Fantasies Restaurant Business Strategies - Example

Business Plan Fantasies (A Theme Based Restaurant) Approx. Words 2506 Contents Introduction 2 1 Business Description 3 1.1Location 4 1.2Slogan 4 1.3Size of the Business 4 1.4Target Market 5 1.4.1Geographical Segmentation 5 1.4.2Demographic Segmentation 5 1.4.3Psychographic Segmentation 5 1.5Entry into the Market 6 1.6Industry Analysis 7 2Operations  7 2.1Management Team 7 2.2Staffing 7 3Cost Estimation 8 4Capitalization 8 5Promotion Strategies 9 6Development 10 6.1Opportunities and Risks 10 6.2Future/Prospects of Growth 10 References 11 Introduction This business plan accounts for a completely new venture by Saturation Inc. which provides a comprehensive overview of this new business. It expresses the goals and the strategies that would be adopted to meet them in a coherent manner. In addition to that, features of business, financing and estimated costs have also been furnished [Ami02]. Fantasies is a concept that originated from a need to provide people with an opportunity to enjoy their leisure time with loved ones. It was realized by the management that there is no such place in Flagstaff, Arizona where people can experience multiple environments all at one place along with excellent meals. Intense market research and target market evaluation suggested that Fantasies is ideally situated to cater an unfulfilled market segment. Perfect mix of marketing techniques and operational systems will allow management to be proactive rather than reactive to the conditions and obstacles associated with opening a new restaurant. We have sound plans to focus on building sales rather than profits. It is a restaurant comprising of three different themes. Beach and forest theme are planned to be built on the ground floor as we are giving a complete forest look to one portion with trees and artificial animals around. Whereas, on the beach side we are providing it with a small lake that can give a place where people dine out under the descent white canopies and can relax on the deck chairs as well. There is also an indoor dining area which provides a glass view to the outdoor in addition to enhancing its beauty. The first floor will be designed for Royal theme and there would be placed goblets all around the walls that will lit beautifully at the dinner times. In closing, we feel the business plan for Fantasies represents a realistic expectation of success for all parties involved. Moreover, we will be providing a benefit to the community by offering a great service and secure jobs to community residents. 1 Business Description Fantasies will be a moderately priced restaurant, featuring family style service, with three different themes i.e.; Beach, Forest and Royal. The dining experience is expected to last from 1 to 1 ½ hours. Guests will be greeted by salt water aquariums as they enter the restaurant. Background music consisting of popular Cajun tunes, Jimmy Buffet hits and other folk music. The decor of Fantasies will feature wood accented construction for forest theme with small green trees and hanging tress branches under the ceiling. Beach theme would be a blend of dine out and dine in, where there would be a small lake around which some tables would be arranged under the white canopies. Royal portion will have a very sophisticated light golden, peach and off white theme all around with an armor statue standing at the entrance. Our goal is to create the image of light, satisfying but nutritious food. Fresh vegetables, meat and dairy products will be used to create most of the dishes from scratch. The chef will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. The restaurant will have approximately 180 seats and 30 tables. 1.1 Location The proposed location is in Cottage Avenue, Flagstaff, Arizona. An existing building would be renovated for the purpose. It would be taken on rent, initially. 1.2 Slogan “Where You Desire”. Our slogan is representing our motive of fulfilling customer’s desires of enjoying at a place that can provide them with different atmospheres all in one. It includes everything a restaurant visitor can wish for. 1.3 Size of the Business It is a medium sized business. Sales projections for Fantasies assume a modest 1030 customers per week resulting in weekly sales of $20,000. This positions our restaurant as a highly desirable concept. Total capitalization will amount to $500,000 to $600,000 which would be contributed by the Saturation Inc. and the balance secured through a proposed bank loan. 1.4 Target Market 1.4.1 Geographical Segmentation Flagstaff is a city of around 65, 395 people with abundant of recreational attractions that make it a perfect spot of entertainment for tourists around the world. Surrounded by San Francisco peaks the city gives exquisite experience of rejoice. Hikers, mountain bikers and campers keep on visiting the place around the year [Fla15]. 1.4.2 Demographic Segmentation The median household income of Flagstaff residents is $48,522 while per capita income is $23,678 [Cit13]. We will be targeting both the residential and business communities, male and female, within the age of 10 to 60 holding minimum a bachelor’s degree coming from lower middle and middle-middle class. Household Size of our target market could be ranging from bachelors to a family of three persons and above. They can include people who are single, married, divorced, or anyone who can afford. Both husband and wife working or one of them working are targeted. Most preferred targets are people with occupations like doctors, engineers, businessmen, professors, lawyers and anybody earning a good disposable income. Nowadays, whole family is the decision maker to go a place like this. Even the children motivate their parents. So we can influence the parents and the young people for this purpose. Any of them can be the decision maker. The bread earner of the house would be focused as purchase agents, which have to pay ultimately. 