Detailed Business Plan: OrganicaSix66 Restaurant in Auckland, NZ

This business plan outlines the strategy for establishing OrganicaSix66, a restaurant and lounge in Auckland, New Zealand. The plan details the restaurant's theme, concept, and mission to offer American and Pashto cuisine with Asian influences. It includes objectives for the first three years, emphasi...Read More

Running head: BUSINESS PLAN FOR A RESTAURANT
Business plan for a restaurant
Name of the Student
Name of the University
Author note

1BUSINESS PLAN FOR A RESTAURANT
Table of Contents
1 Proposed theme and concept....................................................................................................................................................................2
Mission........................................................................................................................................................................................................2
Objectives....................................................................................................................................................................................................3
Target market...............................................................................................................................................................................................3
Predicted average spend..............................................................................................................................................................................4
Services and quality.....................................................................................................................................................................................4
Predicted limitations....................................................................................................................................................................................4
2 Feasibility.................................................................................................................................................................................................5
3 Business plan and financing options.........................................................................................................................................................6
3.1 Overview of the business...................................................................................................................................................................6
3.2 Scope..................................................................................................................................................................................................7
3.3 Staffing..............................................................................................................................................................................................7
3.4 Marketing...........................................................................................................................................................................................7

2BUSINESS PLAN FOR A RESTAURANT
3.5Marketing budget................................................................................................................................................................................8
3.6 start up cost budget..........................................................................................................................................................................11
3.7 Annual running cost budget.............................................................................................................................................................13
3.8 Three viable financing options........................................................................................................................................................13
4 service provisions...................................................................................................................................................................................13
4.1 Food and beverage menu.................................................................................................................................................................13
4.2 Facilities and layout.........................................................................................................................................................................14
4.3 Health and safety and hazard mitigation........................................................................................................................................15
Bibliography..............................................................................................................................................................................................16

3BUSINESS PLAN FOR A RESTAURANT
1 Proposed theme and concept
The business plan proposed in this paper is for OrganicaSix66 restaurant that is going to be established in Auckland
Metropolitan Area of New Zealand. The director of the restaurant chain OrganicaSix66, in a press meet stated that they are
establishing a new branch of the restaurant in the market of New Zealand for the first time and this is going to be their first step to
expand their business globally (Forbes & Kennedy, 2016). Originally, the restaurant chain operates in the market of Singapore and
they are planning to expand their business as their business executives found out that there is immense opportunity for running a
Lounge and fine dining restaurant where the management will majorly emphasize on providing American and Pashto food and
beverages along with a touch of Asian influence.
Mission
The mission of the management is to establish a lounge and restaurant where people will be able to choose from a wide range
of options regarding food and beverages. The management of the organization stated in a press-meet that they would ensure that the
customers would enjoy their visit to the place, as they will provide excellent ambience along with regular live music and poolside
facility. The management promised to provide frequent special theme nights and live music sessions by renowned artists to please the
customers.
Objectives
OrganicaSix66’s management’s basic objectives for the first three financial years for the organization are mentioned in this section;
1. The management of the restaurant chain aims to keep the labor cost in between 20% to 30% of the total revenue.

4BUSINESS PLAN FOR A RESTAURANT
2. The management of the organization aspires to provide good quality food and beverages while keeping the standard of a
medium scale organization in the foreign market to avoid any risks.
3. The management aims to keep the sales of the restaurant in between 1000000 to 1500000 US dollars.
4. The management of OrganicaSix66 aims to achieve at least 12% to 15 % return on the investment made by the management
for the first year and for the next two years they will be targeting to acquire 20% return on investment.
5. The management also aspires to expand their business in the market of India, Sri Lanka and China after a few years.
1.2 Design and decoration
The management of the restaurant said that they will majorly use wooden furniture and that would add class in the décor of the
restaurant. The style of the furniture would be to some extent gothic that would leave a classic look to the ambience of the place. The
management of the organization showed interest in using some furniture produced by hemp as a step towards sustainable world. The
lighting would not be much bright and would be enough bright to give comfort to the guests of the restaurant. The
Target market
The target customers of the management of OrganicaSix66 are the young generation and the elder population too. The
management will be offering various themed parties and live music sessions to attract customers from a wide range of age group
(Trienekens, van Velzen, Lees, Saunders, & Pascucci, Governance of market-oriented fresh food value chains: export chains from
New Zealand. , 2017). The management declared in a press-meet that the music sessions will specifically emphasize on the music
which were created in between the years 1960 to 1995, specifically to attract the people who lived through the retro 60s and the
young generation too.

