Fast Food Restaurant - Business Plan Example

FAST FOOD RESTAURANT BUSINESS PLAN Business Plan 0 Executive summary Fresh Fries is an eating establishment dealing with fast foods in Liverpool, along Mcnon road. It will be specializing in fast hot or cold food, salad, and sandwiches. Based on our menu, Fresh Fries will follow a different strategy, which will offer unique and hard to get choices to fast food cravers. Keys to success of Fresh Fries will be a repeat business, convenient location, and unique services. Mr. and Mrs. John, providing $30,000 capital investments and an extra $20,000 raised by the short-term loan, will own the company. There is a lot of competition is this market. To overcome this competition, the company has acquired a convenient locality and intends to offer the best services in order to attract maximum number of customers. The company plans to have a comprehensive advertising, marketing, and promotion campaign. The campaign will be done via radios, billboards, printed material and discounts. 1.1 Key success Repeat business- Each customer who comes in once would wish to return and recommend us. Location- Convenience and vicinity are essential to us. 1.2 Mission Fresh Fries will be an upscale fast food industry. It will follow a differentiation strategy, which will offer unique and hard to get choices to fast food cravers. 1.3 Objectives Fresh Fries seeks to achieve the following goals: Cash flow with self-sufficiency by the start of the year. Repay all the debts by the close of the second year. Sale of up to $600 in the starting year. Sales of over $700 by the close of the third year. 2.0 Industry Analysis In England, the consumer expenditures of fast foods have risen over the years. The escalating number of the new establishments like fancy restaurants, gourmet bakeries, and fast food franchises has shown significant growth in this sector. Food spending is around fifty percent in this sector of the consumer’s expenditure while the leisure and recreation spending are making the up to fifteen percent of the total expenditures. A broader appeal exists in weekend slots, when our target customers enjoy mall-going activities. Our target group constitutes: Age- Single, youngsters, college and high school students. Family unit- Young families. Gender- Our target if both sexes Income- We shall appeal to lower and medium income individuals. Our idea will have very broad appeal. Our objective is to be the chief primary destination of the fast food cravings. According to the public survey of the people of age 15-45 years, 80% of them like fast food. 95% of them like fast food on a daily basis. The study showed why there is escalating popularity of fast food. There are 52 weekends in a year. Most Britons likes window-shopping and usually need a quick bite to sustain them in their undertakings. White-collar offices have stopped offering lunch to their workers; they end up having fast foods for their lunch. 2.1 Marketing segmentation Our target primary market is the youth. Mcnon road is a place where students meet after school. Our secondary target is the working Britons, with many malls in the vicinity; Mcnon road is a haven for job seekers and shoppers. 2.2 Market strategy Fresh Fries intend to cater to the large number of youngsters and the teenagers in England. Our products are offered at fairer prices. We offer more excitement than the rest of our competitors. 2.2.1 Market Needs Fresh fries see the targeted market group as having more English Dollar needs. 2.2.2 Market Trends In the past, Britons preferred west chain restaurants, the time when McDonald’s and KFC had dominated. Trend has shifted, with success of locally grown brands. 2.3 Buying pattern and Competition The rivalry in this arena is the fiercest in all other metropolitan regions of Europe. Liverpool is a compact city but has more to offer. Usually, there are at least two same outlets within a 300 meters radius. This strategy is common due large volumes of people. Retailers do not want to miss sale opportunities since competitors are offering supplements and same product categories. The main competitors are any food outlets within the 300-meter radius. In England, there is competition of foreign and local franchising. 40% of franchising is foreign. 3.0 Market Strategy and Implementation The aim objective of our strategy is to lever our ideal location and fast food into higher profits via sales volume at affordable prices. 3.1 Marketing Strategy Much of our marketing efforts have been mentioned. We focus on making our existence known to people near our location. 3.1.1 Promotion Strategy The company intends to use local radios as a primary means of promotion. In addition, billboards will be put in place; use flyers to air the adverts via TVs and post in the websites. 3.1.2 Positioning Statement Fresh Fries most significant market segment provided by its location would be a business sector. Consumers in this area have limited time for lunch; they require quick dinner with fewer hassles. 3.1.3 Pricing Strategy We focus on offering healthy, quality food that is quick, and with a unique flair. 