HM604MR-20S1A: Developing a Business Plan for China Gate Restaurant

This document presents a comprehensive business plan for "China Gate," a proposed Chinese cuisine restaurant located in China Town, Ontario, Canada. The plan details the company's mission to provide high-quality Chinese food and beverages at nominal prices, targeting the local Chinese community and individuals fond of Chinese cuisine. It includes a market analysis, highlighting the need for fresh, customizable options compared to existing competitors. The plan outlines the restaurant's style, branding strategy, menu, pricing, promotion, and operational management, emphasizing service quality and staff training. Financial aspects, such as food cost calculations and pricing strategies, are also addressed, with the aim of achieving profitability and expansion within the first two years. The document further covers legal considerations and provides references to support the business plan's viability.

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Title and Code of the Module:
HM604MR-20S1A
Food And Beverage Management

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Table of Contents
"CHINA GATE" ........................................................................................... Error! Bookmark not
defined.
Description of Company: .............................................................................................................................. 3
The Business Plan:......................................................................................................................................... 4
The mission of China Gate: ........................................................................................................................... 4
Objectives of China Gate: .............................................................................................................................. 5
Location:........................................................................................................................................................ 5
Target market: .............................................................................................................................................. 5
Market Needs: .............................................................................................................................................. 6
Restaurant St yle: ........................................................................................................................................... 6
Analysis of China Gate competi tors: ............................................................................................................. 8
Products: ....................................................................................................................................................... 8
Price: ............................................................................................................................................................. 8
Food Cost Formula Example ......................................................................................................................... 9
Table 1: calculation of food cost................................................................................................................. 10
Pricing Strategy: .......................................................................................................................................... 10
Items on The Menu Card: ........................................................................................................................... 10
China Gate Menu Card: ............................................................................................................................... 11
Promotion And Marketing Strategies: ........................................................................................................ 14
Food production methods: ......................................................................................................................... 15
Planning And Operational Management: ................................................................................................... 15
Service and Quality: .................................................................................................................................... 15

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China Gate offers three kinds of services: .................................................................................................. 16
Training of staff and Customer services: .................................................................................................... 16
Legal Aspect s: .............................................................................................................................................. 16
References: ................................................................................................................................................. 17
Description of Company:
The plan is to open a Chinese Cuisine restaurant- providing Chinese food & beverages
along with a mesmerizing environment. The name of the restaurant chosen is "China
Gate". It is an eating place for people who love to eat Chinese Cuisine in Canada.
First step Before Launch: conduct a market survey
The food industry is one of the fast-growing industries that are enhancive and are
authentic. The perpetual orientation that is brought about by the food industry is the
ruling factor these days. Before opening and jumping into the market, first, we would
conduct research. This research would take one to two weeks. To get a deeper
understanding of the Chinese food & beverage industry in China Town, Canada, we
plan to open. Next, we would collect the data on who our target would be( Chinese and
other people who love to eat Chinese Cuisine), latest trends of the competitors already
working in the industry.
Policies in the food and beverage industry of Canada:
The Canadian people are conscious of the quality of food they eat. There is no room for
an unhealthy diet in the country. Keeping this trend in mind, it is wise to open up a food
& beverage restaurant, which provides high-quality food prepared according to the rules

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and legislations sets by Health Canada, at nominal prices. Quality with along
uniqueness in the Food & beverage industry bring in more customers.
There are a set of policies that are put forth like that of food consumption policy, sound
development of food industry, policies on imports and exports that are vital to be
considered.

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The Business Plan:
The business plan of the China Gate is designed to compel the potential stakeholders to
invest. It also gives them security about how the Food & beverage project will move
forward.
China Gate is a new addition to the most admired Chinese restaurants in China
Town to give a home-like feeling to the Chinese community in Canada. It also
warm-heartedly welcomes the foreigners to try the Chinese Cuisine and
experience traditional China while sitting in Ontario, Canada.
The story of selection is to justify the probability to let the organization get stapled on to
the wide country policies and the enormous growth prospect.
The mission of China Gate:
China Gate aims to give the best Chinese Cuisine with high-quality service to the
foodies at nominal prices.
China gate aims:
 To give the trendy yet hygienic Chinese Cuisine.
 Provide a great working environment to the staff with dignity and respect.
 Includes diversity in its workforce.
 Incorporate the highest standards of excellence in food production, preparation,
and service to potential clients.
 To build and maintain long-lasting relations with the clients.
 Contribute positively to the welfare of society and the environment.
 Acknowledge that profitability is essential to the success of China Gate.

