Starting Business - Island View Restaurant - Essay Example

THE BUSINESSES PLAN Business plan for Starting Island View Restaurant TABLE OF CONTENTS Executive Summary 3 Mission ment 4 Island View Business Goals 4 Island View Products and Services 5 The Marketing Plan 6 Segmented Market and Competition 7 Financial Plan 8 Profit and Loss Statement 9 Break Even Analysis 10 Management Plan 10 Conclusion 11 References 12 Executive summary ‘Island View’ restaurant is aimed to be an exciting dinner show so as to provide the target market with a high quality dining experience. Island View Restaurant primarily looks at providing organic food and drinks with international quality to those who come to visit the island. The management aims to open the Restaurant twenty four hours a day and seven days a week. The staff would be best trained and will be hired on the basis of both ability and professionalism. The management aims to provide motivation and to encourage the staff with the help of experienced staffs. We look at those management team who must have at least 10 or more years of experience on the field. The Island View Restaurant’s emphasis will be placed also on efficient management practices in almost all its functional areas of financing, directing, staffing and better decision making. Canvey Island is generally regarded to be in great need of friendly environment with excellent food and drinks. The restaurant will offer wide range of food ingredients and recipes from different countries food specialists. The Restaurant’s menu would be prepared considering wide range of food and drinks from different countries most marketed food and drinks. The restaurant would be a place where international food and drinks are provided to those who come from different areas of the world. So, our customers would be able to taste different international foods like Chinese food, Indian ingredients, Arabian meals etc. Moreover the staffs would be selected from both village and cities and will be given training programs so as to enable them prepare most quality foods and serve a friendly atmosphere within the restaurant. The target audience will be general public and rich people who generally need organic food and drinks. The targeted market includes Canvey Island population of more than 34,000 and more from other cities, islands, and even countries who visit Canvey Island. Mission Statement We will provide our food and drinks at the lowest possible prices. The basic keys of our goals are:- Providing quality food and drinks along with quality services Take better care of our customers and Island visitors Take care of the employees through efficient training programs and better pay schemes Respecting the customers and visitors Reward the share holders These keys of our mission will enable the restaurant achieve our mission goals. The business management primarily understand that any business can be successful only when it realizes why it is in the field concerned and what kinds of services it is supposed to provide to its customers. The priority is customer satisfaction. This customer satisfaction can be achieved by providing right service along with right information at right time and right place. We value this fundamental marketing principle. The mission is to provide great tasting food and drinks as well as to offer efficient and friendly service because customer satisfaction is imperative. Island View Business Goals According to Sharon L Fullen , business objectives and goals should cover both short term and long term expectations of the business. The goals should be typically measured in dollars or other tangible results (Sharon L Fullen, p.56). Island View restaurant should deliver an international menu to the customers which in turn would be more attractive to the customers. We will analyze and assess the customer satisfaction from each kind of services through internal and external surveys held in between every three months. We also propose to conduct continuous analysis and outsider inspections so that it would be helpful to ensure customer satisfaction with the services provided. Our objective is to serve our customers with excellent organic food and drinks. The most attractive part of the restaurant is to celebrate high society of the area through dances, acts, music and demonstrations. Our both day and night services and programs will make the environment alive at all time. The restaurant will be open everyday serving lunch from 11.30 A.M to 3.00 PM and dinner from 5 PM to 10 PM. We plan to serve an outstanding new style lunch and dinners so that our customers should feel a different enjoyment at different environment. The Island views will be highly interested and a rare experience to those who come to visit the Canvey islands; at the same time the day and night services offered at our restaurant and new style lunch and dinners will make customers feel wonderful and extremely satisfied with. The financial management aims at gross revenues of £ 80000 by fourth month and to attain a total sale of £ 140,000 in the first year. . The expectation and estimation of the management is that costs of food and drinks should not exceed 4% of the total operation. The management aims at increasing sales by 67% in the first year and by 40% in the second year. The outstanding quality of our restaurant is its menu itself, because