Basha Restaurant Business Plan - Assignment Example

? Basha Restaurant Business Plan AFFILIATION: Executive Summary Basha restaurant in Dubai is one of the unique restaurants in Dubai that offers a wide variety of Arabic Cuisines to its valuable customers. The restaurant atmosphere and decor is unique from its competitors and its location is highly attractive to attract many customers towards the restaurant. The restaurant meets the expectation of the customers by providing them valuable services by the restaurant staff. The manage constantly runs a check on the activities taking place in the restaurant which assures the customer that everything is in control and being evaluated constantly. The restaurant staff is trained to provide effective and efficient services to the customers. The cuisines are developed by authentic Arabic chefs and the recipes used are also authentic. This adds on to the credibility of the restaurant. The taste of the food is given special consideration as the owners of Basha want the food to be perfect in all regards for their valuable customers. The pricing and profitability strategy has been developed considering all the expenses and investments required to start up the business. Table of Contents Introduction 4 Objectives 4 Sales Objectives 4 Mission 5 Keys to Success 6 Company Summary 6 Company Ownership 7 Start-up Summary 7 Company Location and Facilities 8 Services 9 Competitive Comparison 9 Sales Literature 10 Market Analysis Summary 10 Target Market Segment Strategy 10 11 Marketing Programs 11 Pricing and Profitability Strategy 12 Cost of Goods Sold 13 Projected Income Statement 14 Projected Balance Sheet 16 References 16 Basha Restaurant Business Plan Introduction Basha is one of the distinctive restaurants in Dubai that offers authentic Arabic cuisines to its valuable customers. Restaurant business needs to be planned out carefully (Feeman, 2009). Basha has achieved awards in its business segment of offering Arabic cuisines. The types of cuisines in Basha range from chicken delicacies to meat and fish delicacies. They make such cuisines in oven that is wood-fired. The restaurant atmosphere of Basha is made of sleek wood and it has a decor of stones. The customers have the privilege of choosing from variety of olive oils for customizing their meals. The Basha restaurant in Dubai has its location at the terrace of Habtoor Grand Resort and Spa from where the view of Dubai is outstanding (Al Basha in the Habtoor Grand Beach Resort and Spa, Dubai Marina Mall, Dubai – Restaurant Reviews—TimeOutDubai.com, 2012). The paper discusses the business plan according to a standard format of a business plan (Floor, 2003) Objectives The objectives of Basha Arabic Restaurant in Dubai are as follows: To provide authentic Arabic Cuisine To increase the market share in Dubai amongst other Arabic Restaurants To provide a soothing ambience to the customers of the restaurant To increase profits by 25% in the year 2013 Sales Objectives To increase sales by 15 % in the year 2013 that is reach a amount of AED 140,000 Mission The mission of Basha Arabic restaurant is to provide authentic Arabic cuisines to the customers of Dubai so that they can get a feel about the Arabic cuisines. The customers should enjoy dine out at Basha and the ambience of the restaurant should be such that the customers should feel they are dining out in core Middle Eastern country. The ingredients used should be of good quality, the chef should be Arabic and recipes of the Basha restaurant should be authentic Arabic recipes. The cuisines served should be fresh and should be served in the most unique manner by the restaurant staff. Presentation of the cuisines should be highly appealing attractive. Customers are paying a premium price at Basha and so they should be entertained with the best Arabic cuisines in town. Basha wants its market share to increase and also the number of customers should make repeat visits in the restaurant. The staff should be well aware of all the Arabic cuisines being served in the restaurant so that they able to answer the questions of the