Starting Segment of Catering Cookery Club - Business Plan Example

Business plan for Aden catering cookery club Table of Contents Industry outlook 3 Result of survey conducted by Aden Catering in Royal Borough of Greenwich 4 Aden catering cookery club 5 MISSION STATEMENT of Aden catering cookery club 5 Objectives 6 Competitors 7 Business Model 8 Services 8 Value proposition 9 SWOT Analysis 9 Investment Capital 11 Stakeholders 11 Management team, board and advisers 11 Market Size 13 Target Market 13 Promotional Strategies 14 Revenue 15 Start-up Cost 15 Breakeven analysis 15 Reference List 16 Appendix 1: Sales Revenue (2 years) 19 Appendix 2: Cash flow of Adren catering cookery club (2 Years) 20 Appendix 3: Start-up cost 21 Appendix 4: Break-even analysis for 2 years 22 Appendix 5: Sensitivity analysis 23 INTRODUCTION Aden catering has decided to make improvements in its existing business by utilizing the opportunities that has appeared in market. The new opportunity is running health eating cookery clubs. To include the new segment in the business, Aden Catering is preparing a business plan which will help the company to identify the possible risk in the business environment. The business plan also identifies whether the investment for the new plan is feasible or not. However, it also includes the probable opportunities in the market that will help the company to grow in future. Identification of strengths, weaknesses and threats forms an important part a business plan. The main aim of the new segment is establish awareness of healthy among the people of Royal Borough of Greenwich (RBG), London. Aden catering has chosen RBG as their target market for the new segment after conducting a thorough market research. Market research indicates the condition of palace where a company is trying to expand or develop its business. It is very crucial because the success of certain business depends on the primary information that is available from the market (IBIS World, 2014). The research also helps company to choose its product or services which is not prevalent in the area. The business plan will thus elaborate all the important factors that should be taken into consideration before starting segment of catering cookery club in Aden catering (EVD, 2009). Industry outlook The catering industry has expanded its business with the addition of many companies which helps to serve the people worldwide. The catering industry in United Kingdom (UK) has encountered economic down turn in 2008-2009 due to the reduced disposable income of mass (IBIS World, 2013). However, in 2010-2011 there had been increase in revenue and it is predicted that in the next five years the demand in catering industry will rise to a considerable level. The main reason for the increase in demand is the rise in income of the mass as well as changes in their taste and preferences regarding food. However, it is observed that people in UK are so not very health conscious (IBIS World, 2013). Similarly, residents of RBG, a borough in London, lack in knowledge regarding healthy eating. Result of survey conducted by Aden Catering in Royal Borough of Greenwich It is recorded that about 245,586 British and non-British residents reside in RBG and they are of the opinion that healthy foods costs more than what they can actually afford (Royal Borough of Greenwich, 2014: London European Partnership for Transport, 2013). Many of them think that even if they eat healthy foods, they suffer from several illnesses which are related to bad eating habits. The illness basically relates to increase in cholesterol and blood pressure; and obesity (NHS, 2013). Obesity gives rise to a number of illnesses such as heart disease, stroke, sleep apnea, diabetes and even cancer (Advameg, Inc., 2013). It is observed that many people spend a lot of time for cooking which does not help them to cook something healthy and delicious since they lack certain cooking skills which are required for preparing healthy foods (Soil Association, 2013). The survey revealed that many people in RBG do not own proper facilities and equipments for cooking food. The lack of knowledge regarding the appropriate equipments and the skills leads to preparation of unhealthy foods (London European Partnership for Transport, 2013). After acquiring enough knowledge regarding the status of the catering industry and perception of the people, Aden catering has decided to invest in cookery clubs which will spread awareness of healthy eating among the residents of RBG. It is obvious that many organisations do not want to provide the cookery club services to its customers since the initiation of the plan requires high cost. The cost relates to in house pay of salary, holiday pay and sick pay to the cookery club tutors. These organisations prefer to hire these services from outside and as a result they have to depend on the availabilities of the services providers. It is noticed that the organisations does not offer services to the residents of Bexley resident or to individual service user which is a good opportunity for Aden catering cookery club to enter the new market and make them aware regarding the health issues and healthy foods (Connoll, 2010). Aden catering cookery club Aden catering cookery club will provide health related knowledge to the people in RBG. Along with health related information, the new segment will also target its customers in educating them to use the appropriate facilities and equipment for the preparation of food which produces healthy foods as well as conserves