Business Plan For Lucky Café

Legal Structure of the Business

When any business start-up is introduced in the market, it needs to develop a business plan, which includes all the details that will be considered at the time of business launch. This business plan of a company includes all the material concepts, which will assist it in earning higher profit by operating the business effectively. The business, which is taken into consideration here, is food and restaurant business that is named as Lucky café. The organization will be established in a famous shopping mall in United Kingdom, which will provide coffee and other beverage products to the population in the country. In the country’s restaurant industry, Lucky Café will be introduced to offer fast food and beverage products to the food lovers[1].

The legal structure, which will be chosen for this business, will be Limited Liability Partnership (LLP), which is the combination between corporation and partnership. It will allow the Lucky Café to take the benefits of both partnership and corporation. By incorporating business in this legal form, Lucky Café will have advantages and operational flexibility same as partnership and has the limited liability treatment[2]. Under this legal structure, the profits and losses of business will be set off to all the owners and they are protected from personal liabilities. This legal form of the organization will be profitable for the Lucky Café.

Lucky Café will offer different breakfast items, like; cookies, shakes, French fries, coffee, flavoured tea and others. First, the organization will introduce its business in different cities of United Kingdom, and then it will think about expanding the business to other nations. The major marketing objective behind this business is to enhance the productivity and efficiency of the chosen business. This business start-up of Lucky Café will assist the investors in creating the value of their investment[3]. At Lucky Café, offering the best quality and services are the key competencies of the products. These components will indicate that organization will keep the quality and prices of its products high for enhancing the overall efficiency and productivity of firm. By doing this, the organization will be able to improve its brand image and reputation in United Kingdom and all over the world.

The mission statement of Lucky Café is to create an exclusive place where the people can socialize with each other in relaxing and comfortable environment and they can take ad enjoy the quality meals. It will create an attractive ambience and location, effective customer service and food with higher quality ingredients[4].

Products and Services

The vision statement of Lucky Café is “to be one of the best food companies in United Kingdom with delicious and yummy food with different variety and flavours. Becoming a leading fast food company does not mean being the largest firm but it means becoming on the top position in terms of value, services to customers and forecasted growth and development.

Under this business start-up, the management team at Lucky café has established various goals and objectives. The major objectives of Lucky Café are stated below;

• Attain the sales approaching $1.9 M by the end of first year
• Aiming and maintaining the net profit of at least 13% by the end of second year.
• To attain a significant market share in United Kingdom fast food and restaurant industry
• To foster per month sales to approach $160000 at the end of fifth month of its start-up and operations and $200000 per month at the end of first year[5].

For attaining these marketing and business objectives, organization will create and implement different effective marketing and business level strategies. These strategies will assist the organization in attracting customers towards its products and services.

Industry and Market Analysis (Summary of Opportunity Analysis Assignment with Self-Reference)

Market and industry analysis is an important method, which is used for analysing the current position of the company in the market. It helps the company is evaluating and understanding the present competition and existing competitors in the industry. Competitors are one of the major factors, which are responsible for the success and failure of any business. The industry and market analysis is stated below;

As per a report, global fast food industry is growing with a significant growth rate and has reached to $103 billion. There are various local and international players in the food industry, which are offering different food menus with innovative business ideas[6]. Though, with the intensified changes and economic condition of business, new entrants or businessman is getting the drive in market with the help of innovative and creative technologies in market.

The food and restaurant industry has performed very well during last years with significant growth reinforced by the consumer and long term demographic trends. But industry conditions in the UK industry have become very much competitive and customers are confronting pressure on their incomes from increased inflation and pressures of costs. Frequency of eating out is increasing due to people’s income in the country 

For segmenting the market, Lucky Café will consider the demographic and behavioural characteristics of the population and select the target market, i.e. people between the age of 25 years and 40 years, children, tourists and students.

• Liberal Rules and Regulations in United Kingdom
• Effective marketing and promotion in comparison to its existing competitors
• Implementation of effective strategies will assist in capturing more customers

• Intense competition in the UK food industry
• Higher start-up cost will cause higher production cost

Marketing research is the research, which is conducted for understanding the needs and demands of customers in the market. After conducting market research, Lucky Café came to know about the needs and preferences of customers towards restaurant food products. It was founded that people prefer to eat the healthy, tasty and quality food and avoid fast food. So, company will provide the food and drinks accordingly.

