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Super Greens Organic Food Restaurant’s Business Plan

Abstract

‘Super Greens’ restaurant is a new medium-sized restaurant to be located in a busy locality of Westminster in the neighbourhood of some aristocratic areas like Upper Brook St1.Our restaurant is supposed to provide organic food to consumers. Being dedicated to sustainable development, the restaurant purely focuses on organic foods. In addition, local food procurement is favoured by the restaurant over supplies from foreign nations.

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The market and financial analysis indicate that with a start-up expenditure of £8,674,917, which might generate sales of £2,300,000 by year two, £3,235,000 by year three, and £4,149,000 by year four. Profitability will be achieved from the operation of year three (see Tables 1 and 2).

Taking over of competing firms, impressive relationships with suppliers and cutting costs are expected to be our main opportunities of the venture2. We hope to maintain these by proper planning and rendering of services timely.

The trends and potential growth of the restaurant is really a matter of sanguine3. We have observed that the sales growth will be 20-25% in the coming years and also some increase in the contribution of GDP from restaurant business which might facilitate the achievement of our objectives4.

The marketing strategy is quite simple. We have a huge advertising budget for the initial year which will be included in the start-up expenses of the venture. This will provide funding for the billboard in the main circle of the city. Again, we would incur some other advertising expenses for banners and poly signs every year5. These activities might pace up our sales and other campaigns.

Our production plan would be in two steps. The first will be the production of raw materials, and another will deal with the production of foodstuff. Our production of raw materials will be in our own firms situated in Cheshunt. This production plant will be strictly managed by our production personnel for the maintenance of organic nature of the restaurant.

Business Overview

Purpose of Business Plan

The business acts as a powerful reference tool upon which an entrepreneur lists a proposed business outlook. This plan outlines the overview of the business, its projected growth and areas of concentration. Additionally, it informs the investors and other stakeholders on the viability and operations of the business.

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Company Description

This is a partnership business ventures. As it will be established in an aristocratic area, the name should be worthy of attracting the attention of the customers. So, the entrepreneurs decided to name it ‘Super Greens ‘.

‘Super Greens’ will range in size of 3000 square feet and will seat 100 guests at a time. In order to attract the target customers, this restaurant will be located in Westminster area of London City6. The restaurant will be equipped with a state-of-the-art sound system that will allow our clients to choose their favourite songs free of charge.

Construction site selection criteria are based on the under-mentioned factors:

  • Community size minimum of 50000 people within one mile7.
  • Enhanced visibility to the prospective clients8.
  • Availability of space for the development of an easily accessible parking lot9.
  • Access of high officials during the working days.
  • Reduced competition presence.

These are in line with our goal of provision of high-quality services to our clients at affordable prices. The consumers’ satisfaction with the organic menu and service would be the best form of marketing10.

Restaurant business is a service-oriented business11. The main objective is to provide the consumers with an atmosphere of eating with pleasure, relaxation and satisfaction12. So, service rendering is the main nature of the business. Still, there is a portion of manufacturing involved in this business that acts as a backward linkage for the supply of raw materials in order to prepare the organic foodstuff. These are described in detail in the production plan of the restaurant13.

The basic features that will constitute the business will include:

Enlightened Surroundings

The surroundings of the restaurant will be very enlightened so that the consumers can feel that our organic foodstuff would also make them luminous. This has been intended to remove the belief that unhygienic restaurants are lightened dimly.

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High-Quality Foods

The mainly served dishes at Super Greens include fresh meat, vegetables, crisps, salads, side dishes and desserts.

Opening and Closing Periods

The restaurant will remain open from 11.00 a.m. to 10.00 p.m. on the five usual weekdays. With a view to tackling the rush on the weekend days, it will remain open from 11.00 a.m. to 11.00 p.m. so that the visitors can enjoy their meal in a serene atmosphere.

Dinner Buffet

As on the weekend days, there would be more hurry than that in other working days, a special dinner buffet would be offered on Saturday and Sunday to keep the consumers in touch with the restaurant more frequently.

Affable Employees

Workforce is vitally important for the success of any business14.In ‘Super Greens’ restaurant, employees would be sufficiently trained before the inception of the operation of the restaurant. So, the front-desk personnel would amiably welcome the visitors, and the waiters would serve the cuisine cordially upon their preferences15.

