Proposal of New Venture: Renaissance Dinner Theatre - Essay Example

Proposal of New Venture: Renaissance Dinner Theatre of Renaissance Dinner Theatre Introduction A new venture in the restaurant industry is the opening of new theatre restaurant for fine dining with the combination of the dance hall and lively music. The idea of new theatre restaurant will attract the concentration of the customers because it is a unique and innovative idea. It will be a completely new and different approach in the restaurant industry. The restaurant will follow the theme, 90’s era of European and American history will be used to add the innovation in the restaurant industry. It will bring the new revolution in the restaurant industry because there are no restaurants with this theme and idea of theatre, dancing hall and live music session with all famous cuisines. The selected name of the restaurant will be “Rene sense Dinner theatre”. Products / services portfolio The new theatre restaurant named “Rene sense Dinner theatre” is offering the area of entertainment and fine dining concept with different, tasty and innovative food recipes. While considering the food in the restaurant, the menu includes cuisine of America, France, Germany, Italy, Japan, Mexico, Spain, and the Middle East. The wide range of cuisines is also a new and different idea in the market. Moreover, when it comes to services presenting good food in a friendly environment will be a positive and strong point for the restaurant. The representation of different cultures and music within a colourful environment, which adds an entertainment factor with dinner, will amaze the customers. Customers will be allowed to choose any theme for their table and then the service for that table will be according to that theme. It will delight the customers and the experience of extreme fun and uniqueness will attract and grab the concentration of the customers towards one restaurant that is providing all entertainment activities and food at one place (Rainsford, 2000). Market analysis The restaurant industry is a diverse business the reason is that there are various cuisines and cultures that restaurants offer and follow according to the needs and demands of the customers. There are various restaurants that are offering delicious and different food items. Mostly focus on the services and food quality. People around the globe like fast food items a lot, and it is a part of their daily food intake. It is the reason due to which there is majority of fast restaurants in the industry. However, for special occasions and different taste people prefer to experience uniqueness in food items within a good environment. Although there is majority of restaurants, there is no such restaurant with all these facilities, services, and cuisines. When it comes to food people prefer the taste of the food and variety of the food items, therefore, there are many competitors that are offering good quality and tasty food in different cuisines (Fullen, 2005). Target market and customers For this type of unique and luxurious restaurant, the target market is preferably families, friends and fun seekers. The “Rene sense Dinner theatre” will be an ideal place for vacationing families and friends who will want to experience all types of cuisines and culture, live music, and dance under one roof. The residents of the city will also visit the place for a different experience. The entertainment shows will also be a part of the restaurant theatre area. Thus, the shows will continue the flow of all types of customers. In that flow of customers, many children, teenagers, middle age group, families, corporate level group and over aged people will also be included. However, the main focus will remain on the corporate level group and vacation families and friends. The reason is that they will provide good profit maximization opportunity to the restaurant. IPR considerations Intellectual property consideration has now become the most valuable asset in the world of business. With the help of integration of the of the intellectual property portfolio, it can be said that the patents, copyrights and trademarks and trade secrets protect the idea of the restaurant and its products. Business strategy should identify the needs for the protection of the intellectual property. It can be said that the intellectual property rights protect the claims of ownership of other resources. The most important and the major step in selecting the name is that after selecting any brand name for the restaurant the protection of that name and the brand identity is necessary. For that the registration process for IP protection is a crucial step. Protection of trademark and service mark can only be done after the legal registration. It is also important for the restaurant that the design and patent should be protected. The reason is that there are a lot of patents on kitchen equipment. Therefore, developing custom equipment it is necessary to consider patent or design protection for the restaurant equipment. For the restaurant business