Café-Daily Restaurant Business Plan

Business Environment: Mission, Vision, and Goals

Discuss about the Café-Daily Restaurant Business Plan.

The restaurant will be created in a way that it presents a unique and lively environment for customers to enjoy their meals comfortably. The menu will be simple at affordable prices. It will include a variety of dishes that give the customers a wide variety of options to choose. The setting of the restaurant will include a 50- seater furnished with attractive lighting and a good entertainment system. Plans include opening several branches in other countries and provision of delivery services. Covello, & Hazelgren (2006), came up with simple business plans steps that ensure the success of any business to be started. These steps will be included in my business plan.

Mission

To provide the best services in the hospitality industry by setting an example

Vision

To be the most outstanding restaurant by providing quality services and satisfaction to customers to ensure that customer satisfaction comes first.

Goals

• To attract new dinners in California
• To increase the sales volume thrice within the first three years of operation
• To ensure customer retention by offering quality foodstuffs and services

The Café- Daily menu will feature dishes following French and African food preparation methods. The delicacies will offer a unique type of food preparations from that offered in other restaurants. Additionally, the coffee shop will offer a special type of coffee ranging from espresso drinks, pastries and desserts, and sandwiches.

Newspapers and magazines will also be readily available for purchase. Music entertainment will involve jazz, RnB’s, hip-hop and classical to engage customers while taking their meals.

Since the restaurant is small and new in the business environment, it requires simple organizational and financial structure. Implementation of this business structure calls for ten experts to make the main business decisions and monitor all the business activities. As we expand our company, each restaurant will have an experienced manager to ensure a proper run of the business.

Our first employees will include one cashier, three cooks, two cleaners and four waiters during working time. It is a perfect number for support staff to run the restaurant outlets comfortably.Plans will be to increase the number of outlets as well as the number of employees consecutively.

Payroll plan

On the side of strengths, the business has adequate financial resources that can make it sustain itself. Qualified personnel is another strength of the restaurant thus delivery of quality and services to the customers. Offering affordable prices for the meals can also be strength as it will give the restaurant a competitive advantage over the other restaurants surrounding it.

Products and Services

Weaknesses will give insights on areas to improve on. Insufficient or lack of proper training to the employees can be a weakness to the firm as they may end up producing low-quality services which then may affect the smooth running of the business (Pearce, 2008). Use of paperwork rather than new technology to master food usage in the restaurant to maintain constant supply can be a great weakness.

Opportunities can include; trying as much as possible to provide a wide a variety of meals and drinks to cater for customer needs adequately. Coming up with a strategic way to attract a wide market as well as maintaining the usual customers.

Some of the threats associated with the business can include the presence of numerous restaurants offering similar products and services in the nearby location thus posing a competition challenge. Government legislation which limits restaurant activities can be a threat.

The restaurant building will be the only facility at the moment located in Beverly Hills’, California. All the necessary equipment and appliances required for smooth running of the business will be fitted on the premise.

The following equipment will be required: oven, grill, freezer, refrigerator, range, commercial kitchen tools, furniture, signboards, and fittings (lights, TV, etc.), cutlery setting and computer equipment. The estimated cost of the above plant and equipment will amount to $40000.

The accounting department will be equipped with computerized programs to facilitate processing of vouchers, credit cards, and debit cards and cash transactions in the system. The systems will ensure paperwork is reduced and quick retrieval of records in the future.

The business will ensure all the properties and assets are legally acquired and registered according to the law (Pearce, 2008). The business name will be legally registered, and the relevant licenses will be acquired and kept to date. E.g., Food Business License.

Relevant insurance covers will be obtained to cater for any risks arising. It will include theft, fire, public liability and business interference insurance covers. Additionally, the staff members will have income protection and life insurance.

The goals of the business will be;

• To be known and become popular in the target market within one year.
• To ensure the business is stable within one year.

The milestones of the business will be:

• To be the best supplier to the target market within 3-4 years
• To achieve a high-profit level to enhance the full success of the business and put more efforts on other income generating projects
• To be award-winning and a recognized business in the hospitality sector in California.

These milestones will be achieved through benchmarking in similar successful businesses offering the same services and a regular and consistent training to the staff members to keep up to date their skills and knowledge.

