Business Objectives
The New Age Restaurant (NAR) will be based on the modern concepts of the food and beverage business and will mostly cater to the youth of the country. The restaurant will consist of a seating capacity of 100 people with an open lounge and an open bar area. The main food items that will be offered will be a mix of the local cuisine and some international food items. The drinks menu will be an extended one and consist of everything from breezer to mocktails to alcohol based drinks. There will be a small area that will be open to families and no alcohol will be served over there. It will be an open area where children can also come and visit. This will make the restaurant open for all age group people (Elimam, 2017).
This restaurant will be owned by a group of young entrepreneurs who have bootstrapped into the business and invested their hard earned money in the same. All five of them are MBA graduates and have been in the professional field for a long time, they have recently decided to start something of their own and have invested their savings to open this restaurant. They have no prior experience of running a restaurant but since they are young and ready to experiment they will be able to bring new variety to the table.
The restaurant will be located in an area that is more accessible for the local youth. The property that has been selected for the restaurant is an old eatery that has now been sold and given on lease. The same eatery is revamped to give it a completely new look. The property will require a certain amount of repair and maintenance to make it look a bit fancy (Heuvel & Wagelman, 2017). The previous eatery owner had removed all its furniture and fixture that was there are, only the basic properties have been provided that now requires extra maintenance. An interior designer will be hired to design the property and decide on the look of the entire place.
The basic sales projection that has been done is 1500 customer per week that will result in a week sale of $12500 and an annual sale of $650000. Thus for a property that is located on area of 3000 square foot, per square foot profit is $216. And in case of restaurant business any property that earns profit between the ranges of $200 to $350 is considered highly profitable in the market (Jennings, et al., 2012). In that way also the business plan is one to look forward to and if executed properly will result in high profit in coming future. The total start-up cost that is bootstraped will be around $200000 and the entrepreneurs need to look for breaking up the cost element and achieving the profit element as soon as possible. The investment for expansion will be taken from the bank when needed.
- The main aim of the restaurant is to be the one of its kind and highly sought after in its area, where there are many restaurants already functioning.
- To provide great services, quality meals at most reasonable prices both to the youth and the family visiting the place. The overall ambience must be unique and that will make the restaurant different from other.
- To achieve the break-even point as soon as possible, as the property is self-funded and net cost profit ratio needs to be achieved to fuel in further operations (Pape, 2017).
- To Achieve cover ratios at Lunch and Dinner per meal options.
Mission Statement
The main mission is to provide quality services to the people and provide such a place where both the youths and the family can enjoy together. The goal will be achieved by -1) Providing excellent variety in the menu that will serve both the youth and the families.2) To maintain the quality of the products that are offered and care should be taken to assure the well being of the customers and the staff, there must not be any biases and people must be treated as one and all. The ambience that is being provided must be unique and different from what people are used to, making this place better than the competitors (Lubensky, 2017).
As stated above, in the long run the business wants to break even and achieve the desired amount of profit and be known as one of the most profitable properties in this field. The long-term goal includes extending the business and if this restaurant business runs well, branches of the same can be opened in another part of the country too. The foremost and most important goal will be to win the hearts of the customer by providing them with quality services.
- To provide quality services to people from all age groups including both the youngster and the families and special menu will be there for children too.
- To maintain the safety of the customers and the staff and look after their well being will be the first priority.
- To form every plan and policy customer-centric and make the customer the primary decisive factor for the company.
- The business is bootstrapped as for now and in near future if the company wants to expand then they need to have high credit value to get funds from investors, so overall market reputation needs to be maintained (Jennings, et al., 2012).
The main objectives of this restaurant style of business is –
- The specific objectives are to recover the overall cost that the entrepreneurs have bootstrap and attain the profit element as soon as possible.
- The weekly and monthly revenue can be measured on the basis of per square foot and the revenue can be calculated according to the same. This will help the entrepreneurs in analyzing their foothold in the industry (Aubert, et al., 2017).
- The per square foot profitability is attainable and if everything goes as planned then the business will be able to do the same within the decided time frame of a year.
- It must be assured that the break-even point is achieved within six months of operation else the business will not be able to function well and eventually the profitability will also not be maintained (Cornelissen, 2016).
The food menu will consist of variety of products that will consist of both the local cuisines and also some international food elements will be there. There will be a wide menu of drinks that will consist of both alcoholic and non-alcoholic products. Apart from food items, there will also be small games that people can play while having their food. There will also be a dance floor and buffet counter apart from the formal dining area and the lounge (Butler, 2017). Well trained chefs will be appointed to provide most authentic food to the people and to maintain the overall quality of the products being offered. Well trained staffs from the hospitality business will be appointed to provide world-class experience to the customers. The menu will be customized as per special occasions and initial discounts will be given to attract more crowd.
