Restaurant Business Plan: Enterprise and New Business in London

This document presents a business plan for 'Healthy Friend,' a restaurant in London focused on providing healthy and delicious food, addressing the increasing health consciousness among UK residents. The plan details market analysis, including target customers and competitors in the Oxford Street area. It outlines the restaurant's unique selling points (USP), such as diverse cuisine options, diet counseling, and customer incentives. A financial plan, including projected profit and loss statements and cash flow statements, is included. The plan also covers funding sources, resource requirements (tangible and intangible), key performance indicators (KPIs), and the overall vision of establishing a chain of healthy food outlets across London, with a commitment to offering nutritious alternatives to traditional junk food.

ENTERPRISE AND NEW BUSINESS

TABLE OF CONTENTS
Introduction..........................................................................................................................................3
Business growth plan.......................................................................................................................3
Future business................................................................................................................................3
Customers........................................................................................................................................3
Competitors......................................................................................................................................4
Skill analysis....................................................................................................................................4
Financial plan...................................................................................................................................4
Funding of the business ..................................................................................................................6
Resource requirement......................................................................................................................6
KPI and CSF....................................................................................................................................7
Vision of the business......................................................................................................................7
Conclusion............................................................................................................................................8
REFERENCES.....................................................................................................................................9
Index of Tables
Table 1: Projected Profit and loss account............................................................................................5
Table 2: Cash flow statement................................................................................................................5

INTRODUCTION
It is a business plan considering all the key considerations which is required to develop a
new restaurant. It brings with a new and innovative idea of building a restaurant in the engaged
streets of London to attract wide number of customers.
Business growth plan
Healthy Friend is a restaurant establish in one of the engaged streets of London that is
Oxford street which is always covered with wide number of peoples (Haugh 2012). The main aim
of building this kind of restaurant is to aware people about their health by serving tasty and
delicious food.
The unique idea of opening this restaurant arises with health conscious attitude adopted by
some people of UK. Market analysis and research in London will bring out the idea of this business
as everybody provide healthy food but doesn't taste good and delicious. This gives more emphasizes
to the functional structure in which the quality of food is maintained.
Future business
Healthy food is the basic service provided by this restaurant where the quality of the food is
not compromised when the word comes to healthy and nutritious (Duberley and Carrigan 2012). It
is that service in which the menu is designed such that every day a customer get updated dishes in
the menu. A customer gets all kinds and different cuisine's food like Chinese, Indian, Italian and
many more items. Innovation involved in this kind of restaurant is that diet counselling is provided
to all the customers regarding health and aware them about the inclusion of this food in their daily
routine diet to stay fit and healthy. Trademark and copyright can be taken of the name of the
restaurant and services provided by the business.
Customers
It is that business in which business to customer techniques is followed where the focus of
the owner is to provide all sort of services to gain higher level of customer satisfaction. Consumers
are the end users who consume all the food prepared by the business. The products and services
deliver by an enterprise should be marketed among the local citizens of the London and attract them
to purchase the products or services of this restaurant and get all the benefits and perks provided by
an enterprise (Carraher and Paridon 2015). The focus of this business on all age groups who are diet
conscious.
The USP of this restaurant consists of Low prices, different food dishes on every week day,
all types of cuisines, scratch card given on purchase of every dish, home delivery, diet counselling.

