Spain Delite - Tasty and Healthy Food - Example

Spain Delite “Tasty & Healthy” “Spain Delite relishes the taste buds of individuals with delicious and unique Spanish food, which are healthy as prepared from home made spices” Table of Contents 1. Executive Summary 3 2. The Industry 4 2.1 Relative Position of Spain Delite 4 2.2 General prospects and trends 5 2.3Market trends and opportunities 6 2.4 Competitors 6 3. The Product 7 3.1Product Description 7 3.2Benefits 8 3.3Differentiation from competitors 8 4. Marketing Research 9 4.1 Target Market 9 4.2 Market share 9 4.3 Anticipating change 10 5. Market Strategy 10 5.2 Establishing an image 10 5.2 Targeting 11 5.3 Pricing 11 5.4 Promotion and sales tactics 11 5.6 Product Development 12 6. Personnel 12 6.1 Details of employees 12 7. SWOT and PESTLE analysis 13 8. Finance 15 8.1 Assumptions 15 8.2 Profit and Loss Forecast 15 8.3 Cash Flow Forecast 16 8.4 Balance Sheet Forecast 17 9. Action Plan 18 9.1 Year 1 18 Works Cited 21 Name of student: Name of Professor: Course Number: Date of Paper: Business Plan 1. Executive Summary Detailed business plan does not only provide a wide view in a planned business, but it also helps in examining the success of the business that is going to be set up. The business plan is prepared for detailing the actions and preliminaries for a new take away restaurant in Spain. Spain Delite will be a take away food restaurant in the heart of Spain, which will provide healthy food to food lovers as main course and fast food. The demand for this particular business has increased over the passage of time as people have become very busy with their work life. Thus, they do not get much time to cook food after returning home after a long day’s work. Hence, take away restaurants help these individuals to get healthy food items in form of delicious palates. The speciality of Spain Delite is that it will use homemade spices so that the customers do not miss the homemade food when they cannot prepare food at home (Wilson 1330). The target market for take away restaurant is Madrid in Spain, where the take away counter will be located. Madrid is taken to be the business spot as it is the heart of Spain. The main attraction of the city is its football team and tourists often visit the beautiful place. Thus, the restaurant will not only fulfil the needs of the residents of Madrid but it will also surprise the tourists with excellent food items. The business plan has highlighted the main strategies for success of the take away business and the projected accounts are regarded sufficient for the operation of the business for the first 4 years. 2. The Industry 2.1 Relative Position of Spain Delite The take away food business is defined as the business, which offers food to the customers who take food from the counters and consume it elsewhere. There is not sit down an area where the customers can enjoy their food rather they have to go elsewhere for doing that. The main benefit of this kind of business is that it provides the needy customers with the hope of getting food, even at midnight when they are returning home from office. In the present structure of a family in Madrid is defined as working husband and wife with kids. In such a situation it becomes difficult for the couple to prepare food after coming back from office late at night. These customers prefer to grab food from take away counters and enjoy it at home with the family. This trend in family life has become popular worldwide. This trend has influenced entrepreneurs to come up with new ideas of starting take away restaurant so as to make profit. Apart from these customers, there are students and youngsters who prefer fast food and have the habit of spending a lot of time with friends by munching food and gossiping. These youngsters prefer take away restaurants as they take food and enjoy it at a friend’s place or during driving or even on the road. The craze for gossip and party has increased over the years within the youngsters which have actually increased the sales of restaurants and fast food centres. In Madrid, there are few take away restaurants like Cabo Pizza, McDonalds, KFC and few more. Among all the most prominent and renowned take way restaurants are KFC and McDonalds, which will be a challenge for Spain Delite. However, Spain Delite will provide range of Spanish food items to the customers that are not offered by its mentioned competitors. The main focus of the new take away restaurant will be to offer the customers the best food items with customized spice mix. This will help Spain Delite to make a significant position in the market within the large competitors (Shleifer 67; Lintner 13). 