Street Food Restaurant Business Group Marketing and Management - Case Study Example

Group Business by Introduction The business planning process is an integral part of the initial strategy in setting up a new business. The success of a business depends on effective business planning processes. This begins with an unbiased, honest appraisal of the current business situation and the target market. This is the situational analysis. This includes an analysis on the available opportunities in the market, identification of the current market trends, competitor analysis and an analysis of the strengths, weaknesses and threats that may face the business in the future. The next step in the business planning process is the determination of the direction of the business. This includes creation of the vision and mission statements that will offer motivation and direction and setting up goals and objectives using the SMART criteria (Specific, measurable, attainable, realistic and time specific). The elements of a business plan include the executive summary, description of business, the marketing plan and strategies, analysis of the competition, an operations plan, management plan and the financial data (Blackwell, 2008). Executive Summary Street Food will be a group owned food outlet that will bring the experience of good street food into a restaurant. The restaurant owners are a group named the ‘Gastronauts’. The members of the group are Kieran Thompson, Jonathan Sainsbury, Jade Hunter, Oliver Ashmore, and Asma Muhaiza. The food outlet will take the concept of street food and incorporate it into the restaurant environment. The creative approach of this business concept will involve tailoring the company image and presentation of a varied cuisine selection in a comfortable and peaceful environment for the patrons. The restaurant will offer excellent food at valued pricing in a fun, relaxed atmosphere. It is an answer to the increasing demand for fast food in urban areas. The restaurant seeks to eliminate the discomfort of consuming this food on the go, while walking or near disintegrating vendor establishments. This restaurant seeks to provide this service while eliminating all the disadvantages of eating out at a restaurant or at a food vendor. The need for reservations and queuing outside restaurants will be outdated. The main aim of the group is to take the growing market trend of eating fast food and developing it further while taking into account the increasing demand and growth of street food operators in most urban areas. It will provide the patron with value for their money. The group has focused its efforts to provide the same good food in a comfortable place and on fine dinnerware. This business plan will outline a location that will entice the public with its convenient and innovative environment, good food and a selection of unique sauces. Business Description The Street Food Restaurant will be a forty seat-dining establishment with an adjacent lounge area. The focus on the menu is on providing a variety of different cuisine similar to that of street food vendors. These include Thai, Chinese, Moroccan, Vietnamese, American and British. The inspiration for the menu will come from various countries. This will appeal to a diverse clientele. The restaurant will be located in a fine, booming and a rapidly expanding city with a lot of pedestrians and office blocks. An area that is in need of a warm, cosy and friendly restaurant that offers a variety of good food. The group will use comfortable furnishing and elegant decor with soothing undertones. The future of the restaurant is promising, as the perfect, quiet place to grab a bite. Establish a place where people will get the best of everything with no monotony. The business plan also offers catering services to cater to the needs of the people who would like a variety of food at their events. Marketing Strategies The restaurant will do well in the market because it is a new, creative and innovative idea providing the patrons with a much-needed comfortable atmosphere. The restaurant will stand out due to its contemporary approach and the variety of cuisine available. The experience promised to the patrons will differentiate this restaurant from its neighbours. The diversity offered in the menu will appeal to a varied clientele. The brand will be an international restaurant with a fun and interesting twist. The quality of food is an important marketing tool. Provision of delicious quality food at affordable prices will appeal to the market. The product is great food, good service and an unforgettable atmosphere. Cost control measures are another important marketing tool. The restaurant must strive to carry out cost control measures to keep the prices down. These measures will allow the restaurant to maintain a competitive advantage. The management will organize a launch party that will allow the public to be acquainted with the food and the atmosphere in the restaurant. This will be at subsidised costs only charging a small entrance fee. Interactive activities with prizes involving free dinners or complimentary goods at the restaurant are an incentive. The restaurant will set up exciting theme nights exciting to attract new customers (McKeever, 2002). The company success will follow a simple strategy. The restaurant will seek to provide excellent varied food choices while ensuring the maintenance of quality. The company will establish a market brand and identity in the community. This will establish and execute the strategy of word of mouth as an important marketing tool. The restaurant will publish and distribute marketing brochures in large hotels, bed and breakfast areas, supermarkets and newspaper vendors. These will contain a brief description, pictures of the establishment, the menu and the prices. Placing advertisements on local media and in newspapers will deliver the restaurant to various people. The use of a direct mail sent to patrons in provision of catchy information. The restaurant should create and establish a company website. The patrons can make reservations and view theme night information. Competitor Analysis The main competitors in the area that may cut into the restaurants market share are Hix Fish Dog, Pizza Pilgrims, Homeslice, MeatWagon, Flat Iron, Patty and Bun and the Street Kitchen. Management Summary Keirian Thompson will manage the restaurant and act as the director for the investment group. The head chef will be Jade Hunter. Oliver Ashmore is in charge of the financial aspects of the restaurant. This includes bookkeeping and cost control measures implementation. Jonathan Sainsbury will act as the marketing director in charge of the creation and delegation of marketing strategies. Asma Muhaiza will be in charge of the human resources department. She will deal with employing chefs, the waiting staff and suppliers. Financial Plan The start-up capital needed for this amounts to a total of 40,000 pounds. This involves the funds needed to rent and renovate the premises for the restaurant. This includes the capital needed to acquire kitchen equipment. Extra funding amounting to approximately, 35,000 pounds needed for food and restaurants supplies, legal fees, liquor licenses, marketing and advertisements as well as personnel salaries. The financial plan depends on a variety of assumptions. These are the assumption of a slow growing economy without any major recessions, no changes in the popularity of the restaurant, and access to funding is sufficient to sustain and fulfil the business plan (Abrams, 2003). The business operation costs for the business will include fixed occupancy costs. The costs associated with the building housing the restaurant. The costs include the lease payments for the kitchen equipment running at 8,000 pounds per month, the rent amounting to 9,000 pounds per square foot, the maintenance and cleaning costs of 500 pounds per day, the liquor liability at 900 pounds per month and the insurance premiums amounting to 1,500 pounds monthly. Depreciation and amortization refer to the non-fixed costs that the restaurant will incur. These include lease changes and improvements, building costs, furniture and equipment upgrades and the costs before the opening of the restaurant. These costs change on a monthly basis and are unpredictable. The company will create a financial cushion to cater to these costs. They include destruction to property, broken kitchen equipment and costs of expansion to the location or the menu. The financial plan must include the breakeven analysis with the expected running costs being employee payroll, rent, water, electricity and other utilities. The financial plan will include projected losses and profits that the business may incur. The company will project month-by-month assumptions and figures to make the business plan complete (Barrow, 2012). Conclusion The business group does not attempt the venture anticipating failure. Although, the group has to outline an exit strategy for a business plan to be complete. In the event that Street Food cannot achieve expected profitability, the group will attempt to sell the restaurant and use the returns to clear any debts and balances with vendors and other bills. If the group is unable to succeed in the sale, they will default and the bank may foreclose on the establishment. The investors and bank will clear the outstanding balances (Young, 2007). The business planning process is a resume for the Street Food restaurant. It is for use by the group investors to obtain guidance in the day-to-day running of the business and to pitch the idea to the potential investors who contribute funding. Bibliography Abrams, Rhonda. 2003. The Successful business plan. Planning Shop Press. Barrow, Colin. 2012. Business plan workbook. Kogan Page. Blackwell, Edward. 2008. How to prepare a business plan. Kogan Page. McKeever, Mark. 2002. How to write a business plan. Nolo Publishers. Young, Paul. 2007.Business Plan. Global Media. Read More