Outside waiting areas to be designed perfectly to bind all the customers in the hands of the business.
Gifts to each and every customers who visited once in the restaurant. Special area for children to be
designed so that their parents can enjoy the food.
Competitors
Oxford street is that place which is renowned shopping destination in London which is also
known as one of the engaged street in London which is always covered tourists (Bridge and O'Neill
2012). There are different restaurants and hotels who provide good food and can poses threat to the
business. The motto of an enterprise is highly motivated all thy employees of this restaurant where
they provide delicious and tasty food as all competitors are providing but without compromising
with the health. Core competencies of this restaurant is providing healthy food.
Around 50% of the overall market share is captured by the existing competitors in UK
which collapses the entry of the organisation in this market (Teece 2014). This restaurant's table can
be booked by using mobile application or website of the company as on registration every customer
get vouchers which can be redeem in the restaurant. These kinds of services will remain the status
of the corporation in the list of top business players. Providing offers, discounts, gifts vouchers are
the common which other competitor also provides to influence customers towards the business.
Unique services provided by this venture includes Free of cost eating in a restaurant if the customer
doesn't like the food which reflects the confidence of the business in their taste and quality of the
food.
Skill analysis
Skills and capabilities are that weapon which takes business to reach the peak after
eradicating all the trade barriers from their path. Innovative and creative idea for the generation of
new business, core competencies used in crafting strategies against their competitors to reduces the
cost and maximizes the profit. Existing skills of an enterprise includes good communication skills,
business analytic tools used, clear understanding of predicting future, decision making skills,
technical skills (Lambert and Davidson 2013). These basic skills of an establishment help an initial
enterprise to grow more in near future with high level of accuracy and efficiency.
Some skills required to operate the business successfully involves maturity to face complex
challenges, good ability to make strong business connection which supports throughout the life of
the business. Ability to collect financial resources to source the funding requirements of the
organisation. The skills gaps can be improved by taking proper training and update itself with the
use of efficient tools and latest technologies. These skills can also be nourished with the passage of
time as it will teach a good lesson of the business with a less period.

Financial plan
Projected Profit and loss account
Table 1: Projected Profit and loss account
Particulars Year 1 Year 2
Sales 945000 1000000
Direct cost of sales 350000 360000
Other 50000 60000
Total cost of sales 400000 420000
Gross Profit 545000 580000
GP% 57.67 58
Expenses
Payroll 230000 250000
Marketing 60000 80000
Depreciation 5000 5000
Leased Equipment 1500 1500
Accounting fees 5000 5500
Legal fees 2500 2500
Licensing 15000 15000
Raw material 50000 50000
Stationary 150 150
Utilities 5600 6000
Rent of premises 15000 15000
Payroll taxes 1500 1500
Total operating Expenses 391250 432150
PBIT 153750 147850
Interest 14000 20000

Taxes 85000 90000
Net profit 54750 37850
NP% 5.8 3.785
Projected cash flow statement
Table 2: Cash flow statement
Particulars Year 1 Year 2
Cash from operations
Cash sales 945000 1000000
Expenses
Expenditure from
operations
Cash expenses 230000 350000
Bill payments 200000 400000
Total expenses 430000 750000
Cash balance 515000 250000
Above mentioned projected profit and loss account and cash flow statements will reflect the
correct financial position of an enterprise (Haugh 2012). All the above expenses and expected sales
of this business is a targeted returns designed by an organisation which will prove successful. The
current conditions of the business is forms a basis on which future business decisions can be made.
Funding of the business
After identifying the financial requirement of an enterprise the next step is to get the funds
from outside the business in order to achieve all its desired goals and the objectives. As an
entrepreneur, there are ample of sources of finance available with an enterprise which are given as
follows:
Angle Investors- It is that sources of finance in which the retired business persons will lend money
to all the start ups who intends to open a new business with an innovative business ideas. The
borrower will get business consultation and take advantage of strong business connections and
experiences of their lender in order to move ahead in the business (Freel 2013). It is that capital

which demands fewer returns from the borrower as it lends money only to this investor who have
highly risky business and bundled with higher technology.
Venture capital- It is that sources of finance which is made for entrepreneur as it consists of higher
business risks and less business valuation. It is taken by those persons who know about the business
uncertainty as it can be proved successful or it can be a big failure. This doesn't provide any kind of
assurance to the business.
Resource requirement
Every business involves two standard forms of resources that is both tangible and intangible
resources (Duberley and Carrigan 2012). A restaurant is collective effort of all the persons and the
resources utilised in the overall business in order to cater all the needs and the expectation of the
customers. Tangible resources which can be utilised in the restaurant in a 1-2 year are given below:
 Kitchen Tools
 Equipment and used in kitchen used in cooking
 Inventories such as furniture, POS machine
 Interior and exterior decoration of the restaurant
 Kitchen supplies such as vegetables, meats used in the food, spices
 Menu designing
Intangible resources are those services used by the restaurant to deliver the best quality services to
all its customers and get high amount of profit by increasing their sales and revenue are:
 Personnel used in restaurant like waiters who serve the delicious food, separate person who
take orders from the customers
 Chefs, executives and supervisors who prepare delicious food according to the tastes and
preferences of the customer in order to get high level of customer satisfaction.
 Manager is a person who will managed the overall restaurant by complying with all the
business policies and attract customers with their polite behaviour. Attractive personality of
manager will attract more customers towards the business enterprise. It will also responsible
for conducting interviews for selecting right candidate which will enhances the beauty of the
place.
KPI and CSF
It is a sole trader business in which an entrepreneur is responsible for carrying out all other
business activities to maximize their business earnings (Cavusgil and Knight 2015). It is beneficial
for sole proprietorship in which there is no interference of other persons in taking any business

