Welli All You Can Eat: A Business Plan for a New Restaurant Venture

This project presents a detailed business plan for 'Welli All You Can Eat,' a proposed restaurant in Wellington, New Zealand, offering Indian, Chinese, and Mexican cuisines. The plan outlines the restaurant's mission, vision, and unique selling points, including live cooking and an all-you-can-eat buffet style. It explores key transactional relationships, partners, and stakeholders, emphasizing the importance of strong relationships with employees, suppliers, and government entities. A PESTLE analysis assesses the political, economic, social, technological, legal, and environmental factors influencing the venture. The plan also covers the identification of potential customers and stakeholders, analysis of customer needs, and marketing strategies, including product pricing, placement, and positioning. The project concludes with a reflective statement and references.

BUSINESS PLAN
ON
'Welli All You Can Eat'
RESTAURANT

TABLE OF CONTENTS
BUSINESS IDEA............................................................................................................................1
Realistic description of business idea and mission statement ...............................................1
Innovative and unique selling points .....................................................................................2
Key transactional relationship, partners and stakeholders ....................................................3
PESTLE analysis of mentioned restaurant venture................................................................4
POTENTIAL CUSTOMERS AND STAKEHOLDERS................................................................6
Identify and describe customers, partners and stakeholders..................................................6
Analysis of customers needs, want, preferences and characteristics .....................................6
Expected customers and expenditure expected .....................................................................7
ANALYSIS OF COMPETITION AND MARKETING STRATEGIES .....................................15
Strengths and Weakness of competitors ..............................................................................15
Marketing strategies developed on these findings and industry wide information .............16
Product pricing, placement and positioning strategies ........................................................18
Critical success factor for organisation ...............................................................................18
CONCLUSION OR REFLECTIVE STATEMENT.....................................................................19
Reflective .............................................................................................................................20
REFERENCES..............................................................................................................................22

BUSINESS IDEA
Realistic description of business idea and mission statement
This proposal shows a plan for starting a new business idea and the concept is to open a
new restaurant in Wellington, New Zealand (NZ). The restaurant will sell high quality of Indian,
Chinese and Mexican cuisines at an affordable price which will attract large customer base
towards it. The name of the proposed restaurant is 'Welli All You Can Eat'. Further, the major
business idea is to render quality of food and services in comfortable as well as pleasant business
environment (Patel, Thomson & Wilson, 2013). It will also be easy for the customers to eat these
three types of cuisines at a particular price. There will also exist different varieties of dishes in
cuisines so mentioned above which will surely attract a large customer base towards it. With this,
cited restaurant will be able to get the competitive advantage over the competitors who are
working in the same industry.
The business idea of opening a restaurant is a good point because the local citizens were
in the need for the same where they can get different types of cuisines at a single point.
Providing various varieties in different cuisines will automatically attract the customers to enjoy
the meal for once. Further, firm will effectively focus on making a loyal base for customers from
the starting time period only. With this, there will ibe increase in organisation revenue as well as
productivity. Owner of the restaurant has to develop effective marketing mix for different dishes
rendered to clients. This will show the effectiveness as how their product of different cuisines is
developed (Altinay, Paraskevas & Jang, 2015).
'Welli All You Can Eat' restaurant business idea is certainly a unique one where different
cuisines namely Indian, Chinese as well as Mexican will be served to the customers. These
cuisines will comprise of different types of dishes which will satisfy needs and demands of
customers in a clear and effective manner. Further, the meal to the customers will be served in
the buffet style. The employees who will be recruited will be multi-skilled and they will work
with best of their dedication to meet their own and organisational goals and objectives.
Mission statement of organisation
Mission statement usually motivates the organisation to give their best in the
accomplishing their goals and objectives. . Accomplishing the same within the set time frame
boosts the company’s morale and employees tends to work with best of their dedication to
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achieve firm's objectives (Bilton & Cummings, 2010). The mission of 'Welli All You Can Eat' is
to provide different types of food, drinks (both alcoholic and non-alcoholic) to the customers.
Moreover, mission for the venture is also to satisfy expectations of guests which usually they
expect from a hospitality firm. In New Zealand, travellers come from different locations from
whole around the globe and it is essential for the firm to render best quality of food as per their
taste. With this, they will be able to enhance their revenue as well as goodwill in coming time
period.
The food and drinks which will be served should meet the highest standard of superiority
as well as freshness. The mission is also linked with providing customers high quality of services
in form of warmth, civility, professionalism, etc. Employee’s morale also need to be boosted by
giving them friendly, cooperative as well as rewarding environment. This will motivate worker
to work with dedication to meet their own as well as organisational goals (Portales, 2015).
Further, mission is to understand the employees request so that they can stay for long time period
in the organisation. Further, the mission of the cited restaurant also emphasize on contributing
their best for the society so that their exist growth and development of the nation.
Vision statement of organisation
The vision statement of 'Welli All You Can Eat' is stated below:
“Restaurant planning is to become the first choice of customers for enjoying different
varieties of food in Wellington where they can get all types of food and drinks at a single place”.
Their vision is to expand their chain with the success of current restaurant as with this the
organisation will be able to satisfy various needs of customers. This will lead into increase in
firm's revenue as well as profitability.