2.2 General prospects and trends Take away food restaurants have increased in number over the world as the change in the trend of dining of customers is observed over time. Individuals prefer to take food to home and enjoy it with their family. The take away habit has become a trend over time, which has triggered the entrepreneurs to take a decision to establish take away food business. This business is quite profitable in cities, where majority of households are office goers and they do not get enough time to cook at home. Presently, the Spanish market, especially the food market of Madrid requires a good Spanish take away restaurant that will support the needs of the population. The change in trend of individuals has raised the number of take away counters in Spain. All of them aim at providing multi-cuisine; however, Spain Delite will only concentrate on the authentic Spanish items that are liked by the Spanish people and people around the world. The spices that will be used for the preparation of the food are homemade which will take care of the health of the individual. The table provided below indicates the percentage rise in take away restaurants in Spain over the span of 10 years. Spain 2006 2007 2008 2009 2010 2011 2012 2013 2014 100% Take away and Home Delivery 3.9 3.4 2.7 2.5 3.1 2.3 9.9 14.8 16.9 The above table elaborates the fact that the take away business has increased at a considerable rate over 10 years, mainly due to the change in taste and preferences of consumers in Spain (Lintner 13). Individuals around the world prefer to purchase lower priced food as economic uncertainty can occur at any time of the year. Economic uncertainty such as recession forces the disposable income to decline as a result; the individuals are restricted to spend money on luxurious items. In such a condition, the take away restaurants suffer as people prefer to cook at home even if they are encountering the problem in doing so, as they aim at saving money (Whale 234; Wilson 1330). However, Spain Delite will provide authentic food items to Spaniards at a reasonable price even at times of recessions so that the customers can enjoy the delicious item even during that period. 2.3Market trends and opportunities This trend in the present food and service industry will favour the growth of Spain Delite. In Madrid, the majority of the household has couple, working in offices and thus they do not get adequate time to prepare dinner for the family. For this population in Madrid, Spain Delite has brought the opportunity to have homemade food every night as dinner with their family. It is also seen that individuals work late night in offices and when they return home the restaurants are closed as well as street side food corners. However, Spain Delite will take into account this difficult encountered by the late comers. Thus, the take away food restaurant, Spain Delite, will be open till mid night. This will help the late comers to have food at late hours. The take away restaurant will enable individuals to enjoy delicious homemade foods at late hours with their family (Sharpe 456; Whale 234; Wilson 1330). Apart from these individuals, the other group of customers that will be targeted by Spain Delite are students and youngsters. The increasing interest of the students and youngsters to purchase food from take away counters and enjoy it with their friends, is a great opportunity for Spain Delite is Madrid; as a result it will target these students and make delicious food items, which are liked by them. Apart from customers, the suppliers are also an essential part of a business. In Madrid, there are many suppliers for raw materials and thus this will be another opportunity for take away business (“Takeaway Fast Food Business For Sale in Benalmadena, Spain, Bars For Sale Costa del Sol, Spain”). 2.4 Competitors Competitors in hotel and restaurants are severe as there are many in numbers. In Madrid there are many restaurants, which provide multi-cuisine to the population in Madrid. There are fast food centres and popular fast food chains too that have served the customers of Madrid for years (Pastor and Stambaugh.101). The fast food chains include KFC and McDonald; these two fast food giants have captured the majority of fast food industry in Madrid with their delicious food that gives emphasis on Spanish food items. The competition for market share is higher in Madrid as there are many restaurants, which have satisfied the customers with healthy and tasty foods. There are many take away restaurants that aims at serving the population with best fast food. Thus, Spain Delite will have to encounter a huge challenge from the fast food giants and restaurants. Hence, in order to sustain in such a tough market, Spain Delite will have to strategies appropriately. Strategies include usage of homemade so that the health of consumers is not affected; at the same time they get the experience of homemade food. In order to compete with the fast food giants, Spain Delite will have to keep low-priced foods that will attract more customers, and it should maintain the quality of food (Roll 130; Warde 300; Sharpe 456; Whale 234; Wilson 1330). 