The business which is proposed in this plan is a fast food restaurant business which will be opening three stores in USA and the preferred location for opening such a restaurant is New York as per the plan of the owners. The restaurant which is to be set up will be specializing in pizza, pasta which is a celebrated Italian food (Min & Min, 2013). The restaurant is intended to provide other variety food as well as noodles, breakfast combo meals and beverages. In addition to this, the restaurant will also provide for party services which includes catering, party planning, decorations for birthday parties, kitty parties, college graduating celebration.
As per the plan of the owners, the business will be established in a company form of business which will be private limited and all the necessary contributions which are to be made for the start-up costs and day to day operations of the business will be provided by the owners of the business (Österle, 2013). The various other legal expenses which to be incurred before the business starts is legal costs of registration and also acquiring the license of the business.
The mission of the company as per the plan of the owners will be to provide best quality of foods and services to the customers at a reasonable price. As there are a lot of competitors the management plans to offer free beverages as per the option of the customer with every meal combo taken by the customers (I. Williams Jr L. Morrell & V. Mullane, 2014). The mission statement of the company will also include the policy that the restaurant will treat every customer respectfully and on a priority basis so as to satisfy their every need.
Goals and Objectives
The goal of the business will be to create a brand name for the business with the service and quality of food provided. The satisfaction level of the customers will be considered an important aspect of the policies of the business (Awadh & Alyahya, 2013). The objectives of the business are specified below in details:
- To provide best quality of food and services to the customers.
- To ensure that all the needs, feedbacks and complaints are adhered to and ensure the customers are satisfied with the services provide by the business.
As per the plan of the owners, all the major decision of the restaurants will be taken by the owners and the day to day management of the restaurants will be on the managers of the respective restaurants. The staff will be comprising of cooks, support staffs, waiters, cleaners. Every restaurant will be having a separate division for party planners which will be providing services such as organizing small parties such as birthday parties and similar other kinds of parties.
As per the plan of the owners, the basic product which the business will providing will be pizza, pasta, ginger breads, French fries and a variety of beverages. The pizzas will be the main attraction as it is very popular food among the teenagers and even adults. The pizzas of the restaurants will be coming in three sizes which are small, medium and large. The customer will be allowed to choose the toppings of the pizzas and also the preference of the crust which can be thin or regular. The variety of pizzas options and innovative combinations will be attracting a lot of customers as per the vision of the owners.
Need for the Product
The restaurant making pizzas as their main attraction is due to the fact that the owners are of the view that other restaurant which offers pizzas do no have the variety and even if they do such are quite costly. In addition to this, pizzas are considered to be most preferred snacks, after burgers and therefore the market is suitable. The teenagers love their pizzas and prefer them as snacks and even as dinner in some cases.
Uniqueness and Competitive Advantage of the Product
The main product of the restaurant will be having a large variety of ranges which can also come with different toppings as per the preference of the customers. In addition to this the different innovative flavors will be making the pizzas of the restaurant unique. In addition to this the restaurant have attractive combo meal offers which comprises of a pizza, fries, coke floats depending on the combo meal type (West, Ford & Ibrahim, 2015). The restaurant offers free beverages with combo meals as per the choice of the customers. This will be an effective strategy as this will surely attract customers and help the business to gain a competitive advantage in face of tough competition from other restaurants. In addition to this, the party planning activities will be adding to the revenues of the business and also promoting the food items of the business as which will help the restaurant to survive tough competition (Dirisu, Iyiola & Ibidunni, 2013).
Barriers to Entry
The fast food industry is dominated by established brands such as McDonalds, Subway, Dominos, Burger Kings and similar other restaurant chains. Therefore, the owners expect that entering into such a market will not be easy (Geroski & Jacquemin, 2013). The barriers which the business might face are given below:
- Excessive Competition in the market leading to low profitability.
- Lack of availability of resources to finance and start a business.
- Getting a proper location to start the business.
The barriers which are mentioned above can be overcome by the restaurant by developing a plan to achieve competitive advantage as in case of Parties and Pizzas will be the variety of pizzas on offer (Kappes & Merkert, 2013). In addition to this, the business will also be providing party management services which the owners reckon will provide enough revenues for the business to survive through the initial period. As for the resources to finance the business will be provided by the owners themselves and also they might take a loan from banks as the case may arise.
As per the market analysis of Restaurant chains and fast food business, the owners anticipate that even though the market has tough competition and highly competitive, there is still opportunity for establishing a business and also attaining growth in the same. The owners of the business also recognize that the business will be competing with brands like McDonalds, Dominos, Burger King, Subway which are established players in the market and the products of such companies are popular among the customers. The owners want to establish the same place for the restaurant in the market (Kwok & Yu, 2013). There is potential for growth once the business is established in the market. The owners are aware of the fact that the currently the fast food industry accounts for $198.9 billion in US market. This is forecasted to further increase to about $ 223 billion by 2020. Therefore, there is wide scope of growth in US market (Chen & Elston, 2013).
