Pizzeria Street: A Detailed Business Plan for a New Auckland Pizzeria

This document presents a comprehensive business plan for Pizzeria Street, a proposed pizza restaurant in Auckland. The plan details the business description, mission, goals, and legal structure, along with an organizational structure and staffing plan. A thorough market analysis examines the competitive landscape, identifies strengths, weaknesses, opportunities, and threats, and outlines a marketing mix. The plan includes an action plan, compliance requirements, and financial projections, such as start-up funds, promotional budgets, sales forecasts, cash flow forecasts, profit and loss accounts, and balance sheets. The business aims to establish a strong market presence and become a leading pizza destination in Auckland, offering high-quality products and services with a focus on customer satisfaction and community engagement. The plan also addresses the operational aspects, including staffing, marketing, and financial strategies to ensure sustainable growth and profitability.

Running head: APPLIED BUSINESS PLANNING
Applied Business Planning
Name of the Student
Name of the University
Authors Note
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1APPLIED BUSINESS PLANNING
Table of Contents
Business description:..................................................................................................................3
Mission of the organization:.......................................................................................................3
Goals of the organization:..........................................................................................................4
Legal structure of business:........................................................................................................4
Organization structure and staff:................................................................................................5
Market analysis:.........................................................................................................................5
Competitor Analysis:.................................................................................................................6
Strength and Weakness:.............................................................................................................7
Opportunities and threats:..........................................................................................................8
Marketing Mix:..........................................................................................................................9
Product:......................................................................................................................................9
Promotion:..................................................................................................................................9
Place:........................................................................................................................................10
Pricing:.....................................................................................................................................10
Action plan:..............................................................................................................................11
Compliance requirement:.........................................................................................................12
Promotion of compliance:........................................................................................................12
Financial Plans:........................................................................................................................13
Start-up Fund:...........................................................................................................................13
Promotional Budget:................................................................................................................14

2APPLIED BUSINESS PLANNING
Sales Forecast:..........................................................................................................................15
Cash flow Forecast:..................................................................................................................16
Profit and Loss Account:..........................................................................................................17
Balance Sheet:..........................................................................................................................18
Reference List:.........................................................................................................................20
Appendix:.................................................................................................................................22

3APPLIED BUSINESS PLANNING
Business description:
Pizzeria Street is a tasty family oriented pizza business that specializes in pizza, pasta
and frozen yoghurt. Pizzeria Street is a quick pizza service restaurant that aims to offer its
customers with superior quality customer service and distinctive quality of Italian pizza
experience. The business will be located in Auckland and the owners of the business will be
offering its customer with unique customers with delectable pizza, pasta, sandwiches,
appetizers and desserts in an inviting environment conductive to extended or simple family
place for meal out (Drucker, 2014). The owners of the business is sure that to make the
business successful they aim to provide a superior dine in facilities for their families that
looks for wholesome food paired with fun. The menu of the pizza store would additionally
feature the favourite range of food such as pepperoni, cheese along with the special pizza
which will provide the customers with experience like no other in the city.
Mission of the organization:
The fundamental mission of the owners of business is to make Pizzeria Street a
favourite destination for every forms of customer. The owners aim to make the business as
the ultimate pizza destination in the city of Auckland. In compliance to the mission is the
belief, which the successful business should be involved in all the areas of the community
where they operate (Kirzner, 2015). The company mission is to be engaged with the
supporting supportive community of its customers in myriad ways.
The mission of the company is to provide service environment and service delivery of
pizza in each part of the city to either meet or exceed the experience of the customers. The
mission of the company is to become the first choice pizza in the city and simultaneously a
respected pizza stores as the measured by the customers, employees, shareholders and the
community in which the store will be located (Kuratko, 2016).

4APPLIED BUSINESS PLANNING
Goals of the organization:
The goal of the company is to establish a market presence that is necessary to attract
the customers and go past the goals of sales. The owners goal is to make Pizzeria Store a
favourite pizza place among the customers in the city of Auckland. To attain the healthy
monthly sales inside the span of two months of opening the store by increasing the regular
daily sales modestly all through the year to $3000 per day of gross sales following extended
promotions and discounts.
The goal of the business is to attain a constant three-digit profit within the span of
three years following the establishment of the store. The long-term goals of the owners is to
ultimately expand the operations into the surrounding cities inside the span of three years
(Schaper et al., 2014). Another long term goal of the company is to establish a long term
market share of Pizzeria Store following five years of operations.
Legal structure of business:
The legal structure of the business will based on the partnership form with each
member of the business will be contributing capital in respect of the ratio of capital
contributed by him or her. The liability of the partners will have limited to the face value of
the capital contributed by them (Storey, 2016). The partners will privately hold the company
with majority of the shares being shared in equal ratio. The investors will be the co-owners to
participate in the capital structure of the company at ratio of 50:50. The purpose of the legal
structure of the business is to secure the financing for that amount. The funds that will be
provided by the owners will be used to fund the potential interest in the company with
important assumptions section of the plan.

