Introduction
Food is a necessity that cannot be shunned in human for the purpose of good health, vitality, and survival. Hence, a business that its main product is food will succeed under the right business strategy and marketing plan since eating food is inevitable. Sangria restaurant will be a food and drink restaurant that will deliver to its customers all kinds of assorted foods and drinks for the nourishment of consumers. Customer satisfaction will be the main target of the restaurant, as consumer loyalty will be sought. The main idea behind Sangria restaurant is to establish one of the greatest restaurants that will attract consumers. Furthermore, it is also the aim of this restaurant to be recognized in the United States with several branches in different cities. In this light, as it is known that no business organization springs up to become multinational without undergoing the small scale stages, Sangria Restaurant is intended to start-up as just a single food and drink restaurant, with the intention of spreading its wing to different cities.
Mission Statement
An organization’s mission statement is a statement that shows the assignment or task of a business organization. For Sangria Restaurant, the mission statement will be “To provide consumers with the best kinds of delicious foods and refreshing drinks at prices affordable by all.”
Vision Statement
On the other hand, an organization’s vision statement is one that shows what a company desires to become in the near future or within a time identified by the organization. Hence, the vision statement for Sangria Restaurant will be “To become one of the great and famous foods and drinks restaurant recognized in all major cities by 2017.”
Description of Concept
Sangria Restaurant is a proposed food and drink restaurant. This restaurant will be pioneered by the manager and is expected to employ staffs that will prepare and serve customers with delicious and assorted kinds of foods and drinks that will help in the body nourishment of the consumers. In the inception stages of Sangria Restaurant, it will consist of a manager and the waiters. Sangria Restaurant aims at growing into a large restaurant with locations all over Alabama.
Sangria Restaurant will capitalize on being completely aware of consumer needs and pricing strategies during the inception stages of the business organization. In the early stages of the lifespan of Sangria Restaurant, its aim will be to provide consumers with delicious and refreshing foods and drinks at prices that low-income workers can totally afford. This is capable of leading to the increased marketability of the foods and drinks that the restaurant aims to sell. Although all business aims at profit making, the concept of Sangria Restaurant will include making certain that customer satisfaction is achieved, even though the restaurant will experience minimal profits at the inception stages. This is because successful businesses first strive to gain consumer loyalty before anything else for the sole reason being that the survival of any business organization depends on the loyalty shown by consumers. It is expected that this will influence consumer perception towards patronizing Sangria.
Following the recent global recession/economic constraints and increase in price of commodities, this proposal will fully put into consideration consumer strictness regarding the choice of product purchase. This will be considered in the business planning and strategizing tactics of Sangria Restaurant so that optimal consumer satisfaction will be ensured, rather than any negative consumer perception.
Working Hours of Sangria Restaurant
Every business organization must have a time or duration of operation. In Sangria Restaurant, working hours start from 8am and ends at 10pm. Employees will have to run shifts to foster effective productivity. The first shift of employees will be required to work from 8am to 3pm, while the second shift will be required to work from 3pm to 10pm. No employee will be allowed to work more than 7 hours daily in Sangria Restaurant so that can work effectively during their shifts. The shifts will be rotated – those in the morning shift in a week, will be in the afternoon shift the following week.
Objectives of the Restaurant
Apart from the mission and vision of an organization, it is expected that every business organization must have objectives. Sangria Restaurant will have the following objectives well stated and made known to employees and the manager:
- To possess 75 percent of the market shares of the restaurant business of by November 2017
- To experience an increase in the Return on Investment by November 2014
Management Summary
The management of Sangria will be 20 professional people (1 manager, 1 accountant, and 15 marketers) with great knowledge of management. Apart from the management staff, Sangria will have other staffs like the waiters, the marketers, the messengers, and others.
Marketing Plan
Marketing Analysis
In the course of the research for establishing Sangria, the profitability of restaurants was researched. The research findings relied on consumer responses as regards restaurant business and the food needs of consumers. Most food and drink consumers, especially employees in their break time, stated that they needed the price of foods and drinks to be reduced and for convenient delivery of food to their offices if possible by food restaurants. The survey findings showed that almost 100 percent of food consumers, especially workers, wanted services to include delivery of the foods and drinks to their business site, as well as developing an efficient means they can use to communicate with the restaurant in a time they need supplies.
