Business Plan For Willies Home Style Restaurant

Restaurant Overview

All the business personnel are entrusted with the responsibility to preparing a business plan. As a matter of specification, it is a formal statement, stating the identified goals and the means to achieve them. These plans are carried out in the written format for enhancing the awareness of the personnel regarding the undertaken steps. Business plans are an effective in undertaking appropriate decisions for efficient execution of the business operations. Specifically, business plans require proper justification regarding the selection of the plans. This justification enhances the awareness of the personnel regarding the achievement of growth and development. Time is an important factor in the business plan, which acts as SMART criteria for reviewing the effectiveness of the constructed plans (Agarwal and Dahm 2015). This assignment would develop a business plan for Willies Home Style Restaurant.

The name of the restaurant would be Willies Home Style Restaurant. This is in terms of providing a homely feeling and experience to the customers. In order to improve the quality of local organic cooked food, planning has been done for opening the restaurant. Along with this, initiative was also taken to provide the opportunity of savouring the taste of local cooked food to the customers. Here, attempt would be to achieve competitive advantage over the contemporary brands through the provision of lip smacking foods and beverage.

The area of the restaurant would offer delicious savouries for adding happiness into the lives of the people. Typical evidence of this is the menu card, which includes variety of dishes like roasted potatoes with garden fresh sautéed vegetables; stew pigeon peas in coconut milk (Belew and Elad 2017). There would be choice with the fish and meat items, which would be harvested from the farms. The desserts would truly define the taste of the homely cooked chocolate and crème. The restaurant would provide special services on birthdays, marriages and other events.

Willies family would be the sole proprietor of the restaurant. The lease agreement for setting up the restaurant would be carried out in Roxborough, Tobago. The restaurant would cover 3411 square feet area, where renovations would be done as per the requirements of the customers. Innovation and creativity would be undertaken by the proprietor for providing an altogether different restaurant service to the customers. Passion in culinary art would be helpful in this regards (Frese, Hass and Friedrich 2016).

The restaurant would be open for the public from 1^st November 2018. The top team of the restaurant would include locally trained and International executive chefs, who are acquainted with management of the catering business.

Market Analysis

The aim of this restaurant would be to provide good quality local foods to the customers at reasonable prices.

The local wholesalers are in charge of most of the international brands. In such a scenario, the barriers to entry are high for the new brands like Willies Restaurant. Finding a local importer would aggravate the complexities, as he would not be acquainted with the competitive brands. Imposition of harsh legislations has barred trades of goods like honey and citrus fruits. This situation has added to the difficulties in preparing the items, where the main ingredient is honey (Hair et al. 2015). This also increases the obstacles in preparing the desserts are prepared with citrus fruits.

Food and beverage industry is one of the largest ruling industries in Trinidad and Tobago. Determination, hard work and perseverance of 10000 people has made significant contributions towards reducing the food import bill. The business critiques consider the industry as a lifeline for the economy. Between 2002 and 2005, the average GDP was 8.1%. 900 million items were exported, adding to the workforce. The speciality of this industry are rum flavoured chocolate cakes, Caribbean fruitcakes, sauces, spices, soft drinks, exotics juices and bottled water. Popular brands are Nestle, Unilever and Carib Breweries. Close proximity of the North and South American markets provide the brands with competitive advantage (Hatten 2015).

Low production and export costs are a means for reaching to large number of clients. Strategic approach in the shipping the items to the ordered location ensures systematic logistic operations. Application of effective monitoring techniques from the product inception to packing prevents the production of poor quality food items. According to The Guardian, food and beverage industry plays a critical part in the economy of Trinidad and Tobago (Guardian.co.tt 2018). This is in terms of the foreign exchange earnings, which resulted in a hike in the employment. The focus was on overpowering the new and the emerging markets. They indicate the importance of the gaming theory, which enhances the clarity regarding the competition tactics (Kuratko and Hornsby 2017).

