Concept Business Plan: Food and Beverage Management (HM7002), Part B

This report presents a comprehensive business plan for a new Italian restaurant concept. It begins with a concept overview, emphasizing traditional Italian cuisine and a classic environment. The mission statement focuses on providing fresh, affordable, and delicious Italian food. The catering policy outlines full table service, 'Sous Vide' cooking methods, and 'A La Carte' menu preparation, along with takeaway and online ordering options. A marketing plan includes grand opening celebrations, social media marketing, and direct mail campaigns. PESTLE and SWOT analyses are provided, evaluating political, economic, social, technological, environmental, and legal factors, as well as strengths, weaknesses, opportunities, and threats. An organizational structure is proposed, followed by a detailed financial policy, including start-up costs and a first-year budget with revenue and expense projections. Finally, operating controls and ratios are outlined to ensure profitability, including inventory management and POS system utilization.

HM7002
FOOD AND BEVERAGE MANAGEMENT
CONCEPT BUSINESS PLAN (REPORT)
Part B
Submitted by: - Rishav Gagneja
Submitted to: - George Jajoura
Institute: - Wellington Institute of Technology
Date: - 01/May/2019

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Table of contents
PART B....................14
Concept Overview, Mission Statement and Catering Policy.........................................................14
Marketing Policy and Brief Marketing Plan for Initial Year.........................................................15
PESTLE and SWOT Analysis.......................................................................................................16
Organisation Structure...................................................................................................................18
Financial Policy and Start-Up Costs..............................................................................................19
Budget............................................................................................................................................20
Operating Controls and Operating Ratios......................................................................................21
Conclusion........................................................................................................22
References......................................................................................................................................23

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PART - B
Concept Overview
The concept of the new restaurant business is to introduce Italian services and styles as
well as food and beverages. The foods offered along with the related services will be
based on traditional dishes of Italy. Moreover, the environment of the restaurant will be
traditional and classic for ensuring an exceptional experience to the consumers dining at
the place (Colin Barrow, 2015). The cuisine style and the food offered will be mostly
Italian and the staff services will be classic Italian.
Mission Statement
The mission statement of the new business will be “To provide fresh, nutritious,
healthy and great tasting Italian cuisine at an affordable price in a clean, friendly
and convenient environment”.
Catering Policy
The catering policy that will be followed by the new restaurant that will be set up in
New Zealand will be offering full table service with a focus on following the
preparation of food and beverages in a prompt manner that will also ensure taste and
health to its target consumers. In this policy the restaurant business will follow “Sous
Vide Method” in food will be cooked in several process combinations through vacuum
sealing that will support rapid cooking and chilling. “A La Carte” menu preparation will
also be a part of its catering policy. Also, restaurant will provide takeaway service and
Uber eats services which helps customers to order food from online websites.
Marketing Policy and Brief Marketing Plan for Initial Year
The marketing policy of the new restaurant business based in New Zealand will be to
employ distinct marketing strategies and mediums to increase consumer awareness
regarding the products and services offered by the restaurant.
The marketing plan for the new business will consider the implementation of the
following marketing strategies:
 Grand opening celebration for the restaurant offering complementary Italian foods
and drinks to increase consumer awareness

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 Social media marketing strategies will be used through posting videos and attractive
images of Italian cuisine on Facebook, Twitter, and Instagram for increasing
advisement reach to a broad range of target consumers (McKenzie, 2015).
 Direct mail marketing by sending personalized e-mails to the local residents
containing interior pictures of the restaurant and its food offerings, “Theme Nights”
and explaining the catering concept to them.
PESTLE and SWOT Analysis
SWOT and PESTEL analysis of the new restaurant based in New Zealand is carried out
in analyzing the strategic advantages that is considered to be attained by the business in
the initial years of its set-up.
Strengths
 It will maintain a high standard of
food and beverages along with their
presentation
 Wide variety of traditional Italian
menu
 Convent location and reasonable
price
Weaknesses
 Pressure on the owner to give full-
time attention to every business
operation
 The familiarity of new employees
with the restaurant activities
Opportunities
 International expansion over
upcoming years of its business
 Interdiction of new food and
beverage products
Threats
 Low-cost competitors existence
 The threat of losing consumers
Table 1: SWOT Analysis
Source: (Scarborough, 2016)
Political Operations of the restaurant business can
be influenced by state policies in New
Zealand regarding tax and employment
law along with the health implications of
food.

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Economical The new restaurant business in New
Zealand is deemed to be affected by the
changes in the exchange and inflation rates
in the nation.
Social The new consumers of New Zealand are
observed to be health consciousness,
social media fanaticism and the cultural
beliefs regarding the food offerings in the
restaurant.
Technological It is observed that there are increasing
trends in the New Zealand hospitality
industry regarding innovations on the
supply chain, food, and beverage
prediction mechanism and regarding
marketing strategies.
Environmental Strict government rules and regulations on
keeping the food offerings healthy and
nutritious for consumers. The increasing
trend of sustainable food products
sourcing to maintain sustainability.
Legal New Zealand government ensures a
constant supply of quality food products
and beverages. Based on the same, there
are rules and regulations regarding the
supply and provision of food offerings in
the market.
Table 2: PESTEL Analysis
Source: (Kayleigh Watson, 2018)
Organisation Structure
The figure below is the estimated organization structure of the new restaurant business
in New Zealand. As per the structure, the restaurant owners will be responsible for

