Key Benefits Restaurant: A Sustainable Growth Business Plan

This report presents a business plan for establishing "Key Benefits," an Italian restaurant, emphasizing sustainable growth. It includes a PEST analysis to identify market trends and target young consumers. The plan outlines financial forecasts, utilizing personal investment and borrowing as funding sources. Key aspects covered are product innovation, customer targeting using the STP approach, marketing mix strategies, and a competitive analysis using Porter's Five Forces. The plan also addresses skills analysis, resource acquisition, management information systems, and the business's vision for future market coverage and sales growth. The financial projections indicate promising profitability and cash flow, essential for sustainable development.

CW1 GROWTH
SUSTAINABLE BUSINESS
PLAN

EXECUTIVE SUMMARY
The current report dealt with the development of the business plan for establishing a new
restaurant Key Benefits which is an Italian based restaurant. The report analysed that business
environment analysis is very important as it helps in identifying the trends and this was done
with help of PEST. Further this was also helpful in setting up the target consumer which was the
young people. Along with this it was evaluated that the setting financial forecast is important in
order to provide a guide for managing finance. Also the suitable source of finance found was the
combination of the personal investment and borrowing from others.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................5
MAIN BODY..................................................................................................................................5
Product, innovation and IPR to protect business.........................................................................5
Customers....................................................................................................................................6
Competitors..................................................................................................................................7
Skills analysis..............................................................................................................................7
Project financials.........................................................................................................................8
Sources of Funds..........................................................................................................................8
Plans for obtaining resources.......................................................................................................8
Management and information system and types of organization tools required.........................9
Vision for business idea...............................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION
Business plan refers to the document that used to describe that how the business will
start-up and will achieve its objectives and goals. The main purpose of this report is to know
about the new business and its products in the market. The new organization is Key Benefit
which is the Italian Restaurant. The report will outline the business plan in order to start this
business. This will include the PEST analysis, STP approach, Marketing Mix and Porter's five
forces.
MAIN BODY
Product, innovation and IPR to protect business
As the company is the Italian restaurant in the market of UK and they must produce
something new in order to attract the customers. The company used to bring new variety of Pizza
which helps them to attract the customers. The new chocolate sandwich will be consisted of
bread by having layers of chocolate on them. The organization is having the variety of menu that
helps them to gain profitability in the market.
The PEST analysis for the new propose business is as described below:
Political factors: The trade relationship is very high with the Italian restaurant as there
are many shops in the market. The company must follow the rules and regulations of the
government that helps them to survive in the market.
Economic factors: This factor used to benefit the company as the income of the people
are growing. The people are having more income that helps them to have great spending in the
market.
Social factors: This is the most affecting factor for the company as nowadays people are
more health conscious. The Italian restaurant must use to produce the dishes that are health
conscious for the people in the market.
Technological factors: The company must adopt the new and innovative technology that
helps them to survive in the market (PEST analysis on Italian restaurants in London Essay,
2022). As it is the small Italian restaurant they must have the new machine of making the coffee
and other things which used to prepare the pizza faster.
The cited organization can choose the trademark that helps them to have uniqueness in
the market. This will help them to have the uniqueness in order to gain profitability in the
market.

Customers
The target customers for the Italian restaurants are basically the kids as they are having
the new product that is chocolate pizza. This will attract the young people and children which
helps the firm to have good profitability in the market.
The USP of the company is that “Love your snacks and beverages and make us know we
will make it proper”. This will help the company to get the feedback of their product from the
customer instantly.
STP approach
Segmentation: The company has segmented its products on the basis of age and gender.
As they used to produce the variety of products for kids, young and for old people as well
(McKeever, 2018). This will help them to survive in the market and have good profitability.
Targeting: The target market of the new business is basically the young people and
children. As the young generation is very fond of going to the cafes so the cited shop must have
the best product according to them.
Positioning: The positioning for the company is to give more that the consumers need in
the market. They must have lower rates compare to other Italian restaurant which helps them to
attract more customers in the market.
Marketing mix
Product: The new product brought by the company is pizza that helps them to attract the
customers. The menu of the company also offers the quality of products that will satisfy the
customers.
Place: As it is the Italian restaurant the company used to distribute its products at their
store only. There are no other stores of the company in the market which will affect the
profitability. The company also used to have the online delivery of the orders received from the
same market.
Price: The prices of the products is very reasonable and affordable that will attract the
customers. As there are various competitors in the market and it is the new proposed business, so
they must focus on targeting the customers rather than prices.
Promotion: The promotion techniques used by the company is having the advertisements
through pamphlets (Fichter and Tiemann, 2020). The company can also do the promotion
through social media that includes Facebook, Instagram, etc.

