Business in Denver - Research Paper Example

Business Plan Executive Summary 303 Deliche Steak will be a unique restaurant which willmeld delicious cuisine with a fun-filled and entertaining environment. It will be designed to provide unparalleled dining experience coupled with luxurious atmosphere and welcoming staff. It will be a contemporary steak house serving the finest steaks that are hand-cut along with a variety of dishes to cater the tastes and preferences of their valuable customers. It will also offer an unexceptional wine list to compliment the meal and make it ‘perfect’ in every sense. It will be located inside the Park Meadows Shopping Center, South Denver. This will provide an exciting experience to consume high-quality food while window shopping and walking inside the shopping mall. 303 Deliche Steak will offer a tantalizing experience of hand cut (daily) and 21 days aged steak to maximize the flavour. Its menu encompasses the best steak, several chicken dishes as well burgers in the saloon. It will also serve desserts and distinctive salad.For special occasions, it will also offer private dining areas with a décor that beckons music and laughter to make it more relaxing and memorable. The grill will be in open air to cook to the proper degree as per the guest’s requirement. There will be no waiting for the steak since the grill will be stocked already to the degree of doneness. This business plan will launch the initial concept to create more concrete goals and obtain financing. Financing is required to start the business activities such as kitchen designing, architectural plan of the restaurant, menu and receipt books, purchases equipment and other related expenses of the first year. The capital contributions of the owners along with the finances will contribute in successful opening of the restaurant. This is essential to create a value-driven atmosphere that will entice people from all ages to bring their friends and family to enjoy the creativity of the founders with excellent food. The dazzling 303 Deliche Steak will be embraced by people who love dining out with fantastic meal and benchmark customer service at a convenient location. Business Description: 303 Deliche Steak is an ultimate steakhouse destination with great food, lively atmosphere and extraordinary value. While the original variation of American favourites is supreme, an array of flavourful dishes such as seasoned steaks, chops, prime rib, roasted caramel chicken, generous salads and side orders will also be offered. This outlet will provide the upscale ambience of an energetic lifestyle with the ongoing celebration of exceptional food. Fresh and entertaining surroundings: The restaurant will feature display cooking of our featured steak from cutting to cooking to ensure that they are very tender. The hearty salads and hot food stations will also visible to enable our guests to choose their favourite dish/salad from a variety of items. We will also offer theme nights to add a twist to the customer’s experience. Fresh flowers, great music and amazing artwork will appeal the customers. Quality Food: At 303 Deliche Steak, the passion of grilling will be reflected in the legendary steaks. It will serve nothing but fresh and tender steaks, crispy salads, all white meat chicken and scrumptious desserts. Variety: We are committed to offer a little extra by adding value in terms of everyday menu to spice up the things and add more twist. The menu will change after every 5 to 6 months but the specialty will be there. For instance, during summer months we will offer special menu such as exotic drinks to refresh our customers in a hot sunny day. Prices will be varying according to the competitive upscale restaurants. Hours of Operation: The restaurant will be open seven days a week. The timings will be 11:00 am to 1:00 pm. Industry and Market Analysis: Denver is a pioneer in the restaurant industry with many popular chains based in the region. It has a population of more than 3 million and the growth rate of the food industry is increasing with the establishment of fancy restaurants and fast food franchises. Denver residents allocate about 22% of their daily spending to food, which is the highest out of any other big city in the country. This shows that Denver people love dining out and a variety of restaurants are busy entertaining them. It is a home to country’s best Mexican food, fast- casual chains and microbreweries galore. There are almost more than 392 restaurants in South Denver which shows the level of competition and the inclination of the local people towards food and dining. The restaurant industry in the entire USA has been growing very rapidly in the last 20 years and has now moved into the mature stage of its life cycle. The sales in the food sector were $163.8 billion for 2009, an increase of 4.3% over the previous year. There are many factors that contributed towards its growth such as the demand for leisure time in busy schedule, two-wage earners have increased the spending pattern of the families and the competition is very strong. Due to this intense competition, a new entrant in this industry must discover new ways to differentiate itself from other in order to achieve new dynamics of success. The founder of 303 Deliche Steak has realized the importance of being competitive in this fast growing economy and has combined the popularity of steak with other specialty dishes to offer a wide range and cater the needs of all individuals. Main Competitors: Chipotle Mexican Grill Rubio’s Fresh Mexican Grill Jack in the Box Wingin’ it Chick-fil-a Elway’s Del Frisco's Double Eagle Steak House Denver Chophouse and Brewery Competitive Analysis: 303 Deliche Steak will have the following advantages against its competitors: Primary Advantages: Food quality will be better than the competitors. The USDA choice sirloin steaks will be offered that are hand carved. This will provide a significant competitive edge to our restaurant. Excellent customer service: the management and other staff members will handle every detail to make the special evening more