it will be inspired from different continental specialties. The menu will show different international specialties is the most important feature of the restaurant. the paintings and different arts works pasted at different areas of the restaurants will make the environment highly colorful. It will seem to welcome customers always. The customers also will be welcomed to show their works and acts at our day and night services. Island View Products and Services Our customers must feel always welcomed to our restaurant. this goal can be achieved through the international creative food and a different style of quality services provided at our restaurant. Our chef would be having great room in designing and preparing menu offering from different international food styles. The food and drinks should be simple at the same time our chef will keep it ever changing. We feel that changing impressions will be lasting and thus will attract more customers. The menu should offer a collection of ethnic and international food and drinks. The theme of the menu would be to provide food and drinks of healthy, low fat, low cholesterol and natural ingredients. It is generally known that people nowadays concern about natural food and fair trade issues. So, we will always look at providing natural food and drinks. Fair trade issues are growing concerns of the public and hence we take it seriously. We management team wants to be specific about the products and services the island View offers to its customers. Rhonda Abram and Eugene Kleiner say that it is highly important to any starting business to clearly identify and describe the nature of the products or services provided. The business plan should also specify the products and services that it is going to offer to the customers (Rhonda Abram and Eugene Kleiner, p.64). The wines will be modest in sizes. We will primarily focus on wines from California and New Zealand. Moderate International selection of beers will be available at the restaurant. the facilities provided at outside the restaurant especially at busy summer times will enable customers enjoy the island more than that of other times. The evenings would be joyful with sports and other activities. In short, instead of being a simple and traditional restaurant, The Island View Restaurant will be an active and always alive environment for those who seek an extraordinary joyful moments in England. The Marketing Plan Sharon L Fullen says that a market analysis should look at issues such as food and health trends, competitive influences, economic conditions and population characteristics that affect sales volume of the restaurant (Sharon L Fullen. p. 105). Island View Restaurant’s target market and customer desires are well identified so that we would be able to make effective assessment and improve its business further more. The restaurant team values the opinion of Rhonda Abrams that thorough understanding of the potential customers is highly important. If we do not know who are our customers we won’t be able to assess whether we could meet their needs (Rhonda Abram and Eugene Kleiner, p.87). Segmented Market and Competition We understand the value of segmenting customers and defining different segments of the targeted market. Sharon L Fullen opines that a powerful tool in developing a restaurant is marketing concept is to create a customers profile based upon geographic, demographic and economic data and personal observations (Sharon L Fullen. p. 111). Our market is segmented in to three different psychographic groups. Comfort creatures:- Comfort creatures comprise of white collar workers who are being motivated by success and prestige. Celebrators:- Celebrators include those who visit Canvey and other islands to celebrate special occasions. Birthday, graduation ceremonies, valentines’ day parties, anniversaries, school days, teachers’ day programs etc are some of the celebrations people come and enjoy occasions at a restaurant. Soccer Moms Soccer Moms include all types of family members. ‘Moms’ will come in for after school milk and cookies with their kids to relax and enjoy evenings. Apart from these main groups, there is a smaller sub-section of locals of Canvey Island who will visit the restaurant. There are restaurants that need to wait until customers come. But we think quite differently that instead of waiting for customers until they come to visit the restaurant, we should concentrate on targeted segments of comfort creatures, celebrators and soccer moms whose needs match our offerings. Thus, we will create a new arena in the field of food and drinks services offered in England. Advertising Plan We will have messages about the products and services offered here. These messages will be developed and communicated effectively to the customers. In Restaurant Industry, there is cut throat competition among hotels and restaurants that leave no stone unturned to provide high quality services in order to attract more and more customers. The restaurant and hotel industry strongly depends on word-of-mouth recommendations and reputations over advertising. The word of mouth advertising is important factor to retain customer satisfaction for long time and to hold a better share of the market. It will also help the business to increase the reputation of the business. Sponsorship activities like appearing on the public