Organica Restaurant Business Plan: A Comprehensive Report

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Assignment 1
Individual report

Table of Contents
INTRODUCTION........................................................................................................................2
EXECUTIVE SUMMARY............................................................................................................. 3
ABOUT COMPANY.................................................................................................................... 4
MISSION STATEMENT...............................................................................................................4
OBJECTIVES.............................................................................................................................. 4
PRODUCT AND SERVICE DESCRIPTION.....................................................................................4
MARKET ANALYSIS................................................................................................................... 4
POTENTIAL MARKET.................................................................................................................5
INDUSTRY ANALYSIS.................................................................................................................6
OPERATIONS DETAILS...............................................................................................................7
SWOT ANALYSIS....................................................................................................................... 8
FINANCIAL REQUIREMENT:......................................................................................................9
STRATEGY AND IMPLEMENTATION SUMMARY......................................................................10
REFERENCES........................................................................................................................... 11
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INTRODUCTION
The current business environment becomes very dynamic and competitive as the people are
coming with new and innovative business ideas regularly that increase competition in
different fields and industries of the world. There are greater business opportunities in the
food and beverages industry due to increasing tourism and changes in the lifestyle of the
general population. Thus, a comprehensive business plan for a themed restaurant will be
prepared in this report incorporating all the essential aspects of a business plan to achieve
the business vision and objectives of the organization.
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EXECUTIVE SUMMARY
The establishment of a new business venture with an innovative and unique idea is termed
as entrepreneurship. The entrepreneur establishes new business ventures by identifying the
existing market gaps and opportunities and develops products and services according to the
needs and demand of the customer. This business plan provides an overview of the
entrepreneurial venture ‘Organica Restaurant” planned by identifying the market
opportunities in the food and beverage sector due to increasing tourism and changing the
lifestyle of people in the UK. The business idea is to establish a totally eco-friendly
restaurant near Botany Bay beach, UK to provide environment-friendly eating options to the
local population and tourists. All the activities at the hotel are performed in an eco-friendly
way such as using solar energy, water management system, leaf and wooden equipment,
and etc. to capture the attention of environmentally aware people of all ages. There is a
great potential for the success of the business as the people are increasingly adopting eco-
friendly behaviour in the UK by identifying the harms of globalization. Initially, the business
will set up at small size and involve low investment with the aims of serving a maximum of
50 people at a time. This business plan would enable to gain higher attention of customers
and would support in generating revenues.
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ABOUT COMPANY
Organica is a small sized, single-unit restaurant that focuses on providing organic, creative
food services to the customers within a completely eco-friendly atmosphere. The restaurant
will be located near the botany bay beach, UK. The company will be started as a sole
proprietorship with capital partially acquired from personal investment and bank loans.
MISSION STATEMENT
Organica is a great place for having a totally naturalistic experience for eating organic food
in an eco-friendly environment. The restaurant provides a unique experience to every
customer with interesting and excellent food and services.
OBJECTIVES
 Sales of around $300,000 in the first year
 Developing high-quality innovative menu
 Pursue disciplined growth with superior customer services
 Creating brand awareness and value within three years
PRODUCT AND SERVICE DESCRIPTION
The restaurant will provide eco-friendly eating options and environment to the customers
that would enable them to feel responsible and energetic in the naturalistic ambience. The
menu will be extremely simple and keeps changing on a seasonal basis with two or three
constant items. Our primary focus is to include ethnic food to enable customers to
experience the local tradition and values in the ecological atmosphere to have peace of
mind and establish a connection with the place.
MARKET ANALYSIS
In order to successfully establish a new business venture; it is important to have a proper
understanding of the internal and external marketi8ng environment (Dale, 2019). For
analyzing the external market opportunities and demand in the market PEST analysis can be
effectively used;
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 Political: the restaurant industry is highly regulated in the UK and government
policies have a great influence on the several regulations and policies such as health
and safety policies, tax rates, labour laws, etc. the restaurant should comply with
these policies and regulations to successfully operate in the region (Adamkasi, 2016).
 Economic: the disposable income of customers, interest rates, taxation and
economic status of the country may have a great impact on the restaurant. For
instance, the economic instability may hinder tourism that would directly affect the
sales of the restaurant as tourists are the targeted customers.
 Social: social factors create a great opportunity for the business. The developing
lifestyle and education encourage people to adopt a healthy lifestyle and use eco-
friendly options. The people are increasingly looking for organic and eco-friendly
options for food (Evans, et al., 2017).
