THH1107 Food & Beverage Management: Joe's Restaurant Business Plan

This report presents a comprehensive food and beverage management plan for Joe’s Restaurant, a 90-seat fine-dining establishment focusing on Australian and international cuisines located on the outskirts of Melbourne. The report details the restaurant's size, scope, mission, vision, and competitive advantages, including its commitment to high-quality food, excellent customer service, and diverse culinary offerings. It includes a SWOT analysis, a feasibility assessment based on the success of other high-end restaurants in Melbourne, and outlines the restaurant's facility design, layout, and menu. The plan also covers marketing and advertising strategies, emphasizing the use of social media and unique promotional events to attract customers and build brand awareness. The restaurant aims to provide a unique dining experience, targeting both local and international clientele, with a focus on financial success through efficient management and technological advancements.

Running head: FOOD AND BEVERAGE MANAGEMENT 1
Food and Beverage Management
Student’s Name
Institutional Affiliation

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Food and Beverage Management
Size and scope of the company
The restaurant that will be presented in this paper is called Joe’s restaurant which will be
a 90-seat fine-dining restaurant. The restaurant will focus on Australian dishes as well other
different cuisines from across the world. The restaurant will be located on the outskirts of
Melbourne in a bid to give customers the fine-dining experience that they need far from the
hustle and bustle of the city. This location is optimal because it is on the way to some of the
cities’ most exclusive neighborhoods and its environment is also calm with very many trees that
make the place look wonderful.
The restaurant will be open every day of the week. It will provide fine-dining in a cozy
atmosphere, and it will also offer special theme nights in a bid to increase its customer base. The
business will also invite notable Australian artists to entertain the customers. To make the
restaurant look good and make the people feel calm and relaxed, there will be; different artwork
displayed on the walls, candles, soft music, fresh flowers, and warm colors.
The restaurant’s management team will be adequately trained to ensure that they provide
excellent customer service to make sure that they leave customers feeling relaxed. The restaurant
will offer a sizeable international menu from which the customers can select the foods and
beverages that they want. It will also host different events such as birthday parties and wedding
receptions. The restaurant targets to have a total sales allocation of eighty percent of the
company’s sales and twenty percent of the catering sales. (These statistics have been obtained
based on the current performance of other high-end restaurants in the country).
The most critical factor to the owners is the financial success of the business which they
anticipate will come about through the provision of excellent food, high-quality customer

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service, and the provision of different cuisines from across the world. One of the founders, Joe is
a chef who has had experience in the restaurant industry for about ten years. During this time, he
has worked in different restaurants across the world which have enabled to master various dishes
popular in nations around the globe. He will, therefore, aid in the provision of both Australian
and foreign cuisines that will be served in the restaurant.
Omari, the second partner, is not experienced in the culinary world, but he has experience
in running business operations. He has worked in different companies in various levels ranging
from the manager, chief technology officer, and chief executive officer. He recently left his job
to begin working on his life-long dream of running his own business. With his knowledge and
experience in leadership and management, he will be able to lead the firm and run operations to
make sure that the restaurant is profitable and attaining its set goals. Additionally, he will bring
in technological advancements to streamline the company’s operations and ensure that it operates
optimally.
The two partners have each contributed $50,000 to the company and are seeking funding
to meet their start-up budget of $200,000. They are willing to give up 35% equity of the business
to investors.
Mission
To be the leading provider of exciting and excellent food, combined with a warm and
intriguing atmosphere, as well as excellent customer service, which leaves customers wanting
more. The restaurant will be a choice for all people and will promote diversity. The employees
will be treated with utmost respect and fairness. All stakeholders will feel that they are a part of
Joe’s restaurant experience.
Vision

