Kings Meal Restaurants Concept - Business Plan Example

Kings Meal Restaurant Business Plan Prepared by:             Address:       Phone:       Fax:       The contents of this document are the property of Kings Meal Restaurant and cannot be copied, released or used for any purpose unless authorized by Kings Meal Restaurant. All intellectual and property rights remain with the property holder. Contents Executive Summary 3 Vision Statement 3 Business Concept 3 Business Goals and Objectives 4 Market Plan Summary 4 Operational Plan Summary 4 Financial Plan Summary 5 The BUSINESS Plan in detail 6 Business PROFILE AND SWOT Analysis 7 SWOT 7 MARKET RESEARCH & ANALYSIS 8 COMPETITOR ANALYSIS 9 CUSTOMER ANALYSIS 10 SUPPLIERS 10 ORGANISATIONS AND NETWORKS 11 RESEARCHING FUTURE BUSINESS OPPORTUNITIES 11 Marketing Plan 11 MARKETING OBJECTIVES FOR YEAR 11 Market Niche 11 Pricing Policy 11 Promotional and Advertising Strategies 12 Promotional Plan 12 Organisational Information 13 Human Resources 13 Financial Plan 15 Executive Summary Vision Statement Kings Meal Restaurant focuses on delivering international cuisine and an experience to remember to almost all customer groups. It shall try to deliver value in the fine dining experience. Mission Statement Kings Meal Restaurant’s prime focus shall be on customer satisfaction. It shall target all groups of people, young and old, families and couples, singles and children and aim to provide great food that that leaves everyone satisfied and wanting to come back again. In achieving this objective, Kings Meal Restaurant shall not forget its employees. Each one shall be special and it would hold employee welfare as important as its primary task of catering food. Our aim shall be to have a variety on our menu, a great ambience, friendly staff and an overall great dining experience. Business Concept Kings Meal Restaurant will be an LLC backed by the founder of Melinda catering, Melinda Crow. It shall be a 50 seat eatery delivering a fine dining experience. It shall also have a 20 seat capacity lounge and shall primarily serve Mediterranean Cuisine with a touch of Asia. The restaurant shall be located on North Tce in Adelaide. This is an ideal location for setting up the restaurant because of it is located in the heart of North Adelaide and also close to an upcoming resort that shall act as a crowd puller. The place also needs a cosy dining area for those who come to relax. It shall be a perfect set up for meetings, dates, quick bites and drinks with luxurious and comfortable furnishing. The restaurant as well as the lounge shall be open 7 days a week. Menu shall be an inspiration from Mediterranean specialities like Islander Steak, Fish Carpaccio, Pizza, Tordos, and Hot Cheese Salad etc. Asian influences shall include Sushi, Tandoori, Tofu and Chicken based dishes. Pricing will be based competitively but Kings Meal shall try to deliver more of value to customers rather than cost benefits. The management team shall comprise experience staff and specialists for different areas like menu, catering, cooking, customer service, design, event management and finance. The restaurant has a special backing from the established catering company, Melinda Catering based in Adelaide. Business Goals and Objectives Kings Meal Restaurant’s short term objectives include 1. To remain a small restaurant that provides top notch quality food. 2. To keep food cost below 37% of revenues The restaurant’s long term objectives include 1. Maintain at least 12% ROI (return on investment) 2. Maintain average annual sales between $1,000,000-1,500,000. As a part of the 12 month objective, Kings Meal Restaurant plans to 1. To keep labour cost within the range of 25-30% of the revenue. 2. Expand to North Adelaide and Wingfield. Market Plan Summary The restaurant is located close to many places of tourist interest. The primary target of Kings Meal was to attract these tourists. Secondly, the location also has a college area in the vicinity. The restaurant plans to double up as a teenage hangout and the place to be for young college goers. Lastly, since it is located in the heart of North Adelaide, Kings Meal shall offer menus such that it would pull resident population, within at least the 5 mile radius, for repeat visits(OByrne, 2010). Operational Plan Summary Catering shall account for a large part of restaurant business owing to investor backup and established clientele. Apart from daily restaurant servicing to customers, the restaurant also plans to host events, birthday parties, dinners etc and strive to make it the most memorable day for their clients. Special theme nights where everything in the restaurant shall go as per the theme shall be organised weekly. Within the restaurant, in house chefs and managers shall decide and prepare cuisines to cater to customers that visit Kings Meal Restaurant. Financial Plan Summary As per expertise received from Melinda catering, who is also investors to Kings Meal Restaurant business, the start-up