BM564 Enterprise & Entrepreneurship: Robo Restaurant Business Plan

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Added on  2023/01/07

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AI Summary
This report presents a detailed business plan for a Robo Restaurant, focusing on its proposed future business, which offers innovative food and beverage services using automated processes and robotic waiters. The plan includes a comprehensive analysis of the target customers, primarily B2C in the UK market, and their specific needs. It identifies competitors like Hilton, KFC, and McDonald's, highlighting the Robo Restaurant's competitive advantages through technology and unique offerings. The report also covers a skills analysis of the owner, financial projections including cash flow, breakeven analysis, and profit and loss accounts, alongside a breakdown of startup costs. It outlines funding sources like bank loans and crowd funding, emphasizing effective control mechanisms and the restaurant's vision of enhancing customer experience and environmental sustainability. The conclusion summarizes the key elements of the business plan, emphasizing the importance of a comprehensive understanding of the market, customers, and financial aspects for successful business execution.
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CW2:Growth Sustainable Business Plan
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Proposed Future Business............................................................................................................1
Customers....................................................................................................................................2
Competitors..................................................................................................................................3
Skills analysis..............................................................................................................................3
Financial details...........................................................................................................................3
Sources of funding.......................................................................................................................7
Crowd funding.............................................................................................................................7
Effective control..........................................................................................................................8
Vision for your Business Idea......................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
There are different elements that are included in development of business plan as well as
executing business activities in more effective and efficient manner. It is very important for
organisation to analyse and evaluate different aspects that needs to be consider for correctly carry
out business practices (McKeever, 2016). This report is based in new restaurant business that is
Robo Restaurant. This restaurant is located in UK market area and in this organisation all
function are performed through high technology and automated process. This restaurant is
providing different types of products and services to its customers. In this report future business
plan is developed that is significant for successfully performing task. It includes information
about customer, competitors, as well as skills has been analysed. In this financial details along
with different sources of funding has been identified. Apart from this technique for controlling
business and vision of business idea is determined.
MAIN BODY
Proposed Future Business
Robo Restaurant is high quality business that is offering different types of food and drink
products to its customer. This company is dealing in food and restaurant sector as well as
developing variety of food products and beverages in order to meet with the needs of customers
(McKenzie and Sansone, 2017). Different types of food and drink offering of respective
restaurant is mention below –
Menu
Starters
Hot and chilled pea soup
Roasted beetroot salad
Avocado Caesar salad
Classic steak tartare
Mains
Grilled calves liver, pearl onions, bacon and whipped mash
Five seed chicken Schnitzel
The Ivy Hamburger
Deep fried haddock & chips
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Chicken Masala
Dessert menu
Rick dark chocolate fondant
Knickerbockers glory
Selection of cheeses
Drinks
Wine
Milk shakes
Juices
Soft drinks
This company is using innovative approaches and techniques for conducting business activities.
Respective restaurant is using robots as a waiters as well as for performing different other
activities of organisation (Burns and Dewhurst, 2016). This company is working through
automated process. Robo restaurant has consider copyright for its intellectual property and e-
waiters.
Customers
Targeted customers of respective company the local people who live in UK market area
as well as interested in trying new and different types of restaurant in order to enhance their
experience. Business to customers is the targeted customer segment of Robo restaurants. This
company has set moderate prices of its products and services so that large number of people can
purchase its products. Customers to fall under average and high income group can buy products
and services of this company (Watson, McGowan and Cunningham, 2018). The USP of Robo
restaurant products is that it is developed by considering the taste of UK market customer base.
In this restaurant robotic waiters will be serving food and high technology in organisation will
lead to enhance the overall experience of customers. respective restaurant is successfully able to
meet with the food and drink needs of customer as well as provide valuable experience. As per
the research it has been identified that there are less restaurant which are similar to Robo
restaurant. This will help company to attract more customer and provide them new experience.
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Competitors
In UK market area there are number of companies which are providing food and drink
services to customers. It is essential for respective organisation to analyse its competitors as it
will help in developing better and effective strategies. Hilton, Holiday In, KFC, McDonalds and
many other restaurants are the competitors of Robo restaurant. These company has larger market
share as they are conducting business practices from many years. Robo restaurant has
comparatively has market area as it is new business (Gabler and et.al., 2017). This company is
considering the need and wants of customers while providing its products and services. This will
help in developing strong relationship with customers and lead to increase in sales of its product.
This restaurant has used high technology and automated process for that is significant in gaining
competitive advantage over other rival companies.
Skills analysis
There are different skills and capabilities that is required in the owner in order to
successfully perform organisation task as well as taking business idea forwards. Robo restaurant
owner have different skills which is significant for enhancing the performance of business as
well as accomplishing desired goals. Decision making, technical knowledge and analytical skills
of respective company owner is very strong. These skills has in taking better and effective
decision that will lead to growth of business This organisation is based on high technology and
robots so technical knowledge and skills are significant for enhancing business performance. It is
crucial to develop management skills and communication capabilities as this will lead to have
impact on performance of business task. Due to lack of these skills Robo business is not able to
effectively manage different task and lack of communication skill will lead to increase
confusion.