Objectives

‘Super Greens’ is an organic restaurant situated in the upper-class area of London city. The main objectives of our business are:

  • To provide quality organic foodstuff to the locality16.
  • To modify the menu and other services with the change in consumer taste, market demand and competitors’ strategy17.
  • To render an enlightening environment to enjoy food items.
  • To extend the business in the different locality if the acceptability of our cuisines meets our prior expectation18.
  • To maintain the costs and operation under tight managerial expertise so that the mission of our venture can be satisfied.
  • To increase the average sales from year to year by materializing the above-mentioned objectives.

Company’s Mission

‘Super Greens’ will strive to be the premier organic food restaurant in the city. Our clients will experience a unique change over by visiting our restaurant19. Not only in terms of meals but also the soothing natural atmosphere. Our main focus will be the provision of foods of high quality and increased nutritional value. The food items will be organic and freshly produced by our own firm. Most of our food will be freshly-prepared as our clients view. We will feature items from different cuisines and different price ranges. Satisfaction of clients will be of necessity to us. Our motto will always be quality service to all our clients.

We would like to build a strong client base out of services. To achieve all this, we understand that employee welfare must also be at the forefront20. Employees will be treated with the utmost respect as without them, the business cannot operate. They must therefore feel as part of our success and enjoy the fruits of the success we achieve. Happy employees will be expected to translate into happy and satisfied clients. A strong menu variance, natural and cool atmosphere, ambience and friendly staff are key to our business growth and endearment to clients.

Start-Up Requirements

CAPITAL AND START-UP REQUIREMENTS
Capital Items Cost
Kitchen and Interior £220,000
Furniture £180,000
Rent Advance £300,000
Sales Promotion £120,000
Initial cash £180,000
Total £1,000,000

Products and Services

The Menu

The menu is going to be very simple, yet exotic to attract our target customers. As we are opening an organic food restaurant, the menu would be set keeping in mind that the guests will expect the food to be fresh and hygienic.

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The menu will include different cuisines from different cultures. It would include all the cuisines that are generally served in the mainstream restaurants in London and also some other different kinds of dishes21.

The dishes served would be for three persons, and we will also have the option of the set menu. The set menu can be served from different cuisines. The cuisines served would be Thai, Chinese, Indian, Continental and also some special dishes from European cuisines as our target customers though we will also include guests from foreign countries22.

Organic Ingredients

In common usage, organic foods refer to natural food products mainly originated from farms23. Such foods bear no synthetic inputs and are purely from natural farming methods, or gathered/hunted in the wild24.

The organic food served in our restaurant will be produced in our firm (mostly), and the other ingredients will be collected from the local area market. We will produce all the vegetables that we will serve and also the meat and fish. All the seafoods, shrimps and ingredients will be collected from the market.

Ethnic Ingredients

Our chef will have a responsibility of menu design from a variety of cultural backgrounds. We intend to build a strong menu based on ingredients from various cultures.

Interior design

We will do the interior decoration, keeping in mind that the overall view of the restaurant should reflect the objective of the restaurant that is fresh and hygienic25.

The entrance of the restaurant will be soothing yet attractive because the first sight matters a lot. The next emphasis will be on the usage of light in the total environment. All the furniture used in the restaurant will be specially made for the comfort of the guests. The walls of the restaurant will be decorated with attractive paintings, and there would be the use of green plants in a decorative manner.

The internal planning of the building, that means the architectural design, will be done by an Architect from a well-known firm and also the interior decoration will be done by the architect and one of our managers26. All design and construction costs are illustrated in table 1.

Sales records

Though no sales literature exists as of now, we intend to publish them as soon as the restaurant begins operation. This is a relatively inexpensive venture as it will be done in-house with the help of desktop computers. Some of the pieces intended for production include:

  1. Table Toppers- will explain the concept and differences between lunch/dinner, announcing job opportunities, and other activities will be announced.
  2. Brochure: will be used to explain our event handling capability and approaches, e.g., tea parties, large parties, and banquets, among others27.
  3. Direct: Mail Piece: these are used in illustration of the business concept, pricing of products, and have internal restaurant photographs.

Technology

We will invest in 3 computers (desktop) and high-speed internet for fast and efficient communication. This will allow ease of manipulation of financial information due to the linkage to the cash register. Further, we will invest in hotel management software that will facilitate management operations within the restaurant. Our orders will mainly be placed online. Recordkeeping and management will be done via management software.

Marketing

Competition analysis

Westminster, and London in general, have a large number of hotels28. However, our main competitors will include Ivy, Saint James’s Park, and Le Gavroche, among others29.Though some of these competitors offer services comparable to ours, most lack the unique and reclusive environment that we intend to offer. The services provided by these restaurants are quite satisfactory. Additionally, the unique approach to service we intend to adopt will attract clients to us.

