Eat-O-Bowl Restaurant: Innovation and Entrepreneurship Business Plan

This report presents a business development plan for "Eat-O-Bowl," a restaurant concept in London, UK, focusing on vegan options and a unique rooftop cafe experience. The plan encompasses a market analysis, defining the target market and competitive landscape, followed by an industry analysis using Porter's Five Forces to assess the competitive intensity. Operational details cover the restaurant's location, accessibility, and unique selling points. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats facing the business, while financial requirements outline startup costs, forecasted income statements, and break-even point calculations. The plan aims to provide a comprehensive roadmap for launching and sustaining a profitable and competitive restaurant business.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
An idea of business development...........................................................................................3
Market analysis.......................................................................................................................4
Industry analysis.....................................................................................................................5
Operations details...................................................................................................................6
SWOT analysis.......................................................................................................................6
Financial requirements...........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals:..............................................................................................................11
Online:..................................................................................................................................11

INTRODUCTION
With the increase in competition, most of the entrepreneurs have begins with innovation.
Innovation basically aims to improving or replacing something. Innovation denotes as the
specific instrument of entrepreneurs with the support of which a person uses the changes as a
chance for a different business. Innovative entrepreneurship can be understood as the practice of
setting generating new ideas of business aiming to gain profits from the business, help their
community and attain business goals (Amorós, Poblete and Mandakovic, 2019). Entrepreneurs
who are innovative create business models to acknowledge to meet the organisational
requirements while enhancing their competitiveness in the market. An innovative entrepreneur
can be a person who have the ability to manage to produce innovative products to meet the
demands as well as trends of the market. The following report aims to build a business
development plan for a business. In this report, various aspects of business development plan are
covered such as business models, market analysis, industry analysis, operational details, SWOT
analysis and many more.
TASK
An idea of business development.
The business development plan is prepared for the “Eat-O-Bowl” company. It will be a
restaurant establishes in London City, UK. This will be one of the famous restaurants known for
its various food such as a range of different sandwiches, soft drinks, mock-tails, pizzas, burgers,
pasta, chocolate brownies and many more. This restaurant will serve its products and services to
a greater number of customers in the city. It will have professional chefs and cooks who will be
able to serve delighted food and beverages on the table. It will be a rooftop cafe with exciting
and chasing decorum in the restaurant. This company will hire 5-7 professional chefs and 10
junior chefs to support the head chef, 7-8 waiters, one manager and one receptionist. The plan is
made so that this restaurant will be able to serve quality of various snacks, desserts and drinks to
its customers (Business, 2019). The restaurant will have its speciality on its products such as
these products are made from vegan ingredients that helps in creating uniqueness and
differentiation. As this is a trend in the market that customers are more likely to consume food
which are vegan in nature, it will in gaining customer attention.

Market analysis
A market analysis can be used a thorough assessment of a marketplace within a certain
industry. With this analysis, the market dynamics are studied such as potential customer
segments, value and volume, buying patterns, competitors and many more. The market analysis
in Eat-O-Bowl's context is as follows:
 Industry overview: The business Eat-O-Bowl comes in food and beverage industry
which is one of the growing and developing industries. There many business
entrepreneurs who invested in restaurant business as it helps in generating more
customers base as well as profits. It has high competition in the industry so it is necessary
for the respective business to create uniqueness in its services as well as products. It is
seen that nowadays, people are also like to take their meals and eat outside the premises
due to maintaining social distancing and hygiene purpose (Chou and et.al., 2020). Vegan
and less oily products are in high demand by the customers. All such considerations will
be taken into mind for the launch of new business.
 Define target market: It is mainly considered with the market size, demographics,
location psychographic, trends, behaviours and many more. The products and services
will be limited up to regional area so that better the services can be indulged to
customers. The customers are targetted on the basis of behavioural, demographic and
psychographic segments. Customers are targeted mainly between the age group of 18-40.
by analysing behavioural factors, the services also be customized so that every customer
can have better services.
 Competition: There are many local and multinational companies established in UK
which sells high standard services and products to attract customers. Some of main key
competitors Costa Coffee, Fox Cafe Lounge and so forth. Hence, this becomes very
essential for the Eat-O-Bowl to be differentiated in its way so that more customers
attracted towards the brand. It is also identified that there are least barriers to entry in the
industry so it will also must be taken into account.
 Pricing and forecast: This is the last step in the market analysis in which prices are
figure out in order to boost out the sales of business. After analysing all the facts and
figures, the prices will be kept reasonable and affordable so that more customers can

