The Restaurant Sole Proprietorship Business - Case Study Example

I. Introduction This is a study about a restaurant sole proprietorship business plan that aims to come across solutions, as well as probable alternatives that will assist in the accomplishment of the project. The paper includes the analysis of the current situation of the chosen dealing. It intends to examine the project feasibility---to determine if there is a demand for the proposal, to evaluate the buying capacity of the target market. It is meant to give focus to the possibility of putting up a restaurant business-which brings about the question of its viability, stability and practicability. The study takes a closer look on the solutions that will definitely assist in achieving the much needed stability and possibility. This covers the discussion and deliberation on surveys, ocular inspection, research and development and intensified marketing strategies that aim to improve services and food items that will be offered by the company. This also contains the explication of other valuable precautionary actions and prevention steps that the company finds helpful in accomplishing business control. It aims to establish the probability of the business plan, demonstrating the indispensable effects of identifying solutions and early anticipation of probable shortfall of the company. Each alternative is clearly explicated, measures are visibly presented. The study aims to conquer probable loss due to numbers of threats, including the competitors. This also presents the proposed Padre Nuestro restaurant, including the definition and clear depiction of the establishment plans---its size, employees, suppliers, inventory control, mission, goals and specific steps to achieve such goals. II. Presentation of Findings THE COMPANY: Padre Nuestro will be a casual fine-dining restaurant that can cater up to 200 guests. It will also provide catering services for different occasions such as birthdays, baptismal, weddings, reunions, retreats and even corporate meetings. The establishment will be open six days a week, from 8am to 10pm. However, Padre Nuestro will be closed on holidays. The name of the restaurant aims to give a fresh-faced and upright impression that is set sights on the seizure of the attention of the target market. The name Padre Nuestro gives a decorous notion that is directed to families, university students and corporate groups. THE COMPANY MENU AND SET-UP: The menu will include lamb chops, braised beef, filet mignon, pastas, wines and other specialty cuisines that not all restaurants can exceptionally present to the customers. Lunch and dinner buffet will also add gist to the establishment. Padre Nuestro will also offer various selections of appetizers, soups and salads; the company guarantees fresh and quality meals---each meals will be prepared using standard and specific recipes to make certain that the meals will have unswerving quality. The restaurant will be employing adequate number of staffs to be able to accomplish excellent, personalized, service. Twenty food servers will be keeping an eye to each guest to immediately attend to their needs. Each attendant will be assigned to two to three tables to reliably distribute each and to ensure that every guest gets a personalized assistance. COMPANY OWNERSHIP. Padre nuestro will be a sole proprietorship. This is measured as the simplest form of the business and prevents excessive paper works and differences of opinion which normally occurs in partnerships and corporations. CAPTURING THE ATTENTION OF THE TARGET MARKET. The target market determines the success of the business. Anticipation of their wants, as well as their needs will greatly help in attaining a profitable enterprise. Padre Nuestro intends to capture the attention of the corporate crowds, university students, and the middle or average class families. Understanding the buying capacity of the target market, as well as their purchasing trends, the restaurant will be presented according to their tastes and preferences. Padre Nuestro will be a casual fine dining restaurant that will be suitable for corporate dinners but will remain to give comforting and relaxing ambience for the university students. The company came up with the idea of offering an inviting, warm but homely ambience that will make the guests feel welcomed and not intimidated. THE ANTICIPATED SETBACKS: The main issue and struggle of businessmen who wish to put up a restaurant and other food related ventures is the needs and the preferences of the target market. Consumer’s satisfaction is one of the significant factors of the success of any enterprise. The market dictates the type of business one can put up in a specific location. This can be concluded by doing thorough research and surveys. Failure to ascertain the probability of the proposed business plan may lead to the bankruptcy of the business. It is a common mistake of people who wish to cut down on their expenditures, doing a business by using instincts and not giving attention to important details like understanding and recognizing the customer demands---which greatly partake in the accomplishment of a profitable dealing. Another predicament of all enterprises, aside from its feasibility