Business Plan for Delight Cream: Restaurant, UK Market Analysis

This business plan outlines the strategy for establishing Delight Cream, a fast food and bakery restaurant, in the United Kingdom. The plan begins with an executive summary, followed by an introduction that highlights the objectives of the project. The business concept section details Delight Cream's value proposition, offering quality food at competitive prices, and its business offers, including sandwiches, bakery items, and beverages. The plan includes the mission and vision statements, legal formalities, and a comprehensive marketing strategy focusing on market analysis, target demographics, and promotional activities. An operational plan, financial projections, a timeline, and PESTAL and Porter’s Five Forces analyses are also included, along with SWOT analysis, external collaborations, and financial status. The plan emphasizes fresh food, customer satisfaction, and strategic market positioning to compete effectively in the fast food industry.

Running head: BUSINESS PLAN FOR DELIGHT CREAM
BUSINESS PLAN FOR DELIGHT CREAM
Name of the Student:
Name of the University:
Author’s Note:

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BUSINESS PLAN FOR DELIGHT CREAM
Executive Summary
The main purpose of this report is to prepare a business plan. The business plan will contain
an overview of the business which is going to be started. The plan will be containing a market
analysis where the business will set up along with what product the business is going to sell
and which consumers the business will be targeting. The plan is also going to include
operational plan, marketing plan and financial plan. The report will be focusing on the
business which will be established that is bakery and fast food chain named Delight Cream.

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Table of Contents
Introduction................................................................................................................................3
Business concept........................................................................................................................3
1. Value Proposition............................................................................................................3
2. Business offers................................................................................................................6
3. Mission and Vision statement.........................................................................................8
4. Legal Formalities............................................................................................................8
Marketing Strategy.....................................................................................................................8
Operational Plan.......................................................................................................................10
Financial Plan...........................................................................................................................11
Timeline...................................................................................................................................12
PESTAL ANALYSIS..............................................................................................................12
Porter’s Five Force Model.......................................................................................................13
External Collaborations............................................................................................................15
SWOT Analysis.......................................................................................................................15
Financial Status........................................................................................................................17
Reference..................................................................................................................................18

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BUSINESS PLAN FOR DELIGHT CREAM
Section 1
Introduction
The main purpose of this assignment is to analyze and formulate a proper business
plan for opening a fast food and bakery restaurant in United Kingdom (Lang and Heasman
2015). The business that will be opened will be named Delight Cream which will be
providing its customers with both sandwiches and bakery products like cakes and pastries and
beverages. The business plan will contain a detailed analysis of the market and its value
proposition. The report6 will also be containing what the business has to offer and what are
the mission and visions of the business. The business plan will also be containing the
marketing strategy, Operational plan and financial plan which the business will follow.
Business concept
This segment will be containing a Value proposition, what the business has to offer, the
mission and vision statement of the business and the various legal formalities which the
business need to adhere.
1. Value Proposition
The value proposition of the Delight Cream will be to provide its customers with the best
of services and provide better quality of food products in comparison to its competitors at
a lower price. The company core policy will be to provide the customers with good
quality food products and services at a low price (Osterwalder et al. 2014). This policy of
the business is expected to bring in customers as the prices of the food products like
sandwiches, cakes will be comparatively lower as compared to its competitors. The
company plans to maintain its quality as well by establishing kitchens in every store it
opens so that the store can provide fresh food to its customers and ensure that the

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customers are satisfied with the services provided by the store. The fast food chain
markets are doing quite well nowadays as theses are main centres for younger generations
be it for hangouts, casual snacks. The fast food market is also favourable for the working
class as well as they can buy a sandwich and maybe some beverage and be off to work
again. In other words theses stores are capable of providing the customers with instant
food. The market for fast food stores are doing quite well in the market. This proves that
the market is favourable for such types of restaurant chains and Delight Cream intends to
take advantage of the situation (Valadez 2012). Delight Cream will be providing both
restaurant services where people can come in and sit for a quick bite and drive in services
where the customers can drive in and take out the foods. The latter will be done to focus
on the customers who are in a hurry who can have food while travelling. The food on
offer will be donuts, burgers, sandwiches, cakes and different options of beverages.
Ansoff Matrix
This is a tool used by marketing team to determine the marketing strategies and growth of
product as well as market. This analysis is conducted considering new and existing product
and markets (Hussain et al. 2013). The matrix analyses different strategies like market
penetration, product development, market development and diversification. The below figure
shows an Ansoff matrix:

