Bristol Base Restaurant Business Strategies - Example

Name Professor Course Date A Business Plan for a New Restaurant: Bristol Base Restaurant Executive Summary Bristol Base Restaurant will be locally owned restaurant that will be placed as a global franchise via creative approach to the firm’s detail and image presentation. Bristol Base Restaurant will offer a combination of brilliant and quality food and drinks at affordable and competitive prices. The restaurant will offer a good atmosphere to its estimated customers besides providing fun packaging. The firm will entirely specialise in the hospitality industry and will offer incomparable quality services and experiences to the target market. The main objective of Bristol Base Restaurant is to stand out as the only restaurant that focuses on service quality. The firm will strive to ensure that the needs and tastes of its customers are fulfilled in the best way possible. Bristol Base Restaurant will be a solution to an ever-increasing demand for British and other types of cuisine in the region. As a result, our target market includes both the local and international community. The restaurant plans to establish a powerful market presence of at least 15 percent in the region given the mild competitive climate. Bristol Base Restaurant will offer its products and services at affordable and competitive price in order to attain the demand of the local and international market. With excellent service management, we intend to make the company’s brand name a good example of service. The Business Idea, Opportunity and Market In the contemporary competitive business environment and the effects of globalisation, it is increasingly important to combine both local and international taste and preferences to ensure satisfaction of a diverse customer base. Bristol receives a huge number of tourists every year. The city has much to offer to tourists given its historical vibrancy and wealth. This calls for need to establish a restaurant that will cater for the needs and tastes of the local and international community. Our focus is to establish a restaurant in a crowded area, preferably within the city centre in order to provide a conducive environment and excellent experience to our esteemed customers. In later days, we will further develop our effort and establish several retail outlets in the region. This business plan is established to acquire a location for the preliminary commencement of our business idea. In addition, funding require to be secured for this business venture. Funds will be sourced from shareholders and banks loans in order to facilitate efficient and successful opening of our first outlet and expansion through the first four years. The first capital investment will enable Bristol Base Restaurant to offer its clients a value-driven and exceptional experience via the creativeness of the founders. The Business Team Bristol Base Restaurant will be run and managed by a team of qualified personnel with both leadership and business skills. The Chief Executive Officer holds a B.S degree in Economics and an M.A in Human Resource Management. The CEO has a passion for business particularly service business. The CEO will work together with qualified team of managers with business related qualifications. The team of manager will include a team of six members who will be tasked with managing different departments that include, Service quality Department, Accounting department, Sales and Marketing Department, Operations Department and Human Resource Department. The restaurant will also have several full-time employees who will ensure provision of quality products and services. The full-time employees must have knowledge and experience in the hospitality industry. Table of Contents 1.0 Market Feasibility…………………………………………………………………............5 1.1 The Market, Customers and Location…………………………………………………......5 1.2 The Company, Industry and Competitors……………………………………....................8 2.0 Technical Feasibility……………………………………………………............................9 3.0 Human Feasibility…………………………………………………………......................10 4.0 Financial Feasibility……………………………………………………….......................10 5.0 Reference List………………………………….................................................................12 1.0 Market Feasibility Arora, an author, asserts that feasibility entails how practical a project or a business idea is or how easily an objective might be attained (162). When considering establishing a new restaurant, market feasibility must be completed. The goal of a detailed market feasibility is to determine whether the market potential is suitable for a proposed business. Market feasibility focuses on the availability of the market for the proposed business in a given area ( Nirjar 56). Market feasibility also considers the extensiveness of the market and the potential for capitalising on the market in a given region. 1.1 The Market Customers and Location Based on the analysis of the current market and the growth potential of the Bristol city, the restaurant market is promising. Eating out in Bristol is increasingly becoming a trend for most families and tourists. Based on the information from the Federation of Specialist Restaurants, the ethnic food industry is expected to rise by 45 percent between 2012 and 2016 ( 1). The food seasonings and cooking sauces is expected to rise by 6.5% by 2017. Since 2013, people and families in Bristol city are eating out compared to the earlier years. This is as result of the changing temperament of daily life in Britain besides other factors. For instance, shifts in the make-up of family with more women working instead of running their homes has increased eating out in restaurants and hotels (Federation of Specialist Restaurants 1). The changes