Marketing Research

Target Market

The production of organic food is costlier than producing it in an inorganic way30. That’s why; the food served in our restaurant will be a little costlier than any other restaurant. Because of this reason our target customers will be persons willing to pay more for quality.

Conscious person

Persons, who are conscious about their health and also what food they are taking, will be our target customers because our restaurant will serve foods which will be mainly produced in our firm31. Other food items and spices will be collected from such sources that the food served before the guests will be fully organic.

Families

Nowadays in our country, the awareness for healthy food and healthy environment of restaurants have been increased32. That’s why; the families want to go to the restaurant where the food will be hygienic. So, they will be our target customers we believe that our restaurant will be able to cater for their needs properly.

Officials

That is the last customer pool who in offices and they need to take their food outside. It is not that healthy for them. So, if we can serve food which can fulfil their needs and even match their price range and satisfaction level, then they will come to our restaurant.

Foreign Visitors

A large portion of our target customers will be foreign visitors. The foreigners are generally more health-conscious, and they prefer taking organic food. But in our country, they don’t get restaurants or even markets where they can get organic food or food items. So, if they get a restaurant in our country serving organic food, they will definitely come as our guests.

Operational Plan

Client growth forecast

As our target customers will be offered with variety and health-conscious services through our menu, we can expect that there will be growth in the demand for the cuisines. The following table shows the growth rate of customers in 2008 and 2009, respectively. Although we hope that the officials, couples and other visitors might not grow in 2009, families and foreigners will grow to a great extent. These projections are based on a Barclays report on London hotels33.

Growth rate
2011 2012 2013
Weekday
Families 20.00% 16.67%
Foreigners 20.00% 11.11%
Officials 20.00% 0.00%
Couples 0.00% 0.00%
Other visitors 20.00% 0.00%
Weekend day
Families 11.11% 10.00%
Foreigners 12.00% 7.14%
Officials 33.33% 0.00%
Couples 0.00% 0.00%
Other visitors 10.71% 0.00%

Table 2: Projected Growth rate. (Kuhn, 2010).

Market segmentation

Our market has been segmented according to our specialized services. Our menu will attract conscious citizens at large.

Our targeted marketed segments are based on age, gender, income classification, and occupation34. Age will involve seniors, couples with kids, health-conscious aged population. Gender will cover both females though much emphasis will be on fat females who are on vegetarian meals. With regard to income, our focus will mainly be on the middle class and high-income group of the population. Occupational segment will cover white-collar workers, young professionals and families.

Pricing strategy

In pricing the products of our restaurant we are going to use Premium Pricing Strategy35. This strategy is used to produce a high-quality product and charge the highest price36.

As the production procedure of organic food is costly, the higher price charged in the restaurant will be reasonable, and the higher value paid by the consumers will get back to them as we are going to serve them with quality foods that are promised by us37.

(In our survey, we have found that out of 76 respondents, 70 of them are in favour of organic food restaurants, and they are also willing to pay higher for the quality cuisine.

Advertising and Promotional Plan

Our advertising procedures will include the following:

  1. Objective setting.
  2. Preparation of budget for advertising initiative38.
  3. Strategy formulation39.
  4. Evaluation of advertising strategy employed.

Setting advertising objectives

It all begins with setting of an objective. The first step is to set the advertising objective. An advertising objective is used to relay the specific tasks, audience, and time to be accomplished40.

Our advertising objective will be, firstly, to inform the consumers, and after a certain period of time, it will be reminding. Now the rationales behind the objectives are:

  • As we are introducing a new line of food in the market, our advertising will be informative41. The primary objective is to build public demand.
  • We will also do persuasive advertising by saying that we are serving the best quality food42.
  • Reminder advertising to mature products within consumer’s daily life.43. As we are going to run a restaurant, it will be very important for us to remind the consumers that we are there to serve them quality food which will value their money.

Setting the advertising budget

We will have a large marketing budget (£5000) considering that we are new market entrants. The large budget is due to the need to build our own market from scratch in addition to getting some clients from competitors44.

Developing advertising strategy

Two major elements will be important in the development of an advertisement budget45:

  • Creating an advertising message.
  • Selecting advertising media46.

For the advertising of the restaurant, we are going to use billboards, banners and poly signs as the media. We will hire a billboard at Westminster circle47.This billboard will hold the main reason for opening the restaurant; that is, the organic food will value the money of the guests as well as give them a good appetite. This is also the advertising message.

The banners will be used on all the main roads of Westminster, Broadway, Upper Brook St, and West Street. We will use the banners, especially in front of all the embassies, high commissions, multinational corporations, NGOs, and other main office areas.