decisions. In today's technological environment where technology plays a dominant role in
improving the value of the business. Management information systems are used to automate the
overall business functioning to reduce the chances of error and achieve specialisation. Key
performance indicator is that which help an enterprise in order to find out its actual condition in this
competitive market where competition play a dominant role. KPI for restaurant industry includes
the level of profitability, food costs, kitchen labour, seating, basket items (Carraher and Paridon
2015). These items will help an enterprise to increases the overall market share by measuring
different kinds of performance indicators.
Automated software like Business process management is required for regulating some
business functions in a well defined manner which are given below:
 Mobile van system has been used to deliver all the food orders of the customers and also to
purchase the food raw materials from the market.
 Digital tablet to be placed on table of every customer which helps in taking the orders of the
customers which is completely hassled free.
 Mobile application developed which helps to bring all the feedbacks and suggestions of the
customers regarding food menu, interior decoration and services.
Vision of the business
Healthy friend restaurant is an appeal to all the customers to think more about their health
rather than spoiling their health by eating junk foods (Bryman and Bell 2015). This organisation
will provide all kind of junk foods such as pizza, burgers but convert all the ingredients in a healthy
and nutritious manner. The base of Pizza will be changed from refined flour to RAGI flour to give a
touch of healthy flavour.
The vision of current restaurant is to build wide number of chains outlet in London spread the
healthiness in the city. It can be done by establishing Kiosk at each and every street of London to
deliver their best quality services. Green Tea and fresh salad and breakfast is for joggers at directly
on the park to facilitates with the delicious food and motivates them to stay healthy and fit.
The services of the restaurant will not only limit to customers who comes in the restaurant
but the food will come to their place (Bridge and O'Neill 2012). Food will deliver to all the gyms to
enriched the muscles of persons doing work outs in gyms. It will be served to all the social clubs
and party where all luxurious are paying a lot of money on expensive and healthy products in just
affordable rates.
CONCLUSION
From the above study, it can be summarised that above business plan will prove successful

as it will bring ample of opportunities for the existing enterprise. The strong competitors can tie up
with this business to become potential threats to all other corporations who are operating in this
industry for a long time period.
REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Duberley, J. and Carrigan, M., 2012. The career identities of ‘mumpreneurs’: Women’s experiences
of combining enterprise and motherhood.International Small Business Journal,
p.0266242611435182.
Freel, M. S., 2013. Enterprise and small business: Principles, practice and policy. International
Journal of Entrepreneurial Behavior & Research.
Haugh, H., 2012. The importance of theory in social enterprise research.Social Enterprise Journal.
8(1), pp.7-15.
Lambert, S. C. and Davidson, R. A., 2013. Applications of the business model in studies of
enterprise success, innovation and classification: An analysis of empirical research from
1996 to 2010. European Management Journal. 31(6). pp.668-681.
Mostaghel, R., Oghazi, P., Beheshti, H.M. and Hultman, M., 2015. Strategic use of enterprise
systems among service firms: Antecedents and consequences. Journal of Business Research.

68(7). pp.1544-1549.
Obeng, B. A. and Blundel, R. K., 2015. Evaluating enterprise policy interventions in Africa: A
critical review of Ghanaian small business support services. Journal of Small Business
Management. 53(2). pp.416-435.
Teece, D.J., 2014. A dynamic capabilities-based entrepreneurial theory of the multinational
enterprise. Journal of International Business Studies. 45(1). pp.8-37.
Online
Oxford street, 2016 [Online]. Available through: <http://www.pattyhodapp.com/2010/03/oxford-
street-shopping/> [Accessed on 5th September 2016].