Table 1: PEST analysis for Willies Homely Style Restaurant

Political unrest would hamper the import and export of the raw materials from one country to the other. Harsh tax tariffs would act as an obstacle for the personnel in terms of setting the prices of the food items. High exchange rates aggravate the complexities of the restaurant personnel in terms of negotiating with the pricing techniques. Fluctuation in the prices of the raw ingredients deprives the customers from savouring quality and branded products. With the advancement of the civilization, the lifestyle of the customers has drastically changed (Kwok et al. 2015). This necessitates the need for adopting latest and modern machines, which possesses flexibility for producing branded food items. Complying with the IT legislations would help the restaurant personnel in averting the customer complaints regarding the quality of the food items.

PEST analysis

As a matter of specification, there are over 588 restaurants under the Food and Beverage Industry in the country of Trinidad and Tobago. Application of creativity and innovation on the provision of quality foods is the typical evidence for $41 million revenue per year. Willies Homely Styled Restaurant needs to bear in mind that brands like Jaffa at Oval; Angelo’s La Cantina, BUZO Osteria Italiana and Prime have already achieved customer satisfaction (Parsa et al. 2015). In such a scenario, Willies family needs to think of something out of the box for luring the attention of the customers towards the services.

Focusing on the seafood would intensify the competition between the brand and the Jemma Seaview Kitchen Speyside. Fusion over the non-vegetarian items can might provide competitive advantage to Willies over Suckhole Tobago. However, the personnel needs to pay attention to the prices of the food items, which would result in catering to the purchasing power of the customers.

Willies family needs to apply all of the market segmentations for identifying the target audience. Behavioral segmentation would be essential in terms of assessing the approach of the customers towards the delivered products. Herein lays the appropriateness of the birthdays and events, which is an effective opportunity for identifying the targets. Geographical segmentation can be adopted by the restaurant personnel for management of the customer relationship (Ryan 2015). Along with this, it is also fruitful in terms of managing the import and export activities. Psychographic segmentation can be associated with advertising. In this area, the brand personnel can take the assistance of Ethical Code of Conduct for protecting the individual sentiments of the customers. For this, rationality is needed in the behaviour of the staffs for gaining trust, loyalty and dependence from the customers.

As per the report of 2014, the positive growth was the outcome in the food and beverage industry of Trinidad and Tobago. Foreign exchange supplies are high, which caters to the spending power of the customers (Schmidt et al. 2016). Decline in the US exports in 2016 brought simultaneous decline in the US exports. Leaner times witnesses pressures from the competitors. Development of the food processing industry has led to the provision of local products to the customers. Barbadian and Jamaican products have gained popularity in Trinidad and Tobago. This popularity might enable the Willie family to deliver lip smacking fusion desserts to the customers.

Strengths

Strong economy is one of the greatest strengths, which generates an urge within the personnel towards achieving growth and development. Investments in the labour markets have increased the sales volume. Stable economy has improvised the relationship with the US markets, resulting in addition to the stock of seafood. Sustainability in the retail food sectors has added positivity to the relation with the food suppliers (Swart and Taylor 2018). This proves beneficial for the restaurant personnel. Strategic contracts could help the personnel in maintaining the stability in their relationship with the suppliers. These strategies would assist in maintaining the balance between the demand and supply.

Marketing Strategy

Weakness

In spite of widespread increase in the number of food services, the personnel of the food and beverage industry have failed to provide the real taste of local cooked food to the customers. This has created a distance between the personnel and the customers. Along with this, niche target market is also an obstacle in terms of adding to the stock of customers. This is in terms of focusing on specific product. Fusion foods can be an effective means for overcoming this weakness (Ward 2016).

Opportunities

Homely feeling would attract large number of customers. The family proprietorship would cater to the needs of the customers efficiently and effectively. Picking farm fresh fruits, vegetables, fish and chicken might avert the quality issues. Adopting social media marketing would be an effective opportunity towards increasing the trafficking of the audience towards the brand image. Discounts, offers and schemes would be an innovative means for attracting large number of customers.

Threats

Intense competition is one of the greatest challenges, which the Willies Restaurants need to tackle. Non-compliance to the competitive policies would compel the personnel to encounter illegal issues and scandals. Negligent approach in dealing with price wars would act as a compromise with the specific needs, demands and requirements of the customers (Ryan 2015).

