Business Plan for the Wolseley Restaurant - Case Study Example

The Wolseley Restaurant Business Plan 1.1 Introduction “The Wolseley is a café-restaurant in the grand European tradition located in St James’ on London’s most famous of boulevards, Piccadilly. 160 Piccadilly is a Grade II Listed Building. In 1921, Wolseley Motors Limited commissioned the architect, William Curtis Green, to design a prestigious car showroom in London’s West End. He drew on Venetian and Florentine influences and made the interior very atmospheric with its grand pillars, arches and stairways. The Wolseley cars were displayed on the marble floor and cost between £225-£1300. Unfortunately, the cars did not sell well enough and by 1926 the Company was bankrupt. Barclays Bank acquired the building and the branch opened for the first time in April 1927. William Curtis Green was recalled to install offices and a banking counter retaining the Japanese lacquer theme. He also designed specialized furniture including a post box and stamp machine, which is on display today. Barclays remained until 1999. Chris Corbin and Jeremy King secured the site in July 2003 and its restoration and renovation was overseen by David Collins Architects. The Wolseley opened in November 2003.” (Wolseley website, 2007) 1.2 Mission The Wolseley provides accessible and low cost foods to customers with best quality, delicious coffee-based products and also entertainment opportunities to the hundreds of people in the area and the visitors of the hotels which are in a five-mile radius distance of the restaurant. The Wolseley has established itself as one of the best choices of London residents and also for the tourists and the people cities who come from nearby cities. The Wolseley restaurant provides a "complete and best-quality" afternoon experience for people looking for something that will become popular among London diners in a short time. The café has a simple intent. It provides a completely pleasurable, fleshly, yet casual coffeehouse and/or eating experience for many people in London and the people from other cities or tourists. It will be a cost saving venture for the customers, the experience that will encourage them to come back again on many other occasions. 1.3 Keys to Success The major keys (Fullen&Dianna, 2006) that leads to the success of the wolseley in this business are: 1. A maximum quality of the products including foods, coffee-based drinks, and entertainment opportunities. In wolseley, these are of the high quality and maximum value. 2. Customer services: The customers spend their money to enjoy a good time. They would have a bad experience if the services are not of the highest quality. Each of the staffs at wolseley is supposed to be gracious, effective, and thoughtful. 3. Marketing strategy: The wolseley targets its audience in many effective ways. The location of the restaurant is in an accessible area of the city but many customers will need to be familiar with the products and services offered at the wolseley restaurant/café. 4. Management techniques: The wolseley has a firm appreciation on food, drinks, and labor costs. The eating/amusement/coffee-house experience for customers is delivered to them in a state that will not only inspire them to visit the restaurant again, but encourages marketing techniques such as word-of-mouth which is accomplished by recommendations of the products and services to other customers. In the wolseley, proper list of products, management of the staff and workers, and controlling the quality of products is key issue. 2.0 Products The Wolseley is a café, a restaurant and a coffeehouse altogether that provides fair-priced and delicious foods to the customers. In the coffee-house, customers can offer coffee and espresso-based drinks, shaved-ices, fruit flavored and/or juiced drinks, and other drinks that can be typically offered by a coffee shop. There is a dessert section that serves freshly prepared desserts, as well as foods that can be served with breakfast. Lunch services include carry-out and also dine-in items on the menu, but evening hours includes a full-service dining. There are also other services such as a full-service bar and weekend, enjoyable entertainments. 2.1 Product Description The Wolseley's menu will feature a selection of traditional foods and some famous foods from all over the world but generally, the cooked foods are based on "country" cooking themes. Dinner foods are only served in the dining room part of the restaurant. There is also a special area to serve coffee related products. There is also a chance for the customer to have a look at magazines and newspapers while they are offering a food. Recently a wireless internet access is also established so that any customer with a laptop or a PDA or a cell phone can enjoy surfing the web till they start enjoying the foods. 2.2 Competitive Comparison The wolseley is not the only restaurant and café in the city but is a combination of traditional and modern environment. There are many restaurants that provide a traditional environment for the customers but none of these restaurants offer a traditional coffee-house environment or offer evening entertainment and give the internet access to their customers at the same time. 3.0 Market Analysis Summary Restaurant, café, coffee-shop and coffee-house services are dealing with a major growth every year in the country the same as many other parts of the world. Due to the changes in lifestyles today, many people are selecting eating out. One of the main reasons that excite the restaurants is that women work out of home. Some statistics indicate that the amount of money spent by people for food outside of home is increase by almost 20% and it continues to growing because of the increase in the number of women entering the work force. Considering that this situation will lead to two income earners for each family and none of them would have adequate time for cooking. Coffee also is considered as a multi million pounds per year industry in Great Britain and the tendency of people to spend their free time with friends at coffee-shops or coffee houses is increased by 15% per year in last ten years. 