Eat & Treat: A Business Plan for Food and Beverage Industry

This business plan details the operational and strategic aspects of 'Eat & Treat,' a hypothetical food and beverage company based in London, UK. The plan encompasses a comprehensive market analysis, utilizing tools like PEST and Porter's Five Forces to assess the macro-environmental factors and competitive landscape within the UK's food and beverage industry. It outlines the company's innovative product, a Pasta loaded Burger, and its marketing and pricing strategies. The plan also includes an operations plan, SWOT analysis, and financial projections, including start-up costs, sales forecasts, and break-even analysis. The conclusion emphasizes the importance of a clear mission and vision for the business's success. The plan also incorporates research from various academic sources, providing a well-rounded approach to the business's feasibility and potential for success.

Business plan
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Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The business details....................................................................................................................1
Macro- environmental overview.................................................................................................1
Market & industry analysis.........................................................................................................2
Competitor analysis.....................................................................................................................3
Marketing & Pricing strategies...................................................................................................3
Operations plan...........................................................................................................................4
Swot analysis...............................................................................................................................4
Financial requirements................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
In a competitive market place, every organization wants to operate their business along with
innovative ideas. Come up with uniqueness and innovation in market help in capturing
customer’s attention. This can be beneficial in improving competitive bran image at market place
(McKenzie and Sansone, 2019). For this, analysis of market is also important because it provide
opportunities to improve their organizational brand image by serving quality services to its
customers as per their needs and wants. Current report based on business plan in which selected
hypothetical organization is Eat & Treat is new business operate in food and beverage industry in
UK with the aim of improving its business performance.
MAIN BODY
The business details
Eat & Treat is a new food and beverage company that located in London, UK and also
serve food products in market place. Basically, it is a small restaurant that develop a business
plan to attain competitive success. It offers variety of food items in market as per customers’
needs but in their product menu, company add innovative products i.e. Pasta loaded Burger in
order to increase their positive brand image. The main quality of this food item is that it bakes
with pasta and extra cheese. This can be capture customer’s attention towards this innovative
food item. By this, company can increase its profitability level and also sustain in market for
longer period of time.
Macro- environmental overview
Eat & treat restaurant is going to provide quality products and services to their customers
by analysing their requirements towards Burger. In order to serve in UK, it is required for firm to
conducts PEST analysis to analysis impact of macro environmental factors over the business as:
Political factor: United Kingdom follows constitutional monarchy running under the
control of a representative structure (Watson, McGowan and Cunningham, 2018). It is said that
the United Kingdom is a decent, prosperous nation with plenty of opportunity for those inside it
and the country as a whole. Thus, there might be sort of opportunity for Eat & treat to establish
their business in the market of UK.
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Economical factor: Relative to other economies, the UK still has a good economic role. It
has a strong GDP, a diverse economy, but a few challenges, too. Thus, Eat & treat restaurant can
provide a strong contribution in the economy development by maximising opportunity through
employment practices. In UK a huge population that makes viability for even small markets
which would be beneficial for the firm.
Social factor: This factor determines customer’s requirements and needs towards business
products and services. As Eat & Treat is going to provide variety in Burger which would be
beneficial for them to sustain in the market easily.
Technological factor: Eat and Treat can impalement digital transaction for secured payment
mode as government of UK promotes such practices.
Market & industry analysis
It is significant for new business organization to analysis industry so that company can
successfully operate their operational activities at market place and attain competitive advantage
from its competitors. For this Eat & Treat use Porter’s five forces as a tool to analysis industry:
 Competitive Rivalry: Competitors in market place will drive down the prices of products
and also reduce the profitability level (Fichter and Tiemann, 2020). Eat & Treat operate
their business in a very competitive industry. In order to improve their performance, Eat
& Treat build a sustainable differentiation within their products to compete their
competitors.
 Supplier Power: In market place, food and beverage company buy raw material from
different suppliers. This is the reason that suppliers are more powerful and also use
negotiation power to extract high process from the company. Thus, it is important for Eat
& Treat to building effective supply chain with multiple suppliers so that profitability can
be easily increased in market.
 Buyer Power: In market place buyers are often demanding as they buy the best offering
by paying minimum prices as possible. This may create pressure in-front of Eat & Treat
as power of buyer is relatively high. In order to improve their customers base, company
needs to rapidly innovating new products for its customers at minimum price. This can be
contributing in developing strong customers base at market place (Watson and
McGowan, 2019).
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 Threat of substitution: In food and beverage industry, new products or services meet a
similar customer needs in certain ways as profitability can be impacted. Thus, it is
important for being services oriented rather than product oriented (Tipu, 2019). Along
with this, company also understand customers needs and wants in order to provide quality
products accordingly. This can be contributing in improving profitability level at market
place.
 Threat of new entry: In food and beverage industry, various new business is operating
their business with the aim of generating larger profitability. This is the reason that there
is high power of new entry threat and also directly affect Eat & Treat performance. For
this company needs to serve quality food products in market place at an affordable cost to
increase its profitability.