Marketing Objectives

For finding out the target customers, Lucky Café will use the process of market segmentation and consider the different characteristics of people. After consider market segmentation, this café will offer its services to urban professionals, who are residing in the towns and cities of United Kingdom. It will target the people, who like to have classy and casual eating and entertainment experience[8]. It will target the people from middle income as the products will be offered on affordable prices than other existing competitors in the industry. The people under this market segment go out for eating frequently, like; approx. three times in a week. For Lucky Café, the market segment is wide and it is made up of people between the age of 25 years and 40 years, children, tourists and students.

The value proposition of a company is the statement that is developed for introducing new products and services. This statement guides the people that why they should purchase these products. Lucky Café will create an effective value proposition like; McDonalds. For this start-up, the value proposition of the company will comprise easy approachable locations, comfortable and relaxing seats, fast and customer friendly service, quality food products, value pricing and attractive in-store facilities. By using this value proposition, the organization will be able to have various benefits over its rival firms[9].

When any organization launches its new business in any industry, it requires formulating marketing strategies, so it can approach its customers. The organizations develop these marketing strategies by the use of marketing mix tool that consists of 4 P’s, which stand for Product, price, place and promotion. Lucky Café will also implement the marketing strategies using marketing mix tool, which are given below;  

As discussed above, Lucky Café will sell the fast food and soft drinks primarily, which will form an identical food menu all over the United Kingdom. Under its product strategy, it will offer a wide range of products, like; desserts, coffee, French fries, soft drinks, fast food and some other breakfast items. It will prepare its food menu by considering the needs and expectations of UK population for food. Under this, the organization will make efforts to innovate its products and services to attract more people[10].

Furthermore, it will focus on developing an effective pricing strategy, which can help Lucky Café in appealing most of the UK population. The firm will implement competitive pricing strategy, which will be affordable for the people from all age groups. Under this strategy, Café will avail some discounted and combo offers. This strategy of marketing mix is significant for the Lucky Café, as it will be able to encourage the customers to buy its products.

Mission and Vision of the Company

Lucky Café will locate its outlets at most convenient places in the cities of United Kingdom. The major places of the organization for distributing the products will be like; food outlets, website, mobile application of the company[11]. The customers will be able to order their desired products using company’s application and website.

Lucky Café will be engaging in effective and advertising process for appealing the customers towards its products and services. At Lucky Café, the marketers will use different promotional techniques, like; advertising, public relations and sales promotion. In addition to this, it will use social media networking sites, like; Facebook, Twitter, Instagram etc. where it can post the pictures of products and restaurants and their offers. In the beginning, it will distribute the pamphlet in the cities of United Kingdom and provide offers to their first 100 customers. It will encourage the people towards Café’s products and services[12].

In this way, these marketing strategies of this corporation are supporting it to entice the clienteles and growing its customer base. It will assist the firm in making more revenues and profits under competitive business environment.

For introducing this business, Lucky Café will develop a business model, using business model canvas structure and operate the business effectively. The business model for the organization is given below;

Under its manufacturing process, the company will consider different operational processes and activities, like; quality management and product and service designing. Under its manufacturing and production system, the organization will focus on enhancing the quality of food products, with some attractive factors, like; costs and pricing limits. It will execute a different and unique production approach to maintain the quality of product offerings. The consistency in the quality will satisfy the needs and expectations of people[14]. The major objective of Lucky Café is to provide the quality and affordable products and services. The serving size and prices of food products are developed based on the demands and needs of people in United Kingdom.

Developing partnerships are is an important and interesting concept for any new business. For implementing effective supply chain, it will scale its partnerships by considering different partners. For restaurant business, it is very essential to have scalable point of sales systems. Lucky Café will also develop a scalable POS system that will assist in growing and adapting the changing needs and requirements of the food organization[15]. Under scalability process, it will analyse every aspect of the partners, like; technology, insights, advice and supply chain. The organization will analyse the partners with the fresh eyes and identify their expertise.

