Lebanese Restaurant Business Plan: Edgware Road, London

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Business Plan for Lebanese Restaurant
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Table of Contents
Executive Summary.........................................................................................................................3
Mission Statement...........................................................................................................................4
Purpose of Business Plan.................................................................................................................4
Business Goal..................................................................................................................................4
Description of Business...................................................................................................................5
Opportunity and Strengths...............................................................................................................6
Critical Risk and Problems..............................................................................................................7
Marketing.........................................................................................................................................7
Goal..................................................................................................................................................7
Objectives........................................................................................................................................8
Target Customer..............................................................................................................................8
Reference List..................................................................................................................................9
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Student 1
Executive Summary
In recent perspective, it has been observed that UK based consumers are always willing to buy
food related products and they are also concerned with different food items of different cultural
aspects. The Lebanese Restaurant will provide adequate Lebanese culture at their structure so
that the consumers can get a better idea regarding Lebanese Restaurant. Since in recent context it
has been observed that UK based consumers are willing to buy Lebanese food products for the
taste as flavour, it can be described that the organisation will get adequate success at their current
business plan.
The restaurant will provide main courses, side dishes, snacks as well as drinks for their consumer
base. All of the items these items will include Lebanese flavour and texture inside of it. As an
instance, the restaurant will provide Knefe, Mouajanet, Sweet Manakish as a part of their
breakfast item. All of these are such Lebanese break items that can be adequately enjoyed by UK
based consumers (McKenzie, 2015). Moreover, they will charge premium pricing strategy for
their products as well as service since their target consumer base does not belong from middle or
low income group people.
In addition to that, the restaurant will also provide Lebanese food related items at their main
course. Moreover, most of their snacks will have Lebanese flavour into it. They will provide the
most famous as well as complex Lebanese snacks, main course food item and side dishes so that
they can enrich the actual flavour as well as taste of Lebanese food items. In addition to that, the
organisation will also provide both alcoholic as well as non-alcoholic beverages towards their
consumer base. The non-alcoholic beverage includes different Lebanese drinks as well as soups
at certain extension. Moreover, they will also incorporate Lebanese alcoholic beverages in order
to provide UK based consumers the taste as well as flavour of Lebanese alcohol.
The organisation will be opened at a 4000 square feet place and it will be located at a busy street
so that it can attract a basic consumer base. In addition to that, they are going to incorporate the
basic cultural aspects of Lebanon at the organisational architecture. The overall surroundings of
the organisation, the sitting arrangement and all other things will represent a basic cultural aspect
of Lebanon. In addition to that, they will also design a modular kitchen from where their cooks
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will make the Lebanese foods. In addition to that, the organisation is also going to separate their
sitting arrangements in different parts so that their consumers can enjoy privacy as well as
relaxation while taking their food.
Moreover, the business will follow sole proprietorship as their legal structure and they will have
two different types of investors, which are primary investors and secondary investors. Their
primary investors will pay them quarterly and secondary investors will invest in six month gap.
In addition to that, 42% of their share has been allocated for their investors and the other
percentage will go towards the wellbeing of their organisation (Biech, 2019). It has been
estimated that their primary investors will invest more than $50,000 towards the restaurant and
the secondary investors will invest close to $20,000.
The overall management structure will be semi structured and the employees will have the
opportunity of take active part at the decision making process. The organisation will select
experienced employees for the managerial post. At least 3-5 year experience is needed for
working at the management department of the restaurant.
Mission Statement
The restaurant aims to give exclusive Lebanese foods, which were never tasted by people in
London at a homely atmosphere where families can have a great time.
Purpose of Business Plan
This business plan is documented for laying a ground plan for the business of Lebanese
restaurant. The plan intends to cover main objectives of business and methods it will use to
obtain financial support. This will act as guidance for achieving business goals.
Business Goal
The Lebanese restaurant belonging from London UK has following business goals:
To increase customer satisfaction- The restaurant has the business goal of increasing customer
satisfaction as it will increase their overall brand equity and brand extension. Satisfying the
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mental as well as food related need of consumers is the most basic business goal from the
perspective of the Lebanese restaurant.
To maximise profit- The restaurant will have the business goal of increasing their profit
generation by at least 20% by the next two years.
To satisfy employee base- Lastly, the restaurant will also have the business objective of
satisfying the basic need of their employee base so that they can make loyal workforce. It will
genuinely decrease their employee turnover rate while increasing employee retention rate.
