Green Apple Restaurant: Project Business Plan

Green apple

A short view of the company

Green Apple is a new organic food restaurant which is being established at 30, Al Khalidiyah shopping mall, 3rd floor of Abu Dhabi in UAE. The objective of building such form of organization is to make acknowledged the huge population of the country with the exclusive feature and flavor of natural foods as well the opportunity of being healthy with such habit of meals. For this, the restaurant will offer several healthy and delicious food items, like- chicken, mutton and beef burger, pizza, pastries, noodles, soup, hamburger, juice, and all other forms of Western, Indian, Asian, Dessert, and Subcontinental foods which will be prepared by complete natural and herbal ingredients that will be safe for health by assisting the internal protective organs from diseases and nutritive demand of the body. It will be established based on a partnership agreement and will need $800000 to run the operation for the forthcoming 3 years. The restaurant will use a rented area at the specified space of mentioned shopping mall for serving its customers with an adjusted cooking room. Decorated with high-quality furniture and other tools for cooking, the restaurant will run on the motto of “Taste for a healthy life”.

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Executive summary

The business plan of Green Apple restaurant is going to focus on the nook and corners of introducing a new organic food restaurant at the Al Khalidiyah mall location in Abu Dhabi, UAE. It is part of the vast hotel and restaurant industry of UAE which is particularly dominated by foreign giant food retailers as McDonald’s, KFC, Burger King which pose some of strengths, weaknesses, opportunities, and threats while the industry background will also be explained by a PEST analysis showing its political, economic, social and technological impact and forces in the national context. Venture background will explain the major factors of the restaurant including the size of 35 square meters, location, and offered products and facilities, and entrepreneurs’ background. The marketing plan will be effective to understand the total marketing budget of $120000, macro-environmental discussion, the composition of a target market, financial goals, strategy, competitive analysis by 5 forces model, distribution of total budget, the position of the restaurant by a BCG matrix at the questioning point and finally, brand positioning map. Then facilities plan will describe the physical placement of the venture and the computation of average customers a day. The production plan is an integral part of this shop as the best quality food can attract the most loyal customers. With a short briefing of preparing several delicious items, the operational plan will explain salary structure as well as employment procedure by explaining the general and special responsibilities of the HR department of the shop’s perspective. The organizational part will elaborate the restaurant as a partnership agreement by revealing the task of the major three departments. The risk assessment part is helpful for indication some major risky issues that Green Apple may face along with some remedy suggestions against it. The financial plan will verify the monetary feasibility of the venture by computing the projected income statement, balance sheet, and break-even portrait. The implementation timetable will explain the possible timing to start the journey of the venture by indicating the early part of the next year. In this way, this plan will elaborate on each of the mentioned segments.

Industry background

The world’s huge populations are turning to move their interest in organic foods day- by- day which are prepared by maintaining specific standards of production. That means such foods are grown without the utilization of any types of artificial inputs like- artificial methods, chemical ripening, modified genetic ingredients, etc., and are not polluted by industrial or humans with an association of safety from food additives. In the case of livestock, they are to be geared up with a fresh and healthy diet as well as without antibiotics and growth hormones.

For those distinct features of organic foods, the year 2008 has revealed the success of such food items sales for 1- 2% around the world for which this industry has been rapidly increasing in both developed and developing countries with a promising jump of $23 billion to $40 billion recorded for the year 2004 and 2006.

Additionally, organic foods contain higher nutritional values, health safeties for consumers of all ages as well as taste approved as better than any synthetic food. Like other parts of the world, UAE is also showing an increased interest in outsider restaurants that will serve for both taste and health issues of people. But unfortunately, the last three years have resulted in substantial growth of only 25% of this industry with an empty placement of any local organic food restaurant. The US fast-food restaurants are playing a dominant role in UAE as statistics show that there exists above 90% of the non-traditional market and among 3100 restaurants, 94% of fast-food restaurants are operating highly successful operations. Thus, this market is widely associated with international franchising boom, like- McDonald’s, Burger King, Pizza Hut, Kentucky Fried Chicken as well as local participants, like- Shawarmas and breasted chicken outlets as a representative of modern and historical fashion in food.

Generally, the environmental analysis can be explained by the following influential variables:

  • Demography and population: The year 2004 has shown the number of UAE population by 4.3 million with a growth rate of 1.6% per year while the selected zone Abu Dhabi is the top populated area by scoring the total population of 1.4 million. The entire Emirates has been composed of Dubai with 1.2 million, Sharjah 570000, Ajman 200000, Ras Al Khaimah 190000, and finally, Umm AL Quwain 55000 of the population has been counted by the 2005 statistics. Establishing own self as one of the most urbanized countries in the world having 88% people living in the urban area, UAE places 96% people as Muslims and 4% as other religious groups. Significantly, the country has a diversified population of different countries in the world including India of 1.5 million as the highest percentage of the expatriate. The population study of UAE can be observed by the following chart:
Percentage Nationality
13.48 Local
36.46 India
12.68 Arab from other Nationality
12.67 Pakistan
9.08 Bangladesh
4.31 Philippine
2.33 Other Asian Nationality
2.07 Europe & Australia
1.61 Sri Lanka
1.54 Iran
1.44 Nepal
1.12 Different African Nationality
0.64 North America
0.50 China
0.06 South America
100% Total

Among the seven emirates of UAE, Abu Dhabi owns the largest population which represents itself as one of the most prominent markets of organic food items.

