Entrepreneurship: Assessment of Royal Dawat Restaurant Business Plan

This report is an assessment of a business plan for the Royal Dawat Restaurant, an environment-friendly restaurant concept in Oman. It covers various aspects of the business, including the business concept, location, value proposition, target market, market overview, competitor analysis, services, marketing strategies, sales forecasts, financial projections, resource requirements, and risk identification. The report highlights the restaurant's unique features, such as its rooftop facility, green concept, and diverse cuisine offerings. It analyzes the target market, primarily young adults and professionals, and assesses the competitive landscape in Muscat. The report also details the restaurant's operational structure, team management, and supply chain. Furthermore, it presents the core marketing strategy, sales forecast, and entry and growth strategies. The financial projections, including profit and breakeven calculations, are analyzed to assess the financial viability of the venture. Finally, the report identifies the resources needed for the business and potential risks and their mitigation strategies.

Running head: ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Assessment 2: Assessment of Business Plan
Entrepreneurship and Small Business Management
Student’s name:
Name of the business:
Author’s note:

1ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Table of Contents
1. The concept of the business.........................................................................................................2
2. Location and ownership...............................................................................................................2
3. The originality of value proposition............................................................................................3
4. Target market segment................................................................................................................4
5. Market overview and competitor analysis...................................................................................5
5.1 Market overview....................................................................................................................5
5.2 Competitor analysis................................................................................................................6
6. Services........................................................................................................................................7
6.1 Daily operations.....................................................................................................................7
6.2 Business structure..................................................................................................................7
6.3 Team management and suppliers...........................................................................................8
7. Originality of core marketing and entry and growth strategies...................................................9
7.1 Core marketing strategy.........................................................................................................9
7.2 Sales forecast........................................................................................................................12
7.3 Entry and growth strategy in market....................................................................................12
8. Comprehensiveness and accuracy of financial projections.......................................................13
8.1 Profit projection...................................................................................................................13
8.2 Breakeven calculation..........................................................................................................15

2ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
9. Comprehensive identification of resources required and financing..........................................17
9.1 Identification of resources....................................................................................................17
9.2 Financing..............................................................................................................................17
10. Identification of material risks and their mitigation................................................................21
Reference List................................................................................................................................22
Appendices....................................................................................................................................24

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1. The concept of the business
Environment-friendly green restaurant is a new concept in Oman. This restaurant will
have rooftop facility along with outside seating availability closed to nature. The restaurant will
offer global cuisines like Chinese, Indian, Continental and local Oman dishes. The speciality of
the restaurant lies on the rooftop facility as this restaurant will be on the roof of the 8th storied
building. In recent time, the idea of ‘green living' is coming to trend; the restaurant will have
commercial interior and exterior to the concept of ‘going back to nature'. Sustainable and very
creative materials will be used to decorate the interior and exterior. The floors are expected to
make with woody plants and tiles. This restaurant will have emission control system at kitchen
and the waste management system so that it does not harm the nature. The venture will provide
online order and ‘take away' option. The name of the restaurant will be ‘Royal Dawat
Restaurant’.
Business objectives:
 To gain profit from the second year of operation
 To create a strong customer base in Muscat area
 To establish a 5% market share at the end of 2020
 To make a strong online presence on social networking sites
2. Location and ownership
The new venture, Royal Dawat Restaurant will operate a 2.400 square foot area within a
walking distance from Majan College in Muscat. The location of the restaurant is in Darsait and
many young individuals from various multi-ethnic academic communities live in this place.

4ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Therefore, the location of this place will be suitable for a business to start. Darsait is a residential
locality in Muscat and it is a beautiful area in Muscat. In addition, ownership of the business will
be the sole proprietorship. In case of sole proprietorship, the owner will run and own the business
in which there will be no difference between the legal entity of the business and the owner.
3. The originality of value proposition
As stated by Dietrich et al. (2016), the value proposition is the clear statement that
describes how the services or the products can solve the needs of the customers or to improve the
situation and deliver the specific benefits. In Darsait, there are many restaurants those offer an
excellent menu to the customers. The customers can expect to have the best cuisine with a rich
taste. The customers will get fresh Chinese food and Indian dishes. In Oman, Chinese food and
Indian dishes in rooftop restaurant are scarce; therefore, Royal Dawat Restaurant will offer a new
experience to the customers. In addition, environment-friendly green restaurant concept is new in
Oman market; therefore, the approach towards social-entrepreneurship will attract the customers.
Moreover, the employees will be trained to provide the customer satisfaction. The guests of the
restaurant can enjoy the rooftop view with scenic beauty. There will be two sections in the
restaurant, one section will be rooftop with an open roof and another section will be covered with
a glass ceiling. The restaurant will provide quality food and it will follow the Food Safety
standard of Oman.

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Figure 1: Logo designed for new restaurant
(Source: Self-developed)
4. Target market segment
As stated by Armstrong et al. (2015), market segmentation can be defined as the process
of segregating market of potential customers into different groups based on different
characteristics. There are four market segments; geographical, demographic, behavioural and
psychographic. Geographic segmentation targets the customers with the region, urban and rural.
In addition, demographic segmentation is about targeting the customers based on gender, age,
socio-economic group and occupation. Behavioural segmentation is about targeting the
customers based on the rate of usage, benefits sought, loyalty status and readiness to purchase.
Psychographic segmentation is about targeting the customers’ personality, lifestyle, attitudes and
class.
Primary target market: This Royal Dawat Restaurant will primarily target the
demographic market segment; the young generation aged between 18 and 28. Majan College is

