Sunshine Organic Restaurant Market Research - Example

Sunshine Organic Restaurant Business Plan Institution Name Executive Summary Sunshine organic restaurant is a new business that was inspired by the increasing health conscious to the increase of lifestyle diseases. Research indicates that a balanced diet can promote health, and thus there is an increasing percentage of people that feel the need to eat healthy food (Davis & Carl, 2006). For this reason, we believe Sunshine meals will be well received by the customers, and they will be willing to buy. Sunshine Organic restaurant will focus on the food industry, with particular emphasis on careering to the healthy food market at a quick service. The restaurant utilizes fresh organic produce to provide their customers with high nutritional value meals inspired by various cultures all over the world (Arvaniti, Faidon & Antonis, 2003). The meals are freshly prepared to meet individual need and preference. The location of the restaurant offers an eloquent atmosphere for the customer to enjoy their meals and provide a takeout option. The prospective initial restaurant locations will be at the University of Queensland. This location was chosen due to the proximity of students that are more accepting to changing dining options. Also, these demographics require quick-service due to their busy schedules. Dining variety and the need for healthy option quick service substitutes to the fast-food options would also provide families, businesspeople and employees a new option with time constraints at an affordable price. The Sunshine organic restaurant will be a sole proprietorship owned by Mark Johnson. The owner will be the manager of the restaurant. Business Philosophy Sunshine Organic restaurant concept is create a brand awareness by providing their customers with the freshest, healthiest, organic, and quality meals to create an image for high quality foods provided at a reasonable price. By working with local organic farmers, Sunshine will provide the best food to the customers. Mission Statement The mission of Sunshine organic restaurant is to offer delicious, healthy food and creating memories with our customers. Sunshine Organic restaurant will foster a family-like atmosphere where everyone feels welcome by ensuring our staffs provide excellent customer service. Sunshine hopes to promote various cuisines from all over the world in Brisbane, Queensland. A majority of foodstuffs to be used in the restaurant will be sourced from local suppliers from Bauer organic farm. Sunshine will hire and train the most passionate employees to provide high-level customer service to make each experience enjoyable. Product/Service Description The restaurant will offer organic products menu for breakfast, lunch and dinner. The restaurant meals are freshly cooked and blended smoothies from organic products. The products will be from local organic suppliers. The products selection includes a wide variety of natural and organic groceries, herbs, vegetables, spices, and fruits. Sunshine services set itself apart from its competitors in Brisbane, Queensland. All customers will order their meals at the counter and then they can either sit in a booth or wait for their food at the table. Smoothies and fresh juices will be available in a self-service area where the customers can select the size of glass they prefer. The prices will be charged according to the size of the glass. Self Analysis The conceptual business plan of Sunshine organic restaurant is an idea of a sole proprietor. It will offer a wide variety of cuisines from all over the globe from simple and healthy smoothies' options, organic meat, and other dining options. The Sunshine restaurant will be located near the University of Queensland. The location was chosen due to the closeness to a large number of students that are perceived to be more accepting of diverse dining options. Also the need for a quick-service alternative to fast-foods and is an interesting dining option to the majority of families, particularly during busy schedules at affordable prices with quick service. The restaurant will also offer take-out meals during lunch and dinner meal times. Having five years of experience in restaurant management has led to Mark desire to manage his restaurant. Mark has worked in a successful and profitable restaurant in Queensland, and this introduced me to the idea of owning a restaurant. Experiences in the previous restaurant have given him an opportunity to create some menus for Sunshine restaurant which I believe will attract a number of Queensland customers. His goal is to now own and operate an organic restaurant where he can put into practice his professional skills and experience. He has also experienced various activities during my years of professional services. He has pursued a business course, in start a successful restaurant. He is ready to take calculated risks and have strong confidence as a businessperson who is determined to set clear and attainable goals. Marks strength includes creative problem-solving skills, optimistic sense of direction, and open for new ideas. He is also willing to take calculated risks to ensure that the business will succeed. Market Research Geographical Data Brisbane has a population of approximately 2 million people. It is argued to have the largest population growth rate in all cities in Australia. The accommodation is affordable, for this reason, it is a home for major education centers, and thus, residents and students have plenty of space to have fun. Most of the residents in Brisbane are young, highly educated and from