Goals and Objectives of Lucky Café

When the organization will introduce its business start-up, it will create an organizational structure according to its departments and operations. The company structure and management team of Lucky café will assist in managing the target customers by considering the performance levels. The organization will follow a hierarchy type of organizational structure that includes all the related divisions, which are important to the organization business activities and operations. The below-given diagram shows different levels of management at Lucky Café, such as; upper level, middle level and lower levels[16]. The roles and responsibilities of all the levels are divided accordingly. Top level management at firm will be responsible for objective setting, operations management and decision making etc. Other divisions like; finances, sales departments and marketing have their individual responsibilities and duties for assisting the achievement of final goals of company.  

Premise of the organization can be considered as a major physical resource at Lucky Café in United Kingdom. It will have different resources for offering its services to customers properly. It will ensure that food outlets are located in the strategic and convenient locations of the city, like; shopping malls or in any famous building. The ambience at premises will be attractive and relaxing and it will have the sitting capacity of over 50 people. The restaurants of Lucky Café will be equipped with latest cooking and storing cooking equipment and utensils. After some time of business establishment, there will be facility of handling the children, like; play room and other leisure and entertainment activities.

To become a leading player in the UK food industry, Lucky Café will provide an effective training to its employees at all levels[18]. This training program will start from lower level and they will learn to cook food by considering the quality standards. It will offer the base for improving and establishing responsibility and discipline in the organization. This training will give the information about how they can use the given equipment and machinery. The organization will use the machinery, which is modern and safe for the workers.

When it is about the food organization, then Human Resources are very important to consider. Employees are the major strength rather than machines, cash flow and tools. Human resources may play an important role to make the organization more competitive. The management will understand that satisfaction of employees is very important for satisfying the customers and attaining its objectives[19]. To meet this objective, a proper training is offered to all the employees. At the time of recruitment and selection, it is focusing on the motivation level and educational qualification of employees.

Market and Industry Analysis

In the beginning of this restaurant business, the management at Lucky Café will create a financial plan, which will includes various start-up costs, capital requirements, estimated cash flow and profits in coming years[20]. This plan is given below;

The projected cash flow for Lucky Café is given in the below table;

When the organization will introduce this new business, it may confront some risks and challenges that may affect the growth and profitability of Lucky Café in UK food industry. There are many types of risks, such as; currency risks, operational risks, legal risks and risks related to brand image and reputation[21]. At the organization, operational risk may occur; if there will be chances of strikes and protests from labour against the organization. In this situation, they have to make changes in the operations and its operation strategy. There may be social risks, as the people prefer to eat healthy and dietary food and avoid outside eating. It can impact the business and operations of Lucky Café. Moreover, this firm may confront the issues and risks related to currency that needs to be moderated by using some effective strategies. In the future, if organization thinks to expand its business in other countries, it will require complying with international laws and regulations.

To mitigate with the above risks, Lucky Café will develop and implement some strategic alternatives. These alternatives will help the firm to overcome the associated risks and challenges. For dealing with the operations risks, firm should use product diversification strategy and launch a segment with dietary and healthy food products, like; juices and salads. Furthermore, hedging instruments can be utilized to deal with the financial and currency risks. When an entrepreneur thinks of opening a new venture, it should conduct a marketing research in the country’s market. By doing this, Lucky Café will be able to know about the laws and regulations, which are imposed in the target country market. Introducing a healthy menu will help the organization in satisfying the current trends and demands of population in the United Kingdom.

After formulating the business plan, Lucky café will develop an action plan for planning and execution of different activities in practice. The execution of business will consist of various key milestones. It will take months before the business launch. The key milestones for the organization are specified in the below-given table; 

Market Segmentation

The above-written actions and milestones will assist the organization in effective implementation of the business plan and introduction of the business on the date 1/8/2019 in United Kingdom.

The organization will develop an exit strategy, which will be used in the situation of emergency. It will use as contingency plan, which Lucky Café will use as a strategic plan. This exit strategy will give the organization an effective way to decrease and eliminate the stake in the business. If the organization will face any situation or after attaining the predetermined objectives, the company will sell its assets and purchase new assets for diversification and expansion[22].

Thus, Lucky Café will implement this business plan for starting this new business in the cities of United Kingdom. It will assist the organization in attaining its marketing and business objectives and establishing its brand image in the UK fast food and restaurant industry.  

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