is the stability of the company. It is important to warrant the business’ permanence. It is, indeed, not easy to ensure solidity, however, certain precautions and anticipation can prevent the probability of company defeat. These preventive measures are examined and useful defense used by the company to secure the steadiness of the business. The dilemma of any business establishment is when it falls short in fulfilling its promise to the public. To avoid this, Padre Nuestro restaurant has decided to discover solutions and preventions that will truly help alleviate the probable loss for the company. For any company to win over their competitors, one should uncover the road to the customer satisfaction. Gratifying the customers may definitely spell out success. Being conscious of this fact, Padre Nuestro aimed to act upon all these issues by distinguishing specific needs and desires of its target customers. Competition is also an impasse to a success of the business. It is therefore important to fully understand your competitors---what makes them lead the market, and what keeps them at such position. Knowing and being aware of the competitor’s strength will help the establishment identify its possible weak points. Empathizing on these issues will truly help in formulating better marketing strategies---to grasp the attention of the market. THE SELECTED ALTERNATIVES: It was learned that the realization of the customer wants and preferences participates in the attainment of the planned business. Therefore, to guarantee the success of the proposed restaurant business, alternatives and solutions must then be formulated to clearly classify customer demands. To avoid deficits, the company will make certain that it will offer food items and services that will surely be appreciated and embraced by their intended market. To pull this off, the establishment decided to make use of the following strategies: SURVEY. The market reveals the operative steps that the company may need to undertake. This may be clearly identified by carrying out surveys. “Statistical surveys are used to collect quantitative information about items in a population. Surveys of human populations and institutions are common in political polling and government, health, social science and marketing research. A survey may focus on opinions or factual information depending on its purpose, and many surveys involve administering questions to individuals.”(Wikipedia). The information that are brought together can actually be used by the company as the basis of what should be delivered. Survey enormously assists in formulating services and products that will earn the costumer’s loyalty. By knowing what is appreciated by the majority, the restaurant can therefore come up with recipes that will surely capture its clients. Captivating the customers’ tastes and winning their loyalty will assist the restaurant in achieving constancy. One may efficiently gather information by allowing the respondents to specify their likings. Some surveys are too exact, that precise choices to select from are given. That may be effective, however, it is believed that surveys which allow the respondents to detail their own précised descriptions and identifications of what they want, or expect is said to be more valuable. When people are given the opportunity to voice out what they truly want, it is when the evaluation is at its greatest. Surveys can actually be tedious and may definitely create additional expenses for the company. Then again, its end result is indispensable. It has the ability to be acquainted with the target customers’ preferences, put in the picture of what has to be carried out. Surveys have numerous types, but the most common is the questionnaires, also known as self-administered survey. OCULAR INSPECTION. This is a very effective tool in concluding the feasibility of the project. When doing a restaurant ocular inspection, one may take note the number or the turn over rate for each seat to determine the possible turn-over or estimated numbers of customers for his own restaurant. It is important that the researcher selects the appropriate establishment. This means that the restaurant must conduct its inspection to another restaurant that has the same or almost similar concept---aiming the same target market. A fine dining restaurant should not perform an ocular inspection in a fast food chain for this will only be considered as a waste of time and money. Ocular inspection allows the researcher to have a first hand experience and have a good feel of what he might be faced with in the future. This is also an effectual form of determining business viability. This method can actually provide an almost exact upshot, allowing the examiner to have an almost 80% of the projected or estimated sales. DEVELOPMENT OF PRODUCTS AND SERVICES THROUGH INTENSIFIED RESEARCH AND DEVELOPMENT. Consciousness of the customer demands may lead one to a better grasp of what to tender. Nevertheless, to make sure that the business will have a competitive edge to its competitors, their own menu and services should then be enhanced. Word of mouth is still considered as the best form of marketing, and indeed, it will help the company---to a great extent---if it will keep up