customers related to any cuisine. At times customers want to know about a particular dish and hence the Basha staff should be well aware of the cuisines being served in the restaurant. The human resources at Basha are given value and importance by the restaurant owners. The human resources are a vital element for the success of any organization. Basha restaurant management ensures that they handle their employees in a fair manner and reward the employees on their good performance. Basha restaurant also ensures that the employees of the restaurant are provided proper training and are equipped with proper resources so that the employees perform their job roles at optimum level. This improves the efficiency of the workforce and the restaurant is able to achieve its targeted goals. The elements such as the quality of raw materials used in the restaurant the furniture used for the interior decoration of the restaurant, the trained staff combine together to produce excellent services to the consumers so that they enjoy the food as well are satisfied with the services of the Basha staff. Keys to Success The key success factors for Basha Restaurant are as follows: The location of Basha restaurant attracts consumers of all age groups especially young consumers who prefer hanging out in malls and resorts. Quality raw materials and authentic Arabic cuisines are served that maintains the brand name of the restaurant. The staff of Basha restaurant is given trainings on a regular basis so that they deal with the customers in a pleasant way and address all their orders in a presentable manner. New talented employees are hired as and when required (Jobber, 2007). Company Summary Basha restaurant has focused on providing a unique restaurant ambience for the customers that is both relaxing and convenient for the customers. The view from the resort terrace allows the customers to further enjoy the open atmosphere of Dubai. There are a diversified number of Arabic cuisines being served in Basha and the waiters of Basha are all friendly and efficient in performing their job roles. The waiters serve the customers in an excellent which impacts the restaurant services in a positive way. Company Ownership Basha Arabic Restaurant is owned by two partners, Mr. Noor Khan and Mr. Ahmed Saleh. Mr. Noor will be looking after the restaurant as a General Manager and Mr. Ahmed will be the managing partner of Basha Restaurant. Start-up Summary The start-up requirements for Basha restaurant is depicted in the chart below. Business license and permits need to be taken from the Dubai government. The leased equipment may include the kitchen supplies and furniture of the restaurant. Marketing and promotions would be the ads given for promoting Basha as well as the investments in printing brochures. Start-up Requirements Start-up Expenses Business License and permits 70,000 Leased Equipment 10,000 Administrative costs (office supplies, telephone charges, postage) 8,000 Marketing and promotions 15,000 Insurance 14,000 Fees of professional consultants 4,000 Staff salaries 20,000 Management Salaries 40,000 Total Start-up Expenses (AED) 181,000     Start-up Assets Cash 200,000 Inventory/Kitchen equipment 140,000 Land 250,000 Other long-term assets 100,000 Total Start-up Assets (AED) 690,000 Total Start-up Funding (AED) 871,000 Company Location and Facilities The size of Basha restaurant would be in the size range of 3000-4000 square feet of floor size. The seating arrangement of the guests would be spacious and at a time 100- 125 guests would be able to dine out in the restaurant. The dancing area of the restaurant is equipped with high technology recording systems so that the sound of the music is attractive for the customers. All interior decoration of the restaurant is of high quality so that it appeals to the customers. The selection of the restaurant is based upon the number of people in the locality which is around the figure of 50,000. The resort would have many customers who may stop over for their tours. Basha is at the terrace level and hence would attract many customers of the resort. Elite