5APPLIED BUSINESS PLANNING
Organization structure and staff:
The owners of the business hold a decade long experience in the hotel industry. The
company will be having assistant managers that will be recruited based on the qualifications.
The initial team of management is reliant on the founders. As the company is currently small
in nature, it needs a simple organizational structure. Implementing a management team of the
organization calls for the owners to make all the major management decision in addition of
monitoring all the other business activities (Ebert et al., 2014). The organizational structure
will comprise of the director of the store when the location of the store is set up.
The owners anticipate that the individual will deliver the best in the store
management. This will help in creating a supervisory level amid the executive level and the
store administration level. The present plan is to have the accounting and payroll functions,
which will be completed by the in-house bookkeeping (Hammer, 2015). At the initial level
the employees structure will comprise of the two cashiers, four chefs and two delivery boys
per location with one of the each during the premises open hours. During the long run of the
business as the business would expand their products category and retail outlets in the middle
of the management to make sure that the focus of store work is maintained.
Market analysis:
Pizzeria Store discovers itself bordering amid the edge of the two different industries.
Not only is the company competing against the other fast service restaurants in the city but
also the pizza dynamo such as Domino’s and Pizza hut (Hollensen, 2015). The industry of
pizza is considered as the massive industry and a difficult industry to stay ahead however the
Pizzeria Store cash cow is the pizza therefore the company is anticipating to excel in this
field. The local area of Auckland is a well-developed market that is growing low to middle
class area with more than one million residents.

6APPLIED BUSINESS PLANNING
Around 200 business is close to the locations of the Pizzeria Store business. A large
number of them are families based dining restaurant. The growth in this area is primarily due
to the response of the new business and opportunities of employment in the city’s local bay
industrial park (Goworek & McGoldrick, 2015). There are identical food service businesses
in this area that have traditionally done well with this population and have proved their
potential for a Take-out Pizza. With constant amount of growth in this industry, the
opportunities of serving the local residents will increase.
The customers on the other hand vary largely in terms of the demographic
characteristics and choice of lifestyle. This will make somewhat difficult to target certain
types of individuals however, product differentiated marketing strategies will be adopted to
attract the customers from both inside and outside of the city (Armstrong et al., 2015).
Positive outcome of the economic reflectors and hopeful increase in the consumer’s
disposable income give rise to the anticipations that pizza market will be slight but steady
growth for the industry. The recent economic reflectors offer a positive economic growth and
anticipations are that the number of restaurants could approximately 300 locations in
Auckland and may turn out to be the good year for the industry.
Competitor Analysis:
The proposed location of setting up the pizza store in the city of Auckland is occupied
by the competitive restaurants, which would help in drawing the traffic of customers to the
area. A large number of the food restaurants is comprising of predominantly in the casual
theme including the fast food chain restaurants (Sheth & Sisodia, 2015). The competitor
analysis of the Pizzeria Store is complex because of the fact that it is identical industry of
Pizza hut, Domino’s and Papa John’s. This business comprises of the fast service pizza,
concentrated restaurant such as Pizza, Papa and Domino’s.

7APPLIED BUSINESS PLANNING
The above stated three companies are the clear leaders in the pizza industry and being
the seller of Pizza the company should rise to the occasion. It is noteworthy to denote that
these competitors are not too easy to beat the pizza power however with differentiated
product strategy the company can be more appealing than other eating pizza store available in
the city. As the company is centrally located in the city of Auckland, which is the local bay
area close to the industrial, bay Industrial centre (Keller & Kotler, 2016). This is regarded as
one of the busiest area in the town with the closest pizza is approximately thirty minutes of
drive there are is a great chance of the business to excel in the pizza industry.
Lower cost of operations and reasonable price of the product might result in profit of
the company. Excellent service of pizza and on time delivery service would provide the
business with competitive edge. The competition in the market is arena is considered to be
fiercest in respect of the other metropolitan areas in the city. Auckland is the compact city
and has lot to offer (Bresler & Lubbe, 2014). The retailers operating in this industry does not
want to lose the opportunity since the competitors are offering substitute product within the
identical product categories. This phenomenon has made the business of pizza easy to attract
customers because of the high amount of people strolling around in the main areas of
Auckland.
Strength and Weakness:
Strength:
Pizzeria Street would be having a valuable strength of inventory, which would make
the company successful. Another strength lies in the location of the company with excellent
quality of Italian pizza, which is presently not available in the local Bay area (Jooste &
Strydom, 2014). On the other hand, the experience of the management could be considered as
the proven experience that will be successful in the management of the business. Another