with what it has promised. Padre Nuestro will use the services of competent market researcher to foresee almost precise customer preferences. By understanding the customer inclination, the company will be capable of providing what is expected. Research and development will help to try to come about new recipes that will win the approval of the target customers. Nothing beats variation when a restaurant seeking out business strength and solidity. INTENSIFIED MARKETING. It is important to formulate marketing strategies even before the business is established. The company will be having flyers and brochures to be given out to its target market. Universities, as well as corporate offices will be sent copies of these advertising tools. The brochures will present luscious meals and tempting beverages that will definitely entice the market. Streamers will also be placed in the location, months before the restaurant opens. The company will also utilize Print ad as its main advertising tool to reach out to the intended buyers. Padre Nuestro will be spending $1,900.00 for each half page print ad; this will be seen in leisure magazines. A glossy back cover that will have a picture of the restaurant, as well as photographs of the company specialties---will cost $3, 800.00. The establishment recognizes the importance of advertising techniques and it is aware of the positive results that may actually bring in to the company. This is why Padre Nuestro intends to communicate with numbers of leisure and other local magazines that will help them in reaching out to the market. COMPETITOR ANALYSIS. It will help to figure out the exact competitors. Awareness of the competition, specially the competitor’s strengths---will assist the restaurant to get a better picture and devise or put better strategies together. Indeed, it will help out to take in these risks and be ready for the possible peril that these might cause the business. OTHER SIGNIFICANT FACTORS THAT WILL ASSIST IN THE ACHIEVEMENT OF THE DESIRED QUALITY OF THE SERVICE AND THE FOOD PRODUCTS OFFERED BY THE COMPANY: However, other details are also given focus to accomplish customer loyalty and frequency. The establishment will be having numbers of suppliers to make certain that the company will have adequate supplies in case of delivery failures and other fortuitous events. However, quotations are carefully examined---prices are compared against quality and specifications. The company will be having an inventory control clerk who will be responsible with the receiving of the orders and who will also be responsible with the control of the flow of the stocks. Perishable goods such as sea foods are to be delivered on a daily basis to ensure excellent quality. The company will employ two supervisors and one operations manager. The supervisors will assist the operations manager with the over-all production; however, each will be given specific tasks. The establishment, being a small business, will manage its finances by having a coordinated job delegation. One supervisor will keep an eye on the catering and reservations, scheduling the banquets; job description also includes coordination and the communication with the customers. Scheduling of the events also takes in the responsibility of meal planning and table setting. To ensure customer satisfaction, the supervisor must ensure that all significant details, as well as special requests are noted. The company will also hire twenty (20) food servers. However, two of them will also do bartending. Staff will be having their formal uniform to create an elegant impression. Kitchen staff will also be wearing their chef’s uniforms, hair nets are worn at all times and hygiene is observed regularly. Standard operating procedures, as well as food presentation specifications are posted in the kitchen to ensure consistency. It will not be allowed for the kitchen staff to come about their own garnishes, it is important for the company to achieve uniform production. The business plan is projected to be put into operation in three months. It is a sole proprietorship, which will allow the company to freely decide on what seems to be practical and applicable to the business. “A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation. If you are a sole proprietor use the information in the chart below to help you determine some of the forms that you may be required to file.(Internal Revenue Service, United States Department of the Treasury)” The establishment’s mission is to give out outstanding service and specialized cuisines to their target market. Its goal is to earn the trust and loyalty of its customers, aspiring at least 25% of the market. It is directed to put back its investment in one and a half year. “Restaurant investments, which almost always take place at the start-up phase when capital is most in demand, are highly risky propositions. Almost always handled as private placements, they are usually shopped around informally through networks of people. The average investment ranges anywhere from $2,000 on up”(Preston, Holly H). The company aims to be able to provide more branches in the future; its goal is to put up at least 2 branches in two years. This may sound ambitious and large-scale, however, the restaurant