Business Plan for an Organic Food Restaurant: Analysis and Strategy

This report presents a comprehensive business plan for an organic food restaurant, focusing on market analysis, customer identification, and competitive strategies. It outlines the proposed business, emphasizing the growing demand for organic products and services. The report details customer profiles, identifies key competitors like Cafe Coffee Day and McDonald's, and analyzes the necessary skills for successful operation, including staff management and food security standards. It also provides a financial analysis, including start-up costs, profitability projections, and break-even points, along with potential sources of funding such as commercial loans and securities. The importance of a management information system for operational efficiency and strategic decision-making is also highlighted. The report concludes by summarizing the key elements of the business plan and its potential for success.

Enterprise and
Entrepreneurship

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Proposed future business........................................................................................................3
Customers...............................................................................................................................3
Competitors............................................................................................................................3
Skill analysis..........................................................................................................................4
Financial requirements...........................................................................................................4
Sources of funding.................................................................................................................5
Management information system...........................................................................................6
CONCLUSION..........................................................................................................................6

INTRODUCTION
A business plan can be defined as a set of activities which has to be done by the
organisation in order to improve its functions as well as achieve the goals and objectives of a
particular business (Hjorth and Holt, 2016). In context of the present report the chosen
business is an innovative idea in a restaurant which is selling the organic products within the
market. In context of the present report it consists discussion about business plan which
include for a future business for stop it also include identification of customers. There is
discussion about the competitive skill analysis as well as profit and loss account with cash
flow (Durkin and Gunn, 2016).
MAIN BODY
Proposed future business
The current business is the restaurant which is based on organic food products and
services. The major food products and services which are provided by this include organic
foods where number of dishes will be provided in accordance with the requirement of
individuals which will consume the production services in accordance with the current
restaurant functions.in context of the present scenario of business environment it is identified
that the demand of organic food products is continuously increasing. But considering this
demand it is identified that restaurant can be opened which will be based on organic food and
services (Burnett and Danson, 2017). This is an innovative idea as it consist discussion about
the innovative products and services where the enterprises will sell these products to the
direct consumer in the form of restaurant services.
Customers
In context of this business the target customer of business are all those individuals
with who are conscious about their diet as well as healthy working life. It is identified that in
the current business environment as well as natural environment there are a number of
individuals who are focusing on their health requirements where the used to consume organic
products and services in order to satisfy their needs and requirement of body as well as being
fit. The current mode of business is to business-to-consumer. A business to consumer mode
can be defined as that channel of business where organisation used to sell its product to the

customer who will consume the products and services for self-satisfaction (Jones, Penaluna
and Penaluna, 2019).
In order to target the customer organisation will use appropriate products and services
as well as different kind of promotional activities which help in promoting the products and
services and performing the function according to the requirements. In context of the current
business environment the unique selling price of this restaurant is its organic products. Here
organisation will you choose to provide that kind of organic products which are full of
immunity booster spices as well as ingredients which help in boosting the immunity of
different individual in order to fight with the current pandemic of covid-19.
Competitors
In context of the present business environment it is identified that there are a number
of competitors to the products and services offered by the organisation for staff identified that
are directly related to the organisation of the organisation are cafe coffee Day, KFC,
McDonald and various other which are dealing with another business in UK full stock in
context of the current business environment it is identified that these competitors are covering
more than 60% of the market where the organic restaurant will be operated. In order to
manage the products and services organisation required to formulate an effective plan where
attractive schemes related to sales promotion will be implemented within the market fall stop
these schemes will help in attracting the customer toward the organic products and services
offered by other as strong as well as help them in retaining for longer period of time. This is
also identified that it helps in management of different individuals as well as gaining
advantage over the competition within the market (Lyne, Ngin,and Santoyo-Rio, E., 2018).
Skill analysis
It is identified that there are a number of skills which are required in order to carry
forward the idea of organic restaurant. This is because there are a number of functions which
has to be performed in order to improve the functioning as well as the competitors within the
market by the use of product and some of these skills which are required a mentioned below:
Hiring, training and supervising staff: this is a basic skill which is required in order
to operate this organic restaurant where hiring the talented employees who can perform the
functions within the restaurant as well as providing them training about use of organic
product is a basic skin. Supervising them in order to coordinating their efforts and achieving

the objective is also included under the basic skill which is required to perform operations of
restaurant (Maas and Jones, 2017).
Management of food security standards: this is a most important skill which has to
be performed under this restaurant idea where there are a number of food security standards
which should be followed by the organisation in order to maintain its function according to
the legal requirements. In this it is liability of management to manage the standards and
perform the function in an appropriate way so that standard requirements can be meet.
Meeting revenue objectives: one more scale which has to be developed in order to
run this organic restaurant is related to meeting the revenue objectives. This is because no
business can we operate without revenues within the organisation. In context to this number
of methods has to be developed so that form can perform its function and achieve better
results by managing these functions according to the requirements. This help the manager in
using appropriate functions and achieving results in a timely manner.
Financial requirements
Start-up cost of business- it is basically that cost which involves the initial fuel for
starting up a business and its operations. In the given business, starting cost is broken up in
following segments:
 Equipment’s = £ 2000.
 Furniture = £ 1500.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per unit.
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per unit.
On the basis of analysis of market trends and other factors that may impact the sales
(Burns, 2016). It is forecasted that restaurant will be able to generate a sales equivalent to 200
units in a month. On the basis of this forecasting following is a cost statement:
Particulars Calculation Amount

Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900
From the above table, following is profitability and break-even analysis,
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= from the above calculation, it can be stated that, company is
earning profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
Sources of funding
In context of sources of funding organisation will use different kind of sources which
are helpful to the organisation in improving its function as well as achieving the objectives of
restaurant.
Commercial loan: Commercial loan is that part of sources which can be used by the
organisation in order to fund its operations. Under the commercial loan organisation will get
loan from the commercial banks in order to improve its functioning. This is related to
generating the finance by providing some mortgage to the banks in order to acquire loan full
stop this is a cheaper source of funding which can be used by the restaurant in order to fund
its operations (Maas and Jones, 2017).
Securities: Securities also act as a source of funding where organisation can issue
shares and debentures to the local individuals. This is helpful to the organisation in acquiring

a large number of capitals from the market and using it in order to finance its operations.
Here organisation can use to issue shares or debentures which depend on the organisational
willingness in order to improve its functioning and control within the organization (Bridge,
2017).
Management information system
Management information system can be defined as a system which is used by the
organisation in order to managing the functions by the use of information technology. In
context of the current business there is also use of appropriate management information
system in order to maintain the functions as well as implement strategies according to the
requirements. This management information system will help the organisation in performing
its function as well as competing with its competitor with effective use of technology and
achieving the objectives in a timely manner (Hatt, 2018).
CONCLUSION
It can be concluded from the above mentioned information that there are various
factors which can be used by the organisation to perform its functions. Business idea of
organic restaurant is useful to achieve the objectives and perform the function according to
the requirements. This includes appropriate system with support organisational functioning in
achieving the objectives by managing different functions.

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