Business Plan for a Donuts Restaurant in the UK Market

This document presents a comprehensive business plan for a proposed donuts restaurant in the UK. The plan begins with an overview of the business idea and its alignment with the growing tourism industry, emphasizing the opportunity for fast-food businesses. It details factors critical for success, such as strategic partnerships and cost control. The business plan outlines clear objectives, provides proof of market viability through analysis of the UK restaurant industry, and includes management and operational strategies. It incorporates a PESTLE analysis to evaluate the external market environment, defines marketing goals and service strategies, and presents a promotion and marketing plan. The report also addresses financial projections, including revenue and expense forecasts. The marketing plan focuses on integrated communication, consumer behavior research, and service effectiveness. The management staff composition and compliance with regulations are outlined, along with a breakdown of justified financial costs and revenue projections. This detailed plan aims to provide a roadmap for the successful establishment and operation of the donuts restaurant.

TABLE OF CONTENTS
Link of business idea to prevailed opportunity............................................................................................................................................3
Factors that may bring success to the business............................................................................................................................................3
Business plan...............................................................................................................................................................................................3
Clarity of business objectives..................................................................................................................................................................3
Proof of market and breadth and currency of research sources...............................................................................................................3
Management and operational plan...........................................................................................................................................................4
Promotion and marketing plan.................................................................................................................................................................4
Consideration of marketing plan.............................................................................................................................................................5
Justified finance cost and projection........................................................................................................................................................5
Strategy for growing business in medium term.......................................................................................................................................9
Evidence of innovation and entrepreneurial focus................................................................................................................................10

Link of business idea to prevailed opportunity
Business idea is linked with the prevailed opportunity because idea is to establish the restaurant. Opportunity is that tourism
industry is growing at CAGR 9%. Thus, along with enhancement in tourism sector growth rate same in case of restaurant industry will
also increase at rapid rate. This reflect that viability of business idea is closely linked to the opportunity that is prevailed in the market.
It is very important to ensure that business idea must be linked to opportunity. This is because it is the opportunity by exploring which
one can increase its business growth rate. There is need to formulate appropriate business strategy to counter threat and capitalizing
opportunity. In current time period UK government is fully committed towards the growth of the tourism industry in the nation. It is
making hard efforts to increase tourism. There are large number of people that are employed in the mentioned industry and due to this
reason it have strategic importance for the firms. Thus, in the upcoming time period more opportunity can originate in respect to the
tourism industry and this will lead to increase in demand of fast food in the restaurants. This will ultimately results in huge growth in
revenue of the business firm and in this way business ideas is linked to the prevailed opportunity.
Factors that may bring success to the business
There are number of factors that can bring success to the business and one of them is that firm will enter in to contract with
other restaurants that are Indian or Mexican etc. Interns that are working in the restaurant as chef will take training from chef of these
different sort of restaurants. This will help firm in offering high quality of product to the customers and this will bring success to the
business firm. Apart from this, current combination of workforce will also acts as success factor for the proposed business. It must be
noted that in the current workforce there are 2 chefs and 2 servants along with one manager. In order to control cost intern students
that are highly qualified will be hired as chef. Apart from this 2 servants will be kept that will support chef. No outsider will be
appointed as manager and owner of the business will work as manager in the firm. In this way employee cost is cut down to some
extent. It can be observed that employee cost is the important component of the overall expenses in the business. Control on employee
cost will lead to less loss and maximum profit in the business. This factor will contribute to success of the business.

Business plan
Clarity of business objectives
Donuts restaurant is the proposed business that will be open in the UK. Some of the major objectives behind opening of new
branch are as follows.
 Attracting more and more customers of different types.
 To achieve growth rate of 10% at end of year in terms of sales.
 To introduce new product categories so as to fulfill needs of different sort of customers.
Achievement of all these objectives will mean that firm manage to create and retain different sort of customers in its business.
Proof of market and breadth and currency of research sources
UK restaurant industry is huge in size and ample opportunities are hidden in it. Revenue earned by the firms in this industry is
directly dependent on the growth of the travel and tourism industry. More will be growth rate of mentioned industry UK restaurants
will earn huge amount of profit in the business. In current time period UK tourism sector is growing at 9% CAGR. This lead to
formation of assumption that in upcoming time period UK restaurant business can earn huge amount of revenue in the business.
Currency factor can affect the growth rate of the firms. This is because inbound tourism is increasing at rapid rate but in case currency
fluctuation happened in inverse direction then this may lead to reduction in number of inbound tourists which will directly affect the
profitability of restaurant business.
Management and operational plan
In the restaurant there will be one manager which is business owner and four subordinates will work under him. Out of these
four there will be two chefs which are intern students and two servants. Because restaurant is new in business it is very important to
keep employee cost in control. Manager will have direct control on chefs in respect to product quality and delivery of order. Servants
will directly report to the chefs. In this sequence entire things will be managed by the firm. In order to operate business raw material