Competitors
Porters Five Forces
Forces Description
Threat of new entrants As the company is the small firm so there is
the high threat of entering of new business
in the market.
Threat of substitutes Substitutes are the same product which can
be consumed by the customers (Barrow,
Barrow and Brown, 2018). As there are
several other Italian restaurants so there is
availability of substitutes.
Competitive Rivalry This is the new business so it will be having
many competitors in the market. So the
competitor's rivalry is also very high.
Bargaining power of suppliers As there are many suppliers in the market so
the bargaining power of the supplier is low.
If the suppliers increase the prices company
will switch to the other suppliers.
Bargaining power of customers The bargaining power of the customer is
very low as the prices of the product are
written on the menu.
Skills analysis
In order to start the business, I have the good communication skills that helps me to talk
with the customers. As my customer handling technique is very good that will help me to attract
and have the target customers. In order to have growth of business I have to improve my research
and analytical skills (Han and Kang, 2020). By having good research skills helps me to find the
new trends in the market and helps the business to grow. As the restaurant is consisted of skilled
labours and employees which will grow in the market.

Project financials
Attached in appendix
With the help of the financials, it is clear that forecasted profit of the company is good
and it can also be improved. This is necessary because when the profits will be increasing then
this will be increasing the profitability of company and growth will take place (Henriques, Matos
and Jerónimo, 2022). Along with the cash flow statement it is clear that company is having
enough forecasted cash balance and this is good for the growth and development of the company.
Sources of Funds
There are many sources of fund that are available to the company in order to raise fund
which are as described below:
Personal Investments: The company can use the personal saving in order to raise funds in
order to have expansion. This is best as no interest rate company has to pay to anyone and they
used to get great return on amount invested.
Borrowing from others: This is another source of finance which can be used by the
company in order to gather money for the working and management of the new business. Here
the interest need to be paid on the borrowed money along with the principal amount.
Crowdfunding: This is a source of finance wherein the small amount of the capital is
being formed by large number of individuals. This is also a source of finance which is cheap as
compared to the other sources.
For the effective working of Key Benefits the combination of personal investment and
borrowing from others will be used.
Plans for obtaining resources
Particulars Formula Amount
selling price per unit 90
less: VC per unit 70
Contribution Selling price- VC 20
FC 90000
BEP (units) Fixed cost/ contribution 4500
BEP (rupees) 450000

For the effective analysis and management of the resources the use of BEP units of 4500
is needed in any condition. This is very important for the reason that when the BEP units will not
be maintained then this will be affecting the profitability to a great extent.
Management and information system and types of organization tools required
For the effective management of the business there is requirement of the different types
of MIS and other system. For the effective management of the consumer the use of different
CRM system will be implemented (Hopp and et.al., 2018). This is very important for increasing
of the profitability of the business. along with this different tools like MIS, DSS and others are
also used in order to manage the data and with help of it increase the sales.
Vision for business idea
In the future, Key Benefits will be having good market coverage and this will increase the
profitability of the company. This is pertaining to the fact that when the working of the company
will be good then this will be improving the working efficiency of the business. The mission of
the company is to increase the sales of company by at least 22 % in the next year.
CONCLUSION
From the above report it is concluded about the business plan for Key Benefit which is
the Italian restaurant. The above report evaluated that for the business plan to be executed there
are different steps to taken. This involves the analysis of the external environment with help of
PEST. Further the report analysed that forecasting the financial data is very important in order to
guide the business in improving the efficiency of business.

REFERENCES
Books and Journals
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.
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production. 267. p.122076.
Han, S. and Kang, E., 2020. The marketing strategy to stimulate customer's interest in art-gallery
business plan. The Journal of Distribution Science. 18(8). pp.47-54.
Henriques, P. L., Matos, P.V. and Jerónimo, H. M., 2022. Eager to Develop Sustainable Business
Ideas? Assessment through a New Business Plan (BP4S Model). Sustainability. 14(2).
p.1030.
Hopp, C. and et.al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly. 68(4). pp.361-398.
McKeever, M. P., 2018. How to write a business plan. Nolo.
Online
PEST analysis on Italian restaurants in London Essay. 2022. [Online]. Available through: <
https://ivypanda.com/essays/pest-analysis-on-italian-restaurants-in-london-essay/>

APPENDIX
Forecasted profit and loss
Year 1 Year 2
Particulars
Amount
($)
Amount
($)
Amount
($)
Amount
($)
Sales unit 9450 9639
Selling price 90 91.8
Sales Revenue 850500 884860
Less Cost of Sales 685000 695275
Gross Profit 165500 189585
Gross Profit Margin 19% 21%
Expenses:
Payroll 10500 11130 0
Sales and Marketing 6400 6784
Depreciation 1000 1060
Utilities 1450 1537
Insurance 600 636
Rent 5400 5724
Payroll tax 1600 1696
Less Total operating
expenses 26950 28567
Profit before interest and
tax 138550 161018
Less Interest 1200 1150
Profit before tax 137350 159868
Less Tax @ 20% 27470 31973.6
Net Profit 109880 127895
Net profit Margin 13% 14%
Forecasted cash flow statement
Particulars Details Year 1
($) Year 2
Opening
cash
balance (A)
5000
60000
Add Cash
inflow:

Sales
receipt 850500 859005
Purchase of
long term
assets
65000
65065
Total cash
inflow (B) 915500
924070
Less Cash
outflow
Expenses
excluding
depreciation
80000
92000
Bill
payments 40000 48000
Total cash
outflow (C) 95000
140000
Net Cash
flow (D) =
(B) - (C)
55000
784070
Closing
cash
balance (A)
+ (D)
60000
844070