diverse cultural background. Approximately 20% of the population holds a university degree. Many companies in the country have offices in Brisbane to provide students with job opportunities. The working age population in Brisbane is 15 to 64 years. Demographic Data Sun Shine customer base will be composed of three population, working and business people, students, and residents. Brisbane has a population of approximately 2.3 million people and highest population growth rate in Australia. The key market demographic of Queensland will be university students aged between 20 to 26 years. This age group makes up of more than a fifth of the town population. There is five learning institution in Queensland: University of Queensland, Griffith University, Central Queensland University, Aviation Australia and Toowong Colleges This year the enrollment of new student will increase. Other important demographics are age groups of adults aged 28-55 years who make up a third of the population, which is more compared to the student population. The adult demographic is considered crucial because these customers have more disposable income compared to university students. Research shows that as income increases, the proportion on which income is spent on quality foods increases. Organic food is preferred because of the qualities with which the customer is concerned increases (Court, Vince-Cain & Jefferson, 2010J). There is an increasing health conscious group within these age demographics. Primary Research A market survey will be conducted using data from various social events in Brisbane. It is argued that majority of people at social events relate to their fun regarding foods they like. Also, the increasing demand for take-out meals is increasing as family roles change with time. Busy working schedule places a toll on families to prepare healthy meals daily. Consequently, they opt for take-out options; however, there are few restaurants serving healthy organic meals. Competition Direct Competitors Sunshine has few organic competitors in Brisbane, because restaurants do not provide organic meals, and if they do they do not have take-out options. There are few independent organic restaurants like Mondo and Organic Char. However, these restaurants serve vegetarian cuisines. Since they focus on specific cuisines, their food follows the same flavors, and while their foods are good, they are mostly known for dine-in rather than take out. However, there are other quick service restaurants in Brisbane that are extremely competitive. Despite the many fast-food dining options, there only a few that is based on the idea of healthy and organic options. Sun Shine organic restaurant competitive strategy is to offer a variety of cuisines that are very appealing in an elegant atmosphere. By offering an extensive menu with food from different culture, Sunshine will cater for multiple tastes in Brisbane since the town has a multicultural diverse population (Parsa et al., 2005). In other words, whether a customer will order for rice, steak chicken, salad, and so on they will have a variety of foods to choose from that suit their preferences. Customer can eat different food each day if they want to. As a result, Sunshine will attract more customers. Additionally, since they specialize on offering health organic food, they will meet the required daily nutritional value, which is a health requirement (Davis & Carl, 2006). In fact, we believe these will be one of the factors that will attract most of our customers. Also, offering quick service set the restaurant apart from other organic restaurant as people can order healthy take-out options to their home to enjoy with their families. Lastly, once a customer has tasted thee appealing healthy meals at Sunshine, they are more likely to come back and try something else (Ryu & Han, 2011). Indirect Competitors However, there are other food joints in Brisbane that offer food that can be taken in the place of with organic food take-out served At Sunshine. These are fast food restaurants such as Burger King, McDonalds, among others in Brisbane town. However, neither of these establishments offers a full menu or fresh, healthy meals. Although Burger King and McDonalds are well known for offering quick service, a customer who chose, these options do so out of convenience rather than the quality of the meals. Fast food restaurants though convenient rarely have healthy food that people can desire (Dahm, Aurelia & Amy, 2009). On the other hand, Sunshine organic restaurants competitive advantages with another quick service restaurant is its differentiation of having an extensive healthy menu in where one can grab a take-out or dine in during lunch or dinner. Although fast food restaurant may have a price advantage, the quality food offered at Sunshine will attract those people who want healthy cooked food rather than a snack (Nusair & Parsa, 2006). Sunshine restaurant will be the customer destination. Market segment analysis-Target customers Sunshine restaurant will serve three primary target markets. First, the college and university students will be one of the primary target markets due to the proximity of the desired location. This market segment will make up to about 33% of the market segmentation since Brisbane town is a home to several colleges and university. Another target segment composes of people working or doing business in Brisbane. This segment will make up for approximately 50% of the market segmentation who have busy working schedule, and thus have no time to prepare home-cooked meals daily placed on their busy working schedules