CAFE TRIN: A New Restaurant Business Plan For Sydney

Company Description

Restaurant business is growing rapidly in Sydney due to reasonable demand of customers. This report outlines on a new business agenda, which can be implemented in the country to gain competitive advantages. In this regard, to make understanding about different concepts of a new business, “CAFE TRIN” restaurant is proposed as a new business, which will offer different food and bakery services for the customers.

In the competitive market, planning is an essential process to start a business. The proposed business plan is to find out the alternatives for a restaurant. This business plan will be helpful in establishing a new restaurant successfully in Sydney, Australia. The name of the proposed business will be “CAFE TRIN”, where the customer will get qualitative food, tea, coffee and fast-food products. Moreover, the business will also provide different products and services such as fresh apple cake, seafood burgers, hot crab sandwiches, salmon rolls, sourdough bread, steak sandwich and many more. This restaurant will also provide family services to its customers. In this regard, the mission of the business is to offer better services and tasteful food for the customers. Moreover, the proposed restaurant will also provide home services to its customers that will be based on consumer demand through online site and calling. The promoters of the company will solicit the investors to invest money in this business at the initial stage and increase the financial position to establish the business at appropriate place in the region.

The aim of this business is to provide excellent quality of food products in the food and bakery industry for the customers.

Following are objectives of this business that would be achieved through the above business aims:

• To provide diverse menu of the food products for the customers
• To provide luxury, convenient and comfortable dining experience to the customers that will be different from its competitors
• To keep the costs lower to run a profitable operation at lower margin
• To achieve the profitability by the end of 1^styear of the operations

In this plan, there may be different internal and external factors that may affect the business objectives (Helms et al., 2011). These factors may be discovered through the SWOT analysis, which are as below:

The target market of the business is crowd area of the selected region, which is easily accessible for the customers and where the individuals visited regularly. The business has many opportunities in this industry because the market size of the industry is $20bn, which is growing continuously with growth rate of 5.6% (IBIS world, 2017). In this way, the planned business can get good market in the restaurant industry. In the year 2016, it is observed that there are full-service restaurants, which are presenting slightly stronger current value growth. The restaurants have benefited from a wave of commercial development and property in Sydney, which also involved several food services offerings and new food areas in the country. There the market trend of restaurant sector is growing continuously and has positive market trend.

Long Term Aim of Business

In Australia, there are many restaurants that have competition with the proposed business in great manner. In this way, Hog’s Breath Café Pty is constant with full restaurant services in 2016. This restaurant is operating its services with a 1% value share and has 26% share of chained full restaurant service. The growth of the company was supported by introducing new outlets in the country, as well as new menu options including breakfast, takeaway menu and a number of energetic meals such as wraps and salads (Euromonitor International, 2017). Therefore, the competitive firms have good market profile with attractive services in the restaurant industry.

The proposed business has many competitive advantages, which will attract the potential customers. In this regard, the there will be unique products with attractive price in comparison to its competitors that will attract the customer to buy the products of “CAFE TRIN” restaurant. The prices will be lower with quality products, which will be affordable for each customer. Furthermore, in the proposed business plan new technologies will be implemented to save the customer’s time and make effective the services. In this concern, the management of the restaurant will use more advanced forms of payment for those customer who use cashless transactions. The customers will make use their credit card, debit card or any other form for the payment of bought products or services. Moreover, the proposed business will be entirely automated to improve the pace and quality of the services. Apart from this, the automated ordering system is also included in this business plan that will trigger some mechanical processes to start prep effort.

The primary aim of this restaurant is to provide quality products to its customers. In this regard, the management planned to implement modern technology at each stage of the operation that will lead to improve comfortability for the customers and save time and money of the customers. Moreover, in the business plan the management will focus on market needs from beginning to satisfy the needs of the customers and make efforts to provide healthy products for the customers. The use of modern technology and automation will produce the products in less time with quality. In other words, the improved technology will reduce downtime of the customers in restaurant. Therefore, the products and services of the proposed business will be capable to save time and money both customers and itself. In this business, the business promoters make efforts to maximize the resources for the operational activities that will increase the efficiency of the business.

Objectives

The marketing or sales strategy is an important process for a newly establishing business. In this concern, at initial stage targeted segment will be de demographic segment, which includes different variables such as gender, age, income, family size, race, religion, occupation and nationality (Gilmour et al., 2013). In this business plan, demographic segment is targeted at first because it is helpful in dividing the large population into a specific group to know their perceptions about the products and services. This segmentation is also helpful in analyzing lots of data in less time for market research about offered products and services.

