Financial Reporting and Marketing Plan: Waterfall Luxury Restaurant

This report presents a comprehensive financial and marketing plan for a proposed luxury restaurant, the "Waterfall Luxury Restaurant." The report begins with an introduction followed by a detailed cost/volume/profit analysis, including gross and operating margins, profit potential, fixed and variable costs, break-even analysis, and venture capital needs. The marketing plan outlines the company's vision, mission, core values, business objectives, market analysis, strategic marketing objectives (market penetration and development), and marketing strategies. A design and development plan, management team overview, operations plan, sustainability considerations, implementation schedule, and financial projections are also included. The financial projections indicate a loss in the first year, followed by increasing profitability, with a break-even point calculated at 14,529 units sold. The marketing plan emphasizes a unique concept, multi-cuisine offerings, and focuses on attracting local families, young students, and business professionals. The report concludes with references and a proposed offer for investors.

Financial Reporting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
3 COST / VOLUME / PROFIT ANALYSIS..................................................................................1
Gross and Operating Margins.....................................................................................................1
Profit Potential and Duration......................................................................................................1
Fixed and variable cost...............................................................................................................1
Break even analysis.....................................................................................................................1
Time to break even......................................................................................................................4
Time to positive cash flow..........................................................................................................4
Venture and working capital needs.............................................................................................6
4 MARKETING PLANS.................................................................................................................6
4.1 DIRECTIONS OF COMPANY AND STRATEGIC INTENT................................................6
4.1.1 The Identity........................................................................................................................6
4.1.2 The vision...........................................................................................................................7
4.1.3 The mission........................................................................................................................7
4.1.4 Core values.........................................................................................................................7
4.2 BUSINESS OBJECTIVES........................................................................................................8
4.3 REVIEW OF BUSINESS ENVIRONMENT............................................................................8
4.3.1 Focus for market segment..................................................................................................9
4.3.2 Core Business segments...................................................................................................10
4.3.3 Market timing...................................................................................................................10
4.4 STRATEGIC MARKETING OBJECTIVES..........................................................................10
4.4.1 Market penetration...........................................................................................................10
4.4.2 Market development........................................................................................................10
4.5 COMBINED MARKETING STRATEGIES FOR MARKET DEVELOPMENT AND
PENETRATION............................................................................................................................11
4.5.1 Internal marketing............................................................................................................11
4.5.2 External Marketing..........................................................................................................11
4.5.3 Interactive marketing.......................................................................................................11