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managing the business finances along with offering direction to employees regarding
daily operations (Kevin Mason, 2016). The general managers along with the assistant
managers will be responsible for managing restaurant operations along with training and
hiring staff and ordering inventory etc. The bookkeeper manages the accounting and the
finances of the restaurant and will report all the information to the owner and the
general manager. The kitchen manager will be responsible for managing executive chefs
and handing back-office operations such as creating menus and setting prices. The
position staff such as servers, hosts, cooks, bartenders, pantry and dishwashers will
offer quality service to consumers through offering freshly prepared food and
beverages, attaining raw materials from sustainable suppliers along with ensuring
smooth operations of the restaurant activities (Restaurant Organizational Structure, n.d).
Figure 1: Organization Structure of New Restaurant Business

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Financial Policy and Start-Up Costs
Financial policy plays a vital role in every business sector. Funding can be raised in two
ways which are: long term and short term. Long term funds can be raised from issuing
shares to public and short-term can be raised from personal sources and personal
finance loan, financial policies contribute in long term success of the business so that
company can achieve desired objectives accordingly. The financial policy can be
framed on the basis of the budget plans, sales projections, hourly labor cost projections,
contingencies, and working capital in regards to the restaurant. The financial policy of
the new restaurant business to be set-up in New Zealand will be to decide whether
investing within the business is in consideration to the wise funds use. The new business
will be financed or funded through loans from a bank that will be repaid within the time
span of five years (McKeever, 2018).
Start-Up (List of Activities
Below) Monthly Costs ($) Total Costs over 6
months
1 2 3 4 5 6
Furniture and fixtures 2220 2330 2440 2550 2660 2770 14970
Advertising and promo
expenses 2100 2200 2300 2400 2500 2600 14100
Opening inventory 1500 1600 1700 1800 1900 2000 10500
Capital equipment 1750 1850 1950 2050 2150 2250 12000
Location and admin expenses 550 680 810 940 1070 1200 5250
Total 56820
Budget
The estimated budget for the successful implementation of the business plan of the new
restaurant business in New Zealand is indicated below:
Particulars Total
Revenue from
Food
$ 3,48,020.01

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Revenue from
beverage
$ 2,32,013.34
Revenue from
home delivery
$ 1,16,006.67
Total Revenue $ 6,96,040.02
Semi-Fixed Costs
Food production $ 3,77,021.68
Rent $12,000.00
Fixed Costs
Salary $18,000.00
Interest Expenses $14,400.00
Maintenance $6,000.00
Supplies $17,401.00
Electricity $8,700.50
Accounting
expenses
$6,000.00
Total Expenses $ 4,59,523.18
Profit $ 2,36,516.84
The budget indicated in the table above explains that the estimated revenue that
will be attained through selling food is around $ 3,48,020.01, anticipated revenue
attained from selling beverages is around $ 2,32,013.34 and revenue from home
delivery is expected to be $ 1,16,006.67 in the initial year of business operations.

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Moreover, the estimated semi-fixed costs that are to be experienced by the new business
include food production and rent. Additionally, the fixed cost that are to be experienced
by the company in its initial year includes on salaries, interest expenses, supplies,
maintenance, electricity and accounting expenses.
Operating Controls and Operating Ratios
The restaurant should control its business by implementing various methods on their
business so that any misuse or loss can be removed and this will not affect the
profitability ratio of the restaurant. Following the operation, control should be
established by the restaurant in order to make proper control over the inventory so that it
can increase profits.
 Regulate and check daily consumption: The restaurant should check and monitor daily
consumption on a regular basis. It will be helpful as the available stock can be
determined in the warehouse and with this, inventory budget and inventory report can
be prepared quickly.
 Order at right time: With the management of inventory, it will be helpful for the
restaurant to place order again as it has the inventory report.
 Use POS: By the using of POS (Point of Sale) software, the management can focus on
the profit and sale during the period. POS helps to calculate sale for the period as
required.
 Overproduction can be controlled by the restaurant by applying portion control
technique.
 Management should appreciate their staff in order to create more efficiency in providing
services.
 Create checklists and budgets on every operational process (The Restaurants Times).
Year 1 Year 2
Operating cash flow ratio 1.2 1.307692

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Gross Profit Ratio 67.9604
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68.85537
From the operating ratio analysis of the new business, it can be estimated that the
operating cash flow ratio of the company will increase over two years from 1.2 to 1.3
and the gross profit ratio will increase from 67.96 in the first year to 68.85 in the second
year. Such increase in the operating ratios will be ensured as the restaurant is anticipated
to maintain less operating expenses through generating high net sales and will maintain
a high percentage of revenues to maintain efficient operations.

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Kevin Mason, S. J. (2016). Building consumer relationships in the quick service
restaurant industry. Journal of Foodservice Business Research , 368-381, 19(4).
Louise Grimmer, M. P. (2016). The performance advantage of business planning for
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McKeever, M. (2018). How to Write a Business Plan. Nolo.
McKenzie, D. (2015). Identifying and spurring high-growth entrepreneurship :
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Restcafegde. (n.d.). Retrieved from http://www.waitakere.govt.nz:
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http://archive.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-social-indicators/
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