Joy-bringers Restaurant - Case Study Example

Joy-bringers Restaurant Student’s Name Course Instructor Date PHILIPS RESTAURANT Opposite Edwin Flack Ave Olympic Pack, Sydney admin@joy-bringersrestaurant.com www.joy-bringersrestaurant.com Table of Content 1. Executive Summary……………………………………4 2. Business description and vision………………………..4 3. Definition of the market……………………………….5 4. Description of products and services…………………..7 5. Organization and Management………………….…….9 6. Marketing and sales strategy……………………….....10 7. Financial management………………………………...11 8. References…………………………………………….18 Executive Summary Joy-bringers enterprise is a partnership whose proprietors are Philip and Jane Tomlin. They are planning to launch a restaurantwhich is to be situated near ANZ stadium opposite Edwin Flack Avenue. The business is scheduled to launch its operations in about three months’ time. The management of the business will be in the hands of the proprietors. It will be led by the General Manager, Mr Philip Tomlin. He will be the overall overseer of the business. This business plan gives a detailed coverage of how the business will run its operations after it has been launched. Most of the information in this plan are mainly forecasts and therefore cannot be used to gauge the financial performance of the business. The marketing strategy has highlighted the way the business will cut through the market and establish itself as a market leader. At the same time, projections have been made in relation to the assets that the business will begin its operations with. In using this business plan, the user must understand that this is more of a mini plan and it may not cover fully every detail that is required in a complete business plan for big companies. Business Description Joy-bringers restaurant is one of its kinds. The whole concept was uniquely developed by the owner, Mr Philip Tomlin. It is situated opposite Edwin Flack Avenue near ANZ stadium. The building is on 85m2 piece of land. The preference for this place was based on how strategically placed the restaurant would be. The restaurant will serve quite diverse meals that meet the needs of all members at affordable prices. The restaurant will be designed with unique and exceptional décor to give our customer unprecedented luxury. This will be combined with suiting colours. Vision Statement The reason we exist is to ensure we offer products and services that exceed the expectations of our customers in all ways. The blend of services and products we offer will touch every sense of our customers including taste, smell and sight. We are always focused to ensure that our vision exactly reflects who we are. Mission Statement We look forward to building a brand that will be an anthem to every consumer. We will be defined by quality in terms of service delivery, our products and our pricing policy. We look forward to providing meals that will notonly meet the daily needs of the consumer, but also health of the consumer into unforeseeable future. Objectives and Goals To break even before the third quarter of our operations To control 8.5% of the market share within 3 years To open at least two other outlets within one and a half years To diversify our products and services as fast as we can To the ISO Certification within 6 years Brief History of Joy-bringers Restaurant The idea of this business entity was conceived by the owner sometimes back when he was working in tourism industry. His dream was to make quality food available to consumers in an environment that will leave them soothing. Therefore, the putting up of Joy-bringers restaurant is simply a dream come true. Definition of the Market Food is a daily need that is supposed to be a basic right to any individual. The industry within which this business operates in is a tool used to meet this basic need. It is one of the most competitive industries. There is no room for monopoly at all. The size of businesses varies greatly with respect to the needs they are determined to satisfy. The issues surrounding this industry that have raised great concerns are health and prices. While most of the restaurants are very profitable at the end of every financial year, their meals are merely health hazards. This restaurant is focused on ensuring that the health of our consumers is our major focus. Our target market comprises majorly of the people who work nearby. These include both employed and self-employed. Our main meal will be lunch which we look forward to capitalize upon. Most of our customers in this region have preference for fast foods as opposed to slow foods. We look forward to penetrating the market before we shift our focus to market share. SWOT Analysis a) Strengths The business enjoys the vast experience by the management The business is strategically placed to attract a mass of customers The business philosophy is a tool that will propel it to greater heights The quality of products will be exceptional b) Weaknesses Start-up capital is likely to pose a challenge The process of licensing and accreditation is too bureaucratic Stiff competition from existing restaurants is expected c) Opportunities The demographic information is in favour of this business The lifestyle of the people in the region is in line with our products There are global opportunities We have the best research and development crew d) Threats Some of the legislations may not favour this business Whenever people go for holidays the businesses are very low Growing litigations against restaurants offering first foods is a great challenge Inability to effectively gauge the fluctuations in demand may haunt the business Products and Services We will be offering full menu for breakfast, lunch