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The business plan

Business case for organic restaurant :

Executive summary:

The business plan of restaurant is establishing for Studio67, a new and fresh medium-sized restaurant placed in a neighborhood of Portland, Oregon and on behalf of them now I establish a new restaurant in UK with a same name in Central London. Studio67's focus will be on fundamental and innovative indigenous food. A view on organic elements is relied on Studio67's commitment to sustainable exploitation. In addition, the restaurant secures local foods in potentially, decreasing their addiction on fossil fuels applied for transportation.

Services

Studio67 offers UK based customer a voguish, provide a great place to have food in social environment condition. The Chef of this restaurant will have a great repertoire of cultural factors and formulas. Studio67 assumes that the bulk of purchases will be done according to the experienced chef's recommendations. Racial recipes will be applied to give the customers with a different, unusual menu with different taste and different design. Chef will also be given importance on dishes which are healthier, find out the tendency in between the industry of restaurant for the needs for healthy cuisine.

Customers

Studio67 considers that the any market can be divided into four different groups that it intentions to aim. The first group is consists of the rich persons which are the number of 400,000 people. The second group that are our target groups that is adult and young and happy customers which are now increasing by 8% according to the annual rate and among them the number of potential customer is 1,50,000. The third group is rich hippies who usually expect menu as well as ethnic cuisine. The fourth and the last group which is especially showing their intention to the menu's healthy offerings is dieting women which number 350,000 in the UK recognizing place.

Management

In UK, Studio67 will have to set up a strong management team. The mangers have to have the broader experience in management sector of organizations and should have the ability to control and monitor the 6 to 45 employees. Financial manager will play the roles for all of the finance and accounting activities. Lastly, Studio67 will have the experienced chef who will be responsible for the back-end production of the venture and who can give concentration on the cultural ethnicity and make the food on the basis of this.

Financial success is the most significant for the company which will be attained by rigid control on finance. In addition, achievement will be assured by providing a service of high quality and tremendously fresh and non- oily foods with interesting twists. For doing the good business in UK, the company can take the plan of increasing the menu rates for attracting more and more customers.

The analysis of market and financial refer that with a start-up expenditure of $141,000,Studio67can yield more than $365,000 and $565,000 in sales by year one and year two respectively and make net profits of more than7.5% on sales at the end of year three. Profitability can be attained by year two.

Objectives

  1. In first year, sales will be $350K where in second year it can be more than half a million.
  2. Staff cost will be keep on $300K in the year of first, which they want to do less than that in 2nd year.
  3. 7.5% profits on sales can be reached in year three.

Mission

Studio67 is a great place to eat, combining an aggregating environment with good, fresh and interesting food that is also very better for the people who eat our restaurant. We want reasonable profit for the owners, and also want to give rewards for the performance of employees.

Literature review:

Studio67 is a medium-sized and one of the best single-unit restaurants. We mainly concentrate on organic and innovative menu item. The restaurant will be placed in UK in Central London, where majority of the rich people are living and for sight seeing most of the people are coming here. So , the company take the strategy of great placement of restaurant. Most significant factor to us is our financial achievement, but we think that this will only be attained through providing high-quality service which is more standardized and more clean, non-oily food with interesting twists.

Company Ownership

The restaurant will first start and operate as a simple sole proprietorship, owned by its founders.

Start-up Summary

The company's founders are Andrew Flounderson and his associate Jane Flap. Jane mainly concentrates on the financial matters and Andrew on the recruitment, training and development issues. Jane achieved her educational qualification on the background of business from the University of Berkeley.

The company has establish the place and ensured the lease for $2,000 per month. We will be capable to establish shop in time to start growing support a profitby the terminating of month eleven and can achieve profit in the year of second. The location is already outfitted as a restaurant so we determine to start the business with a total of $40,000 in capital, plus a $100,000 SBA-guaranteed loan, to start up the new branch in UK.