energy. Aden catering will employ 9 free-lance experienced cookery club tutors for spreading awareness among the residents of RBG. MISSION STATEMENT of Aden catering cookery club The mission of Aden catering cookery club is to improve awareness of healthy eating among the people of RBG. The club can fulfil its motive by spreading definite knowledge about the following: Cook the right food. Use more herbs, spices, vinegar, lemon and garlic instead of salt (Doward, 2014). Always measure the amount of vegetable oil before cooking. Maximum usage of sustainable products such as paper plate, wooden cutlery and recycled products. Maximum usage of ingredients where the following labels are available: red tractor fair trade, MSSC Fish and free range logos (Liverpool China Town, 2014). Use seasonal vegetables and fruits. Restrict the usage of any Trans or hydrogenated fat for any recipes (Soil Association, 2014). Design kitchen in such a way that it suits the recommendations made by cookery clubs. Objectives In order to fulfil the mission of the organisation, Arden catering establishes few objectives which relates to the awareness plan (Pale, 2005). It is planning to run one day cookery club for the existing customers and communities so that they acquire sufficient knowledge regarding the following: How to prepare delicious and healthy dishes at very low cost. It is very important for the customers to understand the relation between their diet and illness. Thus, Aden catering through its cookery club tutors educates them to choose the right diet so that they do not fall ill (My Cookery Club, 2014). The tutors also teaches the basic cooking skills like peeling, slicing, chopping, grating, draining or shifting, measuring, frying, mixing, hand or jug blender using, squeezing lemons, limes and oranges (Roger, 2001). After the training session, the cookery club participants are allowed to take leftover food so that they can consume it or freeze it. Cooking healthy dishes with the help of less expensive facilities such as portable gas burner whose price ranges from only £ 15 to £20. Knowledge regarding checking of proper label of product is also provided to the participants so that they do not get deceived by the suppliers. Before purchasing any product, the customers should visit super stores to get an idea regarding the price and quality (Diabetes UK, 2010). Competitors There are many organisations in RBG who provides the same services to the residents but they are not successful in spreading health related knowledge. The following organisations are operating the same type of services: 1. Royal Borough of Greenwich is educating the residents of RBG about the health related diets and issues for free. 2. Greenwich Community Development Agencies (GCDA) run cookery classes where lessons are given to the participants regarding healthy foods. It provides services to different organisation such as Charlton Football Club, Lewisham council. The lessons that are given to these organisations include ingredients of dishes and equipments. 3. There are children centres which run cookery clubs for tutoring the parents. Some of the children centre has their own tutors while the rest hire tutors from Royal Borough of Greenwich or GCDA. 4. MIND hires services from the individuals and provides those services to their clients. It is noticed that the entire cookery club maintains a specific ruining time in a day. The Greenwich council runs the cookery club for the residents in RBG under a strict supervision which restricts the allocation of attendees so that they cannot attendees from different sessions in other borough. All the cookery clubs are scheduled to run during the term time. The cookery classes belongs to the community organisations and they do not rum independently. The classes are held without the intention of profit maximising (Evans, 2013). Aden catering has carried out extensive survey in RBG which have showed them that people like to invest for values. None of the above organisation can provide value to the customers. However, Aden catering has decided to create a brand value for the cookery club through its marketing strategies so that they can reach their target customers. Business Model The business model of the Arden catering cookery club highlights the advantages of the organisations which enables it to survive in the long run. Services The cookery club will provide knowledge to the residents of RBG so that they are aware of the healthy diets and the cause of illness due to unhealthy dishes(Ayres and Nalebuff, 2003). Value proposition The cookery classes are open for everyone in the borough residents who will be able to pay fees for the club. The classes will be held at different times of the day especially in the evening and weekends so that even the working class can attend the classes. It will be a private business which priorities on providing beneficial services to the mass and it will fetch good profit to the organisation since attendees are charged on per class basis. The decision of the organisation to include cookery clubs to the business is not high in risk ventures. The catering business has earned good reputation and people have knowledge regarding the organisation (Timmins, 2010). The stakeholders are expected to respond positively so that the organisation can operate both the units successfully (Stolzea and Lampkin, 2009). The catering kitchen can be used as the venue for the cookery classes. The garage is converted to kitchen after getting prior approval from the