and dinner. Nevertheless, our main meal will be lunch. Our emphasis will be on satisfaction not only in quality, but also quantity. We will not ignore the appetizers and drinks whose role is to augment our meals. While our customers are waiting to be served or being served, soft music will provide such a refreshing experience all through. We will be hosting special nights during which we provide unforgettable atmosphere and experience through meals and musical performances. The following are some of the meals this restaurant will be offering. Breakfast: Tea Chocolate toast Cakes Sausage Crumpets Bread Iced Tea Lunch: Chilli Chicken Ham and Cheese Tomato and Pesto Baked Potato Chicken Caesar Salad Vegetable Penne Pasta Fish Pie Steak Sandwich Dinner: Rice Pilaf Sautéed Spinach Grilled/Steamed Vegetables Mushroom Sauté Grilled Asparagus Snacks: Lamb Filed Pizza Tandoori Chicken Pizza Chilli Prawn Pizza Soft Drinks Orange Juice We are looking forward to bank on quality and pricing to be able to control the market share within the reasonable period we have set. The meals we have highlighted above are just a schedule of what we will be offering. We will make necessary adjustments as required depending on demand and performance of individual products. We therefore add or remove meals from the menu depending on the performance of the meal. Organization and Management Joy-bringers restaurant is a partnership. The two partners are Philip and his wife Jane. In as much as they will be managing this business as a family item, they look forward to expanding as much as they can into a corporate business. There are underway plans to register it as a company if the business attains a certain level of financial strength. In this regard, the business will be managed by the two owners as managers. Philips will be a General Manager performing the role of an administrator. On the other hand, Jane will be in charge of accounting and finance section of the business. The roles of the managers will be aligned in a manner that will enable them complement one another in case the need arises. Besides the managers, the key skill needed in this particular business relates to the chef. The restaurant will hire experienced chefs to ensure the quality of the meals is never compromised at any given point in time. The chefs will be divided according to their area of specialty. Besides the chefs, the business will also hire other general workers to discharge all the responsibilities of the restaurant. These include cleaning of utensil, the restaurant, tables, etc. There will also be sales representatives who will be in charge of collection of daily takings of the business. The managers of this restaurant have both academic and professional qualifications that will be of great benefit to the success of this business. Philips, prior to starting this business was working in one of the branches at Virgin Group as procurement assistant. He has had a long period of experience in the management position. He holds a graduate degree in procurement. He has other professional qualification that will be of great significance to this business. On the other hand, Jane was working in the same position in a hotel at Melbourne. She held that position for over five years. She has had passion for hotel industry since she was in grade 5 in school. Marketing and Sales Strategy It is worth emphasizing that the place where the restaurant is located is quite strategic. The business will be in a position to attract both families and businesses. The research and development carried out indicates that the consumers in this region are divided into some segments. Some of the targets include families, business employees and owners, travellers, etc. The products we offer will be designed to meet specific needs of the segments. The marketing approach used will be appropriately aligned according to the uniqueness of the specific segments. The business employees and owners are our major customers for lunch meals. On the other hand, families and travellers are our target customers for relatively all meals. The travellers and families are projected to contribute less revenue as compared to business employees and owners. At the beginning, the business will operate only a single outlet. The products will be sold directly to the consumers from the restaurant. At the same time, the restaurant will be delivering orders to consumers in various businesses around. The distribution therefore will only be through retailers direct to the consumers. Marketing and Promotion Strategy The design of marketing and promotion of the products and services of this business will be greatly influenced by the philosophy of this restaurant. The use of radio, fliers, billboards, posters, and newspaper will be relied upon to promote this business. At the same time, customers shall be issued with pamphlets after their meals to give them more details about the restaurant. These details will include contacts, time of operation, the business philosophy and vision, the products we offer, special offers and discounts. This is meant to increase awareness of the restaurant among people around. At the same time, the restaurant will engage in social responsibility activities and participate in charity work among the community. Product and Pricing Strategy The business is committed to offering quality meals in a state-of-the-art environment. Our menu will leave many customers soothing and keep coming back. Special packages of meals will be designed to meet the needs of consumers at family level and our business customers. At the same time, the entertainment will be provided as a social refresher to our customers. Besides, there will be other services