French Cheese Steamed Bun Shop - Example

Business Plan French Cheese Steamed Bun Shop By Student’s Name Course Instructor Institution Date Executive summary Most start-up businesses fail because of the lack of an adequate business plan. Having a business plan before hard is important as it helps one evaluate business potential and create a plan in future. Street food is the most popular and current trend, and in the recent years, individuals are flocking from all corners to get a taste or new and different pop-up kitchen. Many residents with a busy working schedule, French cheese steamed bun will be a good choice. The main function of the shop is to provide good food quality at a suitable price. The thesis is a marketing research and plan of developing a Chinese fast-food shop for the residents with the main function of offering good fast-food service at low prices. The idea of this business is to bring a new brand; new culture and food taste to the culture and hopefully open the branch within three years. The goal of opening the shop is to introduce French cheese to the people and make it popular. The name of the shop is French cheese bun shop, and if it successes it will establish branches. The SWOT analysis explains the location of the business plan and its advantages, the target market, customer relationship management, and production process. We plan to locate our business in Hong Kong, near the MTR station which will be to our ultimate advantage. The location of the business near the situation provides a high population of people since it is a common mode of public transport, and we will make large sales. We will establish our self as an exceptional fast food shop in Hong Kong which provides French cheese. Business Description French cheesed bun shop is managed by two partners and will provide funding for their savings and a little help from the parents which will provide a financial cushion for the few months of operations. French steamed bun shop use the French cheese to make the Chinese steamed bun, and the cheese flour will order from French, and also will provide the Chinese tea. We will use different French Cheese to make different fillings, the bun shop just for take away services, and will introduce to consumers about the cheese. We have several fillings such as salmon, chicken, duck, beef, and pork, and mix different type and texture cheese (e.g. Bleu, Camembert, Comte, Creme Fraiche.etc. We will also have a Marcom Promotion, where we have a set breakfast or lunch for the different bun with tea or other drink. The shop will be located in Kwan Tong near the MTR station. Environmental analysis The Pest Analysis framework helps the start-up business to assess its external environment which includes political, economic, and legal issues. The political influences include social welfare policies and trade regulations and tariff. Economic influences, on the other hand, consist of financial support, internalization of business, availability of energy among other factors (Pham Do, 2014, 42). Competitor profile The location of the French cheese bun shop is near the Mass Transit Railway station and has a high population of people since it is the common mode of public transport. There are many competitors with the French Cheese bun which are located near the station such as Just Salad, Maxim’s MX and Café de Coral-Jordan. Just Salad offers customized salads, smoothies and wraps (Just Salad, 2017). It is unique, and a modern cuisine and is located near the station, it also has great customers review. However, Just Salad does not offer the Chinese bun with the French cheese. Café de Coral-Jordan offers delicious food at a low price, and the place is clean. It has an advantage over other restaurants as it opens early and offers Hong Kong milk tea for every set menu. They also have many branches in HK. Due to their heavy investment in food, they are unlikely to react to our presence (Foursquare, 2017). The risk is that they can get very busy depending on customers turn out and some may opt fast customer service. Lastly, Maxim’s MX is similar to Just Salad. However, it has negative services feedback on social media, and their rating is good and not excellent (Maxim’s MX, 2017). Political environment The Hong Kong government provides limited role concerning the economic affairs to keep the country’s status that it has unfettered free trade and enterprise. However, Hong Kong is having a decrease in the number of tourists and therefore should improve on its infrastructure development and quality of services it offers. Economic development Compared to other regions, Hong Kong has a small economic entity. The country also has a highly developed market, a high GDP, and a thriving stock exchange. Internal analysis The SWOT analysis of the shop is listed below, and the combination of its location and the menu presents as strength. One of the most important strengths of French cheese bun shop is its strong brand identity which will differentiate the company from all other fast food restaurants in Hong Kong. The company will deliver unique and new products and services. Hong Kong has a large population which is an obvious opportunity for the shop. Besides, Chinese citizens with expendable incomes are increasing, and more citizens are in the middle class. This change is also changing their lifestyles, and the eating habits of the citizens are now open to fat foods. The shop’s location is in an open public place which is an opportunity within itself as it provides the business with public exposure. Hong Kong is increasing in globalization which provides an opportunity for more international travelers and tourist, and since the shop is strategically located near the MTR station, it is with certainty that the sales for their product will increase. There are only a few threats which can prevent its success such as competition from the existing restaurants and lack of investors. A family-run business may lack reliable resources as most firms which make it challenging to succeed. A major weakness is that the shop does not provide a place where