Gerards Food and Beverage Outlet - Business Plan Example

BUSINESS PLANNING Table of Contents Table of Contents 2 Introduction 3 Gerard’s Food and Beverage outlet 3 Conclusion 7 Reference List 8 IntroductionThe essay would develop a new venture of food and beverage outlet at the Liverpool at the Queensway region on the James Street. The venture is selected to be established at Liverpool for its diverse cultural diversity with a metropolitan population of 466400 as per the 2011 censes activity with about 43% of the population below the age of 30 years, compared to UK’s cumulative average (Edina.ac.uk, 2012). The food and beverage outlet would be given a theme of Liverpool’s famous Football club to attract and share a good time at the outlet. The name of the new venture would be named Gerard’s which have the appeal of the famous English international footballer Gerard also famous for his Captain role at Liverpool’s club. A market specific plan for business feasibility analysis, potential and target market issues is discussed to formulate the approach for the new venture. Gerard’s Food and Beverage outlet The business idea to build a food and beverage outlet at Liverpool was developed based upon the diverse multi ethnic population of the City. The love for the game of football along with the cities love for their team is strategized to be exploited in this venture. The mission of the venture is designed to address every aspect of the business and its clients to make the objective clear to all concerned (McDougall et al, 1992). The mission statement is thus devised as ‘to build a hip and happening food and beverage outlet with informal service standards that would attract young football loving consumers from the city of Liverpool and around, at a competitive price that have enough flexibility to attract a vast segment of people. Therefore the business would primarily concentrate upon the decor and design of the outlet to establish the local image of Liverpool that is distinguished by its football loving population. High quality food and beverage which have cost competence over the other outlets at Liverpool, along with an efficient service and consumer care objective in its operations process. The space for the new venture is hired with enough space for bar counter, kitchen, clearance and cover setting space to accommodate 50 people at any time. Low calorie food with a specially sourced lager beer would be the only alcoholic beverage that would be served in the outlet (Imap.com, 2010). The manpower to start off with would have 3 kitchen staffs for food production while 5 service personnel for service and operations would be engaged for the venture. The dress code of the staffs would be the Liverpool club’s official jersey for which a prior permission from the stakeholders of the club needs to be obtained. The food and beverage industry today across the globe have few specific factors those remains common for all economies (Pun et al. 2007). The primary one is the disposable income of people in an economy that ensures their spending capacity to spend on the food and beverages (Adler and Chienm, 2004). The growing number of middle class in each economy has fuelled the growth of the economy. The young population of the city is the primary target for the business where the objective is to attract them to take the services at Gerard’s. Further, the trends in the frozen food cost have been in the process of lowering prices with effective use of technology and supply chain to reduce the production costs. Going forward, growing consumer demand for convenience food and increasing health consciousness are expected to continue driving growth in this sector (Ensley et al. 2002).. Therefore the business needs to have its processes for health oriented food production to accommodate with the changing social choices. Innovation, experiments with food taste and quality, mixed cuisine are few of the very new trends that are the trend in the sector which Gerard’s is supposed to follow. The food and Beverages industry (F&B) industry is predicted to be growing fast and rapidly all across the globe. The city of Liverpool in UK is no exception (Edina.ac.uk, 2012). Chen (2009) opined that the F&B retail had been stable during the European recession, when compared to other economies. Furthermore, Frederick and Elting (2013) suggested that the growing per capita incomes of people with increase in population are the key impetus for the sustained growth for the sector. However, the quality offerings and price are the two issues that has been one of the major factors that determine the segment of consumers towards the outlet. The segment for the Gerard’s have a specific target to attract the people of the city below 30 years of age, who are sports loving and have a strong affinity for eat outs with friends. Pool tables, dart boards, special counters to sell Liverpool and English football mementos would be present in the outlet which would also give the scope to its consumers to have tournaments where the winner can be offered with a memento (Riquelme, 1994). This policy would attract the group of people known to each other quiet regularly for a game of darts or pool table. The F&B industry all across the globe is seeing a radical shift from the traditional practices of economic value chain element. The UN’s resolution to provide food for all as a part of Human rights has ensured that the integration of farming, food production, distribution, retails and consumption are brought under part of the value chain. Dividing the value chain of food production and consumption is subdivided into farming, Processing and