The poly sign will be used in front of our restaurant.

Advertisement campaign evaluation

This will involve constant evaluation of the effects that our advertisement have on consumers48. Sales effects are also affected by many other factors like product features, price, satisfaction, etc. But the communication effects solely depend on the advertising49. After opening the restaurant, the number of guests coming each day and the frequency of the guests’ visits will give evidence of effective communication.

SWOT Analysis

Strengths

Fresh market

The market of organic food is fresh in our country50. We launch our product in a market in which there is no direct competitor. People who prefer organic food will be a large portion of our potential customers.

Fully New idea

The most important strength of our venture is the concept of an organic food restaurant is increasingly being adopted worldwide to promote best eating habits and hence improve health fitness51. The number of restaurants offering such services in London is currently limited52.

No dependence on raw materials

We do not depend on external sources for our basic raw materials (such as chicken, fish, egg, milk, meat, vegetables, etc). Rathe,r we produce these products in our own firm. This will ensure a continuous supply of raw materials at a lower cost53.

Organic elements are ensured

If we purchase our basic raw materials from outside suppliers, we can not ensure our customers that the foodstuff we supply are fully organic. As we produce the raw materials in our own firm and we ourselves monitor each and every step of the production process, we can ensure our customers that our products are fully organic.

Customer satisfaction

As we can ensure the organic element in our food items, this will satisfy our customers to seek organic food and helps us to retain old customers and create new customers.

Strong staff resources

Our five entrepreneurs are directly engaged in the management of the business. This will ensure the proper monitoring of the business54. Also, at every stage of production and operation, we employed sufficient staff and workers.

Modification of menu

Our menu is not fixed. We will change our menu and add new items in our menu to attract new customers and to give customers a good experience in dining.

Own transport

We use our own 1.5 ton truck to carry raw materials from our firm to our restaurant. Thus, we need not rely on outside transport, and our transportation cost will be substantially low.

Advertising

Not all restaurants in our country advertise. But we know the strength of advertisement and we go for it55. Our billboard will definitely inform the potential customer that a new way of the restaurant is being opened for their experience. Poly signs and banners are also helpful in promoting our advertising process.

Secured source of capital

Our restaurant has raised its capital from internally generated funds mainly. Some portion would be provided by an investor in the venture. So, the sources of capital are quite secured.

Modern technology56

We have adopted some modern technologies keeping facilities online contracts with the customers. Moreover, we welcome the guests to use their credit cards or debit cards in the payment of the bill.

Attractive interior

Our restaurant would provide some attractive interior arrangements with a soothing environment that will be enlightened and dirt-free enough to please our guests. Moreover, our rhythmic sound system would pace up the entertainment at a large scale.

Proper management

Five of our entrepreneurs are directly engaged in management. They will work with their best effort, and this will ensure a proper management system.

Proper planned organizational structure

Our organizational structure is very simple. Senior management is under the supervision of the partners, which would ensure the proper planning and implementation of the decisions.

Weaknesses

Very unfamiliar concept

As the concept of organic food is not so familiar to our present customers, some customers may not be interested in the idea, or they may not believe the credibility of the food items to be organic fully.

Cost-sensitive project

Since the production of raw materials is somewhat costlier than producing other ingredients for this line of business, offering organic food is really a cost-sensitive project57.

Small dimension of the restaurant

The dimension of the restaurant is not too large to accommodate more than 200 visitors at a time. Moreover, some other restaurants are offering more spacious arrangements for serving the cuisines.

Amateur senior management58

The senior management of our restaurant is quite amateur because they don’t have any realistic prior experience of maintaining and controlling the operations of business. Thus, this may appear as a weakness for the well-functioning of the restaurant.

Absence of occasional discount

Even though we are opening a new arena of the restaurant business in London, we won’t provide any occasional discount system on foodstuff whereas other competitors would provide these opportunities to the potential customers. Our conception is that such discount might reflect a negative attitude on the customers regarding the quality of our cuisines59.

Opportunities

As entrepreneurs we, expect the following opportunities that our venture can confront in future:

Taking over of competing firms

Since our operation would attract the potential flavour of customers and the number of circumspect consumers might increase keeping the consideration of quality and hygiene of the foodstuff, we hope to take over other competing firms in future; which is an imperative opportunity of our restaurant business.