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To provide high-quality international cuisines and excellent customer service, as well as
the best dining experience for our customers.
The restaurant aims to keep its food costs to under 25% of the total revenue.
Additionally, it will market its dining experience across the country and internationally to ensure
that even foreigners and tourists who come to the country know that this is the go-to spot for the
ultimate dining experience. The restaurant also aims to expand its operations after three years
and start opening locations in different parts of the country, and ultimately commence selling
franchises to other business owners. Finally, it seeks to achieve 15% returns on investment to its
investors during the first three years of operations and expand to 25% from the third year once it
starts opening more locations.
Joe’s restaurant will have three elements that will give it a competitive edge. First, it will
provide a variety of products that are of high-quality as well as an innovative and unique fine-
dining experience. The company will offer cuisines from across the world which will attract both
the locals and the foreign clientele. Second, the restaurants will have different theme nights
which will be varied to suit the varied clientele in the restaurant. Finally, it will provide high-
quality customer services which will make clients feel warm and welcome.
The company will serve lunch and dinner every day of the work and provide brunch on
Sunday in addition to the usual lunch and dinner meals. The restaurant will also feature a new
drawing or painting artist from an up and coming artist who is not well known in the country on
a monthly basis. On such occasions, the restaurant will send out unique invitations for the night
which will attract different newspaper employees and even more people. This will aid in growing
the company’s public relations and promoting the brand.

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The company will change its menu every four months. However, even when changing the
menu, the business will retain the customers’ favorite dishes. The wine list will not be very
extensive, but it will consist of very high-quality wines from Argentina, New Zealand, France,
and California. About 30% of the total wines available will be available by the glass while the
other 70% will be provided with the bottle. Joe’s restaurant will also provide an international
beer selection that will be provided either in bottles or on tap. The restaurant will also have a
softly lit bar that will offer single malt scotches, homemade Aquavits, and some of the finest
vodkas.
SWOT Analysis
Joe’s restaurant will have three main strengths. First, it will provide high quality foods
and beverages. It will also provide excellent customer service. Finally, the restaurant will offer
different cuisines to reach a diverse market and continually consider its clientele’s feedback
when changing the menu. The restaurant’s weakness is its lack of finances at the moment which
will be overcome when it gets investors. The major opportunities will be the restaurant’s
expansion internally by opening different restaurants across the country, and the sale of
franchises over time. Finally, the company’s weakness will be the increase of competition in the
industry.
Feasibility of the Restaurant Proposal
By the use of big data and analytics, it has been established that this business venture is
viable and feasible. First, there was an analysis of the performance of other upscale restaurants in
the Melbourne area in Australia. One of the major upscale restaurants in Melbourne is Attica. On
average, the restaurant sells its food at $250 per person and its wine costs $150 for each
customer. The restaurant has a massive waiting list, and anyone who wants to dine there will

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need to wait for at least three to four months. Another major restaurant in Australia is Brae,
located in Victoria. It was named as one of the top one hundred restaurants in the world, and it is
very profitable.
Sepia is another high-end restaurant in the country, and it currently has a three-month
waiting list. From the statistics, it is clear that the high-end restaurant industry is in high demand
and low supply, and they are also very profitable. With the provision of high-quality food
products and the excellent customer service, as well as the warm and beautiful ambiance,
coupled with proper management techniques, the restaurant will become a success not only in
Melbourne but also in other parts of Australia.
Facility Design, Layout, and Menu
Joe’s restaurant will be designed in the form of a lounge and a restaurant with a patio
where people can enjoy the sun during summer periods. The restaurant will have soft music at all
times and the colors painted will be warm, and there will always be fresh flowers on each table at
all times. The company will offer an Australian menu consisting of different Australian staples
that will be very well prepared by the chef. The facility will be designed in a manner that allows
customers to enjoy the best environment based on the type of dining experience they want.
Incidentally, there will be a part for customers who wish to enjoy an intimate meal. There will be
two seats leather seats facing each other with a well-decorated table with fresh flowers, drinking
water, and glasses.
Customers will book through the restaurant’s online platforms specifying the time they
will arrive at the restaurant and by providing a reserve payment upfront. By the time the
customers arrive at the restaurant, they will find a ready table, and there will be a hostess waiting
for them as soon as they come in. In case they arrive a few minutes earlier, they will be provided