Innovative and unique selling points
The innovation which owner is coming up with is the opening up of a restaurant in the
Wellington city of New Zealand. Restaurant firm will be serving various dishes of three different
cuisines i.e. Indian, Chinese as well as Mexican. This will give customers broad choice to select
their meal and have food. Further, these all dishes will be available to customers with best price
and excellent quality (Cummings & et.al., 2013). No doubt that with the taste only they will
become the loyal customer of the cited business venture. Further, all the mentioned cuisines will
be given to the customers under one roof. However, the concept of 'Welli All You Can Eat' is
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something new as the cost of meal for lunch is at relative low prices but there exist relative high
prices for dinner. It is usually because the dishes in dinner is more.
The unique selling point is that live cooking will be provided and customers will be able
to see that how food is prepared and can note down the hygienic factor which chef and cooks
usually consider at time of cooking. The owner of restaurant will also focus on increasing family
gatherings, corporate event meetings, etc. It will be necessary for the owner to make image of
new restaurant in the eyes of customers and for that various promotional techniques will need to
be taken into consideration (Poulston & Yiu, 2011). Moreover, one more uniqueness which firm
has that there do not exist any this type of restaurant in Wellington. This is a brand new concept
where all types of dishes are given to the customers at a single place. However, there are many
restaurants within the Wellington which is specialised in offering only one cuisine to the
customers and these might be only Indian, Chinese or Mexican, etc. There is not a single
restaurant present which offers all mentioned three cuisines under a single roof.
Key transactional relationship, partners and stakeholders
It is necessary for the owner of mentioned restaurant to make effective relationship with
different partners as well as stakeholders. Relationship can be in any form and with this, there
will be increase in brand image and goodwill for the enterprise. It is because the stakeholders
emphasise on giving their best contribution in growth and development of enterprise (Innes &
et.al., 2010). Transactional relationship for the owner will play an important role as with this,
they will be able to manage and make effective contact with the key stakeholders which will
contribute their best in excelling the performance of business venture. For opening of new
restaurant, the major requirement is the fund and this can be managed by taking help from
various parties.
Mentioned restaurant partner will have stakeholders in different forms and they are
employees, suppliers, creditors, customers, government, etc. Manager of the cited venture has to
make effective relationship with all parties so that they can stabilise their operations and get
competitive advantage over their rival competitors. Relationship with employees will play an
important role as they are real asset and firm has to satisfy their needs and demands in an
effective manner Wang, Chen & Chen, 2012). Their better performance will lead into good
productivity of venture. Owner has to frame policies in such a manner so that the morale of the
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employees get boosted and they work with better dedication to achieve their own and
organisational goals.
Role of suppliers will also play effective role and firm has to identify better suppliers so
that they can send quality of raw materials to the organisation. With best quality material, there
would bet better quality in food which will maximise the customers’ expectations from the
mentioned venture. Firm has to make effective bond with suppliers as well so that at times they
can provide them credit facility and no issues should be there when firm is delayed in payment
(Galuscak & et.al., 2012). This thing will not hamper the organisation brand image in eyes of
other parties. Firm also have to make strong bond with government so that their do not exist any
sort of problem in rendering the service. Owner of cited firm should follow all the norms and
acts which are prescribed in the New Zealand laws. Some of them which firm has to strictly
follow are in form of Food Act 1981, Animal Products Act 1999, Agricultural Compounds and
Veterinary Medicines Act 1997, Wine Act 2003, Alcohol Act 2012, etc.
PESTLE analysis of mentioned restaurant venture Political factors: The operations of any business will be afffected by policies and rules of
there government. As the new venture is going to be set up in New Zealand, risk is more
because government is not stable and rules use to change there in every three year. So
firm has to be aware of these changes and make plans beforehand. Beside this, company
needs to invest a substantial amount for start-up as the rate of labour force is high as well.
Moreover the lending rate here is also more which will decrease the revenue of venture,
as the company will have more tax burden (Eweje & Perry, 2011). Economic Factors: The economic condition of Newzealand is quite sound as the
inflation rate of the country is very low compared to other countries. Country focuses
more on tourism industry as it has small manufacturing sectors. This will be a positive
point for the firm, because it is going to serve local and foreign customers as well. The
purchasing power of the country is good which helps to circulate money all over the
country. So the huge investment done by company will be returned with profits over the
time by selling its services. Social Factors: Social and cultural fatcors of the country are favourable for the company.
The literacy rate is almost 100% which shows that living standard of people is high, and
is beneficial in the sense of having more local customers (Hutt, 2010). Further the
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government has more focus on tourism industry providing various facilities to tourists.
This will obviously increase international customers for restaurant. But the firm has to
take care of the preferences of the local and foreign customers needs as they have the
different perceptions of taste. Additionally, the moratality rate of the country is low so
after retirement people get benefits of pension and gratuity without doing any work. This
rule is not beneficial for the organisation and can affect profits. Technological Factors: Developed technology will always be beneficial for any venture
though it needs some large investments. Company has to update its technological
facilities to high level so that it can meet the international standard and meet the
expectations of customers. Updated technologies will help the restaurant also as keeping
track of significant informations will be easier (Freeman, 2010).
