Accounting for Managers: '7 Wonders of Taste' Restaurant Business Plan

This document presents a business plan for a family restaurant named '7 Wonders of Taste,' located in Benbrook, Texas. The restaurant aims to offer a variety of foods, including seven special tastes from different countries, within a peaceful and family-friendly environment. The plan includes a market analysis, identifying competitors such as Cracker Barrel, Hedarys Restaurant, and Barbeque Ben’s, and targets families and the business/residential community in the area. The pricing strategy focuses on average pricing for regular items and slightly higher prices for the specialty dishes. Management controls include weekly inventory checks, a debtors and creditors policy, cash control measures, and meticulous recording of invoices. The total targeted cost for the business is $363,000, with $175,000 self-contributed and the remaining amount to be borrowed from a bank.

ACCOUNTING FOR MANAGERS

INTRODUCING THE BUSINESS, MARKET AND BUSINESS ASSUMPTION.
A business concept is a concept about converting a person's imagination into reality (Peterson &
Fabozzi, 2012). It includes a plan about a business venture self - owned by the person dreaming
about it (Dayananda, Irons, Harrison, Herbohn, & Rowland, 2008).. A concept plan is summary
of one's business plan that includes the structure of it, detailed in nature and includes essential
information’s (Adelaja, 2015)
My business dream relates to opening of a family restaurant named as '7 Wonders of Taste'.
According to the reports, people eat outside more and this has been observed on a wide number
of occasions. The reports have observed an important growth in this sector of restaurants,
bakeries or cafes. '7 Wonders of Taste' has been planned to be opened in the Benbrook area of
Texas City between the busy lanes of Camp Bowie and Cherry Street. As the name suggests, the
restaurant is a set up of attracting family hangouts while offering a variety of foods like bagel
and lox, meat, the hamburger, Clam Chowder, drop biscuits with sausage gravy, etc. To justify
the name more appropriately, it aims to provide 7 special tastes of different countries named as
Chicken rice of Singapore, Tacos of Mexico, Masala Dosa of India, Maple Syrup of Canada,
Fish 'n' Chips of UK, Parma Ham of Italy and Pho of Vietnam. The ambience has been planned
with dimmed lights and soft music to make a peaceful environment.
Being an experienced worker in the catering business and an author of home style food blog, a
customer base has already been developed signifying a wide number of contacts and therefore,
less pressure about marketing of the new outlet. The 7 tastes chosen by us is basically out of our
experience of serving the US people and we can expect a good demand of it in the market. We
aim to not follow a trend of garnishing the food to such an extent that the original taste of it gets
disappeared and provide home style foods
.

COMPETITORS
It is important to look at the competitors present in the same field in order to compete with them
well (Rivenbark, Vogt, & Marlowe, 2009). It also makes the new business set up aware f the
competition that is waiting ahead (Fridson & Alvarez, 2012).
The US Industry consists of 48000 restaurants with revenues exceeding $400 billions. The
competitors of our business can be :
 Cracker Barrel: this restaurant offers comfort food and therefore attracts the similar
market along with the tourism crowd. Even though it doesn't exist within the market
targeted, it still turns out to be a competitor.
 Hedarys Restaurant: this restaurant provides full service and is a sole proprietorship and
approximately generates $1.7millions every year. Although the prices are higher than our
restaurant prices, this restaurant has a good customer base.
 Barbeque Ben’s: This restaurant has been serving the customers at a single location since
1978 and targets the similar market In spite of the fact that it offers mostly the Barbeque
food items .
TARGET CUSTOMERS
A business has to know its target customers so that they can advertise and provide them
satisfactory service accordingly (Seitz & Ellison, 2009). Instilling our family morals and values,
our customers as well as the staff will be treated exactly the way we wanted to be treated. We
aim to provide a friendly service to our customers, making them comfortable and therefore,
leaving them satisfied and creating an urge in them to come back again.
The most important reason for selecting this business is its location. The Benbrook area of Texas
is restricted to limited family restaurants as it comprises more of fast food shops. Also, we have
seen a craze about those 7 tastes selected among the US people. The restaurant will be more of
'going home' theme where the families, already being tired after a long day work, would be
encouraged to stop in for having peaceful home feels food without being charged too high. Also,
the busy lane of Cheery Street and Camp Bowie develops an appeal to both the business and
residential community. Therefore, considering the amount of crowd the area experiences every

day, the estimated sale targets of 1700 customers per week contributing around $20,000 or $
1.028,000 yearly.
PRICING STRATEGY
Cost accounting is an important factor of books of accounts. The profitability of individual food
items will determine the cost of several other items on the menu (Bierman & Smidt, 2010). The
average pricing of the food will be followed and a fairly high price will be charged for the 7
different items we are aiming to provide (Menifield, 2014). The other advantages can be taken
like credit terms with the suppliers, updating the menu with seasonal food items, etc. We aim to
prepare a weekly prime cost report where prime cost is estimated at 60-65% and will analyze it
at the weekly end so as to establish a control over the costs and operations of the business. We
aim to set prices not too high that limits our customers and not too low that that will leave us
with unsatisfactory profits
MANAGEMENT CONTROLS
The targeted cost of the business plan is $363,000 out of which $175,000 is self contributed
through a lottery that I won some months back. The remaining amount would be borrowed from
a proposed bank for a term of 3 years
.The restaurant is aimed at practicing sound systems to establish a strong control over important
factors as enumerated below
 Inventory: a weekly inventory check will be conducted to ascertain the valuation to be
used while calculating profit/losses. Daily inventory check will also be conducted for
specific items. And such conduct will be compared to the budget weekly to determine
whether it has been properly accounted for. It will also maintain a history of food items to
differentiate among the frequently ordered and not frequently ordered ingredients.
 Debtors & Creditors policy: Initially, the company wouldn't be in a position to allow
credit terms to its Debtors as a start up business strives to settle during its introduction
period. However, being a person of this field since last ten years, a friendly relation has

been created with the creditors and therefore, a credit term period can be allowed to us.
But, the policy of the restaurant states to make the payment not later than 4 months.
 Cash Control: Sales and receipts recorded electronically by the system will be cross
checked with the bank balances and cash deposited on a daily basis. Shortage in amounts
will be tolerated up to $5.00/day. Monthly totals will br compared to projected profit &
loss account for accurate maintenance of financial books.
Recording Of Invoices: a book keeper will be appointed to keep s record of invoices and credits
made daily. Other details such as instant cash payments, credit purchases, cash & cheque receipts
will be prepared along with it. Disbursements will be observed keenly to establish a strict control
over procedures and plans.

REFERENCES:
Adelaja, T. (2015). Capital Budgeting: Investment Appraisal Techniques Under Certainty.
Chicago: CreateSpace Independent Publishing Platform .
Bierman, H., & Smidt, S. (2010). The Capital Budgeting Decision. Boston: Routledge.
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