Strategy for Best Restaurant - Business Plan Example

Best Restaurant Business Plan Table of Contents Executive Summary....................................................................................................................2 2.Vision and Mission Statement ....................................................................................................2 3. Company Overview ...................................................................................................................4 4. Product and Service Plan ...........................................................................................................5 5. Marketing Plan ...........................................................................................................................6 6. Management Plan ......................................................................................................................7 7. Operating Plan............................................................................................................................9 8. Financial Plan.............................................................................................................................11 9. Work Cited ................................................................................................................................12 Business Plan A business plan documents the vision and goals of a given business, the areas where the business has strengths and opportunities that will allow it achieve the goals, and the strategies that will be implemented by the business in the achievement of its goals and strategies (Abrams, 4). The aim this study is the development of a comprehensive business plan for Best Restaurant, a sole proprietorship startup company at Ann Arbor Michigan. 1.0 Executive Summary Best Restaurant’s aim is to be the leading restaurant in the Ann Arbor Michigan locality within three years of its start. The main offerings of Best Restaurant will include full course meals, specialty coffee, soft drinks, and other food offerings to meet the needs of the client served in a great atmosphere with excellent customer service. The strategic location of Best Restaurant on 1201 South Main Street, Ann Arbor Michigan is meant to tap on the high student population from the University of Michigan, Michigan community members, attendees to games played at the Michigan stadium, teachers, and visitors to the University of Michigan as well as visiting students from other campuses to the University. From a strategic analysis of the area prior to the start of the business, there is less competition in the area owing to the high population numbers in the area especially when the University of Michigan is on session and when games are played in the Michigan stadium. Vision and Mission Statement Mission Best Restaurant aims at being the best restaurant in the Ann Arbor Michigan locality in a span of three years. Best Restaurant aims at matching an increase in the employee numbers in accordance to augmented market share and profitability of the business. Vision The vision of Best Restaurant is to cut a niche for itself among the best restaurants around Michigan within four years and maintain that sport thereafter with a great emphasis on ensuring the best customer care provision, high quality, and variety of food, and a differentiation from other firms to ensure this vision is achieved. Training and development of employees for great service delivery, the focus on strategic market segments, and strategic implementation will be the focus of Best Restaurant in achieving best status in the area. The benefits to society that will be accrued from the establishment and success of Best Restaurant include access to quality food, creation of employment opportunities, and increasing the bar on great service and customer experience in restaurants in the Michigan locality and beyond. Objectives Best Restaurant has some objectives to achieve during its time as a sole proprietorship and achieve success in the Ann Arbor Michigan area including: 1. Achieve a 50% market share in the Ann Arbor Michigan area within four years of operation 2. Provide optimal solution to ensure meeting client expectations and objectives is the aim of each employee and management of Best Restaurant at any given time 3. Reliably ensure the needs of the students, teachers, visitors, game audience, and scholars from the university get their daily source of nutritious, quality, and mouthwatering servings to ensure they always come back Keys to Success The key to success principles for adherence at Best Restaurant is innovation, quality, and great service delivery. These are achieved through: 1. Commitment by all the members of Best Restaurant to adhere to great service provision and maintenance of professionalism at every time 2. Emphasis on augmenting the bar on great service delivery with each customer experience through training employees on customer service and presentation skills to augment their productivity and service delivery 3. Competitive pricing of food, drinks, and services and through great service delivery and quality provision exceed customer expectations owing to the belief of Best Restaurant that a returning customer is one who is satisfied 2.0 Company Overview Best Restaurant is registered under the Michigan business names and is located on 1201 South Main Street, Ann Arbor Michigan for the last one month as a sole proprietorship. It has gained a small loyal client base, has achieved publicity, and generated a high amount of knowledge between the student and teaching population owing to high quality service provision and word of mouth advertising by those who have already eaten at Best restaurant and experienced great service. There have not been any changes in the ownership of the company so far and Best Restaurant is at the stage 3: profitability and stabilization stage of business development owing to increasing market share and augmenting employee numbers. The restaurant industry is strong and is poised to remain so in future owing to changes in the workplace requiring workers to eat out and according to NAMA away from home meals will increase by 53%. There is a greater demand for quality provision to