3. The Product 3.1 Product Description Spain Delite will aim at producing Spanish foods includes both main course and fast foods. Fast foods are sold rapidly as the trend of fast food has become popular among youngsters worldwide. However, the same trend is followed by the youngsters in Madrid. They prefer to enjoy burgers and pizzas with their friends at parties and even at home when they are spending leisure times. They dig into a tug of popcorn as they watch movies together. These happy moments are taken into account by Spain Delite and will help the customers to make their moments comfortable with delicious pizzas for them; this pizzas can be served to at least 8 individuals at a reasonable price. Pata Negra is referred to the ham from pig, which are identified by its black hoofs. This hoofs come from the pigs in Iberia, a native place of Spain (Warde 300). The burgers will be prepared with Pata Negra as it is liked and favoured in Spain. Pata Negra will be used in other dishes too. The main courses will include rice and noodles, which will be prepare with the help of Spanish touch and important part of the food items are that it will be made with the help of homemade spices. The spices will enhance the taste and texture of food items, which will attract the customers repeatedly to the counter. The Spaniards are very fond of ham and thus the speciality of Spain Delite will be different items of ham which are not prepared until now. The products will be prepared in such a way that it will make a differentiation from other restaurants and take away (Meldrum 575). 3.2 Benefits There are many benefits of the products of Spain Delite as it protects the individuals from any health problem. The food will be prepared with the help of homemade spices. The spices will be made very cautiously and no harmful ingredients will be added to the spices to make it more delicious. The spices are thus real and are not contaminated with germs. These spices will enhance the taste and essence of food. The food items will be fat free as sugar free will be used to cook the food. Thus, Spain Delite will provide healthy and fat free food to the youngsters, who are figure and health concise. Apart from that, the food will make customers to return to restaurant repeatedly as delicious dishes will make an everlasting impression on consumers (“Takeaway Fast Food Business For Sale in Benalmadena, Spain, Bars For Sale Costa del Sol, Spain”). 3.3 Differentiation from competitors The food items prepared by Spain Delite will be fat free and is produced with the help of homemade spices. This is the main differentiation from its competitors (Andersson 173). The competitor uses branded spices, which are often found to have artificial ingredients. This ingredient is the main cause of dangerous diseases, which destroys the life of an individual. Apart from that Spain Delite will aim at producing new innovative items out of ham as it is mostly favoured by the mass. These innovative products are not an initiative from competitor; thus it will be easier for the new take away restaurant to penetrate the market (Soriano 1060). 4. Marketing Research 4.1 Target Market The target market for Spain Delite will be the general population in Madrid. The target market can be segmented as per life style and demographics. The demographics include both male and female. The households of Madrid are welcome to visit the take away restaurant and purchase food as per their demand. They are even given the opportunity to purchase customized food items as per their requirement. The life style of customers can be defined as the way of living whether they are rich or middle class people. The life style for both the class is different and taste and preferences are also separate. Spain Delite targets to satisfy the need of both the classes. The rich class requires the best quality food and the exact taste which is desired they are ready to pay any amount. However, the middle class people are restricted to a minimum price. Both the concerns will be taken into account by Spain Delite and food prices and items will be prepared accordingly so as to satisfy both the groups (“Takeaway Fast Food Business For Sale in Benalmadena, Spain, Bars For Sale Costa del Sol, Spain). 4.2 Market share Spain Delite expects to capture quite a significant amount of market share in Madrid by offering its customers the best food (Nystedt 245). The fast food is prepared fat free which will help the youngsters to keep a check on their diet. As a result of the different items made of ham, Spain Delite will actually delight the customers and make them happy with every bite on the food. Every time the customers tries something new form the range of food itmes of Spain Delite, the food will relish their taste buds. The customers with their varied tastes and preferences are expected find their favourite items in Spain Delite. Though it is hard to compete with the fast food giants KFC and McDonald; but Spain Delite desires to make a respectable and acceptable position in the market so that customers recommend them to friends and relatives. The increase in confidence level of the business with time it can expand to other places in Spain (Nichols 881). 