Financial details
Projected cash flow for two years:
Particulars Year 1 (£) Year 2 (£)
Cash receipts:
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Sales revenues (@ price of 50 pounds) 50000 95000
Business loan 40000 -
Income from other sources 1500 5000
Opening balance 25000 -
Total cash receipts 116500 100000
Cash payments:
Cash purchase 8000 9500
Variable expenses (A)
Direct material 15000 11500
Wages 8000 10000
Direct labor 5000 4500
Commissions 3000 2500
Fixed expenses (B)
Interest on loan 10000 10000
Insurance expense 15000 15000
Rental expense 25000 25000
Utilization costs 20000 20000
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Total cash payment (A+B) 101000 98500
Net surplus/Deficit 15500 1500
Calculation of breakeven point:
Data gathered from above table:
Particulars Year one(£) Year two(£)
Variable cost 31000 28500
Fixed cost 70000 70000
Selling price 50 50
Sales revenue 50000 95000
BEP in units: Fixed cost/contribution
Contribution: Sales-variable expenses
Particulars Year one(£) Year two(£)
Sales 50000 95000
Variable expense 31000 28500
Contribution 19000 66500
Hence, BEP in units will be as:
Particulars Year one Year two
Fixed cost 70000 70000
Contribution 19000 66500
BEP in units 3.68 or 4 Units 1.5 units
BEP in revenues: Fixed cost/PV ratio
PV ratio: Contribution/sales*100
Particulars Year one Year two
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Contribution 19000 66500
Sales 50000 95000
PV ratio 38% 70%
Hence,
BEP in revenues:
Particulars Year one Year two
Fixed cost 70000 70000
PV ratio 38% 70%
BEP in revenues 184210 Pounds 100000 Pounds
Projected profit and loss account:
Particulars Year one(£) Year two(£)
Sales revenue 50000 95000
Less: Cost of sales
Variable manufacturing overheads 28000 26000
Fixed manufacturing cost - -
Closing stock - -
Opening stock - -
Total cost of sales 28000 26000
Gross profit 32000 69000
Less: Fixed non-manufacturing cost 70000 70000
Less: Variable non-manufacturing cost 3000 2500
Net loss -41000 -3500
Breakdown of startup cost:
Particulars Unit cost(£) Total cost(£)
Material cost 60000
IT software 15000
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Robots 25000
Food material 20000
Employees expenses: 23000
Training of employees 5000
Salary to employees 15000
Hiring cost 3000
Maintenance expenses: 500
Repairing cost 250
Maintenance cost 250
Total cost 63500
Sources of funding
It is crucial for respective restaurant to use effective and efficient source of funds in order
to perform business task effectively. There are different sources through which Robo company
can collect funds such as band loan and crowd funding.
Band loan – This refers to the procedure of collecting funds and financial resources form banks
in order to meet with the business needs. Through this source company will be able to gain
money for specific time frame at certain interest rate.
Crowd funding
This is a practice of collecting money from large number of people. In this source many
people will contribute some amount of money.
For respective restaurant company band loan will be most effective and efficient sources of
funding that is significant for meeting with the objective of business and successfully performing
task.
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Effective control
It is crucial for company to control different practices and task of organisation that will
lead to successfully attain business goals. Robo restaurant is based on functional business type of
organisation. In this different functional department has been created that will includes
employees with similar type of job role. Through this respective company will be able to easily
manage and control business operations (Galai, Hillel and Wiener, 2016). Management
information system can be describe as the system that is used by company in order to manage
different activities of organisation. Through this techniques respective company is able to store
and collect information that can be used later. This is significant in keeping the feedback of
customers and other information that will lead to help in better decision making process.
Vision for your Business Idea
The vision of Robo restaurant business idea includes enhancing customer experience,
sustainability of environment as well as growth of organisation. Vision statement of respective
restaurant is mention below –
“To provide enhance business activities by providing valuable products and services to
customers by considering sustainability of environment with the motive of enhancing their visit
experience in the restaurant.”
CONCLUSION
From the above report it can be concluded that business consist of different factors and
elements which have significant impact on business. It is crucial for company to have proper
plan and understanding about offering, completion, targeted customers as well as own skill in
order to develop effective business plan.
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REFERENCES
Books and Journals
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D. and Sansone, D., 2017. Man vs. machine in predicting successful
entrepreneurs: evidence from a business plan competition in Nigeria. The World Bank.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business
Plan Competition as a methodology for effective nascent entrepreneurial learning. International
Journal of Entrepreneurial Behavior & Research.
Gabler, C.B. and et.al., 2017. Developing an environmentally sustainable business plan:
An international B2B case study. Corporate Social Responsibility and Environmental
Management, 24(4), pp.261-272.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
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