Business Plan For UK Based Restaurant Burger And Shake Essay.

The business name and the description of the undertaking

Describe about the Report for Business Plan for UK Based Restaurant Burger and Shake.

This report is dedicated to the business plan of a UK based restaurant Burger and Shake (B&S). It is a restaurant, which will be established in Liverpool. The USP of this particular restaurant will be identified as the halal grilled burgers and shakes of different popular flavors. In addition to this, the restaurant will also offer a large verity in its menu. Along with the previously stated offerings, the restaurant will also offer meat, cheese, ketchup and mustard. In the verity of shakes, a customer will be free to order shakes those contain fruit, milk and chocolates. As opined by Said, S. (2013), Britain can be identified as one of the pilgrimages of the fast food buyers. Hence, the organizations like Burger and Shake (B&S) will obtain distinctive popularity in UK.

Halal burger: In the Islamic law, foods those are contained with the blood or any organic part of pig are strictly prohibited for the Muslims. Hence, the halal bu8rgers are the burgers those are devoid of the flash of pig, whereas, it is made of chicken or other non -vegetarian items. These burgers can also contain cheese, mustard ketchup etc.  

This complete business plan is divided into six major parts. Each of them will discuss separate issues those are important and relevant to the set up of the business. The first part will discuss the mission, management, objective and the proposed structure of the projected undertaking. In the next part, the product has been described. A complete analysis of the product features and product lifecycle will be discussed. Then, an analysis will be done on the market as well as the industry. In the following part the promotional strategy, the pricing plan and the proposed market share will be projected. Latter, the process of the operation, the staffing plan, quality control etc. will be discussed. Last but not the least, the business forecast will be discussed elaborately within the span of this business plan.

A mission statement is crucial for any business initiative. As opined by Bruner (2004), it defines the focal point of the firm and its ultimate goal in the course of its operation. It is important for a firm to obtain a strategically set mission to provide the organization and the initiators a purposeful reason to run its activities. As opined by Ahlstrom and Bruton (2010), it is a simple statement, which talks about the central purpose of running this business.

The undertaking and its administration

As opined by Strydon (2007), a mission statement is unique for every business initiative as it talks about the fundamental cause of operating that business.  With the identification of the unique customer base and product offering, it states what the business is all about.

In the context of B&S, the mission of this organization is to serve the supreme quality halal burger and shake to the Muslim as well as the British guests in an affordable price in UK. The mission also includes expansion of the business in the big cities of Britain.

Business objectives are crucial to lay down a pragmatic plan for the business operation. As discussed by Strydon (2007), these objectives have to be SMART (specific, measurable, attainable, realistic and time bound). Moreover, such objectives can be multiple in number as well as short and long-term. The short-term objectives have to be distinct.  In the context of B&S, the short-term objects of the business can be incurring the money back to the owners and covering the permanent charges. On the other hand, the long-term objectives of the company can be identified as attaining growth and opening new stores in the big cities of UK etc.

As discussed by Schenck (2005), it is important for the business initiative to strategically set the activities which would be helpful in attaining the short as well as the long-term goals of the company.  In the context of Burger and Shake (B&S), it can be said that the restaurant primarily need to focus on the promotional activities to attain the goal for profit increase. The restaurant can also use the social media in this regard. However, in attaining this goal of promotion, the restaurant need to focus on the food quality served in the restaurant.  It is the basic step for retaining the customers for the long run. In addition to this, the restaurant need to collect information about the immediate competitors of the restaurant to gain competitive advantage by utilizing their short falls. The restaurant an also follow the strategy of discounts and special promotion for to collect customer loyalty. Moreover, the restaurant should follow the unique tactic of offering a small portion of the food and beverage of the restaurant to the customers before their order placing.

As opined by Sidek, Meriam and Mahazir (2016), inherent entrepreneurial skill and practical experience of business management plays a crucial role in the success of a business initiative. The author has both the inherent skill as well as business management experience. This particular business plan suggests a person who has an academic skill in the business management should execute the management of the restaurant. The author holds this credibility too. The author has a BA degree in business amounting from Alagiers University. Moreover, he has a family owned business. In addition, the Author also holds a yellow belt from lean six sigma model.  As opined by Chemelynski (2004), these personal skills will help the author to successfully run the restaurant.

