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Enterpreneurs usually need a sound business plan that is firmly rooted on feasibility that would bring profitability. However, the restaurant industry is highly competitive that is why there is a need to conceptualize a unique theme. A study made by De Noble and Olsen ( 1986) claimed that the hospitality industry has lot of uncertainty and is filled with complexity. The owners of the restaurant are aware of this scenario, thus they are financially committed in making the restaurant a success which capitalizes on good food and unique theme. In Love Restaurant aims to provide authentic Asian cuisine in a customer-friendly environment with a romantic twist.
The total capital requirement needed in opening this restaurant is $500,000 of which $400,000 is allocated as start-up capital while $100,000 as business operations cash reserve. This plan is intended to secure a Business loan of $400,000. Major part of the loan would be used in purchasing equipments, design as well as construction of the facility. Some 20% of the loan would be solely used for Operational Start-Up expense such as lease and payroll. The owners have agreed to invest $100,000 in personal capital.
In Love will be an interesting restaurant since it is a fusion of different Asian cuisine such as Vietnamese, Korean, Chinese, Japanese, and Korean. In addition to this, In Love has a unique feature such as “PaPair Plates” and “Love Wanted”. The mission is to offer authentic cuisine with superb service to our dining customers especially to couples and singles needing excitement.
In Love Restaurant's objectives for the first three years of operation include:
- Keeping food costs atless than 25% of revenue.
- Keeping employee labor cost between 25-35% of total sales.
- Maintaining a small, cozy restaurant with authentic Asian cuisine.
- Averaging sales between $500,000 - 1,500,000 per year.
The location of In Love would be right in the Midtown district of Atlanta. This area is chosen since many developments would take place in this area. According to the website of MidtownAtlanta.org, there are no less than 70 restaurants thriving in the area. Nevertheless, the In Love restaurant would not only stand out because of its good food but because of its theme. The restaurant would be decorated with vivid colors of red in different hues. Moreover, the seats are lounge type which makes the place cozy thereby encouraging intimacy.
Pricing is an important aspect of restaurant promotion since expensive food would turn away customers especially in this time of economic downturn. Customers are now keen on the value for dollar of the food which makes In Love competitive for its affordable prices. Usually, a set meal cost $15 and a $25 meal is enough for two people to share. Rice is also unlimited which is popular to Asian diners. Moreover, waiting staff are available to service the budget conscious diners which is a factor that can be attributed to a successful restaurant ( Pratten, 2003). The main concept behind the pricing is affordability that would be enhanced by good customer service.
Marketing Plan & Sales Strategy
The In Love Restaurant can easily penetrate the market since it is located in a very visible area. The foot traffic is high so passers-by can easily spot the unique restaurant. In addition to this, marketing campaign would be launched targeting college students as well as office workers who want authentic cuisine with a twist.
The main focus of the restaurant are two things: authentic cuisine and a place to be “In Love”. A good choice of marketing mix can deliver powerful messages to the curious public about the place that would establish image and presence.
Print media- local newspapers , advice columns for couples and singles, college journals
Broadcast media- Special shows that discuss the In Love activities of the restaurant, guest speakers at the restaurant who would discuss topics on love and relationships
Direct mail- An invitation for all couples and singles to experience “love” by dining at the restaurant
It is advisable that a public relations firm would be in-charge of promoting the activities of the restaurant for a quarter of the year so that the place would become a household name. The marketing plan has a three-pronged approach, namely:
1) Opening- The PR firm would be sending a press packet that would serve as an announcement to all possible media exposure. Strategic location of printed advertisement and a billboard would send a strong presence to the market. A budget of $15,000 is allocated for this promotion.
2)Ongoing- A Thematic Campaign on a Monthly basis would keep the public interested. Schedules of guest speakers, as well as singers would be open to the public to draw the crowd. The “PaPair Plates” is a promo wherein diners who opt to use paper plates will find a list of potential dates on the back of the plate. These people can be contacted for a blind date by the restaurant.
3)Point of sale- The staff should be trained in handling customer relations as well as promotions. The most important form of referral is word-of-mouth which is a must in building a large customer base.
In conclusion ,the restaurant industry is highly competitive so there is a need to come up with the idea of setting up a restaurant that combines authentic cuisine as well as “Love” theme. This would be a first in the restaurant industry in Atlanta Georgia. The main goal of this restaurant is to provide diners with affordable meals, friendly service, and a chance to meet other people. In order to be profitable, the restaurant would operate on a small scale thereby maintaining a low labor cost and food cost. The restaurant has a good location since the area has high volume of foot traffic. The Marketing Strategy of the restaurant is based on a three-pronged approach that would be handled by a PR firm. Coupled with unique theme, aggressive media exposure and friendly service, the place would hopefully gain a large customer base. Over-all, the commitment of the investors as well as the marketing effort would contribute to the restaurant's profitability.