 Legal factors: Legal factors of the country are very favourable for starting a new
business as it provides trade freedom which helps the venture in expanding its operations
easily. There are less legal formalities in comparison to other countries and provides a
wide scope for expansion of comapny. The fact that has to be considered carefully is
unstability of government which results in frequent changes in rules in short time. So
manager has to plan strategies infront of changes by making some backup options in
advance . Further, manager will have to take care of some basic laws and acts like fair
trade practices, employment and labour laws etc. for smooth running of business.
 Environmental Factors: The population of country is well educated so they are aware of
environmental issues. Country has well developed systems for managing pollution free
environment and to deal with probable dangers. The location of restaurant will have great
effect on its functioning and investment to manage the pollution free environment. If
venture is located nearby any beach, park ar any other similar location then it has to take
care of cleanliness of surroundings. If it is located in centre of city then it has to face
issues of polluting environment due to release of smoke while cooking or by any other
ways Gikonyo, Berndt & Wadawi, 2014). Therefore the operational cost of restaurant
may increase in such case.
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POTENTIAL CUSTOMERS AND STAKEHOLDERS
Identify and describe customers, partners and stakeholders
'Welli All You Can Eat' restaurant will have their stakeholders in different form and they
will give their best performance so that the firm can achieve their goals and objectives in clear
and specific manner. Mentioned firm will focus on satisfying the needs and demands of various
stakeholders so that they can contribute their best. This will give mentioned restaurant firm a
competitive edge over their rivals. The stakeholders for the cited venture will be in form of
employees, suppliers, customers, creditors, government, etc. Moreover, at the time of opening up
of restaurant, if the fund is opted from any personal source i.e. friends or family members, then
their contribution will also exist at the time of making effective plans and policies for the
enterprise (Maumbe, 2012).
Role of suppliers will be important as they will render the quality of raw material to the
hospitality firm. Their performance will play an important role as they ave responsibility of
sending quality stuff to the venture. If the raw material would be not of adequate quality then the
firm will not be able to give their best and this will hinder their performance badly. Suppliers
also need to be efficient at the time of dealing and their price for different raw material should be
less as firm will purchase the same in stock. Freshness and hygiene will play an important role
herein (Relationship Marketing vs. Transactional Marketing, 2016.
Employees for the cited firm will be in two categories. One is management and the other
is back working employees who will be in form of chef's, cook's, etc. Their role in the growth
and development of venture will be effective as they have responsibility of preparing best of the
food so that the needs and demands of customers get fulfilled. Moreover, management will also
emphasise on taking effective feedback from employees so that they can make necessary
changes in their food quality as well as in other important elements (Park & Allen, 2013).
Moreover, for all the posts, efficient and talented workforce need to be recruited so that they can
work with best of their dedication to meet their own and organisational goals and objectives.
Analysis of customers needs, want, preferences and characteristics
Customers needs never get satisfied and they are in need of new things from time to time.
Further, the expectations of one individual differ from the another and thus it is important for the
owner of cited restaurant firm to give different varieties in cuisines which maximise their
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demands. Currently, restaurant firm will render various dishes in cuisines like Indian, Chinese
and Mexican. Customers will have best of their dining experience with their loved one's as well
as family members.
Owner of cited restaurant before launching different meal should take prior concern of
customers so that he must come to know as what customers are in need of. There are various
restaurants in Wellington who servers these cuisines but developing a unique dish and taking all
the three cuisines to a single platform will make functioning of organisation smooth (Hanaysha,
2016). The owner of 'Welli All You Can Eat' knows that they are working in dynamic
environment and thus, it is necessary for them to take necessary feedback from employees before
implementing their own plan. Relative concern from the customers will help them to grow in
effective manner. This will enhance organisation performance upto quite an extent.
Moreover, it is necessary for the manager to decide a target market whom they will
initially focus on. Attracting them towards the dishes will make them loyal customers towards
the firm. However, the perception of one individual usually differ with the another one and
therefore, it is utmost necessary for the owner to make a right tactic so that a large base of
customer gets ready to taste something new which is in form of different cuisines.
ANALYSIS OF COMPETITION AND MARKETING STRATEGIES
Strengths and Weakness of competitors
Restaurant industry in New Zealand is quite strong because it is one of the major country
for tourist attractions. There are various restaurants in Wellington which emphasise on giving
quality of food to the customers so that they have best of their dining experience (Dedeoğlu &
Demirer, 2015). Some of the most popular restaurant in Wellington are Tandoori Pakwan,
Charley Noble Eatery & Bar,Higher Taste, etc. On witnessing, it is found that the restaurants
which are prevailing in Wellington are largely Indian because a large number of population stays
of that only. From the three restaurants mentioned above, two of them are is Indian restaurant
which serves popular typical Indian food. Some components here which has to be taken into
consideration are:
 Market share: Market share of the restaurant firm is not relatively high for one particular
because there is stiff competition. No restaurant is getting a competitive edge because
there exist many rivals in the same field. Further, the three restaurants which has been
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distinguished above sell only one particular cuisine and thus it is difficult for them to stay
in the competitive market. Market share of all the three has been defined down under:
Name of restaurant Market share
Tandoori Pakwan 15.00%
Charley Noble Eatery &
Bar
16.00%
Higher Taste 13.00%
Thus, from the above market share it is found that the competition is stiff but still due to
large population of Indians as well as existing population, these existing ventures are been able
to develop a good brand image in the eyes of customers.