Objectives (the short and long-term goals)

As opined by Barth and Hayes (2006), it is crucial for a business initiative to choose the best suited business structure for a company as the smooth running of a company typically depends on the structure of that company. According to the structure of that company, the government sets its regulation over it. Hence, the importance of the right legal structure cannot be ignored as the i8ssues like employee security etc. largely depend it.  However, in the context of B&S, the restaurant will follow the structure of sole trading.  It will be the cheapest as well as most suitable structure for the company.

As opined by Nelson and Economy (2011), all of the legal structures of a business initiative possess few advantages and disadvantages in the same time.  As discussed by Barth and Hayes (2006), selection of the appropriate legal structure helps an organization in shielding the staffs involved in the business and assists the organisation to achieve stability and set pragmatic goals. B&S is going to opt for the legal structure of “sole trader.” A single parson will monitor it. Here, some of the pragmatic legal structures will be discussed with their positive and negative sides. 

The name of the structure  and its definition:	The advantages of the structure	The disadvantages of the structure
Partnership: In this particular structure, two or more organizations agree upon sharing of skill, strategy, technology, expertise or simply capital for a certain period. Here, the partners are agreed to share the profit portion of the company.	Business risk can be shared among the partners. In most of the countries, partnership business gets a few governmental advantages. The partners can provide support to each other and thus successfully run the business.	It sometimes becomes too difficult to come to a consensus. When the partners decide to break the partnership, the legal and the operational things become much hard to handle. In partnership, one party becomes automatically liable for the decision or action of the other.
Corporation:  Here, the company exists as a legal entity that is completely separate from the owners.	The corporation holds a better business image among all the other legal structures.   The corporations can obtain a tax benefit depending on the disbursement of the profit and the owner’s sources of fund. It is easy to sell. The corporations are entitled to bonds and stocks. They can raise fund by selling such stocks and bonds in the market.	The corporations involve many parties and governmental regulations. Hence, it engages a lot of paperwork.  It is not easy to start, as it needs a huge amount of money. In the case of selling, the majority of the shareholders have t6o come to a consensus. It is not always easy to obtain a tax benefit for a corporation.
Sole trader: In this legal structure, only one party holds the sole ownership of the establishment. Most of the small companies opt for sole trading structure.	It is easy to handle, as no partners has to come to an agreement for any decision.  It is easy to start and stop the business operation in so0le trading. The owner himself can incur the whole profit. It is inexpensive to operate.	As most of the small enterprises use this structure, it is not a prestigious model of business. The business loses its future with the owner. Collecting fund for the business often becomes hard in this particular business structure.

Product or service description:

The Burger and Shake (B&S) is a restaurant, which is dedicated to serve its guests with the high quality foods and beverages. This business plan describes that the main offering of the restaurant is burgers. They sell burgers as a meal too. Along with it Burger and Shake (B&S) also sells shakes of various flavors like milk with fruits, smoothies, milk with chocolates etc. It has been found in the surveys that the consumers love to pair their burgers with ketchup and chili sauces (Lut 2014).  However, the idea has been taken from the restaurant named Archie’s . it is a chain of restaurants with 5 distinct setups in UK; two in Manchester, one in Liverpool and the remaining are in Leeds and Sheffield. The restaurant provides this too. The restaurant offers a number of diverse flavored and tested food and beverages, which have exciting names.

As discussed by Abrams (2003), market readiness of a company is difficult to measure. The idea of market readiness involves a wide range of interrelated issues those influence the customer satisfaction. As mentioned by Lück, Maher and Stewart, (2010), it includes the product or services, the business management policies and decisions that influence the consumer directly or indirectly.  

The outline of the company activities

The operation of Burger and Shake (B&S) will start in 2017 after the graduation of the author. It will take time to arrange the complete set up of the company. The author will need to arrange the location, license, equipments of the restaurant.

As described by Robertson (2004), the feature and customer benefit of a product typically influence the customer satisfaction level. Many researchers have found that customers mostly opt for the products, which satisfy their need.