This will be visited by Sangria Restaurant since the restaurants present in the intended location are only small-scale restaurant owned by individuals. The intended location of Sangria Restaurant is a densely populated area, which makes the demand for food very high. From the survey, almost all the restaurants accepted that they usually sell all their food daily, and that they are normally out of supply on a daily basis due to the size of their business. In this light, it can be deduced that the demand for food in the intended location is very high, probably due to the inevitability of foods and drinks for human nourishment and refreshment in a day or the number of residents, workers, and others living in that area. Notwithstanding, the demand for food far outweighs the supply and Sangria Restaurant will take advantage of this excess demand to enter into the restaurant industry successfully.
Location
To make the proposed restaurant one with plenty of consumers, 4319 Montrose Boulevard, Houston, TX, 77006 was chosen as the perfect site for the location of Sangría. The restaurant can be accessed from various directions via Highway 59. Highway 59 is known to intersect with I-610 and I-10. The former circles the city, while the latter runs East-West across the city. Presently, construction is ongoing on Spur 527 on the northbound side, making it a little more difficult to access the restaurant from eastbound Highway 59.
Many food consumers around the neighborhood can access Sangria without making use of the freeway. Rather, local roads such as West Alabama, Richmond, Buffalo Speedway, Shepherd, and Montrose run North-South, and Westheimer runs East-West. It is expected that the consumers from the surrounding area knows how to avoid the Spurs 527 construction when coming to Sangria. Although it seems as if Sangria can be seen just beside Richmond and Montrose, it is pertinent to note that it is only visible from Richmond when moving eastbound.
Strengths
Sangria has the ability to apply the Results of the Market Research
Sangria restaurant in can operate and make strategies based on market research results. The ability of Sangria management to carry out a market research will direct strategizing towards reaching high demands for food. Marketing research is any organized attempt by a business organization to collect information that relates to customers or markets. Marketing research is an extremely vital facet of business strategizing and helps to put a company at an advantage over other companies that produce similar commodity. Market research results provide important information necessary for analysing and identifying the size of the market, the degree of market competition and market requirement. A market research was carried out before this business plan for Sangria was started. The market research was carried out in three phases to help identify the size of the market, market requirements and level of competition.
Market Size
Based on the results from questionnaire put together to verify the size of the market and the potential customers, it was discovered that the market size for consumers of food is enormous and almost uncountable. This is a realistic size of market because human survival depends on eating.
Market Needs
Despite the fact that the residents around Sangria are understood to be very trendy with foods and drinks, they always try to ensure that they satisfy their hunger and thirst for food and drinks. This ranges from achieving satisfaction to nourishment achievements. This definitely shows that the residents around Sangria would enjoy the food of Sangria.
Break-even hasn’t yet achieved this company is strictly dependent on investment capital
In light of the fact that Sangria is new, let alone achieving the proposed breakeven point, it fully depends on the available operating capital for the survival of the business, and this is a great disadvantage or weakness. David Levine and Michelle Boldrin describe the break-even point as that point where there is a switch inside in any dissimilarity between the positive, negative, or equivalent. However, so many economists have described it as a method of getting the exact point where the overall revenue is satisfactory for covering any costs incurred by the organization. Hence, break-even point can be said to be that point where the revenue generated by the organization and the expenses made are equal. In other words, at this point, the operational activities of a company or organization do not result in a profit or a loss.
Financial Plan
For this proposal, pro-forma financial statement will be provided because it allows managers to know the prospects of investing in certain businesses. This type of financial statement allows managers to evaluate new strategies or inventories or to know if an intended business is feasible. A Pro-Forma income statement for Sangria business will be given below. Note that the values for this Pro-forma financial statement are based on assumptions following the survey on different restaurants.
Financial Ratios
Sangria Inventory Opening Year Food Inventory
Projected Revenue for One Year
The revenue generated by Sangria Restaurant will be for services rendered. From the research, it is assumed that the restaurant makes a profit of $90044.42 in the first six months.The total revenue generated in the first 6 months of the business has been calculated to be $90044.42.
Using this figure to calculate the expected yearly revenue of Sangria Restaurant, we assume that for a period of 1 year, the Restaurant will generate $90044.42x 2 = $180,000.84
Gross and Net Profit in One Year
Hence profit generated in a one-year period will be
Revenue for period of one year – (Cost of maintenance for one year + Cost of setting)
The cost of maintenance for 1 year = 2 x cost for 6 months.
As calculated, the cost of maintenance for 6 months = $50,000
Hence, the cost for one year = 2 x 50,000 = $100,000
Revenue for 1 year – [(2 x Cost of maintenance) + (Cost of setting up)]
= $80,000
Hence, the net profit for a year will be $1,440,000, while the gross profit will be $760,000.
From this basic assumption, the estimate for a 5-year period can be calculated.