Doole & Lowe (2008), suggest that a good marketing strategy should foster on the environment for trade, market motives, research and opportunities. Advertising campaign will be launched to inform the residents and other businesses of a new business entry in the market. The restaurant will aim to reach its potential customers with persuasive messages that its products are the best and that it exceeds that offered by its competitors (Doole & Lowe, 2008). This technique will adopt well-tailored messages through the radio, television, social media and other advertising channels to reach its target customers.   

Business, organization, and Finance structures

Sales analysis methods show we will be able to serve an approximate of 4000 customers per month is expected. This figure is likely to double during celebration days such as Christmas, Easter and other celebrations. Projected sales of around $ 100,000 are expected on the first year which will be expected to double by the second year.

In order to retain customers, the deployed personnel will work in close relation with the Public relation officer to ensure that quality services are offered to the existing customers (Ngai, xiu & Chau, 2009). With customers interests and satisfaction vested in the heart of the management, ensures that the business has a disciplined growth curve with more sales and quality output. Ngai et al., (2009), suggests that marketing and loyalty programs ensures customer retention.

Drinks will be sold ranging from $5 – $10. Any other meal will be sold ranging from $10 – $50. Considering the prices from suppliers, the price can increase or reduce in different times. Only mid-range prices will be offered.

The business will operate on a winning strategy pegged on quality. This will ensure that Café-Daily remain relevant in the market despite the stiff competition from its competitors, who might be dealing with similar products. Product differentiation plays a great deal in ensuring that certain products are branded in accordance with business goals and objectives. Additionally, it helps identify products with the business thus avoiding confusion and chances of counterfeit.

The restaurant industry will ensure high concentration of top incomer areas compared to the average earners areas. It will also be considerate about the changes in household incomes. The present general pattern is for eateries to focus on offering an incentive for cash with an accentuation on family eateries. The business will keep on benefitting from higher livelihoods and time requirements on a few families and additionally way of life changes. This will incorporate all the more feasting out or take away nourishment utilization.

The general target market will be the entire population in California. The specific target market will be high income earners because most residents in that location have high income per capita income. Another specific target market will be tourists as tourism sector is growing daily in California. Families probably with kids will also a targeted market due to the services to be offered for different ages.

Value for money will give the business a competitive advantage. This means offering goods and services that are worth the pricing. Providing quality food stuff and ensuring high customer service will offer a competitive advantage over the competitors.

The five factors which include: engagement, communication, innovation, project management and culture will be tightly integrated to ensure the success of the business.

According to Brown (2016), every business invests in start-ups to as-as to acquire capital gains through the accumulation of profits. Though profit maximizing is the key goal, losses can still occur. 

Set-up cost of approximately $500,000 is anticipated. $100,000 will be the owner’s entity whereby the rest $400,000 will be acquired through loans which will be repaid at an average rate of 8% in 5 years.

The expected net returns for year one is $55,323, second year $80,435, third year $120,077, fourth year $143,500 and the fifth year $200,440. These profit projections are based on profit and loss budget which is drafted for each year of operation (Brown, 2016).

The projected cash flow is as indicated.

The following is a projected balance sheet for café Daily’s Restaurant

Break-even analysis operates on the idea of the average of the initial (first year) figures for total sales by units and business running costs. It is estimated as unit cost and fixed costs respectively.

References

Brown, K. D. (2016). Financing for Small Business Southern Style Restaurants (Doctoral dissertation, Walden University).

Business plans, business models, and elevator pitch competitions. (nod.). Entrepreneurship Programs and the Modern University, 141-163.

Covello, J., & Hazelgren, B. (2006). The Complete Book of Business Plans: Simple Steps to Writing Powerful Business Plans. Sourcebooks.

Doole, I., & Lowe, R. (2008). International marketing strategy: analysis, development, and implementation. Cengage Learning EMEA.

Ngai, E. W., Xiu, L., & Chau, D. C. (2009). Application of data mining techniques in customer relationship management: A literature review and classification. Expert systems with applications, 36(2), 2592-2602.

Pearce, L. (2008). Business Plans Handbook: A Compilation of Actual Business Plans Developed by Small Businesses Throughout North America. Thomson Gale.

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