 Technological: technological advancements are also creating a great opportunity for
the business. The technological developments and innovations like green building
initiatives, solar energy equipment, food waste management, water management
system etc. can be effectively used to make the restaurant sustainable as well as
profitable.
POTENTIAL MARKET
The STP model can be effectively used to clearly identify the target market for the
restaurant and specify its characteristics. This model would support in identifying the most
valuable customers of the restaurant and develop products and services according to the
needs and demands of the customers to gain the attention of customers.
Segmentation: the market for the restaurant is segmented on the basis of demographic,
geographic and psychographic and behavioural aspects of the people (MindTools, 2019).
The key targeted market for the restaurant involves the people located or visiting around
the Botany Bay beach, that is environmentally aware and looking for eating organic,
authentic and healthy food. The customers are segmented in two groups; local people and
tourists involving individuals, groups and families.
Targeting: the market has great potential in each segmented area. The segmented market is
large enough to accelerate steady growth for the company. The PEST analysis has suggested
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that there is great opportunity due to changing social values of the customer (MindTools,
2019). Therefore, the segmented market will be targeted through effective marketing
techniques such as social media marketing, billboards and collaboration with travel
operators.
Positioning: the Organica restaurant will be positioned as the organic, eco-friendly and cost-
effective restaurant in the market.
Through the PEST analysis and identification of the potential customer and market through
the STP model, it can be stated that there is a huge growth opportunity for the Organica in
the market. The higher growth in the market is expected in the upcoming year.
INDUSTRY ANALYSIS
In order to formulate an effective business plan, it is important to have a clear
understanding of the industry environment. The industry analysis can be effectively
performed by through using Porter's five force analysis. This would enable in identifying the
competitiveness of the organization in the industry. The five forces are discussed as follows:
 Threat to new entrants: there is a high threat of new entrants in the restaurant
business as it requires moderate investment and planning. A small-scale is one of the
most promising and profitable business options to many people with ease of entry
and economies of scale that can be easily achieved after the establishment of the
production and operation system (Macelwain, 2018).
 Bargaining power of customers: customers have a high power to influence the
pricing decisions of the restaurant as the customers have switching choices with low
or no switching costs. Therefore, the prices and quality of the products and services
should be maintained to retain customers.
 Bargaining power of suppliers: the suppliers provide raw materials and equipment
to the restaurant. In the context of the eco-friendly restaurant the suppliers
involved, organic food providers, and industries that produce eco-friendly products
like solar panels manufacturers, agricultural farms etc. thus, the supplier power is
moderate in this industry (Macelwain, 2018).
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 Threat of substitute: the restaurant industry has a high threat of substitute as the
customer may opt for home-made food, fast-food, other cost-effective as well as
premium restaurants with less switching cost. This creates a high level of substitute
threat in the industry.
 Competitive rivalry: this industry faces a great threat of rivalry due to the presence
of several small-scale establishments and franchise brands (Macelwain, 2018). There
is little customer loyalty as people switch to one restaurant to another according to
their needs and demand.
OPERATIONS DETAILS
The operational details involve all the aspects related to the business operations such as
location, structure, system and staff members etc (Ravanfar, 2015). The operational details
of the restaurant can be effectively developed by using Mckinsey’s 7S Model;
 Strategy: the business strategy is to provide a unique eating experience to the
customers through offering totally authentic and organic food options in the
peaceful and eco-friendly ambience that provides a sense of belongingness and
responsible to nature to the customers and deliver greater satisfaction to them.
 Structure: it is a sole proprietorship business that will follow the team working
structure to share information within the business, solve business problems and take
efficient business decisions. However, the decisional power is held by the owner.
 System: the business is located near the Botany Bay beach an attractive tourism spot
where local population and tourists can easily access the restaurant through
billboards and collaboration with the travel operators. On the other hand, the
supplies will be sourced from the local organic farmers and manufacturers of eco-
friendly products. The restaurant will be built with woods and eco-friendly products
with the use of solar energy for lighting and kitchen work, in-house waste
management system, and water management system.
 Shared value: all the employees are encouraged to adopt responsible behaviour and
should manage their work in an eco-friendly way.
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 Style: Organica is a natural themed restaurant that offers organic and authentic
foods to the customers so the restaurant is styled in a natural way by using plants,
soothing colours, especially natural green and brown, wooden chairs, and etc.
 Staff: the team of around 20-30 staff members will be required to manage, produce
and serve food to the customers.