Description of Business
The organisation Lebanese Restaurant will be such a restaurant that will be located at 22
Edgware Rd and the reason behind choosing such place is because it is a busy street and the
restaurant can automatically attract more consumers at certain extension. The organisation will
provide main course, snacks, beverages and side dishes as part of their services. In addition to
that, the consumers will be able to order food from a variety of different items. However, the
restaurant is going to put more focus towards Lebanese food as they are currently willing to
introduce UK based consumers with Lebanese Food items.
The restaurant will provide Knefe, Sweet Manakish, Mouajanet as a part of their Lebanese
breakfast item. In addition to that, all of their foods items will include Lebanese culture inside of
it. The organisation will also provide alcoholic as well as non-alcoholic beverages towards their
targeted consumer base (Burns and Dewhurst, 2016). They will try to incorporate Lebanese
flavour as well as context at their drinks services so that the UK based consumers can gain a
clear perception regarding the diversified flavour of Lebanon. The restaurant will surely offer
juice, soda, different flavours of cold drinks towards their consumer base. Moreover, it will also
expect that the restaurant will provide Lebanese flavour at their snack related items.
They will also provide different forms of soups, both vegetarian as well as non vegetarian as a
part of their side dish. Moreover, the side dishes also includes different forms of fries as well as
Lebanese cuisines in order to attract such UK based consumers that are willing to get
incorporated with Lebanese culture at certain extension (Wynne, 2016).
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Moreover, it has been anticipated that the organisation will be opened by accruing a 4000 square
feet place. Most of that place will be utilised for satisfying as well as serving the entire consumer
base. The management of the restaurant are willing to design a comfortable place for their
consumers where their consumers can relax while taking food. In addition to that, they are going
to incorporate basic Lebanese culture at their restaurant so that the consumers can get some feel
about Lebanese culture at certain extension. Furthermore, the restaurant will be having separate
sections where their consumers can enjoy as well as relax with their friends and families without
getting worried (Jansen, 2017). However, they will charge extra for having separate sitting
arrangements. Moreover, the organisation will aim at incorporating premium pricing strategy so
that they can maintain the basic integrity and quality of their food items.
In addition to all of these, the organisation has provide majority of their focus towards increasing
the basic satisfaction level of their consumer base as satisfying the basic need of consumers will
provide them the opportunity of generating more revenue, which is their primary objective.
Lastly, the management of the restaurant is also planning towards playing soft music at their
restaurant in order to create more comfortable workplace for their entire consumer base
(Chambers and Humble, 2017).
Opportunity and Strengths
Exquisite deliciousness of Lebanese food brings in several opportunities for the restaurant in
London. Over the years, there has been a radical change in taste buds of people of London, as
they are accepting foods of Lebanon (Abdallah et al., 2019). Therefore, the chance is ripe for
opening a restaurant and harvesting this opportunity is possible. There are many Lebanese
restaurants, which has tasted success recently and the mixing of different culture in London is
making it possible. Therefore, bringing more Lebanese food on palette of London’s people is a
practical idea and that is a major cause behind this opportunity. The location chosen for opening
this restaurant is ideal, as this is at Westminster. This place is quite rich and economically
higher-class people lives here. Therefore, opportunities for getting higher sales are present. The
city is quite busy and people have tendency to spend quality time with closed ones at weekends.
It brings further opportunities for this Lebanese restaurant.
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Lebanese foods use method of Levantine style for cooking and this makes their food have an
exotic taste. Therefore, its unique taste and appeal attracts many food lovers. Food contains
whole grains, starches, exquisite fishes, fruits and vegetables. Baba Ghanouj will be the main
attraction of this restaurant, which is the most authentic Lebanese dish. Foods from every region
of Lebanon will add up to the strength of this business. Items like Hareeseh, Maakroun bi
Thineh, Makhlouta, Riz bi-Djaj and many other items will be a reason for customers to savour it.
Special Lebanese beverages such as Arak, Jallab, Lebanese wine are some point of major
attractions and strengths. If any food item is not becoming popular in a particular season, then
other replacements will be there to compliment it (Flowers and Swan, 2016). Expert cooks, who
are old residents of Lebanon, and grew up with this food culture, will be taking charge of this
restaurant. Therefore, this will be another factor of strength of this business. In addition, a posh
are like Edgware Road, which is in Westminster and this is a good environment for business. A
large area of 4000 feet will be used and this spacious restaurant will attract more customers.
