Business Plan: The Cafe House, London - Introduction to Business

This report outlines a comprehensive business plan for 'The Cafe House,' a small restaurant in London, focusing on the Kennington area. The plan details the necessity of a business plan, funding requirements, financial highlights, and a purpose statement emphasizing customer service and employee satisfaction. It delves into restaurant operations, including operating policies, inventory controls, and management strategies. The market analysis covers target markets, segmentation, and competition, highlighting competitive advantages. The plan also addresses market positioning, branding, and marketing strategies. The financial projections provide revenue forecasts and expense breakdowns, while operational details cover hours, payment methods, and target customer demographics. Overall, the plan aims to establish a successful and sustainable restaurant by focusing on high-quality service, effective management, and strategic marketing.

RUNNING HEAD: INTRODUCTION TO BUSINESS
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Introduction to Business
Business Plan- A small hotel business located in the United Kingdom
Submitted by:
11/21/2017

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Contents
1. Introduction.........................................................................................................................................3
Scope.......................................................................................................................................................3
Necessity of business plan.......................................................................................................................4
2. Business Plan.......................................................................................................................................4
Funding Requirements and Capitalization plan...........................................................................................4
Summary of financial highlights..............................................................................................................4
Purpose Statement.......................................................................................................................................5
Restaurant Operations.................................................................................................................................5
Restaurant Operating Policies..................................................................................................................6
Strict Inventory Controls.....................................................................................................................6
Purchasing Cost Controls....................................................................................................................6
Recipe and Portion Controls................................................................................................................6
Cross Utilization of Inventory.............................................................................................................6
Effective management.........................................................................................................................6
Software and Systems..........................................................................................................................7
Training program.................................................................................................................................7
Money Management............................................................................................................................7
Retention through support and feedback..............................................................................................7
Operating Details.................................................................................................................................8
Market Analysis..........................................................................................................................................8
Target market..........................................................................................................................................8
Market segmentation...............................................................................................................................8
Competition.............................................................................................................................................9
Competitive advantage............................................................................................................................9
3. Further Plan.........................................................................................................................................9
Market positioning and branding.................................................................................................................9
Marketing strategies..................................................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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1. Introduction
The plan is regarding the proposal of a small restaurant in London and represents the process to
execute a business plan in an effective way. A project planning is important regarding running a
small business organization in order to manage the contingencies. An effective business idea
therefore helps in managing the business needs. This report is regarding a small restaurant The
Cafe House Located in Kennington area. As a small entrepreneur it is important for them to
finally implement an effective business plan. This is essential for the organization to develop an
effective business plan in order to overcome the loopholes in future endeavour. A business plan
includes all the essentials that are important for an individual to gain effectiveness in meeting the
group goals. In order to establish a goal it is evident to manage the business activities in order
manage the business functions in an appropriate way (Barber, Metcalfe and Porteous, 2016).
Scope
The report present before a proper plan to develop an effective business plan. The purpose of
this plan is to manage the effectiveness associated with the development of a restaurant. The
purpose is to measure each and every aspect associated with the restaurant business. It provides
with an effective business planning, marketing objectives and financial planning that affect a

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business to operate in an effective way. This is important from the point of view of gaining
competencies in coming years (Bridge and O'Neill, 2012).
Necessity of business plan
A Business plan is a document providing specific details about the business. It carries
information regarding the business and how an organization will carry forward the business in a
definite way (McKeever, 2016; Finch, 2016). This Comprehensive business plans have three
sections--business concept, marketplace and financial—and provides information regarding the
overview or summary of the plan, a description of the business, market strategies, competition
analysis, design and development, operations and management, and financial information(Mason
and Stark, 2004). The Cafe House Business plan includes information regarding the various
aspects that is necessary to manage restaurant in a definite way. This is important enough for
guaranteeing sustainable growth in the business plan. It is effective while defining objectives in a
well-defined way. Most importantly this is necessary for securing effectiveness in order to
persuade goals (Burns, 2010).
2. Business Plan
Funding Requirements and Capitalization plan
The restaurant requires $ 3, 00,000 in capital to fund the launch of the restaurant. A sum of $ 2,
00,000 is procured from bank and the rest of the amount is contributed by the partners Jake and
Ellen in equal proportion. These funds are generated from the operations will be carried forward
to carry out the business activities. The capital will be utilized in the following manner:
Amount Application of Proceeds
$35,000 Tenant improvement
$48,000 Furniture , fixture and equipments
$ 217,000 Working Capital
Summary of financial highlights
Year 1 Year 2 Year 3 Year 4 Year 5