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  • Economy: UAE has a basic export-oriented economy of oil that occupies an average per capita income of $44000 while the restaurant industry is acting as a major contributor to this rich economy since it shares 17.2% of the non-well GDP.
  • Technology: Especially, the world-class restaurants are running with an updated initialization of technological development in preparing items, order by online, digital signage, and offering fast services.
  • Legal concern: It includes future legislation affecting product, price, distribution, and promotion strategy. In the case of the food industry, the local legal and religious law certainly restricts eating pork or drinking alcohol.
  • Industry demand: The demand for restaurant food items, especially which are purely natural is now reaching a close saturation point. For this, a survey study has shown that the restaurant outlets is increasing growth of 180% in the country, for which many companies are now planning to open new branches to meet this extra demand. Similarly, in this age of several diseases like- obesity, blockings of the heart, diabetics and another sort of fatal causes, people are more demanding for healthy and natural food potentials.
  • Competition: Recently, UAE doesn’t have any restaurant for organic food only rather it has several world-class famous and domestic fast- food centers which can be regarded as strong competitive forces.

So, the entire condition of this industry can be observed by the following SWOT and PEST analysis:

SWOT analysis of food Industries

SWOT analysis of restaurant industry
Graph: SWOT analysis of restaurant industry

Strengths: The restaurant industry of UAE occupies several strong points:

  • The best facility of this industry is the huge population of UAE that is recommended as world’s one of the most affluent one with an approximate yearly growth rate of 5.7%.
  • The country is the center of worldwide tourists as well as business visitors amounted to 1.5 million that is very much helpful to raise the demand for tasty and healthy organic food restaurants.
  • Since several women are entering the external job life, the need and scope of homemade and dining out food are decreasing with the increased need for restaurant meals.
  • The mechanism of producing organic foods with the use of energy-saving technologies and packaging of recyclable and biodegradable elements seems to be very much effective to some customers who are generally health-conscious and ready to pay any amount to get that.
  • Having the significant “value” dining option.
  • Positioned as a “convenient meal” in the general customer’s mind.
  • It is also suitable for highly price-sensitive customers since each of the existing companies tries to offer numerous items at a rate that is somewhat below eating at home.

Weaknesses: Some weaknesses of this industry are below:

  • Major local and international restaurants in UAE take little or no concern on the rural areas which can make them deprived of earning a major portion of total revenue.
  • Sometimes restaurant meals are perceived as the catalysts of obesity, fatness, or gastric.

Opportunities: The restaurant food market is a subject of huge opportunities nowadays as:

  • The young generation is becoming the largest target customer group since they consume merely 20% of fast-food meals a day which can result in more or diversified firms like organic food in the future.
  • People of all ages ranging male, employed, and middle – age are now showing an increased interest in outsider ready-made food.
  • The increasing economic pressure of the economy tends to change people’s outlook on the negative impact of restaurants.
  • Strong brand perception of global restaurants offers status, momentum, performance, and affinity in the minds of customers which can be followed by domestic companies to capture the local market to become highly profitable like them.
  • The recessionary period can also serve as a major opportunity to launch new restaurants.
  • Organic food restaurants are prominent to gain the largest scope in this business since they can offer new food options which can promise healthy life as an agent of obtaining frequent customers who want tasty and nutritional food.
  • The industry is also experiencing growth by the offering of home delivery free of costs that can be afforded and favored by various consumers having different budget statuses.

Threats: A few threats have also been recognized in this regard as following:

  • The religious background of UAE restricts some items to be used on the menu which can limit the consumers of other religions and tourists of several countries of choosing such restaurants with an additional threat of diminishing the total volume of sales.
  • Exposition and images of the established foreign restaurants may act as a major threat for expanding any domestic fast- food and restaurant business.
  • Over emphasize on the continued development and the contradiction of not bearing the promise accurately may lose customer confidence and fall of its growth.
  • The clutter of a huge number of similar and synthetic food restaurants has already established a negative image in customer’s minds.

PEST analysis

  • Political factors: The political situation of the entire 7 emirates of UAE is stable enough to operate this sort of business whether it is national or outsider. Nowadays, local governments and banks are also very much keen to support domestically own businesses.
  • Economic factors: The hotel and restaurant industries are contributing about 17.2% of incomes of the non-well GDP of the country.
  • Socio-cultural factors: 96% of people of the country are Muslims who possess a positive attitude to the famous global brands like- McDonald, Burger King, Pizza Hut, etc. for which those organizations can earn a huge profit from this zone. Fueled by the new contribution of the women workforce along with traditional employees, students or several expatriate professionals, UAE’s major population is exposing their demand on prepared food featured with nutrition and safety. Since the religious background influences the consumption of food strongly, generally the companies maintain this social boundary in their diversification and services. Additionally, a dramatic concern for health purposes can be observed in people of various ages which are drawing an optimistic chance for outsider food clubs.
  • Technological factors: The industry is highly experiencing extended technological development in the placement of information by an easy-to-read graphics on packaging, online ordering, digital signage, modification in payment and re-order, etc. those are very much helpful for prompt and upbeat service along with dietetic factors for maintaining a good sale.