Distribution. The understanding of the process would help in developing supply chain and aid the economy of food production along with its nutritional contents. Europe accounts for the largest share in the global F&B industry, generating revenues of $1.4 trillion USD in 2007 where UK have major role to play (Edina.ac.uk, 2012). Understanding the food sourcing and production capacities helps the business to source the needed product and keep the nutritional aspects of product as per the consumer’s choices. The growth in the food retail business, even during the European crisis period has seen a growth of 4.8% in 2008-2013 periods (Varzakas, 2013). Thus the viability of the business or the sector is very valid. However, the ways to benefit from the trends persisting in the market is to be kept in mind to acquire the maximum value from such a business. The developing economies are growing rapidly over the developed economies like China or India but the positive outcome is that the business has developed its own global approach to have a neutrality of taste preferred by a variety of consumers. The convenient food is gaining consumer’s preference with increased in urbanization and ready to eat offerings. Nevertheless, the scarcity of food in global markets has made the United Nation members to go for cheaper and mass food production initiatives to feed the global population. The new F&B outlet Gerard’s may have an edge on the pricing offerings of raw materials with increased food production. The Foundation is devised based upon an idea to promote the football loving citizens of Liverpool find a place to cherish the cultural wealth of the city. Food served would have least or no fat content which would use the Subway’s concept of fresh food with plenty of vegetable and white meat to make sure that the consumers eats healthy at Gerard’s. The beer of Lager is designed to be made at home where roasted barley from US market would be sourced to form the needed beverage while Hobs of Scotland would complete the unique beer of Gerard’s. The service structure of casual nature should give both consumers and staffs have lesser scope of dissatisfaction because the self services would not only reduce the space, but also manpower costs related with formal service procedures in classical restaurants. The financial assets for the business are expected to come from the cooperative banks where the founder shall have a personal contribution of 30% of the entire money as venture capital (Hall and Hofer, 1993). The Supply chain, infrastructure for services, staff salaries, raw material cost, and overheads for the initial 3 months would be taken into consideration while calculating the needed capital for the start-up (Riquelme, 1994). The operation time for the outlet shall be decided on the lifestyle of Liverpool population that may have changes on special days that would have extended operating hours. The promotional costs, offers and discounts etc would need to have a part of the budget allocations in 3 different phases in the initial 3 months. Conclusion The venture of food and beverage in the city of Liverpool with its traditional love for football would be used to attract the consumers. The food with low calories would be served in a model of Subways fresh food menus. The home made lager beer with in-house gaming facilities are planned to be established to attract group of friends to establish the business as a favourite place to hang out for young people of Liverpool. The care for healthy and trendy food delivery with an informal service model is expected to make a difference among people’s traditional F&B experience. A good selection of mixed cuisine to cater the diverse population of the city at a very competitive price is expected to make the business attractive and successful in the long run. However, the changing business environment and socio-cultural changes too needs to be incorporated to have the best of business results at Gerard’s. Reference List Adler, H. and Chienm, T., 2004. The Wedding Business. Journal of Foodservice Business Research, 7(1), pp.117-125. Chen, C., 2009. Technology commercialization, incubator and venture capital, and new venture performance. Journal of Business Research, 62(1), pp.93-103. Ensley, M., Pearson, A. and Amason, A., 2002. Understanding the dynamics of new venture top management teams: cohesion, conflict, and new venture performance. Journal of Business Venturing, 17(4), pp.365-386. Frederick, H. and Elting, J., 2013. Determinants of green supply chain implementation in the food and beverage sector. IJBIR, 7(2), p.164. Hall, J. and Hofer, C., 1993. Venture capitalists decision criteria in new venture evaluation. Journal of Business Venturing, 8(1), pp.25-42. Imap.com, 2010. Food and Beverage Industry Global Report 2010. [online] Available at: [Accessed 14 March 2015]. Edina.ac.uk, 2012. Liverpool Demography: Population and Cultures. [online] Available at: [Accessed 14 March2015]. McDougall, P., Robinson, R. and DeNisi, A., 1992. Modeling new venture performance: An analysis of new venture strategy, industry structure, and venture origin. Journal of Business Venturing, 7(4), pp.267-289 Pun, M., Wilcock, A. and Aung, M., 2007. Experience and Perceptions of ISO 9000 and HACCP by Hong Kong Food and Beverage Organizations. Journals of Asia Business Studies, 1(2), pp.67-76 Riquelme, H., 1994. Venture capitalists collective beliefs on new business venture investments. Journals Enterprising Culture, 2(2), pp.629-667. Varzakas, T., 2013. Computer Vision Technology in the Food and Beverage Industries, International Journals Food Science Technology, 48(7), pp.1556-1556 Read More