interesting and valuable. Variety: The customer will have the choice to pick from a range of dishes that are prepared fresh daily. There will something available for every family member according to its mood and preferences. Secondary Advantages: Speed of service will be instant and it will take no time to get the yummiest meal on the customer’s table. Entertainment: The customers will watch us cooking and preparing their favourite steak and other cuisines as soon as they will walk in. This will make them feel as a part of Deliche’s Family! Everything will be placed close to the dining table. There will be no need to carry trays for plates, napkins, drinks etc. Target Market Segmentation: 303 Deliche Steak intends to attract a wide and diverse group of Mid-American with ages from 21 to 60. There are many reasons to choose this group. First of all, with a wide range of dishes to offers, we can easily fulfill the need of masses. Hence, we cater to all sorts of people from business man to happy couples to families. High end singles, tourists and compulsive spenders are also welcomed. These are the types of people who frequently go to restaurants for good dining and service at a valuable price. As the restaurant will be located in a well-known shopping mall, a place where people travel to eat-out and it is also frequently visited by the tourists. The restaurant is more suitable for people who are not looking for the cheapest meal but are looking for great value. The expected rush hours are in the weekend slots because in those days most of our target market enjoys mall activities. Our restaurant would be the best place for people who are creative, sophisticated and entertaining diners. Marketing Strategy: The first restaurant in Park Meadows Shopping Center will be a market tester on the basis of which decisions will be made regarding the expansion in future. We will fully concentrate on quality maintenance in order to establish a strong identity in the local market. During the start of the business, the advertising costs will be simple and creative. This would be challenging but cost effective marketing is a key to success. Thus, a combination of local media and marketing programs will be utilized. This will be followed by the most effective radio programs and print ads. As soon as our restaurant will gain considerable recognition, a broader media will be explored. We also believe that ‘word-of-mouth’ is still the best form of advertising. By offering an unbeatable quality and cool atmosphere, with competitive prices in a clean and friendly environment, we will be talk of the town. We will be actively seeking brand recognition by selling supporting materials such as merchandise, promotional tools such as mug or any cutlery item and other marketing gimmicks. Pricing Strategy: Our pricing strategy is positioned as ‘moderately priced’. We are not aiming to be the lowest priced restaurant around but will surely strive to be the value leader. There will be discounts on certain occasions such as Christmas, Easter etc to cater the diverse groups from all classes. Promotion Strategy: 303 Deliche Steak will use a variety of promotional tools to create awareness and spread the news of its existence. These are: As it is located in the inside, we will distribute brochures and pamphlets at the mall entrance. There will be banners placed very close to the mall in order capture the sight of the people. The eye-catching exterior will also push the customers. Free surprise dinners will be announced with Radio DJs. Trade shows will be organized to encourage private dining and banquets. Membership cards will be promoted at comparatively low prices to avail the discounts. The interaction with the managers and customers will be high profile to create a good reputation. The restaurant promises to provide top quality food and service every single day. Musical nights will be organized for enthusiastic youngsters who will spread the word to their folks. Positioning Statement: During the first six months, our main focus will be to increase the customer awareness within the local community. All our tactics and strategies will be directed towards one goal i.e. to tell who we are and what we are all about. This is the reason we will keep our prices competitive with the finest quality in town. Marketing Programs: Different tactics will serve different purposes of marketing. In-store marketing i.e. marketing within the mall surroundings through word-of-mouth would be the cheapest method. Other programs include: Grand opening celebration by inviting the top names in the restaurant industry. We will invite a new local artist from the music industry to show their talent and entertain the audience. Deliche Night- Every Friday night will be special evening for the people of restaurant. It will be marked as a perfect night to gather the owners and staff of the restaurants. \ New Year Party Valentine’s day celebrations Food festival of special ethnic Easter Diner Halloween Nights Special Buffet Days Yearly Birthday Parties Direct mail with all the details regarding prices, menus and other special events along with the pictures to explain our concept. Newspaper will be used by placing large ads in the local paper to inform about our special offerings and events. Cable TV- It will only be possible if we secure reasonable rates with enough frequency. Radio Campaign- This will be a very strong medium to place our short and catchy ads. Call in contests will be conducted in the radio program to give free coupon meals of 303 Deliche Steak as a gift. Humorous and music based radio ads will be made to amuse the listeners. Operational Issues: Technology: Two high speed computers will be provided with a fast internet connection and will also be linked to the cash registers. All the key financial information will be stored in it with backup storage. It will also be used to take online orders from our own Web page and email. Employee Training and Education: Employees will be trained in accordance with their related duties and responsibilities. They will be trained in such a way that the concept