and a desire to have healthy foods (McIver, 2004). The last target market consists of health-conscious people who make up about 17% of the market segment. Analysis of Potential Location Brisbane is a suburban area that is part of Queensland. It has a large population density of approximately 2 million. The ideal location for Sunshine restaurant would be near the University of Queensland. This would enable much of the student and other customers to access the restaurant, and would be a place close to colleges and universities, public transport, and center of commerce. The area potential is its ability to have many people including students, working class, and business people because it is near several higher learning institutions and companies. This was seen as a great location because demand for the food is near a place where quick-service is accepted. There are many business premises near University of Queensland. Sunshine restaurant will lease a premise and pay rent on monthly basis. The restaurant will open from 10:30 am to 9:30 pm daily. The staffs are expected to arrive 30 minutes before opening. Sunshine will combine mailing with other organic restaurant like Mondo and Organic Char to save money on postage. Complimentary business are those offering the similar products (Phillips, 2006). Additionally, the location will be ample parking to cater for their customers. Organization and Personnel Plan Ownership Choices The conceptual idea of this business plan for the organic restaurant is based on the idea of a sole proprietor, Mark Johnson. The owner will also act as the restaurant manager and will oversee the firm’s financial decision and hiring of workers. It will serve variety cuisines in a quick service setting. It will offer organic meat and vegetables, smoothies, and fresh juices. Personnel Needs The restaurant plan is to hire one assistant manager, a chef, three line cooks, and two order takers. The owner of the restaurant will act as the manager. His duties will be to oversee the daily operation of the restaurant, ordering ingredients and other inventory, and arrange for maintenance of the business (Heaton, 2009). The manager will take a monthly draw of $2,500 per month. The assistant manager will oversee the staff when the manager is not available. The assistant manager will oversee the duties of line cooks. The assistant manager will be paid $12.50 per hour and will also get the benefits plan. There will be five cooks working, at least, forty hours per week. The manager will be entitled to annual salary. However, other employees will be paid using specific job function hourly rate. They will have eight-hour shifts and get paid $10 per hour. The benefits plan is also provided. Hiring Strategy Full-time workers will be given a three vacations annually, and medical cover. However, the part-time employees will be given a vacation based on working. Unlike other restaurants, Sunshine organic restaurant will offer benefits to the workers. The company goal is that employees become a family. This will help reduce employee turnover, thus minimizing the overall operation cost (Meadow & Stacey, 2006). The workers will be trained in both operational duties and application of concepts. The managers will also provide guidelines to the way forward. The employees will also be tested to quality standards. Inventory control and food cost will be handled by a computer system. Marketing Plan Proposed Product or Service Plan Sunshine organic restaurant will serve its customers variety of healthy organic cuisines in a quick service setting. The foods will be available for both dine-in and takeout during lunch and dinner. Some of the main menu items planned to be used in the restaurants are organic meat served with rice, noodles and other grains with a variety of vegetables and juices and smoothies fresh juices and smoothies. There are some vegetable and meat options that will be served mixed with sauce to suit an individual taste preference. To offer a variety of cuisines to the customers, a spring mix will be offered as an alternative to rice. For those who will order take-out options, the food will put in a container with an aluminum foil to retain its freshness. A variety of marinates meat will be offered such as pork, grilled chicken, and steak with a side rice or other grain of choice. The fresh juice and smoothies’ option will be served at reasonable price. Proposed Pricing Policy All menu items will be moderately priced. An average customer will spend approximately $10 for a meal. Sunshine organic restaurant goal is to keep their customers happy to come back. At Sunshine restaurant, we tend to believe that this is due to providing a healthy meal for a quick service, and thus, we can cater for more customers. The restaurant will concentrate mainly on take-out option with five tables each with four seats. The anticipated turnover rate is three times a day. Assuming the projected capacity is met, the dine-in covers will be 60 covers daily (5 x 4 x 3 = 60). The take-out option is estimated at to have a lunch average of about 50 covers and dinner cover of about 30 per day. The restaurant will operate from 10.00 am to 10.00 pm. If we add our estimated the restaurant daily covers 50 take-out lunch + 30 take-out dinners and 60 dine-in covers = 140 daily covers. The projected average per check is estimated to be $10 per person. This means the restaurant estimated revenue on monthly basis would be approximately $42,000 (140 x 30 x $10.00 average check per cover = $42,000). Promotional Plan Personal Promotion This is a marketing tool that the restaurant will use