1.4.3 Psychographic Segmentation Through initiation of primary research, certain demands became apparent. Every person stated atmosphere, hygiene and quality to be the top most priority, when it comes to a restaurant. Open minded, fun loving and entertainment seekers are the target, who want to experience unique things. And the people who get tired after work and want a place where they can spend good time with family and friends, to relax their nerves. It also includes the people who want to experience different cultures and different atmospheres which they find hard to get in real life due to financial or temporal constraints. 1.5 Entry into the Market We are using Penetration strategy because we are new in market and our product will be in stage of awareness, for which we are keeping our price moderate in order to get more and more clientele[Jud09]. Initially, we will focus all types of customers irrespective of our segmentation strategy. After sometime we will come to know our exact customers, then we will penetrate the same segment, so that we can avoid expenses on butterfly customers. However, in the growth stage the management would be Confrontation strategy, because in Flagstaff, there is an already established market for restaurant visitors [Geo97]. Our primary objective is to generate good market share and then protect it among current customers, by meeting head-to-head competitive offerings and to improve ability to win new customers. Restaurant industry is homogenous market, because of similar customer needs and purchase criteria and the customer can switch their preferences, so we are trying to differentiate ourselves from competitors on the basis of unique dining experience and atmosphere. This market has current and potential competitors with sufficient resources, for which it is important to meet the competition and attract more and more customers. The restaurant may suffer lower awareness, preferences and loyalty but we have resources and competencies and hoping good market share. 1.6 Industry Analysis Restaurant industry contribute 4% to the GDP of USA and 10% of US workforce is related to this [Nat15]. National Restaurant Association predicted that Arizona will top US for the sales growth in 2015 and that too for at least next 10 years [Wil15]. The reason behind is the sufficient disposable income and industry employment opportunities. There are not much labor restrictions here and taxes are lower as compared to many other states. Moreover, dining out is on a sharp rise. The fact makes Flagstaff, Arizona one of the most suitable places to start a new business. Café Daily Fare, Cuisine of India, Cottage Place, Horsemen Lodge, Fat Olives and others are well established competitors but none of them is in direct theme based food offering. Still, Fantasies require a careful and cogent plan to earn competitive advantage over them. 2 Operations  2.1 Management Team The team would comprise of a Director who will hold the key decision making power. Next to him would be restaurant manager. At executive level, HR manager and assistant to restaurant manager will fulfill the duties assigned by top level. Whereas, operational level duties would be accomplished by Customer Representatives and Supporting Staff. 2.2 Staffing Management has adopted an effective interview process designed to staff the restaurant with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards adopted for each position. Recruiting efforts will center on referrals and the direct recruiting efforts of the HR team. We will have 35 people in our staff to run operations. Our front office would include 18 people. First, there will be a restaurant manager who will be responsible for daily operations as well as ordering, receiving and maintaining sufficient inventory to meet production demands. There will be an accountant as well to maintain financial records of restaurant on daily, monthly and yearly basis. One gate keeper and 15 waiters (5 for each hall among 3 halls) would also be there in front line. In the kitchen, there would be an Executive head chef who will be responsible for managing all three kitchens as well as providing the recipes and there would be two chefs (chef 1 and chef 2) who will be responsible for cooking meals. We will be hiring 5 helpers who’ll assist the chefs and 5 dish washers. Our back office will have an electrician and a plumber for maintenance of electronic equipment and sanitary system. Four housemen will be responsible for cleanliness of restaurant. 