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near to the restaurant and the management is thinking to have large numbers of customers from
this college. The young generation will like the scenic beauty and the ambience of the rooftop.
This young generation must belong from the upper middle-class society. These target customers
are aware of the advantages of healthy diets and pay more attention to nutritional facts. The
young generations are the ones who care more about appearance and the pricing.
Secondary target market: Royal Dawat Restaurant will target the behavioural segment.
In this segment, the organisation will attract the professionals who can do their informal
meetings and client meetings in this restaurant. This restaurant will provide excellent ambience.
The professionals find the place to talk in serene place; they want to have light food and Wi-Fi.
This target market is ready to make a purchase from this restaurant.
5. Market overview and competitor analysis
5.1 Market overview
Oman is the Middle Eastern nation and this country has about more than 3 million
populations. Muscat is the tourist destination for travellers and there are many hotels and
restaurants in Muscat. However, expats and Omanis complaint that people do not have much
restaurant choices. In 2013, McDonald's first opened its outlet in Salah. After that, Yum and
Pizza Hut came to Oman. Omanis like to eat outside as the shopping malls are not just for the
marketing purposes, the people like to eat from the small restaurants and food outlets. Political
condition is stable now for Oman and the people have disposable income in hands. GDP rank is
64th and in Purchasing Power Parity (PPP); GDP rank will touch 74th. GDP growth of Oman is
2.9% and the GDP per capita income is $43,800 (Aaronallen.com 2018). Labour force of Oman
was 968,000 in 2017 (Al-Mawali et al. 2017). Therefore, the economy is getting stronger with

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time and Gulf Cooperation Council is expected 7.1% annual increase of restaurant industry in
Oman (Hakro and Omezzine 2017). The restaurant industry in Oman is expected to reach $197
billion by the end of 2021. Food and beverage segment is characterised by the international
players and they import the food through distributors. Omanis started believing in the concept of
dining-out and among the young generation, the habit of using online food delivery has been
increased. This rising trend is booming among the population and it will influx with exponential
rise of the eating out.
5.2 Competitor analysis
Muscat is burgeoning the dining scene and Muscat’s restaurant industry is one of fastest
growing sectors in Oman. In Muscat, the recent trend is themed dining. This new venture will be
opening at Darsait.
Restaurant names Target segment Strengths USP
Park Inn Young customers,
leisure travellers
High brand, good
employee retention
Grill and pool
Laval Restaurant Family customers
Young couples
Technical innovation,
Brand presence
Global cuisine
Rooftop bar
Centara Muscat Upscale customers
Young professionals
Open for long hours
In the industry for
long
Excellent ambience
Rooftop pool and
polished lodging
Table 1: Competitors analysis

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(Source: Self-developed)
6. Services
6.1 Daily operations
This new business venture will open for 7 days in week for lunch and dinner.
Monday-Friday (From 11 am to 11 pm)
Saturday and Sunday (From 10 am to 12 am)
6.2 Business structure
The new business venture will be maintained by the entrepreneurs. The owner of the
business will be on the top and there will be two senior managers of the restaurant. One of the
senior managers will control the staffs, security guard and waiters and another senior manager
will control the kitchen staffs and inventory as well as supply chain management. The business
structure will follow the horizontal type in which the communication flow will be from top to
bottom. Horizontal business structure gives the benefits of fewer levels of management between
the employees, executives and managers (Anderson and He 2015).

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Figure 2: Proposed business structure
(Source: Self-developed)
6.3 Team management and suppliers
The managers of the restaurant will manage the team within the organisation. There will be total
15 staffs at the initial stages and 3 kitchen staffs. In addition, the restaurant will have the
provision of 45 seating capabilities in which 30 seats will be kept at rooftop area and 15 seats
will be kept inside of the restaurant. The managers will provide training to the waiters and staffs
of the restaurant so that they can work perfectly and the guests will have the best satisfaction in
terms of behaviour and the taste of cuisine. The staffs will have left on roaster basis and the
senior manager will make the weekly roaster. In one shift, there will be 10 staffs to serve the
customers.

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Royal Dawat Restaurant will take the supply of raw materials from the local suppliers.
The suppliers will deliver the raw materials in every second day and the raw materials will be
managed through inventory. Royal Dawat Restaurant will take the supply of flour from Oman
Flour Mills and vegetables will be taken from the local vegetable market. The equipment of new
restaurant will be purchased from the Middle East and South Asian countries.
7. The originality of core marketing and entry and growth strategies
7.1 Core marketing strategy
Product: This new restaurant will provide rooftop facility and there will be a touch of
green on every side of the restaurant. Moreover, the globally acclaimed chefs will cook the food
of the restaurant. Mainly, Indian, Chinese, Continental and local Oman dishes will be available
in the restaurant. The restaurant will provide food dishes in low light ambience during evening
and ice-cream will also be available for the guests. The rough menu of the restaurant will be like:
Appetizer:
 Beef egg roll
 Vegetarian egg roll
 Special Green Chinese Roll
 Shrimp salad roll
 Shrimp toast
 Fried jumbo shrimp
 Chicken Rangoon
 Fried chicken wings
 Barbecue ribs

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 Crispy fried noodles
 Fried shrimp balls
Main dishes
 Crispy shredded beef in chilli sauce
 Beef with green peppers
 Sweet and sour prawns
 King prawn fried rice
 Beef in oyster sauce
 Chicken chilli with garlic
 Beef with broccoli
 Chow Mein and Crispy Skin Duck
 Tsao Chicken
 Fried rice
 Kung Pao Chicken
Local Omani dishes
 Shuwa
 Dates
 Kahwa
 Meshkak
 Halwa
 Harees
 Mashuai