Impressive relationship with suppliers

Though most of raw supplies would come from our farm, it would be ideal to hope to work without any supplies. Cooking appliances and other non-farm produce will have to be obtained from various supply stores60. As some of our raw materials for the preparation of food items would be collected from the suppliers, we hope to maintain an effective relationship with them. This would ensure quality materials. A good relationship with the stores is paramount to our success61. We will not only expect them to act as our good ambassador but also to be able to avail products when we need them either on cash or credit terms.

Cutting costs

In order to ensure the organic nature of our food items, we won’t use any insecticide or chemical fertilizer in our production unit lands. Our own generated manure from dairy and poultry would be used in those lands. So, this will cut our costs to some extent.

Threats

Sometimes the opportunities may not appear with regard to the expectation. So, some threats might affect the venture at large62. Our restaurant business might face the following threats:

Competitors’ change in action

In quest of tackling our business strategy, the competitors might change their course of action. For example, they can also open this organic branch of operation that might lead our market capture63. Again, they can also introduce new diversified mechanisms64.

Change in consumer taste

Since the consumers always transform their taste or preference in any commodity, we might face a lower consumer demand under that situation. The rationale behind this is the overabundance of restaurants in the organic line of food venture65.

Financial Analyses

Sales Forecast

The sales forecast are expected to grow over the years, according to a report released on the current hotel market trends66.

Table 3: Sales Forecast.

Sales Forecast for the First Year
Opening Time No of Customers/Day No of Customers Per Month Sales per Item Sales per Month Total Sales per Year
Morning 50 1500 £15.00 £22,500.00 £270,000.00
Noon 80 2400 £25.00 £60,000.00 £720,000.00
Evening 120 3600 £40.00 £144,000.00 £1,728,000.00
250 7500 0 0
Grand Total in £ 226,500.00 2,718,000.00
Opening Time No of Customers/Day No of Customers Per Month Cost per Item Cost per Month Total Cost per Year
Morning 50 1500 4.5 £6,750.00 81,000.00
Noon 80 2400 7.5 £18,000.00 216,000.00
Evening 120 3600 12 £43,200.00 518,400.00
Total 250 7500 24 £67,950.00
Grand Total £ 815,400.00

Monitoring Procedures

Monitoring process our plan is paramount to its success67. Lots of logistics are necessary and therefore a strong monitoring and evaluation team will be put in place. The team will be expected to adhere to strict deadline dates and report any planning variations early enough to the management.

A marketing audit will be performed to ensure that the budget allocated for the activities are being used in the right direction and not wasted by the responsible people68. This is increase the trust of share holders and investors in our company and will be very helpful to our company in terms of finances69. This trust will create loyalty for our customers and consumers towards our brand and our products. In audits, our advertisement revenues will be monitored70. Our all finances will be monitored, which will be used in the growth of the company to ensure that the finances are utilized in the right direction.

Personnel plan

Staff No Salary
Per person
Salary
per Month
Salary per
Year
Restaurant Manager 1 4,000 4,000 48,000
Purchase officer 1 3,000 3,000 36,000
Chef 2 3,000 6,000 72,000
Assistants to Chef 2 1,500 3,000 36,000
Accountant 1 2,500 2,500 30,000
Waiters 5 1,500 7,500 90,000
Cashier 1 2,000 2,000 24,000
Cleaning Staff 2 1,000 2,000 24,000
Total Payroll 30,000 360,000