The proposed product of Burger and Shake (B&S) and the customer benefit:

	Meat	Shakes	Halal	Take out
Advantage	B&S’s fresh delivery of meat will provide a good amount of protein and it will be helpful in building muscle.	It  is a refreshing drink	The food will contain no blood of pig and will not violate the Islamic law in any means.	For the operation or administration, the customer will not be charged.
Customers benefits	The amino acids contained in the meat are necessary for the health.  As mentioned by Lee (2014), it is helpful for the repair and renewal of general health.	As opined by Christensen (2014), such drinks improve metabolic activity. It also provides nutrients and energizes too.	The food of this restaurant will be safe and healthy for the Muslins and others in Britain.	The offering of then restaurant will be the best food options for the people who are travelling do not have much time to spend cooking.

The product speciality of B&S will be different for that of its immediate competitors. As mentioned in one of the recent surveys done on this same topic, Livepool can be a great place or location for the success of the restaurant. It will ensure better response from the potential customers.

Zeffran, Takeaway Park, GR8 Pizza, Zains etc. cam be  identified as some of the important competitor of  B&S.

(Source: Hungryhouse 2016)

On the other hand, the followings must be evaluated as some of the significant competitors’ of B&S.

Name of the Competitors	Strength	Weakness	Price	Prime promotional ways	The  B&S strategy
Archie’s	-Testy halal burger and shakes are its USP -It provides a great ambience to the customers. -The customers can eat the food there in the restaurant or can take it away. -The restaurant is located near the metro station and thus can have a great customer response.	-Price is typically high. The restaurant takes too much time to serve its customers.	-It charges £5.99 for a beef burger and £3.49 for a Fruit shake.	-The company uses the website and calls the potential customers.	-B&S will offer the food at much lesser price. -The time for preparing the food will be 4 min. 5 sec. Hence, the serving time will also be lesser. -B&S will employ specialist chef. - B&S will follow the strategy of student discount and meal deal for its customers to earn customer loyalty.
SBlended milkshakes Located in Paradise street Liverpool one L1 8JF	-The location of the establishment is great as it is located opposite to Odeon. - the company sells various type and flavoured shakes.	- Price is high. -The company sells shakes only.	It charges £4 for one Fruit shake.	The promotional activities are same as Archie’s.	B&S is going to offer the customers both the foods and the shakes. It will be affordable and tasty.

As opined by Jain (2009), product life cycle is one of the major conceptual facts in marketing management. As discussed by Jain and Jain(2014), a product of a company experience many stages regarding its market demand. As mentioned by Philip Kotler, “the product life cycle is an attempt to recognize the diverse stages in the sales of the product.  The sales pass through four distinct stages. These are known as introduction, growth, maturity and decline.’’ These stages determine the sales volumes, market share and profitability of those products. Hence, it is important for a company to identify the life cycle of its products.

The products or the serviced of B&S will be introduced in the market in 2017. The first two years it will be the introduction phase. In the next three years, it will gain growth by earning reputation and customer return. In the following two years, the company service will enjoy the maturity stage. Then, in the sixth to seventh year, the restaurant will enter the decline stage. Here, the owner can establish new outlets to eliminate the low profit issues.

(Source: Developed by the author)

The primary and secondary research:

As discussed by Gratton and Jones (2010), there are two distinctive research methods: primary and secondary.  In the primary research method, the researcher uses the primary data collected directly from the primary source. Here, the data are collected solely with the purpose of completing the research. On the other hand, as opined by Gratton and Jones (2010), the secondary research involves the secondary data. Any other researcher collects these data and they are being used for this study. Here, the researcher uses the existing data.

The management team

This business plan is being made according to the preference of the respondents of the previously done survey. Liverpool has been selected as the location of the proposed establishment. Menu flexibility will be provided as many of the customers may have food preferences. Moreover, the name has also been strategically selected to attract the attention of the customers.

Here, the demographic segmentation of the customers of Burger and Shake will be discussed:

Age: as found in the previously done survey, most of the respondents belong to the age group f 16 to 25 are the regular consumers of street foods like burgers. Hence, the restaurant will focus on this age group. However, as discussed by Shaw (2011), the incessantly growing rate of the world population as well as the population of Britain, will be helpful for the companies like B&S to expand its consumer base. As mentioned by Stevens, Loudon and Mockle (2013), by 2033, UK will attain the 71.6 million-population margin. It will surely be helpful for the food and associated industry in UK.