The main customer group that is being focused is the young age group between the ages of 18-28. The youths no longer want the traditional food system where they go and eat and come back. They want places that serve good food with awesome ambience and are more open and have a lot of variety along with alcohol. They look for more lounges then fine dining places. But these youth consists of only 35 percent of the total customers that prefer eating out, rest consists of families and children thus it is very necessary that a separate area is designed that is free from noise and any kind of alcohol and serves just the families and the children. In this way, the overall profitability will be maintained and the cost element would be reduced (Pape, 2017). The customer preference changes from area to area, thus while designing the overall business plan the needs of the customer and especially the targeted audience must be given the utmost importance. This will help the business in being more profit-centric and more customer focus. The main aim of the business is to earn the profit but in return, it needs to satisfy the customer and that can only be done by doing proper market research and survey and understanding the needs of the people, the demands of the youth and then designing the menu on the basis of the same. It is very important that variety must be offered but an authentic touch must be there (Maynard, 2017).
Vision Statement
In case of Africa, the food scene is very different from other countries and has evolved a lot in the recent time. Previously the people were not so much into trying out new varieties and the country was considered as a nomad that survived on raw steamed food and was not open to trying out anything new. But now as times have changed the food scene in the country has changed a lot. People are now open to trying out new cuisines and this has opened the doors for experimentation and has led to the development of such new age restaurants. On the basis of the 2016 annual report, it can be seen that the overall food and industry sector has grown and that implies more prospects for the industry and people are open to trying out new food items (Saad & Elshaer, 2017). This has created new opportunities for employment and new tourism policy has also been introduced to attract more revenue for the company. Thus if the new restaurant is open then the business will able to earn more revenue from the same.
Political – The political scenario of the company consists of the legal norms and the policies that the government forms and the other parties need to comply with the same.
Legal – The legal rules consist of the legal forms and policies that the company has to follow on the basis of the judiciary of the place in which the business is operating and in case there are any discrepancies then the business needs to pay fines and penalties.
Social – The social scene is quite different in a country like Africa. Previously the country was not open to social acceptance of other cultures and traditions, but now the scenario has changed a lot. The country has developed a lot and is open to new varieties and concepts in the area (Tian & Slocum, 2016).
Technological – There has been huge development on the technological front and that suffices the growth of the hotel industry in the area.
Economical –The hotel industry has developed and grown immensely since the previous years .The GDP has improved and has opened avenues for new job opportunities for people around the country and also the tourism policy has been introduced that has opened new avenues for better revenue for the hotel industry (Li, et al., 2017).
In the coming years, the pop culture has fuelled the growth of fast food restaurants in the country and this is because they offer quality products at affordable prices. This has also fuelled the growth of such youth based pubs and restaurants that offer multiple services under one roof. There has been growth in the hospitality business since previous years and the tourism industry is highly responsible for the same. The NAR will face indirect competition from the small quick serving restaurants that operate from small kiosks and direct competition from proper dine in restaurants that operate in the region. The QSR covers around 25-30 percent of the total market share and the dine-in cover the rest. The competition can be killed by providing the better variety of products and that too at the most affordable prices possible (Butler, 2017). Initially, the company needs to keep the prices low so that more people are attracted and are ready to try out the products being offered. There are many fine dining places in Rwanda, Africa, but there are few places that offer the services that the NAR is offering under one roof. So in that way, the business is having an upper hand of being the beginner.
Core Values of the Business
The main strength of the business is that it focuses on all age group of customer and has something for all the groups. It will help in improving the overall revenue of the business and the fact that the business is bootstrapped there will be no external pressure to meet the profit figures. The internal strength element of the business also lies in its newer concepts and the facilities that it is providing to its customers. The major weakness of the company includes that there are still fewer prospects for the restaurant business in Africa and the government of the country needs to work in that regard. It can also be seen that if the business fails to achieve the required level of profit then the business will suffer a lot and there will be issues with the future expansion. The company needs to do proper market research and analysis to be in the business and to strive the competition that it faces from other restaurants that are operating in the same business (Adapa & Roy, 2017). The company is based on the concept of serving both the families and the youth but it can be a concern that families won’t prefer such outlets in which alcohol is being served over the counter. This may affect the overall revenue of the business and they need to maintain a balance with regards to the same in the region.
The business differentiation can be achieved by presenting the model that satisfies the needs and demands of people of all age groups including the youth and also the families. In this way, the business will get an upper hand over its competitors. The main area where the business will be able to achieve the required differentiation will be in the overall marketing and projection of the restaurant. The marketing should be based on the youth of the area and should be focused on them, but along with it, the family concept must also be highlighted. Initial discounts can be given to attract more customers. The few points that must be followed to achieve the business differentiation are –
- Effective market research and analysis must be done so that an idea about the existing food business can be drawn, this will help in designing a model that is different from other but based on the taste and preferences of the customers.
- While applying the research model, it must be seen that marketing should be done on grounds of quality products at affordable prices and the multiple services that the NAR is offering must be highlighted. This will help the business in differentiating from the competition that exists and also the customers will be able to well identify with the business(Werner, 2017).