4.6 RISK ASSESSMENT..............................................................................................................11
4.7 CROSS FUNCTIONAL DEPENDENCY...............................................................................11
4.8 THE MARKETING BUDGET................................................................................................11
5Design & Development Plan.......................................................................................................11
6. The Management Team.............................................................................................................11
7. Operations Plan..........................................................................................................................11
8. Sustainability..............................................................................................................................11
9. Schedule for Implementation.....................................................................................................11
10. Business Contacts....................................................................................................................11
11. Financial Projection.................................................................................................................11
12. Proposed Offer.........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
3 COST / VOLUME / PROFIT ANALYSIS
Gross and Operating Margins
Gross margin refers to the percentage gross profit cover of entire revenue amount. Gross profit for each projected year is expected
to be 70%. Cost of production of edible items and revenue are assumed to increase at constant rate each year. However, fixed
expenses are expecting to decline after first year and net profit percentage may increase from 12% to 40% at end of year 5. Thus, stiff
control on expenses will lead to increase in profit in the business.
Profit Potential and Duration
Business have a good profit potential but in first year loss is observed in the business. Loss duration will be of one year and it is
expected that thereafter good amount of profit will be earned in the business.
Fixed and variable cost
Like every business in restaurant business also fixed and variable expenses are incurred. In the prospective business also fixed
and variable expenses will be incurred. As part of fixed cost modular kitchen expense is covered in the projection. Order to
manufacture modular kitchen will be placed with the relevant supplier or company. In the variable expenses HR cost is included in the
projections. 5 waiters will be kept in the business premises and £7 will be hourly pay. Total working hours will be 8hrs. Hence, total
cost for day for each waiter will be £56. Overall, HR cost of day will be £280. Overall, cost of HR for the month will be £8400.
Administrative expense is another one that will be incurred in the business. Its amount is kept between £3000 to £4392 for five years.
Break even analysis
For break even, analysis few inputs are required which are calculated. In order to compute those inputs some facts are taken in to
account which are given below.
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Table 1Cuisine cost
Cuisine Pound
Finland 35
Philippians 5
Italy 30
Mexico 6
Afghan 7
Asia 8
Australia 20
Table 2Number of customers for month
January February March April May June July August September October November December
Number of customers on single day 3 3 3 3 4 4 4 4 4 5 5 5
Number of customers January February March April May June July August September October November December
Finland 90 94.5 99 104 109 115 121 127 133 140 147 154
Philippians 90 94.5 99 104 109 115 121 127 133 140 147 154
Italy 90 94.5 99 104 109 115 121 127 133 140 147 154
Mexico 90 94.5 99 104 109 115 121 127 133 140 147 154
Afghan 90 94.5 99 104 109 115 121 127 133 140 147 154
Asia 90 94.5 99 104 109 115 121 127 133 140 147 154
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Australia 90 94.5 99 104 109 115 121 127 133 140 147 154
Total number of customers 630 662 695 729 766 804 844 886 931 977 1026 1078
Table 3Revenue across months in first year for various cuisines
Revenue
Januar
y
Februar
y March April May June July
Augus
t
Septembe
r
Octobe
r
Novembe
r
Decembe
r
Finland 3150 3308 3473 3647 3829 4020 4221 4432 4654 4887 5131 5388
Philippians 450 473 496 521 547 574 603 633 665 698 733 770
Italy 2700 2835 2977 3126 3282 3446 3618 3799 3989 4189 4398 4618
Mexico 540 567 595 625 656 689 724 760 798 838 880 924
Afghan 630 662 695 729 766 804 844 886 931 977 1026 1078
Asia 720 756 794 833 875 919 965 1013 1064 1117 1173 1231
Australia 1800 1890 1985 2084 2188 2297 2412 2533 2659 2792 2932 3079
Total
revenue 9990 10490
11013.9
8
1156
5
1214
3
12750.0
5
1338
8 14057 14759.78 15498 16272.66 17086.29
Table 4Projected P&L
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 159012 206716 268730 349350 454154
COGS 47704 62015 80619 104805 136246
Gross profit 111308 144701 188111 244545 317908
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Expenses
Company related restaurant
expenses 100800 105840 111132 116688.6 122523.03
Fixed expenses 80000 10000 10000 10000 10000
Administrative expenses 3000 3300 3630 3993 4392.3
Total expenses 183800 119140 124762 130681.6 136915.33
Net profit -72492 25561 63349 113863 180993
Table 5Break even analysis
Fixed cost 80000
Price per unit 15.9
Variable expenses 10.35123422
BEP 14529.84517
Time to break even
Firm will need one and half year to break even or to cover fixed cost incurred in the business in first business year. Fact indicate
that manager need to sold total 14529 units to cover fixed cost. In year 1 total 10027 units sold up to 12 months of the first year.
Hence, it can be assumed that in first year cost of fixed assets will be covered to great extent and in next year within 6 months entire
cost will be covered.
Time to positive cash flow
Table 6Time required to earn positive cash flow
Months of Cash flow Fixed Residual
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year cost
1 9990 80000 -70010
2 10490 80000 -59521
3 11014 80000 -48507
4 11565 80000 -36942
5 12143 80000 -24799
6 12750 80000 -12049
7 13388 80000 1339
8 14057 80000 15396
9 14760 80000 30155
10 15498 80000 45653
11 16273 80000 61926
12 17086 80000 79012
Table given above is indicating that in the first year within six months cost will be covered. It is assumed that premises were
already owned by an individual and thus any capital expenditure is not made to acquire premises. As part of capital expenditure
investment is made on the modular kitchen and other equipment’s as well as development of waterfall whose cost is £80000.
Mentioned cost will be covered in six months. Thus, positive cash flow starts in the business from month of June. Low duration is
required to cover cost because from first month raw items will be purchased in small quantity. Thus, even less number of
customers created in first few months cost will remain in control. Consequently, major pressure is to cover modular kitchen and
equipment’s cost and waterfall cost in the business.
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Venture and working capital needs
In order to meet investment needs contact will be established with the venture capital firms. Under this series of meetings will be
take place and VC firm will be persuade to make investment in the current innovative business idea. In order to meet working capital
needs short term loan can be taken from the banks or personal savings can also be used.
4 MARKETING PLANS
4.1 DIRECTIONS OF COMPANY AND STRATEGIC INTENT
4.1.1 The Identity
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4.1.2 The vision
Vision of Waterfall luxury restaurant is to attain growth by delivery quality food experience to consumers of different cuisines.
The vision of restaurant is based on hanging lifestyle and food preferences of people. The aim of fine dine will be on serving extra
ordinary luxurious and refreshing experience to gain people with different preferences.
4.1.3 The mission
The mission of restaurant is to set luxurious environment of fine dine keeping in mind the concept of waterfall which will be
managed by focusing on the seating arrangement of restaurant. In this focus of fine die will be on privacy of guest and view of
waterfall. The restaurant will offer significantly different taste of dishes from Italy, Mexico, Afghan, Asia, Australia, Philippians and
Finland.
4.1.4 Core values
 Consistency in quality of services will be foremost priority of waterfall luxury restaurant. However, to main consistency of
services the managing staff of restaurant will brief guest about the different services and quality of food. This will be done to
create value of services and for serving food which will help in delivering value for money.
 Foremost priority of Waterfall restaurant will be customers and therefore will be involved in decision making like changes in
cuisines, price, quality, etc. This will help in deriving interest of potential guest and will aid in developing loyal customer base.
 Authenticity of restaurant will be another major focus of restaurant which aid in managing relationship with customers
(Hwang, Han and Kim, 2015). The authenticity standards of restaurant will be focused engaging staff of restaurant with
consumers, being honest on quality of food, test of the food quality on the basis of quality parameters.
 Group work in the restaurant play a crucial role and therefore Waterfall luxury restaurant will be focused on diving work of
staff in synchronised ay and will focus on continuous training and monitoring. This will be done to manage conflicts and maize
the risk of errors in consumer services.
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4.2 BUSINESS OBJECTIVES
 To attain competitive position in London against all restaurant business within 8 months.
 To increase sales of services by 5 % within 6 months
 To attain loyal customer based of at least 6 % within 1 year
 To grow business sin London in with 3 years to increase availability of quality food and the concept of waterfall luxury fine
dine
4.3 REVIEW OF BUSINESS ENVIRONMENT
Internal audit of restaurant will aid in reviewing present strength, opportunities and threats to waterfall restaurant. The audit is as
follows:
Strength
The concept of waterfall luxury restaurant with
Multi Cuisine is unique and therefore owns the
strength of attracting wide and diverse range of
consumers.
The concept of restaurant allows appeal to
diverse customer segments and therefore have
potential to grow.
Focus on quality and maintenance of
authenticity standards will be major strength to
Waterfall luxury restaurant as it will govern
value of services and consumers spending.
Weakness
The business concept is news and requires
huge investment in order to meet requirement
of planned services in restaurant.
The restaurant business and is new and
therefore major weakness can coordination in
employees work with rest to quality standards
and guest expectations (Ward, 2016).
The concept of waterfall restaurant is
determined and innovative in itself and lacks
market research and therefore lacks
information on needs and expectation of guest.
Opportunities Threat
8