Venture background

Green Apple restaurant is an organic food eating place which is determined to orient a new food habit of customers that is fully different in the present context of the restaurant business in UAE since the country does not have this type of restaurant. Enlightened by using natural ingredients in all of its delicious formal and exceptional recopies, the company’s objective is to provide “Taste for a healthy life” to all of its customers. Green Apple will be located at 30, Al Khalidiyah Mall, 3rd floor, Abu Dhabi in UAE, and will serve several items including beverages, breakfast, fruits, desserts, and other sorts of fast- foods. Other information about the restaurant is following:

Target customers

Green Apple is targeting general employees, children, working women, mid-aged workers, expatriates, and most optimistically young generation who tend to go to schools, colleges, and universities. Customers who come to Al Khalidiyah Mall for shopping purposes are also involved in the list of target customers of the company. All sorts of a generation who have been targeted will have a general purpose of eating restaurant meals containing fewer calories and more fitness to lead a healthy life.

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Size and scope of the restaurant

The restaurant will initially start its operation with $800000 in cash and it will be operated in a large rented shop of 35 square meters on the 3rd floor of Al Khalidiyah Mall. Placing the food zone for serving and entertaining customers, the restaurant will also have a kitchen room inside the shop where the experienced and trained cooks will prepare various snacks and routine food items with fresh organic vegetables and meat. Being facilitated with all of the amenities of a commercial zone, like- adequate parking facility, the opportunity of expanding the branch at the same or top floor of the mall and sufficient sewerage, plumbing, and electricity facility, air conditioning, elevators, and lifts that the venture will use several competent and efficient workforce for maintenance.

Offered food items

Green Apple is planning to serve many delicious and nutritional food items at a reasonable rate that will enthusiast customers to come back for enjoying such flavor repetitively. Several food items that the company enlists in its menu are as below:

Casual fast- foods

It includes:

  • Chicken Nuggets
  • Southern Style Chicken Biscuit
  • Asian and Southern-style chicken sandwich
  • Big Mac
  • Snack Wrap
  • Beef and Mutton Hamburger
  • Fried Chicken, Chicken Soup
  • Buffalo Wings, Tandoori Chicken
  • Butter Chicken
  • French Fries
  • Chips
  • French- fries potatoes
  • Deep-fried potatoes
  • Double Cheeseburger
  • Noodles Pastry cake
  • Vegetable roll
  • Chicken and Beef bon
  • Bakery
  • Pizza and more.

Salad

It will deliver:

  • Green or Garden Salad
  • Entree Salad
  • Bean Salad
  • Chicken Salad
  • Chef Salad
  • Coleslaw
  • Congealed Salad
  • Crab Louie Salad
  • Chinese Chicken Salad
  • Antipasto salad
  • Fruit Salad
  • Fruit Salad
  • Eggplant Salad
  • Greek Salad
  • Ham Salad
  • Larb
  • Israeli Salad
  • Pasta and Potato Salad
  • Panzanella
  • Russian Salad
  • Somen Salad
  • Som Tam
  • Shopska Salad
  • Tabouli
  • Taco Salad
  • Tuna Salad
  • Watergate Salad
  • Waldorf salad and Special Arabic Salad.

Drinks

No alcoholism is the first value of Green Apple. Other than alcohol, it will serve many other drinks like- Coffee, Tea, drinkable Yogurt, low-fat Milk, Fruit Juice, Vegetable Juice, soft drinks like- Coca- Cola, Pepsi, Thumbs Up, Faluda, and other types of local beverages.

Breakfast

The typical morning destination will consider Premium Roast Coffee, sliced fruits, eggs, salads, and juice. For the local population, the special attraction will involve the most popular breakfast in the Arab zone like- pita bread that is dripped in fresh labneh which is one kind of Yogurt and oil, and za’atar which is a popular Middle- Eastern Spice Mix. Another item will be Mashriq composed of olives, eggs, cheese, and beans of fava.

The vegan diet

Green Apple is also concerned with vegetarians who want to avoid any types of flesh and eggs in their daily menu. For this, it will arrange the vegan diet which is on kind of vegetarianism omitting all sorts of animal goods like- dairy goods, meat, poultry, fish, eggs, and honey but only use vegetables like lettuce, rocket, spinach, cucumbers, peppers, onions, mushrooms, carrots, beans, celery, radishes, avocado, red onions and so on. Further, it will also arrange Lacto- vegan diet other than eggs, ovo- vegan diet excluding dairy but not eggs, and Lacto- ovo vegan diet involving both dairy items and eggs.

Others

Simultaneously, Green Apple will also serve Western, Indian, Asian, Dessert, and Subcontinental foods at the regular serving hour.