- Business differentiation is also done on the grounds on how well the business is able to build the initial first impression on the people to whom the services are catered. Hence care must be taken to ensure that initial discounts and other opening day programs must be done to attract in as much crowd as possible. All this is a part of the marketing strategy to promote the business among the target audience.
There are several reasons why the customers will choose our restaurants over other restaurants that are operating in the region-
- Variety of food products and services are being offered under the same roof. Apart from eating out, the customers can also enjoy light games and other fun activities that will improve their eating out experience for the people. This is something that many restaurants don’t offer along with the dine-in facilities.
- The location of the NAR also plays a very important role in attracting the crowd, as it is centrally based in the country of Rwanda, where there are many local colleges and IT companies that will attract in more youths. Thus the restaurant that is in the closest proximity will have the highest footfall of the customers and this will make the restaurant a better choice in comparison to its peers.
- The fact that the NAR is having something for people of all age groups makes it feasible for other families and youth to come in groups and enjoy the food and the fun activities. The other restaurants that are operating in the area offer only one kind of service and also there are many fast food kiosks rather than good dine out places. Thus that also affects the choice of the customers and makes the restaurant a better choice in comparison to its peers. But the restaurant needs to market the services accordingly without affecting the sentiments of any age group(Zhao, 2017).
- Fast food restaurants also provide good food items at affordable prices, but one point to be considered is that they have issues with maintaining the quality and also there is zero ambiences that is present in respect of such outlets. Thus people will prefer such a restaurant that will offer them quality products at same or a bit higher prices.
- Not all restaurants offer alcohol in the region, and since it is a youth-centric restaurant having alcohol served is very important. Thus this also makes the restaurant a go-to choice for the drinks and the variety that they offer. The fun activities like games and other stuff that the business is offering make the restaurant different from its competitors. They can eat and enjoy in groups and is suitable for any kind of celebrations and parties for the people coming in large groups.
The main marketing strategy of the business will include to promote the restaurant as one that will satisfy the needs of both the youths and the families and is based on the concept of having great eating out experience with some fun activities.
Industry and Market Analysis
The target marketing customer will consist of the youth, as the restaurant is focused on them. The marketing strategy will be inclusive of giving promotions and discounts in the initial days. Social media can be used to promote the restaurant as most of the young people are active there nowadays. The business can also take help from experts that can help them in promoting the business and developing an effective marketing strategy for the people (Visinescu, et al., 2017). The marketing will be designed on the concept of multiple services under one roof at the most affordable prices that is possible. This is how the flow of information among the people must be there. The company can also list the restaurant on food delivering apps and restaurant finder that will help in increasing the overall visibility of the business and help in attracting more customers in the times to come (Tian & Slocum, 2016).
The placement distribution system in case of restaurants consists of getting raw materials in bulk from supplier’s at most minimum prices possible. This can happen only when proper market research and analysis is done, that will help in identification of the supplier that will offer the raw material at the cheapest prices possible. In the initial month in the start, fewer products must be prepared and depending on the footfall and the response of the people the same can be improved. This will help in avoiding any kind of wastage (Mayntz, 2017). Staff and chefs must be properly trained in their job and proper directions must be given to them. The management of the company should form such rules and regulations that will help in maintaining the follow in the distribution system.
The weekly sales have been forecasted to be of $12500 and an annual sale of $650000. This is for the first year. As the popularity of the business will increase the sales figure in the second year will increase and there can be an escalation of 10-20 percent. This will bring the total sales figures to be around $1000000. But this entirely depends on the response of the public that will affect the overall revenue.
The business operations model will include first laying out the initial plan on the blue draft and on the basis of the same the proceeding activities can be determined. Initial market research and analysis must be done to get an idea of the market and initially the project will be bootstrapped by us, but as expansion will be needed, venture capitalist can be approached for funds. The initial business model does not include any money from outsiders and everything will be boot strapped in-house.
Pestle Analysis
The building and the property is of an old eatery and that will be revamped again for NAR. The equipments that are required will be taken on lease initially and later can be purchased. In food business the technology has no bigger role to play and most of the work depends on the chef and the staffs. The hospitality business works in that manner (Gartland, 2017).
The process will be inclusive of getting the raw material from the supplier, the chef will be prepare the products depending on the menu and the demand and same will be served in the restaurants. Care must be taken to ensure that there is no wastage of food and also online delivery of products can be done to increase the sales of the products. The company also needs warehouse facilities to store the raw materials for the products, and human resource plays the most important role in case of hospitality business, so care must be taken to ensure that well trained chefs and staffs are appointed. This is very important for the hospitality business (Bergh, et al., 2017).
The management of the company will be in the hands of the five partners initially and we will be responsible for the all the decisions that is taken to ensure effective flow of business. Later as the business will expand, other trained professionals can be appointed to look after the operations (Rodriguez & Kaczmarek, 2016).
The organizational structure will by dynamic in nature and over the time period many changes will take place accordingly. The internal employees will consist of the staff and the chefs and the accountants and other advisors. The external employees will consist of marketing and promotion agents, and other stakeholders.
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