Critical Risk and Problems
Food business can face threat from economy and due to recent incident of Brexit in UK; there
can be a worsening economical condition in future. Without proper income, people will not be
able to afford foods from this restaurant. Another problem can come from increase in cost for
importing food ingredients from foreign countries due to higher taxes. Racism can be another
problem and employees at this restaurant who are natives of Lebanon can face this. They may
not want to work further in a place like this, which is a risk factor for this business. However,
there is a slight chance for this incident but a Lebanese restaurant has unique set of problems.
People may not find Lebanese food attractive anymore over year due to their changing taste in
food. Lebanese foods use high amount of spices and cheese for making their foods. There have
been major obesity issues in UK, let alone London. Therefore, health conscious people may not
want to consume this food (Siddique, 2017). This will cause major loss of money to people,
which can be a serious financial risk for restaurant. Competition with other Lebanese food joints
can become tough and managing competitors can be risky.
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Marketing
Goal
The restaurant will generate revenue of 65000 pounds per month for next 16 months after it is
opened.
Objectives
 To increase sales up to 16 percent at the end of 2021
 To increment customer satisfaction up to 20 percent by end of 2021
 To reduce waste of this restaurant by 25 percent by 2023
 To open three new outlets in posh areas by 2024
 To become a renowned Lebanese restaurant in UK by 2028
Target Customer
Main target customers will be people of Westminster and greater London area. This will cater to
people who live near Edgware Street or visit the place for any reason (statista.com, 2019). About
18233 people are living in Edgware. There are many other people, who visit this place for
business. These people are part of target customers for this business. These customers are from
every gender and it will target mainly people aging from 20 to 50 years old. These people belong
to medium and high-income group and their salaries ranges from 25000 to 70000 pounds
approximately. People, who are food lovers and love to try exquisite dishes, are major target
customers.
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Student 2
Estimated Market Share and Sales
Depending upon the Lebanese Restaurant’s customer profile, the numbers have been complied
below. The report that the Phoenix Real Estate prepared has been utilised for the compilation
based upon information obtained from the Facts Report. The report had been created utilising the
Lebanese Restaurant as the point of focus while delineating numbers by a radius of five, three
and one mile. The National Statistics indicate that majority of the people do not go beyond three
miles for entertainment or eating purposes and shows that 172606 people reside within the three
miles radius. The target customers’ breakdown has been shown below -
Age Percent Percentage of Population
21 to 24 7.75%
25 to 29 8.25%
30 to 34 9.65%
35 to 39 7.69%
40 to 49 14.45%
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Total 47.79%
Income Percentage of Population
25000 to 34999 15.50%
35000 to 49999 19.25%
50000 to 74999 20.65%
Total 55.40%
Education Percentage of Population
Bachelor's degree 25.65%
Graduate 14.25%
Associate degrees 10.50%
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Some college 2.65%
Total 53.05%
Occupation Percentage of Population
Administration executives 18.19%
Technical support employees 12.61%
Specialty services and
professors
6.25%
Executives 19.75%
Total 56.80%
Market share formula -
In this formula, the total population is taken followed by multiplying the number with the
percentages as per its significance to the target customer, which is shown below -
Total market
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= Total population * % of Age * % of Income * % of Education * % of Occupation
= 172606 * 47.79% * 55.40% * 53.05% * 56.80%
= 13770 persons
Market share for the restaurant
2.3% of the market = 316 customers per day = 20 customers per hour
1.9% of the market = 261 customers per day = 16 customers per hour
1.5% of the market = 206 customers per day = 13 customers per hour
Occupancy levels
Total 130 persons is the level of occupancy for the Lebanese Restaurant. The determination of
the occupancy levels can be done using two differing methods shown below -
Hourly - Based on hourly estimation, the customer rate is going to be 10% of the occupancy
level 13 customers per hour / 130 = 10.0% occupancy each hour
Mealtime - Primarily, there are two turnovers for each meal. Depending upon the projections,
percentages would be resulting to 32% for breakfast, 22% for lunch and 25% for dinner.
Breakfast - 84 / 2 = 42 / 130 = 32% occupancy level
Lunch - 56 / 2 = 28 / 130 = 22% occupancy level
Dinner - 66 / 2 = 33 / 130 = 25% occupancy level
However, in reality, the actual rate of occupancy will be lying at some point in between. The
customers of the restaurant would not be coming in during the time of breakfast nor will the
customers be spaced evenly around the restaurant throughout the day.
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