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Services

The Company will offer many other services rather than general restaurant service only. Such as:

  • Use of “nuts and bolts” methodology for speeding up sales and services.
  • Use of easy-to-read graphic structure on the packages to know the customers’ adequate information of the item.
  • Home delivery service.
  • Use of electronic order and delivery system.
  • Use of tired menu approach.
  • Additional sale of exclusive home-designed gift cards as an easy and convenient root of payment that can be given to friends and family on a specific occasion.
  • Reservation service of the food zone for a tiny birthday or anniversary parties’ entire agreement of serving customized chosen menu at reasonable fees.

Personnel and office equipment

Green Apple will need some cooking equipment like- electric heater, oven, blender machine, toaster, pressure cooker, hot pot, refrigerator, electric burner, and other items essential for cooking and garnishing foods as well as entertainment, drive-thru, menu boards, and POS equipment. At the same time materials like- chairs, tables, fans, computers, carpets, desks, vases, cookeries, and other materials for the interior and exterior design of the restaurant will be essential.

Suppliers and supply chain condition

Green Apple will import each of the raw materials which include fresh organic vegetables, chicken, mutton, eggs, spices, and other ingredients of preparing several dishes from some specific highly regulated firm houses of the United States and Japan which have obtained prestigious certification for producing such foods within their national boundary. Thus, it will be highly committed to buying from such vendors for not only accomplishing the required safety in food but also maintaining sustainable social responsibility.

Background of the entrepreneurs

Green Apple will be initiated by three entrepreneurs named Abu Helal, Hussein Ali, and Mir Hanif who have recently completed their graduation in Tourism and Hotel Management from ABC University of UK. Each of them is Arabic by birth and take the formulation of such type of business through the enthusiasm from their academic courses by analyzing the necessity of a purely modified organic food restaurant in UAE since it lacks a significance and dominance of domestic restaurant which can demonstrate a bigger opportunity for them of earning a better profit with an auxiliary view of serving the local community with a health consciousness issue.

Graphical viev of Green Apple

Marketing plan

The marketing of Green Apple will be carried upon by the marketing department of the restaurant. The delivered products will be typical fast- foods, salad, juice, beverage, breakfast, vegan diet, Western, Indian, Dessert, etc. types of foods which will be completely prepared by natural flavor without any artificial color, taste, or ingredients. The restaurant will provide products ranging from $2 to $120 and formal services ranging from $200 to $300. Green Apple’s main objective is to establish itself as a food house for serving an exclusive and extraordinary assortment of numerous dishes made with completely organic ingredients which will be entirely different in the environment context since there are no types of restaurants like in the UAE at present. Thus, the marketing department will have to prepare a marketing plan to serve, categorize and customize the required menus. Running on the initial capital of $800000, the venture can be expected to reach a break-even point at the end of the first year and thus will be able to run after profitability in the second and third years.

Market situation

The hotel and restaurant industry is causative by 17.2% in the non-commercial GDP of the country. The selling of organic items is expected to increase over the next few years. The primary customers are expected to be middle-income students, workers, employees, senior citizens, working women who want to keep themselves fit by eating harmless natural foods for both body fitness and regularity in maintaining health but do not invest a high volume of money for habituating themselves in external meals. It is also a better opportunity for the high-class executives and couple to have a nice lunch or dinner in an attractive and splendid environment with an extra motive of shopping at Al Khalidiyah mall.

Meals to be served

Green Apple has been planned to serve some delicious and nutritious food items involving general bakery foods, snacks, multi-category salad, dessert, drinks, and other domestic and internationally popular items excluding alcoholism as well as pork.

Competitive situation

There exist almost 3100 restaurants in UAE while 94% consists of fast- food shops only with a very strong dominance on the total market. Additionally, most of the restaurants of the country are the mega foreign market leader. So, in the macro sense, Green House is going to face intense competition from such franchising boom as McDonald’s, Burger King, Pizza Hut, and Kentucky Fried Chicken along with some domestic competition from Shawarmas and breasted chicken formed in USA followers. Having a worldwide recognition as the best food- server, many of those have so many exclusive competitive advantages like- serving the free home delivery reasonable price range matching to the income of all sorts of population.

Green Apple’s major competitors can be analyzed by using Porter’s 5 forces models as below:

5 forces model of competition
Graph: 5 forces model of competition

Threats of new entrants: UAE restaurant market is not exceptional in this case that it is unlucky as the newcomers can be somewhat threatening to incumbents. For this, the chances of the possibility of some inexperienced new entrants may deteriorate the market with lower quality of meals that will hamper the total profitability of the market in terms of customers loyalty as a great threat for both customers and companies. The entry of a new company will have two major functions, as:

  • Entry barriers surrounding economies of scale.
  • The expected level of retaliation from present firms.

Bargaining power of suppliers: Green Apple’s major organic raw materials suppliers will be some dedicated firm houses of Japan and the USA. If those firms can expose power over the venture, it will be troublous to recover the cost as well as the price which would certainly reduce profitability.

