Business or Social Enterprise Issues - Case Study Example

Business Plan for Restaurant By Course Tutor Institution Location Date Word Count (2282) Business Plan for Restaurant Introduction to the service Yummy Deli is a locally owned restaurant set to become a global entity through a detailed artistic advancement of the company’s representation. Yummy Deli will offer an assortment of tasty recipes at affordable prices coupled with alluring packages and ambience. Yummy Deli provides a solution to the high demand for home-made fast foods designed for consumption type away from home but with a setting akin to the comfort that homes provide. The same food can be taken outdoors when window shopping or walking in the park. In the current increasingly competitive market sphere, it has become hard to distinguish one fast food restaurant from the other. Our core aim is to launch one restaurant in a busy mall, possibly in well-known shopping malls in a major city. Soon after, efforts may be directed to further developing other retail centres in neighbouring areas. Organisation Structure Yummy Deli is a private company registered as a limited firm, with listed ownership 30% - Catherine Stark, 30% - Billy Bob, 20% - Brett Snow, 20% - Anthony Miles. Both Catherine and Anthony have over 8 years of experience in food handling and the hospitality industry, and presently are part of the company’s corporate employees. Catherine has experience in project management having worked for numerous multinational companies in the country. Anthony holds a BS degree with a major in Management and Information Technology. Before returning to the UK, he held different management positions in a US based IT Company. Brett holds a doctorate degree from Harvard University, and is an enthusiastic entrepreneur; his current project is a high-end jewellery store. Bob boasts a degree in Interior and Graphic Design from the renowned Institute of Creative Arts, with his ventures varying broadly from brand development to product innovation. He has worked for several reputable firms. Aside from the owners, there would be an appointed general manager and two assistants who will oversee other members of staff. SWOT Analysis Strengths Availability of strong products aided by great tasting meals focusing on food quality, affordable and healthy products, including the speed with which meals are prepared A well-built trademark, tried out before complete execution. The culture of fund trademarks is also accentuated Positive market environment with Yummy Deli offering a new edge in increasingly inert selling platforms Reduced risk of development as the produce is currently in existence Small and easy risk growth taking a shorter time to sell, as well as low cost per unit It possesses a transferrable business model resulting from comparison in tendencies and the country’s traditions of fast food retailing. Capacity to exploit the concept and trademark with brand and concept with extension through franchises among different market fragments Reduced risk of management because of an experienced group and the variation of expertise and skills which harbour potential for wholesome results High profit limits on meal produce that can be increased by bargaining for bulk buying contracts with wholesale retailers (Rai & Rai 2010). Weaknesses Inability to aptly defend the idea as food products cannot be accorded exclusive rights; this can be addressed by creating strong product awareness and instituting a copyright on the system of complete quality and focusing on fast augmentation and acquiring prime areas of the intended market. The products on offer might be susceptible to deterioration over time, a situation that can be reduced by amplifying product diversification and improvement Opportunities Brand-specific prospects achieved by dominating market position through enhancing product awareness and topping the home-made fast food tradition by being cautious of current fast food trading opportunities. Taking advantage of diversity of customer groups to endorse expansion done by catering at events and trademark ownership Global expansion to other countries lacking in homemade fast food culture and pre-cooked foods. Target tactical partners for combined ventures, creation of a master franchise or sale of Yummy Deli Threats Vulnerability to imitation products from competitors, a situation that can be contained through rapid development of Yummy Deli products and brand. Seasonal demand for meal products causing contradictory returns. This can be reduced by diversifying the Yummy Deli trademark through catering, supermarket product lines and franchising. Sales and Marketing plan Intended audience: Marketing initiatives and efforts produce the best results and returns on capital when directed towards one’s target consumers – events, business, private parties, etc. Yummy Deli targets the youth and other individuals who have made the conscious decision to live a healthy lifestyle. The youth bracket does not only include school going teenagers but also recently employed people with busy lives and no time to prepare home cooked meals. In the initial stage Yummy Deli restaurant will draw customers from the local trade area within a 5 mile radius, making store exterior