Information about market

Due to the founders' relation inside the very trendy location of UK, we have a great feel and extra benefit for the place and its core group of customers. They will all exchange something similar, which is a notion of being in the "in crowd" and having "gotten it" in life. Though the crowd of customer will be different and can varied time to time and not related with each other in each division, each division is supplemental to the others. We make plan to increase menu rates as the restaurant attains more and more crowded of customers, and to make assure we are charging a premium for the feeling of being in the "in crowd."

Market Segmentation

The Lonely Rich

Most of the lonely rich are workers who done the job in technological sector these days, and most of those tech workers are workers who done the job on the internet. Their life has become their servers of websites and computer code they write, and the people who assist them to make the decisions in that world. They are stamping ground with each other, but urgently desire to become away from it and apply the investment they are extorting up. Because this fund has come fairly and easily for them, it is especially easy to divide them from their money back - they spend the most on drinks, appetizers and tips.

Young Happy Couples

The restaurant will have an environmental condition that motivates customers to bring dates and to have couples reach. It won't be cumbersome for others, and Studio67 does wish to be a social place where people can meet each other and develop a social and friendly network. These young couples are generally very successful but balanced and adjustments won't be spending as much on drinks.

The Rich people

The rich people in UK are a big group of customer of our company with enormous impact over the city's government and private enterprise. They wear the clothes of tie-die but drive BMWs and starve the thinking of being in a social boundary that is changing the world - even if in different ways than in their glory days. We will cater to their ecological ideology and contribute to charities to help them part with more of their money.

Dieting Women

The menu of organic food will always have a line of extremely delicious and tasty and very low-fat meals. Studio67 will always have arranged the tables for women meeting like they do in shows likeSex and the City, to discuss all types of matters while feeling good about the food they eat.

Project resources:

Financial resources:

The company has establish the place and ensured the lease for $2,000 per month. We will be capable to establish shop in time to start growing support a profitby the terminating of month eleven and can achieve profit in the year of second. The location is already outfitted as a restaurant so we determine to start the business with a total of $40,000 in capital, plus a $100,000 SBA-guaranteed loan, to start up the new branch in UK.

The Menu

The menu is going to be extremely simple but changing day by day such as: its premium rate, its taste and also change on the menu item. We will keep and sustain a small group of constants on the menu and then feature and design to plan a chef's recommendation that we plan to have 85% of meals ordering and also serve this to customers. This will help us to decrease waste and plan elements and purchasing.

Organic Ingredients

The organic ingredient element will permit us to price to the extremely wealthy Internet entrepreneurs who are finding out to spend an exorbitant amount of money to have peace of mind that their money is still return back to themselves. We will be extremely ecologically aware as well, and spread this across our literature. Eating at Studio67 will feel like having contributed to the Sierra Club and drinking fresh squeezed orange juice.

Ethnic Ingredients and Recipes

Our chef will have great latitude in planning and creating menu offerings from many different world cultures. We will endeavor to procure all the traditional, authentic ingredients necessary to hold true to these varied and interesting cultural recipes.

Interior Accoutrements

People persuade to keep their life more interesting, and the company's artwork will concentrate on the world influence that is mainly to the trend of the Studio67 chef.

Sources of resources:

Financial resources:

Sources of finance: A company can be raised its sources of funds by different ways.

Personal Savings - Is the amount which business person or a partner may have and which is available for use.

Tighter Credit Control By controlling the amount owed by credit customers reduce the assets and and this fund can be utilized for any other reason. It is considered as opportunity cost as it could be used to generate profit. However it could lead to lost sales or customer goodwill hence its effect needs to monitored as it could reduce its competitive advantage in comparison to its rivalry.

Share issues it is very much useful for limited company. It involves that a business selling new share entitled to the shareholders to share in business control and these shares give shareholders the right of directing the company. And shareholders participate the election of board of directors. But whether this company is a recognized company in Portland and want to establish a branch in UK, it can easily get the loan from the commercial bank as a business loan. We expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteed bythe SBA as a 10-year loan. This provides the bulk of the start-up financing required.