will be purchased from the suppliers. Firm will enter in to contract with these suppliers under which raw items will be purchased at
low price regularly from specific suppliers. Appropriate cash management plan will be prepared in the business and under this main
emphasis will be on buying less goods on credit so that debt can be kept in control in the business. On other hand, less amount of
goods will be sold on credit basis. By doing so it will be ensured that cash is sufficiently available in the business and is used
effectively.
EXTERNAL MARKET ANALYSIS
PESTLE analysis
Political
Government authority has greater impact on restaurant business
because it is highly associated with the health aspect of an
individual. Hence, by considering this, government has framed
several rules which business unit need to follow. Besides this,
companies operated in restaurant sector are accountable to follow
tax policies, labor laws and standard of cleanliness.
Economic
Fiscal policy which is framed by government authority has high
level of influence on restaurant sector. Moreover, incline in tax
rate may result into rise in the prices of food items. This in turn
place direct impact on customer decision making and thereby
spending level.
Social
In the recent times, income and education level of individuals
increased significantly as compared to before times. Now,
individuals prefer to dine in the restaurant which lay high level of
emphasis on quality and hygiene aspect.
Technological
Now, high level of technological advancements takes place in
restaurant sector. Thus, now there are several restaurants which in
turn use IT for doing publicity of restaurant and dinning services
offered by it.
Legal
In UK, restaurants are obliged to follow specific rules and
guidelines introduced by UK government in relation quality
Environmental
Activities performed by restaurant may cause of environmental
pollution to a great extent. Thus, it is highly required for the

aspect and food standards. business entity to comply with the aspect of environment
sustainability. Moreover, now individuals prefer to go to the
restaurant which performs activities in an eco-friendly manner.
Marketing goals
 Specific: To enhance customer satisfaction as well as loyalty and thereby sales level by 20% in the second quarter.
 Measurable: By comparing the current sales and customer base with the prior aspects performance can be measured in an
effectual way.
 Achievable: Objective in relation to customer satisfaction and sales maximization can be enhanced by placing emphasis on
food quality, price, hygiene and advertisement.
 Realistic: Aim in relation to the enhancement of customer sales by 20% is highly realistic because now customers or
individuals dine in a restaurant more frequently.
 Time-bound: Business entity will attain predetermined objective within the period of 6 months.
Service strategy
By following the below mentioned marketing mix business entity of restaurant would become able to meet objectives such as
maximization of sales, customer retention, loyalty, satisfaction and greater frequency of their purchase.
 Product: Owner of the restaurant will offer wide variety of food services to individuals such as British, Indian, Mexican,
Chinese and Intercontinental. In addition, sole trader will also make focus on maintaining high quality of food and hygiene
aspect.
 Price: Business entity will undertake penetration pricing strategy with the motive to maximize sales, customer satisfaction and
loyalty. The rationale behind this, individuals give more preference to the restaurant that offers quality and hygienic food to

them at affordable prices. Hence, by offering quality services to the customers business entity would become able to attract
more customers.
 Place: Sole trader will open restaurant in the Canal Street of London where number of hotels are situated. Hence by serving
both inbound and outbound customers restaurant owner can maximize both sales and profit aspect.
 Promotion: To promote dinning services entrepreneur will place advertisement on social networking sites. Hence, by giving
advertisement on Facebook, twitter business entity can develop awareness among the large number of people.
Promotion and marketing plan
In order to promote firm product channel of communication like newspapers and social media will be used. Apart from this,
sales promotion methods like hoardings on poll will also be used and in this way entire marketing of the product will be done. By
doing so maximum reach to the target customers will be ensured by the business firm. It can be said that marketing plan will prove
effective,
Consideration of marketing plan
Marketing will be done by following integrated communication approach under which same message will be communicated
through different channel of communication. Appropriate research will be done on consumer behavior of the people by using research
reports. On the basis of output of research people consumer behavior will be tracked and accordingly advertisement appeal will be
prepared and in this message for communication will be developed.
Service and distribution effectiveness
Business entity will offer dinning services to the customers by opening restaurant in Canal Street. Home delivery services will
not be offered by restaurant to customers. Further, to carry out activities more effectually owner of restaurant will make contract with
supermarket for ensuring availability of enough inventory. By this, owner of restaurant would become able to deliver services
according to customer demand and expectation level.