environmental health officers. The cookery clubs were operated at Aden kitchen on behalf of the NHS, Trust Thamesmead and Royal Borough of Greenwich. SWOT Analysis Strengths The main advantage of organisation is that it is a private business. The market has knowledge about the reputation of the catering ad it will be easy for them to embrace the new segment. The new segment already has adequate information regarding the market and has experienced many years of operation in the same market as a catering company. The organisation targets the qualified market and thus experienced tutors are required in order to educate them. The tutors give up to date and flexible knowledge to the attendees during the training sessions. The organisation has the strength to diversify between the stakeholders (Leahey, 2007). Weakness There is no information available regarding the success of such classes. There are other organisations that threat its survival in long term. Opportunities It can sign contracts with the children centres so that they can provide classes to the parents at regular intervals and to become the facilitator. The supervision of the children centres are not in the hands of Royal borough of Greenwich. This is a big opportunity for the organisation to involve in various contracts with the centre. Even the working class people get the opportunity to attend the evening and weekend classes (Dess, Lumpkin and Eisner, 2009). Threats The commitment of the free-lance tutors is threatening due to their independent attitude (Ferrell and Hartline, 2010). There is a possibility of cultural conflict between the stakeholders. Investment Capital The investment capital for the venture will be obtained from the stakeholders. It has been observed at about 36% of the surveyed business owners have succeeded in their business when they have followed a definite business plan, while 18% of the rest have achieved success without employing any business plan (Jane, 2010). The investment capital in the second case in not definite and thus the owner can encounter huge loss. The cookery club will attract customers and the stakeholders will worry if they do not earn any profit despite of huge customer base. The ROI is not based on the responses. All the stakeholders are of opinion that this is an opportunity to grow and possibly work on wider areas after 1 year. Stakeholders The stakeholders of the organisations are as follow: Management team, board and advisers Name Designation Experience Responsibility / Knowledge Ozge ALI Owner of Aden Catering Previously Royal Borough Greenwich Council cookery club tutor Worked for children centre as a café coordinator in 2012 on behalf of GCDA She has the ability to improve the works of cookery class since she has huge network. Good managerial skill, controls the activities and operation of organisation. Irem Akin Marketing Research and planning Worked as a Marketing Director in an events management company. Knowledge about Turkish cuisine and catering market. Responsible for surveying the market and understand the potency of the market. Weiwei Liu Human Resource Member of Chinese association in London. Knowledge regarding Chinese cuisine. Good communicator and helps in coordination in the organisation. The other stakeholders are studying OCN nutrition course so that they can become cookery club tutor after 1 year. The course is an initiative by the Royal Borough of Greenwich which is provided to interested candidates free of charge. Following this path the stakeholders can become tutors and likewise the business can concentrate in reducing the cost. If any problem appears between the stakeholders they work independently to solve those (Trading Economics, 2014). Market Size The market size is determined by the number of players in the market. It is observed that the market has not grown significantly over the years since the participants in the cookery clubs have not responded well during the past years. However, Aden catering cookery club has an opportunity to penetrate in to the market and earn profit because There are 10 cookery clubs in RBG and each of the clubs has approximately 9 participants. The cookery clubs are permitted to run on five weeks in a year. Each of the tutors is ruining five set of cookery clubs throughout the years. When the above activities are taken together following can be determined: 10x9 = 90x5 = 450 participants Thus, it can be inferred that about 450 participants are attending the cookery clubs in a year. There about 22 children centres in Royal Borough of Greenwich and all the children centres are supervised by at least one cookery club through the year. The primary schools are searching for cookery club tutors and they advertise in the newspapers and catalogues for the same. The charities such as cancer research UK and Trust Thamesmead also seek for cookery club tutors who can give lectures on the health issues and how to prevent them. The potential market is bigger than the company had longed for but it is not fast growing. The profit potential is quite in this market since the people are not aware of the health issues and the diet foods (Hansen and Solgaard, 2004). Target Market The following are target markets of the organisation: 1) Working people who are available in evening and weekend. 2) The parents at children centre when they attend to drop their children for studies. 