Food and Beverage Management Report - Auckland Restaurant Plan

This report presents a detailed business plan for a new restaurant in Auckland, New Zealand, focusing on a multi-cultural theme to cater to a diverse clientele. It includes a comprehensive SWOT analysis to assess the restaurant's strengths, weaknesses, opportunities, and threats in a competitive market. The plan outlines the restaurant's concept, design and decoration aspects, staffing plan, marketing budget, and financial options, including start-up and annual running costs. Service provision, including food and beverage offerings, and facilities layout design are also covered. Furthermore, the report emphasizes the importance of health and safety aspects, detailing hazard control measures and emergency procedures. The report aims to provide a sustainable and viable business model for the restaurant.

Running Head: FOOD AND BEVERAGE MANAGEMENT 1
Food and beverage management
Module Name and Code Name
<Student ID>
<Student Name>
<University Name>
<Tutors Full Name>

FOOD AND BEVERAGE MANAGEMENT 2
Contents
Introduction................................................................................................................................3
Concept and Theme....................................................................................................................3
Description of design and decoration aspects............................................................................3
Restaurant Feasibility– SWOT analysis.....................................................................................4
Business Plan.............................................................................................................................4
Staffing plan...............................................................................................................................5
Marketing budget.......................................................................................................................5
Financing Options – Start-up costs and Annual running costs..................................................5
Viable financial options.............................................................................................................5
Service Provision – Food and Beverages...................................................................................6
Facilities and Layout Design......................................................................................................6
Health and Safety aspects...........................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................7

FOOD AND BEVERAGE MANAGEMENT 3
Introduction
A thorough and careful planning is necessary before establishing a food service
business in the competitive business environment. The business plan that has been presented
has been designed with the intention to open a new restaurant in the metropolitan area of
Auckland. The key areas have been covered in the plan so that the business can be feasible to
establish and operate (Agius, 2015). The concept and theme of the new restaurant, a thorough
SWOT analysis, sustainable business plan and financial model and service design has been
incorporated in this business model.
Concept and Theme
Since the new restaurant would be located in the vaiduct area of Auckland with
people from different cultural backgrounds, a multi-cultural theme would be adopted in the
restaurant which could highlight the Kiwis’ culture. The style and design would basically
showcase the friendly and welcoming attitude that is the unique element of the nation.This
concept has been selected so that the customers could embrace the inviting environment in
spite of the difference in ethnicity (Chen, et al., 2015).
The café model would be adopted in the restaurant so that the customers from all age
groups could spend quality time in the soothing ambiance.The main focus would be on
customers ranging between 18 years to 45 years since the location is always full of students
as well as professionals (Davis, et al., 2013).
Description of design and decoration aspects
A bright and lively setting would be created in the restaurant so that the customers
could enjoy their time in the restaurant. The design would be kept simple yet sophisticated so
that all the detailed aspects of the interior decoration could be observed by a viewer. The best
quality furnishing items would be used so that the comfort of customers is not compromised.
Twoof the outer walls of the restaurant would be made of glass so that the customers
could get a clear view of the outside. In order to add a personal touch in the environment, the
customers would be allowed to bring their personal coffee mugs so that they could be served
in them (de Mattos, Pontes & Marietto, 2016)

FOOD AND BEVERAGE MANAGEMENT 4
Restaurant Feasibility–SWOTanalysis
In order to determine the feasibility of the new restaurant with the refreshing concept,
a SWOT analysis has been conducted. The assessment of the strength, weakness, opportunity,
threats would help to understand the position of the business in the competitive environment.
Strength –
The main differentiating factor of the restaurant would be its multi-cultural ambiance
which would focus on positivity and happiness. The location of the place would enhance the
visibility of the business in the market and thus it could become the new big thing in New
Zealand’s restaurant industry (Domingo, 2017).
Weakness –
The main weakness is the humble financial back-up with which the business would be
initiated. In the prevailing environment, the finding of right restaurant staff would be a
challenge. The restaurant would have to establish a solid reputation as quickly as possible.
Opportunity –
The use of technology is limited in the business plan, but it could play a major role in
future. The online presence of the business could open new profitability options for the
restaurant business (Duru, Ekwe & Okpe, 2014).
Threat –
There would be threats in various forms including intense competition, government
regulations to meet standard quality of food, turnover of the employees, change in taste of the
customers, etc.
For the sustainable growth of the business, a regular analysis of the business
environment would be necessary (Grekova, et al., 2014).
Business Plan
As per Mo & Chen, the majorareas that must be taken into consideration while
devising a business plan includethe business scope, staffing function, marketing and
promotion activities. Since there are a large number of entrepreneurs and firms that operate in
the restaurant industry, the initial focus of the restaurant could be on offering light snacks like
the sandwich, cookies, finger food, etc, and beverages like coffee, tea, juices, soda, cocktails,