Management staff
People of management staff includes manager, head and junior chef, waiters, cleaning and maintenance personnel. All such are
the main parts of restaurant without which smooth functioning of business cannot be ensured.
Compliance with regulations
Business entity will perform all the activities and functions by taking into account Food Hygiene Regulations, 2006. Thus,
owner of restaurant will follow health & safety aspect, food standards as well as hygiene while preparing and offering food to
individuals.
Justified finance cost and projection
Items
Values in
£
British 8
Indian 20
Mexican 9
Chinese 23
Intercontinental 15
British 4
Indian 10
Mexican 4
Chinese 11
Intercontinental 8
Weekly cost data
British 28
Indian 70
Mexican 28
Chinese 77

Intercontinental 56
Monthly cost data
British 112
Indian 280
Mexican 112
Chinese 308
Intercontinental 224
Revenue per
person
Jun
e July August
Septembe
r October
Novembe
r December January February
British
120
0 1500 1950 2535 3295.5 4284.15 5569.395 5569.395 5569.395
Indian
200
0 2023 2629.9 3418.87 4444.531 5777.8903
7511.2573
9
7511.2573
9
7511.2573
9
Mexican
135
0
1360.3
5
1768.45
5
2298.991
5
2988.6889
5
3885.2956
4
5050.8843
3
5050.8843
3
5050.8843
3
Chinese
230
0
2326.4
5
3024.38
5
3931.700
5
5111.2106
5
6644.5738
5 8637.946 8637.946 8637.946
Intercontinental
240
0
2417.2
5
3142.42
5
4085.152
5
5310.6982
5
6903.9077
3
8975.0800
4
8975.0800
4
8975.0800
4
Revenue
925
0 9627 12515 16270 21151 27496 35745 35745 35745
March April May Total
5569.395 5569.395 5569.395 48181.02
7511.25739 7511.25739 7511.25739 65361.7356
5050.88433 5050.88433 5050.88433 43957.087
8637.946 8637.946 8637.946 75165.996
8975.08004 8975.08004 8975.08004 78109.9137
35745 35745 35745 310776

Expenses June July August
Septembe
r October
Novembe
r
Decembe
r January February
Marketing expenses 300 300 300 300 300 300 300 300 300
Administration expenses 600 600 600 600 600 600 600 600 600
Finance cost
833.33333
3
833.33333
3
833.33333
33
833.33333
3
833.33333
3
833.33333
3
833.33333
3
833.33333
3
833.33333
3
Insurance 250 250 250 250 250 250 250 250 250
Rent 1200 1200 1200 1200 1200 1200 1200 1200 1200
Salary and wages 13600 13600 13600 13600 13600 13600 13600 13600 13600
Depreciation 833 833 833 833 833 833 833 833 833
Preliminary expenses written
off 1667 1667 1667 1667 1667 1667 1667 1667 1667
Other operating expenses 1000 1000 1000 1000 1000 1000 1000 1000 1000
Sum of expenses
20283.333
3 20283 20283 20283 20283 20283 20283 20283 20283
Net month profit -11033 -10656 -7768 -4014 867 7212 15461 15461 15461
2017 2018 2019 2020 2021
Revenue 310776 404008 565612 735295 955884
Less: Cost of goods sold 153915 202004 282806 367648 477942
Gross profit 156860 202004 282806 367648 477942
Expenses
Marketing expenses 3600 3600 3600 3600 3600
Administration expenses 7200 12218 17106 22237 28909
Finance cost 10000 10000 10000 10000 10000
Insurance 3000 3000 3000 3000 3000
Rent 14400 14832 15277 15735 16207
Salary and wages 163200 174624 186848 199927 213922

Depreciation 10000 10000 10000 10000 10000
Other operating expenses 12000 20364 28509 37062 48181
Sum of expenses 223400 248638 274340 301562 333819
PBIT -66540 -46634 8466 66086 144123
Tax 0 -9327 1693 13217 28825
Net profit -66540 -37307 6773 52869 115299
Strategy for growing business in medium term
Appropriate strategy will be followed to grow business up to medium terms and under this through multiple channels at low
cost product will be advertised. This will lead to less expenditure in business and more retained earnings. Retained earnings amount
will be reinvested in the business. With passage of time new additions will be done in menu card and items will be introduced that are
usually not offered by other restaurants in London. Like variety of Indian dishes can be made available and by doing so Indians can be
targeted as customer segment. Same strategy will be followed in case of other segments. By doing so USP will be developed in
business and on YOY basis growth rate will be accelerated to great extent.
Evidence of innovation and entrepreneurial focus
As part of innovation as mentioned above main focus will be on all product segments and under this different variety will be
offered to the customers. This thing will create different image of restaurant among the people in comparison to rivals. This innovation
will help firm in developing loyal customers’ base in the business. As part of entrepreneurial focus firm will enter in to contract with
other restaurants that solely produce dishes like Indian and Mexican individually. . It can be said that this strategy will really prove
effective for the firm.