Financial Statements

Forecast Income Statement
for the year ending 28thFebruary 2012
Expenses £ Income £
Sales 2,718,000
Less: Cost of Sales
Cost of food materials 815,000
Cost of sales 815,000
Gross Profit 1,903,000
Expenses:
Worker wages 360,000
Restaurant rent 360,000
Electricity charges 180,000
Other expenses 30,000
Sales Promotion 70,000
Insurance 15,000
Legal and local taxes 12,000
Vehicle maintenance 15,350
Amortization 24,000
Depreciation 40,000
Total Expenses 1,106,350
Profit for the year before tax 796,650
Less: Taxation (30%) 238,995
Net Profit carried over 557,655
Forecast Balance Sheet
As of 28thFebruary 2012
Description £ £
Fixed Assets
Kitchen and Interior 220,000
Less: Depreciation 22,000 198,000
Furniture 180,000
Less: Depreciation 18,000 162,000
Intangible Assets
Sales Promotion Expenses 120,000.00
Less: Amortisation 24,000 96,000
Total Fixed Assets: 456,000
Current Assets:
Cash balance 840,650
Rent Advance 300,000
Tax Paid 200,000
Total Current Assets 1,340,650
Current Liabilities:
Provision for Taxation 238,995
Net working capital 1,101,655
Total Assets 1,557,655
Source of Fund:
Capital 1,000,000
Net Profit for the year 557,655
Total Equity 1,557,655
Forecast Monthly Cash Flow Statement for the Year 2011-12
Month Start-up Mar April May June July August
Cash Inflow
Sales Revenue 193,000 200,000 200,000 225,000 240,000 240,000
Initial capital 1,000,000
Total (A) 1,000,000 193,000 200,000 200,000 225,000 240,000 240,000
Cash outflow
food materials 60,000 60,000 65,000 70,000 70,000 70,000
Worker wages 30,000 30,000 30,000 30,000 30,000 30,000
Restaurant rent 30,000 30,000 30,000 30,000 30,000 30,000
Electricity 15,000 15,000 15,000 15,000 15,000 15,000
Other expenses 2500 2500 2500 2500 2500 2500
Sales Promotion 15,000 20,000
Insurance 15,000
Legal, local taxes 12000
Fuel 1250 1400 1500 1500 1200 1000
Kitchen and Interior 220,000
Furniture 180,000
Sales Promotion 120,000
Rent advance 300,000
Taxation
Total (B) 820,000 150,750 138,900 159,000 149,000 163,700 168,500
Net cash (A) – (B) 180,000 42,250 61,100 41,000 76,000 76,300 71,500
Opening balance 180,000 222,250 283,350 324,350 400,350 476,650
Closing Cash 180,000 222,250 283,350 324,350 400,350 476,650 548,150
September October November December January February TOTAL
240,000 240,000 240,000 240,000 230,000 230,000 2,718,000
1,000,000
240,000 240,000 240,000 240,000 230,000 230,000 3,718,000
70,000 70,000 70,000 70,000 70,000 70,000 815,000
30,000 30,000 30,000 30,000 30,000 30,000 360,000
30,000 30,000 30,000 30,000 30,000 30,000 360,000
15,000 15,000 15,000 15,000 15,000 15,000 180,000
2500 2500 2500 2500 2500 2500 30,000
20,000 15,000 70,000
15,000
12,000
1400 1300 1200 1400 1200 1000 15,350
220,000
180,000
120,000
300,000
200,000 200,000
148,900 148,800 168,700 148,900 148,700 363,500 2,877,350
91,100 91,200 71,300 91,100 81,300 -133,500 840,650
548,150 639,250 730,450 801,750 892,850 974,150
639,250 730,450 801,750 892,850 974,150 840,650

Risk Analysis/Mitigation

Inadequate start-up period

A major risk that the business is vulnerable to is the possibility of an extended start-up period71. There is a probability that our projections might not fall within the projected two year period into profitability. However, this is catered for by the extended budgeting made for a three year period to cushion us against any fluctuations. Operational contingency is specifically included in the budget to cater for any shortfalls that may bring along financial obligations.

Market acquisition

Getting clients is a fundamental challenge that we have to reckon with more so considering that we are new entrants into their market72. Possibility of not getting the targeted client base within the specified period cannot be ignored73. Mitigation is based illustrated by the marketing strategies described earlier and the heavy investment in marketing as seen in the start-up resource allocation plan.

Competition

Our major competitors introduce measures to curb our entry into the market by introducing products similar to us in a bid not to lose clients to us. This challenge we intend to counter by the unique serene environment we offer that will be attractive to our new client regardless of substitute products from our competitors74.

It is vital to note that the first year will be crucial to our success and will present an increased risk to our operations. However, these risks will be expected to decline and eventually settle at minimally acceptable levels as our business operations pick up.

Conclusion

From the financial calculations, it is observed that the project earns a net cash flow of £ 840,650 in the first year of its operation. This implies that the project has a payback period of around 16 months, which is a good investment to consider. The restaurant has an estimated gross margin of 70% and a net margin of around 20.5% in the first year of its operation. With the progress of time, the restaurant can earn a reputation in the market and attract more customers, which will contribute to better performance and profitability for the restaurant. Therefore, this project is recommended for investment.

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Fullen, S, Opening a restaurant or other food business starter kit. Atlantic Publishing Company, 2009. Web.

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Weber, K, Managers Perception of Hotel Chain Practice, Benefits and performance Analysis, 2008. Web.

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Zaltman, G. Deshpande, R. & Moorman, C, Factors Affecting Trust in Market Research Relationships, The Journal of Marketing, 57(1), 1993, p 81-101. Web.