expenses shall be about $228600. Finance shall come from a loan of $150,000 from Bank of Australia at an interest rate of 7%.Melinda Catering shall invest about $60,000 while remaining funds shall be sought from other private investors. As per the investor policy, high returns shall be promised but since the restaurant business start-ups are a little jittery in the beginning, initial returns shall depend on the operational cash flows. Only after operation requirements are met, the investor returns shall be distributed. As we progress, rate of return shall become more stable. The BUSINESS Plan in detail Business PROFILE AND SWOT Analysis King Meal restaurant shall be unique in North Adelaide because of the unique blend in international food preparation. Also, North Tce area shall have its very own lounge restaurant. The food will be of excellent quality but it is comfort that shall act as a major attraction for Kings Meal. Kings Meal Restaurant shall try to serve exclusive and traditional Mediterranean and Asian dishes along with those menus that have slight influences of the two types to overcome any threat that might arise from such experimentation. To overcome competition from neighbouring restaurants Kings Meal shall try to deliver value in the fine dining tradition by excellent service, friendly staff, regularly updated menu’s, and Mediterranean and Asian music for entertainment. SWOT Strengths 1. An already established clientele from Melinda Catering. 2. International menu and seafood appeals to a wide range of clients. Weaknesses 1. Fairly new to the restaurant business 2. Fairly inexperienced wait staff Opportunities 1. Delivering innovation in terms of theme nights. 2. Advantageous location promising to be a crowd puller. Threats 1. Competition from established dining restaurants serving international cuisine in vicinity. 2. Experimenting with the culmination of Asian cuisine with a Mediterranean menu MARKET RESEARCH & ANALYSIS Industry Groups Key groups that influence Kings Meal Restaurant 1. Stakeholders – It is the interest of shareholders that drives running and smooth functioning of business with their decisional and financial backing 2. Customers – Tastes and preferences of customers should be ;largely met by Kings Meal in order to run successfully. Industry Key Success Factors Key success factors to successful running of business are 1. Good food. 2. Great ambience. 3. Friendly staff. Industry Trends and Seasonal Factors The food business is such that it does not face much slack in demand in any season. It is a good that will always have a good demand. Seasonal fluctuations are little and primarily skewed to peaks in demand that slumps. During the holiday season, demand rises for the restaurant business. People celebrate, relax, and want to experiment different eating joints. Also, there isd and outpour of tourists during the festive occasion. Weekday dinners are not as popular as weekend night outs. Market Size The total population in Adelaide is 1.203 million people. (QZPM, 2011) Market Segmentation The type of food and environment offered at Kings Meal Restaurant shall attract people from all religions, gender, ages and food habits. There is no specific target segmentation in variety of people. Target Market/s Our primary geographical targets shall be North Tce and the surrounding areas of War Memorial Road, Kent Town, South Tce, and Victoria Park Racecourse. 50% of the people residing in close locations fall within the 25-50 age bracket. This group of people dine out more than twice a week spending approximately $800 a month. Also, there are more than 300,000 Europeans and Asians living in Adelaide. Mediterranean and Asian cuisine will attract both of the customer segments. COMPETITOR ANALYSIS Competitors There are three eating joint near our chosen location in North Tce, Adelaide. The 1st one is a 60 seat budget restaurant that serves Australian food and remains pretty busy during lunch hours. The 2nd one is a posh lounge bar cum cafe that remains open 7 days a week and serves only fast food. The 3rd is an upmarket Swedish – Australian restaurant that offers fine dining experience. Competitors’ Business Locations These 3 restaurants are located along War Memorial Road which is 7 miles from North Tce. The reason behind the choice of North Tce was that people had to commute that long a distance to eat. Also redevelopment in this area appeared as an inviting opportunity The main competition that Kings Meal faces is from casual dining and fine dining food joints. The choice is between service and price. However if both come together, nothing can stop successful operations. To overcome this competition the restaurant shall try to deliver value in terms of best food, best price and best service to its clientele (Abrams, 2003). CUSTOMER ANALYSIS Competitive Advantage Theme nights like Lover’s Day for youngsters, Barney’s Day for children etc shall be the USP that will set Kings Meal apart from other restaurants. Each theme