Spice Habit: Comprehensive Business Plan for a London Restaurant

The business plan outlines the establishment of 'Spice Habit,' an Indian vegetarian restaurant in London, focusing on providing healthy and organic Indian cuisine through both a physical restaurant and online delivery services. The business model is B2C, utilizing penetration pricing initially, followed by premium pricing, with free delivery within a four-mile radius and discounts for larger orders. The restaurant emphasizes organic ingredients and offers specialized menus for various dietary needs. Key suppliers will be organic grocery markets and wholesalers in the London area. The plan leverages personal expertise in areas like people skills, financial knowledge, and culinary expertise to ensure success, focusing on crucial aspects such as food quality, cost management, timely delivery, and customer experience. The plan includes a SWOT analysis, market competition, and marketing mix (4 P's) to gain a competitive advantage and cater to the target market of upper-middle-class customers in West London.

1
SUMMARY
The proposed idea for the business is an Indian vegetarian restaurant which will be situated in London and will
be selling a wide variety of famous Indian cuisine to customers in both bricks and mortar restaurant and
through online home delivery. This new restaurant will be called: Spice habit.
Along with this the business model of the restaurant will be based on B2C or business to consumer
and the pricing will be penetration pricing for the first 6 months and then premium pricing (Sharma and
Sharma, 2019). The restaurant will be providing a free delivery service within 4 miles of the radius of its
location and will also be providing a 15% discount for all the orders above £40. The dishes will be completely
cooked using organic supplies and a separate menu for various categories of customers like vegan, allergic,
diabetic and gluten friendly dishes will be available. The major suppliers and vendors for the restaurant will be
organic grocery markets band wholesalers based in London’s Earls court area such as Tesco, Sainsbury’s,
Morrisons, Asda, Asian food suppliers such as TRS products and Rajah.
The personal expertise is in context of people skills, financial knowledge, leadership skills,
communication, networking, market knowledge, warehouse and inventory management, conflict resolution,
problem-solving, hotel management, expertise in Indian cooking and a deep understanding of the customer
mindsets. This will help in establishment of a successful restaurant business as the key areas of running a
successful business are partnerships, quality and taste of the food, cost management and relations with
suppliers, timely delivery of products and services, location, menu planning, marketing, involvement of owner
and guest experience (Konovalova and Demenev, 2020).