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Footnotes

  1. Barman, J. New Westminster Neighbourhoods. 2010. Web.
  2. Phillips, P. A. Strategic planning and business performance in the quoted UK hotel sector: results of an exploratory study. International Journal of Hospitality Management, 2009, 15(4), p 358. Web.
  3. Ibid
  4. Weber, K. Managers Perception of Hotel Chain Practice, Benefits and Performance Analysis. 2008. Web.
  5. ibid
  6. Gloucestershire. Reports of the Research Committee of the Society of Antiquaries of London. Annual Scholarly Review, 4(10), 2007. Web.
  7. City of Westminster. Westminster Population Research 2007: Final Report. 2008. Web.
  8. ibid.
  9. Data Management and Analysis Group, Greater London Authority. Demography Update.2007. Web.
  10. Varadarajan, P. R. & Menon, A. Cause-Related Marketing: A Co-alignment of Marketing Strategy and Corporate Philanthropy. The Journal of Marketing, 1988, 52(3), p 62. Web.
  11. Ibid.
  12. Coyle, M.P. & Dale, B. G. Quality in the hospitality industry. International Journal of Hospitality Management, 2007, 12(2), P 141-153. Web.
  13. Estelle, M. “Demystifying Competitive Intelligence” Ivey Business Journal, 7(4), 2006. Web.
  14. Guthman, J. Regulating Meaning, Appropriating Nature: The Codification of California Organic Agriculture. Antipode, 1998, 30(2), p 148. Web.
  15. Business Plan Questions and Answers. Cheswick House and Gardens, Business Plan Q&as, 15th March, 2010. Web.
  16. Covin, J.G. & Slevin, D. P. Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 2006, 10(1), p 81. Web.
  17. Juin, S.C. Marketing Strategy. 2010. Web.
  18. Barney, J. B. Strategic Factor Markets: Expectations, Luck, and Business Strategy. Management Science, 1986, 32(10), p 1240. Web.
  19. Business Plan Questions and Answers. Cheswick House and Gardens, Business Plan Q&as, 2010. Web.
  20. Hoffman, A. Competitive environmental strategy: a guide to the changing business landscape. Web.
  21. Hill, T. SWOT analysis: It’s time for a product recall. Long Range Planning, 1977, 30(1), p 49.. Web.
  22. Gloucestershire. Reports of the Research Committee of the Society of Antiquaries of London. Annual Scholarly Review, 4(10), 2007. Web.
  23. Slater, S. F. & Narver, J. C. Does Competitive Environment Moderate the Market Orientation-Performance Relationship? The Journal of Marketing, 1994, 58(1), P 51. Web.
  24. Anonymous. Organic Holidays. Times Online 100. 2010. Web.
  25. Kasperson, R. E. & Kasperson, J. X. The Social Amplification and Attenuation of Risk. Annals of the American Academy of Political and Social Science, 1996, 545(11), p 97.. Web.
  26. Cornell Hotel and Restaurant. Loyalty: A Strategic Commitment. Quarterly, 1998, 39, p 18. Web.
  27. Youngmi, C. & Kim, G. W. Antecedents and consequences of relationship quality in hotel industry. International Journal of Hospitality Management, 2002, 21(4), p 332. Web.
  28. Reich, M. Gordon, D. M. & Edwards, R. C. A Theory of Labor Market Segmentation. The American Economic Review, 1973, 63(2), p 361. Web.
  29. Gloucestershire. Reports of the Research Committee of the Society of Antiquaries of London. Annual Scholarly Review, 4(10), 2007. Web.
  30. Youngmi, C. & Kim, G. W. Antecedents and consequences of relationship quality in hotel industry. International Journal of Hospitality Management, 2002, 21(4), p 321-338. Web.
  31. Shrum, J. A. & Lowrey, T. M. Buyer Characteristics of the Green Consumer and Their Implications for Advertising Strategy. Journal of Advertising, 1995, 24(2), p 75. Web.
  32. Hendrik N. J. & Ophuis, P. M. Health-related determinants of organic food consumption in The Netherlands Food Quality and Preference, 1998, 9(3), p 127.
  33. Baty, C. Historical Society of Carroll County: Westminster. Web.
  34. Barclays Commercial London hotels review, 2010. Web.
  35. Reich, M. Gordon, D. M. & Edwards, R. C. A Theory of Labor Market Segmentation. The American Economic Review, 1973, 63(2), p 360. Web.
  36. Sullivan, A. & Steven, M. S. Economics: Principles in action. Upper Saddle River, New Jersey: Pearson Prentice Hall, 2003, p. 29