  1. Bargaining power of buyers: This includes the demand for better quality, quick services, and other supportive factors at a cheap rate.
  2. Threats of substitute products: Although there are no absolute substitute organic foods are available in UAE domestic market, indirect substitution may be attractive in some ways by delicious and colorful food items available at some recognized national and franchise food shops.
  3. Rivalry among competitors: Such competition may be seen among national vs. international and mega vs. small retailers.

Distribution situation

Professional food services will be provided by the single shop located at Al Khalidiyah mall primarily. But it will consider serving such services through other branches at various locations of the country based on public demand.

Macro-environment situation

A large number of women population has been started to take part in the workforce. Based on a recent survey, it can also be assumed that a lot of governmental and non-governmental educational institutions contain huge students who have to pass most of the time outside the home depending on container or canteen foods. At the same time, the huge number of business visitors and tourists are counted as about 1.5 million as the regular customers of such kinds of food shops. Above all, the extra awareness for maintaining health by taking nutritive elements in the regular diet has become the major concern of today’s all ages of the population. As the market approaches saturation, efforts must be taken to convince this huge population to have their appropriate demand and requirements of outsider meals.

BCG Matrix and Green Apple

The BCG matrix is a portfolio planning method for evaluating the company’s strategic business units in terms of its market growth rate and relative market share which can be shown as:

BCG matrix of Green Apple Restaurant
Graph: BCG matrix of Green Apple Restaurant
  • Stars are high-growth, high share businesses or products needed to have high investment.
  • Cash cows are low-growth, high-share businesses needed less investment to hold market shares.
  • Dogs are low- growth, low- share business which does not promise to be large sources of cash.
  • And finally, Green Apple is expected to be question marks position with being initially low- share business units in high growth markets for requiring a lot of cash to hold share, let alone increase it with a future possibility to turn it in the position of a star.

Opportunities/ threats analysis for Green Apple

Opportunities:

  • Since 1990, the global organic industry has been expanding by 20% per year.
  • The organic food market’s growth can be estimated by yearly 10% – 50% in the forthcoming year.
  • The company will be able to make differentiation with the core value of organism since its ingredients will serve higher nutritional quality, customer safety, and other forms of distinction factors than competitors.

Threats:

  • Pressure from mega food franchisers.
  • Lack of knowledge about the benefits of organic foods.
  • Expensive factors are perceived by the location of the mall.
  • Size of the shop in terms of other strong competitive forces.
  • Factors of macro-economic pressure.

Strengths/ weaknesses analysis for Green Apple

Strengths:

  • Distinctive feature than any other competitors by providing extraordinary taste as organic vegetables and fruits pose more than 40% of antioxidants than similar ingredients with additional nutrition of 60% for such milk.
  • Attractive for the health-concerned customers to lose weight.
  • Service speed, order exactness, the appearance of the menu board, and the clarity of the speaker will be the strongest points for the restaurant.

Weaknesses:

  • Lack of human resources.
  • Lack of budget for marketing activities only about 15% while some major competitors spend more than this.
  • Huge rental cost and limited space for serving.
  • Import of natural ingredients from foreign suppliers would incur a high cost for preparing each of the serving dishes.

Issues analysis

Green Apple must consider the following basic issues:

  • Will Green Apple compete effectively?
  • Should it divest the product line?
  • Will it successfully stay in the restaurant business?
  • If it stays in this business, will it continue to serve current meals, distribution outlets, and price and promotion policies?
  • Should Green Apple increase advertising and promotion expenditures to match with other competitors in the market?
  • Should Green Apple introduce a personal R & D section to develop newer food items with more taste or standard suggestions as an attractive appeal for the customers?
  • Should it feel necessary to extend its present size of the shop by shifting anywhere rather than Al Khalidiyah mall?

Financial objectives

Several financial objectives of the firm are as follows:

  • Earn an annual rate of return on investment after the 1st year of 5% after taxes.
  • Reaching at the break-even at 1st year while total cost and total revenue will be $523974.
  • Achieving net profit of $40000 in the 2nd year of 2011.
  • Achieving net income of at least $50000 during the 3rd year of operation.
  • Produce positive cash flows from the starting year of the business.

Marketing objectives

Several marketing goals and objectives have been fixed as:

  • Achieve total revenue of $523974 in 2010, $535534 in 2011, and $537534 in 2012.
  • Expand customer awareness level of the restaurant from 15% to 30% during the planning period.
  • Expand distribution in the future.
  • Aim for an average price of $1 to $120 for several food dishes and $200 to $300 for reservation parties.