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BUSINESS PLAN FOR DELIGHT CREAM
Figure 1: (Figure showing Ansoff Matrix)
Source: (Mugo, Wanjau and Ayodo 2012)
1. Market penetration: The first quadrant in the Ansoff matrix shows market penetration.
This strategy is often adopted when the company has an existing product and also an
existing market and needs a growth strategy within that market. The business of
Delight Cream is still in its planning phase, therefore this is not the strategy which the
business must adopt. This is a strategy for an existing business which wants to
increase its market shares.
2. Product Development: Product development refers to firms which have a good
market share in an existing market and want to introduce new product in the market.
Product development is needed when the company is aware that it has a good
customer base and knows that the market for its existing product has reached
saturation (Hassanien and Dale 2012). In such a case market penetration strategy is
not applicable any longer. Delight Cream will be opening in next year and does not
have an existing market, hence this strategy does not apply to the business.

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BUSINESS PLAN FOR DELIGHT CREAM
3. Market Development: This is the strategy employed by firms when they want to
introduce an existing product in a new market (Basu 2014). Delight Cream does not
have an established product for which the company is known for in the market as the
business is still not established yet and in its planning stage. Therefore this strategy is
not applicable for the business.
4. Diversification: The diversification strategy in the Ansoff matrix is applicable when
the product is completely new and is being introduced into a new market. In such a
case the company has to work from the scratch in promotion and product
development activities of the business (Chau 2013). Delight Cream will be applying
this strategy as the restaurant will be entering a new market of fast food Industry and
the business will try to make its product as different as possible from what is already
available in the market, hence this will be a new product. The plan will be to establish
a shop so that the business can check how the market responds to the products of the
business.
2. Business offers
Delight Cream plans to provide its customers with best quality foods at the lowest price
possible. The business plans to provide products like sandwiches, donuts, burgers, pastries
and variety of beverages and milkshakes options (Finch 2016). Delight Cream will be
establishing stores with attached kitchens so that every store can independently make its own
fresh food products. The company will be following the policy of Pret A manger which is to
donate the food left at the end of the day as charity so that the freshness of the food products
are not compromised and the business also follows corporate social responsibility with the
same. The company will be offering a variety of sandwiches at a lower price which will be
possible as the business will be striking a deal with the local farmers and follow the policy of

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BUSINESS PLAN FOR DELIGHT CREAM
buying in bulk. This will bring down the prices and will be attracting the customers as per the
plan of the company.
This can be further analysed by product anatomy analysis. Product anatomy analysis
show the key benefit for which a product is purchased (Van Oorschot et al. 2013).
Figure 2: Chart showing Product Anatomy Analysis
Source: (Wilson 2012)
 Core Product: This refers to the products which are on offer by the restaurant and the
primary factors such as tastes, quality.
 Tangible Products: This generally refers to physical factors which includes the food
items on offer.
 Augmented Product: Theses products include both physical and non physical
attributes.

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BUSINESS PLAN FOR DELIGHT CREAM
 Potential Products: These products are just ideas which can be converted in actual
products. In case of Delight Cream the products which the business plans to add to the
menu are all potential products.
3. Mission and Vision statement
The mission of the restaurant will be to provide best services to its customers and also
provide best quality of food to its customers at the lowest price possible (Dermol 2012). The
vision of the company is to acquire maximum market share and become the leading brand of
fast food chain industry in the company leaving behind its competitors.
4. Legal Formalities
Delight Cream have to obtain license from the government of United Kingdom and
also with a food quality agency which can check the quality level of the food which will be
provided by the company.
Marketing Strategy
The marketing strategy of the business will analyse the customer’s perceptions, taste
and preference pattern of the consumers. The company will be formulating their marketing
strategies after the analysing the market structure, demographic structure of the area and
target customers of the company. Delight Cream plans to target the younger generation of the
demography and also the working class of people. The younger generations prefer fast foods
and can be a reliable group of customers for the restaurant. Then there is the working class
people such as businessman, clerks who are in a bit of hurry and want a quick bite preferably
sandwiches for their lunch which the restaurant will be able to satisfy. However the restaurant
will be facing tough competitions from competitors like Mcdonalds, Pret A Manger, Subway.
The restaurant will be providing quality services to its customers. Delight Cream will be free
lunch for the opening day in order to attract customers and the company also plans to