3) The vegetarian and ethnic people 4) Community organizations that are looking for tutors and charities for teaching health related issues and guide the participants to have healthy diet. 5) Business organisations utilize the services to train their employees to become health conscious so that they do not fall ill (Cherunilam, 2010). Promotional Strategies Formulation of promotional strategy forms an important part of the business plan since without these strategies Aden catering cookery club cannot reach the target market (Ahlstrom and Bruton, 2009). The organisation is successful when the promotional strategies help in increasing the revenue. The information regarding the products or services is the main source of knowledge for the target market. The target market acquires this information through different promotional strategies that are adopted by the organisation. Aden catering cookery club will reach its customers through extensive promotional plans (Baines, Fill and Page, 2011). The club can give advertisement in newspaper to will provide adequate information to the target market. It can also advertise in television to spread their information more specifically. In the television ad short clippings of the motivational training sessions are inserted so that the viewers get motivated and join the classes (Gelder and Woodcock, 2003). The organisation can distribute pamphlets in the crowdie area of RBG so that maximum number of people is informed about their club. Revenue Start-up Cost Breakeven analysis Reference List Advameg, Inc., 2013. Greenwich, Connecticut. [online] Available at: < http://www.city-data.com/city/Greenwich-Connecticut.html > [Accessed 24 March 2014]. Ahlstrom, D. and Bruton, G. D., 2009. International management: Strategy and culture in the emerging world. Connecticut: Cengage Learning. Ayres, I. and Nalebuff, B., 2003. In praise of honest pricing. Sloan Management Review, pp. 24-28. Baines, P., Fill, C. and Page, K., 2011. Marketing. Oxford: Oxford University Press. Cherunilam, F., 2010. International business: Text and cases. New Delhi: PHI Learning. Connoll, A., 2010. Winning health promotion strategies. Westport: Quorom Books. Dess, G., Lumpkin, G. T. and Eisner, A., 2009. Strategic management: Text and cases. 3rd ed. New York: McGraw-Hill Education. Diabetes UK, 2010. Diabetes in the UK 2010: Key statistics on diabetes. [pdf] Diabetes UK. Available at: < http://www.diabetes.org.uk/Documents/Reports/Diabetes_in_the_UK_2010.pdf [Accessed 24 March 2014]. Doward, J., 2014. Organic Food Back In Vogue As Sales Increase. [online] Available at: [Accessed 24 March 2014]. Evans, N., 2013. London’s 10 Best Diet-Friendly Restaurants. [online] Available at: [Accessed 24 March 2014]. EVD, 2009. Market Survey UK - Health Foods. [pdf] The Ministry Of Economic Affairs. Available at: [Accessed 24 March 2014]. Ferrell, O. C. and Hartline, M. D., 2010. Marketing strategy. 5th ed. Connecticut: Cengage Learning. Gelder, D., and Woodcock, P., 2003. Marketing and promotional strategy. Cheltenham: Nelson Thomes Ltd. Hansen, T. and Solgaard, H., 2004. Strategic pricing: Fundamental considerations and future perspectives. The Marketing Review, 4, p. 99-111. IBIS World, 2013. Catering Services in the UK Industry Market Research Report. [online] Available at: < http://www.prweb.com/releases/2013/7/prweb10920427.htm > [Accessed 24 March 2014]. IBIS World, 2014. Gyms & Fitness Centres In The UK: Market Research Report. [online] Available at: [Accessed 24 March 2014]. Jane, S., 2010. Eastern Food Store Ltd. [online] Available at: [Accessed 24 March 2014]. Leahey, E., 2007. Not by productivity alone: How visibility and specialization contribute to academic earnings. American Sociological Review, 72, p. 533– 61. Liverpool China Town, 2014. Wholesale Fruit, Vegetable & Flower Market. [online] Available at: < http://www.liverpoolchinatown.co.uk/fruit_&_veg.php > [Accessed 24 March 2014]. London European Partnership for Transport, 2013. Royal Borough of Greenwich. [online] Available at: < http://www.londoncouncils.gov.uk/services/lept/boroughmap/greenwich/ > [Accessed 24 March 2014]. My Cookery Club, 2014. Recipe Search. [online] Available at: < http://www.mycookeryclub.co.uk/cambridgeshire/recipes/ > [Accessed 24 March 2014]. NHS, 2013. Statistics on Obesity, Physical Activity and Diet: England, 2013. [pdf] The Health and Social Care Information Centre. Available at: [Accessed 24 March 2014]. Pale, N., 2005. The managers guide to competitive marketing strategies. Rollinsford: Books Network International Inc. Roger, S., 2001. Marketing strategies, tactics, and techniques: a handbook for practitioners. London: Human Kinetics. Royal Borough of Greenwich, 2014. Population data. [online] Available at: < http://www.royalgreenwich.gov.uk/info/200088/statistics_and_census_information/114/population_data > [Accessed 24 March 2014]. Soil Association, 2013. Organic Market Report 2013. [pdf] Soil Association. Available at: [Accessed 24 March 2014]. Soil Association, 2014. Organic Market Report 2014. [pdf] Soil Association. Available at: [Accessed 24 March 2014]. Stolzea, M. and Lampkin, N., 2009. Policy for organic farming: Rationale and concepts. Food Policy, 34, pp. 237-244. 9 Timmins, C., 2010. Consumer Attitudes Towards Organic Food. [pdf] BOBL. Available at: [Accessed 24 March 2014]. Trading Economics, 2014. United Kingdom GDP. [online] Available at: [Accessed 24 March 2014].   Appendix 1: Sales Revenue (2 years) Appendix 2: Cash flow of Adren catering cookery club (2 Years) Appendix 3: Start-up cost Appendix 4: Break-even analysis for 2 years Appendix 5: Sensitivity analysis Increase in expense by 10% Decrease in sales by 10% Read More