when we sell food to companies. The sales manager will organize a meeting to convince employees from those companies to buy lunch at Sunshine organic restaurant. It is easier to convince organizations that already buy lunch for their workers as we seek strategies to let employees organize for lunch individually (Knudson, 2007). Non-personal Promotion Sunshine organic restaurant will use various forms of promotion. First, print advertising will be used by giving out coupons to the residents. Social media platforms will also be used, and the restaurant will use Facebook and Twitter page to expand its network and reach more customers (Raab et al., 2006). The restaurant will offer coupons and inform customers about special events through mail marketing. Broadcasting media will also be used to allow the restaurant to gain some publicity, particularly during the opening of the business. According to Leahy (2006), corporate social responsibility is crucial, and thus the restaurant the restaurant will support the event organizers of fundraising that pursue same beliefs as Sunshine Restaurant. Sunshine restaurant marketing budget will be flexible. This will enable the business to adjust different advertising strategies (Riesco, 2010). The marketing budget will be ten thousand annually; however, it will be adjusted to suit the time of the year. To monitor how Sunshine organic restaurant is doing, the advertising campaign will be measured by taking a random survey of customers in the restaurant. The customers will be asked how they came to learn about the business. Discount will be offered on their orders. Sunshine organic restaurant is committed to increasing its revenue by building a lasting relationship with our customers. We will also buy our ingredients locally to build a strong relationship. Buying parts from a reputable distributor is a major strategy to win over the competition. In order for the restaurant to maintain reasonable and affordable prices, most of these ingredients will be processed at the restaurant. We will build a close relationship with related industry to ensure that Sunshine restaurant the highest product at best price. Place The first location was chosen to be near the University of Queensland, a location that will enable the restaurant to reach a large market. The area potential is its ability to have many people including students, working class, and business people because it is near several higher learning institutions and companies. This was seen as a great location because demand for the food is near a place where quick-service is accepted. The business process simple, and will involve procurement of fresh ingredients. Following preparation of the food, the customer can order for Dine-in or take-out option. The base is of the leased property will be 1800 square feet that will cover office and washrooms, kitchen, dining area, packaging area, and storage area. Income Statement Using the data generated by the sales volume and margin an income statement was developed. Sunshine Organic Restaurant Projected Income Statement January 2016 – December 2016 Net Sales $504,000.00 Less: Cost of Goods Sold $218,000.00 Gross Income $286,000.00 Operating Expenses Rent $38,000.00 Utilities $3,000.00 Insurance $2,400.00 Sales Promotion & Advertising $12,000.00 Labor $120,000.00 Total Expenses $174,400.00 Net Income Before Taxes $111,660.00 Less: Income Taxes $33,480.00 78120.00 Net Income After Taxes References Arvaniti, F., Faidon, M., & Antonis, Z. (2003). Organic food: nutritious food or food for thought? A review of the evidence. International Journal of Food Sciences and Nutrition. 54.5 Athens, Greece. Court, C., Vince-Cain, & S., Jefferson, A. (2010, July). Happy family eating. Community Practitioner, 83(7), 36-37. Dahm, M. J., Aurelia V. S., & Amy R. S. (2009). Organic Foods: Do Eco-Friendly Attitudes Predict Eco-Friendly Behaviors? Journal of American College Health. 58.3 Beaumont, Texas Davis, S. F., & Carl, K. W. (2006). Organic Foods. Journal of Food Science 71.9. Heaton, S. (2009). Spreading the Organic Word. Organic Food News Quarterly. Retrieved from http://www.grinningplanet.com/2005/12-27/health-benefits-organicfood-article.html Knudson, W. A. (2007). The Organic Food Market. Business Innovation in Agriculture, Food and Natural Resources. Michigan State University. Leahy, K. (2006). The Naturals. Restaurants & Institutions. Meadow, T., & Stacey, J. (2006). Families. The American Sociological Association, 5. Retrieved from http://www.ucpress.edu/journals/rights/htm McIver, H. (2004). Organic Food Consumption on the Rise. Better Nutrition Nusair, K., & Parsa, H.G. (2006). Contributions of the White Castle and Ingram family to the quick-service restaurant industry. Journal of Hospitality and Tourism Education, 18(2),5-11. Parsa, H.G., Self, J.T., Njite, D., & King, T. (2005, September 14). Why restaurants fail. Cornell Hotel and Restaurant Administration Quarterly, 46(3), 304-322. Phillips, L. (2006). Food and globalization. Annual Review of Anthropology, 35, 37-57. Retrieved from http://www.jstor.org/stable/25064913 Raab, C., Hertzman, J., Mayer, K., & Bell, D. (2006). Activity-based costing menu engineering: A new and more accurate way to maximize profits from your restaurant menu. Journal of Foodservice Business Research, 9 (1), 77-96. Riesco, J. L. (2010). Restaurant Marketing Strategies. San Francisco, CA: Riesco Consulting Inc. Ryu, K., & Han, H. (2011). New or repeat customers: How does physical environment influence their restaurant experience? International Journal of Hospitality Management, 30 (3), 599-611. Read More