in the contemporary life and inadequate time for family dining as well as lack of skills for cooking among successive generations has increased the market for restaurants and hotels. People in Bristol enjoy eating out frequently and enjoy a broad range of cuisines. Given the effects of globalisation, cultural shifts in food consumption have also augmented. By 2010, UK consumers used over £8 in a week on eating out(Federation of Specialist Restaurants 1) . The informal eating out segment employs over 1 million people in the UK and is a top ten industry. In addition, more tourist visit Bristol city. In fact, Bristol city has been ranked among the top twenty popular destinations in the United Kingdom for international tourists. Bristol welcomes over 420, 000 foreign tourists every year. Bristol is the fourth most popular overnight tourist destination in the United Kingdom.The increased number of visitors visiting Bristol calls for the need of more restaurants and hotels. Bristol Base Restaurant is therefore focusing on acquiring a 15% of the restaurant market. Bristol Base Restaurant is focused on establishing a big customer base and will concentrate on providing local and international cuisines. Bristol Base Restaurant aims to offer hot drinks, soft drinks, local dishes and international cuisines at a competitive price to attain the demand of the low, medium and higher income. As a result, the most appropriate location for the business will be in the city. The restaurant will be located in an area with an increased flow of people to ensure an increased number of customers. Establishing the restaurant at a strategic place within the city will help in attracting more customers given the increased flow of people in the city centre. The restaurant shall be located in a high-traffic location; a place near major streets with a high visibility to pedestrian or vehicle traffic. The location must be easily accessible and hold adequate parking area. The location of the business will be assessed based on the potential access it will afford the operators to clients. The population available as potential client include travellers, tourists and the local community. With its location at the city centre, the business will attract students from city campuses and colleges, employers and employees working within the city centre besides tourists and travellers (See Figure 1). Figure 1: Market Analysis The restaurant will provide highly competitive and visibility services to capture the target market. The founders will rent a big facility, furnish it according to their preferences and needs in order to ensure that they have the desired size, and type of the building to satisfy and suite the needs of their target consumers. The selection of the location will be based on the size of the community, tourist destination and accessibility of the facility. Our restaurant will remain open for more than hours in a day. We intend to use direct marketing to create awareness of our business. Word-of-mouth will form a large part of our marketing campaign. According to Jorgensen, positive word of mouth is the best marketing and advertising medium for a restaurant (65). Great word of mouth comes from guests having something positive to talk about and share it efficiently. The press, print and social media platforms will also help in advertising and marketing our business (See Figure 2). Figure 2: Marketing Medium 1.2 The Company, Industry and Competitors Bristol Base Restaurant falls under the hospitality industry. Morrit and Weinstein, authors, assert that the hospitality industry is the globe’s biggest employer (1). Elements of the hospitality industry include tourisms, hotels, resorts and restaurants to mention but a few. Statistics show that the hospitality industry pays more than 1.6 trillion dollars in salaries and wages and create an approximated 12.5 million novel jobs every year (Morrit & Weinstein 1). Restaurants sales growth has stabilised at around five percent every year. Currently, there are over eight million restaurants in the world, which are conventionally portioned into fast-food restaurants and full-service restaurants. Bristol Base Restaurant will be a full-service restaurant aimed at offering both local and international cuisines. The restaurant sector represents a mature market with intense competition. Major competitors include, Bristol the Ox, Hilton Garden Inn, Novotel Bristol Centre, CB-City Restaurant, Holiday Inn Bristol, Radisson Blue Hotel Wallfish Bistro, Bristol Marriot Hotel City Centre, Flinty Red, the Pony & Trap, Chomp and other major local and international food joints. However, with provision of quality and affordable cuisines, good management and strategic location of our restaurant, we intend to win an extensive market share as well as a competitive edge. We aim at wining at least 15% percent of the restaurant market share. Our firm aims to uphold and observe the crucial dimensions of service quality that include reliability, responsibility, assurance, empathy and tangibles (Prideaux, Moscardo & Laws 241). These dimensions focus on meeting the needs and expectations of customers. 