will have a different interest group ensuring continued popularity and footfall. Selling Points Asian influence to Mediterranean cuisine shall be the main selling point for the restaurant. With experienced chef and management, we hope to deliver exceptional taste and experience (Pinson, 2008). Customer Profile Target customers shall be people of all age groups and streams of life that have a fetish for eating Product / Service Mix Kings Meal restaurant shall blend Mediterranean cuisine with Asian influences. It shall also offer traditional Mediterranean and Asian cuisine for the authentic connoisseur. The lounge menu shall keep a good mix of beverages with popular appetizers to go with it. Customers’ Buying Motives Customers are expected to eat at Kings Meal restaurant for the following motives 1. To experiment authentic Mediterranean and Asian cuisines 2. To relax in a comfortable ambience 3. To experience Asian and Mediterranean evening entertainment. 4. To have great food and an overall great evening. Customers’ Buying Frequency Australia is the third fattest country in the world. They are gradually shifting their eating habits to becoming lean and thin. This has not, however, diminished their liking for eating in restaurants because restaurants are also now meeting their demand for to healthy food. An average Australian spends $32 per week on eating outside which is about 5% of their total weekly spending. They spend an additional $19 or 3% of total weekly spending on entertainment (Moneysmart, 2012). SUPPLIERS Kings Meal shall use the sources from Melinda Catering for its restaurant food and beverage needs. ORGANISATIONS AND NETWORKS The restaurant plans to be a standalone outlet in North Tce for the first few years of business. It shall continue to grow and promote with support from Melinda catering. RESEARCHING FUTURE BUSINESS OPPORTUNITIES After successful establishment and running, Kings Meal Restaurant plans to open outlets in North Adelaide and Wingfield. The restaurant is located close to a commercial area. Kings Meal plans to strike deals with business houses to cater their meetings and conferences regularly. Marketing Plan MARKETING OBJECTIVES FOR YEAR Kings Meal restaurant targets to cater largely to local residents and tourist population. Each one in this large group of people shall feel comfortable and welcome through the ambience of the restaurant. The idea shall be to have something every day for each one that steps in (Daniels, 2002). Market Niche Kings Meal restaurant targets frequent restaurant goers that include everyone between the ages of 25 and 60. Such niche shall have tourists, businessmen, professionals, couples, families and obsessive spenders. Primarily, group of people with an annual income of $30000 and above would like to spend repeatedly for great food, comfortable ambience and good service. Pricing Policy Kings Meal LLC aims to source 85% of its earnings from the restaurant business and 15% from outside catering in the initial year. As a part of the pricing policy, Kings Meal shall keep its prices at par with other upscale restaurants in North Adelaide. It shall focus more in delivering value to its customers in terms of quality food and good ambience for smart prices. Promotional and Advertising Strategies Promotional strategy for Kings Meal restaurant is simple. It is to offer excellent food and a great ambience that will automatically generate strong word of mouth publicity. Promotional Plan The primary marketing mode shall be word of mouth. However, as a start up, we plan to distribute leaflets of the grand opening ceremony for Kings Meal Restaurant to the clientele of Melinda catering. Such advertisements shall also be done in local stores and media. Theme nights shall be advertised on the local FM and newspapers. Also, a dedicated website of the restaurant shall be regularly updated with upcoming events and day’s specialities. Organisational Information Melinda Anderson, owner at Melinda catering shall oversee and manage the restaurant. As a head chef, she shall decide over the menu and dish preparations. Human Resources Key Roles and Responsibilities To start operations, the restaurant has to initially hire 10 staff which shall include the Restaurant Manager, Financial Manager, Production Manager, Sales and Marketing manager, Service Manager and 5 wait Staff and Janitors. Restaurant Manager shall look over the overall operations of the business. Production manager would look and food production and quality. Service manager would be dedicated towards training staff and looking at restaurant and catering service. Sales and Marketing Manager would be responsible for promotional activities and event management for the restaurant Financial Manager would look at overall restaurant finances. With time, only the number of Wait staff and Janitors shall increase depending on the demand. Rates of Pay Staff FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Restaurant Manager $15,000 $27,000 $31,000 $41400 $56000 Financial Manager $15,000 $27,000 $30,000 $41400 $55000 Production Manager $15,000 $27,000 $30,000 $41400 $55000 Sales & Marketing Manager $15,000 $27,000 $30,000 $41400 $55000 Service Manager $15,000 $27,000 $30,000 $41400 $55000 Wait Staff 5 X $5000 = $25,000 5 X $7000 + 5 X$6000 = $65,000 5 X $9000 + 5 X $8000 + 2 X$7000 = $99,000 5 X $10000 + 5 X $9000 + 2 X $8000 + 4 X $8000 = $143000 5 X $12000 + 5 X $10000 + 2 X $10000 + 4X$10000 + 6 X $9000 = $224,000 Total:- $ 100,000 $ 200,000 $250,000 $350,000 $500,000 Financial Plan Pro Forma Cash Flow Statement FY2013 ($) FY20104 ($) FY2015 ($) FY2016 ($) FY2017 ($) Cash Received From Customer 252000 610000 835000 1575000 2200000 Cash Given To Suppliers -68750 -157500 -212500 -440000 -600000 Closing Stock (S. T. Assets) - 13650 12150 12150 6200 Payments (Wages + Bonus) to & on behalf employees -115000 -230000 -287500 -402500 -575000 Other Operating Expenses: Rent Paid 12000 12000 12000 30000 50000 Business Rates Paid 2000 4000 6000 10000 15000 Website Creation charges Paid 100 - - - - Marketing & Advertising 100000 150000 200000 300000 400000 R & D Charges - 5000 30000 100000 150000 Insurance Paid 5000 5000 5000 8000 10000 Utilities Paid 3400 4400 5400 7400 8400 Petrol Expenses Paid 10000 20000 35000 50000 70000 Maintenance Charges Paid 2000 3500 5000 6000 6500 Legal Charges Paid 1000 1500 2500 5000 7000 Miscellaneous 2700 8500 10000 20000 30000 Total Operating Expenses -138200 -213900 -310900 -536400 -746900 Net Operating Cash Flow -69950 22250 36250 208250 284300 Investment in Fixed Assets Machinery 5500 - - 15000 - Office Furniture 3600 - - 7000 - Delivery Vans 16000 - 8000 20000 - Net Cash Flow -95050 22250 28250 166250 284300 Financing Cash Balance 300000 204950 227200 255450 421700 Net Cash Increase for the year $204,950 $227,200 $255,450 $421,700 $706,000 Pro Forma Profit and Loss Account FY2013 ($) FY20104 ($) FY2015 ($) FY2016 ($) FY2017 ($) Sales Revenue 267000 630000 875000 1575000 2275000 Direct Cost of Sales -93750 -187500 -262500 -440000 -650000 Less Closing Stock 13650 12150 12150 6200 6200 Gross Margin $186,900 $454,650 $624,650 $1,141,200 $1,631,200 Percentage Gross Margin 70% 72.17% 71.39% 72.46% 71.70% Expenses: Wages 100000 200000 250000 350000 500000 Marketing & Advertising 100000 150000 200000 300000 400000 R & D Charges - 5000 30000 100000 150000 Depreciation Charges: Machinery 1100 1100 1100 4100 4100 Furniture 720 720 720 2120 2120 Delivery Vans 3200 3200 4800 8800 8800 Website Creation Charges 100 - - - - Maintenance Charges 2000 3500 5000 6000 6500 Utilities Payable 3400 4400 5400 7400 8400 Insurance Payable 5000 5000 5000 8000 10000 Rent Payable 12000 12000 12000 30000 50000 Business Rates Payable 2000 4000 6000 10000 15000 Payroll Burdon (Bonus) 15000 30000 37500 52500 75000 Petrol Expenses 10000 20000 35000 50000 70000 Legal Charges 1000 1500 2500 5000 7000 Miscellaneous 2700 8500 10000 20000 30000 Total Expenses -258220 -448920 -605020 -953920 -1336920 Operating Profit -71320 5730 19630 187280 294280 Net Profit ($71,320) $5,730 $19,630 $187,280 $294,280 Pro Forma Balance Sheet FY2013 ($) FY20104 ($) FY2015 ($) FY2016 ($) FY2017 ($) Long Term assets: Machinery, Furniture & Vans 25100 25100 33100 75100 75100 Accumulated Depreciation -5020 -10040 -16660 -31680 -46700 Total Long Term Assets 20080 15060 16440 43420 28400 Current Assets: Accounts Receivable 15000 35000 75000 75000 150000 Stock at cost 13650 12150 12150 6200 6200 Cash 204950 227200 255450 421700 706000 Total Current Assets: 233600 274350 342600 502900 862200 Current Liabilities: Account Payable -25000 -55000 -105000 -105000 -155000 Net Current Assets: 208600 219350 237600 397900 707200 Capital Employed 228680 234410 254040 441320 735600 Long Term Liabilities - - - - - Net Assets: $228,680 $234,410 $254,040 $441,320 $735,600 Owners Equity: Paid-in Capital 300000 300000 300000 300000 300000 Accumulated Profits -71320 5730 19630 187280 294280 Retained Earnings - -71320 -65590 -45960 141320 Net Worth $228,680 $234,410 $254,040 $441,320 $735,600 (Greenwood, 2002) Reference List Abrams, R., 2003. The Successful Business Plan: Secrets and Strategies. California: The Planning Shop. Daniels, P., 2002. Restaurant business start-up guide: a complete guide to establishing your business. California: Juice Gallery. Greenwood, R. P., 2002. Handbook of Financial Planning and Control. Burlington: Gower Publishing Company. Moneysmart., 2012. Australian Spending Habits. [online] Available at: < https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australian-spending-habits> [Accessed 4 November 2013]. OByrne, D., 2010. South Australia: a Lonely Planet Australia guide. Melbourne: Lonely Planet Publications. Pinson, L., 2008. Business Plans: A Step By Step Guide. California: Out of Your Mind and Into the Marketplace QZPM., 2011. North Adelaide Demographics (SA) Local Stats. [online] Available at: < http://localstats.qpzm.com.au/stats/sa/adelaide/adelaide/north-adelaide> [Accessed 4 November 2013]. Read More