meet increasing demand for restaurant food and this will result in increased margins especially for high quality branded products. Best Restaurant natures of business are provision of meals and services to consumers in both takeaway and consumption within the restaurant. The primary products and services are food varieties to meet consumer needs, soft drinks, coffee, and services such as customer service, delivery of food to their locations especially houses, and hostels lived in by students and students from University of Michigan. Best Restaurant customers include teachers, University of Michigan students, and Michigan community members, attendees to games played at the Michigan stadium, teachers, and visitors to the University of Michigan as well as visiting students from other campuses to the University The distinguishing feature of Best Restaurant is great service, variety offering, and high quality provision (Ford, 28). Best Restaurant is a sole proprietorship but with all intention of public trading within the shortest time after successful establishment. 3.0 Product and Service Plan My idea for Best Restaurant came up from an unmet need when I could not access quality variety food served in a restaurant with great service and I decided to meet the need. The products are at the introduction stage with the main features being quality and variety with the benefits to the consumers as high nutrition, better health care, and reduction of possibility of eating junk foods in fast food stores. The product strategies employed at Best Restaurant are bundling where two or three items are offered for one price or two items and a beverage and presenting to-go items for the customers to eat later at their homes or job places. Product packaging for to-go items will have the logo and designs of Best Restaurant with the motto and value system in the restaurant embedded (Ford, 42). Warranties will be a full refund or change for any meal that does not meet the requirements and quality provisions at Best Restaurant and that of the customer for all the products offered. Pricing Plan The pricing plan implemented at Best Restaurant is one percent higher prices than those offered at other restaurants in the area owing to the high quality, conducive atmosphere, and great service that the customers are willing to pay more to receive. Cost considerations include inventory costs, operational costs, marketing, and distribution costs. Marketing and operational managers will communicate effectively through weekly meetings and updates on their different fronts and aim at maintaining synergy for the benefit of the business. Since it is a restaurant, there is no credit policy, as all the payments will be made on cash basis to enable the business to meet its margin but this will be considered in future when the business has developed a loyal customer base. 4.0 Marketing Plan Best Restaurant customers include teachers, students, community members, and visitors of the Michigan area. The benefits to the consumers as high nutrition, better health care, and reduction of possibility of eating junk foods in fast food stores. The possible risk factors of the market environment include a recession or slow economic growth where the customers will not be able to afford our products resulting in low sales and revenues. The environmental factors in the market environment is a reduction in sales during winter periods due to low movement of people, reduced access to supplies, and lack of market. Surveys and demand forecasting will be used in getting a measure of the demand requirements in the area. The results show an increasing demand in the Michigan area for high quality food served in a clean atmosphere. The restaurant industry is strong and is poised to remain so in future owing to changes in the workplace requiring workers to eat out and according to NAMA away from home meals will increase by 53%. There is a growing demand for outdoor food that is of high quality served in a serene environment. The main competitors are hotels, restaurants, fast food shops, and beverage makers. Their strengths include early market entry, market share, and customer loyalty while their weaknesses are lack of specialization and inadequate marketing (Abrams, 24). Quality and great customer service are the main distinguishing features of Best Restaurant products. New entrants in the hotel and hospitality industry are poised to be new competitors but Best Restaurant but it aims at putting the bar for quality food and great service higher each year to improve its status in the market. 5.0 Management Plan Best Restaurant active management members include: Restaurant manager Mr. Abraham Maslow is the restaurant manager having been at the helm of restaurant businesses for 12 years in the Michigan area and has a bachelor in Hospitality and Tourism Management. He is responsible for the daily running of Best Restaurant. Operation manager A diploma holder in operations manger from Oxford College, Vincent Brains is the operation manger tasked with ensuring all business operations are scheduled and running well at Best Restaurant. Marketing Manager Nancy Queen is the marketing manager, has three years experience in hospitality manager after completing her bachelor in commerce, and is responsible for the promotional and marketing aspects of the business. Currently there are two directors in the company: The first director is William Levy the head manager of Lucky Restaurants Limited who has 12 years experience in hotel management, tourism, and hospitality industry. He is a long servant in the hospitality industry and has an in-depth understanding of restaurant business. The second director is Allan Percy, Union Bank manager who has a master in business administration fiancé option and 14 years experience in the banking industry. There advice and insight have enabled Best Restaurant to meet its needs as a start up business. Employees at Best Restaurant should have minimum qualifications depending on their area of specialty and have to undertake a one month mandatory training to ensure the virtues and cultures of Best Restaurant are inculcated in their work performance and ethics (Burns, 12). Future recruitment plans include ensuring all employees