4.0 Market Analysis Summary Our primary markets comprise: People working in Liverpool, along Mcnon road daytime, who will look for quick food and convenience for breakfast and lunch, Immediate businesses are looking for flash-in lunch for meetings of their enterprises. Students who hang out in the evening after their classes. All these segments constitute of people who flow through this section regularly during a normal workweek. There will be uncertain percentage of the market that shall be looking for an eating establishment, which will cater their requirements of fast service, pleasant environment, and healthy food. Furthermore, Fresh Fries will meet the growing trend of intermediate class of professionals who are looking for the differing fast foods than those of the known food chains. 4.1 Market segmentation Total potential of the market is as shown below in the table. The units of the market are illustrated by the kind of the market point. Table: Market Analysis Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Local businesses 0.00% 500 500 500 500 500 0.00% Local workers 2% 20000 20400 20808 21224 21648 2.00% Other downtown traffic 1% 15000 15150 15302 15455 15610 1.00% Total 1.55% 35500 36050 36610 37179 37758 1.55% 4.2 Target Market Strategy We need to emphasize on particular organizations with specific opportunities. The company has a potential of offering high volume during peak hours. Ms. John has already finished preliminary deals with organic suppliers and growers to cater for the current need for healthier foods. We are projecting to offer healthier fast-food to our customers with the least hassle. We have greater potential for growth in market wise together with quality, service and choice. In the surrounding, our chief rivals are Mc Donald, Subway Sandwiches and Taco Del Mar. 5.0 Management Summary This being a small company, our employee categories entails; kitchen help, clerks, and busboys. Owner founder will be the in attendance at regular working hours that is 7 a.m. - 6 p.m. 5.1 Management Team Ms. John will be in charge of management. She has been in cooking the profession all her life. She has acquired reputation locally in creating tasty and inventive recipes. In the past eight, she was running business-cooking class in her home and her first cookbook will be published next year. 5.2 Management Team Gaps Now the business misses a dedicated accountant and marketing manager. These services to be outsourced effectively require them. 5.3 Personnel Plan Table below shows the personnel plan. Fresh Fries Table: Personnel Personnel Plan Year 1 Year 2 Year 3 Owner/Founder $36,000 $45,000 $50,000 Counter Clerks $72,000 $45,000 $60,000 Kitchen $42,000 $30,000 $35,000 Busboys $36,000 $15,000 $25,000 Total People Nine Nine Nine Total Payroll $186,000 $135,000 $170,000 6.0 Financing and Action Plan The monetary plan depends on the initial capital of the $30000 from the founder in addition to the five-year loan of $ 20000. More as we would wish to bootstrap our business with no investment, it is not just worth it. The plan is relatively conservative], but there has to be money at risk. The loan will be secured with the 6.1 General Assumptions Table: General Assumptions General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% Other 0.00% 0.00% 0.00% 6.2 Start-Up Funding The table below shows the start-up funding plan. Table: Start-up Funding Requirements In Dollars ($) Start-up Expenses Legal 500 Stationery, etc. 300 Rent 1000 Expensed Equipment 3000 Other 1000 Total Start-up Expenses 5800 Start-up Assets Cash Required 28200 Start-up Inventory 0 Other Current Assets 2000 Long-term Assets 24000 Total Assets 54200 Total Requirements 60000 6.3 Break Even Analysis For now, this is the preliminary break even. Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even $39,158 Assumptions: Average Percent Variable Cost 35% Estimated Monthly Fixed Cost $25,275 Break-even analysis graph 6.4 Business Ratios Ideal business ratios are for establishment eating industry. Due to the vast number of this industrial firm, and a variety of the in existence between them, there is variation in industry standard and a particular company like Fresh Fries. However, the ratios indicate the healthy company with appropriate cost liability and asset allocation. References Aswathappa, K. 2008. International business. New Delhi: Tata McGraw Hill Education. Blundel, R. and Lockett, N. 2011. Exploring entrepreneurship. Oxford: Oxford University Press. Blundel, R. and Lockett, N. 2011. Social entrepreneurship. Oxford: Oxford University Press. Firdaus, A. and Kanyan, A. 2014. Managing relationship marketing in the food service industry. Marketing Intelligence & Plan, 32(3), pp.293-310. Global Action Plan: EcoTeams. 2012. Social Business, 2(1), pp.49-59. Longenecker, J. 2010. Small business management. Australia: South-Western Cengage Learning. McIntosh, W. and Cates, C. 2009. Multi-party litigation. Vancouver: UBC Press. Mosley, M. 2013. FAST DIET, THE. Atria Books. Schlosser, E. 2012. Fast food nation. Boston: Mariner Books/Houghton Mifflin Harcourt. Soni, P. and Vohra, J. 2014. Targeting the young food consumer. Marketing Intelligence & Plan, 32(5), pp.630-645. Xu, P., Zheng, S. and Zhou, S. 2010. Family and Western-Style Fast Food: Influences on Chinese College Students Dairy Consumption. Journal of Food Products Marketing, 17(1), pp.1-24. Read More