class people would have stay over at the resort and hence Basha would be receiving elite class community at their restaurant. The customers will not have the issue of parking spaces as the resort has its own parking space (Gronroos, 2011). Services The restaurant is open 7 days a week serving breakfast, lunch and dinner. The timings of the restaurant are from 7:30 am to 12 am on weekdays and 7:30 am – 2 am on weekends. The restaurant would be closed on national holidays of Dubai. Competitive Comparison Basha has a competitive edge over its customers due to the locality of the restaurant, the interior decor, the variety of Arabic cuisines available and the deals on the various cuisines that allows customers to enjoy reasonable meals as well. The advantages of Basha restaurant are: Location is at the terrace of the Grand Beach resort and Spa and hence the view is superb of Dubai Restaurant staff is trained for providing efficient services Dancing sessions is unique than the competitors The variety of cuisines and the taste is unique from other Arabian cuisines in the market Sales Literature Once the restaurant services commence, the pieces that will be produced by the Basha management is the menu cards, the brochures, the bulletin designs. All these would be produced via the compute designs and this would allow Basha to have high value pieces at low prices. Basha plans to use digital technology in maintaining their supply chain activities and also handling the activities of the restaurant such as cashier and accounts maintenance. The financial position of Basha can be known through the use of digital technology as everything such as sales and accounts would be available on the computer database. Market Analysis Summary Al Basha targets the residents of Dubai as well as the tourists that visit Dubai on occasional basis. The market analysis summary is as follows: Age- All age groups are welcome at Basha. Teenagers and couples (old and young) all are included in the target segment. Gender – Male and female customers are welcome at Basha Income – Middle and Upper class individuals can visit Basha often. Low class can enjoy the cuisine once in a while. Occupation – Business class and people working on various jobs Education – College and University graduates Target Market Segment Strategy The target market segment is depicted below. It can be observes that Couples and family make a large share of the customer base at Basha restaurant. Businessmen come next in the customer database, tourists and older singles are a small percentage in the customer base for the restaurant. Marketing Programs The marketing programs that can be conducted by the restaurant are as follows: Word of Mouth Marketing and In-Store Marketing Satisfied customers will spread the word around Basha brochures can be spread across the resort so that many target customers can view the restaurant offerings Business parties can be offered lunch messages regarding the dine out Dubai Shopping Festival Tuesdays would be special cuisines for employees as well as customers Local Store marketing All major malls and resorts in Dubai can be provided with brochures of Basha so that potential customers and tourists know about the restaurant offerings and its special discounts Employee families will be offered dinner coupons every month and they can bring in two guests for restaurant publicity Local Media In newspaper campaigns, brochures being placed inside newspapers on weekends stating the specialties of the cuisine along with any other event taking place in the restaurant such as special singing or dancing events. Basha cuisine specialty, the price of the cuisine and the layout of the restaurant such as the view from the terrace floor can be designed and sent to potential customers via direct mail. Events at mall such as games and all can assign Basha meal coupons as prizes so that customers visit the restaurant and try it out Pricing and Profitability Strategy Pricing and Profitability Strategy Food Item Price (AED)   Appetizers   Falafel 10 Hummus 10 Baba Ghanoush 12   Main Course (Single Serve) Mandi 