In this business, the integrated market techniques such as direct selling and online selling will be used by the management to sale products and services in market. In the proposed business plan, it is intended to win 20% market share growth at the end of third year from its operational activities and 30% profit on its total investment. Therefore, the proposed business plan will be introduce high-end target market with focusing on more value creation and keeping price on back foot. It is expected to sale at least 3000 products per month of the proposed business. On the basis of market analysis it is planned that the restaurant will sell additional benefits with each unit of sale to attract the customers through direct selling. This strategy will be beneficial to communicate with the customers and know about the customer experience. Moreover, online platform will be used to make comfortable the services for those persons who have not time to visit the restaurant. In this concern, the sales forecast for three years is as below:

In the first year, the business will distribute its products through direct selling at its place where the business is established. The representatives of the business will sell their products with special offers to introduce the restaurant in the market and communicate the customers to get their opinions, needs, desires and suggestions to improve the quality. In second, year there will be use of social sites to promote its products and in third year there will be used websites or online network to increase sales in the market.

At present time, there are substitutes of each product and service at lower prices, but the proposed business will target high-end customers at the initial phase of the business and use cost-plus strategy. As the demand of the products increased, than the price will be decreased with increasing economic scale. This pricing strategy will be attractive for all types of the customers as well as for the business. In this pricing strategy, the price will be decided with including lower profit margin on each product because the increasing demand of the products will cover this price difference from high to lower.

S.W.O.T. Analysis

In this business, the integrated marketing techniques such as direct marketing, public relation, exhibition and internet marketing will be used by the management to promote products and services. These advertising and promotional techniques will be effective for the proposed business to introduce products at broader level. The business representatives of the restaurant will sale directly the products to its customers and make the public relations to introduce them about the restaurant’s products and online services. The business representative of the firm will also use exhibition strategy to promote the products and services among the customers and will provide discounted products for advertising. Moreover, the proposed business “CAFE TRIN” will develop its own website to sale its products in an innovative method. This method will comfortable for busy persons and accessible to get the queries, suggestions and responses regarding the products and services that may be used in improving the services. Hence, these marketing and promotional strategies will be effective for the proposed business to prepare the customers for buying the products and getting the predefined aims and objectives.

In this business plan, for food safety, food quality, preservation, packaging, ingredient formulation, appearance and other food attributes R&D (Research and Development) team will be formulated. This R&D team will focus on core fields of food science and their relevant areas such as food microbiology, food engineering, food processing, food biochemistry, nutrition, and sensory analysis. The R&D team will be able to converse development strategies more effectively and sympathize them with all stakeholders by becoming familiar with these core areas of food science (Rosenbloom, 2014). This navigation through turbulent and competitive research and development environment will be able to maintain a clear line of communication with the expertise management team. The process of research and development (R&D) will be helpful in increasing reliance of customers on the products and image of the business as unique brand in the market.

Furthermore, there will be patented the name “CAFE TRIN” as a government authority or copyright with conferring the sole right to exclude others from using, making and selling any invention on this name. This will provide uniqueness in the region and increase the brand value that will lead to increased revenue. Furthermore, in this business plan copyright will also be used to get the legal ownership, which includes painting, photographs and novel that are created by the owner of the business. It will provide uniqueness in the market to proposed business. Furthermore, there will be technical partnership with IBM and DT Research to transform the operations through use of technology and infusing intelligence into the system that will run the business activities in the competitive market. These technological partners will also be helpful in developing the operational activities with innovative and effective technologies.

Market Analysis

Management of “CAFE TRIN” will need customers as well as process driven operational strategy to make utilization of company’s resources in most dynamic manner. It will be helpful for the business in getting an opportunity to understand the suitability of the product for the customers and provide them products on time. The main focus of the management will be to start working on the orders just with the receiving of order from customers. In this regard, the strategy of the management will focus on reducing overall cost of operational activities to improve the profitability of the restaurant. Therefore, there will be distributed different responsibilities to different managers to carryout successful operations. In this concern, different management operations that will used to manage the business activities are as below:

Since, restaurant industry is a competitive industry therefore it is necessary for a new restaurant to hire right personnel that can manage business in a systematic way. For this proposed business there will be need of a production manager who have good experience in the related business and has the ability to manage labor force in effective manner. Thus, the management will recruit an experienced manager and 20 to 22 workers to manage the operational activities of the restaurant. The manager will be responsible for generating issues in the organization and will manage these issues on his behalf. In addition, 3 marketing representatives will be selected to promote this business plan in the target market.