FOOD AND BEVERAGE MANAGEMENT 5
etc. (Mo & Chen, 2016). The high quality of offering and environment would help to create a
strong brand name in the industry. With popularity, it could expand its scope of operations.
Staffing plan
The staffing function is a crucial activity since the restaurant staff would directly
interact with the customers. The basic educational background, prior experience in the field
and personality assessment would play a key role to select right people for the job. Initially,
around 10 people could be recruited excluding the cook and the receptionist based on their
skills. The number could increase with time (National Restaurant Association. 2016).
Marketing budget
The marketing budget would be an integral part of the restaurant plan that would
ascertain the business scope and its operations. The budget would be designed after taking
into account the advertising, food, beverages, supplies and miscellaneous.The business would
be initiated with $ 100,000 to $ 1,20,000. The excel software would be used to handle income
and expenses but with time an accounting software would be incorporated into the business
model (Silva & Perera, 2016).
Financing Options– Start-up costs and Annual running costs
The proper management of the financial aspects of a new business has vital
implicationsfor the firm and its existence in the market. The start-up costs of the business
would be quite high since a major chunk of money would be spent on the promotional
activities, hiring of staff, purchasing of necessary supplies from best suppliers, etc.
Since the restaurant would start from a scratch, various financial hurdles would
appear in the path of the business. According to Suli, a significant amount of financial
resource would be used for the purchaseof licenses and permits, insurance expenditure,
remuneration design of the restaurant staff, purchase of kitchen equipment, furniture costs,
and the working capital (Suli, 2016). The annual running cost would also pose challenges at
the initial business stage until the restaurant would create a solid brand image.
Start-up Expenses
Legal requirements $ 10,000
Kitchen equipments $ 20000
Safety equipments $ 15,000
Rent advance $ 20,000

FOOD AND BEVERAGE MANAGEMENT 6
Insurance $ 10,000
Stationery items $ 5,000
Decorative items $ 10,000
Advertising costs $ 10,000
Brochure $ 5,000
Cash required $ 7,000
Others $ 8,000
Total start-up Expenses $ 120000
Annual Cost of Running Restaurant Business
Stationery $40000
Annual treatment of Water and
Equipment $10000
Updating of hazard prevention tools $2000
Advertising and promotion $20000
Annual Rent $80000
Remuneration $60000
Total $222000
Viable financial options
Choosing the right financing options can help the restaurant business to tackle
challenging market conditions and have a sustaining performance.
Owner’s capital –
The restaurant owner could put his personal money into the business if he has the
financial backing. This is considered to be a good option only when there is sufficient
financial resource available to the entrepreneur. This is not very practical since in case the
business fails, the owner would be in a poor financial state (Valta, et al., 2015).
Traditional small business loan –
The acquiring of loan for the new restaurant business would be a smart move. The
money could be used for any activity relating to the business. A strong credit score would
assist the business to acquire the financial support.
Crowd-funding –
This innovative financial option could be used to establish the restaurant business.
This model would use the internet to collect significant amount of finance from a large pool
of people. It would also help in the promotion of the new business.

FOOD AND BEVERAGE MANAGEMENT 7
Service Provision – Food and Beverages
In the initial stage, the food and beverages that would be offered in the restaurant
would be kept simple and light. The items would basically comprise of food items like
sandwiches, fish and chips, cookies and pastries, finger food, candies, and beverages like
coffee, tea, cocktails, etc. The menu has been designed keeping in mind the current ambiance
of the restaurant.
The bright and open environment would be complimented by the light and healthy
food that would be offered in the restaurant. Gradually the menu would expand based on the
feedback of the customers (Duru, Ekwe & Okpe, 2014).
Restaurant Menu
Food
Pric
e Beverages Price
Egg salad xxx Espresso xxx
Simple veg Sandwich xxx Cappuccino xxx
Ham Sandwich xxx Caffè Latte xxx
Plain pork Sandwich xxx Americano xxx
Clam roll xxx Fresh-squeezed orange juice xxx
Sweet potato bites xxx Apple juice xxx
Caprese salad xxx Cranberry juice xxx
Pickle chips xxx Strawberry juice xxx
Gingered nuts xxx Kiwi Strawberry juice xxx
Chocolate Chip Cookies xxx Lemon tea xxx
Ginger Cookies xxx Herbal Tea xxx
Oatmeal Cookies xxx Green Tea xxx
Candies xxx Limeade Punch xxx
Vegan pastries xxx Cherry Cocktail xxx
Fish & Chips xxx Watermelon Cooler xxx
Facilities and Layout Design
The dining facilities of the restaurant would be kept a bit open so that all the
customers would have a sense of privacy. The restaurant layout would include the entrance
area, the dining section, restrooms, and a tiny outdoor coffee section. Fresh plants would be
decorated in front of the restaurant to create soften the hustle and bustle of outside
environment. The other facilities in the restaurant would include free Wifi internet, free