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Revenue $825900 $1044544 $1078564 $1177441 $1216465
Cost of
Goods Sold
$200000 $254546 $215445 $284645 $301151
Employee
expenses
$320000 $214546 $248745 $275465 $246463
Operating
Expenses
$310000 $453264 $466645 $456446 $471545
EBITDA ($4100) $122188 $147729 $160885 $197306
(Data used is based on assumption in order to acquire vision of business plan)
Purpose Statement
The Cafe house is established at Kennington with a focus to give premier services to the people.
The premium services will help them to make appropriate decisions in all their future
endeavours.
 To provide with excellent services through a popular menu with a great atmosphere
 By providing a great work environment to the employees with dignity and respect.
 By embracing diversity at workplace and essentially managing the employees interest
 Applying the highest standards of excellence to the food production, preparation and
service (Greenhalgh, 2008).
 Building a long lasting relationship with the customers
 Contributing positively to the communities and the surroundings.
 Recognizing the profitability and essential future success (Goss, 2015).
Restaurant Operations
The success of a restaurant resides in implementing the operating standards and philosophies
within the business plan. The purpose is to provide great support by combining efforts (Hanks,
2015). In order to achieve effective results, The Cafe House has to employ following strategies
in order to gain effective results:

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Restaurant Operating Policies
The Cafe House is managed by different operating strategies and policies that the owners have
developed in order to gain standards in the most appropriate way. The purpose is to achieve an
effective productivity and profit. It is important from the point of view of creating effective
business opportunities. This is necessary for developing effective business goals and pushing the
team to work efficiently (Jenkins, 2009).
Strict Inventory Controls
The restaurant will implement a strict inventory control in order to reduce the wastage. The
usage of goods will determine the operating cost and guard against the loss. Physical inventory
system will guide in managing the daily as well as weekly cost. This strategy will help in
guiding the employees for ensuring highest degree of accuracy (Kaisler, 2013).
Purchasing Cost Controls
The Cafe House will monitor the vendors in order to get the best price. In this way they will be
able to regulate the cost while managing the requirements. The menu composition and pricing
therefore ensure profits (Lechner, 2014)
Recipe and Portion Controls
The Cafe House provides with the standardized recopies that are developed by the gourmet chef.
The overall focus is to implement effective and innovative dishes in order to make a change.
The Cafe House will implement the effective planning and development process in order to
manage the portion of dish. The company will follow a similar guideline to control and monitor
the portion of dishes served in the restaurant.
Cross Utilization of Inventory
This includes using the secondary scrap from the food preparation in order to make other dishes
in order to maintain the taste. The purpose is to initiate the effective technique in order to
manage the high food quality. This help in managing the quality of food served in the restaurant.
Effective management
Jake and Ellen will be responsible for running the day o-day-operations; however duties will be
designated to the managers for carrying out daily activities. Weekly meeting with the staff will
help in managing operational function. Key decisions regarding the organization will be

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undertaken by the management. The employees have to function according to the instructions
given by the management (Peppard and Ward, 2016).
Software and Systems
The Cafe House will function efficiently with a focus to enable functions in the most effective
way. The purpose is to find out appropriate software in order to gain accuracy in managing the
process. The customer marketing efforts and other real time entry will be managed through the
software (Schaper et al 2014).
Training program
The overall focus of The Cafe House is to develop an effective planning and learning process by
initiating an effective planning and learning process. Employees will be given timely training in
order to gain competency. This will help in arranging different needs and allow in managing the
appropriate functions (Street and Cameron, 2007). The new staff will be given ann. appropriate
training in order to focus upon the work. It is important for managing the functions in a well-
defined way. This is important for gaining effective organizational goals and matching up with
the expectations. It is necessary for managing the requirements in order to gain effectiveness
(Storey, 2016).
Money Management
The purpose of restaurant is to manage the money in an appropriate way by creating a positive
impact. This will gradually help in organizing the money in order to gain better result. The
decisions will be taken customers in mind. Trends will be calculated in a constructive way by
managing the needs. The management will be taking care of the remote actions. This includes
the actions pertaining to the daily monitoring and approval of data.
Retention through support and feedback
The key focus of the Cafe House is to create an appropriate work environment for both male and
female. The purpose is to guarantee systematic growth and development by guaranteeing
effectiveness. The organization is clearly defining the goals by rewarding the employees. It is
providing them with a tool to gain efficiency at an appropriate rate. They are enabling
employees to develop themselves in order to gain effective results (Berringer, 2012). They are
encouraging employees to gain effectiveness by putting their 100 percent efforts and making the