that the business will be incorporated to ensure the business attracts more customers. Financial Management This section deals with financial forecasts and estimates of the business for the first financial year. Note should be taken in relation to the fact that this are mere estimates and they do not guarantee future occurrence. They are prone to variations in relation to the changes in market and industry performance. There quite a number of assumptions that have been made to come up with the financial statements of this restaurant. Sales Forecast Based on the strategic location of this particular restaurant and the unique concept of the business, it will be realistic to project good financial performance during the first year. This is arrived at after a comparison with other businesses of this kind from around the region. These plus other factors of consideration, the business are estimated to record a sales volume of $620,000 during the first financial year. The sales are projected to grow at a rate of 24% on annual basis for the next three financial years. Since the business will incur a lot of expenses, the net income is projected to be very low. The increased expenses are in relation to heavy investment in promotion and advertisement activities. The net income is projected to be about $28,500. The net profit is expected to grow at a rate of 32.5% annually for the next three financial years. Similarly, it has been projected that the cost of goods sold will be 65% of the sales revenue so as to warrant a 35% of sales revenue. This cost of goods sold will translate to 403,000. Estimates of the required facilities of the restaurant The location of the restaurant is opposite Edwin Flack Avenue near ANZ stadium. The building on which the restaurant will be is on 85m2 piece of land. The restaurant is estimated to accommodate about 80 seats. The facility has been bargained up to a lease rental of $3,850 per month. This value is other charges inclusive, i.e. property tax. Salaries, wages and allowances The General Manager: $1500 The Finance in Charge: $ 1200 Chief Chef: $800 Other employees: $500 The figures given above reflect the total of salaries and allowances per month. The salaries and allowances are to be reviewed on annual basis. It is supposed to be increased at a rate slightly lower than the growth in sales volume. The total expenses under salaries and allowances are: 1x1500=1500 1x1200=1200 1x800=800 8x500=4000 Total per month = 7500 Total per year = 90000 Projected asset requirements Opening inventory 26000 Lease deposit 20000 Renovations over the year 33000 Furniture and fixtures 68580 Depreciation In this case, the value of depreciation has not been factored. It is estimated that assets in the business will not record too much of the depreciation. Nevertheless, from the second year on, the value of depreciation will be charged at maximum of 30% and minimum of 10%. NOTE: Pro forma financial statements should not be considered as financial reports because they are merely estimates. First, these statements have been named pro forma statements because they do not follow all the necessary double entry requirements because there is some information that could not be accessed. These figures are subject to variation depending on the performance of markets. They play a role in designing a sketch of the way the financial feasibility of the business can be assessed. Many assumptions therefore have been made in coming up with forecasted values on the financial statements. Most of these figures have been based on the prevailing market prices and trends. At the same time, it is worth noting that most of the figures have been simulated from the financial information of restaurants of the same nature. Estimate of Start-up Costs Inventory 26000 Leasehold deposit 20000 Furniture and fixtures 68580 Licensing 2450 Equipment 52000 Marketing and promotion 67050 Others 36000 Total 272080 Joy-bringers Restaurant Pro forma Balance Sheet Non-Current Assets Leasehold property S150,000.00 furniture and fixtures S68,580.00 Equipment S52,000.00 S270,580.00 Current Assets Cash S34,000.00 stock S25,690.00 Prepayments S8,800.00 Debtors S12,420.00 S80,910.00 Current Liabilities Creditors S31,000.00 accrued expenses S4,200.00 Overdraft S8,900.00 S44,100.00 S36,810.00 S307,390.00 Liabilities and Equity Capital S88,300.00 prof & loss a/c S28,500.00 Debt S190,590.00 S307,390.00 Joy-bringers Restaurant Pro-forma Income Statement sales revenue S620,000.00 cost of goods sold S403,000.00 gross profit S217,000.00 operating expenses salaries and wages S90,000.00 lease rentals S46,200.00 Electricity S13,500.00 Other S38,800.00 S188,500.00 net profit S28,500.00 References Atril, P. & McLaney, E.(2010). Management Accounting for Decision Making With My Accounting Lab Access Card. Edinburgh: Pearson. Baack, D & Harris, G, 2012, International Marketing, Sage Publications, Washington, DC, p.112-124. Covello, J & Hazelgren, B 1995, The Complete Book of Business Plans (Small Business Sourcebooks), Sourcebooks, Illinois, p119. Drury, C 2009, Management Accounting for Business, Cengage Learning EMEA, Hampshire, p45. Ittelson, R.T. 2009, Financial Statements: A Step-by-step Guide to Understanding and Creating Financial Reports, Career Press, New York, p63. McDaniel Carl, C & Gates, R, 2009, Marketing Research Essentials, Wiley, New York, p.98- 145. McKeever, M. 20Page, R 2003, Hope is Not a Strategy: The 6 Keys to Winning the Complex Sale, McGraw-Hill, New York, p88-9. 10, How to Write a Business Plan, Nolo, New York, p13-14. Page, R 2003, Hope is Not a Strategy: The 6 Keys to Winning the Complex Sale, McGraw-Hill, New York, p88-9. 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