 Profits and revenue: Profits and revenue is one of the important aspect as the restaurant
firms whole around the globe are striving for that only. Owner of the firm knows that
they are working in dynamic environment and thus it is necessary for them to identify the
expectations of customers and bring all those dishes accordingly. Further, the profits
earned by these firms are reasonable because after generating the profits, there are many
things which needs to be deducted as well in form of expenses. Employees salary,
electricity, purchase of raw material, etc. are to be considered by the owner.
Considering these elements, it is found that at the initial phase, firm might face difficulty
in running down their operations. However, the concept of the cited firm is relatively new as they
are serving three different types of cuisines to maximise the needs and demands of the
customers. Owner of the cited firm is bounded to make plans and policies by considering of their
competitors so that they can give them stiff competition (Osterwalder & et.al., (2014).
Marketing strategies developed on these findings and industry wide information
For surviving in competitive market, every firm has to analyse their competencies
effectively and efficiently. SWOT analysis can provide opportunity to revise or strengthen their
performance for coming time period. This process will also help firm in getting an competitive
advantage over the rival competitors who are working in same industry.
Strengths-
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 Restaurant providing tasty food in different cuisines will give the cited venture best
dining experience. The interior of the venture will be decorated in such a manner that it
will give pleasant experience to their customers (Eweje & Perry, 2011). There another major strengths is that the pricing of the products are relatively low for
various meals. This strategy so opted will differentiate them from their competitors.
Weakness-
Restaurant has some weaknesses and they need to be overcome within specific time
period. Some of them has been discussed down below:
 Major weakness of the cited firm is that they have limited staff members and they are not
well trained. Further, training and development session need to be done so that they get
new knowledge as how to deal with the clients effectively. Mentioned firm can high level of competition in the NZ market so, it is utmost necessary
to modify their plans and policies from time to time (Hanaysha, 2016).
Opportunity-
 Major opportunity which firm can have in form of offering healthier and organic dishes
or salads in the menu.
 Finding various ways of generating more of the traffic during slow times. For instance
the afternoon session where there exist less rush. This may represent an opportunity for
growth for the cited enterprise Different other opportunity which firm has is dressing or baked goods which can be help
in enhancing food quality and will be a point of customers attraction.
Threats-
There are various threats for the cited restaurant venture and owner has to overcome the same
within the stipulated time frame:
 New restaurant opening in different areas can enhance venture supply chain for various
customer segments (Piercy, 2014).
 Rising in price to certain potential product's raw materials can be another threat for the
mentioned firm. This can be seen as a major challenge for the hospitality firm.
 New market entry and increasing customers demands can be also seen as a threat.
Considering all these factors, it is utmost necessary for the owner of 'Welli All You Can
Eat' restaurant to make certain strategies by taking the help of the different stakeholders. It is
9

because they have been to outside world and can help the venture with the experience they have
as what consumers are in need of. Basic strategies has to be formed in form of targeting, pricing,
positioning, etc.
Product pricing, placement and positioning strategies
Target market for 'Welli All You Can Eat' restaurant will be done on the basis of
segmentation which the owner has to consider effectively. Segmentation usually plays an
important role where a particular segment is selected and organisation emphasise on same to
improve their revenue and productivity (Lovelock, 2011). The major concentration of the venture
will be on demographic as well as psychographic segmentation Further, in the demographic, the
main aim will be on different aspects which will relate to age, sex, income level. Further, the
owner of the venture will focus on the age group from 18-60 as this the only age where people
have so much of food attraction. For the sex group, both male and female will be attracted
towards different types of multi-cuisine dishes developed by the firm. Apart from it, the major
emphasise will be on income level where both middle income adults and families who like to eat
outside their homes will be preferred. On the other side, for psychographic segmentation,
customers needs and wants will be considered and only those goods and services will be
produced of which consumers are mostly in need of.
The pricing strategy for the products so served will be kept as competitive so that firm
can give best of the food to the customers at an affordable price. This will surely enhance the
revenue and productivity for the cited business unit. Further, the competitive pricing strategy will
lead organisation in achieving their goals and objectives as well with creation of loyal of
customer base as well. Cited firm will majorly emphasise on two customers groups and these are
local people and tourists from NZ and other countries.
After deciding the target market and pricing technique, cited firm has to position
themselves in the marketplace. This positioning will be made by giving high quality of products
and services to the customers. Firm has to position their products in the eyes of customers by
giving superior quality of meals and friendly services when customers reach to restaurant.
Further, using effective advertisement techniques with brand promotion will assist consumers to
have the meal for once (Positioning in marketing, 2016).
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Critical success factor for organisation
There are different set of factors with which the venture gets utmost benefit. However,
there exist some major factors due to which the brand image of the firm gets majorly affected. As
per the study, following are the factors which will lead the 'Welli All You Can Eat' restaurant
towards success. High quality services: The services which are provided by mentioned restaurant is very
much effective. The owner of the restaurant make sure that all the needs and
requirements of their customers are fulfilled (Solomon, 2014). Further, they make sure
that all service users are provided with high quality services. Considering this, it can be
evaluated that 'Welli All You Can Eat' restaurant will be able to develop positive
perception among customers mind.