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most of the give opportunity. The purpose is to ensure effective results by providing them with
an authority to take decision. The restaurant is mostly focused on creating a positive environment
(Abrams, 2003).
Operating Details
The restaurant will operate everyday from11:00 are to 11:00 pm. The restaurant will accept ach,
traveller’s cheque, visa, master card etc. It is an equal opportunity employer by taking care of
individual needs. The purpose of restaurant is to provide customers with specific needs like
organizing birthday parties, occasions etc. This will help in managing the objectives of the
restaurant in a definite way. It is necessary from the point of view of gaining direct objectives.
This will however help in adding value to the organization in a definite way (Zimmerer, et al
2005).
Market Analysis
Target market
The company is targeting on the age group of 20-50 years who enjoy good food and like going
out with friends and relatives. The primary focus is to create a positive impact in the mind of
people by serving them quality dishes. The Cafe House is a place that offers people to enjoy
their time with family and friends. The purpose is to promote relative high growth with a direct
focus. The target customers include:
 Those who enjoy eating out
 One who enjoy eating food outside
 One who enjoy real food and sense of style
 Believes in a good value
 Single/married
 Employed part time and full time
 Family is significant
Market segmentation
Kennington area is well-populated area where people enjoy going out and like variety of food.
They like enjoying their time and mostly visit the cafe and restaurant during the weekend. The

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Cafe House will largely be focused on the target customers by coming up with different offers.
The area is also visited by outsiders as well. This will create a better opportunity for the Cafe. In
this way they will be able to gain competency. Focus need to be given on each of the market
segment in order to gain effectiveness. This is important from the point of view of gaining
adequacy in each and every segment. In this way it is possible to manage the growth and
effectiveness in the organization in meeting direct objectives. This is important enough for
persuading goals in a definite direction.
Competition
There are numerous competitions in the area. There are variety f restaurant that are established
from years. These restaurants may cause Hands in Pasta, The White Bear, The hang Out, I due
Amice.
The above mentioned restaurants are located in the Kennington area. These restaurants are
working from a long time. This can affect the restaurant in many ways. It is important to
evaluate the competitive advantage in order to manage the organizational goals. The primary
focus of the restaurant is to create worth in order to persuade customers to gain effectively. This
is primarily important for gaining effectiveness.
Competitive advantage
There are several competitive advantages that are helping in gaining effective growth. The menu
is rightly priced in order to attract more customers. The restaurant is centrally located that will
attract people who are interested in trying new places. There is no other substitute available that
will replace the restaurant in the current time-period. The restaurant will come up with new
offers that will help in adding a competitive advantage.
3. Further Plan
Market positioning and branding
The restaurant will try to reinforce the market positioning and branding strategy in an effective
way. They are focusing on managing each and every aspect while creating a better supporting
system. They are establishing a better connectivity through development.

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 The Cafe House stands for warmth. hospitality and courtesy
 It is about enjoying food cooked in homemade style.
 The overall purpose is to provide effective service
 The primary focus is to gain customer satisfaction.
 This is carried out through professionalism and effective stakeholder interaction
Marketing strategies
The restaurant is focused on gaining marketing objectives by aggressively implementing the
business plan. The overall purpose is to initiate growth through managing the organizational
needs. This is important for gaining effective market growth with a focus to gain competitive
goals. Various marketing strategies implemented by the company are as follows:
 Advertising in an appropriate newspaper
 A comprehensible, informational website to attract new customers
 Efficient public relation strategies in order to gain competitive goals.
 An effective program to increase awareness of the visitors coming to the hotel
 Comprehensive information in order to attract new customers
 A policy that attract retention as a new customer acquisition
 Create organizational worth through word of mouth.
Conclusion
To conclude, The Cafe House is a well-defined restaurant providing with definite objectives in
order to gain sustainable role. The primary purpose of the plan is to gain objectives by defining
effective goals. These goals will help in gaining organizational objectives. The plan is important
enough in managing work in a definite way. This help in persuading the goals in a definite way
through management of objectives. This is necessary enough in dealing with the objectives and
attaining organizational goals. This is important enough in managing objectives and directing
better results. . The purpose is to measure each and every aspect associated with the restaurant
business. It provides with an effective business planning, marketing objectives and financial
planning that affect a business to operate in a diversified conditions. This is important enough in
attaining better results by framing objectives that drive in gaining conclusive results. It is

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important from managing direct goals and persuading every individual to work in a better way
by managing objectives that are crucial for the organization. It is essential from the point of view
of gaining results for attaining a definite direction. This is necessary enough for managing direct
objectives in order to manage results.

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References
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Barber, J., Metcalfe, S. and Porteous, M. eds., 2016. Barriers to growth in small firms.
Routledge.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
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business. Palgrave Macmillan.
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Macmillan.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
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Jenkins, H., 2009. A ‘business opportunity’model of corporate social responsibility for small‐and
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firm performance. International Small Business Journal, 32(1), pp.36-60.

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