4.3 Anticipating change The food and service industry is totally dependent on consumer behaviour. Consumer behaviour is unpredictable as it changes with the passage of time. Apart from consumer behaviour another major issue that can change the fate of the industry is the financial crisis. During 2007, the disposable income of the individuals declined to a great extent, which forced them to cut down their expenses. The effect was visible in the food and service industry as sales declined drastically. These changes in the economy can take place any time and thus it cannot be anticipated only the business have to make contingency plans for managing the situation efficiently (“Takeaway Fast Food Business For Sale in Benalmadena, Spain, Bars For Sale Costa del Sol, Spain). 5. Market Strategy 5.2 Establishing an image The new take away restaurant has the desire to develop a significant image in Madrid in the first two years of operation as it will plan to expand in different places in Spain. The success of the take away in Madrid is readily needed for building up such a confidence to expand. Hence, Spain Delite will not leave any effort to make them the best take away in Madrid and give its competitors a tough competition (Gupta 45). 5.2 Targeting The business aims at targeting the general population of Madrid, which comprise both rich and middle class people. Majority of the households in Madrid does not have enough time to prepare food after coming back from office. They prefer to grab food from outside ad enjoy it with their family. This provides the perfect experience of being at home even having food from outside. Apart from them even the youngsters who are basically students have the trend to purchase food from take away and enjoy it at their friend’s place, in car and even in the roof over a long hour of gossip (Cummins and Macintyre 103). 5.3 Pricing The price of the food items are kept low as it will be acceptable for each and every class of people. However, the quality of the food will not be compromised it will be the same and best. Though the business will employ homemade spices it will keep prices low initially so as to attract more customers. If the business succeeds, in the long run, the owners can think of increasing the price and keep a competitive price. 5.4 Promotion and sales tactics The promotion of the new take away will be done through advertising and leaflets. The main details of the take away restaurant will be given in the advertisements that will be flashed in newspaper and televisions. Further, social networking sites will also be employed to promote the products of the restaurant. The leaflets are distributed along with magazines and newspapers so that the population get to know about the new food junction. The sales tactics that will be followed by Spain Delite are guiding the customers with the foods so that it can serve the best food to them. 5.6 Product Development Customer feedback will be taken over the phone after they have enjoyed the food after returning home (Kapoor 45). According to the feedback, Spain Delite will modify the ingredients of dishes and try to make more dishes, which are liked by the mass. This feedback does not only indicate which products they have to change it also highlight the issues that can be encountered in future if steps are not taken at the initial stage. Product development is needed at every stage of success of the restaurants in order to stay competitive in the market. 6. Personnel 6.1 Details of employees Spain Delite will have 30 employees initially. It includes owners, managers, employees, staffs, chefs and waiters. Responsibility Owners (2) They are responsible for the overall monitoring and development of the business. Take weekly reports from the managers assigned for the restaurants. Managers (4) Branch Manager has the responsibility to take care of the overall needful of the restaurants and monitors other managers. Financial manager prepares the reports for the restaurant’s finance. The marketing managers in collaboration with the owners develop new ideas for the promotion of the restaurant. The staff head is responsible for managing the waiter and train them according to the need of the customers. Staffs (10) They are responsible for the maintenance of the restaurants. Chefs (10) The chefs are responsible for preparing the delicious food. Waiters (4) They are responsible for taking orders from the customers and hand over the right order after preparation of the same (Madura 67). 