Marketing strategy

The numbers of required marketing strategies are:

  • Target market: Green Apple is targeting the school, college, and university going youth who also tend to shop in the mall frequently as well as working women, government or private employees, and the old generation who suffer from some fatal diseases like- diabetics, heart pain, fatting, etc. use to come the shopping center and like to take fresh food from outsider restaurants instead of reproduction taste and flavor.
  • Positioning: “Promise for the safest health”.
  • Product line: Several introduced product lines will be organic snacks, non-intoxicating beverages, salad, different fruits, Indian, Asian and Western desserts, etc.
  • Price: For the exclusively safe nature of each of its prepared menus, the restaurant will incur a reasonable price for most of the items while some items’ price would be higher than the market for quality covering the cost.
  • Distribution outlets: Green Apple has been planned to provide a solo service initially from the single outlet.
  • Customer service: Consistent service of offering delicious meals cooked by expert cooks, follow-up registration cards, and telephone calls from different customers for getting feedback, regular contact with loyal customers by newsletters, telephone calls, e-mail or fax, continuous improvement of better quality foods with prompt services.
  • Service: Providing “nuts and bold methodology”, home delivery services, online booking, tired- menu methodology, and reservation services for small parties containing a maximum of 20 guests.
  • Sales promotion: Several promotional efforts will include discounts, gifts on special ceremonies, premium, free give ways, and occasional consulting service on a healthy diet, routine food habits, and cooking and health tips by related external expertise.
  • Advertising: Develop newer advertisement campaigns that support positioning strategy, emphasize the extraordinary and high quality of meals, and discounting proposals. Several medial will be used for advertising of the venture including radio, TV, newsletters, leaflets, newspapers, billboards, and roadside banners. Billboards will be placed on the central point of Abu Dhabi to gain the best attraction of moving people.
  • Marketing research: Increase a fixed amount from the total budget to improve the knowledge of the consumer decision process and to monitor competitive moves.

Marketing costs

The total budget for marketing activities has been fixed at $120000 that will be spent as follows:

Advertisement $75000
Sales promotion $20000
Marketing research $15000
Billboard $10000

Brand positioning map

Through positioning Green Apple will able to be positioned in the consumer’s mind on important attributes, like- quality, taste, health, flavor, environment, convenience, etc. relative to the competitor’s efforts which means, it will introduce implanting the brand’s unique benefits and differentiations in the target customer’s minds. In this way, it will position itself as a “Promise for the safest health” to remind people that it offers the general products in a preemptive way for a high concern of consumers mental and physical health different than others in the market. Thus Green Apple can go for a perceptual positioning map which can show the possibility of customer’s perceptions of this center versus others as following:

Brand positioning map of Green Apple
Graph: Brand positioning map of Green Apple

Action program

Green Apple will carry out its marketing tasks as following:

  • In the 1st 3 months of 2010, Green Apple will advertise in the newspaper as the exploration of a new food shop for proving completely organic flavored foods with a familiar layout at affordable prices and discount offers for the early – visitors.
  • From the next month to the 6th, it will advertise on a billboard and serve newsletters for $5000.
  • 2011 and 2012 will incur $23000 and $18000 for this purpose jointly.
  • Promotional programs will be carried in 2010 at $10000, 2011 at $5000, and $5000 simultaneously.
  • Consumer research during the 1st 6 months of 2010 and the last 6 months of 2011 and 2012 has been estimated by $7000, $5000, and $3000 respectively.

Facilities plan

The location of Green Apple will be 30, Al Khalidiyah Shopping Mall, 3rd floor of Abu Dhabi, UAE which is expected to be fruitful as it provides access to a larger base of the target as well as potential customers who will pass their schools, colleges, universities, offices, and factories going to and from job to the area as well as garaging purpose. Since the mall is new in Abu Dhabi and placed in a central zone which is surrounded by some important institutions like- cultural foundation, Al Markaziyah west, Etisalat, Sheraton Khalidiyah, Al Manhal, Ministry of Education, Madinat Zayed, Al Dhafra, Al Baten, Al Rowdah, Shah Khalifah Medical City and most significantly a taxi stand in front of it, the restaurant will get the largest facility to always keep in touch with several people ranging from top to middle-income group. Based on these statistics, it can be estimated that daily traffic will be between 4000 and 5000 individuals passing through the venue at each hour which projects 8000 to 10000 people a day among whom 2.6% is assumed to become our projected customers. This shop will be rented from the mall owner.

Production and operations plan

Cooking delicious a dietetic food item as been promised and serve it in a customized way is the most important segment of Green Apple’s business plan. However, the restaurant’s production process of the required menu can be shown below:

  • Chicken Nuggets: Prepared by popping, dunking, and allocating white flesh of fresh and non-hybrid chicken which will be juicy from inside and crispy by outsider shell.
  • Southern styled chicken biscuit: Made by light bread with white chicken by homemade biscuit flavor.
  • Southern styled chicken sandwich: Basic ingredients will involve light bread, meat, pickles, butter, and bun.
  • Hamburger: It is fundamentally a special form of sandwich made by meat patty as beef and mutton put in two pieces of the bun, bread or toast served with pure tomato sauce, mayonnaise, relish, lettuce, onion, cheese, etc.
  • Plain sandwich: It will be simply prepared by two bread slices having multi-layers caked with butter, mustard oil without any synthetic flavor.
  • French fries: This popular dish will be cooked with chips and fries with long and thick stripes of potatoes having crispy in taste.
  • Breakfast: Typical breakfast items will include roast coffee, boiled egg, organic fruits, juice, and milk. It will consider the traditional and popular Arabic breakfast on the menu like- the bread of pita which will be dripped in rich labneh called a special type of yogurt as well as za’ atar. Other item includes olive cheese, beans of fava for the preparation of Mashriq.
  • Wrap: It is a modern form of dish especially loved by the young generation involved fillings of sandwiches inside the pita, tortilla, and squashy bread. It will not be the deli or submarine sign of roll. Available wraps will have beef, chicken, shrimp, chopped lettuce, pico de gallo, sauteed mushrooms, onion (grilled), cheddar, and pure honey.
  • Salad: Salad will be placed at the heart and soul item for which it emphasizes producing several different kinds of local and international flavored salad. Green or garden salad will be one of them which will be prepared by green vegetables as a base of vegetable leaf-like- lettuce, rocket, spinach while leaves are chopped into bite-sized pieces as tossed within a planned decoration. Many other vegetables and food materials cab beaded into this sort of salad according to customer preference like- mushrooms, peppers, cucumbers, spring and red onions, tomatoes, olives, boiled egg, carrot, avocado, radish, celery, pasta, palm heart, red peppers (roasted), cooked potatoes, green and black beans, chicken and bacon meats, cheeses, tuna or shrimp fishes, etc.

Other popular salad will be entree salad made of grilled and fried chicken fingers, several forms of halal seafood, steak of fish considering mahi-mahi, tuna, shrimp, grilled sirloin, etc. Other forms of salad will include chef, Cobb, Michigan, etc. Additionally, for garnishing these different types of salad many supplementary ingredients like- real bacon bits, the root of beats, stripped carrots, tattered carrots, onions, radishes, parsley, cherry, and tomatoes.

  • The vegan diet: Green Apple will be very much promising for the customers who practice vegetarianism since it will prepare meals subtracting fish, meat, and poultry livestock hence the food shop will also supply dishes including dairy goods and eggs as well as meals for Lacto- vegetarians, ovo- vegetarians and both Lacto- ovo vegetarians.
  • Beverages: Green Apple’s best attraction will be laid on serving different tastes in its exclusively prepared drinks and beverages ranging from western taste to middle- eastern charm for youths and tourists especially. General association with soft drinks, it will introduce local and natural flavored apple, mango, pineapple, strawberry, watermelon, papaw, nuts, berry, sugar- cane juices since those organic items will be sweeter than the typically marketed beverages.
  • Other menus: Other dishes will include desert, Asian, Western, English, etc. pattered foods safe and wholesome for health.

Operating module of the restaurant

The entire operations will be handled by Chief Management Team (CMT) consisted of three initiators who will tend to operate through four departments of production, marketing or sales, and administration and finance. Other operations related details can be viewed as following:

  • Green Apple will offer services each day from 9 am to 8 pm at each day except for the weekly holiday of the market. There will be two six seated tables and three-four seated tables where 24 customers will be entertained at a time. Refrigerator, cooking side, and cash counter will be placed inside of the shop. There will be one television set inside of the restaurant to entertain customers.
  • The restaurant will employ 3 waiters, 2 head cooks, 1 guard, 1 cleaner, and 1 driver. Those employees salary structure can be placed as below:
Cook $20000 – $25000
Waiter $8000 – $12000
Guard $4000 – $6000
Cleaner $3000 – $4000
Driver $4000 – $5000

Besides those, the cash counter will be handled by each of the entrepreneurs’ periodic time of the day. Additionally, temporary and part-time cooks or waiters would also be hired on a conditional basis. Reservation services for candlelight dinner, birthday parties, or some other tiny events will be provided by conducting with the manager at least 2 days before the celebration with an advance payment.

HR planning for Green Apple

Restaurants like Green Apple that were offering different sorts of delicious natural flavored meals will be the prime motive must emphasize mostly on human resource of the eatery. For this, hiring, managing, and directing such personnel in terms of cooks and waiters can be regarded as a major concern. So, the HR section will highly be responsible for hiring, evaluating, and mentoring them initially but initially, it will not activate employee benefits like health insurance and retirement pension plan.

Therefore, all the cooks must be selected based on expertise and experience in specific courses of cooking of at least 2 years. Waiters will be selected also in terms of the experience of having at least 1 year with a certificate of training. A driver for the pick-up van will be necessary with experience of 6 months and a driving license. In each of the cases, the fact of experience will be considered in terms of academic certificate and efficiency. The employment procedure for each of the stuff can be viewed as:

  • To be responsible for the process of hiring, the HR department will review the budget for determining the fund’s availability. The next step is to post the job, collect applications and resumes and verbally interview the interested candidates. Through this process, applicants who will be able to pass the interview will be assigned to a short practical test, like-for cooks, preparation of the particular dish. For drivers, the driving license will be verified.
  • Before hiring, it is necessary to identify both intent and salary of employment.
  • The status of employment of new staff will also be practically oriented by focusing a true checking of background by the restaurant.
  • Finally, the CMT will approve for ensuring the position of employment.