Human resources:

Obviously, the company recruits or arranges the experienced person for establishing their business in UK market and try to achieve profit. They can hire people from their native country that is Portugal or from UK. But it is more suitable for them to recruit employees from UK because these people can have more knowledge about the current trends about UK market and they have the idea about the demand and needs of UK customers.

Implementation of the project:

Strategy and Implementation Summary

The strategy of our company is very simple and easy; our main purpose is to be successful by providing customers a mixture of better, healthy, interesting food, and an environment that attracts "trendy" people likea magnet. Implementation isn't easy, but we have to do this for becoming successful in UK market and it is the part of our business plan.

Competitive Edge

Our competitive edge is the menu, the chef, the environment, and the tie-in to what's trendy.

Sales Strategy

According to the table, we expected to deliver sales of about $350K in the first year, and to double that by the third year of the plan.

Marketing strategy:

Successful restaurants apply better strategy of marketing and people give feedback and respond to them by visiting their place. Many restaurateurs spend quite a lot of fund in restaurant marketing and till now, their restaurant is not getting the customers that they are wanted. Surely, their restaurant marketing is not working and it is not suitable and acceptable for their business.

Marketing strategy of many restaurants that habituated to work, don't work anymore.This could be because the marketplace is diverse (majority of the people are finding out for restaurants online and avoid the old fashion ads in radio, magazines, newspapers, etc.), and because of ending up everybody applying the same old restaurant marketing strategies, and their message possibly gets lost in a sea of restaurant marketing bombardment that people get.

There are three key marketing strategies for establishing restaurant business. These are:

Set Up Joint Promotions

In this strategy, we have to determining the features and actions of business's most profitable customers and then concentrating to other non-competing businesseswhich are already reaching them. Then find out a way to establish some joint promotions and advertising. This demonstrates strategy creates remarkable results for very little expense. The restaurant's menu adds various special dishes recommended by the health club's nutritionist. It also provides discount membership coupons for the club though their advertising mentioned the tie up to gain health aware customers who usually ignore food made in gourmet restaurants.

The health club's monthly newsletters consists a reprint of the restaurant's healthy new menu items recommended by the club's nutritionist. They also provides the restaurant's discount coupons to their members.

Reveal new niche markets

Continually concentrate on new niche markets the company can provide. Then improve customized diversion of our advertising appealing to the special concerns of prospects in each niche. Offer specific solutions to their unique needs and the restaurant will uncover new groups of customers eager to buy from you.

Exploit Emerging Trends

Pay attention to changes which is noticed in restaurant business and markets. The restaurant have to identify trends business can turn into new sales opportunities before business competitors. The first company to distinguish an emerging trend and take action often becomes the market leader in their industry.

For example, many smallbusinessestook advantage of the Internet early in its development. They used it to attractnewcustomersthey weren't reaching off-line and to capture customers from competitors who didn't yet recognize thebusinesspotentialof a web site.

Start using these 3 marketing strategies to create permanent growth for your business. Use them repeatedly to continue adding new layers of permanent income without inviting competition.

In case of restaurant studio67, we can use the first marketing strategy of setting up joint promotion.

Monitoring & controlling:

For food service restaurant, we may have to buy food products; that's the reality. The largest expenditure for most food service organizations is the cost of food. But we can reduce the cost of food. Even a 3% reduction in food costs for a restaurant grossing $ 1,000,000 with food costs of 4,00,000 means an approximates savings of $12,000 which will go straight to the company bottom line.

In order to control food costs effectively, there are four essential things which we need to do:

  1. Forecast how much and what we are going to sell.
  2. Purchase, receive and prepares according to these forecasts.
  3. Portion effectively.
  4. Control money, waste and theft.

Thankfully, an improvement in technology and management techniques allows smart restaurant operators to keep food costs within the boundaries needed to generate a profit. While still providing their customers with the level of service that they need to generate to repeat business. The restaurant manager must be prepared to develop and monitor cost control program, particular food costs to maintain profitability.

Reference:

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