ensuring of the IPR is the long lasting step for the success. It will provide the protection to the idea of theatre restaurant. In addition, with the help of copyrights the brand identity will be secured. Need and opportunity After analysing the restaurant industry and market, it can be said that there are no such restaurants that are offering all types of cuisines and entertainment opportunities under one place. It is the reason due to which there was a need for this type of entertainment and fine dining place. Where people can visit and enjoy food, dance, music and blend of different cultures of 90’s era. All these things are adding a value to the restaurant, and it will provide an opportunity to the “Rene sense Dinner theatre” to attain the competitive advantage. With the help of attractive marketing strategies, it can be said that this business will provide maximum chances to increase the profits and revenues. By promoting the restaurant in a different and unique way, the offerings of the restaurants will target those customers whose needs will match the standards of the restaurants. Design Brief Renaissance Dinner Theatre’s target audience will be the individuals and families that seek fun and adventure. The company will offer a diverse range of cuisine, wine, catering services, event and staged show and entertainment for its customers. Features Renaissance Dinner theatre will provide a wide range of entering activities and services provided by its trained and skilled actors. The main focus of the company is to deliver creative, distinct, marketing and advertisement. In addition, sustainable values of the company will remain the prominent aspect for the company to develop its position in the market (Lam, 2009). It will provide a platform for each of its customer to be a central part of the stage and gain instant fame (Nistorescu & Puiu, 2009; Lancaster & Massingham, 2011). The distinct theme of the theatre will allow its customers to experience history’s show, a true essence of nineteenth and twentieth century (Lancaster & Massingham, 2011). Web Plan The theme of the theatre will be based on 1890’s high society décor. The staff will be highly skilled and well dressed reflecting social elegance. The customs of the staff will be based on the Moulin de la Galette. Therefore, the website will be designed that interface with the design. Therefore, it will mainly be stylish, induced with elite design; the colours will mainly be dull and gold to reflect posh and elegant look. There will be different features, objects and animation that will be put on the website to ensure that the visitors do not have to look anywhere else to seek excitement about the latest events, menus and features. However, the presentation of the website will be based on the Paris Impressionist Art to ensure that the customer experience elegance and excitement of the nineteenth century. The key element of the effective strategy of the company will be based on the choice of the marketing channels, designers, and online marketing program. Therefore, the websites will be mainly developed with the targeted advertisement of the groups through the leading marketing partners and online retailers to sell the product. Action Plan It is essential for the organization to ensure that company’s strategies are efficient to ensure its sustainable operations for three to five years. In order to start a new venture, it is important to identify required expenses and resources that would be required to meet its operation. In the Dinner Theatre Business, it initial start-up expenditures require legal costs, property lease or purchase, logo design, Information technology system, stationary, remodelling and other operational expenses. Assets are one of the core components of the organization to run its operations. Thus, the organization would require short-term assets, such as office furniture, computers, kitchen, uniforms, tables, chairs, projectors, etc.). The company would also need inventory to generate sales for the company. Therefore, the company should have sufficient inventory for the next two years. In addition, the company requires having sufficient cash on hand for first few months to ensure that the operation of the company is met through its sales. Long-term assets that will be required for the company are its office computers, kitchen terminals, POS terminals, security and fire alarm system, storage and warehouses. The estimated budget required to start the business will require £500,000 to £600,000. Start up Expenses Legal and Attorney Fee £12,288 Stationery and Office Supplies 12,341 Consultants 3,382 Insurance 9,809 Brochures 3,900 Utility 2,000 Advance Rent 14,000 Research and Development 1,300 Liquor License 100,000 Total Start Up Expense £178,420 Asset Cash Required £50,000 Start up Inventory 75,000 Other Current Assets 17,000 Long-term Assets 175,000 Total Assets 317,000 Total Requirement £495,420 Set targets The company aims to attain an increase in skits, acts, drink, the music, demonstration, food, a small museum, fantastic shows, and