believes that with the use of the alternatives selected to wrestle threat and peril of every commerce, Padre Nuestro will eventually be capable of attaining its mission. III Summary, Conclusion and Recommendation Summary This study aspires to verify the feasibility of a restaurant proposal, understanding the competitiveness of this trade; this work intends to come about solutions to possible debit of the company. This also set sights on the ways and means to assure stability despite competition and numerous other unconstructive factors that the company will eventually encounter. The work thoroughly analyzes each threat that may cause deficit. Scrutinizing and evaluating these factors will greatly assist in the prevention of the probable damages. The anticipation of these concerns is believed to be effective in achieving a better control of the business. This is a project proposal that presents realistic issues and insinuates valuable alternatives to go against such concerns; each option provides support for the avoidance of losses. The options presented may work concurrently to accomplish the best result. Surveys will bring out what the intended market desires, submitting factual information based on the answers provided by the respondents. It is deemed to be an efficient tool in determining market inclination. Ocular inspection, on the other hand, will present a believable and almost exact data with regards to calculation of the target company revenue. This contributes in the assessment of the possible numbers of guests, including the turn over rates, which---to a great extent---estimates the potential sales. Enhancement of the offerings and services will eventually be attained once the company becomes conscious of the market preferences which were identified with the use of surveys. Such step will significantly improve the eventual profits. Marketing strategies can intensely increase the probability of the realization of the plans of the restaurant. Recognition of the market demand will exceedingly aid in planning advertising tools. Knowing the exact preferences of the market will help the company to deliver what is actually desired. Competitor analysis, alternatively, can seriously impart noteworthy elements that may bring about substantial alternatives to defy or infringe downfall. Familiarity of the competition will definitely make the company work in a more watchful manner. CONCLUSION The study emphasizes on the feasibility of the proposed project. As soon as the alternatives had been identified, it is important to determine which requires most attention and which one has the greatest possibility to assist in accomplishing viability. Marketing strategy plays a significant part in pulling off a higher probability of success. Advertising tools should create an impact and make a connection or rapport with the target market. The knack of doing so can truly make a magnificent effect on the company image which will eventually result to better returns. Marketing techniques should never be taken for granted for these are what tell the market what to expect, what the company offers and what they can get. These must represent and give a glimpse of what is really offered by the restaurant. Marketing strategy should be realistic. Deception will definitely lead to disappointments which will eventually head to a possible lost of trust and loyalty. Advertising photos should give the precise message of what is truly delivered in the actual scene. Pretense may result to displeasures. One should not present a photograph of a large serving of steaks, when what is actually served is a medium size of meat. Marketing should be utilized to catch and perceive the interest and curiosity of the target market, it should not be used to mislead or give a wrong impression. It is supposed to create an impact and should make the market want to try the products. Padre Nuestro will also provide catering services, which should be clearly singled out, distinguishing of services may really put in additional takings. When the company ascertains each significant aspect of the business, it may mean a one step ahead to winning the market. RECOMMENDATION Subsequent to the exploration of the alternatives that aims to assist in achieving the feasibility of Padre Nuestro restaurant, the company should also apprehend which among its alternatives should be given more focus. Marketing approach, undeniably, will unquestionably prop up the project feasibility. The ability to perceive the interest of the target market will possibly buoy up the company sales or revenue. The main goal of advertising tools is to communicate to the intended market---aiming to put across what the company offers. The capacity to be in touch with the market and the ability to make a statement will greatly improve the company’s target deal. Advertising and promotions, when given adequate attention may actually bring about impressive outcome. The amount spent may actually give back stirring results. Works Cited List Internal Revenue Service, “United States Department of Treasury”, 26 Nov 2008,. Preston, Holly H, “How to Spot a Hot Investment : Putting Your Money Where Your Mouth is”, 27 Nov 2008 . Wikipedia, “Statistical Survey”, 26 Nov 2008, . Read More