The training plan will be devised for the selected human resources of business prior delivery of any services. In addition, the training plan will be revised within every three months to maintain a skilled workforce. The training program will involve new techniques to make food products more tasteful and develop communication skills in the workforce to serve better services.

At the initial stage, every business has need of different physical resources to survive in the market. In this proposed business, there will be need of proper workspace, adequate information system, better supply chain system, attractive infrastructure and effective marketing objects. It is an important aspect of business planning that could be managed effectively by the management to attract the customers. Since, the business will be established from starting phase, therefore it will require a building to setup its machinery and raw material. Moreover, furniture like tables, desks, chairs, computers, printers and telephone will also be needed by the management to set the office.

Competitive Advantage

The term financial projection is used to forecast future expenses and revenues. In this proposed business, the financial projection will account internal and external factors to develop short-term and long-term financial revenue and expenses (Lee and Andrade, 2011). The financial projection helps in identifying the revenues from resources of the business to maintain adequate working capital for smooth functioning. The below table will depict total financial resources that will be required by the business during each year:

The above table presenting that there are different sources of income. In other words, the income sources of the business are invested amount on different sources. The fixed investment of the business is $33230, which will be used by the business in getting long-term income. Furthermore, $344000 is variable cost invested in the business to get short-term income. The variable sources may be changed in each year.

In a business plan, long-term forecast is not necessary, but it is a superb implementation of an individual to think about the future of business. In this regard, the project profit and loss account for the first three is as below:

The projected balance sheet not presents the actual measurement but it is helpful in estimation of total assets and liabilities for the projected business. The projected balance sheet for “CAFE TRIN” is as below:

Note: Depreciation is calculated @ 10% per annum by straight line method.

Cash flow prediction for CAFE TRIN of three years is as below:

Funding requirement explains that how much money will be required by the business. In this proposed business, the owner of the business will have need of $250000 at the initial stage for different operational activities. In this regard, the responsible authority will use different sources such as promoter’s fund, bank lending and loans from agencies to manage the required fund. There will be used $125000 of promoter’s fund, which is an essential source of fund. Moreover, $75000 will be managed by lending from banks on a fixed interest rate and the remaining amount $50000 will be managed from financial agencies. In these funding sources, only promoter’s fund will on any additional costs but the loans from banks and financial agencies will at fixed interest rate.

This fund will be invested with a proper strategy on various business activities such as R&D, Marketing, Staffing and equipments. In total of $250000, 30% fund will be used to manage the required equipments in production of food and other products. It is a big part of the required fund for business operation because all of the business activities will be depended on these equipments. Furthermore, 25% fund will be used in R&D of the products that will decide the food security and quality. This amount is also higher but it is essential to get the approval of quality and security according the food and security authority department of the region. It is also essential because it will increase the believeness and trust of people that they are getting healthier and nutrition food. In this required fund, approx 30% fund will be required for staffing and marketing activities. It is an essential part of the proposed business because the development of a business fully depends on its staffing services and advertisement system. In this proposed business, the recruited staff will be experienced highly in the related field. The operational staff will be capable to manage all the generating issues in this restaurant therefore the staffing cost will be higher. As well the advertisement cost will be effective in attracting the customers to purchase the restaurant’s services and introduce the newly proposed business. In this concern, much of the required fund will be used in advertising activities such as cost of website, marketing representatives and different costs on print media.

References

IBIS World (2017) Restaurants in Australia. [Online]. Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/restaurants.html (Accessed: 3 June 2017).

Euromonitor International (2017) Full-Service Restaurants in Australia. [Online]. Available at: https://www.euromonitor.com/full-service-restaurants-in-australia/report (Accessed: 3 June 2017).

Helms, M. M., Rodriguez, M. A., de los Rios, L., and Hargrave, W. (2011) Entrepreneurial potential in Argentina: a SWOT analysis. Competitiveness review: An international business journal, 21(3), pp. 269-287.

Gilmour, P., Borg, G., Duffy, P. A., Johnston, N. D., Limbek, B. E., and Shaw, M. R. (2013) Customer service: differentiating by market segment. International Journal of Physical Distribution & Logistics Management. 3(6), pp. 210-217.
Rosenbloom, C. (2014) From stealth health to nutritious and delicious: The culinary institute of America’s healthy menus R&D collaborative. Nutrition Today, 49(3), pp. 153-159.

Lee, C. J., and Andrade, E. B. (2011) Fear, social projection, and financial decision making. Journal of Marketing Research, 48(3), 121-129.

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