3.1 Market Segmentation The ideas and issues below regarding the food retail for the wolseley is based on Charles Lesser’s book mentioned at the reference section. The wolseley as a restaurant and a coffee-house altogether can provide one of the best food and drinking opportunities for approximately 700,000 annual visitors considering that is located in a city like London. The location of the restaurant is near to employment areas in the city. The wolseley customers and the people who live in London will provide the main support for the market but secondary support is receiving from the residents in nearby areas and the visitors of hotels. A Cross-selling chance with coffee drinks and magazines would be provided for customers. 3.2 Target Market Segment Strategy The Wolseley will target the customers inside the town which are residents at the nearby areas to the restaurant, a vast number of hotel visitors, and workers who seek for a good quality yet casual eating and are interested in coffeehouse and entertainments. The customers whom are considered as a part of this market segment eat foods out from time to time, about three times or more each week. The market segment is almost includes singles who are aged between 23 and 45, married couples that currently have no children, students of universities from all over the city and tourists. 3.2.1 Market Needs Dining and/or entertainment demand of customers at the wolseley restaurant is completely related to the success of it. The wolseley is a provider of a full-service eating experience. It must seek for people interested in a combination of traditional and modern style services. The customers at the wolseley need to experience new services and be interested in having new experiences. 3.2.2 Market Trends Recently some areas in the city are dealing with a trend that leads to the creation of evening dining and entertainment areas for the customers. Customers like these places and such places are attracting more people every day. The market chance for coffee-shop constitutions has never been so good in this area of London. 3.2.3 Market Growth The rate of population growth in this area of London is high. Young people, married or unmarried are interested to the services offered at the restaurant and café because is situated in a place near to their work environment and they can spend their free time there with the overtime that is a result of being in a big city like London with an active nightlife. 4.3 Industry Analysis The restaurants and coffee-houses that are components of the food industry nearby the location that the wolseley are totally various. Their concepts scope can be from simple fast-food/chains to very high quality and costly dining restaurants. 4.0 Strategy and Implementation Summary The Wolseley's strategies are based on targeting customers and serving them (Aaker, 2001): There are lots of people in the city who work many hours in a day and have very little time to cook at their home. Most of the downtown industries usually use restaurant dining. There are a lot of tourists and people who come to city enter to do their affair at business centers. 4.1 Competitive Edge The Wolseley keeps a competitive border in several significant areas: The restaurant is located in a place that is near to business centers in downtown and attracts a lot of customers too. The wolseley's building structure allows for flexible dining, coffee-house and entertainment selections which makes the wolseley an attractive place to customers. 4.2 Value Proposition The value proposition is completely obvious for the wolseley and can be completely distinguished its rivals in the market. The wolseley offers cost saving and available menu items and provides amusements as measured by their built-in natural value, at a cost saving price that will promote regular visits. 4.3 Sales Strategy (Steve&Martin, 2006) The first part of sales strategy at the wolseley restaurant/coffeehouse is to set up and maintain a place with their primary components: The people inside London with a 5 mile radius distance of the Wolseley's location, their success depends on these customers with their food and drink products and amusement options. Their second part of sale strategy is to employ the city center hotels and businesses by expanding and keeping close relationships with them and to attract their customers for dining, entertainment or coffeehouse services. The third sale strategy goals for the wolseley restaurant is to gain more than 700,000 customers in year. This part of the strategy supplies basically lunch services. 4.3.1 Sales Forecast(Wallace&Stahl,2002) The sales forecast for the wolseley restaurant/coffeehouse considers no change in the cost of service and product prices, which is a very effective sale strategy for the last few years. They are willing to expand their sale rates from 2.0 million pounds to 2.5 million before mid 2008. The same growth forecast is also estimated for the same restaurants nearby the wolseley and is because of the increase in the population and the business activities nearby the restaurant. The wolseley sales figures (including both the restaurant and the coffeehouse) shows an average of 3.1 "turns" each day for a 171 seat dining room and considering an average tab of 12.54 pounds. The restaurant is open almost 25 days of the month. The figures demonstrate increases in: November, because of Halloween party planning which students like to have part time jobs at the restaurant. January and because of Christmas holidays and celebrations that brings a large crowd toward the restaurants and coffeehouses. 