boardwalks and streets such as conventions. competitions and more will be provided so as to attract more customers. The personal and face to face interactions with customers in excellent dining experience will be like an advertising strategy as it will make customers choose our services. Financial Plan Island View’s financial model basically looks at the business concept of plan for the worst, but manage for the best. The first year projections anticipate a below average sales volume, below average per seat turn, but above average food and beverage cost. This would be helpful to make sure that sufficient financial planning should be there to accommodate a reasonable ramp up period, and business success. In addition to the ₤55,000 of owner investments and ₤65000 in grant monies, Island view is seeking ₤150000 in long term loans and ₤100000 in investments for renovations, furniture, kitchen equipments, food and restaurant supplies, marketing and hiring processes etc. Income Statement for the first 2 years Income statement for the first two years- in ₤   Year- 1 Year- 2 Revenues 850000 910000 Cost of sales 700500 745000 Gross profit 149500 165000       Advertising and promotion 6000 5600 bank charges 4800 8700 insurance 2380 4300 maintenance 400 430 Other expences 8700 5600 salary 68000 68000 Depreciation expences 5800 5800 Rent 3290 3290             Net Income 50130 63280 Projected Balance Sheet Balance Sheet   Beginning Year- 1 Year- 2 Cash 120,000 75830 101180 Inventories 450,000 450,000 450,000         total current assets 570,000 525830 551180         Plant and equipment 320,000 320,000 320,000 Less depreciation 0 5800 5800     314200 314200 Total Assets 890,000 840030 865380                 Accounts payable 0             L-T debt 835,000 734900 747100 Owners equity       paid in capital 55000 55000 55000 Retained earnings 0 50130 63280         Total Liabilities 890,000 840030 865380 Cash Flow Statement Cash Flow statement   Year- 1 Year- 2 Operating profit 44200 57800 Depreciation added back 5800 5800   50000 63600       Interests expenses 24300 25700       change in cash 25700 37900 Profit and Loss Statement Gross margin is the most important assumption is the projected profit and loss statement. We show an adjustment increase in Year 2 as we exit our start-up phase of the business and move into our expected annual sales forecast. The restaurant will give priority in developing its customer base and reputation and the growth will be up more rapidly towards the second and third years of the restaurant business. Break Even Analysis Island View Restaurant has an average running fixed costs of ₤30115per month including payroll, rent and utilities for the first year break even. The monthly break even point comes to be ₤46040. Management Plan Most efficient management team will manage our business. There should be a separate management team who are responsible for preparing unique menus and preparing international foods accordingly. The managing team needs to have excellent background in both academic and professional career. Managing directors and other management team are responsible for all managerial actions like planning things, decision making, directing, staffing and controlling. There would be severe competition from among other resorts, hotels and restaurants. But, creating as a unique and innovative fine dining atmosphere with supreme design and decoration will distinguish Island View Restaurant from others. So, it would be able to share great share of the market. The chefs are selected on the basis of experience of at least 5 years in hotel industries. In order to provide quality food and drinks, the chefs must be experienced in providing excellent customer oriented services. We want that our customers should be treated fairly and thus the management plans to provide ongoing education and recognition programs to the employees to ensure fair treat to the customers. Product quality and wide choices of international foods and drinks available at our restaurant will be a success key of the management as it would attract more customers. Conclusion This work presents a detailed business plan for starting a restaurant that provides organic food and drinks. The executive summary provides an easy understanding of the size, and type of the proposed restaurant business. This business plan includes business objectives and start-up financial analysis of Island View Restaurant. The marketing plan includes marketing strategies, sales, advertising and competition analysis of the restaurant. References BRUCE R JEWELL (2000), An Integrated Approach to Business Studies, 4th edition, Pearson Educational Limited, Edinburg gate, England. DAVE HALL, ROB JONES and CARLO RAFFO, (2001) Business Studies, Second Edition, Cause Way Press Ltd, Ormskirk, Lancs PETER RAINSFORD& DAVID H BANGS (2000), The Restaurant Start-up Guide: A 12-month Plan for Successfully Starting a Restaurant, Kaplan Publishing PHILIP KOTLER (1994), Marketing Management, Analysis, Planning and Control, 8th Edition, Prentice Hall of India. RHONDA ABRAM & EUGENE KLEINER (2003), The Successful Business Plan: Secrets & Strategies, The Planning Shop, ISBN 0966963563 SHARON L FULLEN (2004), Opening a Restaurant Or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan & Feasibility Study, Atlantic Publishing Company, U.S.A, ISBN 0910627363 Read More