2.0 Technical Feasibility A business is viewed as operationally and technically feasible if all the required expertise, capital and infrastructure to operate, install and maintain the proposed business are well in place. A technically feasible business delivers services or products at a profit. As regard, our proposed business, there is adequate access to resources. As a team, we have established what type of services we intend to offer. We have also determined the physical and human resources that will be needed for our service provision. We have also identified the equipments we need to ensure excellent service provision. The size of the company’s building will range from 300 to 500 square meter and is expected to hold 100 guests. The establishment will feature its own uniqueness in its attributes and merchandise display. Our start-up requirements include modern kitchen equipments and fixtures, furniture and interior design, packaging materials, legal requirements and other long-term assets. We have also identified the facility that we need to rent for our business. All these facilities and items are consistent with Bristol Base Restaurant objective of offering top quality cuisines and exceptional experience to our esteemed customers. Our services design will be functional and will hold attributes that enhance adaptability to the novel customer demand. Based on the equipments we intend to use, we are sure that our performance will be reliable and will help in upholding a high level of safety and standards. Our services will also uphold a feasible link amid costs and technical quality. We will focus on augmenting the technical excellence of our serve to a level where service quality equates to marginal cost. 3.0 Human Feasibility Entrepreneurs who aspire to grow their business require human resources. Human capital is key to the success and growth of any business. According to Szopa, an author, human capital entails the study of skills, capabilities and knowledge that provide an individual with superior cognitive capabilities concerning the exercise of demanding activities (45). An entrepreneur should determine the skills that are required to operate a business (Groenewald, Mitchell, Nayager & Emanual 71). With regard to our business, a team of highly qualified personnel with skills in hospitality and business management will be put in place. Personnel with excellent catering skills, both in local and international cuisines, will be hired. Our business venture calls for people with technical and other specialised skills and experience in hospitality industry. We will find and develop the needed personnel. We have already determined what human resources are needed to run the Bristol Base Restaurant. Our team hold the skills and experience to make the company grow. We focus on hiring a team that focuses on upholding a higher level of customer satisfaction. We have measures in place to motivate and train staff members who may hold limited education or experience. We are determined to put in place people with skills aimed at making the kitchen operations run effectively. The firm will hold a team of six managers who will oversee the operations of the restaurant. 4.0 Financial Feasibility A financial feasibility assessment looks at how much money it will take to establish and attain the goal of the business ( Fullen 1). Our new business establishment requires adequate financial resources for asset needs. Assets needs will include the building where the restaurant will be established, equipment and machinery. The business will also require current assets that will be changed into cash and used up in the business operations. Cost forecast, which involves costs of services, sales and marketing costs, will also need to be put in place. Assessment of financial resources should offer a good indication of losses or profits of the business over the long, medium and short time (Khan 84). An indication of profitability reinforces the feasibility of a business idea. Bristol Base Restaurant start-up costs include legal and lease fees, health and safety certificate fees, public liability insurance, kitchen fit, premise refitting, staff uniforms and recruitment fees, furniture, table clothes, crockery, initial stock of drinks and food, and marketing fund. All these assets will require over £400, 000 in total. To ensure sustainability and growth of our business, we need to raise £500, 000 from bank loans. Bristol Base Restaurant anticipate a sale of £1, 000,000 in the first year, £1, 200, 000 in the second year, £ 1,300, 000 in the third year and £1, 500, 000 in the fourth year. The firm should break even during the fourth year of its operation with a steady increase in sales. Profits for expected to be £30, 000 pound in the first year, £60,000 pounds in the second year, £90, 000 in the third year and £130, 000 in the fourth year. Bristol Base Restaurant does not anticipate cash flow issues. 5.0 Reference List Arora. Food service and catering management. USA. APH Publishing, 2007. Bristol Post. More tourists visit Bristol than neighbouring Bath. The Bristol Post, 2016. Retrieved from http://www.bristolpost.co.uk/tourists-visit-Bristol-neighbour- Bath/story-15987835-detail/story.html Fullen, S. Opening a restaurant or other food business starter kit: How to prepare a restaurant business plan & feasibility study: With companion CD-ROM, Volume 1, USA: Atlantic Publishing Company, 2005. Groenewald, M, Mitchell, B, Nayager, T & Emanual, B. Fresh perspectives: Entrepreneurship. S.A, Pearson Prentice Hall, 2007. Jorgensen, A. Restaurant marketing and advertising: For just a few dollars a day. USA: Atlantic Publishing Company, 2003. Khan, M. Restaurant franchising: Concepts, regulations and practices, Third Edition. USA: CRC Press, 2014. Morrit, R & Weinstein, A. Segmentation strategies for hospitality managers: Target marketing for competitive advantage. UK: Routledge, 2012. Nirjar, A, Entrepreneurship Development. India: Sanbun Publishers, 2011. Prideaux, B., Moscardo, G & Laws, E . Managing tourism and hospitality services: Theory and international applications, USA, CABI, 2006. Szopa, A. Academic entrepreneurship and technological innovation: A business management perspective. UK. IGI Global, 2012. The Federation of Specialist Restaurants. Eating in/out statistics for UK.Fedrest. 2015.Retrieved http://www.fedrest.com/eatingoutstatistics.html. Read More