 Skills: the staff members are required to have proper skills and experience of
working in a restaurant. They should be able to communicate with the customers
effectively and understand the customer’s needs.
This model has enabled to formulate an effective operational plan and system for the
restaurant to perform all the essential activities of the restaurant effectively (Ravanfar,
2015).
SWOT ANALYSIS
To have proper knowledge about the personal competitiveness in comparison to the
industry and competitors is utmost important to formulate effective strategies and decisions
for business operations and growth (Wagner, 2019). A SWOT analysis can be effectively
used to analyze business effectiveness as well as products and services in comparison to the
identified competition and demands in the market.
Strengths Weaknesses
 The authentic and organic menu
 Unique naturalistic atmosphere
 Organic products at a great price
 Favourable location
 Eco—friendly operations
 Proper attention to individual
customers
 Seasonal products
 Lack of industry knowledge
 Slow food preparation
 Inexperienced wait staff
 Dependency on organic suppliers
Opportunities Threats
 Changing the lifestyle of people
 Increasing environmental awareness
of people
 Technological developments
 Chances of risks and loss
 Government legislation and taxes
 The threat of new entrants
 Existing competition
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FINANCIAL REQUIREMENT:
After having clear knowledge and information about the key requirements and operations
of the business, it is important to outline the financial requirements of the company to
manage the funds and finances of the business efficiently. Strict financial control would
support in achieving greater financial success (Bplans, 2019). The market and financial
analysis indicate that a total investment of around £150,000 will be required to start the
business that involves £50,000 from personal investment.
With the starting investment, the company could generate around £300,000 within the first
year with an estimated net profit of around 3%. The set-up cost and financial requirements
are presented in the below table:
Start-up Funding Amount (£)
Start-up expenses to fund 3000
Start-up assets to fund 145,000
Total funding required 148,000
Assets
Non-cash assets 50,000
Cash 91,000
Total assets 141,000
Liabilities
Long-term liabilities 95,000
Accounts payable 1,000
Total liabilities 10,000
Capital
Planned Investment 50,000
Start-up expenses (3,000)
Total capital 47,000
Total capital and liabilities 143,000
Total funding 148,000
Start-up Requirements Amount (£)
Start-up expenses
Legal 1500
Stationery 1000
others 500
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Total expenses 3000
Start-up assets
Cash required 91,000
Other current assets 50,000
Total assets 141,000
Total requirements 148,000
STRATEGY AND IMPLEMENTATION SUMMARY
The above-presented business plan has clearly outlined the aspects of a business that are
essential for starting a business successfully. The business objectives and mission are to
increase the sales and provide better services to the customers through the new business
idea of a naturalistic themed restaurant. The market and industry analysis has supported in
determine potential market and opportunities for business (McKeever, 2016). It has
supported in making strategic decisions to start a new business successfully. The above plan
will be implemented with proper control and monitoring to ensure that the business
objectives could be achieved successfully.
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REFERENCES
 Adamkasi, 2016. PESTLE Analysis of the Restaurant Industry. 2016. Online available
at https://freepestelanalysis.com/pestel-pestle-analysis-of-restaurant-industry/ Last
accessed on 10th June 2019.
 Bplans, 2019. Organic Restaurant Business Plan. Online available at
https://www.bplans.com/organic_restaurant_business_plan/executive_summary_fc
.php Last accessed on 10th June 2019.
 Dale, B., 2019. One Shot Pub: A Business Plan.
 Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and
Barlow, C.Y., 2017. Business model innovation for sustainability: Towards a unified
perspective for the creation of sustainable business models. Business Strategy and
the Environment, 26(5), pp.597-608.
 Macelwain, R., 2018. Threats That Drive Down Restaurant Profit Margins. Online
available at https://www.investopedia.com/articles/personal-finance/102315/why-
restaurant-biz-has-narrow-profit-margins.asp Last accessed on 10th June 2019.
 McKeever, M., 2016. How to write a business plan. Nolo.
 MindTools, 2019. Segmentation, Targeting and Positioning (STP) Model. Online
available at https://www.mindtools.com/pages/article/stp-model.htm Last accessed
on 10th June 2019.
 Ravanfar, M.M., 2015. Analyzing Organizational Structure based on 7s model of
McKinsey. Global Journal of Management And Business Research.
 Wagner, N., 2019. Sample of a SWOT Analysis for a Restaurant. Online available at
https://smallbusiness.chron.com/sample-swot-analysis-restaurant-73526.html Last
accessed on 10th June 2019.
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