reviews, 36(2), pp.207-227.
Finch, B. 2016. How to write a business plan. Kogan Page Publishers.
Goi, C.L., 2015. Marketing Mix: A review of'P'. The Journal of Internet Banking and
Commerce, 2005.
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creativity and strategic planning to discover great business opportunities. AMACOM Div
American Mgmt Assn.
Mohd, W., Idris, S. and Momani, R.A., 2013. Impact of environmental dynamism on marketing
strategy comprehensiveness and organizational performance. International Journal of Business
and Management, 8(9), p.40.
Rashid, S. and Ghose, K., 2015. Organisational culture and the creation of brand identity: retail
food branding in new markets. Marketing Intelligence & Planning, 33(1), pp.2-19.
Schmidt, K.M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing strategy
in monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.
Siguaw, J.A. and Simpson, P.M., 2015. A marketing plan for marketing instruction: A satirical
look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133).
Springer International Publishing.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Engelwood
Cliffs, NJ: Prentice Hall.
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Wei, Y.S., Samiee, S. and Lee, R.P., 2014. The influence of organic organizational cultures,
market responsiveness, and product strategy on firm performance in an emerging market. Journal
of the Academy of Marketing Science, 42(1), pp.49-70.
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