 Skilful employees: Employees are the face of organization and it is important that they
have workers who understand their customers and provided them services as per their
needs and requirements. Employees who are recruited for rendering services are very
much dedicated towards their job and give their best of the contribution in achieving their
own and organisational goals and objectives (Fifield, 2012). However, there are certain
factors because of which organization may face failure but it is important that they make
sure that appropriate steps are taken so that firm will be able to solve the issues.
FINANCE AND RESOURCING
Sources of finance to commence the business
Finance is most crucial and essential element which is required for starting the venture
successfully. The rationale behind this, there are several expenses which business unit has to
incur at initial level such as licensing, marketing and other expenses etc (Pearce, 2015). In this
regard, business entity can execute the plan if they have enough amount of financial resources.
Hence, there are several internal and external sources of finance which are available to the
business entity of 'Welli All You Can Eat'. It includes personal savings, sale of property, bank
loan, leasing, factoring etc. In order to commence the business of restaurant business entity will
undertake both internal and external sources of finance are as follows:
Personal savings: For commencing the business sole trader will use the personal saving of
$50000. This internal source of finance offers high level of financial benefits to the business
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entity. Moreover, in this, business entity is not obliged to make any payment to others. In this
way, such source offers freedom to the business entity from the financial burden to the large
extent. Now, each person lays emphasis on saving some part of money with the meet the
contingent situations. Along with this, for fulfilling the dreams individual focuses on saving
aspect. Thus, by using the personal savings business entity can start the restaurant within the
expected time frame.
Bank loan: Entrepreneur will take financial assistance from Kiwi to start the new venture in the
best possible way. It is one of the most effectual sources of finance which offer high level of tax
benefits to the firm. In this way, such sources of finance enhances the profit margin of firm to the
large extent (Belich, 2015). Further, in bank loan business entity repays the amount of loan in the
fixed monthly instalments. Hence, by considering all such aspect sole trader has taken decision
in relation to raise amount of NZ$100000 from Kiwi @ 3.8%. In the present time government
supports entrepreneurs who is planning to start their own business by offering loan at
concessional rates. Along with this, banks are always ready to give loan on the basis of
collaterals which is highly secured as compared to other means. In this, by raising capital from
Kiwi sole trader of 'Welli All You Can Eat' can realize the dreams to the large extent. However,
in loan, business entity has financial burden in relation to making repayment of loan along with
the interest.
Purchasing, stock control and staff issues Purchasing: In order to operate restaurant business entity requires several raw material
such as grains, wheat, vegetables etc. Hence, for this purpose, entrepreneur will make
contract with the supermarket such as Big fresh. Moreover, when business entity
purchases product from the specific retail store then they discount ((Pearce, 2015)). In
this way, such strategy will help sole trader in getting high economies of scale. Thus, by
making contract with the supplier business entity would become able to control the cost
to the significant level. This in turn helps entrepreneur in enhancing the customer base
and maintaining the profit margin to the large extent. The reason behind this customers
are highly price conscious in nature and prefer to go to the restaurant which offers high
quality product and services at affordable prices. In this regard, by controlling the cost
level business entity would become able to serve the customers more effectively.
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 Stock control: With the motive to control the stock level owner of 'Welli All You Can
Eat' will make order for the quantity which is actually required. Moreover, at initial level
business entity does not have idea about the order which they need to place (Selvaraj,
2015). Hence, after experiencing some months of performing the activities entrepreneur
would become able to make estimation of the inventory which they need to order and
maintain within the business unit. Along with this, EOQ method will also be used by the
entrepreneur to maintain the proper inventory level. It presents the level to which they
need to maintain stock for the smooth functioning of the business activities and
functions. Usually, in restaurant customers feel dissatisfied when they do not get the
desired level of services and dishes. Thus, sole trader will undertake inventory control
technique for ensuring effective management of stock level.
 Staff issues: For managing the issues which are facing by the staff business entity will
hire the one personnel. Moreover, in restaurant there are several factors which have high
level of impact on customer satisfaction (Amsler and Shore, 2015). It includes food
services offered, meet & greet, interior, exterior etc. In this, management personnel will
provide guidance to the service personnel about the manner in which they need to serve
the customers. Moreover, in the hospitality sector, employees play a vital role in
evolving high level of satisfaction in the mind of customers. Thus, by resolving the issues
and organizing training session sole trader would become able to raise the skills and
qualities of personnel.
Projected sales figure
Assessment of the sales revenue of year 1
Particulars
Amount (in NZ
$)
Number of
customers
served in a day
Sales revenue
year 1 (In NZ $)
Price per customer of Mexican dish 25 10 91250
Price per customer of Chinese dish 22 15 120450
Price per customer of Indian dish 20 10 73000
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Total sales revenue 284700
The above mentioned table presents that according the penetration pricing strategy
prices of the dishes such as Mexican, Indian and Chinese are setting down within the range of
NZ$20 to $25. This in turn helps owner of the restaurant in enhancing the sales revenue.
Further, by consider the trend of visitors business entity has decided to serve 10 customers of
Mexican and 10 of Indian on each day. Further, in New Zealand several customers prefer to take
Chinese dishes. On the basis of this, sole trader has taken decision to serve 15 people in each
day.