25 Saudi Kabsa 20 Shish Tauk 20 Grilled Fish kofta in spicy sauce 15 Shawarma 15 Chicken kebabs with gremolata 20 Fast Chicken Tagine 15 Maklubi 20 Shish Barak with yoghurt 20   Desserts Bakhlawa 10 Kunafa 12   Beverages (Hot/Cold) Kahva 3 Hot Coffee 6 Cold Coffee 6 Soft Drinks 2 Lime Drink 2 Mineral Water 1 Cost of Goods Sold Items Price (AED) Daily Quantity Weekly Quantity Monthly Quantity Yearly Quantity Daily Revenue (AED) Weekly Revenue (AED) Monthly Revenue(AED) Yearly Revenue (AED) Falafel 10 20 140 600 7,200 200 1,400 6,000 72,000 Hummus 10 20 140 600 7,200 200 1,400 6,000 72,000 Baba Ghanoush 12 20 140 600 7,200 240 1,680 7,200 86,400 Mandi 25 15 105 450 5,400 375 2,625 11,250 135,000 Saudi Kabsa 20 15 105 450 5,400 300 2,100 9,000 108,000 Shish Tauk 20 12 84 360 4,320 240 1,680 7,200 86,400 Grilled Fish kofta in spicy sauce 15 12 84 360 4,320 180 1,260 5,400 64,800 Shawarma 15 40 280 1,200 14,400 600 4,200 18,000 216,000 Chicken kebabs with gremolata 20 30 210 900 10,800 600 4,200 18,000 216,000 Fast Chicken Tagine 15 20 140 600 7,200 300 2,100 9,000 108,000 Maklubi 20 30 210 900 10,800 600 4,200 18,000 216,000 Shish Barak with yoghurt 20 20 140 600 7,200 400 2,800 12,000 144,000 Bakhlawa 10 40 280 1,200 14,400 400 2,800 12,000 144,000 Kunafa 12 35 245 1,050 12,600 420 2,940 12,600 151,200 Kahva 3 50 350 1,500 18,000 150 1,050 4,500 54,000 Hot Coffee 6 20 140 600 7,200 120 840 3,600 43,200 Cold Coffee 6 20 140 600 7,200 120 840 3,600 43,200 Soft Drinks 2 50 350 1,500 18,000 100 700 3,000 36,000 Lime Drink 2 20 140 600 7,200 40 280 1,200 14,400 Mineral Water 1 40 280 1,200 14,400 40 280 1,200 14,400 Total 244 529 3,703 15,870 190,440 5,625 39,375 168,750 2,025,000 Annual Fixed Costs Payroll 100,000 Leased Equipment 500,000 Other fixed costs 80,000 Total Fixed Cost (AED) 680,000 Annual Variable Costs Cost of goods sold 120,000 Marketing and promotions 400,000 Other variable costs 200,000 Total Fixed Cost (AED) 720,000 Projected Income Statement   Year 1 (AED) Year 2 (AED) Year 3 (AED) Sales 2,025,000 2,227,500 2,430,000 Direct Cost of Sales 1,283,400 1,347,570 1,386,072 Gross Profit 741,600 879,930 1,043,928 Expenses       Business License and permits 70,000 0 0 Leased Equipment 10,000 10,000 10,000 Administrative costs (office supplies, telephone charges, postage) 8,000 10,000 12,000 Marketing and promotions 15,000 20,000 24,000 Insurance 14,000 14,000 14,000 Fees of professional consultants 4,000 1,000 1,000 Staff salaries 20,000 25,000 30,000 Management Salaries 40,000 50,000 70,000 Total Operating Expenses 181,000 130,000 161,000 Net Profit 560,600 749,930 882,928 Projected Balance Sheet   Year 1 (AED) Year 2 (AED) Year 3 (AED) Current Assets       Cash 200,000 240,000 280,000 Inventory 140,000 160,000 180,000 Total Current Assets 340,000 400,000 460,000 Fixed Assets       Land 250,000 250,000 250,000 Othe long-term assets 100,000 110,000 120,000 Total Fixed Assets 350,000 360,000 370,000 Total Assets 690,000 760,000 830,000 Current Liabilities       Accounts Payable 2,500 4,000 6,500 Short-term loan 10,000 10,000 10,000 Other liabilities 12,000 15,000 20,000 Total Current Liabilities 24,500 29,000 36,500 Long-term Liabilities 100,000 200,000 160,000 Total Liabilities 24,500 29,000 36,500 Stockholder's Equity       Paid-up capital 500,000 460,000 550,000 Earnings 90,000 100,000 120,000 Total capital 590,000 560,000 670,000 Total Liabilities and capital 690,000 760,000 830,000 References Al Basha in the Habtoor Grand Beach Resort and Spa, Dubai Marina Mall, Dubai – Restaurant Reviews—TimeOutDubai.com. 2012. Retrieved November 27, 2012, from http://www.timeoutdubai.com/restaurants/reviews/2190-al-basha#.ULUmS4W0PrM Feeman, R. (2009). Marketing to Penny Pinchers. Restaurant Business, 108(3), 22-24. Ideal Media, LLC.  Floor, G. (2003). Writing an Effective Business Plan. Business, (613). The Entrepreneurship Centre. Gronroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial Marketing Management, 40(2), 240-247. Jobber, D. (2007). Principles and Practice of Marketing. (A. Chappell, Ed.)Strategy (Vol. 4, p. 1020). McGraw-Hill.  Read More