5BUSINESS PLAN FOR A RESTAURANT
Predicted average spend
As there will be 60 seats for dining and in the lounge there will be 20 seats, the predicted average expenditure of the company
at the time of establishment will be nearing 3700*80, that will be approximately 51,8000 US dollars and the recurring cost per year
will be nearing 350000 US dollars.
Services and quality
The management of organicaSix66 aims to provide food and beverage of the highest quality that the customers of the
organization can expect. The motto of the management is to satisfy the customers so that they can develop the reputation of the
organization rapidly to be able to expand the business within a short span of time. The management of the restaurant chain disclosed
in a press conference that they would deploy a team to control the quality of the food and beverages along with ensuring that the
service men are satisfying the requirements of the customers. In hospitality business service is one of the most important factors that
determines the profitability along with the reputation of the organization (Kelsey, 2015).
Predicted limitations
To set up a business in the foreign market is not an easy thing and there can be numerous limitations for the organization to
successfully set up a business. Thus, it can be said that the restaurant chain does not have a global recognition and that is why it may
appear difficult to attract customers from the initial days of the restaurant’s operation in the market of New Zealand (Sacks et al.,
2015). The management of the restaurant chain is planning to establish their business in New Zealand maintaining a low profile
initially just to avoid the risks; the management stated that when they will start to experience steady flow of customers in the
restaurant, they would take initiatives to expand their business.

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2 Feasibility
The management of OrganicaSix66 know that they have expanded their business in a foreign land and thus they will face
several challenges initially to sustain the profitability and also to experience greater productivity. It is a matter of fact that the
organization has a customer base in Singapore and in New Zealand they do not have adequate recognition in the market and that can
become a potential issue that may trouble the management (Sweeney, Armstrong, & Johnson, 2016). In this section of this report a
SWOT analysis is done to evaluate the strengths, weaknesses, opportunities and threats that the management of OrganicaSix66 might
face while operating in Singapore.
Swot
Strengths
 Skilled workforce
 Skilled business development officers
 Global recognition
Weaknesses
 Lesser reputation and recognition in Singaporean market
 Lesser information of the market of Singapore
 Fierce market competition
Opportunities
 Can start the business in the new market from scratch
 Have excellent opportunity to build reputation
Threats
 Fierce rivalry in market of New Zealand
 Unknown preferences of the target customers

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3 Business plan and financing options
3.1 Overview of the business
OrganicaSix66 is going to be a unique lounge and restaurant in the market of New Zealand where the management will ensure
that the guests receive creative food of international standard and they will provide excellent service to the customers of the
organization so that they can return (Majid, Zahari, & Yusoff, 2016). It is a matter of fact that service and maintaining quality is the
USP of any business in hospitality industry and thus the management of the restaurant will stress on these factors. In a press meet the
director of the business stated that they would emphasize on the ambience of the restaurant along with various events they will
organize in order to attract the target customer base of the restaurant (Kelsey, 2015). The management will surely try to invite famous
music groups to perform in their organization for the weekend parties and there will be arrangements for the pool party and many fun
activities within the compound of the restaurant.
Scope
Currently there are ample scope for the management of the organization to experience success in the market of New Zealand as
the management had already gained enough experience about the business while operating in the Singaporean market and they will
surely implement the experiences they have gathered. Apart from that, the management of the organization have a global recognition
and that might help them to initiate their operations in a relatively secured way.