Salary structure
Salary structure Number of personnel Amount (in NZ $)
Service personnel 3 46800
Head chef 1 36400
Junior chef 2 26000
Cleaning staff 2 20800
Management personnel 1 52000
In order to offer effectual services to the customers business entity of 'Welli All You Can
Eat' will appoint 3 service personnel. Along with this, 1 head chef and 2 junior will be hired by
the restaurant. Along with this, for cleaning and maintenance business entity will appoint 2
personnel. Moreover, in restaurant customers give more priority to the hygiene aspects. Hence,
by recruiting suitable employees entrepreneur would become able to develop and raise
satisfaction among the personnel.
Projected income statement
Income statement: It presents the revenue which will be generated by the business entity
over the expenses. Thus, income statement provides deeper insight to the sole trader about the
profit which will be generated by them over the years. Along with this, it also presents the
expenses which will be incurred by the business entity to carry out the business operations and
functions in a smooth manner (Laswad and Redmayne, 2015). Income statement provides high
14

level of assistance to the entrepreneur in evaluating the feasibility aspect of project by indicating
the profit level.
Particulars
Year 1 Amount (in NZ
$)
Year 2 Amount (in NZ
$)
Revenue 284700 341640
Less: Cost of goods sold 71175 85410
Gross profit 213525 256230
Indirect Expenses
Marketing expenses 5694 6833
Administration expenses 8541 9000
Rent of the building 4000 4280
Salary and wages 182000 218400
Depreciation (equipments and furnitures
& fixtures) 4000 4000
Insurance cost 1600 1600
Other operating expenses 800 880
Interest on bank loan 3800 2533
Total expenses 210435 247526
PBT 3090 8704
Tax - -
Net profit 3090 8704
From the above mentioned income statement it has been assessed that sales revenue of
the restaurant is continuously inclined. Such growth has been identified in the sales revenue due
to the rise in the level of tourism. Hence, cost of goods sold will be maintained by the owner of
restaurant in comparison to the sales revenue. Along with this, there are several indirect
15

expenditure which will be incurred by the owner of restaurant to manage the business activities
and functions. Income statement presented that percentage of direct expenses are higher than the
indirect expenditure. Marketing, administration, rent, salaries of the personnel, depreciation and
other operating expenses will be incurred by the sole trader for offering the dinning services to
the customers. Due to the highly dynamic business environment expenditure which will be
incurred by the sole trader are highly increased.
Marketing expenses of 'Welli All You Can Eat' will incline by NZ$5694 to $6833.
Further, administration expenses of the restaurant also inclined by NZ$8541 to $9000. It is
highly usual that along with the sales expenses of the firm inclined to the large extent. Further,
according to the trend of New Zealand rent will also be increased from NZ$4000 to $4280.
Along with this, salaries of the personnel are also enhanced from NZ$182000 to $218400. In
this way, expenditure level of the business entity increased to the great extent. On the other
side, insurance and depreciation are considered as fixed cost. Moreover, straight line method will
be employed by the business entity so it is recognized as fixed expenses. Along with this, interest
on bank loan is significantly declined from NZ$3800 to $2533. Moreover, in the second year
interest will be charged by the bank on remaining amount after making payment of only one
instalment. Besides this, profit of 'Welli All You Can Eat' will incline from NZ$3090 to $8704.
Hence, increasing and higher income clearly present that project of opening restaurant in New
Zealand is financially more viable.
Projected income statement
Cash flow statement: This statement renders information about the inflow and outflow of the
activities which will be performed by the firm during the year. In this, positive inflow entails
that plan is feasible from the financial perspective (Clapham, 2015). Besides this, cash inflow
clearly presents the revenue or income will be generated by the sole trader from varied
business activities. On the other side, outflow provides information about the expenses will be
incurred by the business entity during the year.
Cash flow statement Pre-Operating Year Year 1 (￡) Year 2 (￡)
CASH INFLOW
Opening Balance 0 101500 142431.67
Sales 0 284700 370110
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Owner's fund 60000
Bank Loan 100000
Total Cash Inflow 160000 386200 484071.67
CASH OUTFLOW
Working Capital 50000 0 0
Legal and Registration
Charges 6000 0 0
Market Research 2500
Marketing and
promotional - 5694 7402.2
Administration
expenses - 8541 9000
Depreciation on
equipment - 4000 4000
Interest on loan - 3800 2533.33
Rent on premises - 4000 4280
Salary - 182000 218400
Other operating
expenses - 800 880
Insurance - 1600 1600
Tax - 0 3793.045
Loan Repayment - 33333.33 33333.33
Total Cash Outflow 58500 243768.33 285221.91
Closing cash balance 101500 142431.67 203212.2
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The above presented cash flow statement entails that inflow of 'Welli All You Can Eat'
restaurant is higher in each FY from operating period to 2nd year. At initial level when business
entity starts to operate the business of restaurant conducts in-depth evaluation to analyze the
growth level or aspect. Thus, sole trader will spend NZ$2500 on market research. Besides this, to
carry out the business operations in New Zealand business entity also requires license. For this
purpose, in the operating year business entity will incur NZ$6000. Hence, in the operating year
cash inflow of the New Zealand will be NZ$160000. It contains the amount of both bank loan
and personal saving.