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BUSINESS PLAN FOR DELIGHT CREAM
organize a lucky draw in every six months interval the winner of which will get coupons and
price discounts or free meals of the restaurant. These activities will help business to built
strong customer relationships. The marketing activities of the restaurants will be advertising
the products and creating an online buzz. The restaurant will be providing home delivery
services and online food ordering services after two months of establishing the restaurant.
Marketing mix are the p’s which affect the marketing activities of business. Initially
there were 4 p’s but later on 3 new extended p’s were introduced (Yasanallah and Bidram
2012). The seven p’s are discussed below:
1. Product: The product should be such that it satisfies the desires of the consumers. The
product is the main constituent of marketing mix as this is served to the customers
(Jain 2013). In case of Delight Cream the main products on offer will be sandwiches,
burgers, cakes and beverages and milkshakes. The restaurant plans to have variety of
food products on offer.
2. Place: The product which is produced by the company needs to have a place where
the product can be sold. This place can be market, shopping mall, main front
Restaurants. Delight Cream also plans to open a restaurant in a business area of
London which will ensure that the business men are drawn to it for a quick bite or
lunch.
3. Price: The price of the product should be such that the value of the product matches
its price. Delight Cream have a core policy of keeping the prices of its products as low
as possible. The price will be an important determining factor for the business as this
is intended to attract customers.

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BUSINESS PLAN FOR DELIGHT CREAM
4. Promotion: These activities mainly include advertisement and promotion activities.
Activities of such nature includes door to door sales, retail sales and sale promotion
activities (Wirtz 2012). Delight Cream will include lucky draws, free meals and
advertisement activities.
5. People: This is newly added element are people. Every organisation is managed by
different groups of people whether it is production, marketing r sales department. A
success of a business largely depends on the workforce of the business.
6. Processes: These includes the services which are provided during the delivery of the
product or after sales services. Delight Cream plans to introduce a feedback and
compliant redressal system.
7. Physical Evidence: The last introduced element in marketing mix is physical
evidence. Every services include some physical factor which also needs to be
considered.
Operational Plan
The operations of the restaurant will be managed by the manager who will be placed
in restaurant who will be also known as store managers. There will be a supervisor who will
look into the day to day business management of the business like stock of food items used
for cooking like vegetables, meat, appearance of the shop, hygiene conditions in the shop.
The management of the entire business will be handled by the owners who are partners. One
of the partners will be responsible for the operation activity of the business and another will
manage the funds of the business and look for expansion of the business.

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BUSINESS PLAN FOR DELIGHT CREAM
The key resources which are used by the business mainly consists of regular food
items like bread, flour, meat, creams, chocolates which are bought from the local farmers or
providers and the purchases are made in bulk therefore there is always discounts available.
The restaurant will be hiring local people to handle the stores as they will be able to
handle the local customers better. The supervisors will be hired personally by the owners as
they hold an important position in the restaurant.
Financial Plan
The financial plan as prepared by the management of Delight Cream shows that a
major portion of the funds will be contributed by the partners of the company or owners of
the company. Another half of the funding will be done by business by application of loan
from banks (Arrondel, Debbich and Savignac 2013). The plan of the management is to
contribute around 60% of the capital by the owners and the rest 40% will be taken as a loan
from a bank. This will be done so that the company can maintain a proper debt equity ratio
and the burden of the loan does not exceed much. The funding will be accumulated for
purchasing a shop big enough to suit the requirements of the business (Brigham and Ehrhardt
2013). The business also have prepared a start up cost which is needed to get the restaurant
up and running.
The sales of the business will be measured on a quarterly basis and the forecasted
figure is kept same for each quarter. The different cost areas which will probably arises are
identified such as rent, interest, raw material cost and the same has been forecasted
accordingly. The business expects to earn low cash flow initially and predicts that the
outflows will be more for the first three quarters or so. The balance sheet will be including all
the assets and liabilities which the restaurant will be needing like furniture, equipments and
other assets as well.