3 Cost Estimation Modern and sophisticated equipment would be used ensuring safety and speed that management would acquire from trusted suppliers. Total estimated cost for renting the building, renovation, equipment and furniture etc. is $500,000. Salary of restaurant manager would be $49,000 annually and HR manager would be compensated with salary of $40,000/year. The servers and waiters would be paid $7/hr. while line cook would be paid $12/hr. Executive chef salary would be $40,000 per year. 4 Capitalization Funding for the venture will be provided by contributions from the partners and proceeds from bank financing. Bank will contribute 70 % of total financing and 30% will be contributed by owners of Fantasies as per policy of banks. According to our estimation the total cost on the project would be $500,000, but keeping in view some uncertain events that the management may come across, the amount needed to start the project would be $600,000. Owners will be providing $200,000 and bank will provide $400,000 of this total cost. The funds will be used to fulfill the projected capital budget requirements. 5 Promotion Strategies The success of Fantasies hinges upon serving great food, providing friendly service and employing an aggressive marketing plan to build customer base. We will constantly strive to enthusiastically win more customers by being proactive rather than reactive in marketing efforts. Management will endeavor to create and maintain a positive and appealing image for the restaurant. This image will be consistently portrayed throughout all marketing channels and sales promotions. As it is said, first impression is the last impression, we are considering the entry into the market very crucial. For this purpose, $30,000 has been budgeted for a proper launching campaign. Focusing on the unique aspect of the product theme (healthy & tasty foods) a mix of marketing vehicles will be created to convey our presence, image and message. The billboards of size 10*20 will be placed at prominent places while local cable operators and newspapers will be accessed to run electronic and print ads. Brochures of A-4 size weighing 115gm, costing $2-$2.5 per page would also be floated. Fantasies will also establish a Facebook page where customers will be encouraged to become fans of the page share it with their friends. Sharing it with others ensures credibility. Moreover, the restaurant would offer an active Frequent Diner program. This will allow to reward the guests for their continued patronage. The program shall have flexibility to allow creativity in the reward structure. We anticipate capitalizing on our customer database by instituting an effective email marketing strategy. It will give our customer the option to receive emails from our restaurant. Customer’s privacy will be protected and would be solely for awareness. Promotional content will be developed with the goal of enticement versus quantity [Geo02]. Fantasies will further take advantage of the customer database by implementing a consistent direct mail strategy. It will include promotions such as sending a birthday card to the customers and informing them of promotions. Finally, management has a plan to offer free lunch and dinners to the known people from different occupational backgrounds in the initial days after the opening to create a good word of mouth. Customers believe one another more and this provides more authenticity to the product or service[Jod05]. The targeted customers would be allowed to lodge their complaint in case of any problem through Facebook pages and comment cards at the restaurant. This gives a feeling to customers that they are valued [Ale08]. Hence, it would bring improvements in the overall processes of the restaurant and will help us in bringing forward the rightful mix of customer satisfaction and business growth. 6 Development 6.1 Opportunities and Risks Gauging the opportunities and threats is extremely essential before starting a new venture. Although, restaurant business is full of complications but large profits are also there. In this, the cost can rise unexpectedly and derail the business. Food safety is also a major concern and extreme checks could be required to ensure it. Food related lawsuits are common in USA which can damage the business unlimitedly. In Arizona, the sellers are liable to pay transaction privilege tax to the state [Ari06]. Despite all this, Arizona is one of the best suited place for establishing food business provided its myriad of attractions like culture, heritage, forests, mountains and labor adequacy, educational progress and self-sufficient population. Flagstaff has variety of restaurants ranging from Indian, Thai, Chinese cuisines to Mexican, Italian and French food but Fantasies has an edge in providing an altogether different environment for enjoying the meals. Its moderate prices will allow it to penetrate quickly into the market which enjoys much attention. 6.2 Future/Prospects of Growth Flagstaff is a tourist spot which has always drawn the attention of nature lovers towards itself. Its terrain, high elevations and weather attracts hikers, climbers, bikers from whole world around the year and this factor enhance the prospects of growth for a food business here. In future, Fantasies aims to offer other services such as catering, gift certificates for special occasions and publish a cookbook comprising of Fantasy special cuisines. References Ami02: , (Amir M. Hormozi, 2002), Fla15: , (Flagstaff Arizona, 2015), Cit13: , (City-Data, 2015), Jud09: , (Mariscal, 2009), Geo97: , (George P. Moschis, 1997), Nat15: , (National Restaurant Association, 2015), Wil15: , (Sowards, 2015), Geo02: , (George M. Zinkhan, 2002), Jod05: , (Padgham, 2005), Ale08: , (Emes, 2008), Ari06: , (Arizona Department of Revenue, 2006), Read More