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with a seat at the bar, as they wait for their table to be prepared. The bar will be at the front of the
restaurant with a variety of drinks. As soon as customers come into the restaurant, they will find
a hostess who will immediately direct them either to their table or the bar based on the time they
arrive where they will be served immediately. The restaurant will also have various fireplaces,
and it will also be dimly lit to provide a warm and romantic feel. For family members and friends
who may be willing to chat as they have their food, they will be directed to a different area where
they will be able to have their food and discuss various issues without any influence.
Some of the foods that will be on the company’s menu include; for the entrée, the
restaurant will offer; burnt onion broth, yellowfin tuna, seared scallops, prawn and lobster
ravioli, glazed king salmon, and Borrowdale farm pork cheeks, among others. For the main
dishes, the firm will offer foods such as buckwheat cavatelli pasta, kingfish keviche, pasture
raised Milly hill lamb, twice cooked tinder creek duckling, Borrowdale farm pork neck fillet, and
Geraldton king fish among others. The supplements and sides that will be provided include
Taranaki wild caught john dory, iceberg salad with toasted walnuts, romesco dressing, and
reggiano, among others. The restaurants will also offer desserts of different forms as well as
cheese and chocolates. There will be both two course and three-course meals once the restaurant
commences operations. After four months of service, the restaurant will determine the most
preferred foods and introduce new cuisines and new dishes while still maintaining the most liked
recipes. The restaurant targets to honor Australia’s incredibly varied history when it comes to
food while always introducing new cuisines from places across the world. The restaurants will
also take into consideration the nutritional properties of indigenous ingredients in a bid to make
healthy foods while still ensuring that they are delicious and high quality.
Marketing/Advertising Strategies for Joe’s Restaurant

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Joe’s restaurant will make use of different marketing and advertising strategies. First, the
company will make use of social media to advertise its products. According to Sisira (2011),
organizations should not only use social media to inform people about their products. Instead,
they should use it to connect with their potential and existing customers by communicating with
them and asking for their feedback on various issues (Jeff, 2013). In determining the most
appropriate marketing methods, marketing segmentation is critical. Gupta et al. (2018) define
market segmentation as the process in which the potential customers are divided into groups
based on various characteristics. This is vital since it aids to show the significant market segment
that is purchasing the company’s products and marketing efforts are concentrated towards this
segment.
Joe’s restaurant will target both locals and tourists who are seeking good food and a
fascinating atmosphere. The target market segments are business people, couples, families, high-
end singles, and tourists. Since Melbourne is a business city, the principal target customers are
business people, followed closely by happy couples. This is depicted in figure 1 below.
Figure 1

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The different social media platforms that the company will employ to market its products
include; Facebook, Twitter, Instagram, LinkedIn, and Snap Chat. In Australia, the majority of
people are on Facebook (Laaru & Mwaawaaru, 2009). Additionally, people like using Instagram
to view photos from different entities (Leung, Sun, & Bai, 2017); (Olivier (2016) The restaurant
will hence use these platforms massively in collaboration with the other sites. The company’s
website will also be used to inform customers about the restaurant's products and special offers.
To ensure that the marketing activities are productive, the firm will employ integrated
marketing communication techniques. According to Shirish (2018); Triantafillidou & Siomkos
(2018); Le, 2018), integrated marketing is a marketing concept that makes use of marketing
strategies to optimally communicate a consistent marketing message in a bid to promote a
company’s brand to its stakeholders. Alves, Fernandes, & Raposo (2016); Eriksson (2012) state
that the use of integrated marketing communication will aid in improving a company’s brand and
improving customer loyalty. The restaurant will hence use the different social media platforms to
communicate the same message.
The company will also use television and billboards to advertise its products. It is crucial
to diversify marketing strategies to ensure that the company maximizes its number of potential
customers. The restaurant will also place the adverts strategically in areas where its target market
segments are likely to view them such as in high-rise neighborhoods, in different places of work,
and along the highway where there is a lot of traffic, for the billboards. The restaurant will also
promote word of mouth marketing by rewarding customers who refer other customers to the
restaurant by offering them free drinks or proving other incentives.
Processes for Food and Beverages Production

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The production of food and beverages involves different methods that must be strictly
adhered to, to ensure efficiency of the food and beverage production process. According to Kim
(2013), the food and beverage production processes are the most critical of all restaurant
functions. First, it is vital to create a food and beverage production schedule. The creation of the
daily production schedules is essential to make sure that the manager is aware of both the staff
and products needed to serve the expected customers adequately. It also aids in the maintenance
of sale histories, the forecast of the targeted and expected sales levels and the buying and storage
of the required food products and beverages.
Once the schedules have been created and inventory brought into the company, the
employee timetables are created so that the production can commence without any issues. The
products are issued to the necessary departments, and the rest of the inventory is put into storage.
The food and beverage production areas are then adequately managed to ensure that they are
clean and suitable to produce different products.
During the production process, it is vital to produce a little more food than the restaurant
anticipates selling on that particular day to avoid shortages. For some foods and beverages, the
production process begins once a sale is made to ensure that the food is hot and fresh and prevent
food wastage (Jiju, Kumar, & ManeeshRae, 2007). For instance, if a customer orders a strip
steak, this will only be produced after the order is placed. Conversely, a coconut cream pie will
be produced before any customer requests it. To optimize the production process, Joe’s
restaurant will make use of technology that will send the order directly to the kitchen for
production or service to commence within a particular standard timeline. The production process
can change based on the expected guests and the probability of running out of a specific product.
The head chef oversees the production process and guides other employees on factors such as

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mixing and dosing as well as the pressure and the temperature required for the different products.
The employees are also supposed to continually clean the working surfaces as the food and
beverage production processes continue.
To optimize operations, there are different factors that Joe’s restaurant will consider
during the production process. It will look at the sustainability costs such as water, waste, and
energy costs to ensure that they do not become very high. It will also digitize the production
process as much as possible to increase efficiency (MCB University, 2012). Additionally, the
team will have a continuous improvement mentality to the operations. Finally, it will make use
of historical and real-time data to minimize downtimes by employees as well as machinery. This
will be achieved by the use of data and analytics.
Importance of Training, Motivation, and Employee Retention to Organizational Success
For any organization to succeed in its operations, it needs to retain a motivated and
confident staff. According to Saja et al. (2014); Prajogo & Sohal (2003); Pepper & Spedding
(2010), organizations that have high employee turnover incur high costs and adversely affect the
employees’ morale. It is therefore crucial for firms to implement a program for employee
retention to ensure that the company’s key workers remain in the firm. This will improve the
company’s performance and effectiveness.
Training is also crucial to any company since it enables its employees to gain the skills
necessary to perform their tasks effectively. In today’s rapidly changing world, it is vital for
organizations to continually train their employees on new technologies in a bid to remain
competitive in their operations (Bamford & Greatbanks, 2005). Training and motivation both
correlate to employee retention because employees feel that they are supported in their activities
by their companies. Motivation is also vital because it enables employees to gain the morale to

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perform their roles and responsibilities (Ghobadian, Speller, & Jones, 2014). Motivation can be
either be in the form of monetary or non-monetary rewards for employees who reach specific
targets that have been set by the firm. Therefore, training, motivation, and employee retention are
critical to any company, and they improve the company’s performance and the employees’ levels
of satisfaction.
A Systematic Approach to Managing Quality and Its Importance
Organizations, especially in the hospitality industry need to follow certain quality
management principles in a bid to ensure that the food and beverages offered are of high quality.
A major principle of quality management is the systems approach (Seth, Deshmukh, & Vrat,
2005). This principle aims to improve organizational efficiency by identifying, comprehending,
and managing the processes that are interrelated (Elshaer & Augustyn, 2016). The systems
management principle is vital especially in processes that are continually developing and
massively benefits companies.
The systems approach provides benefits to firms both in the short and long run. It gives
confidence to the different stakeholders on matters such as efficiency, success, and reliability
(Ferdowsian, 2016). Additionally, it enables companies to concentrate its efforts on the critical
operations (Heino & Trang, 2017). Finally, it allows the firms to incorporate processes that will
increase the company’s return on investment (Czuchry, Hyder, Yasin, & Mixon, 2017).
Therefore, to optimize the systems approach, firms should outline the different processes
that enable the firm to achieve its goals. Next, it should create a clear plan on how the goals will
be achieved, comprehend the relationships that exist between the various system processes as
well as identify how they interrelate with each other to complete the system. The system should
continuously be expanded and reviewed in a bid to identify any resource constraints before