Competitor analysis
In UK food and beverage market, there are various strong competitors such as
McDonald’s, Burger king and so on that give competitiveness in market place in front of Eat &
Treat. This can be negatively impact over the profitability level of company. Mainly, company
target customers who are prefer to eat fast food. The main target customers are the youth and
kids to serve their new product i.e. Pasta loaded Burger. Along with this, company also analysis
competitors’ strategies before developing their plan and execute their business activities
accordingly. Understanding customers needs and wants is also considering as an effective way or
strategy that help in attaining higher satisfaction. This will directly contribute in increasing
profitability level at market place and at the same time also capture larger market share from its
competitors. For this, company continuously includes innovation and uniqueness in this product
line. This is beneficial in influencing customers to buy its products and services and at the same
time also improve positive and competitive brand image at competitive market place.
Number of customers, strategies, competitors
Marketing & Pricing strategies
In order to improve brand image promotion is one of the important tasks as it can be
support in establishing brand image so that large number of customers get attracted towards its
products and services. In this context, company focus on customers’ needs and wants by
analysing market condition. For this, company target kids and young youth who are likes to eat
fast food as per their requirements (Barrow, Barrow and Brown, 2018). Along with this, burger
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king, McDonald’s and many more are the biggest competitors whose have strong presence in
market place. Due to this, Eat & Treat use competitive pricing strategy by which products are
offers at a competitive price. It may contribute in increasing profitability level. Furthermore,
competitive and famous brand image, appropriate promotional strategies needs to be followed by
company to promote its performance of company. Advertising, direct marketing, personal selling
and many more are the important strategies to promote company products and services to
influence customers to buy the same and also improve its profitability level. By this competitive
advantage can be easily attained.
Operations plan
Operational plan for a restaurant should be as per the customer’s choices so that company
with their replenishing dishes can fulfil their needs and demands. The motive of Eat & Treat
restaurant is to provide with a space where customers can come and eat food as quickly as
possible. Thus, company’s operational plan is compromised of such kind of services. Customers
can easily order from the variety of products mentioned in the menu and staff members of the
restaurant are transforming this into reality. Moreover, Eat & Treat has their own conventional
ovens which is giving Burger the authentic taste of Italy. Moreover, with the help of pasta
machines, company in making fresh pastas without any use of preservatives. Customers can find
this restaurant near The Regent’s Park, London, United Kingdom. In order to connect with the
company and for enjoying the new food item i.e. “. Pasta loaded Burger”, customers can order
the food online through company’s website and the products are delivered to customers by the
delivery boy of the company itself. Moreover, location of the area is well connected with
subways that means customers and easily come to the physical outlet and can order their
favourite food.
Swot analysis
It is important for Eat & Treat to evaluate their overall performance by using SWOT
analysis as it provides assistance in determining strength, weakness, opportunities and threats.
With the assistance of this, company can analysis their internal capabilities and abilities to
operate their successful business.
Strengths Weaknesses
 Eat & Treat serve quality services to its
customers as per their demand is one of
 Eat & Treat is completely new in
market due to which less customers are
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the major strength.
 Company have competitive pricing
strategy in which products are offer as
an affordable cost.
 Attractive product menu is its USP that
make them differentiate from its
competitors.
familiar with its services. This become
a major weakness in front of company
at market place.
 Competitors of Eat & Treat has strong
customers base due to its variety of
product line.
Opportunities Threats
 Producing new product i.e. Pasta
loaded Burger is an opportunity for Eat
& Treat to invite large number of
customers.
 Positive and hygiene environment of
restaurant is also influence people to
visit the place and consume its services.
 High competition in market place is
biggest threat for Eat & Treat.
 Change in political environment also
affect the entire activities of restaurant.
Financial requirements
Eat & treat restaurant is trading in Pasta loaded Burger and its statement of financial
requirements has been described below:
Start-up cost of business- it is basically that cost which involves the initial fuel for starting up a
business and its operations. In the given business, starting cost is broken up in following
segments:
 Equipment’s = £ 2000.
 Furniture = £ 1500.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per unit.
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per unit.
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On the basis of analysis of market trends and other factors that may impact the sales. It is
forecasted that restaurant will be able to generate a sales equivalent to 200 units in a month. On
the basis of this forecasting following is a cost statement:
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900
From the above table, following is profitability and break-even analysis,
Break even analysis- It is basically that volume of sales, at which the company has no profit and
no loss. It is a neutral situation. To earn profits, company has to surpass this point of sales. In
given case, breakeven point is:
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= from the above calculation, it can be stated that, company is earning
profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
CONCLUSION
From the above-mentioned business plan, it has been concluded that, it is important for
company to develop a clear mission and vision before starting a new business. As it provides
assistance in capturing attention of customer towards its new product line. In this there are
various aspect that can be analysed by company is Macro environment analysis for which Pest
analysis will be used to analyse the external factor that can be affect the company. In addition to
this, market and industry analysis is also help in determining the area in which success can be
attained in an effective way. With the help of this, company can generate larger market share and
at the same time also sustain in market place from linger period of time.
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REFERENCES
Books and journals
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business plan competitions. Journal of Cleaner Production, p.122076.
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