signage, customer referrals and prompt mail effective marketing equipment. However, our classy and unique menu and/or ambience will eventually draw from within a 20 mile vicinity or more. The range of the trade locale controls the kind of the distribution and advertising, therefore we will employ different marketing tools as and when need arises (Walker 2013). Customer base: Yummy Deli hopes to benefit from adequate use of the catering customer register to stretch out to the existing customer base for more recurrent transactions. To retain customers, quality services will be adhered to. All customer feedback will be taken into consideration and necessary actions taken to ensure their utmost satisfaction. Recommendations: Customer recommendations are among the best types of advertising and offer exceptional ways to enhance small businesses (OH & Pizam 2008). Contented customers and commercial contacts are highly likely to inform others about the grand produce and services they are being offered. Yummy Deli will actively request recommendations from its customers while further implementing motivation programs such as free services or discounted products, or gifts. Expert arrangements: Yummy Deli plans to network with event facilities, planners, and party or meeting venues that lack kitchens, including party store operators, schools, churches and other venue administrators and professionals can be helpful in gaining catering jobs and recommendations. Manufacturing, Distribution and/or Operations Our focus will be on healthy diets prepared in a homely manner. In adherence to a healthy and positive lifestyle, alcoholic beverages will not be sold in our outlet; instead, fruit juices, soda and smoothies will be offered to complement the food. Additionally, a variety of merchandise will be on offer, branded with our emblem and colours so that customers can enjoy our products at home. The same can be purchased at selected retailers. Yummy Deli primarily deals with local food and beverage recipes and corporate merchandise. Later, there are plans to create house specialties for which we can be identified and to carve a niche in the restaurant business. Suppliers of our produce will be drawn both locally and internationally. Preparation of meals and beverages will be done professionals sourced domestically who have a deep understanding of the local and national delicacies. This is to ensure quality of products on offer. Finance Personal resources of limited owners- since the restaurant is listed as a limited company, the owners are the main contributors of funds for the project. After conducting a thorough inventory of assets, the owners realized they have more than enough assets including retirement accounts, savings accounts, equity in real estate, vehicles, recreation equipment, and assortments among other reserves. Some of the assets were sold for cash while others were used as collateral for a loan. Friends and family - The rational next step after collecting their personal resources was approaching relatives and friends who believed in them and wanted in on their success. Despite close relationship with some individuals, approaches for funding were made professionally and everything put in writing to avoid future discontent among investors in case the restaurant venture proves unsuccessful or the success faces obstacles and they risk losing their investment (Brown 2003). Partners- Using the "strength in numbers" principle, the four owners of Yummy Deli scouted for people with similar ideas and who were interested in teaming up with them to start this venture. Some of those selected had financial resources and equally wanted to be involved in the project whereas others had money but lacked interest in doing the actual work. There were written partnerships that clearly defined respective responsibilities and obligations. Risk Management 1. Coverage for risk associated with Supply-Chain. The beverage and food industry is highly dependent on its contractors, but delivering supplies can have many obstacles. These include adverse weather, infrastructure issues price increases, or harm to a merchant’s location. The loss of just one reliable supplier may result in a loss of proceeds, and may impact on the consistency, service, and quality of a food service supplier. Yummy Deli has taken steps to insure dependent properties with a maximum of $70,000. Since the company depends on some overseas locations, assurances have been made by carriers to give coverage for the same, as they are probably extra prone to supply disruptions than their local counterparts. This insurance limit is frequently checked against a real scenario of supply interruption for a company similar to Yummy Deli. 2. Risk of Equipment Management. All or at least most food based companies are heavily dependent on their equipment, most of which is automated. In the event that a mechanical malfunction occurs, the company often has to shut down and incur a loss of revenue. Insurance on equipment breakdown covers the cost arising from damages caused by operator error, power surges, and mechanical breakdowns. Insurance on business interruption also covers the earnings lost as a result of equipment malfunction. 