enjoy the services and do not stress out on the price factor. It will not limit the profits of
the business (How to Conduct a Market Analysis in 4 Steps — 2022 Guide, 2021).
Industry analysis
Porter's five forces is known as the model to analyse the industry. This analysis focuses
on the five key forces that determine the attractiveness of the particular sector or industry. In
case of Eat-O-Bowl, the explanation on five forces are as follows:
 Threats of new entrants: Establishing a new restaurant business needs moderate amount
of investment, making it an easy to enter industry. Another aspect that needs to be
addressed is the ease of entry for new restaurant companies is economies of scale, which
can be set once the production as well as other operations attain efficiency. The new
entrants have to address the operating cost and fixed cost while ensuring to establish the
cost benefits. After seeing all such facts, the threat of new entrants for Eat-O-Bowl will
be moderate.
 Bargaining power of buyers: Customers have the power to influence the brand's pricing
decisions and the restaurant sector is also impacted by the choices of customers and their
switching behaviour. Some major factors are items offered by restaurant, changes in
prices, the quality and quantity offered by company and many more. If all such needs are
not passed by the customers, then, customer can easily switch the brand. Therefore, th
impact of bargaining power of customer will be high to the respective business.
 Bargaining power of suppliers: In UK, there are number of suppliers available to the
businesses who can supply all the raw materials such as bread, coca power, butter and
and many more. Having a number of suppliers will decrease the bargaining power of
suppliers as companies can easily switch to the supplier who sells products on affordable
range.
 Threat of substitution: The restaurant sectors has number of entities which creates an
ease to the customers to make a choice and switch from brand to another brand. The low
switching cost is another variable which makes customers to move their loyalty from one
brand to another (Dahlin, 2020). In case of Eat-O-Bowl, as they set the prices affordable,
it helps in gaining customer base and therefore, the threat of substitution will be less to
moderate.

 Competition: There are high number of key players in the restaurant industry which
creates tough competition to the local as well as international businesses. In UK, these
competitors are Hidden Hound, Sweet Noon, Dark Arts Coffee and so forth. All such
leading players keep a bigger amount of market share while maintaining a good amount
of profit and growth.
Operations details
The restaurant “Eat-O-Bowl” will be established in the streets of London City as this is
the place where most people visited to eat snacks and other eatable things. Customers can easily
move into the premises by taking their cabs, taxis or their own private vehicles as there is not
difficulty to park vehicles (Eid, 2019). There will be a parking area where customers can park
their vehicles. Customers will easily find out the restaurant as the it will be standout in the streets
of London City.
SWOT analysis
SWOT analysis is a strategic tool used by organisation to measure its competitive
position and to generate strategic planning. It involves strengths, weaknesses opportunities and
threats of business. This analysis helps in analysing internal as well as external factors, as well as
present and future potential (Li, Wen, and Yu 2021).
Strengths Weaknesses Opportunities Threats
 The key
strength is the
affordable
price range
with great taste
of food and
drinks.
 Convenience
of parking
where
customers will
not have to
 Due to having
a small amount
of market
share, the
customers can
be least
attracted and
move to the
competitors.
 The restaurant
may have
lesser amount
 The company
also grab the
opportunities
by taking
online services
as these are the
new way where
customer place
order and get
delivery at
home.
 It may offer
 Being a new
establishment,
there is threat
in gaining
customer's
trust.
Customers are
always having
fear of
experimenting
something new
or move to

worry about
their car
parking.
 It will have
good menu
quality where
there are
number of
choices of food
to the
consumers.
 Good
ambience and
environment
where
consumers will
eat food and
listening
soothing music
to chase and
uplift their
mood.
 It has a rooftop
view which
offers an
exciting and
overwhelming
view to the
customers. It
will help in
attracting more
of customer
base as
customers are
addicted to
brand where
they find tasty
and hygienic
food.
 Online food
ordering by
people will
create a
drawback to
the respective
business.
 Similar cuisine
type is also a
weakness to
the respective
business. As
the vegan food
is trending,
every next
player trying to
adopt the
strategy and
serve
customers with
vegan food
(Galindo-
Martín,
various offers,
discounts or
prizes to gain
the customer
base.
 Indulging
training to staff
members will
help in
improving
better customer
experiences.
 More
personalised
experience will
also help in
creating better
customer
services and
experiences as
they can see
the efforts by
the business.
 Social media
campaigns will
help in
increasing
customer base.
These
platforms can
be Twitter,
some new
brand (Gao,
Guo and Xiao,
2021).
 Key
competitors are
the major
threat. All local
and global
companies in
the restaurant
industry are a
bigger threat to
Eat-O-Bowl
business.
 Threat of bad
rating is also a
threat to the
business. As
the company is
a new start-up,
there is a
chance that it
will not able to
match tastes
and
preferences of
customers. It
may down the
customer rating
and which