8APPLIED BUSINESS PLANNING
important factor that could be considered as the strength of the pizza street is the state of the
art of the company along with the energy efficient preparation of pizza equipment and
technology. The company is dedicated to the clear needs of the market and the business
clearly understand the needs of the customers that are familiar with the latest technology and
the company can provide pizza service which would bring the two together.
Weaknesses:
Strengths is considered to be valuable for the business however it is necessary for the
company to realize the weaknesses surrounding the business as well. A weakness for the
business that could be its cost factors that are involved in keeping the state of the art of
equipment and technology (Ebert et al., 2014). Additionally, the business is new in the town
and faces the challenge of start-up. On the other hand, the company faces limited capacity of
operations during the peak sales periods.
Opportunities and threats:
Opportunities:
Taking into the considerations the strength and being aware of the weaknesses, the
company will be able to capitalize on the emerging opportunities. One of the opportunity of
the business is the fastest growing population and the market of the local bay of Auckland.
There is no other specialized pizza take-out and delivery restaurant within the span of 8
miles’ radius from the selected location of the store. Additionally, the area consists of the
large number of middle to high-class population and more than five hundred business in the
areas (Hammer, 2015). There is medium to low competition that is offered to the Pizzeria
Street in the surrounding area. It is noteworthy to denote that consumer behaviour changes
because of the economic downturn, respectively an increased preference to purchase
affordable pizza rather than purchasing expensive meals.

9APPLIED BUSINESS PLANNING
Threats:
Threats surrounding the Pizzeria are as follows;
a. Slow recovery procedure of the economy from the present economic downturn
b. Changes in the environment of business may lower the cost of the sales
c. Higher taxes in the future
d. The commercial property is leased and it is not owned by the company
e. Tighter terms of credit, higher rate of interest and higher rate of inflation rate than
anticipated
Marketing Mix:
Product:
Pizzeria Street has wide range of product to offer and the company is trying to market
itself as not only the seller of pizza but also the other products. At Pizzeria Street, the
consumer will also be offered with food such as pasta, dessert, yoghurt and may pick many
more from the great ambience (Goetsch & Davis, 2014). These comprises of the famous
chicken grill salad, sausage and meatballs along with the several more speciality.
Promotion:
Pizzeria Street will be offering promotions to promote its product. Additionally, the
company would be providing promo codes that would be going around the internet where
customers can easily redeem for their purchase (Keller & Kotler, 2016). Television is
considered as the popular means of advertising and Pizzeria Street will be taking more
advantage of it. As the rival companies such as domino’s and papa jeans constantly promote
their product through television advertisement, Pizzeria Street will include special cuisine
along with the unique customer service.

10APPLIED BUSINESS PLANNING
Place:
Pizzeria Street would be having its outlets located in the centre of the city with next
pizza destination is around half an hour drive away or in other words, it is eight miles away
from the intended business location. In order to expand, the company will be undertaking
major investment in the long run to expand its franchise in the other parts of the city to
promote its products and services (Jooste & Strydom, 2014). Consumers loves Italian cuisine
and even though a consumer does not have fond for Italian food will find something on the
menu that would attract them to the store.
Pricing:
Increasing costs makes it tough to plan for the pricing of the product for a new
business. As people react negatively to the change in price in menus, franchises needs to be
make smart decision. This is where Pizza Street needs to make differentiate. Reasonable, but
taste intensive cuisine for the middle class family is what the company is required to
understand. To reach the perfect pricing strategy six price variations across the numerous
items listed in the menus were also tested. Therefore, the price appears to be reasonable and
in line with the competitors.

11APPLIED BUSINESS PLANNING
Figure 1: Figure illustrating Marketing Mix
(Source: As Created by Author)
Action plan:
The action plan is designed to meet the success of the pizza store. The below stated is
the action plan for the business are as follows;
Menu development: The action plan development in this context is to address the chef for
developing a creativity of the menu based on the theme of the restaurant. The action plan of
developing menu is to appeal the targeted customers.
Cost and margins: This actions plan has been developed for chef to create the cost of each
menu item and suggesting the retail price for the menu (Jeston & Nelis, 2014). The action
plan comprises of the selection of the vendors with the lowest price and constant quality to
meet consumer experience.
Quality and consistency: This action plan addresses the customers that comprises of
maintaining quality and consistency of food.
Marketing
Mix
Product
Promotion
Place
Price