3. Coverage on Spoilage and Contamination. Power outages and a host of other issues beyond one’s control may lead to contamination of food or costly spoilage, which may lead to expensive damage to the company and loss of revenue. Yummy Deli has enforced spoilage coverage of a maximum of $300,000, $50000 above the suggested amount, with the capacity to increase this amount. Food prices are much higher at specific periods of the year than others; hence the selected carriers have confirmed their willingness to increase their limit during Yummy Deli’s peak period by approximately 28%. 4. Recall Risk and Food Safety Coverage. It is estimated that 48 million diseases in the country each year are the result of food, causing over 128,000 hospitalizations and approximately 3,000 deaths, consistent with information from the Center for Disease Control. The implications of food poisoning from contaminated produce can result in prevalent illness and also death, therefore a coverage of $20 million is suggested (Alonzo 2007). Since it is still in the infant stages of operation, Yummy Deli has put up a cover of $ 18 million, with hopes to increase the amount as sales and revenue increase. This coverage is not only to recompense for lost market allocations and abridged goodwill, but also for protection against lawsuits. In addition, Yummy Deli has enforced a limit of $70,000, with the elasticity to augment limits, which will cover the charge of removing a product from the market. 5. Coverage against Internet and Computer Disruption. More companies are currently enlisting the internet and computer technology to store data such as financial records and inventories. Cybercrime is becoming increasingly common with 46 percent of companies experiencing data breaches. In spite of this, merely one among 10 companies has proper coverage for cyber-liability (Solozhent︠sev 2012). Restaurants and other industry related businesses face higher risk, due to the high number of financial and personal data, which includes bank account and credit card numbers, kept on file. Viruses or computer hackers also have ability to cause considerable damage to any business that result in a physical loss or harm to computer equipment. Given its extensive use of information technology, including the internet, Yummy Deli has acquired business interruption insurance with a limit of $10,000 to cater for lost revenue caused by disruptions in computer functions. As provisions based enterprise, Yummy Deli aims to protect its computer files and equipment, and educate employees about the significance of information security. The restaurant has also enforced the use of data encryption and passwords, while keeping anti-malware and anti-virus protection up to date as a protective measure. Measuring Success The success of the company in terms of the goals will be measured using SMART targets. The abbreviation SMART refers to precise, quantifiable or measurable, achievable, relevant and time-specific goals (Williams 2009). Yummy Deli has focused goals which detail what exactly the company intends to accomplish. The main goal is to get back invested capital of $40 million from the success of its core operations, within the first three years of operation. This goal is quantifiable and can be derived from financial records of the company. The same goal is attainable especially if they are successful in carving a niche within the target market. It is relevant because the main reason for setting up businesses is to earn profit. The company has put a realistic period within which they plan to achieve their goal. Summary and Recommendations With the above business plan, Yummy Deli is poised to become one of the fastest growing restaurants in recent times. Some of the recommendations to help the business become successful include copyrighting the restaurant’s specialties and increasing brand awareness. This will help derail any attempts by rival establishments to imitate Yummy Deli’s products and gain competitive advantage. Diversification of products and services would also shield the company from potential losses. This is especially since demand for meals is subject to influence by different factors such as availability of raw products and also weather changes. Yummy Deli should invent ways of insulating itself from such shocks. References ALONZO, R. S. (2007). The upstart guide to owning and managing a restaurant. New York, Kaplan. BROWN, D. R. (2003). The restaurant manager's handbook: how to set up, operate, and manage a financially successful food service operation. Ocala, FL, Atlantic Pub. Group. OH, H., & PIZAM, A. (2008). Handbook of hospitality marketing management. Oxford, Butterworth-Heinemann. PINSON, L. (2008). Anatomy of a business plan the step-by-step guide to building your business and securing your company's future. Tustin, CA, Out of Your Mind and Into the Marketplace. http://site.ebrary.com/id/10229749. RAI, U., & RAI, S. M. (2010). Business communication. Mumbai, Himalaya Pub. House. http://site.ebrary.com/id/10415799. SOLOZHENT︠S︡EV, E. D. (2012). Risk management technologies: with logic and probabilistic models. Dordrecht, Springer. WALKER, J. R. (2013). The restaurant: from concept to operation. WILLIAMS, C. (2009). Principles of management. Mason, OH, South-Western Cengage Learning. Read More