In this, NZ$100000 accounts for bank loan and other implies for the saving amount
invested by them. Further, at operating level business entity will incur less expenses such as
NZ$58500. Thus, it can be said that in the operating year closing balance of the cash will be
NZ$101500. On the other side, in the first year cash inflow of the restaurant will be NZ$386200.
Moreover, it also includes the sales revenue and opening balance. On the other side, cash outflow
will be NZ$243768.33 in the first year of operations. Thus positive balance of cash in terms of
NZ$ 142431.67 has been determined in the first year. Besides this, in the second year cash
inflow of the restaurant will be higher than outflow. Moreover, when business grows then sales
revenue of the business inclined with the very high pace. Thus, it is one of the main causes due
to which cash inflow increased from NZ$ 386200 to 484071.67 in the second year. Along with
this, expenses in the second year also inclined which may result into higher outflow as compared
to the previous year. Thus, it can be said that proposed business plan is viable in terms of
finance.
Projected balance sheet
Particulars / year 1 2
Assets
Fixed assets
Equipments (Cost –
depreciation) 76000 72000
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Net fixed assets 76000 72000
Current assets
Cash (Personal saving + bank
loan+ net profit – loan
repayment) 49756.67 25127.21
stock 20000 22000
Other income 4000 6000
Total current assets 73756.67 53127.2
Total assets (Current + fixed) 149756.67 125127.2
Liabilities
Capital (Add: Net profit) 83090 91793.87
Bank loan (100000 –
33333.33) 66666.67 33333.33
Total liabilities 149756.67 125127.2
Assumptions
This business plan and its monetary aspects are based on the following assumptions. All
the below factors are undertaken by making evaluation of the aspects, trends and laws of New
Zealand.
 Restaurant will offer services to the customers 365 days in a year. Moreover, on
weekend, festivals and other special occasions people prefer to visit the restaurant. Along
with this, tourism is another main factors due to which owner of 'Welli All You Can Eat'
has made decision in relation to opening of restaurant in the whole year.
19

 Sales revenue of 'Welli All You Can Eat' will incline by 20% annually. The rationale
behind this, in New Zealand tourism is increased with the very pace. Travel and tourism
sector of New Zealand makes 5% contribution in the GDP of respective country. Hence,
assumption undertaken by the sole trader are highly realistic in nature.
 Salaries of the employees will be increased by 10% in the upcoming year. According to
the laws it is the accountability of the employer to raise the salary of personnel. Hence,
by considering such aspect and for evolving high level of satisfaction among the
employees business entity has taken decision in relation to offering 10% increment to the
employees. In the year 2 entrepreneur will hire 1 additional service personnel to deliver
high quality services to the customers.
 Straight line depreciation policy will be employed by the sole trader of restaurant. On the
basis of this aspect 5% depreciation will be charged on fixed assets such as furnitures and
fixtures as well as equipment.
 In New Zealand, rate of insurance is 2% which will paid by the business entity on fixed
assets. The reason behind this, insurance is highly required for coping up with the
contingent business situation.
 In the first year, operating expenses will be $800. besides this, such amount will be
increased by 10% in the near future.
 For market research, budget of $2500 has been setting down by the entrepreneur. The
rationale behind this, market research is highly required for evaluating the growth and
potential aspect. Segmentation, targeting and positioning are the main approaches which
are highly relied on the outcome of research activity. Along with this, for evaluating the
competitors product and strategy it is highly required for conducting in-depth analysis. In
this way, activity of market research is highly required for making competent and
strategic policy framework.
 Along with this, to get the license in relation to opening of restaurant in New Zealand
business entity will incur NZ$6000.
 In order to open the restaurant business entity has taken decision in relation to taking
area on rent. In the next year rent will be increased by 7% on an annual basis.
 Administration expenditure will be 3% on the sales revenue. The reason behind this,
interior, exterior and other arrangements have high level of impact on the decision
20

making and satisfaction level of the customers. In the next year business entity will spend
NZ$ 9000 to manage all the business activities and functions in the best possible manner.
 Marketing expenses will account for the 2% of sales revenue. The reason behind this at
initial level business entity has to make high level of expenses in promoting the dinning
services to the large extent.
 Amount of loan will be repaid by the banking institution in the three equal annual
instalments. Further, Kiwi will charge 3.8% interest on the amount of loan taken.
 No tax will be paid by the business entity on the profit earned by them. Moreover,
according to the tax laws and legislation of Nee Zealand tax liabilities will start from the
income which account for the range of NZ$14000. Hence, it can be said that income
which will be earned by 'Welli All You Can Eat' in the upcoming two years do not come
under the income tax categories.
Identification of risk and strategies to manage these
There are several risks which business entity will face while carry out the business
operations and functions. Changing customer needs and preferences: In the present time, customer needs and
preferences are getting changed with the very high rate. In this, if business unit fails to
serve food according to the customer's preferences then it may result into the loss of
productivity and profitability. Hence, by taking feedback from the customers business
entity can provide customers with effectual ambiance, food and other services. Economic condition: Employment or income level is one of the largest factors which
have high level of impact on the decision making aspect of customers. The reason behind
this, customers spend on luxury only when they have high level of disposable income. In
this, by setting the affordable prices of the services offered business entity can manage
the changing situations more effectively.