and philosophy of the business will be deeply rooted in their ideas and actions. Food Production: As the idea of display grill will be introduced, all the food will be prepared within the premises and in front of the customers. High standards of sanitary efficiency will be followed. The related items will be stored in large coolers in the basement. Systems and Controls: All the products used in the dishes will be constantly testes to ensure the standards of freshness and purity. Inventory management and food costs will be handled by the computer. It will be checked by the management on a daily Human Resource Requirement: 303 Deliche Steak is headed by the sole founder Emily John with a team of three managers, one book keeper and twenty staff members. Each team member is equipped with specific industry experience in their respective areas that will apply to their tasks. The initial staff will have to work harder by wearing many caps. This will keep our overheads as low as possible but they are sufficient enough for the proper management of the restaurant. A very balanced and extremely talented and innovative team is combined with no chances of gaps in its structure. This will allow the business partners to reinvest in the interest of the restaurant as well as enjoy the higher profits. Although, the staff will increase in key areas as we will grow with more outlets. Management Team: The management team is well compensated with considerable experience and knowledge regarding the food industry. Currently, all the major management decisions and monitoring will be done by Emily along with the help of the three managers. A general manager will be hired in the year 2 to assist the growth of 303 Deliche Steak and take it to a new level. Organizational Structure: In the future, a director of store will also be included to manage the store operation when the units will exceed by three or four. At present, one of the three managers will be the in-charge to oversee the day to day operations. He will also be rewarded by an increment in the profit sharing. The accounting and payroll functions will be handled by the in-house bookkeeper Mr. Mathew James who will be responsible for the growth and development of business. Other possible positions such as marketing manager, human resources, R& D and administrative team might be added at a later date. Personnel Plan: According to the size of the restaurant and the projected revenues, the personnel plan is suitable and in good proportions. The staff member will include 12 full-time employees and 8 part-time employees who will work for a total of 750 man-hours a week and generate a weekly sales of $ for the first year of the business. Requirements for Restaurant Manager: Skills in Administration, leadership and people skills Degree in Food Service/Catering or related discipline 2 years experience in a first class restaurant or hotel Requirements for Human Resource Executive: Strategic approach towards people and workplace management Degree in Personal Administration/HRM/Social Sciences Three years related experience Requirements for Staff (waiters/waitresses): Courteous and friendly attitude HND/OND/School Certificate 1 year experience would be better. Not necessary Financial Projections: From the financial perspective, our main focus will be towards time management in order to keep our labour costs under control and proper purchase, preparation and handling of food. Potential investments from the investors will be rolled in as retained earnings for the expansion program. Sales: 303 Deliche Steak projected sales for the first are on the low side using $2 million per year. It will increase with the number of restaurants and other improvements. Cost of Goods Sold: The Cost of goods sold will be determined by taking out the actual profit and loss statements and then apply various concepts of restaurants, price structure and counts of guests to arrive costs. Management Payroll: These figures will be based on the use of three managers per unit bonus and salary levels. Fixed and Variable Expenses: The variable and fixed expenses were determined calculating the actual figures from various findings of restaurants. Marketing Fees: A certain percentage of capital will be allocated for the production of various marketing materials such as 20% to 30%. Important Assumptions: Strong economic conditions are assumed without any major recession or downturn. No changes in consumer tastes and preferences are assumed to make the idea less competitive. Cash Flow Statement: The chart shows the monthly figures of our cash flow projections: Breakeven analysis: The restaurant expects to achieve the breakeven point in between the second and third month of its sales. Bibliography Lehndorff, John. Denver dines: a restaurant guide and more. United States of America: Johnson Publishing Company, 2005. Castrone, Linda. Insiders' Guide to Denver. United States of America: Falcon Publishing, Inc, 1999. Dean, Taraneh. Food intolerance and the food industry. England: Woodhead Publishing Limited, 2000. National Restaurant Association, 2009 Restaurant Industry Forecast: http://www.restaurant.org/research/forecast.cfm Data monitor, United States - Fast Food (Published August 2009) Schlosser, Eric. Fast Food Nation: The Dark Side of the All-American Meal. New York: Houghton Mifflin Company, 2001. Fullen, Sharon.L. Opening a restaurant or other food business starter kit: How to prepare a restaurant business plan and feasibility report. Atlantic Publishing Group. Inc, 2005. Abrams, R & Kleiner, E. The successful business plan: secrets & strategies. The Planning shop, 2003. Kristi Willis. “Exploring Denver’s Real Food Restaurants”. Farmtotableonline.org. 20th April 2011. http://www.farmtotableonline.org/2011/04/exploring-denvers-real-food-restaurants/ Colorado Department of Agriculture-Markets Division. Farm Fresh Directory. (http://www.ag.state.co.us/mkt/farmfresh/farmersmarkets.html (accessed April 2011) USDA Agricultural Marketing Service. Farmers Market Directory. http://www.ams.usda.gov/farmersmarkets/map.htm (accessed April 2011) Read More