  37. Hoffman, A. Competitive environmental strategy: a guide to the changing business landscape. Web.
  38. Business Plan Questions and Answers. Cheswick House and Gardens, Business Plan Q&as, 2010. Web.
  39. Colvin, M., Heeler, R., &Thorpe, J. Developing International Advertising Strategy. The Journal of Marketing, 1980, 44(4), p 78. Web.
  40. Shrum, J. A. & Lowrey, T. M. Buyer Characteristics of the Green Consumer and Their Implications for Advertising Strategy. Journal of Advertising, 1995, 24(2), p 79. Web.
  41. Smith, W. R. Product Differentiation and Market Segmentation as Alternative Marketing Strategies. The Journal of Marketing, 1956, 21(1), p 4. Web.
  42. Muehling, D. D. & Laczniak, R. N. Advertising’s Immediate and Delayed Influence on Brand Attitudes: Considerations across Message-Involvement Levels. Journal of Advertising, 1988, 17(4), p 27. Web.
  43. Srinivasan, V. & Green, P.E. Conjoint Analysis in Marketing: New Developments with Implications for Research and Practice. The Journal of Marketing, 1990, 54(4), p 11. Web.
  44. Eric, S. Et al. The Ernst & Young Business Plan Guide. New York: John Wiley and Sons, 1993, p 61.
  45. Shrum, J. A. & Lowrey, T. M. Buyer Characteristics of the Green Consumer and Their Implications for Advertising Strategy. Journal of Advertising, 1995, 24(2), p 79. Web.
  46. Raabe, S. The Bio-Hotel Balance in Wallis. 2010. Web.
  47. Kasperson, R. E. & Kasperson, J. X. The Social Amplification and Attenuation of Risk. Annals of the American Academy of Political and Social Science, 1996, 545(11), p 95. Web.
  48. Croft, M. J. Market segmentation: a step-by-step guide to profitable new business. 2002. Web.
  49. Weber, K. Managers Perception of Hotel Chain Practice, Benefits and Performance Analysis. 2008. Web.
  50. Ibid.
  51. Panel 2. World Urbanization Prospects: The 2007 Revision Population Database. Zurich: United Nations, 2008, p 11.
  52. Walker, J. R. The restaurant: from concept to operation. Wiley and Sons. 2003. Web.
  53. Gloucestershire. Reports of the Research Committee of the Society of Antiquaries of London. Annual Scholarly Review, 4(10), 2007. Web.
  54. Howard, C. The Complete Idiot’s Guide to Starting a Restaurant. Alpha Books. 2005. Web.
  55. Ibid.
  56. Walker, J. R. The restaurant: from concept to operation. Wiley and Sons. 2003. Web.
  57. Ibid.
  58. ibid.
  59. Ibid.
  60. Edison, S. W. Antecedents and Consequences of Marketing Strategy Making: A Model and a Test. The Journal of Marketing, 1999, 63(2), p 18-40. Web.
  61. ibid.
  62. Ibid.
  63. Hill, T. & Westbrook, R. SWOT Analysis: It’s Time for a Product Recall”. Long Range Planning, 30 (1), 1997, 46–52.
  64. Coyle, M.P. & Dale, B. G. Quality in the hospitality industry. International Journal of Hospitality Management, 2007, 12(2), P 141-153. Web.
  65. ibid.
  66. Velez-Pareja, I. Guide for Forecasting Financial Statements and Financial Valuation of a Business Plan. Madrid: Instituto de Estudios para el Desarrollo, 2004. Web.
  67. Barclays Commercial London hotels review, 2010. Web.
  68. Stern, B. B. Medieval Allegory: Roots of Advertising Strategy for the Mass Market. The Journal of Marketing, 52(3), p 90. Web.
  69. Ginter, J. L. Market Segmentation, Product Differentiation, and Marketing Strategy. The Journal of Marketing, 1987, 51(2), p 7. Web.
  70. Morrison, J. A. et al. Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms. Journal of International Business Studies, 1991, 22(3), p 370. Web.
  71. Zaltman, G. Deshpande, R. & Moorman, C. Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations. Journal of Marketing Research, 1992, 29(3), p 314-328. Web.
  72. Cornell Hotel and Restaurant. Loyalty: A Strategic Commitment. Quarterly, 1998, 39, p 12-25. Web.
  73. Zaltman, G. Deshpande, R. & Moorman, C. Factors Affecting Trust in Market Research Relationships, The Journal of Marketing, 1993, 57(1), p 81-101. Web.
  74. Naresh, M. & David, B. Marketing Research: an applied approach: 3rd European Edition. 2007. Web.
  75. Zaltman, G. Deshpande, R. & Moorman, C. Factors Affecting Trust in Market Research Relationships, The Journal of Marketing, 1993, 57(1), p 81-101. Web.

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