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BUSINESS PLAN SPICE HABIT
SWOT
Strengths: The major strength of Spice Habit is
that this business has merged healthy and organic
choices with the vegetarian Indian cuisine, which
differentiates it from the other Indian restaurants
in London, UK. The location of the restaurant is
another advantage as it is situated in the area
attached to commercial market which is a prime
location in the west London area. (Gürel and Tat,
2017).
Weaknesses: As it is a start-up and less known in
the market it is one of the main weakness of
Spice Habit because due to the limited budget
provision of adequate and proper training to
employees will be difficult. Due to low brand
awareness and premium pricing it will be
difficult for restaurant to compete with their
competitors. (Phadermrod, Crowder and Wills,
2019).
Opportunities: In order to increase brad
awareness and attract more number of customers,
restaurant can use marketing strategies like social
media marketing on Facebook, Instagram and
twitter and also use social media influencers like
food bloggers or celebrity chefs for promoting
and sponsoring the restaurant. The online
delivery system that the company is planning to
implement can be further expanded across the
city areas and after the success of the business,
the focus can be shifted to market expansion and
product development (Lubis, Absah and Lubis,
2019).
Threats: There is high competition in the
location of the restaurant from many pre-
established Indian restaurant brands with high
customer base. If they offer cheaper prices, there
is a major threat to the company. There is also
the threat of new entrants will more unique ideas
that attract millennials. The threat of bargaining
power of consumers due to high availability of
alternatives is also present. Brexit has posed
another threat in the supply-chain disruption and
non-adherence to legal and environmental laws
which may result in hefty penalties (Sarsby,
2016).
Market Competition
The business has to identify strategies in order to
reduce the competition as it can lead to decrease
in the market share, sales and revenue. It is
important that the business identifies its present
competitors in the market, and identify the value
proposition to differentiate the product. It also
helps in creation of new marketing strategies and
gaining competitive advantage. Competitive
advantage refers to production of better goods
and service in cheaper rates than the rivals which
helps in generation of higher sales and more
profit margins. The major competitors are
Gymkhana, Chettinad restaurant, Benares,
Punjab restaurant, tamarind, Shahi pakwaan,
Little India, Masala Indian restaurant, Anjanaas
etc. which offer high quality products in
moderate to premium price ranges. The overall
industrial rivalry is high, so there is need of
uniqueness, better marketing strategies and
customer service.
Marketing mix (4 P’s)
Product: The products in offered in the Spice
habit will be ethnic Indian dishes from various
regions like North Indian and South Indian
menu which will contain Indian breads like
Naan, tandoori roti, Main course like
vegetables and curries, snacks such as samosas,
desserts like jalebis, beverages, special dishes,
side orders etc.
Price: The penetration pricing policy will be
used for the first 6 months and various offers
and 15% discount for all the orders above £40.
Post this, premium pricing will be adopted and
high-end consumers will be targeted who prefer
organic products-based cuisines.
Promotion: Digital marketing campaign will be
used for promotion and intense offers and
discounts will be given through SEM and social
media marketing campaigns.
Place: The restaurant will be situated in the
upmarket King Cross and Chelsea of the East
London.
Target Market
Restaurant will be targeting upper middle- class
customers or customers who customers who
have high disposable income and prefer healthy
and organic Indian food. Their main customers
will be of West London as the restaurant is
situated in the upmarket Kensington and
Chelsea of the Earls Court area in the West
London, England, United Kingdom. This is an
inner-city district which is surrounded by the
Earl’s Court road and surrounded by busy
commercial streets.
Business Idea
The proposed idea for the business is an Indian
vegetarian restaurant which will be situated in London
and will be selling a wide variety of famous Indian
cuisine to customers in both bricks and mortar restaurant
and through online home delivery. This new restaurant
will be called: Spice habit.
Objective
Main objective of this restaurant is to provide healthy and
organic choices with the vegetarian Indian cuisine
Vision
To become one of the top Indian restaurant that serves
healthy and organic food.
Background
Spice habit will be will be penetration pricing for the first
6 months and then premium pricing (Sharma and
Sharma, 2019). The restaurant will be providing a free
delivery service within 4 miles of the radius of its
location and will also be providing a 15% discount for all
the orders above £40. The dishes will be completely
cooked using organic supplies and a separate menu for
various categories of customers like vegan, allergic,
diabetic and gluten friendly dishes will be available. The
major suppliers and vendors for the restaurant will be
organic grocery markets band wholesalers based in
London’s Earls court area such as Tesco, Sainsbury’s,
Morrisons, Asda, Asian food suppliers such as TRS
products and Rajah.
REFERENCES
 Lubis, T.W.H., Absah, Y. and Lubis,
A.N., 2019. Analysis of Restaurant
Business Strategy in Developing Business
using SWOT Analysis.
 Phadermrod, B., Crowder, R.M. and
Wills, G.B., 2019. Importance-
performance analysis based SWOT
analysis. International Journal of
Information Management, 44, pp.194-
203.
 Sarsby, A., 2016. SWOT analysis. Lulu.
com.
 Sharma, S. and Sharma, R., 2019.
Culinary skills: the spine of the Indian
hospitality industry. Worldwide
Hospitality and Tourism Themes.
Market
There is still a major market gap which are such
opportunities disguised as voids in the London area
where in spite of the presence of many Indian
restaurants, the customers are not being effectively
catered for their requirements of vegan and health
products in the Indian cuisine that can be consumed by
all target segments and are also organically produced. As
per a market analysis by Assael, (2018), there is a a high
demand for Indian cuisines across London based
restaurants and there exists a gap, especially in niche
markets