Religion: as discussed by the, the contribution of the halal market in UK is more than 700 million. Moreover, the Muslim population is considerably high in UK. Hence, it can be prospected that a significant profit margin can be obtained from this establishment.

Income: The moderate inflation rate of UK will be helpful in increasing the level of the disposable income of the citizens of Britain (Shopping a la Cart 1987). Until 2015, the average income in Britain was around £500 per family.  It is more likely that the low or moderate-income group people will be the major customer of the establishment (Global salary Forecast 2016).

The macro environmental factors i.e. political, economic, social, technological and legal are important factor those influence the business operation and the profitability of the company. The growing Muslim population will be helpful for the business growth of B&S. Moreover, the company is going to serve grilled meat, which is less caloric. Hence, the macro environment (short term) will be helpful for B&S. On the other hand, the economic climate can limit the level of expenditure of the customers. This may harm the fast food business of the similar companies.

Macro market factors	Explanation
Political	The UK government is passing strict laws regarding healthy eating habit. These laws can influence the operation and profitability of B&S.
Economic	The inflation, economic growth, interest rate etc. in UK can affect the business of the B&S. The growing market of UK is being helpful for the food and beverage industry. In the time of inflation, the restaurants like B&S can obtain good profit margin because of their low pricing strategy.
Social	The busy social life of UK is being helpful for the growth of the fast food industry in UK. However, the growing consciousness against the issue of obesity is turning down the prosperity of the fast food industry in UK.
Technological	Improving the cooking amenities is important for the companies in this sector. Moreover, the usage of computerised ordering and billing technique is being helpful for the companies like B&S.
Environmental	The companies like KFC, Burger King etc. have faced troubles regarding the animal rights issues. The B&S needs to be careful about that. As the level of petroleum is decreasing, the price is continuously increasing. The company needs to focus on that.
Legal	The B&S needs to focus on the food quality as the adulteration is punishable in Britain. Moreover, the nation is passing laws regarding healthy eating.

As opined by (Bard 2008), Porter’s five forces analysis model assists an entrepreneur to establish the competitive force and the status of the market. The Porter’s five forces analysis on the market of burgers has also been done.

Advantages and disadvantages of the options and describe and explain your choice of legal structure

Suppliers and costs:

The B&S can get Halal Monitoring Committee (HMC) and Adams as its soul halal meat suppliers.

Suppliers	Activities
Halal Monitoring Committee	It is a non-profit making organization.  The food is certified as the genuine Halal food. It charges less than 2p per chicken or 2p per kilo for red meat (HMC 2012).
Adams	It is a food and beverage supplier in Liverpool. The price differs in different circumstances (Adams 2016).

As discussed by Jain and Jain (2014), the pricing policy depends on the market situation. B&S will follow the strategy of psychological pricing. Those customers who are eager to pay better will be approached straight to get recommendations for uplifting sales and making it more profitable.

According to the result derived from the previously done survey,  ( where 45% of the respondents voted for halal grilled burger at £4.90 and 43% voted for meal at £5.99) the restaurant will charge £4.90 for one halal grilled burger and £5.99 for meal. The restaurant will claim £ 3.95 for the fruit shake.

The company will follow the odd- even pricing strategy. As discussed by Jain and Jain (2014), it is a tactic of pricing at with an odd number.  It motivates the customers not to bargain (Gitman and McDaniel 2007). On the other hand as opined by Sutherland and Canwell (2008), an even number serves the purpose of Psychological pricing.

A promotional plan is needed to make the people aware of the company existence and boost public responsiveness of an enterprise or its offerings (Formica and Littlefield 2000). It is a amalgamation of promotional tactics to attain the marketing objectives and increase the sales.

As the budget of B&S is limited, they will mis various promotional strategies to attain the market objectives.

Method of promotion	Reason
website	The website will cost £99 (Expert Market 2007). As, the owner will develop the site by himself it will cost nothing to him. The website will provide the performance report and display how the restaurant is engaging the customers (Kaser 2013).
Social networking	A Facebook page and a twitter account will be managed. The information regarding the restaurants will be shared through these social media sites. Photos will also be shared. The number of the followers will denote the success level.
Brochure	Almost 3000 brochures will be circulated.