have a basic degree in their specialty for high quality provision and specialization. Compensation and benefits plans are best on the qualifications of the employees, management and board and ensuring they are consistent with the generally accepted pay packages in the Michigan area to ensure adherence to minimum wage legislation and generate loyalty. The management style is employed at Best Restaurant is democratic leadership through involving employees in decision-making (Burns, 22). The decision-making process is a consultative one where consultations are made at all the processes of making decisions from employees to the management. Personnel motivation is done through provision of training and personal development opportunities, bonuses for excellent work performance, and pay hikes consistent with performance. Creativity is encouraged through recognition and compensation for creativity at the workplace. Loyalty and commitment is encouraged through allowing employee participation in decision-making, incorporating employee feedback in the business, and providing health and retirement packages. Training is conducted after recruitment and every subsequent month in a rotational basis. Job description and employee evaluation is currently conducted by the restaurant manger but will be dedicated to human resource department as the business grows. The strategic alliances in place include that with Best human resource for employee recruitment and it is the aim of the business to establish other strategic alliances. The forms of the alliance is for the benefit of both parties with the responsibilities being the conduct of their par of bargain to the highest quality with the exit strategy being a written notice three months before the exit time. 6.0 Operation Plan Best Restaurant is located on 1201 South Main Street, Ann Arbor Michigan. The main factors considered in the choice of the location were high population, access to supplies easily, visibility to both visitors and community members of Michigan, and low competition in the area. Customer accessibility of very important in the location owing to the need for fast services , as the main customers served are students who do not have much time in searching for restaurants. The tax policies of state and local government include being licensed for the operation in Michigan, filling tax returns forms, and ensuring health checks on both employees and premises are done regularly. The location will be leased for $ 10,000 and is suitable having 3,000 square feet with its design fitting the needs of Best Restaurant as the building was previously a restaurant. The flexibility of locating in a business incubator is low. The major building layout is ensuring there is enough sitting space for customers during busy times and having the patio for summer times will allow for differentiation of product offering fitting the season. The equipments needed for service that have been acquired and operating efficiently include sandwich Express, Fresh Orange Juice Machine, toasters, espresso makers, and Fresh Juice squeezer. Purchasing and Inventory Management All the meals that will be served at Best Restaurant will be served with supplies coming from well established restaurant inventory suppliers in Michigan. The main criteria for suppliers are that they have to have food safety measures, proper supplies handling, timely delivery of supplies, and a good reputation with the consumers. Maintaining a good relation with the supplies will be made through prompt payments as stipulated in the supply contracts, ethical considerations in business, and having constant communication and understanding in case of supply challenges. Best Restaurant functions to be outsourced include hiring of employees and training is conducted by Best Human Resource. Supplies cost can be reduced through purchasing and transporting of supplies from food producing areas in Michigan State. Inventory cost will be reduced through avoiding excess stoking that will result in losses from rotting and ensuring efficient use of inventory and avoid wastage. Ordering inventory that will be used to meet orders, ensure no shortages, and demand forecasting to know demand fluctuations according to season and change inventory accordingly will aid in knowing the optimal inventory level. Maintenance of current and detailed production process records will aid in inventory tracking, customer records, and feedback and allow for improvement in efficiency of the production process and meeting client needs. Manufacturing Operation Achievement of quality goals will be made through conducting of scheduled two-weekly employee training on quality management, customer service, and inventory handling techniques, and sourcing of supplies that meet high quality needs of the business. The inspection process will be conducted often by the health inspectorate team for safety, quality standards and employees will be expected to perform at their best and compensation, and incentive system for better quality delivery will be provided to employees. Statistical methods for quality control are ratings by both the health inspectorate department and management on quality of food and services at Best Restaurant. Cooking of main course meals will be done in the morning while maintenance and quick fix foods will be done in the course of the day and when required by the clients. Improving future productivity will entail augmenting employee productivity, increasing the efficiency and quality of machines used in the production process, and increasing employee numbers ensuring specialization. 7.0 Financial statements Assumptions The table below presents the assumptions made by the company in the preparations of the financial statements FY 2014 FY 2015 FY 2016 Plan 1 2 3 Current Interest Rate 10% 10% 10% Long Term Interest Rate 9% 9% 9% Tax Rate 24% 24% 24% Works Cited Abrams, Rhonda M. The Successful Business Plan: Secrets & Strategies. Palto Alto, Calif: Planning Shop, 2003. Print. Burns, Paul. Entrepreneurship and Small Business. Basingstoke, England: Palgrave, 2007. Print. Ford, Brian R, Jay Bornstein, Patrick T. Pruitt, and Eric S. Siegel. The Ernst & Young Business Plan Guide. Hoboken, N.J: J. Wiley & Sons, 2007. Print. Read More