dances to generate its revenues. The company sets the following targets that it aims to attain in next three to five years: • Increase the gross sales by £1000,000 from the third year • Ensure that the food costs should not exceed 35 percent of the total operations • Provide unique and distinct menu for local and foreign customers ensuring 100 percent satisfaction of the customers in order to increase high sales volume. • The signature menu will be based on the famous dishes and cuisines of nineteenth and twentieth century. Therefore, the company will hire chefs from the top ranked universities with extensive experience in the field. • The company aims to be a business leader in the industry and aims to retain its customers. The company will frequently monitor its profit and loss accounts, with the local business owner to analyse their marketing, advertisement and operations profits and expenses. Sales Growth and Selling Price The competition in the dinner theatre is relatively low. However, due to the economic condition the consumer spending on the recreational activities has declined (Nistorescu & Puiu, 2009). Therefore, keeping in mind the findings and information obtained from the market analysis the company aims to attain the following sales growth. The company will have several activities to generate it revenues, focusing on target audience and their behaviour the sales growth and prices for each unit has been set ensuring sustainable growth in sales volume (Kotler & Keller, 2006). In addition, the selling prices of each unit have been illustrated in the table below (Kotler & Keller, 2006). • There are a number of local and international customers of the company. Therefore, the company aims to increase overall 36 percent sales growth annual on the lunch hour sales and dinner sales. • The company aims to increase its dinner show sales by 25 percent. Therefore, the company will have the fixed ticket price of dinner show sales at £55. The seating capacity will vary with the climatic and weather conditions. • The company expects to increase its Bar Sales by 26 percent. However, the prices of the liquors will be varied according to the brand its offers but mainly expects per person to spend £35 on the bar. • Increase its catering sales by 55 percent. Therefore, the company expects to at least include two events in the summers to increase its sale. • Increase its high tea sales by 38 percent that will be fixed at the price of £8 per person. Year 1 Year 2 Year 3 Unit Sales       Lunch Sales 78,975 86,873 95,560 High Tea Sales 9,720 10,692 11,761 Dinner Sales 66,335 72,969 80,265 Dinner Show Sales 68,074 74,881 82,370 Bar Sales 28,350 31,185 34,304 Catering Sales 3,240 3,564 3,920 Total Unit Sales 254,694 280,164 308,180 Unit Prices       Lunch Sales 14 14.98 16.03 High Tea Sales 18 19.26 20.61 Dinner Sales 24 25.68 27.48 Dinner Show Sales 55 58.85 62.97 Bar Sales 28.57 30.57 32.71 Catering Sales 7,250 7,750 8,300 Sales       Lunch Sales 1,105,650 1,301,358 15,318,27 High Tea Sales 174,960 205,927.9 242,394.2 Dinner Sales 1,592,040 1,873,844 2,205,682 Dinner Show Sales 3,744,070 4,406,747 5,186,839 Bar Sales 809,959.5 953,325.5 1,122,084 Catering Sales 23,490,000 27,621,000 32,536,000 Projected Profit and Loss The primary aim of the theatre is to increase its overall profits and cash flows by 26 percent annually. The company will stress on cost efficient strategies, specifically in its advertisement and would emphasize to get higher rating and reviews from its customers. In addition, the labour costs will be relatively low than the other competitors in the industry. It will mainly emphasize on getting and training new graduates from the hospitality industry and interns that would allow the company to be more innovative and strategic. Pro Forma Profit and Loss   Year 1 Year 2 Year 3 Sales 7,666,320 9,023,259 10,620,375 Cost of Sales 2,355,984 2,695,245 3,11,008 Operating Expenses 945,011 974,038 1,018,075 Operating Profit 4,365,325 5,353,975 6,489,292 Net Profit 3,271,576 4,013,690 4,865,701 References Ferrell, W. P. (2009). Marketing. Mason: Cengage Learning. Fullen, S. L. (2005). Opening a Restaurant Or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan & Feasibility Study. New York: Atlantic Publishing Company. Kotler, P., & Keller, K. L. (2006). Marketing Management (12th ed.). New Jersey: Prentice Hall. Lam, C. (2009). Legal Aspects of Marketing and Event management. New York: Books on Demand. Lancaster, G., & Massingham, L. (2011). Essential of Marketing Management. New York: Routledge. Monsanto. (2014, April 29). Business Ethics - Monsanto. Retrieved from http://prezi.com/3tn7tjwom07e/business-ethics-monsanto/ Nistorescu, T., & Puiu, S. (2009). Marketing strategies used in crisis - case study. MPRA Paper 17743, University Library of Munich, Munich. Rainsford, P. B. (2000). Restaurant Start-Up Guide. New York: Kaplan Publishing. Werhane, P. H. (2012). Globalization and Its Challenges for Business and Business Ethics in the twentieth Century. Business & Society Review, 117(3), 383-405. Read More