Business Plan Assignment Sample 3: Restaurant Establishment
Restaurant Business Plan
Top Chef Restaurant
1.2 Background Information
Top Chef Restaurant will be a restaurant that will be offering a selection of foods and beverages at highly discounted prices. Furthermore, the restaurant will offer organic foods and beverages to its customers, which will set it apart from other competing firms within the target location. Serving organic products will be in line with the global trend, since consumers are becoming more health conscious, thus opting for healthier food options. The restaurant’s menu will include foods such as sandwiches, chicken wings, French fries, burgers, salads, appetizers, and hot dogs. The restaurant will be unique since it will only offer 100% natural products, and will not contain trans fats, while at the same time having low sodium, cholesterol, and fat levels. The beverages served will include fresh fruit juice, organic coffee, and organic tea. Thus, the restaurant will succeed since it will appeal to clients who are highly selective regarding what they eat and it will appeal to their preferences.
1.3 Summary Statement of Financial Needs
For the successful launch of the restaurant, US $400,000 in funding will be needed. These funds will be used for covering startup costs and providing the working capital for the business. Some of the expenses will include sales and marketing, lease costs, initial stock, and marketing and advertisements. Based on the financial projections, the breakeven will be achieved by the third year.
1.4 Confidentiality Statement
This information in this document is privileged, confidential, and should be used by the intended recipient only.
1.5 Improvement of Community
Top Chef Restaurant will enhance the lives of the members of the community and improve their standards of living. It will provide gainful employment to members of the community. Furthermore, it will assist community members to live better lives by providing healthier foods. In addition, the restaurant will also engage in corporate social responsibility activities, which will benefit the host community. Besides, it will provide business opportunities for local suppliers and farmers, thus enhancing their lives.
1.6 Skills and Welfare
Other than the above benefits to the community, Top Chef Restaurant will also develop management, culinary, and leadership skills to the members of the community since it will provide many growth opportunities for the employees. The skills they will acquire and the competitive remuneration will provide these employees with opportunities for personal growth.
Company and Industry Analysis
2.1 Business Form
The legal form of the business will be a corporation, which will be selected because it will offer limited liability protection for the shareholders.
2.2 Licenses and Permits
The licenses and permits required to open and operate the restaurant will include the business license, food service license, employee identification numbers, sign permit, and food handlers’ permits. The costs of acquiring these are included in the initial capital outlay.
2.3 Type of Business
Top Chef Restaurant will be a new independent business which will enable it to build its brand and reputation in the target area and among the target customers.
2.4 Activities of the Business
The restaurant will engage in the preparation and serving of food and beverages to the target consumers. The customers will have the option to enjoy their food at the premises, takeaway, or delivery to their homes. It will satisfy the needs of the customers by offering organic food products at affordable prices.
2.5 Choice of Products
The choice of products that the business will offer was reached based on the increasing demand for the healthier, organic foods, and the lack of such restaurants in the target area. The restaurant will be different from the others in that location since it will only offer organic foods and beverages.
The business will be operating in the food and beverage services industry, which has been experiencing growth globally. The organic foods subsector has been witnessing increasing growth because of changing consumer preferences.
The major competitors include multinational chain of restaurants such as KFC, Cinnabon, and Auntie Anne’s. Besides, small, local restaurants also present considerable competition considering the restaurant will be new.
2.8 New Entrants and Exiting Companies
The market does has many multiple entrants, who are mostly local small business owners. Such businesses have also been exiting the industry, partly because of lack of differentiation or offerings that align with global trends.
2.9 Reasons for Profitability
The business will be profitable since it will offer unique products that will appeal to the needs of the health conscious consumers. Besides, more consumers are becoming more careful regarding what they eat, which tends to present an opportunity for growth.
In line with the global trends, the restaurant will engage in e-business, which will be in the form of online ordering, after which the restaurant will make the delivery.
The management Team
The company will engage the services of a professional recruitment firm to hire individuals with specialized skills for a balanced team in terms technical, management, and interpersonal skills.
3.2 Leadership Style
The leadership style for the business will be bureaucratic, which will be advantageous with respect to the business.
3.3 Company Structure
The business will have a functional organizational structure, with various functional areas such as catering, accounting and finance, and food & beverage. Besides, the founder will instill a customer-centric organizational culture.
The key management positions will include the food and beverages manager, catering manager, restaurant manager, and finance manager.
3.5 Advantages of Location
Some of the advantages of the location include a lower wage rate, a sufficient flow of customers, favorable tax rates, flexible labor union terms, and lower utility costs.
The required facilities include the business premises, which will be used for the kitchen and the restaurant.