masses.
 It will also
provide
outdoor dining
with indoor
dining for the
customers who
want to enjoy
food and meals
with fresh air
(Yao, Zhang
and Mu, 2020).
Méndez-Picazo
and Castaño-
Martínez,
2019).
Facebook,
YouTube and
many more.
Almost every
customer has
an account on
such platforms
which helps
them in getting
knowledge
about the
nearby places.
ultimately
affect the
future
customers.
Financial requirements

Business Plan for new firm
Start up costs for restaurant business:
Sales: $ 500000 for 5000 units
Cost of sales: $ 170000
Commercial space (Land): $ 150000
Renovation and Décor: $ 230000
Kitchen appliances: $ 115000
Furniture : $ 40000
Restaurant Technology: Software: $40/ month
Hardware: $450
Fixed cost - Licenses and Permits: $ 41500
Insurance coverage: $ 1000
Variable expenses - Administrative charges: $1850
Marketing: $200
Insurance Coverage: $$10000
Salary: $ 30000
Utility expenses: 20000
Income statement (Forecasted)
Particulars $ $
Sales 500000
Less: Cost of goods sold 170000
Gross Profit 330000
Less: variable expenses 62050
Administration expenses 1850
Marketing 200
Insurance coverage 10000
Salary 30000

Utility Expenes 20000
Less: Fixed Expenses 42500
Licenses and Permits 41500
Insurance coverage 1000
Net Profit 225450
Break even point = Fixed Expenses / Sales – Variable cost
42500 / (500000 – 170000 – 62050)/5000
= 42500 / (267950/5000)
= 42500/53.59
= 793 units
This is required for the firm to sell at least 793 units for earning its profits.
CONCLUSION
From the above study, it can be concluded that innovation plays an essential role in order
to get the maximum out of the business. When developing a new business start-up, it is essential
for the entrepreneur to pay close attention on the creativity or innovation in the existing services
to build customer base. A good business development plan will help businesses to stand out in
the market, having high number of customer base, give hard competition to the existing players
and many more. Business plan involves various considerations such as market analysis, industry
analysis, operational details, SWOT analysis and many more.

REFERENCES
Books and Journals:
Amorós, J.E., Poblete, C. and Mandakovic, V., 2019. R&D transfer, policy and innovative
ambitious entrepreneurship: evidence from Latin American countries. The Journal of
Technology Transfer, 44(5), pp.1396-1415.
Business, D., 2019. Innovation and Entrepreneurship: A New Mindset for Emerging
Markets. challenge, 142, p.152.
Chou, S.F. and et.al., 2020. The critical criteria for innovation entrepreneurship of restaurants:
Considering the interrelationship effect of human capital and competitive strategy a
case study in Taiwan. Journal of Hospitality and Tourism Management, 42, pp.222-234.
Dahlin, E., 2020. Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in
Asia by Kathryn C. Ibata-Arens. Social Forces, 99(1), pp.e18-e18.
Eid, H., 2019. Museum innovation and social entrepreneurship: A new model for a challenging
era. Routledge.
Galindo-Martín, M.A., Méndez-Picazo, M.T. and Castaño-Martínez, M.S., 2019. The role of
innovation and institutions in entrepreneurship and economic growth in two groups of
countries. International Journal of Entrepreneurial Behavior & Research.
Gao, J., Guo, Z. and Xiao, Y., 2021, May. Research on Cultivation of Innovation and
Entrepreneurship Ability of Applied Talents under the Concept of" New Engineering".
In 2021 2nd International Conference on Computers, Information Processing and
Advanced Education (pp. 757-759).
Li, A., Wen, C. and Yu, J., 2021. Study on the Value Dimension and the Integration Path of
Ideological and Political Education in College Students' Innovation and
Entrepreneurship Education. International Journal of Social Science and Education
Research, 4(9), pp.496-501.
Yao, W., Zhang, Z. and Mu, X., 2020. Research on Improvement of Innovation and
Entrepreneurship of University Students Based on Studio Cultivation with Tutorial
System. International Journal of Social Science and Education Research, 3(8), pp.190-
196.
Online:
How to Conduct a Market Analysis in 4 Steps — 2022 Guide, 2021. [Online] Available
Through: <https://www.liveplan.com/blog/market-analysis-in-4-steps/>