FOOD AND BEVERAGE MANAGEMENT 8
secure parking, etc.The simple restaurant layout would help to highlight the small details of
the restaurant such as paintings, decorative pots, and crafts (de Mattos, Pontes & Marietto,
2016).
A large kitchen would be designed so that the food preparation and serving process
could be effectively carried out. The storage room would be situated right beside the kitchen
for easy access to ingredients.
The restaurant layout diagram has been presented below:
Since it would be a small start up initially, around 8 to 10 sitting arrangements
would be made for the visitors in the inside section. There would be big kitchen section
and adjacent to it a storage space would be set. There would be 3 restrooms. There
would be separate beverage counter where people could stand and enjoy the outside
view. The reception area would be spacious so that the guests could be entertained.
Health and Safety aspects
Significant importance would be given to the health and safety aspects while opening
the restaurant business. As per Davis, et al, the best quality supplies would be procured so
that the customers could enjoy the real worth of their money. The staff members would be
educated on updated kitchen safety awareness so that the hygiene of the food and beverages
would never be compromised (Davis, et al., 2013).

FOOD AND BEVERAGE MANAGEMENT 9
Understanding the hazards is crucial to prevent any occurrence of accidents. The fire
extinguisher equipment would be located near the kitchen so that it could be used in case of
fire. A bell would be located in the dining section so that during emergency situations it could
be used. The restaurant would have two exit points for easy evacuation purpose.
The diagram below shows that the kitchen model would be aligned with the hazard
control model. Any malfunction of the numbered equipments would send a signal to the
reception area so that necessary intervention techniques could be adopted to prevent any
accidental incidents.
The safety area would be directly linked to the alarm model of the restaurant. It would
contain fire extinguishers, masks, first-aid kits, manuals, etc which could be used at the time
of emergency. The kitchen would also be equipped with fire extinguishers to put out fire.

FOOD AND BEVERAGE MANAGEMENT 10
Conclusion
The proper planning of restaurant business is crucial since it has a direct relationship
with its success or failure. All the vital areas relating to the business operations and financial
aspects have been designed after taking into account the current business environment. The
quality of the service, food, and ambiance would play a vital role to create a unique brand
name for the business and it would help to expand its presence in Auckland.
References
Agius, R. (2015). Credit management in the Maltese food and beverage distribution industry:
an analysis (Master's thesis, University of Malta).
Chen, E., Flint, S., Perry, P., Perry, M., & Lau, R. (2015). Implementation of non-regulatory
food safety management schemes in New Zealand: A survey of the food and beverage
industry. Food control, 47, 569-576.
Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage
management. Routledge.
de Mattos, C. E., Pontes, M. D. M., & Marietto, M. L. (2016). Food and beverage
management: indicators for a new field of studies in Brazil. PODIUM: Sport, Leisure
and Tourism Review, 5(2), 99-119.
Domingo, D. A. (2017). student expectations of food and beverage management education.
Duru, A. N., Ekwe, M. C., & Okpe, I. I. (2014). Accounts receivable management and
corporate performance of companies in the food & beverage industry: evidence from
Nigeria. European Journal of Accounting Auditing and Finance Research, 2(10), 34-
47.
Grekova, K., Bremmers, H. J., Trienekens, J. H., Kemp, R. G. M., & Omta, S. W. F. (2014).
Extending environmental management beyond the firm boundaries: An empirical study
of Dutch food and beverage firms. International Journal of Production
Economics, 152, 174-187.

FOOD AND BEVERAGE MANAGEMENT 11
Mo, H. E., & Chen, N. Y. (2016). A Study of Learning Motivation and Hindering of Getting
Licenses for Vocational High School Students of Food and Beverage Management
Department in Taiwan. Applied Science and Management Research, 3(1), 217-224.
National Restaurant Association. (2016). Managefirst+ Exam Prep Access Card: Principles
of Food and Beverage Management with Online Test... Voucher. Prentice Hall.
Silva, A. M. P. K., & Perera, H. A. P. L. (2016). Effect of Working Capital Management on
the Performance of Listed Food Beverage Companies in Sri Lanka.
Suli, X. I. E. (2016). On the Application of Problem Driven Method in the" Food and
Beverage Management" Course. The Guide of Science & Education, 1, 046.
Valta, K., Kosanovic, T., Malamis, D., Moustakas, K., & Loizidou, M. (2015). Overview of
water usage and wastewater management in the food and beverage
industry. Desalination and Water Treatment, 53(12), 3335-3347.