Choosing the right location is important for the success of any business initiative (Hsu 2012). According to the result of the survey 45%  respondents said that they don’t know any restaurant in Liverpool that serves Halal Burgers and Shakes.  20% individuals know one. 7% know more than 5. Hence, in Liverpool Richmond Street, the B&S outlet will be opened.  It will be helpful in getting a quick distribution channel and effective feedback.

Advantages of the location	Disadvantages
It will be the only halal restaurant in the near location.  There are many transport stoppage in the locality. It is a crowded location. Transportation is very much advanced in this location.	It is an expensive location.

As the population of Britain is considerably increasing, it can be hoped that the food market will incur the due advantage. As expected by Michel (2014), the UK restaurant market will reach £52 billion by 2017. On the other hand, as mentioned in Fortune (2016), there are more than six million consumers of Halal in Britain. It will provide the annual cost of £2.8 billion (Fortune 2016). Hence, the market sales can reach the stage of worth £ 250844 by year 2017.

Based on the porter’s five forces analysis one from other industries is profitable, but this doesn’t make the business unprofitable as alterations and strategic advantage policy will be used (Formica and Littlefield, 2000), in relation to the external factors that may pose an influence on the B&S profitable strategy, the PESTEL analysis was done and it has been found that the B&S idea of being a profitable can be achieved as the industry appears attractive to deal in regardless of the recent financial climate (see appendix).

Advantages and disadvantages of some legal structure and explanation of the author’s choice

There are a number of factors those can influence the operation of a business (Formica and Littlefield 2000). A SOWT analysis of the company can be helpful indentifying the strong and weak points of a company and thus taking necessary steps.

Strengths	Weaknesses
·         The food will be testy and safe. ·         The service quality will be remarkable. ·         The strategy of students’ discount will be available. ·         The price will be comparatively low than the competitors.	·         It is a new company. ·         The product or service offerings are not unique. ·         Limited fund
Opportunities	Threats
The demand of fast food is continuously growing. The offerings will be healthy and fulfil the customers’ need.	The competitors are strong and they are offering the same service.

If the 4 Ps model of B&S can be discussed the following can be  found:

Product: Halal grilled burger and shakes.

Place: Liverpool Richmond Street

Price: Halal grilled burger for £4.90 and meal for £5.99. Fruit shake for £3.95.

Promotion- Student discount

Staffing:

The company will need 3 employees. One will be a sales person. He will be in charge to manage the restaurant while the owner will be absent.  He should have the experience of 3 years of being a cashier.  Other qualities he will have to possess are the ability to pay attention to the clients etc.

Another important employee in the restaurant will be a professional chef to prepare food.  He has to have 7 years’ experience in the same field. He has to have the ability to work quickly and properly.

The last member will prepare the shakes and help the chef. He has to have 2years experience in the same field.

Employee	Salary
Cashier	£10.000 (Pay Scale 2016)
Chef	£16,000 (Pay Scale 2016)
Sous Chef	£14,000 (Pay Scale 2016)

The six-sigma quality management process will be followed in running the business. It will help the owner to operate the endeavor without uneconomical proceedings. The business will be operated in cash-to-cash basis, as the cost of burger and shake are low.  The usage of credit card will charge extra amount to the management.

The process of operation will be as followed:

Source: (created by the author)

Before opening, the owner has to communicate with the local authority, which will help the author in registering the company. The author will also need help form the related authority regarding the business, planning and organizing the waste and recycling. The following things have to be specially concentrated:

PRS: as described by Gilbert and Boothby (2014) PRS is a group of songwriters, composers and music publishers.  They are license the use of their members’ musical compositions and lyrics. It is important for music and restaurant business.

Value Added Tax (VAT): according to Food Standards Agency (2013) the registration verge is at £79,000 a year. However, if the business has a revenue above the registration amount, it will surely be changed. The business has to be VAT registered. However, The B&S is under the stated figure. Hence, it is not important for the company to be VAT enrolled.

The product or services

General Food Law Registration: the company will be registered under General Food Regulation 2004 and it will comply the General Food Law Registration. According to Food Standards Agency (2013), the served foods of such registered companies are safe and it will not be harmful to people’s health.