customers can sit and enjoy the bun; it is just for take away services. Another weakness is that the shop is not established which can be overcome through proper marketing of the restaurant and providing great services. Terrorism and political unrest in the country are another threat. French cheese bun shop should use its strengths like the unique products to adapt itself to the needs of HK market (Dhaugoda & Dang, 2015, 28). Mission/Objectives French cheeses bun shop mission is to create a friendly atmosphere where the customers feel comfortable and become regulars. The company seeks fair and responsible profit that will help it stay financially healthy for a long time to enable it to create a branch in 3years to come. The objectives include: developing a full menu, expand to another store by the third year of business, and increase year sales (Godsey, 2010, 17). Management plan My partner, Austin, has experience in management and sales while I will bring my expertise in the area of finance and administration to the shop. The company will not hire people for the first few years of operation, but instead, we will run the shop. As the company grows, and we open another branch, we will train new employees and then be their supervisors. They will then be leaders in our future shop developments. Our personnel plan will begin at ground zero, as we as the founders will act as the employees. My partner and I are the founders of French cheese bun Shop. Marketing plan French cheese buns will stand out from the competition because of their outstanding quality and uniqueness. Most of the buns do not have a variety of fillings and texture cheese which is to the company’s advantage. We will also serve Chinese tea to accompany the Chinese steamed bun. Target customers: with the location near the MTR station, our main customers are tourists, those having busy working days, and people interested in Chinese and French elements. Pricing: there are various pricing strategies such as new product pricing, market-skimming, and discount pricing. We will use new product pricing since we are introducing to the customers about French cheese. Place: Choosing the right location for any business is crucial as it determines the customers turn over. The shop will be in Kwan Tong. The location is famous for having many industrial and commercial buildings, and it is also nearby the MTR station so more customer’s attraction as there is a bigger population of people in the terminal. Marcom Promotion: Promotion is a way of advertising one’s products or services. Our promotion will involve setting breakfast or lunch for the different bun with tea or other drink. We will also ask customer’s satisfaction after providing the service, as a way of building a relevant customer database. Financial plan To determine whether the shop will earn and make profits, it should form a financial analysis. The business plan requires a balance sheet, a break-even analysis, cash flow projections, and start up a budget. However, the estimated financial analysis may not be accurate (Bringhurst, 2012, 5). Start-up capital is the amount of cash that one requires to start a new business based on the partners’ capital. Our start-up costs come to HKD600, 000 which will purchase kitchen equipment, construction of the shop and its furnishings, and starting inventory expenses as this is the first store to open. The start-up costs are to be financed by my family and a business partner. Break-even analysis: For the shop’s break-even analysis, we assume running costs to include rent, full payroll, and utilities, and also an estimation of other running costs. Monthly revenue break-even 25,251 Assumptions: Average percentage variable cost 17% Projected profit and loss: when calculating our P &L, we assume that the shop will increase its sales from year to year. Balance Sheet Forecast: if we achieve our specific objectives, we will have an easier time meeting any debt obligations. We are confident with our location that is in Kwan Tong, as there are many industrial and commercial buildings and the shop will be nearby by MTR station. Year 1 Year 2 Year 3 Assets Current assets Cash 600,000 540,000 620,000 Other current assets 0 0 0 Total current assets Long-term assets 0 0 0 Total assets 600,000 540,000 620,000 Liabilities and Capital Current liabilities Accounts payable 29,000 35,000 50,000 Current borrowing 0 0 0 Total liabilities 29,000 35,000 50,000 Total capital 648,000 500,000 561,000 Retained earnings 68,000 151,000 290,000 Net worth 648,000 508,000 561,000 Cash Flow Projections: this is a quick-service oriented business, and thus the cash flows are entirely on sales assumptions. It will be challenging for the shop to keep the cost of food and to maintain the sales, and we need to balance slow months with busy months. Harvesting Plan We view French cheese bun as a long-term investment, and as long as it will continue generating profits, we will continue operating the business. If one of us decide to retire from the daily operation of the business, we will look for a successor who will help in managing the business. Should the venture of our business fail, we will strive to resolve as soon as possible to avoid the limited amount of debts. The first year of our operation, we will monitor closely French Cheese hub shop financial performance to determine whether to close the business or continue operating it. Our mission is opening another branch if the business succeeds. References Bringhurst, BM. 2012, A Business Plan for a Successful Family-Run Restaurant in Heber City, Utah. Dhaugoda, S & Dang, J. 2015, Asian BBQ House''restaurant business plan, viewed online June 16, 2017 Foursquare. 2017, Café de Coral, viewed online June 16, 2017 Godsey, JA. 2010, Organic Restaurant Business Plan. Doctoral dissertation, California Polytechnic State University. Just Salad. 2017, Just Salad, viewed online June 16, 2017 Maxim’s MX. Restaurants Review. viewed online June 16, 2017 Pham Do, TH. 2014, Business Plan for a Vietnamese Restaurant & Coffee Shop in Helsinki, Thesis, viewed online June 16, 2017, Read More