7. SWOT and PESTLE analysis SWOT Analysis Strength Healthy and tasty foods Usage of homemade spices, which are good for the health of the customers. Tasty dishes with the help of hams that are not prepared by its competitors. Excellent location, Madrid Weakness Competition Initially it’s a small business, can affect the image of the business. Dependent on suppliers. Opportunity Population in Madrid Take away trend is popular in Madrid Wide acceptance of Spanish food Threat Changing taste and preferences of the customers Economic uncertainties Limited amount of suppliers PESTEL Analysis Political The political condition of Madrid supports the establishment of a new business as there is no pressure from the ruling parties. Businesses have to take initial permission from the local parties before approaching government with the proposal of setting up a new business. Innovation and development is encouraged by the parties. Economical The economical condition of Madrid can influence the businesses especially food and delivery. The economic turmoil is unpredictable and thus it can come any time and destroys business totally. The economy has the capacity to fight recession and financial which took place during 2007; however, the businesses do not have enough strength to bear the losses that come with events. Social The social life of an individual is very crucial and it aims at defining the overall life style of the individual. The people in Madrid are health conscious at the same time they are very foodie. They like to taste different types of dishes. The social factor of Madrid may favour the business as in it can attract more customers; but if there is change in preferences then the business will have to modify accordingly, which adds to the cost. Technological The technological development has affected many industries worldwide and thus it is an essential factor that should be considered by Spain Delite. Spain Delite will implement all the modern amenities to produce healthy foods. Environmental Spain Delite will ensure that it does not use such raw materials or make certain dishes which are dangerous to the environment and can harm it badly. The rule and regulations followed by the particular industry are strict; thus in order to obey the legislation Spain Delite has to maintain its production level and food quality. Legal The industry has to obey certain legal elements that are essential of successful and uninterrupted operation of the food stations and restaurants. 8. Finance 8.1 Assumptions The basic assumptions that will be considered by the business before its start-up are as follows: 1) The start-up capital will be sponsored by the family of the owners and thus there will be two partners who will be contributing the major amount. 2) Loan will be taken from a renowned national bank only after the business plan is proved to be efficient enough to pay back the money. 3) The sales of the take away is expected to rise every month by 2% and the end of second year it is expected to earn huge amount of profit with which it can think for expansion. 4) The food items are sold at a reasonable price. The raw materials are obtained from suppliers at a lower price which will enable the business to provide food at a lower price to customers. 8.2 Profit and Loss Forecast The Profit and Loss account of Spain Delite is depicted below: From the above table, it is clear that during the initial few months of commencement of business, Spain Delite will encounter a loss; however, in the third quarter of the first year the business will start to earn profit. This profit will again become negative in the beginning of the second year as the set cost will be needed for the further development of the business. The sales of the business are expected to rise every month by 2% which will indicate that the customers will favour the dishes provided by Spain Delite. 8.3 Cash Flow Forecast The following table depicts the cash flow statement of Spain Delite: From the above table, it is evident that opening and closing balance of the business is considerable enough to operate successfully in Madrid. 8.4 Balance Sheet Forecast The following table depicts the balance sheet of Spain Delite: The above table elaborates the fact that the business will have enough cash to manage the current liabilities. 9. Action Plan 9.1 Year 1 Task January February March April May June July August September October November December Planning for the set up Purchase of equipments and furniture Set up of business Hiring of employees Decorating and developing the business station Training them Promotion planning Spread of information Works Cited Andersson, Tommy D., and Lena Mossberg. 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"The microbiological quality of cooked rice from restaurants and take-away premises in the United Kingdom." Journal of Food Protection® 62.8 (1999): 877-882. Nystedt, Jens. Derivative Market Competition: OTC Versus Organized Derivative Exchanges. 2004. New York: International Monetary Fund. 2004. Print. Pastor, Lubos and Robert, Stambaugh. Costs of Equity Capital and Model Mispricing. Journal of Finance 54 (1999): 67-121. Print. Roll, Richard. A Critique of the Asset Pricing Theorys Tests Part I: On Past and Potential Testability of the Theory. Journal of Financial Economics 4(1997): 129-176. Print. Sharpe, William F. “Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk.” Journal of Finance 19(1964): 425- 442. Web. 17 June 2014. Shleifer, Andrei. Inefficient markets: An introduction to behavioural finance. New York: Oxford University Press. 2000. Print. Soriano, Domingo Ribeiro. "Customers’ expectations factors in restaurants: The situation in Spain." 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