4.4 Marketing Strategy The most vital section in marketing strategies at wolseley restaurant and coffeehouse is offering products with high quality. Their food, drink, newspaper/magazine, and amusement services gain their customers through word of mouth marketing. Next, the whole wolseley's concept and external messages fits their positioning. They provide an excellent service for customers. They then communicate this by advertising their product and services by radio, TV and internet. 4.4.1 Positioning Statement The most vital target market for the wolseley restaurant is their local customers who enjoy new and the best quality dining/amusement/coffeehouse services, The Wolseley fulfills the need for a fascinating, all-in-one dining and entertainment package. The Wolseley was designed to fulfill this need from the first day they started the construction of the facility. 4.4.2 Pricing Strategy The food, beverage, and amusement options affordable and at the same time, the wolseley provides high quality services to the consumer. The customers tend to visit the wolseley again and the staffs at the wolseley do their best to provide a fresh experience for their customers. Therein lies why the food, beverages, and musical/entertainment programming will be relatively flexible. 3.4.3 Promotion Strategy The wolseley restaurant/coffeehouse promotes their brand name and label much more than the product and services offered to their customers. They know that in order to be successful they need to do their best for brand-name integrity, best and high quality menu offerings, and first class amusement and joy. So, their promotion strategy involves concentrating on events and messages that are listed below: 1. Their participation and their sponsorship for special radio and TV programs that customers like. 2. Their involvement in local radio stations, for example by certain programs that give people new ideas on the way they can cook more delicious foods and coffees. 4.4.4 Sales Programs The wolseley restaurant and café has defined sales programs that are stated below: 1. Special event sales by expanding the chances to sell to businesses for private parties and particular events. 2. Music associated special events by expanding relationships with well known artists, pianists or guitarists, either through CD collections or inviting them for live music. 5.0 Management Summary The Wolseley is owned by Chris Corbin and Jeremy King. Mr. Corbin also acts as the main managing partner. Important staffs include a second manager who is a replacement for the main manager when he is not available. He also checks and analyses the operations of the wolseley as his main jobs and reports the statistics to the Mr. Corbin. In other words, he is an assistant manager/senior that does secondary management jobs. At the wolseley, part-time staffs are also hired to help bartending, serving foods and beverages, and dishwashing jobs. 5.1 Organizational Structure The Wolseley is owned by Chris Corbin (65%) and Jeremy King (35%).Mr. King who does mostly the accounting and financing jobs. In addition to main and senior managers, wolseley has hired an additional manager that helps the managers to hold and review the operations in depth. The hired manager has academic certificates and uses modern and the most useful management techniques to hold the wolseley affairs. The managers at wolseley have hired a chef to manage the kitchen affairs. Part-time staffs are hired to do bartending, food and drink serving, and dishwashing jobs. The marketing and accounting operations are controlled by individual contractors and/or consultants. 5.2 Personnel Plan The wolseley managers started their business by hiring 8 full-time salaried staffs.. Part time staffs also were hired to do approximately 125 hours of work per week, servers and waiters were also employed to work 180 hours each week, and dishwashers were employed to work nearly 55 hours each week. At the wolseley, any more hires is considered as part time job and usually the students who are seeking for more income and the training students for their hotel and restaurant management courses, join the staffs. The monthly salary for the staffs is stated in the table below: Responsibility Wage (GB Pounds) Owner/General Manager 19,500 Chef 12,500 Manager 13,000 Sous-chef/Line Cook 12,000 Assistant Manager 9,000 Food and drink server 2 / Hour Dishwasher 3 / Hour Personnel Personnel Plan FY 2004 FY 2005 FY 2006 Owner/Manager 20,996 20,996 20,996 Employees 140,012 140,012 140,012 Total Staffs 26 26 26 Total Payroll 160,008 160,008 160,008 6.0 Financial Plan The main financial plan at the wolseley restaurant/coffeehouse is to gain finance growth by cash flow. They know that this means that they have to grow much slightly than they may want. 6.1 Important Assumptions The financial plan at wolseley restaurant is depended on significant considerations, most of which are described below. The key points are: They consider a slow-growth economy. They consider that everything is considered as is under control in technology. They consider admittance to fairness assets and financing sufficient to keep their financial goals. References David A. Aaker, 2001, Developing Business Strategies, 6th Edition, McGraw-Hill History of the wolseley restaurant/coffeehouse, 2007, viewed on December 07, 2007 Robert Charles Lesser, Market Opportunity Analysis for Residential and Commercial Uses along the Auburn Avenue Corridor. Sharon Fullen and Dianna Podmoroff, 2006, How to Write a Great Business Plan for Your Small Business in 60 Minutes or Less, McGraw-Hill. Steve W. Martin, Sep 29, 2006, Heavy Hitter Sales Wisdom: Proven Sales Warfare Strategies, Secrets of Persuasion, and Common-Sense Tips for Success, Kindle Book Thomas F. Wallace and Robert A. Stahl, Jan 2, 2002, Sales Forecasting: A New Approach, McGraw-Hill Read More