 Legal policies: Changes which take place in the legal framework of New Zealand also
have influence on the activities of restaurant. Moreover, licensing, employment hours,
wage etc. are highly related with the legislation prevailed in the country. In this, by
framing competent and strategic framework owner of the restaurant can cope up with the
changing business aspect more efficiently.
21

CONCLUSION OR REFLECTIVE STATEMENT
From the above business plan, it has been concluded that tourism industry of New
Zealand is growing with the very high percentage. Such sector contributes NZ$24 billion in the
economy of New Zealand each year. Thus, by considering such aspect it can be said that highly
growing trend has been identified in the restaurant sector. On the basis of such trend business
entity has taken decision in relation to offering food and dinning facility to the customers. Owner
of 'Welli All You Can Eat' will offer wide variety of dishes related to Indian, Mexican and
Chinese. It has been articulated that by serving both inbound and outbound customers restaurant
can achieve success to the large extent.
Besides this, it can be inferred that by making focus on the middle and high income
group people entrepreneur can attain success in his new venture. Further, it can be revealed from
the report by promoting services through the means of social media business entity would
become able to develop distinct image in the mind of customers. It can be seen in the report that
project is financially more viable because it will offer positive return and cash flow to the sole
trader in the upcoming time period. Earning high return or income is one of the main objectives
of business entity behind starting the new venture. In this way, such business will offer high level
of growth opportunities to the business entity. It can be seen in the report that sole trader of
'Welli All You Can Eat' will employ both internal and external sources to meet the financial
needs and requirements. This in turn helps sole trader in developing proper balance in the
financial structure. Hence, by considering all such aspects it can be said that project in relation to
opening of the restaurant is more viable in both financial and non-financial aspects. Thus, such
new business venture will help entrepreneur in build and sustain competitive edge in New
Zealand.
Reflective
According to the Gibbs model there are mainly six stages of learning include description,
feeling, evaluation, analysis, conclusion and action plan. I have undertaken all these stages while
developing and drafting the business plan. On the basis of this, I have made my best efforts in
relation to assessing the area of business venture which proves to be more profitable. In this
regard, I have made through analysis of the each and every aspect such as market trend, segment,
positioning and financials with the motive to take suitable and effective decisions. In this way,
analytical skills of mine has been developed to the large extent. Further, I learnt the manner in
22

which in-depth analysis can be conducted for the purpose of decision making. This in turn helps
me in attaining success in the near future. Moreover, each area of the business is highly complex
and competitive (Kabir and et.al., 2016). In this, one can attain success only when they make
decision after conducting deeper analysis of the market situation. Thus, such analytical skills will
helps in fulfilling the dreams and objectives to the large extent.
By evaluating my own skills in comparison to before I have identified that problem
solving skills are enhanced. Along with this, decision making skills of mine also enhanced after
doing work on such business plan. Under such business plan I have made several decisions in
relation to the positioning, products and services which will be offered by the restaurant.
However, I have also faced some bad experience while doing work on such business plan.
Moreover, in this, bad experience is related to the assessment of trend in the right direction or
manner. The reason behind this, suitable as well as effective strategic and policy framework can
be developed when trends are assessed in the right direction. Earlier, I have faced issues in
relation to assessing the suitable market segment to whom services will be offered by the
business entity. In addition to this, I also found problem in deciding the suitable location for
establishing the restaurant. Moreover, in the restaurant sector location and dinning services have
high level of influence on the decision making aspect of customers. Thus, such aspect has
created problem in front of me to the large extent. In addition to this, ability pertaining to
developing co-ordination in the different activities of mine has also been developed. Moreover,
business plan is highly based on the effective co-ordination. In this, each strategy or activity has
high level of influence on others. Thus, from such project I have learnt the manner through co-
ordination can be developed and maintained in the overall plan or framework.
By doing analysis of the skills I have identified that such project has made significant
contribution in my knowledge and development aspect. My understanding level and other skills
are significantly enhanced after carry out such project. On the basis of this I would become able
to cope with the situations more effectually which will arise in the near future. In the upcoming
time period when I will take decision about the expansion then problem solving, decision making
and analytical skills will help in drafting the highly competent plan. From the overall evaluation I
have identified that I need to develop my ability in relation to analyzing the trend by adopting
the statistical tools and techniques. Moreover, statistical tools help in evaluating and analyzing
the large data set in the best possible way (Marquis and et.al., 2015). Along with this, I will also
23

do internet surfing with the aim to learn the skills in relation to assessing data. Internet has huge
collection of books, journals and videos which clearly describe the manner through which one
can find the best solution of the problem or issue (Keerasuntonpong, Dunstan and Khanna,
2015).
In this way, all such aspect will assist in getting in drafting suitable policies for the bear
future. Hence, by developing the competency level in such field I would become able to take
high profitable business decision to the significant level. This in turn helps me in evaluating the
market trend, customer base, profit margin associated with such sector more effectively and
efficiently. Hence, by considering such aspect I would become able to take decision about
expansion in the best possible way. Further, to draft suitable plan for the near future I would
consider all the mistakes which affected my performance in the past. This in turn helps me in
avoiding the future problems to the large extent. Thus, it can be said that such overall business
plan has made remarkable contribution in the my abilities, competencies and proficiency level.
24

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