Consumer acceptance can be an opportunity
for waterfall luxury restaurant because loyal
customer base in London will be a success
factor for growth in new areas of London and
other regions.
Offering Multi cuisines can be opportunity
because in this the restaurant will have
advantage to add unique and customized dishes
in menu to meet consumer needs and gain
customer base in market (Youn, Hua and Lee,
2015).
The restaurant business has opportunity to
grow in start-up business with the new concept
because of its capabilities that is rarity and low
risk of imitation.
Competition from existing restaurant business
is a major threat which can restrict growth of
luxury fine dine. The exiting restaurant owns
strong control over customer base and food is
the most sensitive business (Brace, 2018).
Therefore, changing customer preferences and
gaining acceptance is a major threat when
entering into new market.
Imitation is another threat which can ruin the
unique business concept of waterfall restaurant
and can be copied by exiting leading restaurant
with minimum cost investment.
4.3.1 Focus for market segment
In accordance market research for food restaurant business in London, it can be said that focus of Waterfall Luxury Fine Dine
will be customers of competitors because in food services consumers seeks of uniqueness in food type and cuisine which is the
strength of restaurant and therefore competition will be the major focus of restaurant (Brace, 2018).
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4.3.2 Core Business segments
Priority 1: The first segment for Waterfall luxury restaurant will be local families and young group university students.
Priority 2: Dinner for families and Early morning breakfast for students
Priority 3: Take away for students and business people at the time of lunch
Priority 4: Customised food services on the basis of cuisines
4.3.3 Market timing
The launch of Waterfall luxury restaurant is favourable to attain defined business objectives
4.4 STRATEGIC MARKETING OBJECTIVES
4.4.1 Market penetration
Year 1 Year 2 Year 3
To launch Waterfall luxury restaurant in London
To attain growth in revenue by 40% continuous
year by year
To grab loyal customer base of at least 5000
local guests of London
4.4.2 Market development
Year 1 Year 2 Year 3
To expand market in London by opening 1 more
Water fall luxury restaurant in London
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To build brand reputation by meeting consumer
expectations
4.5 COMBINED MARKETING STRATEGIES FOR MARKET DEVELOPMENT AND PENETRATION
4.5.1 Internal marketing
4.5.2 External Marketing
4.5.3 Interactive marketing
4.6 RISK ASSESSMENT
4.7 CROSS FUNCTIONAL DEPENDENCY
4.8 THE MARKETING BUDGET
5Design & Development Plan
6. The Management Team
7. Operations Plan
8. Sustainability
9. Schedule for Implementation
10. Business Contacts
11. Financial Projection
12. Proposed Offer
11

REFERENCES
Books and Journals
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