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Objectives of China Gate:
There is a list of main objectives of the new venture. To complete construction in 6
months after the final OK to the project is given. This helps to attain a positive net profit in
the first quarter. To Become a market-leading Chinese Restaurant in China Town and to
expand in other parts of the country after two years by generating an average $70,000
plus in revenues monthly. This helps to increase annual sales between 7-10%.
Location:
The location was chosen for the restaurant China Town in Ontario, Canada. The
restaurant covers a total area of 400 sq. yards, and it is located on a busy road of China
Town. The population residing in China Town is the Chinese community and belongs to
Upper-middle-class or middle-middle class. The reason to choose Canada is to ensure
the fact that that the business flourishes with the better identity that will get to stay
enhancive over time with the proper customer base.
The plan highlights that the restaurant will be opened for customers after eight months.
The initial six months would be spent on the restaurant's interior décor and two months
for marketing through various platforms.
Target market:
Who are our target customers? •once the target market is defined, we have to
understand what they buy, why they buy, where they buy from? This would help us to
offer the best and unique items on the menu card to our clients. The target market of

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China Gate is the Chinese community living in Canada, who wants their desi cuisine.
The target market are the youth and the elders that are mostly favorable to go with the
ideology of food approaches.

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We also target people who are fond of eating Chinese Cuisine. Our restaurant is for
people coming from upper middle class and middle -middle-class families.
Market Needs:
In China Town, Ontario, there are several high-quality Chinese food restaurants, but
these are expensive. They also use canned foods like prawns, chicken, or fish for food
production. . the China Gate food will be 100% freshly prepared by the chefs in front of
its customers. The China Gate also allows its clients to customize their food to their
specific tastes. There are several trends that are highlighted to make sure that the
needs are all perpetual. The aspiring varieties of foods and variable flavors are all the
requirements of the market.
Restaurant Style:
A Chinese layout restaurant- such an interior of the restaurant would let the China Gate
stand out from the crowd with unique design ideas and layouts that will make the
establishment remembered by the customers.
The main idea of the atmosphere of a layout isn't only to make the customers feel
welcome—the management of China Gate also wants to provide its customers with a
memorable experience they'll want to come back to.
Branding- China Gate needs a brand logo. We plan to design the China Gate menu,
background music in the restaurant, cutlery, and even and uniforms of restaurant staff
to comply with the Restaurant logo. China Gate's staff uniform would be black. The
restaurant's layout would have red as the prominent colour, from chairs to table clothes;

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all would be red. China Gate would play traditional Chinese folk music in the

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background, but in a low tone, so that the customers can enjoy food while listening to
the background music. The walls of China Gate would be beautified with Chinese arts.
The China Gate logo would let its customers know what the restaurant is all about.
China Gate's logo includes a large red-colored Chinese Dragon with a black
background. This logo sets the tone of the Chinese restaurant and lets the customers
know what they can eat here. A three-stage theory can be taken in this regard. It
includes:
Design: A favorable logo is one of the finest measures of branding that can be
inculcated.
Value proposition: the products and services will bring in the category that is being
defined. It will also highlight the prominence of the organization along with the clarity of
the brand.
Positioning statement: This entirely goes with the interface of customers and how far
they are been able to tackle with the needs of customers.

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Analysis of China Gate competitors:
As the name indicates, China Town is a place of the Chinese community in Canada.
There are almost 20 other small and large Chinese restaurants offering multiple
Chinese cuisines and beverages in China Town. Among them, WangFu, Dragon City,
Mei-Kong, and China Grill are a few. All of them are highly acknowledged by the
customers and have a large target market. It is important to check what our competitors
are offering? China Gate needs to create its point of competitive difference- Chinese
Dishes: Dumplings, Chow mein, Yangzhou Fried Rice. It doesn't have to be radical
here, but it does have to be relevant. A perfect market research is one of the prominent
factor that will let to understand about the competitors. This can also help to deal with
the prominence of market criterion that can enhance a business.
Products:
China Gate is almost providing the same number of dishes just like other Chinese
restaurants in the market. Still, China Gate believes in differentiating its items on the
menu card through high quality. Quality is the only factor that can make the product
unique from its competitors. The number of servings is also unique for China Gate. The
uniqueness about the products is that there is a specialty in the taste of the recipes that
are contained. The continental recipes are contained in the firm.
Price: