Business Plan for Food Bites Cafe: Entrepreneurship (BMS508)

This report provides a comprehensive business plan for Food Bites Cafe, a fast-food establishment in London. It details the scope and nature of the enterprise, including its unique selling point, target customers, and location strategy. The plan critically analyzes core business components such as management, employees, suppliers, delivery team, and legal compliance, highlighting their interrelationships. It further evaluates market viability using Porter's Five Forces, identifying competitive rivalry, bargaining power of customers and suppliers, and threats of substitutes. Potential threats to the business, such as market saturation and changing consumer preferences, are also discussed. The report concludes by emphasizing the importance of continuous innovation and strategic marketing to ensure the long-term success of Food Bites Cafe. Desklib offers similar solved assignments for students.

Project

EXECUTIVE SUMMARY
Starting a business organisation is not an easy task because it involve proper planning to start.
The owner have to do the proper arrangements of resources, employees and many other things.
The owner also have to make the decision related to the legal structure. There are several
essential business components which plays an important role in performing the business
operations and increasing in the profitability and productivity of organisation. Porter’s five
forces help the organisation in doing the industry analysis, so that the organisation can perform
its best in the industry and earn higher profits as well.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Scope and Nature of Enterprise..............................................................................................1
What business is it?................................................................................................................1
Where will it be established (location)?.................................................................................2
Who will be customers?.........................................................................................................2
What will be the unique selling point?...................................................................................2
Strategy, Legal Status and Operation?...................................................................................2
Explain the Business Core Components and how they inter-relate.......................................3
Business Planning and Viability.............................................................................................4
Potential Threats to the Business............................................................................................6
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................9

INTRODUCTION
Business can be defined as a firm engaged in any commercial or non commercial activity
to earn profits. Business plan is a document stating objectives and goals of a firm and how will it
achieve it. It includes all marketing ,financial and operational points of business. Purpose of
business plans is to get financing from investors,stating firms strategy. It helps firms take
decisions, to avoid risks, to prove viability and to communicate objectives. The firm chosen for
this report is FOOD BITES CAFÉ. It is located in London,U.K. It was opened in 2015 and it
deals in fast food and beverages and specialises in burgers and smoothies (Assefnia, 2018). It is
serving customers with quality products and keeps innovating in food items and is very popular
in area. This report covers scope and nature of enterprises, business plan of a café and its USP
and its strategy. Business core components and their interrelation,planning and viability are also
going to be covered. Using Porters five forces analysis of external environment of Food bites
café and potential threats to business will also be covered.
TASK
Scope and Nature of Enterprise
The café which is taken into consideration is the food and bites which is related to die serving of
the fast-food items. As the nature of the enterprise which is been started is that it is related to the
food industry. It is very important for the organisation to start as a small business in order to
serve customers (Pok and Leung, 2020). The coffee shops are a part of a specially eatery
industry which includes outlets specialising in products such as burgers, donuts, smoothies etc.
The market size is small for such type of businesses.it is very important for the organisation to
keep the various aspect in to consideration in order to serve the best quality of services to the
customers.
What business is it?
The plan which is taken into consideration is of launching a small business in the London United
Kingdom and increasing its market share area in order to gain the profits in revenue. This is a
type of a small business in which the objective is to serve the best quality of products in order to
gain the customer attention (Azmi and et.al., 2021). This is the this is a food bites Café which is
located in London and it’s serving the food items. The café is related to the food industry which
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is defined as its state and engaged in the commercial and non-commercial activities in order to
earn profits. This business will help the person to gain brand value and to increase market share.
Where will it be established (location)?
The café will be stab list in London, United Kingdom. It is very important for the
organisation to keep the prime location into consideration as the location plays an important role
for the success in growth of the business enterprise. It is very important to establish a location
where there is a large number of audiences can be targeted. The location must be in such a area
where the people do not find difficulty in order to reach it. As location is in the centre of a city
with the people can easily come within 5 to 10 minutes from the located places and it is beside
the society and a college where the youth can be targeted easily.
Who will be customers?
The customers for the café will be the all-age group people. The company and focus on the
youngsters were very passionate about visiting such places in order to enjoy with their friends
family et cetera. The café food bites in target all type of customers but mainly they can focus on
the people of age group between 20 to 30 (Che Rusli, 2020). This is because the youth is usually
looking for such places where the ambience is good and they are able to have fast food in order
to enjoy with different and spin the quality of time.
What will be the unique selling point?
The unique selling point of the café will be that the burgers and smoothies in which it is
specialised. The uniqueness of the café is that the company is selling the burgers with the organic
material inside it and the smoothies in which they will have the taste of the different flavours
(Muhd Khair and et. al., 2019). This is a specialisation for the café.
Strategy, Legal Status and Operation?
The organisation will be a drop in the different strategies in order to attract customers.
Hello it is very important for the organisation to use the digital strategies in order to gain the
attention of the customer. The legal status of the organisation will be the USP of the company
and the operations will be conducted in a quality of free. It is very important for the organisation
to use the operational management in effective way in order to have a smooth functioning. The
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café will focus on the various different strategies in which the food can be served to the
customers.
Explain the Business Core Components and how they inter-relate.
Below mentioned are the several core components of the Food Bites café:
 Management: The management is the core component and it is interrelated with the
business planning as the management is defined as the way in which the operations of the
organisation is been managed in order to achieve the success in growth for the business
organisation. In the food and beverages industry it is very important for the organisation
to manage all the activities.
Employees: The employs are the core component for a business organisation practises the
different activities in order to serve the customers and to achieve the goals of the business
organisation. It is very important for the management to motivate us employs in order to achieve
success (DA, 2020). The employs are the person who deals in day-to-day activities in the food
preparation for the café.
 Delivery Team: The delivery team of Food Bites café is performing the functions of
delivering the food and beverage items at the door step of customers. It is found as the
essential component as it act the major element with connect the café with the customers
(Pramudityo, 2021).
 Suppliers: It is defined as the individual or parties which provide the raw material to
prepare the food for the purpose of serving to the customers. If the management of
organisation will not get the support of suppliers in performing the business operations, it
will totally disturb the entire business functions.
 Legal Compliance: In order to evaluating the profits, the business organisation is
required to prepare the accounts on regular basis. This department of Food Bites café will
be responsible for ensuring that all the laws and regulations are being followed by the
management of café (Moro Visconti, 2019). This element of café is essential because it
will help the management in performing its business operations by fulfilling all the laws
and regulations by paying taxes, Corporate Social Responsibilities and many more.
Along with this, preparing financial accounts and books is also done by the accountants.
Interrelationship
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 Employees and Suppliers: Suppliers of Food Bites Café perform the function of
providing raw material to the organisation, so that they can prepare delicious food
and beverage items and their employees perform several operations to prepare that
raw material into finished eatable and tasty food items. If the suppliers will not be
able to deliver the raw materials, the employees will not able to perform their
operations. Hence, they both have an effective interrelationship.
 Delivery team and management: Management is the process of managing the
entire functioning and operations of business organisation and delivery team is just
a part of management. In the context of Food Bites cafe, management is
responsible for all the operations performing in cafe which include preparation of
food and beverage items, maintaining financial books and journals, delivering the
food items to the customers, inventory management and many more (Gomes and
Silva, 2020). Delivery team perform the function of delivering food and beverage
items to the customers which is a particular function of management.
Interrelationship among delivery team and management result in serving in the best
possible manner to the customers.
 Legal Compliance and management: Legal compliance perform the operations of
managing all the legal formalities of performing operations of Food Bites Cafe and
management perform the functions according to the laws and regulations
developed by the government of a specific country. The interrelationship among
both of these important components result in the smooth and better performance of
all the business operations performed in the Food Bites Cafe.
Business Planning and Viability
Market Research
Porters five model is a framework to analyse the potential threats of competition in an industry
using five forces. It tells us about the sources of competition in industry.
COMPETITIVE RIVALRY- Food Bites is facing strong competition due to the saturation in
the fast food business. There are many global chains operating in London and various local
restaurants are also opened. In this business marketing is everything and big chains aggressively
market their products among customers to attract them. This increases competitive rivalry
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amongst the restaurants. Cafés offering products at low cost switch the consumer towards them.
Food Bites café has to create some uniqueness in their café to attract customers by providing
them value for their money and also market the products with more efforts to build a positive
image in compare to competitors (Riaz, 2020).
BARGAINNG POWER OF CUSTOMERS-Customers can easily switch to other chains and
impose their demands on Food bites café. As the market is already saturated consumers have
many choices to choose from. This makes bargaining power of customers strong affecting Food
bites cafés external environment. Substitutes of restaurants add to the power of consumers.
Local kiosks sand outlets are some of the substitutes. Food bites café has to develop strategies to
increase loyal customer base by various means.
BARGAINING POWER OF SUPPLIERS- Restaurants need raw materials which is supplied
by various suppliers making them weak force which can impact the environment of Food bites
café. There Are large numbers of suppliers which weakens the effect of single supplier. Food
bites café suppliers are also not vertically integrated means they have no control over the
network of distribution of products, so this weaken the power of suppliers (Jerez, 2021). As
there is no shortage of meat and flour in London which weakens the suppliers barging power so
Food bites café has minimal issues handling this.
THREATS OF SUBSTITUES- There are many substitutes to Food bites café like local
bakeries and outlets. Some consumers even cook food at home making threats of substitutes a
strong force in fast food industry. Low switch costs make customers switch easily to other
products. Customer satisfaction and quality also makes accusatory to switch as many local
vendors are offering good food at cheap price. Food bites café should improve product quality
and offer discounts to loyal customer to attract them to café. They should also make ambience of
their café good so it encourages customers to eat in restaurants.
THREATS OF NEW ENTRY- New entries in the market can impact the café performance. As
earlier mentioned low switch costs make customers easily move to other cafés, so it is a strong
factor affecting business of Food bites café. Variable capital cost of opening a café also
encourages new entrants. Small cafés requires low capital and is a threat to Food bites café. It is
not easy to build a brand in food industry so it considerable but not a big issue for Food bites
café.
Viability of business
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It basically mean whether the business will be successful or not. Its total revenue must exceed
the cost and if business is not viable than it becomes difficult for owner to recover the costs.
 Size of the market- Food industry is one of the biggest in world. Food bites café has
big market to cover as there are large number of customers.
 Superiority of services- Food bites café has specialization in burgers and smoothies
which gives them competitive edge in compare to their competitors so the chances of
their success are much higher.
 Financial opportunity- Food industry has great margin and this factor indicates where
business will able to make profits. Food bites café has created products which requires
low cost of production and their sales is quite impressive (Kolhoff, 2020).
 Strength of the team- All founders of FOOD BITES CAFÉ are educated and highly
experienced so they have the required skills to succeed in the business.
 Location of the business- Café is located at the heart of London,so location is perfect to
run a café and many offices are situated in the cafés location.
Potential Threats to the Business
Food Bites café have their own threats while performing business operations related to
serving the food and beverage items to the customers of London, United Kingdom. Some of
them threats are given below in the context of new start up: Competition: It refers to the threat which has not being occurred but it involve the
potential to occur. In simple words, it is a risk of competition for the business
organisation. The competition available in the food industry work as threat for Food
Bites Café. The types of competitive threat include new competition, new food items,
new business model of café, substitutes, pricing of food and beverage items and many
more. If the competitors of Food Bites decrease the prices of food and beverage items for
attracting the customers, it work as loss of Food Bites as it lose several customers. Culture of central London: The people living in the London are still following the
culture of ancient Britain. They are still living the life like the culture of ancient people
of Britain. The Food Bite Café is specially focusing on the needs and requirements of
young generation people (Lin, 2018). The culture of central London is consider as the
threat for Food Bites Café because of old culture followed ad adopted by the people
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living there. It can reduce the demand of food and beverage items served by the Food
Bites Café. Supplier's behaviour: The entire business of Food Bites have been run on the basis of
suppliers of café as they make available the raw product of food items to prepare the
food for serving them to the customers (Mat Ariffin and et. al., 2019). If the prices of
raw food material increases, it will automatically increase the costing of products along
with decreasing the demand among customers. The food Bites Café is completely relies
on the support of suppliers. It work as threat as the raise in prices on regular basis is in
the hand of suppliers. Government legislation: It is also found as threat for the Food Bites Café because any
change in the rules and regulations developed by the Government of United Kingdom
result in introducing the modifications which may effect the profitability and
productivity of café negatively. Due to pandemic, government issues the order to keep
close all the cafés and stores. The adoption of these regulations result in heavy losses
(MARANI, 2021). If the change in taxes take place it also result in the increase or
decrease of profits of Food Bites Café.
 Cash flow: In the Food Bites café, it is not an easy task to maintain the same cash flow
every day because of many reasons which include strikes, holidays, pandemic, protest
and many more. If the customers constantly visit the café, it will enhance the
profitability and productivity of café. Cash flow risk define the potential danger of
falling short which is being created through the activities of cash flow management.
CONCLUSION
From the above report it is concluded that business is defined as the firm which is engaged
in the commercial or not commercial activity in order to earn profits and revenue. In this report a
plan has been taken into consideration of Raj in the café which is food bitescafé. The nature of
the business is the food industry where the business is related to serving the purpose in
smoothies. The business is located in the London, United Kingdom. The main customers of the
organisation will be the youngsters. The USP of the organisation is smoothies with the organic
taste in it is very potent for the organisation to adopt the different strategies in order to gain the
attention of the customers. The delivery team of the food but cafés performing the function of the
delivering the food in villages items which is due today step it is very important with
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organisation to do market research in which they have conducted the porters five forces model.
Before planning anything, the external factors play some major role in the business organisation
where the café need to analyse the external factors which can be tracked and need to be adopted
the different strategies in order to reduce them. The government legislation mean take for the
food bites Café in which they need to change the rules and regulations.
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References:
Books and Journals
Assefnia, K., 2018. Specialty Smoothie Bar Business Plan (Doctoral dissertation, CALIFORNIA
STATE UNIVERSITY, NORTHRIDGE).
Azmi, and et.al., 2021. Business Plan: SweetLicious Bakery.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Che Rusli, N.H., 2020. Fundamentals of Entrepreneurship (ENT300) Business Plan: Artisticake.
DA, L.S., 2020. BUSINESS PLAN WEIGHT LOSS CAMP FATFIT. ID (Doctoral dissertation,
Universitas Gadjah Mada).
Gomes, H.D.A. and Silva, B., 2020. Business plan for a portable mini-fridge: Frigo Everywhere
(Doctoral dissertation).
Jerez, J.T., 2021. Innovative business plan: dez melhores opiniões online review platform
(Doctoral dissertation).
Kolhoff, L., 2020. Businessplan. In Existenzgründung in der Sozialwirtschaft (pp. 139-144).
Springer VS, Wiesbaden.
Lin, O.C.C., 2018. Business Model And Business Plan (pp. 25-32). World Scientific Publishing
Co. Pte. Ltd..
MARANI, T., 2021. Il Business Plan come strumento per lo sviluppo delle start-up: il caso
Satispay.
Mat Ariffin, and et.al., 2019. Business Plan: Yours Maid Laundry.
Moro Visconti, R., 2019. How to prepare a business plan with excel. Available at SSRN
2039748.
Muhd Khair, and et.al., 2019. ENT 530 Business Plan: Donald Electronic Enterprise.
Pok, Y.K. and Leung, H.Y., 2020. Master Final Project-Business Plan of Style_We_Knit
(Master's thesis).
Pramudityo, U.R.,2021, Business Plan Pengembangan Usaha Aksesoris dan Onderdil Sepeda
Motor Honda CB 100 (Doctoral dissertation, Bakrie University).
Riaz, M.N., 2020. Feasibility study and business plan for a new textile brand (online retail store)
in Pakistan and Australia.
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