Insurance: the owner will pay around £500.00 to cover open risk and manager’s obligation.  According to FCA (2016), it has be paid by the owner to reduce the business risk.

Health and safety: the employer will ensure health and safety services for the employees. According to the health and safety Executive’s danger evaluation necessities the employer will take the necessary steps.

Income tax: as the owner will manage the ash flow, he himself will be responsible for all the necessary deductions.

Sales forecast: as opined by Gallagher and Andrew (2007), sales forecast approximates the sales in financial or physical units, for a particular period under a projected business plan or program. It helps to predict the cash flow of the organization. As opined by Hameurlain, Küng and Wagner (2013), thus, it helps in keeping in mind amount of stock to hold and number of workers to employ. In the context of Burger and Shakes, it can be predicted that the sales of the initial year will be weak in comparison to the second year.

It estimates the amount needed by the company to reach the set objectives. Both the positive and negative ash flow can be experienced.

As described by Tulsian (2007), it talks about the the financial performance of a business undertaking during an accounting period. However, in the context of Burger and Shakes, within the first two years of starting, high profit is expected.

Burger and Shakes needs to earn a large amount of profit in the years after its establishment. The economic condition of a company generally depicted in the balance sheet (Tulsian 2007). It can be predicted that B&S will collect a high profit margin within the first two years of its opening.

Break even is the milestone where the business sets off to make a profit. Here, the sales revenue incurs the costs of the company (fixed and variable). To break even the Brand’s profit B& S will have to make a monthly deal of 18985.815 in the first year. Thereafter, for the second year the breakeven value can be £180699.9999.

The company is predicted to perform in the following way in the first two years of its operation.

Sales: in the first year the sales is predicted to be low, particularly in the initial 5 months of its operation. In the second year, an approximate 40% rise on sales is being predicted.

Loans: No official loan will be taken. The author will collect the money from the family members.

Capital: around £60.000 can be predicted as the capital of the business initiative.

Capital equipment: it can be predicted that approximately £1,500 will cost for the capital equipment.

It can be predicted that around £30,000 will be collected in the first year and approximately £50,000 can be collected in the second year.

Direct wages: it can be predicted that in the first year, the management will have to pay £20,000. However, in the subsequent years, the cost will be increased. It will be helpful for both the management and the employees.

Rent: the rent of the restaurant is £80.000. It is a bit expensive indeed. However, as it is located in Richmond Street, the collection will surely be more than the expenditure.  Moreover, the cost of the rent will be same in the next year too.

Bills: the bills for power connection, water etc. will be provided by the owner himself in every 3 months. However, the rate of such bills depends on the inflation rate, legal issues etc. hence, if there no such changes occur, the amount payable for these bills will be same.

Insurance: £570.00 will paid by the owner as the insurance. It can be predicted it will remain the same in the next year.

Advertising: £700 will cost in the first year for the promotional purpose. The owner is thinking to raise the sales volume. Hence, it an easily be predicted that the promotional cost will rise too.

Telephone cost: the restaurant will use a landline connection for the purpose of its business operation. It is being predicted to cost £80 every month. Moreover, it is being anticipated to remain the same.

Professional fees: the owner himself will develop the website. Hence, it will cost him nothing for the website development and management.

Motor/ travel costs: the owner lives 10 min walk away from the proposed site of the restaurant. Hence, it will cost him nothing for coming to the restaurant. Moreover, in the case of emergency, he has a ar.

Sundries: in can be predicted that approximately £180 will be needed for the leaning and packaging purpose. In the case of packaging it can be said, as the sales will increase, the packaging cost will go up. On the other hand, it can be predicted that, some of the leaning materials can be preserved for the next year. Therefore, not much amount of money will be needed to pay in the next year.

Sensitivity analysis an be defined as a procedure used to establish how diverse values of an autonomous variable will influence a particular reliant variable under a set of assumptions. Here, the Sensitivity analysis of B&S has been described below:

Prior to the establishment of the business, the owner will collect the required money from his family. He is going to borrow £100.000 from his brother. It is easy to borrow from the family. It involves no paperwork and it easy to return.

This business plan is suggesting that it will be profitable undertaking as the market is continuously growing. The financial data and forecasts are predicting a healthy profit that  will enable the business to thrive.

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