Organizational plan

Major factors regarding the organizational plan are presented below:

Forms of ownership

Green Apple will be based on a partnership agreement by Helal, Ali, and Hanif. General conditions are: 60% capital will equally be supplied by each of the entrepreneurs’ as:

  • Partner 1: $160000
  • Partner 2: $160000
  • Partner 3: $160000

Each will actively participate in the Chief Management Team and operations of the venture.

  • The cash counter will be handled by each one of them at different parts of the working hour.
  • Profits and losses will be equally shared.
  • Each will bear a similar portion of the liability.

Organizational chart

Organizational chart of Green Apple Restaurant
Graph: Organizational chart of Green Apple Restaurant

Assortment of responsibilities

  • The CMT will lie at the central power and control of the venture which will be composed of three originators.
  • Three major departments of production, marketing, and sales will be headed by them also.
  • The production department will be responsible for controlling the quality of ordered food items by needed corroboration as well as assembling various organic menus.
  • The marketing or sales department will carry out the selling and other marketing efforts including promotion, advertising, market research, and other fundamental value creation activities.
  • Administration and finance will serve dual-purpose efforts by maintaining appropriate accounting records of the restaurant as well as dealing with all of its financial transactions. Purchasing of raw materials and receiving of shipments will be other important potentials of this department while HR planning and development will also become a part of this. As mentioned, the HR section of this part of management will bear out all the activities regarding employee salary, benefits, motivation, and other related issues.

Assessment of risks

Green Apple would face several risky factors in the future as below:

  • Limited budget for marketing programs could make constraints to have people a clear and distinct idea about the restaurant.
  • Several mega competitors are running on diversified ways to achieve public attention while Green Apple is utilizing only a small portion of it.
  • Lack of standard space will be a significant constraint to entertain a large number of customers as well as letting big-sized parties.
  • Higher transportation and import costs may reduce the profitability of the venture.

Some measures can be taken to prevent such risks. As below:

  • Shortage in the capital would be overcome through the steps of converting ownership from partnership to Limited Liability Company (LLC).
  • The future initiative can be taken to expand the size and capacity of the restaurant to entertain more customers.
  • Additional searches can be made to collect less expensive qualified organic dairy and vegetables.

Financial plan

The plan starts with the total budgeting of the venture of $800000 which will be invested by three entrepreneurs by 60% and 40% will be supplied by IBL Bank ltd at a 2% interest rate within 5 years.

Other features

Projected capital budgeting

Raw materials $50000
Equipment $40000
Furniture $10000
Interior and exterior decoration $20000
Delivery van $50000
Marketing costs $120000
Cookeries $10000
Bank reserve $245000
Cash in hand $300000
Total = $800000

Pro- forma income statement

Items 2010 2011 2012
Revenue: $523974 $535534 $537534
Sales $300000 $318784 $350000
Services $187224 $180000 $150784
Interest $36750 $36750 $36750
Costs: $523974 $495534 $487534
Salary $47000 $48000 $48000
Advertisement $40000 $20000 $15000
Sales promotion $10000 $5000 $5000
Marketing research $7000 $5000 $3000
Billboard $4000 $3000 $3000
Utilities $3000 $3000 $3000
Depreciation $4440 $4000 $3000
Interest $6400 $6400 $6400
Rent $400134 $400134 $400134
Others $2000 $6400 $1000
Net profit 0 (BEP) $40000 $50000

Pro- forma balance sheet

For the year 2010:

Assets $ Liabilities & owners equity $
Equipment 40000 Bank loan 320000
Furniture 10000 Owner’s capital 480000
Decoration 20000 Interest 6400
Delivery van 50000
Cookeries 10000
Less: Depreciation
(4440) =
125560
Bank account 245000
Cash 300000
Accounts receivable 99090
Interest 36750
Total = 806400 Total = 806400

For the year 2011:

Assets $ Liabilities & owners equity $
Equipment 40000 Bank loan 320000
Furniture 10000 Owner’s capital 480000
Decoration 20000 Interest 6400
Delivery van 50000 Net Income 40000
Cookeries 10000
Less: Depreciation
(8440)
121560
Bank account 245000
Cash 350000
Accounts receivable 93090
Interest 36750
Total = 846400 Total = 846400

For the year 2012:

Assets $ Liabilities & owners equity $
Equipment 40000 Bank loan 320000
Furniture 10000 Owner’s capital 480000
Decoration 20000 Interest 6400
Delivery van 50000 Net Income 50000
Cookeries 10000
Less: Depreciation
(11440)
118560
Bank account 245000
Cash 360000
Accounts receivable 96090
Interest 36750
Total = 856400 Total = 856400

Break-even analysis

By analyzing the proforma income statement for the projected year, it can be idealized that at the end of the 1st year of operation, the restaurant will reach a break-even point where projected revenue will be $523974 and costs will be also $253974 as below-

Break-even analysis of Green Apple
Graph: Break-even analysis of Green Apple

Implementation timetable

  • The production manager will receive a progress report through voice and e-mail about everyday problems and demands that can be best communicated with that.
  • It will go to start its operation on January 1, 2010, while other placement will be completed upon December 31, 2009.

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Appendix

  • Local trade license.
  • Photocopy of a partnership agreement.
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