The target market of the business will be teenagers as they are the customers who are mostly attracted to fast food items like pizza and burgers. In addition to this, pizzas are preferred in US for any occasions be it family union or some celebrations or as a casual snack. Therefore, the owners of the restaurant expect that maximum part of the revenue will be generated from the customers falling in the age group of 14- 24 years of age (Tanner & Raymond, 2015).
The owners of the business also recognize that the business will be competing with brands like McDonalds, Dominos, Burger King, Subway which are established players in the market. The main advantage such restaurant have is that they are already established in the business and already the products are well recognized in the market (Kirzner, 2015). Moreover, these restaurant chains have already developed a brand and brand loyalty among the people.
The marketing plan for the restaurant is one of the areas which the owners plans to invest effectively as such are the activities which will be promoting the products of the company (Westwood, 2016). The owners plan to use the marketing mix concepts to clearly outline the marketing activities of the business.
- Product: The product of the company comprises of a variety of pizzas and pasta which the business can offer to its customers. The products of the business will also be consisting of various combo meals and a variety of beverages which will be on offer. The business will be promoting the product by offering the best quality of the food at a reasonable price. Such an activity also causes promotion of products and attracts potential customers into the restaurant(Huang & Sarigöllü, 2014). The products will be freshly prepared in each of the store and no leftovers will be kept for use. This approach of the business will ensure the quality and once quality is maintained, customers are naturally attracted
- Price:The price as per the owners will be set by analyzing the costs which the business incurs in the preparation of pizzas and other food items and the prices which are charged by rival restaurants like dominos or McDonalds are also to be analyzed (Hanssens et al., 2014). The prices which is set by the business will be lower than the prices charged by the competitors even though the business is earning lower profits. The aim of the business will be to establish itself in the market. The aim of the business is to provide best quality of products at a reasonable price.
- Promotion:The promotional activities of the business will be comprising of television advertisement, social media advertisements and other forms of advertisement. Parties and Pizzas will be over the social media site for advertisement purpose and the company will also be publishing the menu of the Parties and Pizzas in social media to create a buzz among the customers and teenage generation (Khan, 2014). Besides this, the business also has party services which will also be promoting the products of the business as per the expectation of the owners of Parties and Pizzas.
- Place:The place of operation which the owners wants to open the restaurant is New York as the city has most population and the people in New York appreciate good quality of food.
Production Method and Control
The production or preparing of all food items of the restaurant will be done in the restaurant itself. As the main product of the company is pizza which will not be taking much time in preparation wise therefore it will be prepared as soon as the order for the pizza is laced by the customer. This will ensure the freshness and quality of the product and also will be able to attract customers effectively (Appelroth, 2015). As per the plan of the owners the control of the restaurant will be handled by the managers of the respective restaurants. The owners also plan to visit each restaurant for surprise examination of the working environment.
As per the plan of the management, the location of the restaurant will be preferably in New York. The owners prefer a main road location which has access to local supermarket within 10 mins or so and also is populated for the sales generation activities of the restaurant. In addition to this, the restaurant location will be such that it is accessible by potential customers.
Permits and Licensing
The restaurant before it starts its operation needs to acquire licensing from the local authorities (Kaushik, 2013). The license which is received by the restaurant will be the proof that the restaurant can operate in that particular location. In addition to the company also needs to acquire licensing which certifies that the food of the company is appropriate and not affecting the health of any customer of the restaurant.
Risk Management and Personnel
The major risks which Parties and Pizzas will be facing is from the competitors of the business, the competitors pricing and other policies will be affecting the restaurant business. As per the expectation of the owners, the risks which the business faces can be handled effectively if proper planning is involved and a competitive advantage is developed for the restaurant. The owners anticipate that the variety of pizzas and the toppings which the restaurant has on offer, can create a competitive advantage for the business and help in reduction of risks from competitors (McNeil, Frey & Embrechts, 2015). Then there is the risk of wastage of resources which can be reduced by effective inventory control which needs to be supervised by the managers of the restaurant.
The personnel of the restaurant which are to be recruited are chefs, support staffs, cleaners, party planners, managers. The managers will be responsible for controlling the activities and supervision of the restaurant.
Supply chain Credit Policies
The supply chain refers to the sources through which the business will be getting raw materials such as vegetable, meat and other essential products. The owners plan to purchase stocks in bulk and store the same in the restaurants. The inventory of stocks will be under the control of the managers and he will be responsible for supervising the stock to ensure that there is no wastage. The restaurant will be allowing credit services for party hiring only. Where a party is to planned the food sale can be provided on a credit basis as per plans of the owners of Parties and Pizzas.
The management of accounting records will be handled by the accountant of the business and will be supervise and review by the owners of the company. Th restaurant consolidates the statements prepared by all three restaurants and plans to present a consolidated statement which will display the performance of the entire organization.
The sales forecast for a period of three year is given above which shows that the business can anticipate a net cash flow of 195950. The assumptions which are made by the management of the company is that the sales of the business will be increasing at a 15% rate in 2019 whereas the sales will further increase by 120% in 2020. The owners expect that the business will be attaining growth in the coming years. Similarly, the costs of the business will also be increasing in in coming years due to inflation
Profit and Loss Statement
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