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Staffing
The management of the business organization will be recruiting a team of 4 chefs in the organization and they will recruit at
least 10 individuals for providing service to the customers. The management will seek help from a local chartered accountancy firm to
take care of the finance department and will deploy a tea of three individuals to take care of the safety issues within the organization
Marketing
Marketing is one of the most important aspect of doing business as with proper marketing a business sorganization can taste
the height of success. The management of the organization will invest a lot of money for marketing purpose and they stated that
initially they will invest for bill boards and social media marketing (Sacks et al., 2015). Later on, they will rethink and reevaluate the
situation before investing more money for marketing purpose.
3.2Marketing budget
Particulars 1 2 3 4 5
Inflation Rate 2.40% 2.40% 2.40% 2.40%
Sales Growth Rate 6% 7% 8% 8%
Sales Volume 500 530 567.1 612 661
Selling Price Per Unit $3,500 $3,584 $3,670 $3,758 $3,848

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Total Sales Revenue $1,750,000 $1,899,520 $2,081,266 $2,301,714 $2,545,511
Cost of Good Sold per unit:
Raw Material Consumed ($125) ($128) ($131) ($134) ($137)
Direct Labor Cost ($110) ($113) ($115) ($118) ($121)
Total Cost of Goods Sold p.u. ($235) ($241) ($246) ($252) ($258)
Total Cost of Goods Sold ($117,500) ($127,539) ($139,742) ($154,544) ($170,913)
GROSS PROFIT $1,632,500 $1,771,981 $1,941,524 $2,147,170 $2,374,598
Variable Manufacturing Overhead p.u ($650) ($666) ($682) ($698) ($715)
Total Variable Manufacturing Overhead ($325,000) ($352,768) ($386,521) ($427,461) ($472,738)

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Depreciation on Property,Plant &
Equipment
($210) ($210) ($210) ($210) ($210)
Total Manufacturing Overhead ($325,210) ($352,978) ($386,731) ($427,671) ($472,948)
General Administrative Expenses:
Depreciation on Furniture & Fixtures ($1,000) ($900) ($810) ($729) ($656)
Depreciation on Computer Equipment ($1,800) ($1,584) ($1,394) ($1,227) ($1,079)
Amortization of Patent ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)
Amortization of Trademark ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)
Insurance ($12,000) ($12,288) ($12,583) ($12,885) ($13,194)
Rates & Taxes ($6,500) ($6,656) ($6,816) ($6,979) ($7,147)
Salary of Office Staffs ($100,000) ($102,400) ($104,858) ($107,374) ($109,951)
Cleaning Charges ($5,000) ($5,120) ($5,243) ($5,369) ($5,498)
Electricity for Office ($15,000) ($15,360) ($15,729) ($16,106) ($16,493)
Telephone & Internet ($8,000) ($8,192) ($8,389) ($8,590) ($8,796)
Total General Administrative Expenses ($151,300) ($154,500) ($157,820) ($161,259) ($164,814)

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Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($1,800) ($1,584) ($1,394) ($1,227) ($1,079)
Salary of Marketing Staffs ($150,000) ($153,600) ($157,286) ($161,061) ($164,927)
Sales Commissions @0.5% on Sales ($8,750) ($9,498) ($10,406) ($11,509) ($12,728)
Travelling charges @0.25% on Sales ($4,375) ($4,749) ($5,203) ($5,754) ($6,364)
Total Selling & Marketing Expenses ($164,925) ($169,430) ($174,290) ($179,551) ($185,098)
Net Operating Profit/(Loss) $991,065 $1,095,072 $1,222,683 $1,378,689 $1,551,739
Interest Expenses:
Interest on Bond ($17,548) ($17,548) ($17,548) ($17,548) ($17,548)
Interest on Loan From Bank ($15,877) ($15,877) ($15,877) ($15,877) ($15,877)
Total Interest Expenses ($33,425) ($33,425) ($33,425) ($33,425) ($33,425)
Net Profit before Tax $957,640 $1,061,647 $1,189,258 $1,345,264 $1,518,314