Strategy would be a central doctrine for the restaurant personnel in terms of systematizing the marketing activities. At the initial stage, strategies would be crucial for selecting the target market. Along with this, strategies would also include the ways and means for reaching to the specific needs and preferences of the customers. Preparation of the strategies would make the Willie family aware of the trends displayed by the contemporary brands. One of the strategies can be the creation of action plan, which would enable the personnel to envision growth and development in a proper manner.

Marketing objectives

• To adopt standard pricing techniques
• To conduct market research for enhancing awareness regarding latest and modern machines
• To train the personnel about catering to the cost ratios for breakfast, lunch, snacks and dinner
• To apply Ethical Code of Conduct for maintaining organizational culture.

The new restaurant business will set effective differentiation strategy as it will offer specialised version of its menu. The food products that will be offered by this new business will be as per the demands of the local consumers. The promotional programs will also be differentiated that will include certain sampling activities for tasting their products in a discount price.

Market penetration strategy of this new restaurant business will be focused on developing positive consumer relationship and for the same product line extension. Product development strategy of the restaurant will focus on implementing strategy of product proliferation in which it will constantly offer distinct types of products.

The marketing mix strategies set for the new business in order for attaining competitive advantages are explained under:

• Product: The products that will be offered in this restaurant will use fresh ingredients such as organic vegetables, top-shelf meat along with offering food of various cuisines.
• Price: Pricing strategy of this restaurant will be skimming strategy in which the product cost will be 45% of overall product price set by restaurant.
• Place: Food will be distributed by the restaurant through offering pick-up, home delivery and dine-in services.
• Promotion: Banner advertisements along with social media and PR campaigns will be employed as promotion strategy of the restaurant.

The personnel plan of this restaurant business will include servers those are general manager, restaurant manager, floor manager, part-time workers, and full-time bartender and crew members. In the future years, these staff will be increased by adding two employees as full-time managers and waiters.

Implementation

Post implementation

References

Agarwal, R. and Dahm, M.J., 2015. Success factors in independent ethnic restaurants. Journal of Foodservice Business Research, 18(1), pp.20-33.

Belew, S. and Elad, J., 2017. Starting an online business all-in-one for dummies. John Wiley & Sons.

Frese, M., Hass, L. and Friedrich, C., 2016. Personal initiative training for small business owners. Journal of Business Venturing Insights, 5, pp.27-36.

Guardian.co.tt (2018). Food and beverage industry explores new markets. Available at: https://www.guardian.co.tt/news/2011/10/06/food-and-beverage-industry-explores-new-markets [Accessed on 2nd July 2018]

Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of business research methods. Routledge.

Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson Education.

Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s roadmap. Routledge.

Kwok, L., Zhang, F., Huang, Y.K., Yu, B., Maharabhushanam, P. and Rangan, K., 2015. Documenting business-to-consumer (B2C) communications on Facebook: What have changed among restaurants and consumers?. Worldwide Hospitality and Tourism Themes, 7(3), pp.283-294.

Parsa, H.G., van der Rest, J.P.I., Smith, S.R., Parsa, R.A. and Bujisic, M., 2015. Why restaurants fail? Part IV: The relationship between restaurant failures and demographic factors. Cornell Hospitality Quarterly, 56(1), pp.80-90.

Ryan, D., 2015. Understanding social media: how to create a plan for your business that works. Kogan Page Publishers.

Schmidt, Michele C., Jane M. Kolodinsky, Thomas P. DeSisto, and Faye C. Conte. (2016) “Increasing farm income and local food access: A case study of a collaborative aggregation, marketing, and distribution strategy that links farmers to markets.” Journal of Agriculture, Food Systems, and Community Development 1(4). pp157-175.

Swart, M.P. and Taylor, A., 2018. Monitoring and Assessing Business Performance in Tourism: The Case of Hospitality Business. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality: Skills for Successful Ventures(pp. 207-222). Emerald Publishing Limited.

Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer

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