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

3ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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.

5ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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

6ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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

7ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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

8ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
(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).

9ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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.

10ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
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

11ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
 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

12ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
 Omani kebab
Price: The restaurant will take the low pricing strategy as this will be a completely new
venture for them. At first, the management will keep the price low so that the target customers
can avail the food. Low prices strategy will provide a competitive advantage to the organisation
and the target customers will be attracted towards the organisation. The price of the restaurant
will provide higher profitability as competitive pricing will help to sell more products. The low
price will help to increase market share as lower prices will draw more customers. Low pricing
strategy will bring word-of-mouth publicity and the organisation will have capital growth.
Place: Royal Dawat Restaurant will start its journey in Darsait, in Muscat. The place will
be appropriate for the new restaurant as Majan College will give sufficient young customers. The
young generation will be attracted towards the rooftop feature and the lower price will give extra
value. Royal Dawat Restaurant will also provide service of online order and the delivery persons
will be available for the organisation. In addition, this new restaurant will take the supply from
the simple distribution channel. Fewer vehicles will be used in the supply of the raw materials so
that the atmosphere gets less emission.
Promotion: The restaurant will provide an amazing menu to the customers with right pricing. In
order to increase brand awareness; the management of the organisation will start with Out-of-
home advertising. The hoarding and billboards will be used as part of the promotional campaign.
In addition, the organisation will use the promotional campaign in front of Majan College so that
the students get to know about the new venture. In addition, Royal Dawat Restaurant will also
start the social media campaign and they have to open the official social media pages on
Facebook, Twitter and Instagram. The management can offer discounts for the early birds. The

13ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
new restaurant can offer the ‘happy hours’ on weekends and the customers will visit the stores
often.
7.2 Sales forecast
The owner will calculate the sales forecast for first three months.
Unit Sales January (2020) February (2020) March (2020)
Lunch dishes (Meal) 320 380 420
Appetiser 340 500 670
Ice cream 510 550 600
Soft drinks 290 230 340
Unit Prices
Lunch dishes (Meal) OR 10 OR 10 OR 10
Appetiser OR 08 OR 08 OR 08
Ice cream OR 03 OR 03 OR 03
Soft drinks OR 02 OR 02 OR 02
Total sales
expectation
OR 8010 OR 9190 OR 11860
Table 2: Sales Forecast of first three months
(Source: Self-developed)
7.3 Entry and growth strategy in the market
Entry strategy of the organisation will be product development as product development
will provide a framework for making new products or develop the performance, quality of the
existing products and the cost of the products. The new venture will get the help of achieving the

14ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
business objective through the selling of the more to existing customers. This entry strategy will
help the organisation to win the business over the competitors. Royal Dawat Restaurant will take
the market product development strategy initially. The new restaurant will offer Indian, Chinese,
Continental and local Omani dishes. The global cuisine is rare in Oman and the customers will
get attracted through this. The product development strategy will be helpful for the organisation
as it makes the food dishes different from other restaurants.
The growth strategy of the organisation will be cost leadership as new venture will give food
dishes at low cost. Low-cost leadership will help the organisation to have a large customer base.
The new business wants to have a large number of customers and large market share of the
business. The growth of the business can be gained through the low-cost leadership as the
business can gain higher profit margin. The organisation can have increased market share as the
demand of the customers will increase through this. In addition, the management has already
decided to take the strategy of diversification of the business when they offer social
responsibility. The whole business concept is environment-friendly and it will not harm the
society. The new business can gain sustainability through low-cost leadership and during the
tough economic condition and rough business position; the organisation can gain the provide
price potential through low pricing strategy. A new business can get the major benefit of more
capital resources through fund growth or further investment.
8. Comprehensiveness and accuracy of financial projections
8.1 Profit Projection
Year 1

15ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
(2020)
Gross revenue OR 80,000
Cost of goods sold OR 0
Gross margin OR 80,000
Other revenue [source] OR 0
Interest income OR 0
Total revenue OR 80,000
Sales and marketing OR 67,250
Payroll and payroll taxes OR 50,000
Depreciation OR 57,040
Maintenance, repair, and overhaul OR 0
Total operating expenses OR 174,290
(OR
94,290)
Interest expense on long-term debt OR 0
(OR
94,290)

16ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Loss (gain) on the sale of assets OR 0
Other unusual expenses (income) OR 0
(OR
94,290)
30% OR 0
(OR
94,290)
8.2 Breakeven calculation
Fixed
Expenses
Fixed Expenses
Buildings / Real Estate
OR
87,000
Leasehold Improvements 110,000
Capital Equipment 88,200
Location / Admin Expenses

17ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
4,800
Opening Inventory -
Advertising / Promo Expenses 67,250
Other Expenses 50,000
Total Fixed Expenses
OR
407,250
Variable
Expenses
Inventory or Materials 0.0
Direct labour (includes payroll
taxes)
0.0
Other expenses 0.0
Other expenses 0.0
Salaries (includes payroll taxes) 0.0
Supplies 0.0
Total Variable Expenses 0%
Breakeven Sales level = 407250

18ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
9. Comprehensive identification of resources required and financing
9.1 Identification of resources
Tangible resources:
Physical resources will be identified as good location and building of the restaurant. This
restaurant will be on the rooftop of the building. The building of must be designed through the
layout of the plan and building design make the property accessible. Financial resources will
come from a bank loan and the personal savings of the owner of the business.
Intangible resources:
Technological resources like software to maintain the database of the organisation, the
equipment to make food and the equipment to prepare the foods are needed. Food services
providers are available online and Royal Dawat Restaurant can get service from the online
platform. The owner will need the human resources in order to run the restaurant. The owner will
recruit 15 staffs, 3 kitchen staffs, 2 assistant managers and 2 senior managers. In addition, the
reputation of the restaurant can be promoted through advertisement on out-of-home, social media
campaign and through using online platform.
9.2 Financing
The total budget requirement of the business is OR 4, 02,700. The owner will take bank
loan from National Bank of Oman. In National Bank of Oman, there is a personal loan section;
from where the owner can take the loan. The owner needs to opt high loan amounts to take a
large amount of loans from other sources as well. The banks do not easily agree to provide loan
to restaurant businesses have a high failure rate. The owner can try to get the loan from the Small

19ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Business Association (SBA). The owner has some personal savings and the friends and family
will also provide monetary help to open the restaurant.
Sources of Capital
Owners' Investment (name & % ownership)
Name & % ownership
OR
6,000,00
0
Other Investor 25,000
Other Investor 2,500
Other Investor -
Total Investment
OR
6,027,50
0
Bank Loans
Bank 1
OR
2,5000
Bank 2 2,500

20ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Bank 3 -
Bank 4 -
Total Bank Loans
OR
5,0000
Other Loans
Source 1
OR
65,000
Source 2 25,000
Total Other Loans
OR
90,000
Summary Statement
Sources of Capital
Owners' and Other Investments
OR
6,027,50
0
Bank Loans 5,000
Other Loans

21ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
90,000
Total Source of Funds
OR
6,122,50
0
Startup Expenses
Buildings / Real Estate
OR
87,000
Leasehold Improvements 110,000
Capital Equipment 88,200
Location / Admin Expenses 4,800
Opening Inventory -
Advertising / Promo Expenses 67,250
Other Expenses 50,000
Total Startup Expenses
OR
12,652,2
50

22ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
10. Identification of material risks and their mitigation
Risk 1: Technological disruption: In the restaurant, the equipment may face the issue of
a sudden disruption. In addition, any kind of financial software may get crashed and all the
financial data may get lost. In this scenario, the restaurant will lose all the data that are stored in
the system. In this scenario, the organisation will lose the data and the process of preparing will
get hampered. Royal Dawat Restaurant, therefore can install a security camera and they can take
back up of the source.
Risk 2: Health and Safety codes: Royal Dawat Restaurant needs to do a routine check
of the equipment and maintain all the safety codes. The organisation should check all the local
health and safety measures in order to avoid any food spoilage. The problem of sudden accident
from health and safety will create a brand hazard.
Risk 3: Property Loss: Royal Dawat Restaurant can face the issue where they have to
relocate the business or the rented property may get lost. The business needs protection from the
unexpected loss. Business owners’ policy must be known by the organisation.
Risk 4: Liability: New business can face the risks of Lawsuit for any accidental case or
any patent-related case. The business owner needs to carefully develop the business practice in
order to mitigate the issue. Professional liability policies also offer the coverage for the business
it is exposed to.

23ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Reference List
Aaronallen.com. 2018). A Brief Overview of the Hospitality Industry in Oman. [online] Available
at: http://aaronallen.com/blog/hospitality-industry-in-oman [Accessed 10 May 2018].
Al-Mawali, N., Hasim, H.M. and Al-Busaidi, K., 2017. Modelling the impact of the oil sector on
the economy of Sultanate of Oman. International Journal of Energy Economics and Policy, 6(1),
pp.23-34.
Anderson, P.M. and He, X., 2015. Consumer behaviour in East/West cultures: Implications for
marketing a consumer durable. In Proceedings of the 1996 Multicultural Marketing Conference,
pp. 3-8.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Bernstein, S. and Sheen, A., 2016. The operational consequences of private equity buyouts:
Evidence from the restaurant industry. The Review of Financial Studies, 29(9), pp.2387-2418.
Dietrich, T., Rundle-Thiele, S. and Kubacki, K., 2016. Segmentation in Social Marketing.
Springer Singapore:.
Foodandhospitalityoman.com. 2018 Food & Hospitality Oman. [online] Available at:
http://www.foodandhospitalityoman.com/ [Accessed 10 May 2018].
Hakro, A.N. and Omezzine, A.M., 2017. Oil Price Effects on Exchange Rate, Output and
Consumer Price: A Case Study of Small Open Economy of Oman. Journal of Economic
Cooperation & Development, 37(3), pp.12-23.

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Newspaper, M. 2018. Oman Restaurant Awards 2015: Big night for Oman's hospitality sector -
Oman. [online] Muscat Daily News. Available at:
https://www.muscatdaily.com//Archive/Oman/Oman-Restaurant-Awards-2015-Big-night-for-
Oman-s-hospitality-sector-4mvl [Accessed 10 May 2018].

25ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Appendices
Appendix 1
Monthly cash flow forecast
Year 1
Net income OR 0
Depreciation OR 57,040
Accounts receivable OR 0
Inventories OR 0
Accounts payable OR 0
Amortization 0
Other liabilities 0
Other operating cash flow
items 0
Total operating activities OR 57,040
Capital expenditures OR 0
Acquisition of business 0
Sale of fixed assets OR 0
Other investing cash flow
items 0

26ASSESSMENT 2: ASSESSMENT OF BUSINESS PLAN
Total investing activities OR 0
Long-term debt/financing (OR 95,000)
Preferred stock 0
Total cash dividends paid 0
Common stock 0
Other financing cash flow
items 0
Total financing activities (OR 95,000)
(OR 37,960)
OR 0
(OR 37,960)