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Income Tax Expenses ($287,292) ($318,494) ($356,777) ($403,579) ($455,494)
Net Profit after Tax $670,348 $743,153 $832,480 $941,685 $1,062,820
3.3 start up cost budget
Particulars Amount Residual
Value
Non-Current Assets:
Trademark 5000 0
Patent 5000 0
Property,Plant & Equipment 1500 450
Furniture & Fittings 10000 1500
Motor Vehicle 15000 6000
Computer Equipment 15000 0
Preliminary Expenses:
Business Registration 200000
License Fees 15000
Deposit for Electricity 1000 1000
Deposit for Telephone & Internet 50000 50000
Recruitment Cost 300
Share Issuance Cost 35000
Bond Issuance Cost 20000
Other Miscellaneous Expenses 7500

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Working Capital:
Purchase of Raw Material 31250
Wages & Salaries 27500
Manufacturing Overhead 162500
Selling & Marketing Expenses 82462.5
General Administrative Expenses 75650 379362.5
TOTAL START UP COST 759662.5
3.4 Annual running cost budget
Capital Funding:
Equity Capital 341848
5 yrs. Bond 250689
Loan From Bank 167126
TOTAL CAPITAL EMPLOYED 759663
3.5 Three viable financing options
The management of the organization will be investing 60000 US dollars and will take out a loan from the nationalized bank of
New Zealand that may be around 125000 US dollars on 7% interest per annum basis. Eventually the management of the organization

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will try to restructure the company into a joint-stock company. The whole amount of the money will be insured so that the
management would not get into any trouble.
4 service provisions
4.1 Food and beverage menu
 The management will be offering American and Pashto food and beverages along with a touch of Asian influence (Trienekens,
van Velzen, Lees, Saunders, & Pascucci, Governance of market-oriented fresh food value chains: export chains from New
Zealand., 2017).
 For the beverages the management will offer various cocktails and mocktails that will satisfy the needs of the target customers
and that will include martinies, jaggerbombs, long-island iced tea, blood of god and many more.

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4.2 Facilities and layout
4.3 Health and safety and hazard mitigation
The management of the business organization stated in a press conference that they look at the safety and security issues with
proper care as they believe that maintaining the safety and security of the customers along with the employees of the organization will
keep the employees motivated and also will help the customers to visit the restaurant with no worries.

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Bibliography
Forbes, S. L., & Kennedy, R. (2016). Competitive advantage through direct marketing: A case study of a small New Zealand wine
business. . In 9th Academy of Wine Business Research Conference , 25.
Majid, H. N., Zahari, M. S., & Yusoff, N. M. (2016). Service enhancement, in-house training and restaurant business resilience:
Integrating the study framework. Heritage, Culture and Society. Research agenda and best practices in the hospitality and tourism
induustry , 37.
Sweeney, J., Armstrong, R. W., & Johnson, L. W. (2016). The effect of cues on service quality expectations and service selection in a
restaurant setting: A retrospective and prospective commentary. . Journal of Services Marketing, , 30 (2), 136-140.
Trienekens, J., van Velzen, M., Lees, N., Saunders, C., & Pascucci, S. ((2017)). Governance of market-oriented fresh food value
chains: export chains from New Zealand. International Food and Agribusiness Management Review , 1-20.
Trienekens, J., van Velzen, M., Lees, N., Saunders, C., & Pascucci, S. (2017). Governance of market-oriented fresh food value chains:
export chains from New Zealand. . International Food and Agribusiness Management Review, , 1-20.
Trienekens, J., van Velzen, M., Lees, N., Saunders, C., & Pascucci, S. (2017). Governance of market-oriented fresh food value chains:
export chains from New Zealand. International Food and Agribusiness Management Review , 1-20.